North Dakota's exports saw double digit increases again in 2008, but a sluggish global economy will have an impact in early 2009, officials say.

"The global crisis didn't really hit us until November, October,"said Susan Geib, head of the North Dakota Trade Office.

The state saw a 35 percent increase in export sales in 2008, up to $2.7 billion from just over $2 billion in 2007, according to reports.

Machinery manufacturing continued to lead the export charge, but decreased demand for the state's key products, such as Bobcat Co. skid-steer loaders, are already affecting North Dakota companies. Bobcat has reduced its workforce at least two times in the past six months, citing slow movement of its construction machinery.

"Bobcat is in a state of flux, and they are also a significant portion of our export volume,"Geib said.

Machinery manufacturers exported more than $1 billion worth in 2008, according to reports.

Oil and gas extraction had the most significant positive change in 2008, increasing export dollars by 243 percent over 2007; tobacco and beverage products increased 160 percent for the same time period.

Geib said she doesn't expect to see such significant growth for 2009, at least not in the first quarter.

"A significant number of our exports is equipment,"she said, to countries such as Russia and Ukraine.

But those countries have been hit hard by the global economic crisis, Geib said; trade financing has dried up and equipment exports must find new markets to stay afloat.

"Anybody in the farm equipment category selling to Russia or Ukraine is probably going to be hit,"Geib said. "There's just no financing for them."

Geib is encouraged by several other markets, however. She said countries are beginning to come to North Dakota for dairy and beef, and that seed varieties, environmental technologies, aviation and medical emergency equipment also is experiencing growth.

The Trade Office is heading a mission to South Africa this month, and is looking at new countries, such as Kazakhstan.

"Developing a new market takes time,"Geib said.

(Reach reporter Crystal R. Reid at 250-8261 or at crystal.reid@bismarcktribune.com.)

Annual export change in North Dakota

2007 to 2008: 35 percent increase

2006 to 2007: 35 percent increase

2005 to 2006: 27 percent increase

2004 to 2005: 17 percent increase

2003 to 2004: 19 percent increase