U.S. Census Bureau News U.S. Department of Commerce Washington, D.C. 20230 FOR IMMEDIATE RELEASE 8:30 A.M. EDT THURSDAY, APRIL 9, 2009 For information contact: (301) 763-3629 CB09-56 Jeffrey McHugh or Ben Shelak A Profile of U.S. Exporting Companies, 2006 - 2007 The U.S. Census Bureau, Department of Commerce, releases the report, A Profile of U.S. Exporting Companies, 2006 - 2007. This report provides information on identified companies and their known export value. Identified U.S. exporters are defined as companies that can be linked to export transactions. The known value is the value of export transactions linked to specific companies. The number of identified exporters increased by 7.4 percent in 2007. The known value increased by 12.6 percent. In 2007 the "identified U.S. exporters" accounted for $1,031 billion in exports or almost 89 percent of the total value of exported goods ($1,162 billion). In 2007 the number of identified U.S. exporters was 266.5 thousand, up from the revised 2006 estimate of 248.0 thousand. In 2006, the known value was revised to $915.8 billion. Because not all export shipments can be linked to specific companies, the number of exporters may be understated. Approximately 12 percent of the 2006 and 11 percent of the 2007 total export value could not be linked to specific companies. This portion of the total export value includes exports by individuals, governments, low-value estimates, and documentation filed with missing, unknown, or incomplete company identifiers. Export values are taken from detailed export documentation used to compile the official U.S. trade statistics. Company size and type information are taken from administrative records and census or survey data on file with the Census Bureau. The overall findings for 2007 and revised findings for 2006 are shown in Table 1, which shows the proportion of exports that were successfully matched to companies in the 2007 Business Register. The 2006 figures in this report are revised from data released in the 2005-2006 exporter profile. The revisions are based on the ability to match additional records. Who Exports? During 2007, 11 percent (29.0 thousand) of all identified exporters were multiple location companies; these companies accounted for almost 78 percent of the known export value (Exhibit 1a). In contrast, (237.5 thousand) single location companies, making up 89 percent of the exporting companies, contributed 22 percent of the known export value. Trade with related parties accounted for 36 percent of the known export value by multiple location companies compared to 15 percent by single location companies (Exhibit 3a). Exhibit 1a shows that manufacturers accounted for the largest portion of the 2007 known value, 65 percent with 27 percent of the identified exporters. "Other companies" and wholesalers accounted for over 14 percent and 20 percent of the known export value, respectively; unclassified exporters accounted for the remainder. The "other companies" category includes manufacturers of prepackaged software and books; freight forwarders and other transportation and warehousing firms, which often act as agents for the true exporter; business, engineering, and management services; oil and gas extraction companies; coal mining companies; and communication services companies. The number of multiple location companies increased by nearly 16 percent in 2007. All company types increased; manufacturers increased by more than 8 percent, wholesalers by more than 20 percent, "other companies" by over 20 percent, and "unclassified companies" by just over 1 percent. The number of multiple location companies with the number of employees unknown declined by 52 percent in 2007; of these, manufacturers dropped by 23 percent, wholesalers by 61 percent, and "other companies" by 58 percent. The 2007 Export Concentration by Top Companies shows the export concentration by percent of known export value. Of the known export value for 2007, 60 percent was accounted for by the top 500 companies. Over half of the total known export value was accounted for by the top 250 exporters. The top 100 manufacturers contributed over one-third of the total known export value and over one-half of all exports by manufacturers. Among the company types, the top 50 manufacturers accounted for over 43 percent of the known export value of the manufacturing sector. The top 50 firms represented almost 32 percent of the known export value for wholesalers and about 36 percent of the known value for "other companies" (Exhibit 2a). Large-Sized Exporters Large identified exporting companies (those employing 500 or more workers) were responsible for 70 percent of the known export value, but represented only 3 percent of all identified exporters (Exhibit 1a). Large companies also dominated manufacturers' exports, with 4 percent of manufacturing exporters (2,887 of 71,563) accounting for 84 percent of manufacturing export value ($569 billion of $675 billion). Similarly, large wholesalers, who comprise less than 1 percent of the wholesalers who export, accounted for more than 37 percent of the value of known exports by wholesalers. Large companies in the "other" category represented over 3 percent of the identified exporters and almost 51 percent of the known value in the "other" category. Roughly 39 percent of large manufacturers' export value was to related parties (Exhibit 3a). Small- and Medium-Sized Exporters Small- and medium-sized exporters (those employing fewer than 500 workers, including number of employees unknown) comprised over 97 percent of all identified exporters and accounted for 30 percent of the known export value. The following findings were extracted from Exhibit 1a: 96 percent of manufacturing exporters were small- or medium-sized companies; however they contributed almost 16 percent of the sector's $675 billion in exports. 99 percent of wholesalers were small- or medium-sized companies; they accounted for nearly 63 percent of the sector's $204 billion in exports. Almost 97 percent of "other companies" were small- or medium-sized companies; they represented 49 percent of the sector's $147 billion in exports. Export Markets The country groups used in the 2007 Profile have been revised from those used in earlier Profiles (Exhibits 5a, 5b, and 5c). Multiple countries were added to and removed from the Europe country group, the Euro Area, the European Union, and the Organization of Petroleum Exporting Countries (OPEC). Please refer to World Area Country Groupings for Exhibits 5a and 5b. Most identified exporting companies (58 percent) traded with only one foreign country. A small percentage of companies, 0.4 percent, shipped to 50 or more countries; these companies accounted for 49 percent of the known export value (Exhibit 4a). In 2007, about 84 percent of all companies exported to at least one of the top 25 U.S. trading partners. The largest number of companies shipped to Canada, followed by Mexico, the United Kingdom, Germany, and China, with China replacing Japan in the top five for the first time in 2007 (Exhibit 5a). Exports by State The Census Bureau releases data on exports by state based on the origin of movement (OM). The OM data series is based on where the goods began their movement to the port of exit as reported on the export document. Exhibit 6 shows the number of companies exporting from each state during 2006 and 2007 based upon the OM definition. (Note that the same company can be shown as exporting from multiple states.) In 2007, the top five states, based on the number of identified exporting companies, were California, Florida, New York, Texas, and Illinois. Exporters in these five states represented almost 41 percent of the total known export value. States/territories recording the largest increases in known export value in 2007 were Montana (33 percent), Louisiana (29 percent), North Dakota (29 percent), Idaho (27 percent), and the Virgin Islands (27 percent). Comparison of 2006 and 2007 Results The relative proportions of exports accounted for by manufacturers, wholesalers, and "other companies" based upon both number of exporters and value of exports remained consistent from 2006 to 2007. Below are a number of noteworthy year-to-year changes (Exhibits 1c and 5c): The number of identified exporting companies increased by 18,472 or over 7 percent. The single location companies increased by 14,555 and the multiple location companies increased by 3,917. The number of small- and medium-sized companies increased by nearly 8 percent from 241.3 thousand in 2006 to 259.4 thousand in 2007, while the number of large companies increased by 5 percent from 6,723 to 7,076. The number of wholesalers increased by almost 6 percent from 82.9 thousand in 2006 to 87.7 thousand in 2007. Additionally, the number of manufacturers increased by 5 percent from 68.1 thousand in 2006 to 71.6 thousand in 2007. Among the top 25 U.S. trading partners, the United Arab Emirates (17 percent), India (13 percent), Brazil (13 percent), and Saudi Arabia (12 percent) showed the largest percentage increases in the number of identified exporting companies. There were no declines in the number of identified exporting companies for any of the top 25 U.S. trading partners between 2006 and 2007. Some portion of these changes may reflect changes in the match rate rather than an actual change in the number of exporters. During the process of identifying individual companies, it was not possible to investigate every unmatched case. Priority was given to identifying unmatched companies having high values of trade. As a result, the information on small exporters is most likely understated. Also, users should not assume that the unidentified exporters reflected the same distribution of company types and sizes as the identified (known) exporters. Comparisons between the number of companies exporting in given categories or different years might be somewhat misleading due to differences in the percent of value we were able to match to specific companies. In addition, the more than 12 percent increase in total export value from $1,037 billion in 2006 to $1,162 billion in 2007 had an uncertain effect on the match rate. Copies of the exporter profiles are available by calling (301)763-2227 or at http://www.census.gov /foreign-trade/aip/index.html#profile. TABLE OF CONTENTS Exhibit 1a. 2007 Exports by Company Type and Employment Size 6 Exhibit 1b. 2006 Exports by Company Type and Employment Size 8 Exhibit 1c. Percent Change Between the 2006 and 2007 Results 10 Exhibit 2a. Top Companies' Share of the 2007 Export Market by Company Type 12 Exhibit 2b. Top Companies' Share of the 2006 Export Market by Company Type 13 Exhibit 3a. 2007 Exports to Related Parties by Company Type and Employment Size 14 Exhibit 3b. 2006 Exports to Related Parties by Company Type and Employment Size 16 Exhibit 4a. 2007 Exports by Company Type and Employment Size to Number of Partner Countries 18 Exhibit 4b. 2006 Exports by Company Type and Employment Size to Number of Partner Countries 19 Exhibit 5a. 2007 Exports by Company Employment Size to World Areas and Selected Countries 20 Exhibit 5b. 2006 Exports by Company Employment Size to World Areas and Selected Countries 22 Exhibit 5c. Percent Change Between 2006 and 2007 Exports to World Areas and Selected Countries 24 Exhibit 6a. 2007 Exports by State of the Origin of Movement, Number of Exporting Companies, Value, and Percent Change Between the 2006 and 2007 Results 25 Exhibit 6b. 2006 Exports by State of the Origin of Movement, Number of Exporting Companies, and Value 26 Technical Documentation This section contains critical information on sources and reliability of data, as well as definitions of terms and methodological procedures that users should consider before attempting to interpret or analyze the statistical data presented in this report. Failure to do so may affect the result. NOTE: All percentages given for company size are based on known value. Table 1: Distribution of Exports by Identified and Unidentified Exporters (Value in millions of dollars. Details may not sum to total due to rounding.) 2007 Export Value % of 2007 Value 2006 Export Value % of 2006 Value Total exports 1,162,479 100.0 1,036,635 100.0 Low-value estimates 26,913 2.3 22,997 2.2 US & foreign governments 1,580 0.1 1,672 0.2 Revisions -229 <-0.1 -508 <-0.1 Identified exporters* (known value) 1,031,007 88.7 915,752 88.3 Exported merchandise in both 2005 and 2006 969,686 83.4 884,558 85.3 Exported merchandise in only 2005 or only 2006 61,321 5.3 30,938 3.0 Unidentified exports 103,210 8.9 96,722 9.3 *Number of Identified Exporters 2007 2006 Exported in Both Years Exported in 2007 Only Exported in 2006 Only 266,457 247,985 166,689 99,768 81,284 * Note: Percentages may not add up to 100.0 percent due to rounding