Oregon’s exports fell by more than $6 billion last year, a staggering 20% drop, erasing two years of historic gains.
“Consumers are leaving, and that’s certainly reflected in export numbers,” said Damon Ramberg, an economist with Business Oregon, the state’s economic development agency.
Federal export data compiled by research organization WISERTrade shows a particularly steep drop in semiconductors, Oregon’s largest export. International chip sales decreased $5.7 million, which accounted for nearly all of the overall decline in international sales.
This coincides with a 5% decline in semiconductor employment in Oregon last year.
The chip industry has skyrocketed due to the pandemic. People are buying new computers to work from home, and other industries, from consumer electronics manufacturers to automakers, need every computer chip they can get to meet stimulus demand for their products. did.
But after the pandemic, stimulus payments dried up and inflation rose around the world, reducing shoppers’ purchasing power. Consumers had new computers and appliances and didn’t need anything more. Semiconductor manufacturers and their customers found themselves carrying excess inventory.
Oregon’s chip exports will decline by 14% in 2022 and by an additional 39% last year.
Other industries reported mixed results. Exports of auto parts and aircraft parts increased significantly, while other industries unique to Oregon, such as beverages, declined.
Taking a step back, Lunberg said this year’s decline in exports is “not really doom and gloom.”
Despite last year’s steep decline, Oregon’s exports were still 7% higher than in 2019, before the pandemic. The state’s economic fundamentals also remain strong by historical standards, with unemployment below 4% and wages rising as inflation slows.
Despite last year’s poor performance, there’s even some optimism for Oregon’s semiconductor industry.
Intel plans a multibillion-dollar expansion to its Hillsboro facility, and more than a dozen other semiconductor companies are also expanding operations in Oregon, funded in part by $240 million in state grants and loans. is planning to expand. They all expect growth in domestic semiconductor manufacturing and a resurgence in global demand.
State economists predict the semiconductor industry will create more than 6,000 new jobs over the next few years.
“This is an important employer for the state,” Ramberg said. “And it has been that way for many years.”
This is Oregon Insight, The Oregonian’s weekly analysis of the numbers behind the state’s economy. Check out past publications here.
— Mike Rogoway covers Oregon technology and the state’s economy. Please contact us at mrogoway@oregonian.com.
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