Gerardo Nino, a subcontracted electrician for Thomas Russell Co., wires a flow transmitter at the company's plant in Catoosa. Thomas Russell is one of the Tulsa area's major exporters. CORY YOUNG / Tulsa World file
In just 12 years, natural gas plant builder Thomas Russell Co. grew from a Tulsa startup to a $750 million company.
Honeywell International Inc. bought 70 percent of the company last October, giving Thomas Russell even more potential to grow as a major exporter in the Tulsa area.
In fact, companies such as Thomas Russell have been helping Tulsa's ranking as an exporter grow at a rapid pace in recent years.
A report released Tuesday by the Brookings Institution, "Export Nation 2013," shows that the Tulsa metropolitan area exported about $7 billion worth of goods and services last year and is among the fastest growing exporters in the country. The area's export growth rate has been 9 percent a year since the recession officially ended in 2009.
"Tulsa-area manufacturers are taking advantage of a continued weak dollar and really boosting their exports," said Joe Epperley, a spokesman for the Oklahoma Manufacturing Alliance.
The report ranks Tulsa as the 23rd fastest growing metro area for exports from 2009 to 2012. Over the last decade, Tulsa ranks as the 13th fastest growing metro area for exports.
"Of course, Oklahoma's ties to the energy and aerospace industries are driving a lot of that growth in sales to overseas locations," Epperley said.
The report tallies both the goods-producing and service sectors.
In Tulsa, economists credit the energy sector. Exports tied to petroleum and coal led the area with $1.078 billion in value during 2012, a $368.3 million increase over the previous year.
The oil and gas producing industries account for 15.5 percent of all exports, buoyed by a continually high price for fuel. This week, travel club AAA reported that an average gallon of gasoline has cost more than $3 at retail for 1,000 consecutive days nationwide.
Many of the area's largest companies, by value and employees, are in the energy field such as Williams Cos. Inc., ONEOK Inc., and Helmerich & Payne Inc. Contract oil and gas driller Helmerich & Payne, for instance, increased its revenues to $2.5 billion for the first three quarters of its current fiscal year, $200 million higher than the same period a year ago.
The export report looks at what kinds of goods and services are produced in a region, not just what items are shipped in and out. That levels the playing field for Midwestern cities, said Ryan Donahue, a research assistant for the Brookings Institution, a nonpartisan think tank based in Washington, D.C.
The manufacturing sector, especially machinery, is also a major source of income for the Tulsa area. Companies in metro Tulsa manufactured and exported $821 million in general purpose machinery in 2012 and $811 million in agriculture, construction and mining machinery.
Mining machinery includes equipment used in oil and gas drilling, and is a major source of income for hundreds of smaller machine shops and factories in the region.
"But considering Tulsa's reputation, I was surprised to see that petroleum and coal isn't as dominant as you think it might be," Donahue said.
That diversity, he said, sets Tulsa up for more sustainable growth in the future.
The aerospace industry provided a major boost to the area, with Tulsa making $443.4 million in parts. Aerospace also led the service category of the area's exports, with $260.4 million worth of air transportation services, primarily from American Airlines' primary maintenance and overhaul facility at Tulsa International Airport.
Tulsa ranked 49th among the 100 largest metro areas for exports, slightly behind Wichita, which produces $7.67 billion worth of exports a year. Aerospace manufacturing is dominant in Wichita, thanks in part to Spirit AeroSystems, which also has a Tulsa plant.
Oklahoma City ranked as the 59th largest exporting area, with $5.34 billion worth of goods and services sent out last year.
Los Angeles was the country's largest exporter, followed by New York, Houston, Chicago and Dallas.
Comparing region's export markets
Tulsa metro area
Value: $7.0 billion
Rank: 49th
Annual growth since 2009: 9 percent
Biggest industry: Energy products
Wichita metro area
Value: $7.7 billion
Rank: 47th
Annual growth since 2009: 5.1 percent
Biggest industry: Aerospace manufacturing
Oklahoma City metro area
Value: $5.9 billion
Rank: 59th
Annual growth since 2009: 8.1 percent
Biggest industry: Agriculture, construction and mining machinery
Source: Brookings Institution Export Nation 2013
Kyle Arnold 918-581-8380
kyle.arnold@tulsaworld.com
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