The value of goods and services exported from metropolitan Toledo surged by more than 41 percent last year, setting a record and making the region one of the fastest-growing export markets in the country.
Government data show metro Toledo’s exports totaled more than $4.7 billion last year, up $1.4 billion from 2013.
“Pretty much anywhere you can imagine, we have companies selling there right now and doing well,” said Colleen Kardasz, director of the International Trade Assistance Center at the Toledo Regional Chamber of Commerce.
Overall, metro Toledo ranked 62nd in the United States for total exports last year, just behind Denver, Buffalo, and Gulfport, Miss.
Houston and New York City led the list as the only metros to top $100 billion in exports. Detroit was fifth, though it recorded a small decline from 2013 to 2014. At $22.3 billion, Cincinnati was tops in Ohio and 14th in the nation. Toledo was fourth in Ohio, also trailing Cleveland and Columbus.
However, metro Toledo’s 41 percent growth was the third-best growth among the top 100 U.S. metros. Only No. 49 Charleston, S.C., and No. 84 Longview, Wash., showed stronger growth.
Toledo’s success does not appear to be a one-year flash in the pan. Last year was the fifth consecutive year of higher exports, and metro Toledo’s exports have risen by 169 percent since 2005 — by far the best in the state.
Experts say a number of things have contributed to that growth.
One key element is Toledo’s geography. With access to major rail lines and intermodal facilities, a Lake Erie port, and two main U.S. highways, it’s easy to get goods out of northwest Ohio.
The region also has a well-established support system that can help foster overseas growth, said Paul Zito, vice president of international development at the Regional Growth Partnership. Mr. Zito also cited the work of programs such as the trade assistance center at the chamber for helping small and midsized companies develop export plans.
The government’s report did not detail specific products. In general, however, officials said transportation equipment, agricultural products, and machinery were among the top categories.
“The Toledo area is kind of where agricultural commerce meets manufacturing,” Joe Cappel, vice president of business development at the Toledo-Lucas County Port Authority, said. “We have a lot of corn, and wheat, and soybeans that leave the Port of Toledo and go out all over the world actually. We’re seeing soybeans go as far as Asia and Northern Europe.”
The data also include exported services, such as a local graphic design company that produces a logo for a foreign business.
For many companies, international sales have become an important form of diversification after the recession. For example, a company that historically has sold clamps to the automotive industry might look to Mexico’s growing aerospace industry as a way to diversify, Ms. Kardasz said.
“To not look internationally at this point could be potentially detrimental to a company,” she said. “You’re ignoring a very large number of potential customers. It’s not for everyone; it’s not going to work for every company, but it’s definitely worth exploring.”
Thomas Sharkey, a professor in marketing and international business at the University of Toledo, said the report reflects well on the region.
“Exports are critical to how a community is doing, and also foreign direct investment is important as well. The danger of taking one number at one point in time is always a problem ... but if you’ve got a nice trend where the number is going up over time, I think that’s very, very positive,” he said.
One concern on the horizon, though, is the strength of the dollar versus foreign currencies. Mr. Sharkey also is watching the relative slowdown in China’s economy.
“You’re always concerned about sustainability,” he said. “Can we sustain this into the future and can companies that are exporting sustain this into the future.”
Contact Tyrel Linkhorn at tlinkhorn@theblade.com or 419-724-6134 or on Twitter @BladeAutoWriter.
First Published July 21, 2015, 4:00 a.m.
