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Economic Competitiveness:Comparing San Francisco Bay Area Exports and
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OverviewData Source and DefinitionI. The San Francisco Bay Area Customs District
- Exports
- Major International Destination of Goods and Services
- Detailed Data on High Technology Exporting Industries
- Export Facilities of the Twenty-First Century
- Imports
- Major International Origins of Goods and Services Imported into the Bay Area Customs District
- Detailed Data on High Technology Imports into Bay Area Customs District
II. Analysis of Competing Customs Districts in the United States
- Exports
- Major International Destinations of Goods and Services of Competing Regions
III. SummaryIV. Appendix of Detailed Export and Import Data
- Export Information for California Ports
- Import Information for California Ports
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OverviewThis study focuses on import and export data through the San Francisco Bay Area Customs District. To provide some light on the structure of the exports and imports flowing through this area, a comparative analysis was undertaken with similar flows through the Customs Districts of Houston, Los Angeles, New York, San Diego and Seattle. Data for these areas was examined by 2-digit SIC classification. Further disaggregation, down to 4-digit SIC classification, was examined for the customs districts within California. This analysis provides greater information on the economic structure of the top exporting and importing items flowing through the customs districts. Finally the top ten trading international partners of each of the districts are identified, along with the their value of merchandise transactions.
Data for the years 1989-1993 was examined. Data for this study was obtained from the CD-ROM on U.S. Exports and Imports of Merchandise by the U.S. Department of Commerce, Bureau of the Census, issued April 1994. This file has a wealth of information and this study only touches the surface of this data. The San Francisco Customs District includes all ports and airports in the Bay Area, as well as Monterey, Sacramento, Fresno and Reno. Data for exports reflects what is defined as "domestic exports," i.e. exports produced or manufactured in the United States. Total exports include "foreign exports" which is defined as "merchandise that entered the United States and is re-exported in the same condition as when imported." Data for imports consists of two definitions: (1) Customs import value and (2) imports for consumption. Customs import value is generally defined as the price actually paid for merchandise when sold for exportation to the U.S., excluding import duties, freight, insurance and other charges. Imports for consumption are a combination of entries for immediate consumption, withdrawals from warehouses, and entries of merchandise into U.S. territory from U.S. Foreign Trade Zones.
I. The San Francisco Bay Area Customs District
A. EXPORTS
The value of domestic exports through the San Francisco Bay Area Customs District grew from $19.9 billion in 1989 to $ 27.3 billion in 1993 or by 37.1 percent. Domestic exports from California increased from $59.5 billion in 1989 to $76.2 billion in 1993 or 28.1 percent. Similar exports from the United States during this period increased from $349 billion in 1989 to $439 billion in 1993 or a 25.8 percent increase. Table 1 ranks value of exports the top five exported items from the Bay Area customs district, California and the United States.
The table illustrates the importance of high technology to the overall profile of exports from the United States, California and the Bay Area. Although data is for customs districts, one can reasonably infer that the majority of technology exports from the Bay Area customs district are produced within this area.
Table 1
Top Five Domestic Exports
by Value of Exports, 1993
1. Electronic Equip: $7.4 Electronic Equip: $16.0 Transportation Equip: $80.4 2. Computers & Assoc. Equipment: 6.0 Computers & Assoc. Equipment: 15.2 Computers & Assoc. Equipment: $72.2 3. Food: 3.3 Transportation Equip.: 9.1 Electronic Equipment: 53.2 4. Transportation Equip.: 2.1 Instruments: 6.7 Chemicals: 42.8 5. Instruments: 2.1 Food: 6.6 Instruments: 30.0 The top five export industries in the Bay Area customs district represented 78 percent of total domestic exports through this area in 1993. The top five exports through the Bay Area customs district represented 39 percent of all California exports in these categories in 1993. Whereas, total domestic exports through the Bay Area customs district from California was 36 percent in 1993, again indicating the export concentration of goods through this area.
1. Major International Destination of Goods and Services
Who are the major international trading partners with industries that export goods and services through the Bay Area customs district and California? Has the rank of importance (value of exports to these areas) changed over recent time? Table 2 shows the top ten international designations of both Bay Area customs district exports and California exports for 1993. For both California and the Bay Area, the top destination is Japan, followed by the Republic of China (Taiwan).
Table 2
Top Ten International Designation
and Value of Exports, 1993
From Bay Area Customs District From California Ports (Billions$) (Billions$) 1. Japan $8.4 Japan $18.6 2. Taiwan (ROC) 3.0 Taiwan (ROC) 7.5 3. Singapore 2.5 Korea (ROK) 6.3 4 Korea (ROK) 1.9 Singapore 5.9 5. Hong Kong 1.9 Mexico 5.1 6. Germany 1.4 Hong Kong 5.0 7. United Kingdom 1.3 Australia 4.1 8. Malaysia 1.2 United Kingdom 3.3 9. France .6 Germany 3.1 10. Australia .4 Malaysia 2.7 Because the Bay Area customs district is a subset of California, one can readily calculate the share of California exports through the Bay Area customs district in 1993. More than 45 percent of exports to Japan came through the Bay Area district, and 40 percent of California exports to Taiwan flow through the Bay Area district. Singapore ranks third as a trading partner in the Bay Area customs district. One can hypothesize that this relationship is very much skewed toward technology exports to this international destination which in turn is used to produce other technology products for re-export from Singapore. Although not part of this paper, the data source does permit a listing by very detailed 4-digit SIC (Standard Industrial Classification) of exports and imports by area of destination and origin. This would permit a detailed analysis of the very specific types of goods and services going through a customs district or the state.
2. Detailed Data on High Technology Exporting Industries
Up to this point, data has been presented identifying the top international importing countries through the Bay Area customs district and the top industry sectors exporting through this area. The data base provided by the U.S. Department of Commerce, however, provides substantial detail on the specific industry exporting through this area by 4-digit SIC. This classification identifies establishments by specific production activity, such as the production of computers, as opposed to computer storage devices, etc. Information in this format provides considerable insight into the structure of exporting industries and their relative contribution. Why is this information important? It is important for two reasons: (a) the data identifies the relative concentration of value of total imports, and (b) it help identify whether the share is coming from a fast, moderate, slow or declining industry.
If the imports are concentrated in a select number of sectors, it both identifies the comparative advantage and weakness of exporting sectors. What if the sector which leads exports is in a rapid state of economic decentralization? Or what may be the relative change in the share, for example, of the top ten exporting sectors over time? This information is critical to analyzing clusters of economic activity, vis-à-vis exports. Table 3 identifies the top ten exporting industries by 4-digit SIC by value of exports for 1993. This table shows that nearly 40 percent of exports through the Bay Area customs district was in these items. Of this number, 68 percent of the total value of exports was dominated by electronic parts and computers, showing a high concentration. From a market analysis perspective, an interesting question to ask would be: " What was the relative change in share or percentage growth over some historical period?" This is an important question, again, to ask to ascertain the comparative economic advantages of an area vis-à-vis changes in technology demand. Table 4 presents a snap-shot of this change for the period 1989 to 1993 for the Bay Area customs district.
Table 3Top Ten Technology Industries
Exporting Goods and Services: 1993San Francisco Bay Area Customs District (in Billions Dollars)
Sic Name Value 3674 Semiconductors and Related Devices $4,325 3571 Electronic Computers 3,055 3559 Special Industry Machinery (n.e.c) 686 3652 Prerecorded Records and Tapes 590 3572 Computer Storage Devices 579 3661 Telephone and Telegraph Apparatus 574 382 Instruments to Measure Electricity 547 3695 Magnetic and Optical Recording Media 542 3577 Computer Peripheral Equip. (n.e.c) 291 3826 Analytical Instruments 276
Total
10,891
Although semiconductors and computers continue to dominate the export market in terms of value of shipment through the Bay Area customs district, other technology sectors experienced a more rapid increase in exports.Table 4
The top two sectors in export growth reflect the rapid increase in demand for communication equipment and growth in multi-media activity. Prerecorded records and tapes are reflective of such commercial items as CD-ROM. Interestingly, increased demand in these sectors stimulates growth in computer programming and semi-conductors. Demand for communication equipment increases demand for semi-conductors and computer chips through specialized functions of this equipment.Export Growth through the San Francisco Bay Area Customs District for Top Ten Technology Sectors Between 1989 and 1993
Sector Percent Growth Telephone and Telegraph Apparatus 318.9% Prerecorded Records and Tapes 249.1 Analytical Instrument 95.7 Special Industry Machinery, (n.e.c.) 69.8 Magnetic and Optical Recording Media 49.7 Computer Storage Devices 44.4 Semiconductors 41.1 Electronic Computers 11.6 Instruments to Measure Electricity - 4.7 Computer Peripheral Equip., (n.e.c. ) - 1.0 Computer programming demand increases with the rise in demand for CD-ROM's through multi-media applications that require programming. All of the above suggest a synergy of economic activities.
3. Export Facilities of the Twenty-First Century
A review of the export items flowing through the Bay Area customs district reveals some intererting facts about the nature of future export facilities. In 1993, approximately $27.3 billion of goods and services passed through the Bay Area customs district. Of this total $15.5 billion or 56.8 percent came from high technology types of activities. In short, the major of shipments were in the high technology areas. What type of transport was used? Data available to ABAG for this study doesn't reveal the type of transport, but one could argue that, intuitively, most high technology exports do not take sea transport; rather, they take air transportation. Demand for semi-conductors or computers generally is timely, requiring days for shipping, rather than weeks. So increasingly, Bay Area airports are becoming the focal points for international trade, in terms of value of shipping. Looking into the future, one could argue, with some convincing logic, that demand for these transport facilities will increase in parallel with the demand for high technology goods and services.
From a planning perspective, it is essential that airports increasingly be viewed as centers of commercial export and import trade, and not simply centers of passenger traffic. Facilities, like the Oakland International Airport, which have excellent rail and truck connection may be underutilized in this area. San Jose International Airport undoubtedly plays a key role in this process. San Francisco International, the premier Bay Area airport, probably will and should play a lesser role in this future growth, focusing more on passenger and ancilliary services.
Does the above suggest that seaports will play a less significant role in the future? The answer is no. What is essential is the recognition that future planning for international competition must contain to factors: (a) planning must include airports, seaports and rail and truck transport facilities in a coordinated fashion, and (b) agencies doing this planning should be regional, with authority to coordinate planning activities of the administrative units that manage each transportation facility. This planning should encourage competition and cooperation. The Bay Area, according to the American Association of Port Authorities, is not in the top twenty American container ports in the United States. What role will seaports play in the Twenty-First century? Seaports, although still significiant, increasingly are viewed as facilities that ship bulk items, with longer demand horizons and slower growth curve.
Linking both airports, seaports and ground transportation facilities together as commercial centers of transports will create a economic synergy for each facility which will strengthen them and most important, underpin Bay Area competitiveness in a integrating world economy.
Imports are defined as "imports for consumption." According to the Bureau of the Census, this is defined as "a combination of entries for immediate consumption, withdrawals from warehouses for consumption and entries of merchandise into U.S. Customs territory from U.S. Foreign Trade Zones." An analysis of imports into the San Francisco Bay Area Customs District is important because of several reasons: (a) to know the total value of imports into the district, (b) to determine the top trading partners with the customs district, (c) to assess the top items being imported into the district, and (d) finally, to identify and rank the growth of imports.
The total value of imports for consumption into the Bay Area customs district was $37.9 billion in 1993. Total value of imports was $38 billion during the same period. Imports for consumption through the Bay Area customs district increased 42.6 percent between 1989 and 1993, outstripping exports which increased by 37.1 percent during the same period. Nearly 76 percent of the imports were in high technology items. Table 5 identifies the top five import items into the Bay Area customs district.
Table 5
Five Import Top Industries into
the Bay Area Customs District, 1993
Sector Value of Shipment
in Billions $Computers & Assoc. Equip. $14.5 Electronic Equipment 11.5 Transportation Equipment 3.8 Instruments 2.6 Food 1.0 Table 5 illustrates the disparity between technology exports and imports from and to international destinations. While imports of computers and associated machinery was $14.5 billion in 1993, exports were $6 billion in the same year. Obviously the $6 billion number is an underestimate of total Bay Area exports from this industry sector because it does not contain exports to the rest of the U.S., however, it points to the competitiveness of international rivals in this critical industry. While Bay Area customs district exports increased by about 15 percent between 1989 and 1993, imports into the Bay Area customs district of computers and associated machinery increased by 82.9 percent.
Electronic equipment, still showing strength in the export market, increased by 56.2 percent between 1989 and 1993 from the Bay Area customs district, while imports increased by 39.6 percent. However, the total value of electronic equipment imports exceeded exports by a substantial number. Imports were valued at $11.5 billion; whereas, exports were valued at $7.4 billion in 1993. Relative parity existed between the growth of instruments imports and exports during the period 1989 to 1993, with exports accounting for $2.1 billion and imports accounting for $2.6 billion in 1993.
1. Major International Origins of Goods and Services Imported into the Bay Area Customs District
Japan, by far, is the major trading partner with the Bay Area customs district. In 1993, Japan exported to the Bay Area customs district $15.9 billion of goods and services. Recall that in the same period, exports from the Bay Area customs district to Japan was $8.5 billion. Japanese exports to the district increased by 35.7 percent between 1989 and 1993.
It is noteworthy that, although the aggregate value of exports from Japan far exceeded Bay Area customs district exports to Japan, the growth in exports to Japan from this customs district exceeded imports from Japan. Between 1989 to 1993, exports to Japan increase by 39.7 percent. Who are the top exporting partners to the Bay Area customs district? Table 6 identifies these partners for the Bay Area customs district and California.
Table 6
Top Ten Exporting Nations
by Rank and Value of Shipment, 1993
To Bay Area Customs District To California Ports (Billions$) (Billions$) 1. Japan $15.9 Japan $44.0 2. Singapore 3.9 China (PR) 12.3 3. Korea (ROK) 3.2 Taiwan (ROC) 11.4 4 Taiwan (ROC) 3.1 Singapore 8.2 5. Malaysia 1.9 Korea (ROK) 8.1 6. China (PR) 1.4 Malaysia 6.4 7. Thailand 1.3 Mexico 5.5 8. Germany .9 Thailand 4.2 9. Philippines .8 Hong Kong 3.2 10. Hong Kong .7 Germany 2.9
For the Bay Area customs district, the top four exporting nations have remained the same for the period 1989 to 1993. Hong Kong was the fifth exporting partner in 1989, being replaced by Malaysia in 1991. Although California ports have strong ties with Mexico, the Bay Area customs district shows that Mexico is not a major importer or exporter to this area.
Even for California ports, Mexico ranks seventh in importance. Mexican import and export markets may grow in the future, but for the foreseeable future, California is very much tied to Asia for international trade.
2. Detailed Data on High Technology Imports into the Bay Area Customs District
What are the top ten importing items into the Bay Area customs district? Curiously enough, the pattern found in Table 3 is also found in the type of items imported into this customs district. Table 7 shows the top ten technology industries importing goods and services into the Bay Area customs district. Data provided by the Census Bureau would have permitted an analysis of broader categories. However, since technology imports make up the bulk of imports by value, focus on just these sectors seems a reasonable approach. A quick review shows that the vast majority of import items, by shipment value, are concentrated in semiconductors and computers. Looking at Table 3, one sees that the Bay Area customs district exported semiconductors and computers worth about $7.3 billion. Imports, however, of these two categories were over $15 billion or more than twice exports to international destinations.
One might hypothesize that some of the imports reflect increased value-added added to technology exports from the Bay Area customs district. For example, Singapore is a major trading partner of the Bay Area customs district. Much of the technology exports to this international designation are re-integrated in products which increases value-added, and exported from Singapore. This is just a microcosm of the growing integratedness of the world economy.
Table 7
Table 7 tells us the industries that are dominating the import market. These items also illustrate the fierce international competition occurring in the fields of computers and semiconductors.Top Ten Technology Industries
Importing Goods and Services, 1993
San Francisco Bay Area Customs District,
(in Billions Dollars)
3674 Semiconductors and Related Devices $8.6 3571 Electronic Computers 6.6 3572 Computer Storage Device 3.9 3572 Computer Peripheral Equip. (n.e.c) 3.1 3944 Games, toys and children's vehicles .7 3679 Electronic Components (n.e.c.) .6 3661 Telephone and Telegraph Apparatus .6 3845 Electromedical equipment .5 3645 Magnetic and optical recording media .4 3651 Household audio and video equipment .3
Just as important, however, is the know those industries that have experience the greatest growth in penetrating the Bay Area customs district market. Table 8 gives us a picture of the degree of penetration from 1989 to 1993.
Table 8
Video games, from international origins, were the fastest growing technology imports between 1989 and 1993 into the Bay Area customs district. Magnetic and optical recording media, the second fastest growing technology import, probably covers categories such as disk drives and CD-ROM's. The first category was probably driven by consumer demand, but the second category may be a more interesting example of integrating world supply markets. Recall that in Table 4, the second fastest growth in the Bay Area customs district export market was Prerecorded Records and Tapes. Much of this export product comes from the "multi-media industry." Inputs into this production is likely CD-ROMS. It is likely that the cheapest supply source is an overseas market. As the demand for the output of "multi-media" products increases it is likely to stimulate demand on the input side of the equation. Since markets are increasingly defused, local demand for input stimulates output in a supply in a foreign market, illustrating market integration beyond national boundaries.Comparative Growth of Top Ten Technology Import Items
into the San Francisco Bay Customs District
between 1989-1993
Sector Percent Growth Games, Toys and Children's Vehicle 211.5% Magnetic and Optimal Recording Media 185.0 Electromedical Equipment 166.5 Electronic Component (n.e.c) 161.1 Electronic Computers 133.2 Computer Peripheral Equipment (n.e.c) 84.8 Household Audio and Video Equipment 53.4 Computer Storage Devices 50.4 Semiconductors and Related Devices 49.5 Telephone and Telegraph Apparatus -40.1 A market which California and Bay Area industries still dominate is in the area of communications equipment. Again turning to Table 4, one see that in exports from the Bay Area customs district of telephone and telegraph apparatus grew by 318.9 percent between 1989 and 1993. Whereas, Table 8 shows that this market for international importers virtually dried up in this customs district, with imports falling by over 40 percent. Once again, the purpose of this discussion is to try to throw light on the changing mix of demand and supply among international competitors. The analysis does suggest the relative instability of market demand and shifts in demand among products.
II. Analysis of Competing Customs Districts in the United States
Up to this point, discussion has focused on the export and import structure of the San Francisco Bay Area Customs District. Industry flows have been identified, along with major international destination and origin markets. However, just as important are questions about the export and import structure of major competing regions in the United States. Four regions were chosen to analyze: (a) Houston Customs District, (b) Los Angeles Customs District, (c) Greater New York Customs District, and (d) Seattle Customs District. For the Bay Area, Los Angles and Seattle are major competitors on the west coast. Houston is part of a increasingly competitive area, and New York is the focal point for much of east coast trade. In dealing with all these customs districts, goods and services flowing through these districts reflect outputs of industries beyond the boundaries of the customs district. However, the data does give insight into the comparative advantage, in terms of value of shipment and type of shipment, of each region being investigated.
In the previous section, value of exports were measured in terms of the definition "domestic exports." In this section, exports are defined as "total value exports." This includes both domestic and merchandise that has entered the United States and is being re-exported in the same condition as when imported.
The Bay Area customs district between 1989 and 1993 outperformed its
major competitors in terms of value of shipments to international destinations. Table 9 shows total value of exports in 1993 and the percent growth during the period 1989 to 1993.
Table 9
Value of Total Shipments in 1993
from Customs Districts to International Destinations
and Percent Increase between 1989 and 1993
Total Exports in (Billion $) Percent Change San Francisco Bay $29.4 37.1 % Los Angeles 48.3 25.1 Houston 17.5 10.4 New York 38.4 23.3 Seattle 14.3 5.3 Table 9 tells us that the Bay Area customs district ranked third in total value of exports in 1993, in comparison to its competitors. However, its growth rate between 1989 and 1993 was highest among its competitors.
What comparative advantage did the Bay Area customs district have over its competitors that would have provided such stellar growth over this period of time? The primary explanation rests in the share of high technology (computers and associated machinery (SIC 35), electronic and electrical equipment (SIC 36) and instruments (SIC 38) exports as a percentage of total exports. Table 10 presents two information bits that explains the reason for the faster growth in the Bay Area customs district. facts. The first column shows the share of high technology products to total exports, and the second column shows the percentage of growth of high technology exports through the other customs districts. The table shows that the primary reason for the faster growth is because of the concentration of high technology products flowing to international destinations through the Bay Area customs district. The same is true for the Los Angeles customs district; 48 percent of the exports through the Los Angeles district was in high technology exports. The fastest growth occurred in the Houston district. Although overall exports in the Houston district only increased by 5 .7 percent between 1989 to 1993, high technology growth boomed. This suggests that other sectors may have been declining. Between 1989 and 1993, agricultural exports through the Houston district fell by 32.9 percent. Chemicals, a major export items in the Houston district, fell by 3.2 percent over this period. The high growth percentages of high technology exports will eventually increase the overall growth rate of these competitors. The east coast market (New York) grew at a slow rate vis-à-vis its competitors, partly as a result of a 41 percent drop in instrument exports from east coast locations.
Table 10
Concentration and Growth
1989-1993 of High Technology Exports to International Destinations Expressed as Percentages
Percentage of
Total Exports
(1993)Growth of High
Technology Exports
(1989-1993)San Francisco Bay 59.3 % 35.9 % Los Angeles 48.8 39.2 Houston 32.6 47.0 New York 43.1 5.7 Seattle 25.9 42.6 Therefore, Table 10 explains why the Bay Area customs district did so well, but also suggests that competition is fierce in the export market with competitors likely to gain on their share overtime.
1. Major International Destinations of Goods and Services of Competing Regions
An important question in doing a comparative analysis of competing regions in the United States is to examine the top international destinations of goods and service flows through each customs district. Table 11 provides such information for the year 1993.
Table 11
Top Ten International Destinations of Exports from Customs Districts
Competing with the Bay Area Customs District, 1993
Houston/Gal. Los Angeles New York Seattle 1. Mexico 1. Japan 1. U. K 1. Japan 2. Netherlands 2. Taiwan 2. Switzerland 2. Canada 3. Belgium 3. Korea (ROK) 3. Japan 3. Korea (ROK) 4. U. K. 4. Australia 4. Germany 4. Taiwan 5. Taiwan 5. Singapore 5. France 5. Hong Kong 6. Venezuela 6. Hong Kong 6. Netherlands 6. China 7. Japan 7. UK 7. Italy 7. Singapore 8. China 8. Germany 8. Korea (ROK) 8. Germany 9. Germany 9. Netherlands 9. Belgium 9. UK 10. Russia 10. France 10. Hong Kong 10. Australia Comparing Table 2 with this table shows that for west coast customs districts, Japan is the leading partner that purchases goods through these facilities. For California, Taiwan (ROC) is the number two trading partner. Korea is the third most import trading partner for both Los Angeles and Seattle. For the Bay Area customs district, however, Singapore is the third most important importer of goods and services. Houston/Galveston customs district, because its Gulf Coast location, has more diversity in trading relationships that either east or west coast locations. For example, seven of the top ten importers from the Bay Area customs district are Asian or Southeast Asian counties; for New York, seven are European locations. For Houston/Galveston customs district, five export destinations are European, two are Latin American and three are Asian. Tables 12 and 13 provide detailed breakdowns of the top exports from SIC 35 (Industrial and Commercial Machinery and Computer Equipment), SIC 36 (Electronic and Other Electrical Equipment and Components, Except Computer Equipment), SIC 38 (Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods, and SIC 39 (Miscellaneous Manufacturing Industries) from the customs districts of Houston/Galveston, Los Angeles, New York, San Francisco and Seattle for 1993. The purpose of these tables is to understand the structure and value of exports from these districts.
Table 12
Top Ten Technology Related Exports for
Selected West Coast Customs Districts, 1993
Value of Export in Billion ($)
Los Angeles San Francisco Seattle SIC Name Value SIC Name Value SIC Name Value 3574 Semiconductors $3.1 3674 Semiconductors $4.3 3571 Electronic Computers $0.7 3571 Electronic Computers 2.9 3571 Electronic Computers 3.1 3585 Refrig. & Heating Equip. 0.3 3663 Radio & TV Comm. Equip. 0.7 3559 Special Industry Mach. (n.e.c) 0.7 3531 Construction Machinery 0.3 3825 Instrument to Measure Electr. 0.5 3652 Prerecorded Records & Tapes 0.6 365 Prerecorded Records & Tapes 0.2 3652 Prerecorded Records & Tapes 0.5 3572 Computer Storage Devices 0.6 3519 Internal Combust. Eng. (n.e.c) 0.2 3661 Telephone & Telegraph App. 0.5 3661 Telephone & Telegraph App. 0.6 3577 Computer Periph. Equip. (n.e.c) 0.2 559 Special Industry Mach. (n.e.c) 0.5 3695 Magnetic and Optical Media 0.5 3621 Motors and Generators 0.1 3549 Sport & Athlet. Goods (n.e.c) 0.5 3577 Computer Periph. Equip. (n.e.c) 0.3 3651 Audio & Video Equipment < .1 3572 Computer Storage Devices 0.4 3826 Analytical Equipment 0.3 3661 Telephone & Telegraph App. <. 1 Table 13
Top Ten Technology Related Exports for
Selected East and Gulf Coast Customs Districts
Value of Export in Billion ($)
Houston/Gal. New York Sic Name Value Sic Name Value 3533 Oil and Gas Field Machinery $2.5 3571 Electronic Computers $3.3 3571 Electronic Computers 0.4 3661 Telephone and Telegraph App. 0.8 3511 Turbines and Turbine Gener. 0.4 3577 Computer Periph. Equip. (n.e.c.) 0.8 3541 Construction Machinery 0.3 3861 Photographic Equip. & Supplies 0.6 3561 Pumps and Pumping Equip. 0.2 3569 General Industry Machinery 0.6 3532 Mining Machinery 0.2 3511 Turbines & Turbine Generators 0.6 3569 General Industry Mach. (n.e.c) 0.1 3663 Radio & Communication Equip. 0.6 3585 Refrig. & Heating Equip. 0.1 3572 Computer Storage Devices 0.5 3563 Air and Gas Compressors 0.1 3652 Prerecorded Records and Tapes 0.5 3523 Farm Machinery & Equip. 0.1 3559 Special Industry Machinery (n.e.c) 0.5 What do Tables 12 and 13 tell us? If we sum the top ten technology products exported through the five customs districts and divide the total by total exports found in table 9, one sees that the Bay Area customs district has the highest concentration of high technology exports among its competitors. In 1993, 39 percent of total exports of the Bay Area customs district were from the top ten items found in Table 12. The Los Angeles customs district percentage was 21 percent; the closest to the Bay Area was the Houston/Galveston district which was 25.1 percent and the majority of that percentage was in oil and gas field machinery.
What can one conclude from the comparisons presented above? First, as noted above, the Bay Area customs district has the highest concentration of high technology exports to total exports vis-à-vis its major competitors. Second, the Bay Area customs district stellar growth in exports between 1989 and 1993 came almost exclusively from the concentration and growth of high technology demand in international destinations. Finally, high technology exports cover a broad range of products, but semiconductors and computers still are the leaders in export value from the Bay Area customs district.
Export growth from the Bay Area customs district outperformed those of its major competitors over the period 1989-1993. Top international trading partners during this period were: Japan, Taiwan (ROC), Singapore and Korea (ROK). The Bay Area customs district advantages clearly come from the concentration of high technology exports as a percentage of total exports. The structure of high technology exports from the Bay Area customs district has been changing over this period with the most rapid growth occurring in telecommunication equipment.
What can go wrong? Exports from the San Francisco Bay Area Customs District in high technology reflect the existing comparative advantage of this area in technology production. This comparative advantage could be weakened in the future both from domestic and international competition. For example, Table 10 tells us that growth in high technology exports by major domestic competitors is increasing at a faster rate than in the Bay Area customs district. This would make economic sense, partly because spatial concentration of these industries are not necessary. However, the greatest and most serious competition is not within the domestic market scene. Table 5 shows quite clearly that the greatest competition is occurring in the international market. The total imports of computers and electronic equipment into the Bay Area customs district was almost equal to total California exports of these items. It is obvious that these high value added items are the focus of intense international competition. Since Bay Area exports are so concentrated in these items, any loss of competitive advantage by firms exporting from this customs district (Bay Area) could have serious long-term consequences for the economies of the areas being supported by these industries.
APPENDIX OF DETAILED EXPORT AND IMPORT DATA EXPORT INFORMATION FOR CALIFORNIA PORTS
Table 1
Value of Exports in Millions of Dollars, Origination District San Francisco
Sector
1989
1990
1991
1992
1993
Agri,For,Fish
851
997
844
963
883
Mining
303
281
143
138
54
Food
2,128
2,164
2,522
3,146
3,294
Textiles
87
81
97
125
138
Paper&Wood&Fur
552
545
544
490
444
Printing
96
106
136
121
126
Chemicals
1,046
1,014
1,315
1,343
1,680
Oil & Coal
691
855
796
870
837
Rubber
162
187
245
308
272
Glass
81
98
117
141
137
Primary Metals
495
441
406
984
701
Metal Fabri
285
331
341
431
604
Compu & Machin
5,966
6,277
6,416
6,460
6,951
Elec Equipmnt
5,295
6,032
6,188
7,031
8,272
Transp Equip
1,252
1,439
1,341
2,060
2,241
Instruments
1,554
1,634
1,800
1,940
2,196
Used And Scrap
422
428
355
327
302
Not Classified
175
205
287
311
206
Total
21,441
23,117
23,893
27,188
29,392
Source: U.S. Exports History: Historical Summary 1989-1993 on CD-ROM
Prepared by the Bureau of the Census, Issued July 1994
Table 2
Value of Exports in Millions of Dollars, Total for California Ports
Sector
1989
1990
1991
1992
1993
Agri,For,Fish
2,858
3,276
3,040
3,142
2,644
Mining
796
716
561
521
409
Food
5,218
5,445
5,969
6,626
6,628
Textiles
584
693
910
1,118
1,352
Paper&Wood&Fur
1,378
1,459
1,529
1,574
1,569
Printing
324
345
408
433
471
Chemicals
4,676
4,952
5,660
5,747
6,484
Oil & Coal
1,403
1,535
1,654
1,651
1,576
Rubber
1,068
1,226
1,372
1,559
1,561
Glass
341
414
465
521
569
Primary Metals
1,702
1,781
2,132
2,649
2,251
Metal Fabri
1,444
1,649
1,579
1,749
1,924
Compu & Machin
13,860
14,461
15,105
15,732
16,951
Elec Equipmnt
11,792
13,300
14,104
16,163
19,095
Transp Equip
7,376
8,521
10,490
13,042
9,461
Instruments
5,401
5,729
6,188
6,670
7,014
Used And Scrap
1,899
2,094
1,631
1,135
1,125
Not Classified
928
954
1,063
1,106
1,091
Total
63,049
68,552
73,860
81,139
82,174
Source: U.S. Exports History: Historical Summary 1989-1993 on CD-ROM
Prepared by the Bureau of the Census, Issued July 1994
Table 3
Value of Exports (DOMESTIC) in Millions of Dollars, Origination District San Francisco
Sector
1989
1990
1991
1992
1993
Agri,For,Fish
847
994
839
959
877
Mining
302
281
143
138
54
Food
2,116
2,154
2,511
3,129
3,289
Textiles
84
78
94
123
135
Paper&Wood&Fur
549
543
541
488
442
Printing
85
90
115
117
124
Chemicals
1,043
1,011
1,311
1,339
1,656
Oil & Coal
690
855
796
870
837
Rubber
159
185
239
305
268
Glass
79
95
116
139
135
Primary Metals
491
436
392
967
698
Metal Fabri
275
326
320
425
597
Compu & Machin
5,283
5,460
5,567
5,609
6,051
Elec Equipmnt
4,733
5,522
5,505
6,261
7,390
Transp Equip
1,143
1,354
1,289
1,921
2,140
Instruments
1,491
1,565
1,709
1,842
2,092
Used And Scrap
402
403
329
308
284
Not Classified
170
200
281
303
255
Total
19,943
21,551
22,097
25,243
27,325
Source: U.S. Exports History: Historical Summary 1989-1993 on CD-ROM
Prepared by the Bureau of the Census, Issued July 1994Table 4
Value of Exports (DOMESTIC) in Millions of Dollars, Total For California Ports
Sector
1989
1990
1991
1992
1993
Agri,For,Fish
2,824
3,247
3,008
3,116
2,607
Mining
794
714
560
520
408
Food
5,175
5,424
5,942
6,593
6,609
Textiles
566
677
885
1,090
1,321
Paper&Wood&Fur
1,366
1,444
1,514
1,563
1,556
Printing
309
323
383
405
409
Chemicals
4,644
4,938
5,643
5,724
6,434
Oil & Coal
1,402
1,535
1,651
1,651
1,574
Rubber
1,045
1,195
1,321
1,509
1,519
Glass
330
402
456
510
560
Primary Metals
1,667
1,757
2,104
2,617
2,236
Metal Fabri
1,403
1,615
1,535
1,709
1,886
Compu & Machin
12,618
12,988
13,569
14,108
15,240
Elec Equipmnt
10,382
11,703
12,272
13,596
16,050
Transp Equip
7,069
8,167
10,225
12,629
9,112
Instruments
5,167
5,443
5,815
6,327
6,668
Used And Scrap
1,845
1,974
1,555
1,060
987
Not Classified
914
927
1,045
1,083
1,072
Total
59,522
64,474
69,482
75,812
76,249
Source: U.S. Exports History: Historical Summary 1989-1993 on CD-ROM
Prepared by the Bureau of the Census, Issued July 1994
Table 5
Value of Exports in Millions of Dollars Origination District San Diego
Sector
1989
1990
1991
1992
1993
Agri,For,Fish
101
86
74
96
86
Mining
51
64
47
22
31
Food
96
119
195
253
243
Textiles
84
94
127
144
164
Paper&Wood&Fur
292
334
380
476
469
Printing
20
23
25
29
29
Chemicals
147
156
175
210
234
Oil & Coal
18
19
24
28
25
Rubber
189
204
215
256
274
Glass
37
43
45
50
53
Primary Metals
155
181
225
301
275
Metal Fabri
228
253
241
263
267
Compu & Machin
329
387
467
491
493
Elec Equipmnt
669
825
998
1,229
1,201
Transp Equip
149
176
276
254
227
Instruments
296
267
319
383
363
Used And Scrap
29
24
28
29
23
Not Classified
119
111
55
36
46
Total
3,011
3,366
3,917
4,551
4,502
Source: U.S. Exports History: Historical Summary 1989-1993 on CD-ROM
Prepared by the Bureau of the Census, Issued July 1994Table 6
Value of Exports in Millions of Dollars Origination District Los Angeles
Sector
1989
1990
1991
1992
1993
Agri,For,Fish
1,906
2,193
2,123
2,083
1,675
Mining
441
370
371
361
324
Food
2,993
3,163
3,252
3,226
3,091
Textiles
414
518
686
849
1,050
Paper&Wood&Fur
533
579
605
609
657
Printing
208
215
247
283
316
Chemicals
3,482
3,782
4,169
4,193
4,570
Oil & Coal
694
661
833
754
714
Rubber
717
835
912
995
1,015
Glass
223
274
303
330
379
Primary Metals
1,052
1,159
1,502
1,364
1,275
Metal Fabri
931
1,065
997
1,055
1,053
Compu & Machin
7,565
7,797
8,223
8,781
9,507
Elec Equipmnt
5,828
6,443
6,918
7,903
9,622
Transp Equip
5,975
6,906
8,873
10,728
6,993
Instruments
3,551
3,828
4,069
4,347
4,455
Used And Scrap
1,448
1,642
1,248
780
800
Not Classified
635
638
720
759
785
Total
38,596
42,069
46,050
49,400
48,280
Source: U.S. Exports History: Historical Summary 1989-1993 on CD-ROM
Prepared by the Bureau of the Census, Issued July 1994
Table 7
Value of Exports (DOMESTIC) in Millions of Dollars Origination District San Diego
Sector
1989
1990
1991
1992
1993
Food
96
118
195
253
242
Textiles
84
94
124
137
154
Paper&Wood&Fur
291
333
379
474
466
Printing
20
23
23
29
29
Chemicals
146
155
174
210
230
Oil & Coal
18
19
24
28
25
Rubber
189
204
213
252
263
Glass
37
42
45
49
51
Primary Metals
145
172
217
295
272
Metal Fabri
221
248
237
259
263
Compu & Machin
303
373
454
484
482
Elec Equipmnt
638
791
952
1,155
1,118
Transp Equip
144
171
271
252
225
Instruments
285
257
302
369
330
Used And Scrap
29
24
28
29
23
Not Classified
118
111
55
35
46
Total
2,764
3,134
3,694
4,308
4,219
Source: U.S. Exports History: Historical Summary 1989-1993 on CD-ROM
Prepared by the Bureau of the Census, Issued July 1994
Table 8
Value of Exports (DOMESTIC) in Millions of Dollars Origination District Los Angeles
Sector
1989
1990
1991
1992
1993
Agri,For,Fish
1,878
2,168
2,096
2,061
1,645
Mining
441
370
370
360
323
Food
2,963
3,152
3,237
3,212
3,079
Textiles
398
505
667
830
1,032
Paper&Wood&Fur
525
568
594
600
648
Printing
204
210
244
260
256
Chemicals
3,455
3,773
4,158
4,176
4,548
Oil & Coal
694
661
831
753
713
Rubber
697
806
869
953