Posts Tagged ‘small business’

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“E” Award Winner’s Vehicles Save Lives and Support Exports

May 21, 2013

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Brian Larkin is a Presidential Management Fellow serving in the International Trade Administration.

First Priority exports emergency vehicles like ambulances and fire trucks around the world, with help from the International Trade Administration.

First Priority exports emergency vehicles like these around the world, with help from the International Trade Administration.

This week, the Department of Commerce hosted the 51st Annual President’s “E” Awards. During the ceremony, 57 American companies and organizations from 22 states were honored for their contributions to increasing our nation’s exports.

One of the winners was First Priority Emergency Vehicles, a New Jersey-based manufacturer of firefighting, medical, and other emergency vehicles and equipment.

“It is quite an honor to be a recipient of a 2013 President’s ‘E’ Award,” says First Priority President Robert J. Freeman.

“Our belief is that small businesses like First Priority have an important role to play in supporting President Obama’s National Export Initiative, growing our economy, and creating vital manufacturing jobs in the U.S.”

First Priority’s experience demonstrates both how the International Trade Administration (ITA) supports U.S. exporters and how a small business that takes a thoughtful, customer service-oriented approach to foreign sales can thrive.

Like other “E” Award winners, First Priority has found ITA to be a valuable partner. Mr. Freeman says that dedicated trade specialists, like Thomas Mottley of the Central New Jersey U.S. Export Assistance Center, have provided useful insights into foreign markets and made him aware of the many ITA resources available to exporters. He also credits CS officers based in China with apprising him of the commercial opportunity there and helping prepare him to do business in the country. Since then, China has become an important market for First Priority.

Another key to First Priority’s success has been understanding the needs of customers across a wide array of emerging markets. With buyers in countries like Russia, Vietnam, Saudi Arabia, Ghana, and Mexico, First Priority must modify its vehicles and equipment to meet differing local requirements. The firm carefully considers fuel efficiency standards, design characteristics, and even the prevalence of fire hydrants in its destination markets – and adapts its products accordingly.

First Priority has also been recognized for its comprehensive training programs, which help customers to effectively utilize what can be complex emergency vehicles. By remaining mindful of the technical and instructional needs of its clients, First Priority has earned a reputation internationally for superior customer service.

Exporters like First Priority and its fellow “E” Award recipients are selling quality products and services all over the world, strengthening their bottom lines, and creating jobs here in the United States. We at ITA are proud to support their efforts and look forward to continued export successes in the future.

We would also like to help your business. Please contact your nearest Export Assistance Center to learn more about our services.

Posted in World Trade Month | Tagged , , | Leave a Comment »

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U.S. Exporters Reach Record High in 2011

May 13, 2013

Natalie Soroka is an economist in the Office of Trade and Industry Information within the International Trade Administration where she focuses on international trade statistics and trends.

Small- and Medium-sized enterprises produce more than 50 percent of known exports in five states. The national average is for such businesses to produce 33.3 percent of known exports for each state.

In five states, Small- and Medium-sized Enterprises (SMEs) produce more than 50 percent of known exports for the state.

This month the International Trade Administration released its overview report on U.S. Exporting Companies in 2011. This overview is based on the Census Bureau’s Profile of U.S. Importing and Exporting Companies, 2010-2011.

This report, a joint project between Census and the International Trade Administration (ITA), details the characteristics of U.S. merchandise trading companies in 2010 and 2011, including information on company size, industry, geographic composition, and top export markets.

The report shows some interesting data and helps show how services like those offered at ITA can help Small- and Medium-sized Enterprises (SMEs) begin exporting or increase their exports. Businesses of any size can contact their nearest Export Assistance Center to find out how we can help.

In 2011, more than 300,000 U.S. companies exported goods, an increase of more than 8,200 since the previous year and up by more than 25,600 companies since the beginning of the National Export Initiative (NEI) in 2009.

Manufacturers accounted for the largest portion of known export value (that is, export transactions that can be linked to a specific company), much of it from large firms. However, when you look at the number of exporters, manufacturing firms only account for about a quarter of U.S. exporters, with smaller and medium-sized firms accounting for many of the non-manufacturing companies.

In fact, SMEs, which have fewer than 500 employees, accounted for 98 percent of U.S. exporters in 2011.

With regard to markets, exporters largely ship goods to markets in North America (namely, NAFTA partners Canada and Mexico), with 43 percent of exporters shipping merchandise to this region.

The number of companies exporting to the Pacific Rim region has also shown significant growth in recent years, up by more than 12,000 since 2009, nearly all of which were SMEs. Among the top 25 U.S. export markets in 2011, the number of exporters to Australia showed the highest increase, up by nearly 2,700 exporters since 2010.

SMEs account for a third of goods exports on average, but in markets like Switzerland, Hong Kong, the United Arab Emirates, Turkey, India, and Israel, SMEs account for more than 40 percent of known U.S. exports.

On a state level, California reported the most identified exporters in 2011, at more than 75,000, followed by Florida, New York, Texas, and Illinois. SMEs play an important role in many states’ exports, in particular accounting for more than half of goods exports from five states, which includes the states of New York and Florida, both among the top state exporters.

Overall, SMEs in particular would benefit from further expanding into new markets. In 2011, more than half (59 percent) of SMEs exported to a single foreign market. In contrast, 55 percent of large companies exported to five or more countries.

Compared with big companies, most SMEs do not possess offshore business affiliates that can be used to circumvent trade barriers and gain market access.

That’s why U.S. government initiatives to open foreign markets can especially benefit smaller U.S. exporters. If your SME needs help gaining access to foreign markets, you can contact your nearest Export Assistance Center to find out how we can help your business, regardless of its size.

For more information, read the full overview.

(This post was updated to correct an error in the first paragraph.)

Posted in Export Data | Tagged , , , | 4 Comments »

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U.S. Exporters (and Exports) Increased in 2010, Up 6 Percent from 2009

April 17, 2012

Natalie Soroka is an economist in the Office of Trade and Industry Information within the International Trade Administration where she focuses on international trade statistics and trends.

Last week the Census Bureau released, A Profile of U.S. Importing and Exporting Companies, 2009-2010, which provides information on U.S. companies that can be linked to import or export transactions (otherwise referred to as “identified” companies). In 2010, more than 293,000 U.S. companies exported goods, nearly 16,500 more than exported in 2009.  These companies exported $1.1 trillion in goods in 2010, up 21 percent from 2009. Most of these exporters (266,400 or 91 percent) were single location companies, however the remaining 9 percent of companies that operated from multiple locations accounted for 75 percent of the “known export value” (the value of export transactions that can be tied to specific companies).Graph showing the number of companies that only export (212,419), only import (101,008) or both (80,640)

What do these companies export? Manufacturers accounted for the largest portion of known value in 2010 (60 percent). In addition, the top 50 manufacturers accounted for 43 percent of the entire sector’s known export value. This is higher than the share represented by the top 50 wholesalers (36 percent) and other companies (37 percent) in their respective sectors. Large companies dominate manufacturers’ exports, with 3 percent of manufacturing exporters accounting for 81 percent of manufacturing export value.

On the import side, the number of importers also increased from 2009, up to more than 181,600 businesses. It should be noted that importers and exporters are not mutually exclusive. Of the more than 394,000 companies engaged in trade, more than a fifth (80,640) both exported and imported goods in 2010.

Like exports, while most importers operate from a single location (90 percent), it is the few multiple location companies that account for most (76 percent) of the known import value. Importers also tend to be slightly more concentrated towards the top firms than exporters. 

However, international trade isn’t only a big guy’s game. Small and medium-sized companies (those with fewer than 500 employees), or “SMEs”, accounted for 98 percent of all identified exporters in 2010 and 34 percent of known export value.  While they may only contribute 19 percent of the sector’s $683 billion in exports, 97 percent of manufacturing exporters are SMEs. As for wholesalers, SMEs accounted for 62 percent of the sector’s $268 billion in exports.

Unlike previous versions of the Profile, this version includes information on SME companies by 3-digit North American Industry Classification (NAICS) code. In 2010, merchant wholesalers of durable goods comprised both the largest number of SME exporters (60,571) and the highest known export value among these industries ($91 billion).

As for our export and import markets, more than half of identified companies exported to or imported from only one foreign market, and 82 percent of exporters and 90 percent of importers traded with one of the top 25 U.S. trading partners. Exports to Canada, the largest market in 2010, also showed the highest increase in known dollar value compared to 2009 (up $34 billion). On the import side, China was the largest supplier for U.S. importers as well as showed the highest growth in known value, increasing by $66 billion in 2010.

On a state level, Texas, California, New York, Washington, and Florida together accounted for 43 percent of known exports.  Similarly, California, Texas, New Jersey, New York and Illinois accounted for half of the known import value in 2010. Many states posted increases in 2010, with Maine showing the highest increase in known export value (up 46 percent) and New Mexico showing the highest increase in known import value (up 55 percent).

More information and the full profile are both available on the Office of Trade and Industry Information website.

Posted in Uncategorized | Tagged , | 1 Comment »

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ITA’s Anti-Corruption Efforts at APEC

December 7, 2011

This post contains external links. Please review our external linking policy.

Lynn Costa is a senior trade development adviser in ITA’s Market Access and Compliance unit.

Corruption is a significant market access barrier for U.S. exporters. According to the World Bank, nearly $1 trillion is lost globally each year to corrupt activities. Small and medium-sized enterprises (SMEs) disproportionately bear the costs of corruption because they lack the bargaining power and influence to oppose requests for illegal payments and bribes. It has been estimated by the World Bank that 25 percent of the operating capital of a typical SME exporter is lost to corruption each year. This is a staggering amount that undermines innovation and inhibits company growth, employment, and export capability.

In an effort to put into place programs that will help eliminate corruption in the APEC economies, the Market Access and Compliance unit of the International Trade Administration (ITA) this year launched business ethics projects that focused on three sectors of special interest to SME exporters: medical devices, biopharmaceuticals, and construction. The result was a set of industry-specific ethics principles for business codes of ethics that were presented to the APEC ministers in Honolulu and subsequently endorsed by them. The next step will be the implementation of these business ethics principles over the next several years. This will be done thanks to a funding commitment made by APEC in response to ITA’s efforts in this area.

To read the full text, of the APEC ministers’ statement on open governance and ethical business practices, visit www.apec.org.

Posted in Uncategorized | Tagged , | 1 Comment »

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