Oregon exports slid precipitously last year as the global recession sapped economic activity and demand for the state's products.
Sales of Oregon goods overseas totaled $14.9 billion last year, down 23 percent from 2008, according to federal data released Wednesday and compiled by the World Institute for Strategic Economic Research in Massachusetts.
That ended seven consecutive years of steady export growth and underscored the depths of a recession that has pushed Oregon unemployment to its highest levels in decades.
Nationally, product exports were down 18.8 percent last year, according to the new numbers.There are optimistic signs in the latest export data, however. Oregon exports -- down more than 30 percent in the first half of 2009 -- were up slightly in the fourth quarter.
And exports grew strongly throughout the year in one category: sales to China. That nation passed Canada as the largest destination for Oregon's goods, reflecting China's growing role in the world's economy.
"Given the global environment, China is the one market that has continued to grow," said Karen Goddin, director of innovation and trade for the Oregon Business Development Department.
Oregon officials are working to link up the state's companies with partners in China and elsewhere, Goddin said, but their expectations are tempered by continued economic weakness around the world.
"We don't expect a robust build out of international trade," she said, "but we'd like to continue, at least, modest growth."
Nearly half of Oregon's exports last year were computer chips and other electronics, which accounted for a bigger chunk of the state's global sales despite continuing decline in Oregon's high-tech employment.
Large Oregon electronics manufacturers, including Intel and Hillsboro-based TriQuint Semiconductor Inc., make their products here and ship them to Asia for inclusion in PCs, smart phones and many other devices.
Intel and TriQuint keep their most advanced production close to the companies' research hubs, which enables them to quickly move new electronics from concept to production and troubleshoot manufacturing problems.
"We need to have it closer to our engineers and (researchers), so they can sort out any issues that come up," said Brandi Frye, TriQuint's director of corporate communications.
TriQuint makes components for wireless communications, and its products have turned up in the iPhone, Kindle and other mobile gadgets. The company said its 2009 sales were up more than 13 percent, and it anticipates a fresh boost from a new class of consumer gadget.
"We are shipping a lot of components for tablet PCs right now," Frye said.
To a large degree, Oregon's export numbers are the story of one company: Intel.
Though Intel's headquarters are in California, the world's largest chip maker has its biggest and most advanced operations in Washington County. It employs 15,300 in Oregon, more than any other business.
Intel suffered a sharp decline in sales during the first half of the year but rebounded quickly as the economic recovery gained strength.
Oregon's numbers moved in the same direction, with a 30 percent decline in electronics exports during the first quarter giving way to a 10.5 percent increase during the last three months of 2009.
Intel sends processors made in Oregon overseas for assembly and testing. And though the company won't discuss its internal supply chain, it has large processing facilities in China and Malaysia, which are now the two largest destinations for Oregon exports.
Overall, the state's exports were down in nearly every category last year, with transportation equipment (down 49 percent), paper (down 44 percent) and wood products (down 31 percent) among the biggest decliners.
Agricultural products, Oregon's second-biggest export category, fell 25 percent last year. In part, that reflects fevered speculation that bid up commodity prices in 2008, according to Brent Searle, an analyst with the Oregon Department of Agriculture.
Wheat and other food crops are now suffering price declines, he said, and the collapse in the real estate market has hurt worldwide demand for grass seed. Oregon farmers have as much as two years of unsold inventory, according to Searle.
"I think it's going to be a slow build back in some of this as the world economy gains its footing," Searle said. "I think our export markets will gradually come back."