Trade Creates Jobs for Hawaii
Creating and preserving quality U.S. jobs is a goal shared by all Americans. With 95 percent of
the world’s consumers living outside of the United States, it makes sense for small and large
businesses to partner to build stronger trade ties with countries seeking U.S. goods and services.
Trade creates jobs for Hawaiians. Export growth increases jobs by generating new business for
Hawaii’s manufacturers, services providers and farmers. Imports support jobs and keep costs
low, helping Hawaii businesses compete and saving Hawaii families real dollars at the cash
register. Foreign investment in Hawaii creates good jobs across a range of sectors.
MORE THAN 1 IN 5 HAWAII JOBS DEPENDS ON TRADE
Hawaii workers need trade to maintain and create jobs.
•
Today, 201,700 jobs in Hawaii depend on trade.
•
In 2008, 23.1 percent of jobs in Hawaii depended on trade, up from 11.4 percent in 1992.
•
Hawaii’s trade-related employment grew more than twice as fast as total employment
from 2004 to 2008.
Hawaii Jobs Tied to Trade, 2008
Wholesale & Retail Trade
Transp. & Warehousing
Prof., Sci., & Tech. Services
Finance & Insurance
Information
Manufacturing
26,000
7,800
7,300
6,000
3,600
500
Small and Large Employers Partner to
Export
Small and medium-sized enterprises (SME)
and workers in Hawaii supply goods and
services to large U.S. companies in and out
of the State. Those bigger companies use
the SME goods and services to make other
products and services that they, in turn,
export to customers around the world.
Jobs in exporting plants pay on average up to 18 percent more than similar jobs in nonexporting plants.
Newly exporting firms increase employment almost four times faster than non-exporting
firms.
http://trade.businessroundtable.org
HAWAII’S INDUSTRIES, SMALL BUSINESSES AND FARMERS GROW WITH EXPORTS
According to the U.S. Department of Commerce, Hawaii’s exports totaled $959.6 million in 2008.
•
•
•
Other
Tob. Prod.
4%
In 2008, Hawaii companies sold their
Computers/
products in nearly 120 foreign markets.
Electronics
5%
The top export market is Australia ($375.4
million). Other leading markets include
Korea ($110.4 million) and Japan ($93.9
million).
•
The Philippines is one of Hawaii’s fastest
growing trading partners. In 2008, Hawaii
companies exported $16.1 million worth of
goods to the Philippines, an increase of 229
percent since 2002.
•
Transport.
Equip.
43%
One of the fastest growing export
16%
categories for Hawaii is petroleum and
coal products, increasing at an average
annual rate of 20.6 percent since 2002. Beverages &
•
•
Leading Export Products
Transportation equipment was Hawaii’s
leading export category in 2008 accounting
for 43.7 percent of total exports.
In 2008, exports accounted for
approximately 1.5 percent of Hawaii’s
state gross domestic product (state
GDP).
Since 2002, exports have increased nearly
twice as fast as state GDP.
Waste &
Scrap
10%
Petrol. &
Coal Prod.
22%
Leading Export Markets
Singapore
8%
Other
24%
China
8%
Japan
10%
Korea
12%
Australia
38%
Services exports are also important to Hawaii, including port services, education of foreign
students at Hawaii colleges and universities, and spending by foreign visitors to tourist
destinations in Hawaii, including Waikiki and Mauna Kea. In 2008, cruises alone created $545
million in direct spending in Hawaii, generating nearly 16,000 jobs. Overall, services companies
employ 603,700 workers in Hawaii. In 2008, 142,200 Hawaii services jobs depended on trade.
Hawaii is a leading exporter of certain agricultural products. The State is the ninth largest
exporter of tree nuts in the United States and is the only U.S. state that produces either
macadamia nuts or coffee. Hawaii’s other leading exports products include fruits and fruit
products and wheat products. Key markets are Japan, Canada, and France. These exports
directly benefit Hawaii’s farmers in Kona and on the Big Island.
http://trade.businessroundtable.org
HAWAII’S SMALL AND MEDIUM BUSINESSES PARTNER WITH LARGE BUSINESSES
TO EXPORT
Exports particularly benefit workers at Hawaii’s small- and mid-size companies. In 2007, 582 –
87.4 percent – of Hawaii’s exporting companies were small- or mid-sized companies.
Larger Hawaii companies are also important exporters. For the United States generally, half of
U.S. exports are generated by U.S. multinationals.
Small and medium-sized Hawaii companies also indirectly export when they supply goods and
services to larger Hawaii exporters. Every job at a Hawaii worldwide company supports nearly two
others at companies that are part of its supply chain.
Leading Hawaii Exporters
Company
Products
Island Ventures Ltd.
Hawthorne Pacific Power Systems
Greenwell Farms
Fastpak Hawaii
Kona Brewing Company
HFM Food Services
French Gourmet Inc.
Bayview Farm
Koyo USA
Perfumes, cosmetics
Generators, radiators
Coffee
Household goods
Beer
Food products
Pastries bread, muffin mixes
Building materials
Bottled water
http://trade.businessroundtable.org
Foreign Markets
Hong Kong
Pacific Islands
Sweden, Germany
Philippines
Japan
Pacific Islands
Singapore, U.A.E.
Philippines
Japan, Singapore
MORE OF A GOOD THING FOR HAWAII – TRADE AGREEMENTS LEVEL THE PLAYING
FIELD
The United States has some of the lowest trade barriers in the world. Trade agreements level
the playing field by lowering other nations’ trade barriers and opening up foreign markets to
U.S. exports. Hawaii has increased its exports to partner countries following the implementation
of the U.S. bilateral and regional free trade agreements (FTAs).
•
FTA partner Australia is Hawaii’s largest export market, led by exports of transportation
equipment and computers and electronics.
•
Since the U.S.-Singapore FTA went into effect in 2004, Singapore has become the fifth
largest export market – up from 11th in 2003 – for Hawaii’s products.
•
In fact, half of Hawaii’s top ten export markets in 2008 were FTA partner countries,
including previously small markets like Guatemala and El Salvador.
•
Following passage of the Dominican Republic-Central America Free Trade
Agreement (DR-CAFTA), Hawaii’s exports to DR-CAFTA countries increased from just
$2.5 million in 2005 to $67.8 million in 2008.
The United States enjoys a trade surplus in manufactured goods with its FTA partners.*
U.S. Trade Balance, 2008
144.3
Services
34.8
Agricultural Products
Manufactured Goods:
15 FTA Partners
19.2
-380.5
Oil Products
Manufactured Goods:
Other Countries
-475.4
-500
-400
-300
-200
$ billions
-100
* State-specific data are not available for imports, so this chart cannot be prepared for Hawaii
http://trade.businessroundtable.org
0
100
FOREIGN INVESTMENT IN HAWAII CREATES JOBS
Foreign-owned companies invest significant amounts of capital to open or expand facilities in
Hawaii every year.
These companies employ 28,500 workers, almost 6 percent of all Hawaii employees in the
private sector.
•
Foreign-owned manufacturing accounts for 1,100 jobs, representing over 7 percent of
all manufacturing jobs in Hawaii.
•
U.S. subsidiaries of foreign companies pay an average compensation of $68,317 per
year, 32 percent higher than U.S. companies.
Selected Multinational Corporations Employing Workers in Hawaii
Company
Air Liquide
BAE Systems
First Insurance Company of Hawaii
Kotobuki Industries
Koyo USA
Kyo-Ya Company
Star Cruises
Industry
Country
Industrial Gases
France
Defense/Aerospace
United Kingdom
Insurance/Financial Services
Japan
Machinery
Japan
Beverage Bottling
Japan
Travel and Tourism
Japan
Travel and Tourism
Singapore
HAWAII COMPANIES AND WORKERS USE IMPORTS TO STAY COMPETITVE
•
In 2008, 58.5 percent of the products we imported were used by U.S. workers to
manufacture goods in the United States. Lower cost inputs keep U.S. manufacturing
competitive in international markets.
•
Imports frequently contain components (like cotton or semiconductors) and services
(like design) sourced from U.S. companies and farmers, including companies and
farmers in Hawaii.
•
Services, especially transportation from Hawaii’s ports, finance and insurance,
marketing and legal services, are needed to bring imported goods to American
manufacturers and households. These importing-related services industries are vital to
Hawaii’s growth, and account for 31.4 percent of state GDP, more than eighteen times
as much as manufacturing.
http://trade.businessroundtable.org
EXPORTS AND IMPORTS HELP HAWAII FAMILIES ENJOY A HIGHER STANDARD OF
LIVING
Exports and imports support family incomes.
•
Jobs in exporting plants pay on average up
to 18 percent more than similar jobs in nonexporting plants.
Imports Keep Inflation Low
(1999-2008)
Price Change
Toys
-45%
Clothing
-10%
Household Appliances
-9%
Footwear
-3%
•
Imports help keep prices for Hawaii families
down while increasing their choices for goods
and services. Prices for imported consumer
goods tend to drop year after year.
•
Trade and investment liberalization policies are worth over $10,000 per year to an
average Hawaii family of four.
SOURCES
JOBS
Laura Baughman and Joseph Francois, Trade Partnership Worldwide, LLC (http://www.businessroundtable.org)
U.S. Department of Labor (http://www.bls.gov/lau/home.htm)
U.S. Department of Commerce (http://ita.doc.gov/td/industry/otea/jobs/index.html),
(http://ita.doc.gov/td/industry/otea/edb/index.html), (http://www.bea.gov/regional/index.htm)
EXPORTS
U.S. Department of Agriculture (http://www.ers.usda.gov/StateFacts/)
U.S. Department of Commerce (http://tse.export.gov), (http://www.usatradeonline.gov),
(http://ita.doc.gov/td/industry/otea/edb/index.html), (http://www.bea.gov/bea/regional/gsp/)
Andrew B. Bernard, J. Bradford Jensen, and Peter K. Schott (http://www.iie.com/publications/wp/wp05-10.pdf)
PIERS Trade Intelligence database (http://www.piers.com/)
Cruise Lines International Association, “2008 Cruise Industry Economic Study” (http://www2.cruising.org/Press/research/index.cfm)
FOREIGN INVESTMENT
Organization for International Investment (http://www.ofii.org)
IMPORTS
U.S. Department of Labor (http://www.bls.gov/mxp/home.htm)
U.S. Department of Commerce (http://www.bea.gov/bea/regional/gsp/)
STANDARD OF LIVING
Council of Economic Advisers (http://www.gpoaccess.gov/eop/index.html)
U.S. Department of Labor (http://www.bls.gov/cpi/home.htm)
U.S. Department of Commerce (http://www.bea.gov/)
TRADE LIBERALIZATION
U.S. Department of Commerce (http://tse.export.gov)
Contact: David Thomas
Director, Public Policy
Business Roundtable
202.496.3262
[email protected]
http://trade.businessroundtable.org
January 2010