TN.gov Newsroom

NASHVILLE – Tennessee’s momentum in export growth which began in 2004 and is continuing in 2006 is being bolstered by the American Electronics Association’s 2006 Cyberstates Report, which places Tennessee among the Top Ten technology exporting states in the country for the first time.

According to the U.S. Department of Commerce’s Export Assistance Center in Nashville, Tennessee exports rose by 51% from 2003-2005, the highest rate of growth of any major exporting state in the country. Tennessee exports continue their rapid trajectory in the first quarter of 2006, growing 21% above the same period last year and far outpacing the national average of 14%. Tennessee is now the 14th largest exporting state in the nation in terms of overall dollar volume. In 2005, Tennessee companies exported more than $19 billion dollars worth of goods and services to foreign markets. The state’s largest export commodities include cotton, automobiles, auto parts and medical devices. The American Electronics Association’s 2006 Cyberstates Report showed unexpected strength in Tennessee’s technology sector, especially among companies which manufacture computers and data processing equipment. The AeA report placed the dollar value of Tennessee exports from this sector at $3.8 billion dollars in 2005, an increase of 23% over the previous year. That volume was good enough to rank Tennessee 10th among technology exporting states, ahead of traditionally strong export states like Georgia and North Carolina. Tennessee ranked 14th in technology exports in 2004 and 21st in 2003.

The AeA report shows more than 5.6 million Americans worked in the high tech industry in 2005, up 1 percent from 2004. In 2005, high tech manufacturing in the U.S. grew by 3,300 jobs, the first growth in that sector in five years.

“I think Tennessee is well positioned to grow technology-related jobs in the coming years,” said Tennessee Governor Phil Bredesen. “We’re seeing job growth in that sector and as we build greater partnerships between local communities, K-12 and higher education in Tennessee, our ability to compete for those jobs keeps getting better.”

“These numbers show real strength in Tennessee’s ability to attract high skilled, good paying jobs,” said Matt Kisber, commissioner, Tennessee Department of Economic and Community Development. “We know export growth can lead to good jobs for Tennesseans and we’re committed to making that happen by helping Tennessee companies reach new markets.”

The news comes just as Commissioner Kisber is about to lead a trade mission of Tennessee companies and trade associations to Australia for talks aimed at creating jobs through global trade. Recognized Tennessee brands such as FedEx are participating in the trade mission, as well as growing companies like Consolidated Inventory Supply, Inc of Alcoa, TN and Microwave Synergy, Inc of Chattanooga, TN. In addition, the Tennessee Farm Bureau, the Tennessee Department of Agriculture, the Tennessee Beef Industry Council, Mallory Alexander International Logistics of Memphis, the Memphis Music Commission, the Australian Festival of Tennessee and the Fayetteville-Lincoln County Industrial Development Board will be sending representatives on the trade mission. The delegation will meet with Australian companies June 19-20 in Sydney and June 22-23 in Melbourne.

“Tennessee companies are aggressively looking to foreign markets for new customers,” said Dean Peterson, director, Nashville Export Assistance Center. “Many new companies just starting to think about exporting are surprised to find how much help they can get from the U.S. Department of Commerce, the state of Tennessee and their local chamber of commerce.”

In November 2005, Gov. Bredesen announced Export Tennessee, an export education program designed to help small and medium-sized businesses in Tennessee learn more about increasing their bottom-line through the export of products to other countries. The program provides information on identifying potential foreign markets and navigating the export process. Export Tennessee is a partnership between the state of Tennessee and the U.S. Chamber of Commerce’s TradeRoots program, which selected Tennessee as one of eight states to participate in this initiative, primarily because of the huge potential of the state’s small and midsize companies and its historical success in attracting foreign direct investment. For more information about this partnership, visit www.traderoots.org.

One example of Tennesee’s efforts to serve the needs of Tennessee companies in an ever-growing global economy can be seen through ECD’s partnership with the Japan External Trade Organization (JETRO). JETRO is a non-profit Japanese government organization dedicated to developing mutually beneficial trade relations between Japan and trade partners around the world. ECD houses JETRO’s office in Tennessee and works closely with JETRO trade representative Kazumi Iino.

The state of Tennessee has participated in trade missions to both emerging and established markets, such as Japan, Germany, Canada, China and Brazil. In October 2005, Governor Bredesen, Commissioner Kisber and representatives of Tennessee business and a number of communities traveled to Japan to attend the Japan-U.S. Southeast Association annual meeting. In addition, the Department of Economic and Community Development has staff in offices in Canada, Japan and Europe to connect with foreign companies interested in investing in Tennessee and