Home Back Issues February 2008 Weak dollar a mixed blessing

Weak dollar a mixed blessing

| Print |  Email
Archives - February 2008
Friday, February 01, 2008

t_dollar sign 0980

STATEWIDE There’s a basic rule of thumb when it comes to U.S. industries and a weak dollar: Exporters benefit (their goods are cheaper for other countries to buy), and importers suffer (they pay more for foreign goods).

For Oregon, where exports grew 24% between 2005 and 2006 to $15.3 billion, that should be a good thing. But it’s not that simple. Nor is it a simple question whether the weak dollar — down nearly 11% over 2007 and predicted to drop even further this year — is helping or hurting Oregon.

pdf

e-sources

Oregon's top 25 export industries by dollar amount, 2000-2005

• Oregon's top 25 export partners, 2000-2005, with ranking by percentage of total exports


• Oregon Economic and Community Development Department's analysis of Oregon's foreign exports between 2005 and 2006

Some of the state’s top export industries are riding high. Agriculture products, which make up 10% of the state’s exports, are doing extremely well, says Department of Agriculture spokesperson Bruce Pokarney. “We ship about 40% to the international market. It’s very significant,” he says. The metals and software industries are also strong, according to anecdotal accounts by industry groups.

But exports by the computer and electronic product industries — 40% of the state’s exports — are flat, says state economist Tom Potiowsky. Forest products and transportation manufacturing exporters aren’t benefiting either.

One reason is that no company only imports or exports; the ratio between the two could hurt even the largest exporter. Further complicating the question, says Randall Pozdena — senior economist at ECONorthwest and former vice president of the Federal Reserve Bank of San Francisco — are things such as industry regulations that limit quick response to market conditions, or China’s growth and its impact on manufacturing around the world.

So what does the weak dollar mean for Oregon? There are myriad economic forces and factors at play, making it nearly impossible to say what the weak currency will do.

Pozdena offers one possibility: When the traded-goods sector booms, it pulls resources, like employees, from the non-traded sectors with potentially broad impacts across industries, like job loss. “If you happen to live in an economic community that’s heavily construction-oriented, the sucking sound will be even stronger,” he says.

Potiowsky maintains that, as a whole, the weak dollar isn’t a bad thing. It’s a result of the dollar correcting itself after being at high levels for a long time, he says. “And without us having to do anything, it’s almost like having a productivity gain.”

ABRAHAM HYATT



Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

More Articles

On fire

March 2014
Tuesday, February 25, 2014
BY JESSICA RIDGWAY

A self-proclaimed “chile head,” John Ford “grows, eats and does everything spicy.” 


Read more...

How to boost web traffic

News
Thursday, April 10, 2014
BY JESSICA RIDGWAY  | OB WEB EDITOR

04.10.14 thumb seo-trafficSEMpdx hosted a workshop this week for entrepreneurs, website developers and others interested in search engine optimization (SEO).  Here are a few tips and tricks aimed at bumping up your search engine rankings.


Read more...

Green your workplace

News
Thursday, April 03, 2014
100Green14logo200oxBY OB STAFF

Learn how to green your workplace and lower your environmental footprint at the office. Oregon Business presents a two-hour "Greening Your Workplace" seminar on May 28th, 2014 at the Nines Hotel in Portland.


Read more...

The 2014 List: The Top 34 Medium Companies to Work, For in Oregon

March 2014
Thursday, February 27, 2014

100best14logoWebOur 100 Best Companies project turned 21 this year, so pop open the Champagne. Our latest survey gives us plenty to cheer.

 


Read more...

The more they change, the more they stay the same

March 2014
Tuesday, February 25, 2014
100-best-collageBY BRANDON SAWYER

The 100 Best Companies get more creative with perks and more generous with benefits; employees seek empowering relations with management and coworkers.


Read more...

Eking out a living

News
Tuesday, April 08, 2014
04.08.14 thumb ourtable-coopfarmsBY HANNAH WALLACE | OB BLOGGER

It may be obvious, but most farmers don’t make a lot of money. According to preliminary data from the 2012 Agriculture Census, 52% of America’s 2.1 million principal farm-operators don’t call farming their primary occupation. Farm cooperatives may offer a solution.


Read more...

How to help your staff solve their own problems

Contributed Blogs
Friday, March 21, 2014
03.21.14 thumb coxcoffeeTOM COX | OB BLOGGER

During a recent talk to HR Directors, I asked if they saw leaders trying to solve every problem, instead of delegating to and empowering staff. Every head nodded. Every single one.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS