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| Bigger loads: Cargo ships like this one are carrying a rising number of US products to other countries, thanks in part to
the fall in the value of the dollar. Mark Lennihan/AP/file |
Surge in exports buoys U.S. economy
Biggest export last year? Nuclear reactors. Sales of boats and harvesters surge, too.
from the October 17, 2007 edition
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A US access ramp fit for a queen
Another North Dakota company, DT&J Inc., has been quick to react to legal changes in Europe that now mandate wheelchair access to buildings. It proudly notes that its product, called Roll-A-Ramp, is now used at Buckingham Palace and Oxford University.
Exports – now to 19 countries – have allowed the company to expand its employment in three years from four people to 12. "Our domestic production pays for our fixed costs and our exports are our profits," says Tom Kenville, president of the company.
The declining value of the dollar is attracting foreign companies that now see the US as a manufacturing and reexport base. Jim Dillon, president of Passport Marine in St. Petersburg, Fla., is now negotiating with two Italian boat and yacht manufacturers to move their manufacturing to the US.
"They will send component parts, plus the boat molds, and produce [in the US] a quality product that is exported to take advantage of the exchange rate," says Mr. Dillon, who's also exploring exporting Passport's own craft to Dubai and Japan.
The export surge is not completely tied to the exchange rate. The Houston Airport System decided five years ago to increase its facilities for moving airfreight. Now, instead of loading planes on the taxiways, it has parking space for 20 jumbo jets to load and unload goods.
The new facilities have attracted new air freighters, such as AirBridge Cargo, the first Russian all-cargo airline. The airfreight companies are hauling oil-field equipment to Saudi Arabia, computers to Britain, and medical equipment to France. So far this year, freight airlines in Houston have boosted exports 24.6 percent.
As the airfreight business has grown, companies have built some 3 million square feet of warehouse space around the airport.
"We definitely have an employment surge around the airport," says Rick Vacar, director of aviation for the Houston Airport System.
The export surge is causing some problems as well. Back in North Dakota, Dahl says his company is experiencing some wage inflation as it competes to keep its employees.
"Wages are up at a pretty rapid rate," he says. "In fact, we're investing in more capital goods because of a scarcity of employees."
North Dakota isn’t the only place where labor is becoming more expensive. It’s true in China, which also grows sugar beets. So, this year, Dahl exported a harvesting machine to China. “I hope there will be more [sales] asthey move to mechanical harvesting,” he says.
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