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CompTIA Tech Trade Snapshot 2017

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CompTIA analysis of International Trade Administration data covering the imports and exports of tech goods and services

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CompTIA Tech Trade Snapshot 2017

  1. 1. Copyright (c) 2017 CompTIA Properties, LLC, All Rights Reserved | CompTIA.org | research@comptia.org $40 $43 $39 $37 $28 $29 $33 $35 $13 $13 $14 $16 $14 $14 $14 $13 $6 $7 $7 $7 2012 2013 2014 2015 TOP 5 U.S. SECTORS FOR MFG. EXPORTS $ Billions % of Total 1. Transportation / motor vehicles $276 19% 2. Tech products $202 14% 3. Chemicals $185 13% 4. Agriculture, food & beverage $138 9% 5. Machinery $125 9% TOP 5 U.S. SECTORS FOR SERVICES EXPORTS $ Billions % of Total 1. Travel services $205 27% 2. Tech services $107 14% 3. Financial services $102 14% 4. Transport (freight, shipping) $87 12% 5. Professional and mgt. consulting $65 9% $161 $190 $198 $203 $205 $209 $205 $202 2009 2010 2011 2012 2013 2014 2015 2016 -2.6 B -1.3% TECH PRODUCTS EXPORTS COMPTIA TECH TRADE SNAPSHOT IMPORTS AND EXPORTS OF TECH PRODUCTS AND SERVICES Published April 2017 (IN BILLIONS OF CURRENT DOLLARS) Source: International Trade Administration, U.S. Department of Commerce Covers goods in NAICS 334, computer and electronic product manufacturing OVERVIEW v U.S. exports of tech products and services were an estimated $309 billion in 2016, a slight decrease from the previous year. Tech is one of the largest sectors for exports in the U.S. economy. v Exports account for approximately $1 out of every $4 generated in the U.S. tech industry. For many tech bellwethers, exports account for an even higher percentage of sales, with some generating more than half of their revenue overseas. v Tech products exports, also referred to as manufactured goods, fell 1.3 percent to $202 billion. The bright spots in this category include semiconductors, which added $2.2 billion (+3.1 percent) and communications equipment, up $1.9 billion (+1.7 percent). v Tech services exports were flat for the most recently available data compiled for 2015. Growth did occur in IT services, which added $1.8 billion (+12.7 percent), and R&D services, which added $1.6 billion (+4.8 percent). v Tech services exports continue to capture a larger share of total U.S. tech exports. Since 2005, its share has more than doubled and now exceeds 34 percent of total tech exports. v According to the U.S. International Trade Administration’s Office of Trade and Economic Analysis, exports of tech products directly supported an estimated 425,465 industry jobs in 2014, the most recent year of analysis. This translates to approximately 4 in 10 tech manufacturing industry jobs supported by exports. TECH SERVICES EXPORTS +5.5 B +5.5% Software / Software-as-a-service R&D services Information services Telecom services IT services $106 B $107 B Source: U.S. Bureau of Economic Analysis (BEA) 2016 data not yet available at time of publication $101 B +1.0 B +0.9% Billions of current dollars $107 B 0.0 B 0.0% Exports account for approximately $1 out of every $4 generated in the U.S. tech industry Exports directly support 4 in 10 U.S. tech manufacturing sector jobs “ ” Source: U.S. International Trade Administration and Bureau of Economic Analysis (BEA) Manufactured goods export data covers 2016; services export data covers 2015
  2. 2. Copyright (c) 2017 CompTIA Properties, LLC, All Rights Reserved | CompTIA.org | research@comptia.org STATE AND TRADING PARTNER SUMMARY v Fourteen states experienced positive growth of tech products (manufactured goods) exports in 2016. The states with the largest percent change growth year-over- year include: Mississippi (+18.7%), West Virginia (+18.7%), Idaho (+14.6%), Rhode Island (+12.2%), and Oregon (+11.8%). On a dollar value basis, Texas generated the most new export-driven revenue at $1.9 billion. v The strong U.S. dollar has been a contributing factor to sluggish export growth (see Appendix for more detail). v Among metro areas, San Jose exports the greatest volume of tech products at $14.4 billion. Los Angeles, El Paso, New York City, and Portland round out the top five metro area tech product exporters (see Appendix for data covering the top 20 metro areas). v The leading markets for U.S. tech products exports remained largely unchanged from the previous year. The top ten markets account for 68 percent of total tech goods exports. The top ten countries for tech products imports into the U.S. account for 89 percent of all imports in this category. LEADING TRADING PARTNERS FOR TECH PRODUCTS, 2016 U.S. TECH PRODUCTS EXPORTS BY STATE billions of current dollars / tech mfg. goods Source: International Trade Administration, U.S. Department of Commerce Rank State 2015 2016 % change 1. Texas $45.3 $47.2 4.1% 2. California $43.2 $42.4 -1.9% 3. Florida $12.0 $12.0 0.2% 4. Oregon $9.0 $10.0 11.8% 5. Illinois $8.0 $7.7 -3.9% 6. Massachusetts $7.3 $7.0 -4.9% 7. New York $6.9 $6.3 -8.6% 8. Arizona $5.6 $5.6 0.9% 9. Tennessee $5.4 $5.3 -1.7% 10. New Jersey $4.2 $4.2 -0.2% 11. Washington $3.8 $3.8 0.2% 12. Pennsylvania $4.2 $3.5 -17.5% 13. Minnesota $3.5 $3.4 -5.1% 14. Michigan $3.0 $3.1 2.6% 15. Wisconsin $3.2 $2.9 -11.7% 16. Ohio $2.8 $2.6 -7.5% 17. North Carolina $2.8 $2.4 -13.9% 18. Georgia $2.3 $2.4 6.4% 19. Idaho $2.0 $2.2 14.6% 20. Virginia $2.3 $2.2 -3.4% 21. New Mexico $2.4 $2.1 -11.1% 22. Colorado $1.9 $1.9 -1.9% 23. Vermont $2.1 $1.9 -8.7% 24. Utah $2.1 $1.7 -19.0% 25. Nevada $1.5 $1.6 8.0% 26. Kentucky $1.8 $1.6 -8.6% 27. Maryland $1.6 $1.6 -4.3% 28. Indiana $1.4 $1.6 8.5% 29. New Hampshire $1.5 $1.3 -15.8% 30. South Carolina $1.2 $1.2 2.3% 31. Connecticut $1.2 $1.1 -6.9% 32. Mississippi $0.7 $0.9 18.7% 33. Oklahoma $0.7 $0.7 -0.7% 34. Kansas $0.7 $0.7 -9.0% 35. Missouri $0.7 $0.6 -7.0% 36. Iowa $0.6 $0.6 -0.7% 37. Alabama $0.6 $0.6 -4.5% 38. Delaware $0.7 $0.5 -24.4% 39. Maine $0.4 $0.3 -13.9% 40. Arkansas $0.5 $0.3 -44.8% 41. Nebraska $0.2 $0.2 -15.9% 42. Louisiana $0.2 $0.2 -24.1% 43. Rhode Island $0.1 $0.2 12.2% 44. West Virginia $0.10 $0.12 18.7% 45. South Dakota $0.12 $0.09 -22.2% 46. North Dakota $0.05 $0.05 -1.6% 47. District of Columbia $0.06 $0.04 -21.9% 48. Hawaii $0.04 $0.04 -9.1% 49. Montana $0.05 $0.03 -34.7% 50. Alaska $0.04 $0.02 -40.5% 51. Wyoming $0.02 $0.01 -32.5% Exports from U.S. Imports to U.S. 1. Mexico 1. China 2. Canada 2. Mexico 3. China 3. Malaysia 4. Hong Kong 4. South Korea 5. Japan 5. Japan 6. Germany 6. Taiwan 7. Malaysia 7. Thailand 8. Netherlands 8. Viet Nam 9. South Korea 9. Germany 10. Taiwan 10. Canada Exports from U.S. Imports to U.S. 1. United Kingdom 1. India 2. Brazil 2. Canada 3. Canada 3. United Kingdom 4. Switzerland 4. Ireland 5. Argentina 5. Philippines 6. Japan 6. Mexico 7. Germany 7. China 8. Australia 8. Germany 9. India 9. Netherlands 10. Mexico 10. Switzerland LEADING TRADING PARTNERS FOR TECH SERVICES*, 2015 The tech services covered in this data include IT services, telecom services, and information services. Software services, R&D services, certain data hosting services, engineering services, certain repair services, and distribution services are not included due to limitations in the way the BEA aggregates trade data.
  3. 3. Copyright (c) 2017 CompTIA Properties, LLC, All Rights Reserved | CompTIA.org | research@comptia.org TRADE SUPPORTED JOBS SUMMARY v According to the U.S. International Trade Administration’s Office of Trade and Economic Analysis, exports of goods and services from the U.S. support an estimated 11.5 million jobs in 2015, the most recent year of analysis. The methodology used to develop these estimates includes jobs directly and indirectly supported by exports. v Goods exports consisting of manufactured products, agricultural products, and natural resources supported 6.7 million jobs. The export of services accounted for the remaining 4.8 million jobs supported. Since 2009, the estimated number of jobs supported by the export of goods has grown by 900,000. For more detail, see http://trade.gov/mas/ian/employment/index.asp. v Specific to technology, the Office of Trade and Economic Analysis reports exports tech manufactured goods supported an estimated 425,465 industry jobs in 2014, the most recent year of analysis. Nationally, this translates to approximately 4 in 10 jobs in the tech manufacturing industry support by exports. v The Office of Trade and Economic Analysis does not provide state-level export-supported employment figures. One approach for converting national-level data to state- level data is to apportion the data according to the level of exports. The assumption is there is a relationship between the volume of exports and the size of the workforce needed to support producing and delivering those products to international customers. There are limitations to this approach given that tech manufacturers in some states are assembling products from components supplied from other states, which presents challenges in where to allocate the jobs. This is typically signified by having a very high level of tech products exports relative to the size of the state’s tech manufacturing workforce. This is the case in states such as Tennessee, Vermont and Texas. Adjustments were made to the workforce estimates in these cases. v Jobs supported by tech services, including software, exports are embedded in the top level categories covering information and professional and business services, so there is not an established baseline for tech services jobs supported by exports. The Office of Trade and Economic Analysis estimates 12 percent of overall jobs in these categories are supported by exports. Assuming this 12 percent rate roughly holds for the tech services sectors, upwards of potentially several hundred thousand jobs are supported by exports in the tech services sector. v Note regarding use of data from The Office of Trade and Economic Analysis: ”given the data used to estimate jobs supported by state-level exports, care should be taken in the interpretation of the results. The figures presented should best be thought of as representing the number of jobs supported by the exports from a state as opposed to the number of jobs supported by exports within a state.” Source: estimates made by CompTIA using data from the Office of Trade and Economic Analysis covering the 2014 time period TECH MFG INDUSTRY JOBS SUPPORTED BY EXPORTS State Total Tech Mfg. Workforce Est. Industry Jobs Supported by Exports % of Total Alabama 9,005 1,452 16% Alaska 106 66 62% Arizona 34,742 11,070 32% Arkansas 2,481 708 29% California 261,608 95,216 36% Colorado 21,481 4,449 21% Connecticut 12,545 2,822 22% Delaware 2,834 2,162 76% District of Columbia 42 35 83% Florida 40,656 31,212 77% Georgia 10,343 5,119 49% Hawaii 186 117 63% Idaho 11,551 5,022 43% Illinois 31,649 16,281 51% Indiana 15,299 4,109 27% Iowa 12,602 1,291 10% Kansas 5,217 1,639 31% Kentucky 5,240 4,354 83% Louisiana 2,430 656 27% Maine 2,295 579 25% Maryland 17,725 3,641 21% Massachusetts 56,605 18,138 32% Michigan 18,111 7,095 39% Minnesota 45,119 8,436 19% Mississippi 2,201 1,829 83% Missouri 9,709 1,264 13% Montana 579 98 17% Nebraska 4,400 543 12% Nevada 2,811 2,336 83% New Hampshire 14,438 3,934 27% New Jersey 23,022 10,172 44% New Mexico 6,254 4,629 74% New York 56,537 15,318 27% North Carolina 32,126 7,092 22% North Dakota 1,416 110 8% Ohio 19,387 6,028 31% Oklahoma 4,802 1,830 38% Oregon 36,448 18,113 50% Pennsylvania 31,229 8,444 27% Rhode Island 3,302 330 10% South Carolina 6,380 2,804 44% South Dakota 2,239 309 14% Tennessee 5,056 4,202 83% Texas 95,802 79,612 83% Utah 12,935 5,228 40% Vermont 5,430 4,512 83% Virginia 11,302 5,558 49% Washington 19,908 8,719 44% West Virginia 1,207 269 22% Wisconsin 18,371 6,468 35% Wyoming 287 42 15%
  4. 4. Copyright (c) 2017 CompTIA Properties, LLC, All Rights Reserved | CompTIA.org | research@comptia.org 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 1996 est 1997 est 1998 est 1999 est 2000 est 2001 est 2002 est 2003 est 2004 est 2005 est 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 est $ billions | current dollars Imports Exports SUMMARY OF TECH PRODUCTS & SERVICES TRADE BETWEEN THE UNITED STATES AND CANADA/MEXICO U.S. Exports of Tech Products to: 1996 est 1997 est 1998 est 1999 est 2000 est 2001 est 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Canada 19.3 21.8 22.1 22.9 27.0 22.4 19.9 20.3 23.0 25.0 25.1 25.5 25.3 21.2 25.6 27.8 28.7 28.0 27.8 25.3 24.2 Mexico 10.7 14.9 14.9 17.6 24.6 24.9 21.6 21.7 24.5 23.4 25.4 23.0 24.6 25.0 33.0 35.2 36.6 38.6 40.5 43.2 42.9 TOTAL 30.0 36.7 37.0 40.5 51.6 47.3 41.5 42.0 47.5 48.4 50.5 48.5 49.9 46.2 58.6 63.0 65.3 66.6 68.3 68.5 67.1 U.S. Exports of Tech Services to: 1996 est 1997 est 1998 est 1999 est 2000 est 2001 est 2002 est 2003 est 2004 est 2005 est 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 est Canada 1.4 1.5 1.6 1.7 2.1 2.2 2.4 2.8 3.0 3.6 4.7 4.4 4.5 4.5 5.5 6.2 6.1 6.2 6.2 5.9 NA Mexico 0.5 0.6 0.6 0.6 0.7 0.9 0.9 0.8 0.8 1.0 1.2 1.2 1.3 1.2 1.6 1.8 1.9 2.0 2.0 2.0 NA TOTAL 1.9 2.1 2.2 2.3 2.8 3.1 3.3 3.6 3.8 4.6 5.9 5.6 5.8 5.7 7.1 8.0 8.0 8.2 8.2 7.9 NA SUMMARY OF TRADE WITH CANADA AND MEXICO v Total exports of tech products (manufactured goods) and tech services from the U.S. to Canada and Mexico reached an estimated $74.8 billion in 2016. v Among all trading partners in tech products, the U.S. runs the largest surplus with Canada. U.S. exports exceeded imports by $17.7 billion in 2016. The categories where the U.S. experienced the largest surpluses were computers and peripherals (+$7.4 billion) and communications equipment (+$3.3 billion). v Trade of tech services is nearly in balance between the U.S. and Canada ($5.9 billion vs. $6.1 billion). In the notable categories, the U.S. ran a surplus of $2.2 billion in software, and a deficit of -$1.8 billion in IT services in 2015, the most recent year of available data. v U.S. International Trade Administration data indicates the U.S. runs a trade deficit with Mexico in tech products (manufactured goods), while running a surplus in tech services. In 2016, tech products imports from Mexico exceeded exports by $15.5 billion. It should be noted, the U.S. did have a $7.9 billion surplus in exports of semiconductors. Semiconductor exports to Mexico increased 6.0 percent year-over-year. v Because U.S. International Trade Administration data reflects the total wholesale value of product, situations do occur whereby a country may assemble a product comprised of components produced elsewhere, but get credit for the full value of the export. Semiconductors are an example of a primary component in the global supply chain for many products – from computers to cars, that may be assembled and then re-exported. Source: International Trade Administration, U.S. Department of Commerce | CompTIA estimates
  5. 5. Copyright (c) 2017 CompTIA Properties, LLC, All Rights Reserved | CompTIA.org | research@comptia.org 0.0 2.0 4.0 6.0 8.0 10.0 12.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 $ billions | current dollars Optical media Audio / video Computer products Communications equipment Semiconductors Navigational, measuring, medical tech EXPORTS OF TECH PRODUCTS FROM THE U.S. TO JAPAN SUMMARY OF TRADE WITH JAPAN v U.S. exports of tech products (manufactured goods) and tech services to Japan were an estimated $14.7 billion in 2016, an increase of approximately 2.3 percent year-over-year. v Tech products accounted for 56 percent of exports to Japan, with tech services accounting for the remainder. In the Asia and Pacific region, Japan is the largest market for U.S. tech services. v Imports from Japan were an estimated $17.1 billion in 2016, down approximately 2.5 percent from the previous year. Tech imports from Japan are dominated by manufactured goods, which account for 90 percent of the total. v Exports to Japan experienced the strongest gains in communications equipment (up 34 percent or +$349 million) and computer products (up 14 percent or +$130 million). Conversely, semiconductors saw the largest drop at -13.2 percent or -$249 million. v Exports of IT services to Japan improved $149 million, an impressive gain of nearly 24 percent. v Despite the 27.6 percent drop in 2015, software remains the largest component of tech services exports to Japan. U.S. Exports of Tech Products to: 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Japan 10.9 10.2 10.5 9.9 10.6 9.6 8.8 7.2 7.7 8.2 9.3 8.6 8.6 8.0 8.3 U.S. Exports of Tech Services to: 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 est Japan NA NA NA NA 6.1 4.2 5.2 6.1 8.2 8.3 8.4 8.3 7.7 6.4 NA Source: International Trade Administration, U.S. Department of Commerce | CompTIA estimates
  6. 6. Copyright (c) 2017 CompTIA Properties, LLC, All Rights Reserved | CompTIA.org | research@comptia.org Source: International Trade Administration, U.S. Department of Commerce, 2015 data APPENDIX v The already strong U.S. dollar ended 2016 with another gain against a basket of major currencies. This put the dollar at a 14-year high, marking a 42 percent increase since its most recent low point of 2011. A strong dollar provides greater purchasing power, making international travel or imports relatively cheaper. The tradeoff, though, U.S. exports become more expensive to many overseas buyers. v Tech product imports (tech manufactured goods) into the U.S. totaled $373 billion in 2016, down slightly (-0.8%) from 2015. In the aggregate, the U.S. runs a deficit in tech products trade. The deficit is largest for communications equipment, followed by computing equipment. As noted previously, the manner in which trade data is compiled can result in situations that overstate the economic value of exports/imports. v The U.S. runs a surplus in tech services trade, which totaled +$32 billion in 2015, the most recent year of available tech services data. v There is likely some degree of undercounting of tech products and services exports. This stems from the ongoing blurring of lines between constitutes tech, as well as how tech is categorized by government data sources. For example, an automobile company exporting its own autonomous vehicle technology or a financial services firm providing big data services abroad, would not be included in the tech products and services export figures. Rather, they would be captured within the motor vehicles and financial services export categories. v For additional data and detail on manufactured product exports, see http://tse.export.gov/tse/tsehome.aspx. v For additional data and detail on manufactured product exports, see https://www.bea.gov/iTable/index_ita.cfm. U.S. TECH PRODUCTS EXPORTS BY METRO AREA billions of current dollars / tech mfg. goods Metropolitan Statistical Area (MSA) 2015 YoY % change San Jose-Sunnyvale-Santa Clara, CA $14.4 -6.3% Los Angeles-Long Beach-Anaheim, CA $12.7 -31.4% El Paso, TX $12.6 68.7% New York-Newark-Jersey City, NY-NJ-PA $9.5 7.7% Portland-Vancouver-Hillsboro, OR-WA $8.6 9.8% Miami-Fort Lauderdale-West Palm Beach, FL $8.6 -13.7% Boston-Cambridge-Newton, MA-NH $7.4 -17.3% Houston-The Woodlands-Sugar Land, TX $6.9 -4.4% Dallas-Fort Worth-Arlington, TX $6.8 1.6% Chicago-Naperville-Elgin, IL-IN-WI $6.7 4.9% Austin-Round Rock, TX $5.8 8.9% San Francisco-Oakland-Hayward, CA $5.6 -5.9% Phoenix-Mesa-Scottsdale, AZ $4.1 9.2% Minneapolis-St. Paul-Bloomington, MN-WI $3.3 -2.5% Seattle-Tacoma-Bellevue, WA $3.2 -5.2% San Diego-Carlsbad, CA $2.9 -3.9% El Centro, CA $2.9 42.2% Detroit-Warren-Dearborn, MI $2.9 -13.0% Washington-Arlington-Alexandria, DC-VA-MD-WV $2.8 16.1% Memphis, TN-MS-AR $2.4 -1.4% Atlanta-Sandy Springs-Roswell, GA $2.3 -2.2% Philadelphia-Camden-Wilmington, PA-NJ-DE-MD $2.2 -23.0% Nashville-Davidson-Murfreesboro-Franklin, TN $2.2 -0.1% Milwaukee-Waukesha-West Allis, WI $2.0 -6.9% Boise City-Nampa, ID $1.9 -14.0% McAllen-Edinburg-Mission, TX $1.7 -9.5% Laredo, TX $1.6 42.6% Burlington-South Burlington, VT $1.5 NA Rochester, NY $1.5 -0.4% Tampa-St. Petersburg-Clearwater, FL $1.5 -28.8% Riverside-San Bernardino-Ontario, CA $1.5 -7.1% Provo-Orem, UT $1.2 -13.4% Albuquerque, NM $1.2 26.4% Louisville/Jefferson County, KY-IN $1.1 -14.3% San Antonio-New Braunfels, TX $1.1 18.4% Reno-Sparks, NV $1.1 -8.2% Baltimore-Columbia-Towson, MD $1.1 -7.5% Cincinnati-Middletown, OH-KY-IN $0.9 9.3% St. Louis, MO-IL $0.9 16.4% Kansas City, MO-KS $0.9 4.3% Salt Lake City, UT $0.8 -1.6% Pittsburgh, PA $0.8 -0.7% Raleigh-Cary, NC $0.8 -9.0% Harrisburg-Carlisle, PA $0.7 NA Manchester-Nashua, NH $0.7 NA Brownsville-Harlingen, TX $0.7 -14.9% Oxnard-Thousand Oaks-Ventura, CA $0.7 -4.3% ABOUT COMPTIA The Computing Technology Industry Association (CompTIA) is the world's leading not-for-profit technology association. With approximately 2,000 member companies, 3,000 academic and training partners, over 100,000 registered users and more than 2 million IT certifications issued, CompTIA is dedicated to serving the tech industry and tech workforce through education and training programs, market intelligence, social innovation, and more. CompTIA advocates for trade policies that expand export destinations and open new markets for the U.S. technology sector. For more details on CompTIA’s trade work, visit https://www.comptia.org/advocacy/policy-issues/global- trade-and-market-access.

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