Why Exporting Makes Sense
· More than 70 percent of the world’s purchasing power—and 95 percent of its population is outside the U.S. So if a U.S. business is only selling domestically, they are reaching just a small share of potential customers.
· Free trade agreements, together with convenient international shipping and transportation, the Internet, and U.S. Government programs and partnerships have opened doors to exporting, especially for small and medium-sized U.S. businesses.
· If a U.S. company is not exporting, it’s highly likely its competitors are or will be selling internationally. Exporting enables companies to diversify their portfolios so they can weather changes in the marketplace, and continue to grow and become more competitive.
· Top markets for U.S. exports in 2008 were Canada, Mexico, China, Japan, Germany, United Kingdom, the Netherlands, South Korea, Brazil, and France.
Exporting Has a Positive Impact on the U.S. Economy
· In 2008, U.S. exports of goods and services grew by 12 percent to $1.84 trillion. Manufactured exports were $1.1 trillion, or 86 percent of total good exports ($1.3 trillion).
· U.S. exports support nearly 6 million American jobs.
· According to a study published by the Institute for International Economics, U.S. companies that export grow faster and are nearly 8.5 percent less likely to go out of business than non-exporting companies.
· Small businesses create 70 percent of the new jobs in America – helping these firms grow by selling internationally is important to our economy.
Smaller Companies Have Vast Untapped Export Potential
· In 2006, there were nearly 246,000 identified U.S. exporters. Yet, only a very small percentage of all U.S. businesses export.
· Small and medium-sized companies account for 97 percent of U.S. exporters, but represent less than one-third of the known export value of U.S. goods’ exports.
· Nearly 60 percent of all exporters only sell to one foreign market, so many of these firms could boost exports by expanding the number of countries they sell to.
· Nearly three-quarters of exporters have fewer than 20 employees.
· Many smaller businesses are so busy running their day-to-day operations that they don’t consider their export potential. Oftentimes, companies think exporting is too burdensome, or are not aware of export and financing services offered by the U.S. Government.
U.S. Businesses Go Global with the U.S. Commercial Service
· The U.S. Commercial Service helps U.S. companies export and protects American business interests abroad, operating a seamless worldwide network of offices located in more than 100 U.S. cities and in American embassies and consulates in nearly 80 countries.
· The Commercial Service’s end-to-end export solutions help smaller firms increase profits and lower risks. Companies can benefit from export counseling, customized market research, pre-screened business appointments abroad through matchmaking services, international contacts and trade leads, advocacy, and participation in trade shows and the International Buyer Program.
· Last year, the U.S. Commercial Service helped facilitate more than 12,000 export successes worth nearly $70 billion in U.S. export sales, supporting jobs across the country.
· For more information, contact ITI or to locate the nearest Commercial Service office at www.export.gov, or call the Trade Information Center at 1-800-USA- TRADE.
