Alabama companies exported goods and services worth more than $27.4 billion in 2023, setting a new annual record for the second consecutive year and underscoring the resilience of the state’s economy.

The value of last year’s exports rose 6% from the previous year’s total of $25.5 billion, according to data from the Alabama Department of Commerce. Compared to 2020, when international trade was disrupted by the pandemic, the value of Alabama’s exports has jumped almost 43%.

Last year’s record exports were driven by rising overseas shipments of Alabama-made vehicles, aerospace parts, minerals and metals, the data indicates.

“Exporting acts as a fundamental economic pillar that supports growth in Alabama, sparking both new investment and job creation here at home,” Gov. Kay Ivey said in announcing the latest figures. “The record-breaking success of our exporters extends the reach of the ‘Made in Alabama’ brand while reflecting the high level of demand for our homegrown products.”

Alabama exports went to 190 countries in 2023, from the world’s biggest economies to tiny locations such as the Solomon Islands, Palau and Gibraltar.

The top destinations for Alabama exports last year were:

1. Germany: $5.1 billion (up 17%).
2. Canada: $3.9 billion (down 2%).
3. China: $3.8 billion (up 15%).
4. Mexico: $3.2 billion (up 16%).
5. South Korea: $1.2 billion (up 15%).

Other leading destinations for Alabama exports in 2023 were Japan, Brazil, Poland, India and Saudi Arabia, Department of Commerce data shows.

“This second consecutive record year for exports really highlights the fact that companies across Alabama continue to provide top-quality goods and services that are sought by customers worldwide,” said Ellen McNair, secretary of the Alabama Department of Commerce. “Looking forward, the potential for greater export growth is there, and we are already exploring new and expanding markets for Alabama companies.”

Trade data shows Alabama’s 2023 exports exceeded $27.4 billion, eclipsing the prior annual record of $25.5 billion set in 2022. (Alabama State Port Authority)

Powering gains

Overseas shipments of motor vehicles powered the surge in Alabama exports in 2023, reaching a record annual total of $11.5 billion, a gain of nearly 28% from the prior year. Germany, China and Canada were the leading destinations for Alabama automobiles, data shows.

Overall, transportation equipment, which includes motor vehicles, auto parts, ships and aerospace products, remained Alabama’s No. 1 export category, totaling $14.8 billion. Exports of aerospace products and parts topped $2.1 billion last year, a rise of 23% from the previous year.

Other categories registering more than $1 billion in exports during 2023 were minerals and ores ($2.2 billion), chemicals ($2.2 billion) and primary metals ($1.8 billion), according to Department of Commerce data.

“It’s really rewarding to see the hard work of our Alabama companies,” said Christina Stimpson, director of the commerce department’s Office of International Trade. “Their dedication, despite geopolitical challenges, is what has allowed us to see a second year of record-breaking success.

“When our companies find opportunities overseas, it creates a real impact in strengthening our local communities,” Stimpson said. “Growth in exports means growth in our economy.”

Last year’s record Alabama exports were driven by rising overseas shipments of Alabama-made vehicles, aerospace parts, minerals and metals. (contributed)

Export Alabama

The Office of International Trade offers resources to help Alabama companies enter profitable new overseas markets through trade and business development missions, training, foreign-market information and international contacts.

The office is a partner in Export Alabama, a network of international trade agencies that share the fundamental objective of helping Alabama companies expand their business internationally.

This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website.