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Michigan’s Exports to Europe Rebound

December 6, 2010
by

Across the Blog finishes its examination of Indiana and its neighbors’ ties with the EU by focusing on Michigan.  As the first chart shows, like Indiana and many of its neighbors, Michigan’s exports to both to all 27 EU member states and the Eurozone are up compared to 2009.  After the first nine months of 2010, Michigan is on pace to see exports increase by about 23% to $3.8 billion to the Eurozone and $4.6 billion for the EU as a whole.  While this is impressive growth, despite the size of Michigan’s economy, this is low level of export is similar to Kentucky.

As the second graph shows, even through Michigan’s exports have in general increased over the past ten years to the Eurozone, the Wolverine State has seen a dramatic decrease in the exportation of transportation equipment to Europe.  In 2000, transportation equipment accounted for about 48% of all exports to the Eurozone, but has declined to about 26% in 2010.

The third graph shows that while transportation equipment exports have become less predominant, Michigan’s exports are actually fairly diverse.  About a quarter of all Wolverine State exports to Europe are not one of the five largest categories of goods, as defined by NAICS code.

Finally, as the below table shows, while Michigan exports a wide variety of manufactured products to Europe, none of its agricultural products make it into its top 10 products (processed food is in fact #13 to both the EU and the Eurozone).

Michigan’s Top Ten Exports to Europe

(First 3 Quarters of 2010, Millions of Dollars)

EU27 Eurozone
Transportation Equipment

$893.6

$725.9

Chemicals

$723.5

$601.0
Computer & Electronic Products

$351.7

$274.8
Machinery

$337.0

$233.7
Nonmetallic Mineral Products

$265.0

$249.8
Primary Metal Manufacturing

$260.2

$246.3
Fabricated Metal Products $161.8 $122.5
Miscellaneous Manufactured Commodities $93.0 $77.8
Electrical Equipment, Appliances, & Component $80.6 $67.6
Plastics & Rubber Products $64.3 $36.7
Minerals & Ores $52.2 $52.2

As a result, one must wonder why the Wolverine State, with its large economy lags behind its neighbors in exporting to Europe and if the world’s largest economic region does not represent a large potential market for Michigan.

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