The Plunging Price of Beans

Pinto and black bean prices are down more than 20 percent since last December, the USDA reports today.

Pinto beans dropped -23.3 percent to $0.33 cents per pound, compared with $0.43 cents last year. Black beans sunk -28.6 percent to $0.35 cents compared with $0.49 cents.

The reason is that production has rebounded almost 60 percent from the "dramatic lows" of 2011 —to about 14 million cwt versus about 6 million cwt last year.

Prices for all beans declined slightly on average — here's the chart. Business Insider

Trade Deficit Could Make the Worth of Consumers' Savings Diminish

The U.S. trade deficit increased $1.9 billion in a month, according to an analysis done by the Department of Commerce, which could mean many families will see the worth of their savings drop.

A trade deficit is created when a country imports more goods than it exports. This year, U.S. exports declined 3.6 percent. This means the fewest goods were shipped out of America this year since January 2009.

Growing trade deficits can affect consumers by changing the value of the dollar, according to an article by Daily Reckoning.

As the deficit gap increased by 4.9 percent, Addison Wiggin, writer for the Daily Reckoning, explained what this means for the dollar.

"America has a lot of wealth, but that wealth is being consumed very quickly," Wiggin said in his article. "History shows that no matter how rich you are, you can lose that wealth if you’re not productive. Meanwhile, the dollar’s value falls and — in spite of the Fed’s view that this is a good thing — it means our savings are worth less. Your spending power falls when the dollar falls, and as this continues, the consequences will be sobering."

Using more goods than it produces, the U.S.'s largest trade deficit is with China, where it's $261.5 billion in debt. The other top five countries are Japan, Germany, Mexico and Saudi Arabia, according to the Census Bureau.

China's trade gap with the U.S. stretched to the largest on record in October.
One of the suggested reasons for this slump is Superstorm Sandy and the closed New Jersey ports, according to an article by Bloomberg.

Also, the cost of soybeans dropped, which Bloomberg suspects came from the Midwest drought. Cooling economies in Europe and Asia could be taking their toll on exporting as well.

Wiggen suggests another cause for the growing gap.

"The steep decline in personal saving is a symptom of our spending, and along with that habit we have lower capital investment and a growing federal budget deficit," Wiggen said. Deseret News

Utah Ranked Among the Top 5 Best-Run States

According to Delaware based 24/7 Wall St., Utah ranks among the best managed states in the country.

24/7 Wall St. looked at each state's debt, revenue, expenditures, and deficit to conclude how well each state is managed fiscally.

Other determining factors are taxes, exports, GDP growth, income, poverty, unemployment, high school graduation rates, crime foreclosure rates.

After weighing all this information Utah was ranked 4th in 2012.

Here is how 24/7 Wall St. made that conclusion.

• Debt per capita: $2,356 (15th lowest) 
• Budget deficit: 14.7% (25th largest) 
• Unemployment: 6.7% (tied-11th lowest) 
• Median household income: $55,869 (14th highest) 
• Percent below poverty line: 13.5% (tied-17th lowest) 

In 2011, Utah's budget deficit was $700 million. This was equal to 14.7% of the state’s GDP. This debt-to-GDP ratio was worse than half the states in the U.S. On the flip side, Utah committed to reducing expenses instead of raising taxes or increasing debt. The state also limited its borrowing. Its total debt was just under $6.5 billion in fiscal 2010, or $2,356 per capita. Utah also received the highest credit ratings available by Moody’s and S&P because of the state’s strong fiscal management. Moody’s commented that Utah has a “tradition of conservative fiscal management; rebuilding of budgetary reserves after their use in the recession; [and] a closely managed debt portfolio.” abc4

Manufacturing Employment Recovering in Utah

After suffering two recessions since 2000, employment in Utah’s manufacturing industries has been improving since 2010 and is projected to do so into 2013. With the most recent downturn, manufacturing employment peaked in 2007 and thereafter commenced four years of declining employment figures. As figure 1 shows, if the trajectory from the turnaround continues, manufacturing employment can match previous peaks in only a few years. The 2013 forecast places employment at 122,490, which is a 3.8 percent growth from 2012 and 96 percent of the 2007 peak. By 2020 employment in manufacturing will have fully recovered jobs lost in the most recent recession and will have grown beyond recovery, according to long-term industry projections released by the Department of Workforce Services.

Figure 1: Manufacturing total employment and forecast

The largest concentration of Utah’s manufacturing employment is in the Miscellaneous Manufacturing subsector (NAICS 339), which includes medical equipment and supplies, jewelry, sporting goods, toys, and office supplies (figure 2). An analysis of this subsector’s location quotient, which measures the level of concentration of an industry’s employment in Utah compared to the US, reveals a high concentration in Utah. This implies an export-oriented industry with more of its products being consumed outside of Utah. Another top subsector in terms of employment concentration is Food Manufacturing (NAICS 311), which is also export-oriented and produces the fourth largest US export in terms of value, according to the US Department of Commerce.

Figure 2: Manufacturing employment by industry sector

Manufacturing experienced some of Utah’s largest job losses during the most recent recession and continued this trend for a few years. But it has been steadily recovering employment and is expected to continue to grow through 2013.

Stronger European economy good for Utah

This summer Germany’s state-owned railway giant Deutsche Bahn started to experience what globalization is all about in the very heart of its business. The privately owned company HKX began servicing the Cologne-Hamburg railroad.

HKX, for the first time, brought competition on a long-distance connection in Germany’s still largely monopolized railroad market. HKX — the acronym means Hamburg-Köln-Express — offers travelers transport between two important metropolitan areas at a very competitive price.

Why is Peter Seidel, a political reporter for Kölner Stadt-Anzeiger in Cologne, Germany telling all this to readers of The Salt Lake City Tribune, more than 5,100 miles and eight time zones away from Germany? Well, first of all, the competitor to Deutsche Bahn is Railroad Development Corp., an American company from Pittsburgh, Pa., which owns HKX.

And while the fact that an American railroad company goes to Germany to invest in a railroad connection rather than doing that at home says a lot about the situation of railway as a means of mass transport in the U.S., it also says: Businesses go to where they find promising markets and opportunities.

Utah’s companies in that respect seem to have made ample use of their chances in Europe in the past decade. Utah’s exports have more than quadrupled from $1.3 billion in the year 2000 to more than $6 billion in 2010, making Europe — the 27 EU-member states plus Switzerland — the most important export market for Utah.

Of a total of $6.5 billion invested in Utah, $1.1 billion or 17 percent came from Europe, thus supporting 19,300 jobs in Utah in 2008. Together with West Virginia and South Carolina, Utah is one of three U.S. states that are most intensely connected with the European market.

Sadly, these figures in the single market don’t look too good right now, for the EU and for Utah. Utah’s exports to the EU have already decreased by 9 percent between 2010 and 2011. And if the euro crisis continues to put economic growth rates in Utah’s most important European partner countries under pressure, this might become worse.

The most important market for Utah’s commodities is Great Britain, where about two-thirds of Utah exports go. Switzerland, Belgium and Germany account for another 25 percent of Utah exports to Europe as a whole. Salt Lake Tribune

Utah international summit to feature 7 foreign trade reps

The Governor’s Office of Economic Development plans to hold a summit later this month that will bring together seven foreign trade representatives to consult with Utah companies on how best to do business in their respective countries and regions.

The trade representatives will be from Bahrain, Europe, Mexico, Chile, Japan, China and South Korea.
Salt Lake Tribune

GOED’s International Trade and Diplomacy Office Leads Trade Mission to Southeast Asia

The Governor’s Office of Economic Development (GOED) sees new opportunity for Utah businesses and entrepreneurs on the other side of the Pacific: this time, in Southeast Asia. Brett Heimburger, the Governor’s Office of Economic Development’s regional director for Asia, is leading a delegation looking to develop business partnerships and find new avenues into Indonesia and Thailand.

Indonesia is the globe’s fourth most populous country. The island nation’s population is booming, and so is business opportunity. On the heels of Indonesia’s credit upgrade and strong economic momentum in the region, the trade mission touches down in Jakarta, Indonesia with representatives from the State of Utah as well as leaders in business and education.

The GOED-led delegation features an array of prominent Utah industry sectors: security, nutraceuticals, medical devices, and consumer electronics and goods. Utah Pulse

A Promising, Complicated and Emerging Market for Utah Companies

The upcoming Utah Trade Mission to Indonesia (September 24-28) offers business owners an excellent opportunity to explore this unique country, with the world’s fourth largest population of 240 million and an economy anticipated to grow at an average rate of 8 percent over the next several years.

What specific opportunities does that create for the companies in Utah?

Currently, there are 19 scheduled and 41 chartered airline companies operating in Indonesia. Utah aviation industry has significant opportunities along all aerospace subsectors. Specifically, there is a pressing need for air traffic control systems, airport ground support equipment, safety and security equipment, IT infrastructure and services, and engineering and logistics surrounding the airport supply chain.

As the fourth most populous country in the world, Indonesia relies heavily on imported medical equipment and supplies. Total imports of medical equipment grew from $508 million in 2009 to $543 million in 2010, with U.S. imports accounting for 20 percent of this market. This sector continues to present excellent opportunities for Utah companies with predicted strong growth over the next two years. According to the market research done by the U.S. Commercial Service, life support equipment such as ventilators, anesthesia equipment, patient monitoring equipment, electro-medical equipment, ultrasonic scanning machines, diagnostic equipment, and disposable products render the best prospects. UtahPolicy

Utah exporters will benefit from more Russian trade, group says

When Russia joins the World Trade Organization (WTO) later this year, exporters in Utah and throughout the United States could increase trade with the world’s ninth largest economy, according to the Business Roundtable.

However, Congress must first act by approving "permanent normal trade relations" or PRTN legislation before Utah and other states can enjoy the benefits of Russia’s market-opening WTO commitments, it said.

John Engler, Business Roundtable president explained that Russia’s WTO membership means that it must lower its tariffs, provide greater market transparency, protect intellectual property rights and abide by the WTO’s rules of international trade. Salt Lake Tribune

The Middle East Continues Growth Opportunities for Utah Companies

The increasing demand for American products and know-how in the Kingdom of Saudi Arabia was the focus of the recent event entitled: Saudi Arabia: Taking Business Opportunities in the Middle East to the Next Level, hosted by World Trade Center Utah, the Utah Governor’s Office of Economic Development, and the World Trade Association of Utah. With well over 60 company representatives in attendance, the audience was clearly engaged and very positive in their response.

Welcoming comments were delivered by Mr. Lew Cramer, President, World Trade Center, Utah, followed by introductions by Mr. Gary Harter, Managing Director, Business Outreach and International Trade, and Mr. Franz Kolb, Regional Director, Middle East North Africa (MENA), both representing the Utah Governor’s Office of Economic Development. Utah Pulse

Small Utah businesses are exporting into large overseas markets

Somewhere across the globe, a competitive archer is aiming a bow and arrow manufactured in Salt Lake City, a heart patient is receiving a stent made in South Jordan, and a genealogist is combing through historical records on a Provo-based website. 

In our ever-flattening world, Utah companies are realizing vast opportunities by exporting their products and services overseas. That's not surprising considering roughly 75 percent of the world's purchasing power and 95 percent of its population are outside the United States, according to the Office of the United States Trade Representative.

But what was almost unthinkable 10 years ago — a small business exporting to a market like China, for example — is now possible thanks to technological advances such as the rise of e-commerce sites, among other factors.

In fact, most of the nearly 2,900 Utah companies that export are small and medium-sized businesses. By selling their goods abroad — to top Utah export destinations like the United Kingdom, China, Canada and India — these companies are able to diversify their portfolios, weather changes in the domestic economy, and maximize their growth potential.  KSL

Small world: Small Utah businesses are exporting into large overseas markets

In our ever-flattening world, Utah companies are realizing vast opportunities by exporting their products and services overseas. That's not surprising considering roughly 75 percent of the world's purchasing power and 95 percent of its population are outside the United States, according to the Office of the United States Trade Representative.

But what was almost unthinkable 10 years ago — a small business exporting to a market like China, for example — is now possible thanks to technological advances such as the rise of e-commerce sites, among other factors.

In fact, most of the nearly 2,900 Utah companies that export are small and medium-sized businesses. By selling their goods abroad — to top Utah export destinations like the United Kingdom, China, Canada and India — these companies are able to diversify their portfolios, weather changes in the domestic economy, and maximize their growth potential.

Last year, Utah exports reached $18.9 billion, a 37 percent increase over 2010's $13.8 billion, according to the International Trade Administration. And World Trade Center Utah has reported that ours is the only state in the U.S. to double its international exports in the last five years. KSL.com

Metro Areas Driving National Export Growth

The Utah Jobs Agenda is a 10-point, private sector plan to create 150,000 jobs over five years. One of the key components of the Agenda is to grow is to double the value of international merchandise exports during that time period.

Utah has been a leader in export growth—increasing exports by 142 percent in the past five years, reaching our all-time high of over $18 billion last year.

Utah exports create high paying Utah jobs.

The Brookings Institute recently found exports have played a major role in driving the U.S. economy forward in the past two years, contributing to more than 46 percent of the nation’s growth in 2010. In fact, total exports that year almost reached pre-recession levels.

Utah was among states where metropolitan area exports account for over 60 percent of the export total for the state.

Utah has led the U.S. in merchandise export growth for the past three years with 39.5 percent growth, jumping from $13.8 billion in 2010 to $18.93 billion in 2011. UtahPolicy

Exports key economic driver in Utah

Utah's booming export industry is critical to the state's economy, according to a University of Utah report. The latest volume of the Utah Economic and Business Review indicated that the Beehive State exported $13.6 billion in goods last year — with gold and silver accounting for nearly 52 percent of the state’s exports by value at $7 billion. "Almost 66,000 jobs are supported by export industries," said John Downen, research analyst with the Bureau of Economic and Business Research at the University of Utah. Among the top exports are computer memory, industrial products, precious medals and minerals, he noted. Deseret News

Note: The full report can be accessed by clicking here.

Utah's exports are booming

Exports from the Beehive State have doubled in the past five years, and early indications this year show the upward climb is continuing. Utah exported $13.6 billion worth of goods during 2010 and is on pace to increase that amount this year to more than $16 billion, local trade officials say. That translates to more jobs. Numbers provided by the U.S. Chamber of Commerce suggest Utah's export business currently supports approximately 28,101 jobs in the First Congressional District. Ogden Standard Examiner

Utah exports continue rise, boosting jobs, economy

Early results suggest Utah once again is on pace to report a record year of exports, a sector that has added 20,000 jobs statewide in the past four years. The value of the state’s merchandise exports — from its precious metals to its high-tech medical products — surpassed $5.6 billion in the first four months of 2011, a 20.4 percent increase over the $4.7 billion exported during the same period of the previous year. Utah exported $13.6 billion in merchandise in 2010, a 31 percent increase over 2009’s record. Salt Lake Tribune

Exports gain momentum in Utah economy

As the once-reliable twins of the local economy — real estate and population growth — have faltered, a smaller but more solid sector — exports — has been picking up the slack and gaining momentum.

Despite all the hand-wringing about the U.S. trade deficit that posted an 18-month peak earlier this month as the value of imports surged and exports nationwide have been bumping along or sinking into the negative, Utah has been quietly holding its own.

"And it has three of the top 10 metro areas in our study that appear to be the beams of a new economic era that could shoulder in a new wave of jobs and innovation," said Mark Muro, a co-author of a Brookings Institution report released today stating that the Mountain West, and Salt Lake metro areas in particular, could well be the new home of national export growth and the new hope for global competition.

"Thinking exports and global markets is second nature to Utah for a number of reasons; it's part of the area's DNA at this point," Muro said in a telephone interview last week. "What our research has found in the midst of the long but now dwindling real estate-driven economy, filling a growing demand for exports will create thousands of new, good-paying jobs and could well be the new sustainable economy." The Deseret News