Sweet Spot in the US Economy: Exports

March 12, 2010  

Article by Ayse Oge, President of Ultimate Trade LLC

Despite recent financial turmoil and the severe credit crunch, exports increased by 19% in the second quarter of 2008 and real merchandise exports grew by 23% during the 3rd quarter. This export boom was fueled by the weak dollar, which has depreciated nearly 22% against foreign currencies, and made American goods extremely competitive in global markets.

Service exports -comprising education, finance, business and professional services, media, entertainment, foreign tourism and technical services- have been a beneficiary of the export explosion and posted healthy growth.

Export growth has provided clear benefits to the entrepreneurs, owners and workers of firms in export-oriented industries and, more broadly, the U.S. economy as a whole. Exporting firms are typically growing faster and paying higher wages. A growing number of small and mid-sized companies involved in exports have become the main driver of U.S. exports along with their large counterparts in creating jobs in the economy.

B&G Machine Inc., a family-owned Seattle-based diesel engine and components business with less than 50 employees, managed to increase its export business from zero to 35% within the last five years. Johnny Bianchi, the company’s V.P., said the “weak dollar became boon to generate additional overseas revenue.” B&G is currently exporting to Chile, Peru, Canada and Australia. Here are some valuable tips that small and mid-sized businesses can take away from Mr. Bianchi’s successful export venture:

  • Craft appropriate message that will resonate with your international audience.
  • Be proactive in exports, and instead of the shotgun approach, be selective in picking the countries you need to export to.
  • Tailor your products to make them appealing to your global customers.

With the world economy slowing, continued strength in exports is a much-needed panacea to offset the adverse impact of financial problems in the domestic market.

Ayse Oge, President of Ultimate Trade LLC, author of book, “Global Business Guide” she can be reached at Oge@earthlink.net
www.goglobaltowin.com.

Article courtesy of Valley International Trade Association

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