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FOR IMMEDIATE RELEASE:                                       March 16, 2006

FOR MORE INFORMATION CONTACT:              
Brian R. Gilmore, Executive Vice President - Public Affairs
E-mail: brg@aimnet.org or
Kristen Rupert, Executive Director
E-mail: Alliance@aimnet.org
Website: www.aimnet.org/maib

Media Advisory:

2005 A Banner Year for Massachusetts Exporters

Boston, Mass. The Massachusetts Alliance for International Business (MAIB), a research and educational foundation affiliated with Associated Industries of Massachusetts to help businesses succeed in a global economy, reported today that Massachusetts manufacturers set a new record of exporting merchandise to international markets in 2005 at $22.0343 billion, surpassing the previous high reached in 2004.

Instruments at $4.7 billion took the top spot among export sectors, edging out 2004's leader, electric machinery ($4.5 billion), with long-time bellwether industrial machinery third at $3.1 billion. In other sectors, pharmaceutical products ($2.8 billion) gained 36% in 2005, doubling international sales over the past two years. Organic chemicals at $1.1 billion rounded out the top five industries.

2005 also saw plastic products rebound to $1 billion in exports, giving the Bay State six billion-dollar export sectors for the first time. These industries together accounted for 79% of the Commonwealth's merchandise exports last year.

Among the leading export markets for Massachusetts products, the Netherlands ($3 billion) knocked Canada at $2.9 billion from the top spot for the first time. Germany ($2.1 billion), Japan ($1.8 billion), and the United Kingdom ($1.6 billion) were also billion-dollar-plus markets. Mainland China was the state's sixth largest export market at $882 million, and adding in Hong Kong (reported separately) brought total sales to $1.3 billion.

The state's top export markets include our two NAFTA partners, four nations in Europe, and four in Asia (three of the next four were also Asian). This situation reflects a continuing diversification of markets, away from slower-growing North Atlantic economies into more rapidly expanding areas.

Commenting on the 2005 trade figures, Kristen Rupert, MAIB's Executive Director said, "Since Massachusetts exports grew only by about one percent while the national exports expanded ten times as fast, the Bay State dropped from ninth to tenth among exporting states. This comes, however, after two years in which Massachusetts growth far outstripped the national average."

In a related issue, Rupert also noted, "The Port of Boston continued to see a steady rise in the amount of cargo handled in Boston shipped to and out of the port - totaling 1.45 million short tons." Moreover, Rupert said, "With MassPort undertaking aggressive steps to meet the increasing demand with infrastructural improvements at Conley Terminal along with other sites, including the dredging of Boston Harbor, the Commonwealth is well positioned for further growth."  

Data provided by World Institute for Strategic Economic Research (WISER) at Holyoke Community College, Holyoke, MA.