(Elizabeth Crum/Nevada News Bureau) – Nevada is the fastest growing state in export value as a share of its total economy, according to a new report by the U.S. Chamber of Commerce.
The value of the state’s manufactured exports has more than tripled since 2002. Its primary exports are mineral deposits, coin-operated games and electronics.
Other states rated highly for exporting are Louisiana, Utah, South Carolina, Mississippi, Delaware, and Texas.
High performing states were evaluated based upon:
- The value of exports as a share of total economic output and change in that value
- Change in a state’s share of the nation’s total exports
- Overall export growth since 2002
One out of three manufacturing jobs in the U.S. is due to foreign exports. In some states, exports of manufactured goods have now outpaced domestic sales.
Exports are not solely the province of big companies as is commonly believed. Ninety-seven percent of U.S.-manufactured exports emanate from factories operated by small and mid-sized manufacturers.
More than a quarter million of America’s small businesses export products, and they account for nearly one third of U.S. merchandise exports.
Many states including Nevada promote the expansion of exports either through an independent trade office or as part of an in-house component of their economic development agency.
In order to support trade activity by Nevada companies, the state offers several programs and support services through its division for Global Business Development.
Nevada maintains a network of independent trade representatives around the globe, in locations including Shanghai, Beijing, Hong Kong, Germany, Brazil and Italy. The state is currently seeking to expand the network to Spain and the United Kingdom, in order to register increased trade with new markets.
These independent representatives work on contract with the state to support outreach by Nevada companies in their countries, while acting as points of contact for foreign firms exploring potential investment and expansion opportunities in Nevada.
Attracting foreign buyers
The state also hosts inbound buying missions where foreign buyers are brought to Nevada and connected with local companies.
Nevada also works with local development agencies to coordinate efforts to attract foreign direct investment, as well as working with the federal government to identify and support foreign companies interested in establishing operations in the state.
Ongoing efforts to designate the Las Vegas Convention Center as an official World Trade Center finally came to fruition early this year, giving the state a high profile name with which to attract international corporations.
The Consumer Electronics Association (CEA), based in Arlington, VA, obtained the rights to the World Trade Center name from the New York-based World Trade Centers Association, and chose the Las Vegas Convention Center as part of its expanding partnership network.
The Las Vegas Convention and Visitors Authority hopes to increase international visitation by 25 percent over the next five years.
Las Vegas currently attracts about 5 million business travelers per year.
Incentives and tax breaks
Nevada’s job creation efforts are supported by incentives and an enterprise-friendly tax code.
Nevada has no corporate income tax, personal income tax, franchise tax on income, estate tax, or gift tax.
While the state collects a sales and use tax, businesses are eligible for sales and use tax abatements and deferrals. The abatements are applicable to purchases of capital equipment, offering reduced taxes to companies that meet job creation and wage provision thresholds.
Nevada has also targeted tax abatements at intellectual property development businesses. Under terms of the program, such companies are eligible for breaks in sales, modified business, and personal property tax bills if they meet job creation and investment requirements.
In order to support conservation of energy and adoption of substitutes for fossil fuels in the state, Nevada also offers tax abatements to businesses that recycle materials, including for power generation.
Nevada maintains two foreign trade zones, in Las Vegas and Reno, in partnership with the federal government. These zones allow businesses access to expedited customs processing and decreased duties and excise taxes.
Nevada continues to promote access to foreign trade shows for businesses in the state interested in export possibilities, targeting markets in Asia, Europe, and the Middle East.
The state also hosts workshops designed to train Nevada entrepreneurs about the challenges and opportunities faced when accessing foreign markets.
The Nevada District Export Council is another program offered in affiliation with the federal government, providing trade support services to small and medium-sized businesses in the state.
The Council offers entrepreneurs access to trade-savvy volunteers for one-on-one advisory services, offers training sessions and seminars on trade-related issues, hosts trade missions visiting the state, and helps businesses exploring trade opportunities gain access to needed financing.