In the past few decades, the global economy has undergone a remarkable transformation. While physical goods once dominated international trade, services exports have emerged as a powerful engine of economic growth. Today, services — from digital technologies and financial advisory to construction and tourism — are reshaping how economies connect with the world. And even in a state like North Dakota, traditionally known for our agriculture and energy, services exports are increasingly part of our story.
The Big Picture: How Service Exports Have Grown
In the latter half of the 20th century and into the 21st, advances in technology made it easier and cheaper to trade intangible goods — services that don’t involve physical products. These include:
- Digital services such as software, cloud computing, and IT consulting
- Professional and business services like management consulting and engineering
- Financial services including insurance and banking
- Travel and tourism
- Telecommunications and data services
This shift has been dramatic. Worldwide, services now account for about one-fourth or more of total trade, with rapid growth driven by digital connectivity and innovation. The International Monetary Fund and other global analysts note that modern services exports have surged as technology allows companies to deliver expertise and digital products across borders without physical shipping constraints — dramatically changing trade patterns.1
In the United States, services exports have become a major pillar of trade. For example, U.S. service exports increased even in recent years, outpacing some segments of goods exports and contributing to a significant trade surplus in services.
Why Service Exports Matter
There are several reasons service exports are so important:
Economic Growth and Jobs
Services exports support well-paying jobs and economic activity. In states across the U.S., including North Dakota, service-oriented companies help diversify employment beyond traditional sectors like farming and energy.
Diversification of Trade
While goods still dominate in many regions, services can reduce reliance on commodity prices or manufacturing cycles. A broader mix of export types often makes an economy more resilient.
Digital Economy Integration
Digital trade — the exchange of services enabled by IT and internet platforms — allows even small businesses to reach global markets. This is reshaping trade opportunities for rural and traditionally goods-focused economies.2
North Dakota’s Growing Role in Services exports
Although North Dakota is often associated with oil seeds and grains, oil, and machinery, services exports are carving out an increasingly visible niche in the state’s trade picture.
North Dakota has seen steady growth in services exports over the past decade. These services, including construction, personnel, recreation, and digitally tradable services, supported thousands of jobs in recent years — with over 4,000 jobs tied directly to services exports, including more than 1,300 from digitally tradable services.3 Canada remains North Dakota’s largest market for service exports, totaling hundreds of millions of dollars and supporting thousands of jobs. Mexico and other markets also contribute notable volumes.3
Our state has increasingly focused on digitally tradable services, including financial services and tech-enabled exports. While traditional ICT exports have declined in some areas, other digitally enabled services like financial and licensing services have grown strongly, showcasing the state’s evolving export mix.2 Our export ecosystem — including the North Dakota Trade Office—helps local companies navigate global markets.4 These services help even small firms access export opportunities they might otherwise miss.
Why This Matters
As global demand for services continues to rise, North Dakota’s role in this sector represents economic diversification and resilience. Service exports not only provide jobs and revenue but also connect our state’s talent and innovation with customers around the world.
By embracing digital trade, professional services, and export-ready support systems, North Dakota is stepping into a new era — one in which its global footprint is defined not just by what it produces, but also by the expertise and services it delivers across borders.
1Services Exports Open a New Path to Prosperity
2USCC_Digital-Trade-Report.pdf
4Trade & Exports | North Dakota State Government – ND Portal