Connecticut Exports Increase $500M in 2023

07.23.2024
Economy

Connecticut commodity exports increased 3.2% to $15.85 billion in 2023 amid notable shifts in the state’s trading partners.

U.S. Department of Commerce data indicates companies exported $494 million more in goods in 2023, with six of the state’s top 10 export markets posting increases.

That increase ran counter to overall U.S. exports, which fell 2.3% to $2.02 trillion last year with the top five exporting states all posting declines.

Connecticut exports have yet to fully recover from pandemic disruptions, with 2023 shipments about $879 million (-5.4%) below 2019 levels.

CBIA’s Chris DiPentima noted that companies were navigating a series of domestic and international challenges, including inflation and high interest rates, ongoing tensions with China, the Ukraine war, and disruptions to important trade and shipping routes.

“Connecticut companies are showing their ingenuity and resilience, posting an increase of almost half a billion dollars in commodity sales despite some major obstacles both at home and abroad,” he said.

Export Markets

Canada overtook Germany as the state’s largest export market in 2023, with commodity sales increasing $48 million (2.3%) to $2.12 billion.

Exports to Germany increased $3 million to $2.1 billion, while shipments to the Netherlands jumped $110 million (10.6%) to $1.15 billion as that country overtook the United Kingdom for third place.

United Kingdom commodity shipments posted a dramatic decline last year, falling $266 million (-19.5%) to $1.1 billion amid ongoing post-Brexit regulatory challenges and inflationary concerns.

Connecticut exports to Mexico fell $63 million (-5.5%) to $1.07 billion, while shipments to France declined $37 million (-3.4%) to $1.06 billion.

Top 2023 Connecticut Export Destinations
Canada overtook Germany as Connecticut’s largest export market in 2023.

Exports to China grew 11.5% ($102.1 million) to $990 million, by 30.5% ($136.2 million) to Singapore, and by 2.3% ($10.9 million) to South Korea.

Japan fell from eighth to Connecticut’s 10th largest market last year, with commodity sales declining modestly to $475 million.

Mexico is Connecticut’s largest trading partner, accounting for $9.17 billion of the $37.23 billion in goods the state imported in 2023.

Germany shipped $7.25 billion in goods to Connecticut last year, followed by South Korea ($5.98 billion), Canada ($5.57 billion), and China ($5.28 billion).

Top Commodity Exports

More than 4,600 Connecticut companies—89% small or midsized firms—export goods, with commodity exports accounting for 4.7% of the state’s GDP last year.

The export sector supported 50,705 jobs—about 3% of the state’s workforce—in 2021, the latest available year for employment data.

Connecticut’s top 10 commodity exports in 2023 were:

  • Aircraft, spacecraft, and parts: $4.75 billion, up 0.9% from 2022
  • Industrial machinery, including computers: $3.76 billion (+16.4%)
  • Electric machinery: $1.53 billion (+18.5%)
  • Optic, photo, medical equipment: $1.29 billion (-3.6%)
  • Special classification provisions: $663.25 million (+44%)
  • Plastics and articles: $542.84 million (+0.02%)
  • Miscellaneous chemical products: $218.27 millon (-18%)
  • Iron or steel articles: $207.78 million (+10.6%)
  • Inorganic chemicals: $183.45 million (-15.2%)
  • Iron and steel: $181.87 million (-26.1%)

Regional, National Numbers

Connecticut ranks 29th nationally for exports and is the number two exporter in New England behind Massachusetts, which shipped $35.3 billion in goods last year, an increase of $2.67 billion (+8%).

New Hampshire exports increased $273 million (+3.7%) to $7.62 billion, with Rhode Island posting a $122 million increase (+4.2%) to $3.01 billion.

Maine commodity exports fell $493 million (-14.2%) to $2.97 billion while Vermont saw a $511 million decline (-20.4%) to $1.99 billion.

Overall, New England’s commodity exports increased 3.88% last year to $66.64 billion, with Canada, Germany, Belgium, China, and Mexico the top five markets.

Connecticut ranks 29th nationally for exports and is the number two exporter in New England behind Massachusetts.

Canada and Mexico remained the top two destinations for U.S. exports, with China, the Netherlands, and Germany rounding out the top five markets.

Mineral fuel, oil, bitumen substances, and mineral wax; industrial machinery; electric machinery; vehicles; and aircraft, spacecraft, and parts represented the top five U.S. exports.

Texas was the top state for exports in 2023, although its commodity shipments fell 8.2% to $446.21 billion.

California exports declined 3.9% to $178.84 billion, followed by New York (-8.4%; $100.05 billion), Louisiana (-18.5%; $99.37 billion), and Illinois (-0.1%; $78.85 billion).

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