Driving the growth of Miami as a hub for the Americas
By Yousra Benkirane
In the early stages of Miami’s development, the region heavily relied on agriculture as a primary economic driver. Consequently, agricultural products constituted a significant portion of what Miami produced, and what it sold as a trade city. These goods were primarily sold domestically or shipped to other parts of the United States.
Over the course of the 20th century, the city’s trade profile slowly became more global, especially following the opening of the Panama Canal in 1914. After the Cuban diaspora of the early 1960s, when half a million Spanish-speaking residents moved to Miami, the city became a major center for importing and exporting goods between the United States and Latin America. Initially, these goods included a diverse range of products such as textiles, consumer goods, and manufactured items.
In recent times, especially over the last decade, Miami has experienced significant growth in its high-tech sector. The emergence of technology-focused industries, such as information technology, telecommunications, and biotechnology, has reshaped
the city’s trade landscape. According to Enterprise Florida, in 2022, Florida was the third-largest exporter of information technology products in the U.S. (after Texas and California) with shipments of $14.4 billion – a 3.9 percent increase from 2021, surpassing pre-COVID numbers. Specifically, computers, integrated circuits, and smartphones have seen a huge increase in their export to Latin America and the Caribbean. “How trade has changed from agriculture exports to high-tech exports is remarkable,” says TJ Villamil, SVP of Enterprise Florida’s International Trade & Development unit.
Four of the top 10 exports from the Miami Customs District are high-tech products, making up more than 30 percent of the dollar value of all exports from the region. Among the most significant technology products moving through Miami are computer and electronic equipment, including smartphones, tablets, and laptops. In 2022, the United States Census Bureau reported that Miami’s computer and electronics product exports totaled over $10 billion. Top 2022 exports include telephones ($4.82B), mostly to Paraguay (21% or $1.01B) and Brazil (13.5% or $649M); computers ($3.91B), mostly to Argentina (16.7% or $652M) and Brazil (15.7% or $613M); and integrated circuits ($1.92B), mostly to Brazil (57.4% or $1.1B).
On the imports side, Asia remains the most important source for tech products
to be redistributed into Latin America and the Caribbean. Most telephones ($2.8B) are imported from China (64.9%) and Vietnam (19%), while goods like integrated circuits ($1.58B) are mostly sourced from Vietnam (35.3%) and Malaysia (26%). The import volume of these products is tied to demand in Latin America.
Miami’s role is more of a middleman regarding the global tech supply chain. According to Alice Ancona, vice president of World Trade Center Miami, Miami companies are not manufacturing or assembling any physical goods themselves, but mostly re-distributing them. “Some are responsible for part of the development of software/ technology but are nowhere near the level of Silicon Valley,” which does most of the manufacturing and assembly in the States, says Ancona.
Miami’s tech trade is expected to continue on an upward trajectory, driven by ongoing investments, collaborations, and the city’s growing reputation as an attractive destination for tech companies. The expansion of high-speed connectivity, the development of smart infrastructure, and the nurturing of a robust talent pool may even encourage companies to start manufacturing in the city.
