  |
|
|
MINDING OUR OWN BUSINESS May 13, 2003 by Linda Hirvonen Delta County Economic Development Alliance The Importance of Exporting For many small businesses, a lean economy means looking outside traditional sales territories to increase revenues. International trade offers opportunities for businesses of all sizes to increase their market. After all, 95% of the world’s population and 70% of the world’s income is outside of the United States (fedgazette vol 15, #3). According to the SBA’s most recent data, 97% of all US exporters in 2001 were small businesses. These smalls accounted for about 29% of the US export value. The Federal Reserve of Minneapolis’s fedgazette devoted much of its editorial space of the May 2003 volume to exporting. Their graphic shows that 14 of the 50 states total manufactured exports per capita in 2002 exceeded $2,000. Michigan was in fourth highest in per capita export dollars at $3,252.00, with only Vermont ($3,928), Texas ($4,146) and Washington state ($5,129) ahead of us. Indiana and Ohio were the only other Great Lakes states to exceed $2,000 per person. While Minnesota does not make the per capita list, it is #1 in our region in terms of number of businesses that export (6,688). No data is currently available for the UP. Exporting takes time to develop. Many successful exporters report that they built their export business from just one customer. It takes time to learn to market in different cultures. Exported products must not only fill a demand, but they must be more unique or significantly better than the domestic ones they will be competing with for sales. Stand alone products, for instance, are often more successful on the export market. One must also consider changing economic conditions in the countries of export, and we know it can be difficult enough just to forecast in our own country! Some of the issues facing exporters relate to working with different countries, like trade agreement conditions, tariffs and other taxes. There is often a struggle with fluctuating international currency exchanges, and with getting letters of credit. The most common problems relate to shipping, finding an agent or distributor in other countries, and with documentation that won’t get mired at the borders. Finding local financing for what might be a one-time large order customer is also a challenge, and sometimes it is difficult to find local banks with export experience. Novice exporters also face difficulties in pricing as their own systems are often inefficient, and their costs are higher than anticipated. Foreign patent protection is also an issue for American small business. Help navigating the course of exporting is available. On June 24th the Dickinson Area Partnership is hosting the TradeRoots International Trade Leadership program in Iron Mountain. Cost is just $15.00 and will feature an interactive and informative program on topics ranging from financing to transportation to public and private sector assistance. International advisors from the National Chamber Foundation will be there as well as MEDC, the US Department of Commerce, and Northern Initiatives. Also featured will be two UP businesses, Ross’ Manufacturing of Escanaba and Argonics of Marquette, who are actively exporting. To attend and network with other UP exporters and those interested in exploring the option of exporting, call (906) 774-2002 and make your reservation. Export Assistance is always available from US Department of Commerce. Call Tom Maguire at the Grand Rapids Export Assistance Center at (616) 458-3564. or visit their www.BuyUSA.com site- an international site that brings US and international companies together to export US products and services. The SBA also has export assistance. Visit www.sba.gov or call me (786-2192) for copies of these SBA brochures: Opportunities in Exporting, How to Bank your Export Deals, and Take Your Cue from SBA: Expand your Markets to Russia. Come Grow with Us in Delta County! Linda A Hirvonen, Executive Director Delta County Economic Development Alliance 230 Ludington Street Escanaba MI 49829 (906) 786-2192 or fax (906) 786-8830 |
|
|
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
|
|
           |
 |
||
 |
||
 |
||
 |
||
