The pandemic has impacted all parts of the world and every sector of industry. The World Center Miami continues to monitor the current situation and report back to you on recent projections as well as inform you on the movement of trade.
The pandemic has impacted all parts of the world and every sector of industry. The World Center
“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity…”
As the world gets ready for some type of reopening and what will be the new “normal”, travel and tourism is on top of everyone’s mind.
COVID-19 has put the global food supply chain to the test. While there have been challenges, the sector has and continues to adapt and deliver food supplies to our homes, local supermarkets and around the world.
As the coronavirus changes the face of our planet and how our fashion community operates, the Fashion Business Association of America is working with our global leaders in supporting a new beginning for the fashion and retail industries around the world.
"Commercial airlines have radically reduced passenger flights, but passenger planes that are still flying also carry freight, as they normally do. Also, air freight traffic through MIA is very active."
- Ivan Barrios, President & CEO, World Trade Center Miami
"There is a massive global demand for pandemic related products, so supply chains are bending and transforming in ways they have never been bent before. We are undergoing an extraordinary and epic shift in demand."
- Alice Ancona, Senior Vice President & COO, World Trade Center Miami
“Manufacturers and shippers are going to increasingly focus on products that are in need, saying “some manufacturers are either going to voluntarily shift, or the government is going to ask them to shift.”
Begging forgiveness from Gabriel García Márquez, trade has recently gone through a rather extraordinary shift.
Covid-19 pandemic has been the ultimate disruptor for trade. We really can’t compare – apples to apples – with any other period in time.
Below are some highlights of year-to-date (YTD) data for Florida for February. March trade data will be released in a couple of weeks and will be very telling. Be sure to check back with us for a trade update when those figures come out.
For Feb YTD we are up in imports by 3% in value. Origin exports are up by 3.41% in value. Its important to note that China was closed for production and some of the products where we see an increase have been traditionally sourced from China.
Off the bat – top import and import percentage increase for Florida is organic chemicals which have medical, pharmaceutical, biochemical, or bioengineering applications. In Feb 2019 we imported $83.5M but in Feb 2020 we imported $1.59B about a 1,800% increase.
IMPORTS
Products | Feb 2019 vs Feb 2020:
| Notable decreases | Other notable increases |
| (Some of this is demand related. Another thing to keep in mind is that factories were closed in China so we could not source either)
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73% increase in cereals 29% increase in edible preparations which include: yeasts, prepared baking powders, sauces and preparations, condiments, seasonings, soups, broths, ice cream 28% increase in milling products (products like starch and gluten used to make bread and baked goods, etc.) 26% increase in edible vegetables 21% increase in sugar and sugar confectionery |
Trading Partners | Feb 2019 vs Feb 2020:
| Up by 1,500% - Ireland is Florida’s 20th ranked import trade partner. This is unusual increase and likely COVID-19 related. Ireland exports pharmaceuticals and medical devices. Half of the world’s ventilators are made in Ireland. Notable increases are organic chemicals and iron or steel. |
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| Up by 105% - UK is Florida’s 11th ranked import partner. This was also an unusual increase and likely COVID-19 related. UK is a producer of pharma, med-tech and medical devices. Notable increases are organic and inorganic chemicals and medicaments. |
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| Up by 105.7% - Hungry. In value this not a huge leap from $23M to $47M and Hungry is not a top 50 import trade partner for Florida. This increase is unusual as its likely COVID-19 related. Hungary’s primary exports are Packaged Medicaments which are also known as medicine, antibiotics, penicillin, insulin, and other related items. |
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| Up by 41% - Netherlands. The Netherlands is Florida’s 26th ranked import trading partner (not high ranked). This also likely COVID-19 related, notable increases are in fish and seafood and resins and other extracts which can be used in the production of medicaments |
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| Up by 34.5% - Vietnam. Vietnam is Florida’s 12th ranked trading partner. They are an alternative manufacturing center to China so once Chinese factories were closed, we shifted to importing from Vietnam. Much of what we import is furniture, electric machinery and footwear. This is likely ordered from before and may also be attributed to tariffs imposed on certain products in China. |
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| Down by 23.8% - China is our #1 source of imports (like many other states). Note that China was closed January and February and has recently restarted production. |
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| Down by -18% - Japan - #2 ranked import partner for Florida. Top imports include automotive (vehicles and parts) and electronics. |
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| Down by -46% - Brazil is Florida’s 3rd ranked import trading partner. Top imports are aircraft and aviation equipment. |
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| Down by -22.7% - France – Florida’s 8th ranked import trading partner. Top imports include aircraft and aviation equipment. |
Florida Origin Exports TO THE WORLD
(products that Florida makes):
Products | Feb 2019 vs Feb 2020:
| Notable Increases: | Notable Decreases: |
| Up 140.9% - Live Animals Up 62.7% - Iron & steel Up 39% - Pharma Up 38.45% -Aircraft parts Up 26.7% - Inorganic Chemicals Up 17.8% - Beverages and spirits |
Down by 28% - Fertilizers Down by 21% - Arms & Munitions Down by 17% - Chemical Products Down by 14% - Ships & boats Down by 8.6% - Electrical Equipment |
Trading Partners | Feb 2019 vs Feb 2020:
| Up by 62.59% - Japan. Notable increases: 4,000% increase in fertilizer, 480% increase in paper and paperboard, 390% increase in boats and ships. |
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| Up 50.46% - UK. Notable increases: 11,000% increase in seeds and plants, 1,800% increase in footwear, 600% increase in manufactured articles (such as household goods). |
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| Up by 47% - Italy. Notable increases: 3,800% increase in fruits and vegetables, 3,000% increase in meat, 1,900% increase in woven fabrics. |
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| Up by 44% - India. Notable increases: 12,000% increase in articles of leather, 10,000% increase in mineral oil, 2,400% increase in aircraft and aircraft parts. |
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| Up by 29.78% - El Salvador. Notable increases: 1,700% increase in precious and semiprecious stones and metals, 800% increase in special woven fabrics. |
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| Up by 364% - New Zealand (very unusual). Notable increases: 2,400% increase aircraft and aircraft parts, 1,400 % increase apparel, 600% increase in inorganic chemicals as well as articles of iron and steel, 334% increase pharmaceuticals. |
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| Up by 178% - Egypt (very unusual) Notable increases: 4,500% increase in paper and paperboard, 3,700% increase in dairy products, 620% increase in electric machinery, 300% increase in Florida exports of medical equipment. |
Export markets that were down are:
| Down by 26% - China |
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| Down by 22.8% - Paraguay | |
| Down by 24% - Argentina |
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| Down by 14% - Mexico |
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| Down by nearly 10% - Chile and Germany |
The COVID-19 pandemic has made terms like PPE and N95 masks common household lingo. In the past few weeks, we have all learned a lot about things which we once took for granted.
Regardless of where anyone stands on the trade-war with China, COVID-19 has made it acutely clear that localizing or regionalizing supply chains for the medical equipment and pharma sector is vital and can save lives.
From a Miami and Florida standpoint, this is not science fiction, it is achievable.
Consider this: Florida is home to the nation’s:
- 2nd largest pharmaceuticals and medicine manufacturing industry
- 2nd largest medical device manufacturing industry
- 5th largest biotech R&D facilities
Many of these facilities are located here in Miami/South Florida.
We have a tremendous eco-system of companies that are best-in-class. These companies not only need our support today to weather this recession, they need investment in the sector to ensure that we can source and supply our community, the nation and the world.
Download Enterprise Florida’s Life Sciences Industry Brief here.