International Business and Trade

Foreign Direct Investment (FDI) in Alabama

Alabama has 411 companies representing 30 countries. Germany, Japan, South Korea and Canada have the largest foreign presence. From 2000 to 2010, some 65,000 of jobs equal to a capital investment of $19 billion were created by new and expanding foreign-based investment in Alabama.

International Trade in Alabama

Alabama’s international trade is fulfilling its promise as a key factor in sustaining the state’s economy.  In 2009, Alabama exports totaled $12.4 billion with global demand generating more than 230,000 jobs for Alabama citizens. The state shipped products to 187 countries last year with the top five destination markets being Canada, Germany, China, Mexico and Japan. Canada gained the top export destination for Alabama products, a position it had not held since 2005.  Adding Mexico, the state’s fourth top export destination, which comprises the North American Trade Agreement (NAFTA) partners, $3.287 billion or 27 percent of Alabama’s total exports were shipped to these two countries. 

Almost all countries registered a decline in exports due to the recession, except for Russia, which is ranked No. 8 and posted an 11 percent gain from 2008 to 2009. Five industries accounted for 66 percent of Alabama’s total shipments abroad in 2009; transportation equipment ($4 billion), chemicals ($1.4 billion), minerals and ores ($1 billion), forestry products ($1 billion) and agriculture ($989 million). Strategic sourcing is a proven best practice and is included in many of Alabama companies’ procurement strategies. During 2009, Alabama imported $17.1 billion worth of goods. Top imports included mineral fuel, industrial machinery, apparel, vehicles and aircraft.

International trade opens an array of opportunities for Alabama companies. The state’s exports are playing an essential role in powering output, employment and profits for the economy.  Trade is vital for sustaining a strong economy and more importantly sustaining competitive products built in Alabama.

Port of mobile

The Port of Mobile is the nation’s thirteenth largest based on tonnage, ahead of Savannah, Baltimore and Tampa. The facility has 41 berths, five miles (eight kilometers) of waterfront, a main channel depth of 45 feet (13.7 meters), and a cargo handling area consisting of 4 million square feet (1.2 million mP2P).  Click here to read more about the Port of Mobile.

 

Foreign Trade Zones

Birmingham, Dothan, Huntsville, Mobile and Montgomery have foreign trade zones with direct access to their air transportation systems. Each foreign trade zone has been designated for the promotion of international commerce through the duty-free, quota-free entry of foreign goods under U.S. Customs supervision.