A sharp and unexpected drop in semiconductor sales to Asia kept a lid on Colorado export growth last year, according to recently released international trade numbers.
Exports from Colorado to all countries grew 2 percent last year, rising from $6.65 billion in 2004 to $6.78 billion in 2005, according to the Massachusetts-based World Institute for Strategic Economic Research and the World Trade Center Denver.
The increase was much lower than the 8.9 percent jump in Colorado exports in 2004.
Exports of semiconductors and other integrated circuit products fell by a third to $763 million. That showed up as double-digit drops in Colorado-made products shipped to South Korea, Malaysia, Taiwan, Singapore and the Philippines.
“The semiconductor market has been a little soft, and our producers are taking a hit,” said World Trade Center Denver president Jim Reis.
The decline was big enough to remove semiconductors as the state’s chief export. Computer equipment and data-storage devices now hold that title.
Reis thinks one of the state’s larger semiconductor plants may have shut down or revamped its product lines, but the big chipmakers have declined to confirm that.
“From a semiconductor fabrication point of view, last year was a growth year in Colorado Springs,” said Craig Schwechel of chipmaker Atmel Corp.
Intel is expanding capacity in Colorado Springs, but that move didn’t require shutting down production, said Kara Roberts, vice president of business retention and expansion with the Colorado Springs Economic Development Corp.
A big surge in demand from Mexico and Australia and a late-year comeback in purchasing by mainland Chinese buyers kept Colorado exports from declining overall.
Exports to Mexico surged 23.2 percent, driven in part by consumers there for Colorado beef, Reis said. That demand absorbed some of the blow from several bans against U.S. beef still in place in Asia because of concerns over mad cow disease.
Colorado exports to Australia jumped 58.3 percent in the state after a free-trade agreement with the U.S. was implemented at the start of last year.
The Aussies were big buyers of photographic plates and films produced by Kodak in Windsor, Reis said. They also opened up trade offices in Denver and Colorado Springs.
“It is a two-way street. Everybody is winning in this,” said Angela Lowrey, a spokeswoman with the Australian Trade Commission in Washington, D.C.
Colorado manufacturers also benefited from increased demand in emerging markets, primarily Brazil, up 43.3 percent; India, up 36.5 percent; and Thailand, up 14.6 percent.
Staff writer Aldo Svaldi can be reached at 303-820-1410 or asvaldi@denverpost.com.
