Press Releases

Kernan and Lt. Gov. Kathy Davis, who leads the state's economic development efforts as director of the Indiana Department of Commerce, today released the year-end numbers along with the state's fourth quarter results, which totaled $4.2 billion.

"This is tremendous news for our state," Kernan said. "Not only are Indiana's 2003 export numbers a demonstration of an improving economy, but the record-setting performance proves that Hoosier products are competitive throughout the global marketplace.

"Our companies are to be commended for working hard every day to expand their customer base beyond the state's border, ensuring their business continues to grow here at home."

With an annualized 37 percent increase over the third quarter of 2003, the fourth quarter results helped Indiana jump to 12th place for national export sales, up from 13th in 2002.

In all, Indiana exports increased by about $1.5 billion or by 9.9 percent in 2003. The $16.4 billion was about $1 billion higher than the previous peak attained in 2000. Indiana's growth rate more than doubled the U.S. increase of about 4.4 percent. It also exceeded the growth rate of all the top 15 export states, except Massachusetts.

Canada, the state's leading trade partner, purchased $639 million more from Indiana in 2003, which explained almost half of the increase in export sales in 2003. France, Brazil and China also contributed to the increase with high growth rates, all reversing losses in 2002.

Top trading partners United Kingdom and Mexico also purchased more from Indiana in 2003, $202 million and $163 million, respectively. All top-10 country destinations purchased more in 2003 from Indiana except the Netherlands and Japan.

"With a steady increase in export sales since 1996, Indiana has a lot to be proud of in the international arena," Davis said. "As the economy becomes more competitive on a global scale, Hoosier businesses are leading the way, and this past year is just the latest in a long trend of export growth."

Larry Davidson, professor of Business Economics and Public Policy at the IU Kelley School of Business, said he would expect the trend to continue. "I see an improved year for Indiana exporters in 2004. The combination of improved prospects abroad, stronger world trade and a weaker dollar suggest a kind of 'perfect storm' for Indiana exporters," Davidson said. "I look for Indiana export growth in 2004 in the range of 10 to 15 percent."

The fourth quarter and year-end export numbers were released in The New Quarterly Indiana Export Report issued by the Center for International Business Education and Research at the IU Kelley School of Business.

In addition to containing details about fourth quarter and year-end export numbers, report features a summary of a special report on the relationship between Indiana exports and manufacturing employment. The full report will be available March 8, at www.indianacommerce.com/export_report.

For further information about Indiana's exports, contact the Indiana Department of Commerce's Office of International Trade at 317-233-3762.

Reporters' contacts:
Tina Noel or Jonathan Swain, Governor's Office, 317-232-4578
Ronnetta Slaughter, Lt. Governor's Office, 317-232-4789
Angie Dye, Indiana Department of Commerce, 317-232-2464