O.C. exports expected to jump 17% in 2010

December 2nd, 2010, 2:46 pm
by Mary Ann Milbourn

Orange County's export business fell 24% as the recession took hold in 2009, but trade is expected to make a big comeback this year, rising 17.1%, according to a forecast released today by Cal State Fullerton.

The forecast, prepared by the school's Institute for Economic and Environmental Studies, is the first in recent years that shows the increasing impact of trade on Orange County's economy.

Economist Anil Puri noted that exports account for 10% of the county's gross domestic product. Trade is expected to contribute $17.4 billion to the county's economy this year, up from a depressed $14.8 billion in 2009.

The CSUF forecast shows trade continuing to grow over the next two years, reaching $20.1 billion in 2012, just above its pre-recession level.

Puri said it's important for local businesses to get on the trade bandwagon because globalization is rapidly changing the world economy.

In the past, the United States was the market that everyone wanted to sell into, but China, India, Brazil and other emerging economies will soon eclipse the United States in trade and will be the new engines of international growth and consumption.

"Looking forward 50 years, what we have to do is stop looking internally and start looking to sell outside the U.S." he said.

The export business could become an important underpinning for Orange County's economy and a key to future job growth. Every $1 million in exports results in six jobs being created or retained.

CSUF's forecast included a series of interesting findings about the significance of trade in Orange County and the greater Los Angeles-Long Beach-Orange County area:

Orange County's biggest trading partner is Canada
Orange County's biggest export is transportation equipment followed by computers and electronic products
The LA-Long Beach-OC metro area is third in the country for trade after New York-New Jersey and Houston, Tex.
The LA-Long Beach-OC metro area accounts for 40% of California's exports

http://economy.ocregister.com/2010/12/0 ... 010/45078/