Archive for the ‘Export Data’ Category

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New Interactive Market Diversification Tool Identifies Top Potential Markets for U.S. Businesses

November 15, 2018

Market Diversification Tool Logo

Jean Janicke is Director of ITA’s Office of Trade Negotiations & Analysis

U.S. companies produce some of the most innovative and high-quality products in the world.  But how does a company figure out where in the world to go next to sell its product?  What if the market conditions change for your current exports and you need to find a new market? The Market Diversification Tool is here to help answer that question.

In the past, a manufacturer might have relied on one data point or market research indicator to figure out its next step, but was unlikely to be able to go to one place to mine multiple data sources.  It could get overwhelming.  Now with the Market Diversification Tool, there is one place to start the market research journey that brings together product-specific and market-level data points across 11 indicators to give you a ranked list of choices.  We field-tested the tool with our Commerce colleagues all over the country to make sure the results match what they would expect from experience and to ensure that the tool is easy to use.

Here’s how it works.  A U.S. producer exporting to at least one market answers two simple questions: what is your product, and where are you exporting now?  A team in Commerce’s Industry and Analysis Unit has figured out an algorithm and collected all the data needed to help you find your next potential market.  The tool applies weights to 11 different indicators, runs calculations based on your input, and gives you a ranked list of recommended markets with scores for each country.

And it is not a black box. The results display all the data the algorithm uses so you can better interpret them. The data can also be exported.  Want to only look at markets in Europe and get help locally once your search is done? The tool allows you to narrow your search to select regions or markets and provides information on your local U.S. Commercial Service Export Assistance Center as well as links to other resources such as Country Commercial Guides.

Example: Producer ready to find its next market

Since there are many small and medium sized cosmetics producers in the United States, let’s take the example of a lipstick producer that currently exports to Mexico.  Here are the results:

The search results show high scores for Canada and the U.K. with a bunch of markets ranked in the 40s.

Export Destination Ranking

In these results we can see that Singapore, with average imports from the United States of $9,283,075, ranked higher than Germany and South Korea, both with higher U.S. export figures.  The results illustrate that the tool does more than just a straight ranking by trade or a listing of FTA partners; it combines multiple factors by weight to generate top export destinations.

Example:  Search When Market Conditions Change

Now let’s take an example of changing market conditions.  A U.S. motorboat producer exports to Belgium, but now the producer faces foreign retaliation in Europe, Canada, and Mexico.

Market Diversification Tool

The search brings up Canada and Mexico and some EU markets, but it also shows opportunities for diversification beyond markets that are retaliating against motorboats.  From this search, a company responding to market changes could start exploring Asia-Pacific options like Australia and Singapore, for example, or consider prospects in Israel.

Example: Regional focus

There are more ways to customize the tool results.  Let’s say a company has limited international travel funds and is visiting a current customer overseas.  The company could use the tool to find the top potential markets in the region. Or if a company is participating in a big regional trade mission like Tradewinds, it could use the tool with a regional selection to focus its travel and meeting choices.  This customization option helps companies make the most of limited resources.

Next steps:

Need help with next steps?  By entering your zip code, you’ll get connected to a Commerce trade office in your area.  For example, the motorboat producer could use the results to explore market research and other programs for Hong Kong and Singapore with a local U.S. Export Assistance Center.

Armed with the ranked list, you are ready to start more in-depth research and find partners in new markets.

Try out our new tool today!

Disclaimer: Consistent with its mission, the International Trade Administration (ITA) provides the information on this website for informational purposes, to assist U.S. exporters seeking to identify potential new export markets. The market rankings provided by the tool do not have official or legal status and should not be taken as a business recommendation or as business counseling. The information in this tool does not constitute legal advice. ITA has taken every effort to ensure that the information presented is accurate and that the algorithm provides useful results; however, ITA assumes no responsibility or liability for any errors or omissions. ITA advises users to independently verify any information contained in this tool prior to relying on it. Users are further advised to conduct their own due diligence and seek the advice of legal counsel before entering into business ventures or other commercial arrangements in these markets. ITA assumes no responsibility or liability for the actions users may take based on the information provided.

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Are you Export Savvy? Get the Edge on Exporting with New Export.gov Resources

April 19, 2018

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

By Curt Cultice, Senior Communications Specialist, and Jennifer Stone Marshall, Senior International Trade Specialist, U.S. Commercial Service

Logo for Export.gov's new email service, Export Today.Setting your compass in international trade can be rewarding, but challenging. Are you wondering “What is my firm’s potential for international sales?” or “How do I find greater success abroad?” We have two new online tools that can help you chart a course: export.gov’s exporter (self) assessments and export business tip emails.

Exporter Assessments Point the Way Forward

The U.S. Commercial Service’s exporter assessments can help improve your export planning while pointing to helpful resources. With expert input from our global network of trade professionals, the quick and easy-to-use assessments are customized to different levels of experience: new-to-export companies, exporters expanding into new markets, or experienced exporters in more challenging markets.

There are many questions to consider. Here is a brief overview of questions that are answered in the assessments:

  • Does your firm have sufficient production capacity that can be committed to the export market?
  • Does your company have capabilities to modify ingredients and product packaging to meet foreign import regulations, cultural preferences, and survive competition?
  • Will financing be required for any expansion?
  • Has your business considered pursuing U.S. free trade agreement countries as part of a broader export strategy?
  • Is your company familiar with U.S. Department of Commerce resources to help resolve trade issues and problems?

Moreover, each assessment provides important links to additional information, including the informative Exporting Basics videos series.

New “Export Today” Emails Give You Tips for Success

To continue developing your exporting competency, subscribe to our new email tip service, Export Today. You will receive biweekly emails from the U.S. Commercial Service, and get pointers on exporting issues relevant to your company’s experience level. Whether it’s shipping issues, trade finance assistance, researching the market, or a separate issue, Export Today will provide you with insights and connect you with the best content on export.gov. Sign up today.

Get Started Today on Export.gov

With our decades of experience in helping U.S. companies sell abroad, we bring you the most useful information and tools on export.gov. Companies that take the time to think through an export plan tend to have greater international success. The effort can make the difference between generating a few international sales and achieving real business growth. Get export savvy and on the path to new export sales by taking your own exporter assessment and signing up for Export Today email tips.

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Ready to Grow Your International Business? Find the Right Market with Video Series

February 27, 2018

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

By Curt Cultice, Senior Communications Specialist, and Jennifer Stone Marshall, Senior International Trade Specialist, U.S. Commercial Service.

Has your company sold to customers in one or two countries? Congratulations, this is a great foundation for tapping into the international marketplace like many small and medium-sized U.S. businesses. The U.S. Commercial Service (CS) can help you grow and find even greater success.

Many U.S. companies are making limited export sales when they could be pursuing new market opportunities. In fact, U.S. Department of Commerce statistics show that 59 percent of all U.S. exporters sell to only one market. Many businesses perceive exporting as being too burdensome or lack a proactive export plan for entering new markets. The result is missed opportunity.

You already have some knowledge and experience with the marketing and logistics skills involved in exporting, and likely a track record of proven demand and sales. The potential for success in a new market grows exponentially with an export plan built around carefully chosen markets. Let us help you.

Download this video.

How to Find New Foreign Export Markets

A new CS video series can help you identify markets for your business’s growing export strategy. Each year, thousands of U.S. companies find new customers and trade partners abroad with help from CS global trade professionals.

Among the series of Export Destination video shorts covering 20 high-profile market destinations, there is a sub-group of 10 markets for you to consider. These markets may be less crowded with foreign competitors, while still offering high-growth opportunities.

In Latin America, Chile is a good platform for American companies to reach other Latin American markets. A major benefit is that 100 percent of American-made products enter Chile duty-free. Colombia is a strategic hub for entering Latin America, and the only South American country with two oceans. The country is investing in key infrastructure such as railroads, airport, transportation, and roads. Peru is one of the fastest-growing economies in Latin America, averaging an annual growth rate of about six percent during the last decade.

In Asia, Indonesia is located on one of the world’s major trade routes, and is Southeast Asia’s largest economy with more than 250 million people. Japan is the fourth-largest importer of U.S. products, with fast-growing sectors that include advanced manufacturing, cyber security, and eCommerce. Malaysia is a robust eCommerce market, with 50 percent of Malaysians now making purchases online, and 47 percent of mobile phone users buying products with their devices. Vietnam has transformed into one of the most vibrant markets for U.S. exporters. Since the economic reforms of the 1980s, Vietnam’s annual growth rate of more than five percent has been second only to China in Asia. South Korea is a top U.S. trade partner in the Asian region. American sellers often compete well against Korean suppliers, especially when selling via eCommerce in this high-wired market.

In the Middle East, the United Arab Emirates (UAE) features world-class infrastructure and is the largest U.S. export market in the Middle East. The UAE has $270 billion worth of opportunities per its 2015-2020 plan for infrastructure investments.

In Africa, South Africa is the most mature and advanced country in Africa with opportunities in power, telecom, healthcare, and more. As Africa’s second-largest economy, the country’s solid infrastructure serves as a base for selling throughout sub-Saharan Africa.

Watch a brief overview of the trade opportunities in a foreign country today, or see the entire market destination video series on export.gov. After watching the video, learn more about doing business in the country with our Country Commercial Guides. The guides are authored by CS trade experts at U.S. embassies and consulates in more than 140 countries, and provide economic overviews and insights into industry opportunity, selling techniques, trade financing, business travel and more.

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U.S. Exporters Poised to Capitalize on Global Demand for Smart Grid Products and Services

June 29, 2017

By Vickie Gunderson, Smart Grid Analyst

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

The average number of Internet-connected devices per household is expected to increase five-fold by 2022, leading to potentially over 50 billion connected devices by 2025.  As more devices are connected to the Internet– in our homes, offices, and manufacturing facilities – it is becoming increasing more critical that people have access to reliable, secure, affordable, and clean electricity to power them.  And U.S. firms that provide the products and services to meet these grid modernization needs are seeing increased global interest.

Earlier this year, we released an Update to the 2016 Smart Grid Top Markets Report. These articles offer detailed analysis of the near-term growth potential for U.S. exporters of smart grid products and services overall and for three sub-sectors:  transmission and distribution (T&D) equipment, smart grid information communications technologies (ICT), and energy storage.  The Update expanded the number of ranked international markets for U.S. exporters from 34 to 50 markets and ranks them according to opportunities.

Across the suite of sub-sectors, U.S. exporters remain global leaders. Deployment of these advanced technologies across the United States to modernize our grid is serving as a global test bed for these disruptive technologies. Nowhere is this more apparent than for energy storage systems.

Today, the United States is one of the global leaders in deployment of energy storage with more than 200 battery projects totally over 400 MW added to the system and remains the world leader for testing innovative policy, regulatory, and business models. However, projects are being deployed across the globe with global deployment of energy storage expected to increase seven fold over the next five years.  This presents a key export opportunity for U.S. manufacturers and service providers.

Over the last eight years, the costs of grid-scale battery energy storage has decreased ten fold. These types of cost reductions are driving the deployment of a wide range of energy storage systems in the United States and around the globe and enabling electric utilities to store electrons (electricity) to provide power when it is needed and help steady the 24/7 need to balance the generation and the demand for electricity.

As a result, the Trade Promotion Coordinating Committee on Renewable Energy and Energy Efficiency (TPCC-REEE), and the U.S. Departments of Commerce and Energy are leading an interagency effort to enhance services and programs to support U.S. competiveness in a range of sub-sectors across this diverse industry – including for energy storage.

In the  2016 Smart Grid Top Markets report, the Department of Commerce included dedicated analysis on energy storage to increase market intelligence for U.S. exporters, and our January 2017 Update included the first sub-sector rankings for energy storage exporters. Additionally, at DistribuTECH 2017, under the International Buyer Program, the Department of Commerce led delegations totaling more than 400 foreign buyers to facilitate meetings with U.S. energy storage and smart grid companies, as well as interact with U.S. utilities who have successfully deployed these products domestically.

Further recognizing the link between technology deployment and regulatory barriers, we have engaged in a series of market-specific activities. At the third U.S.-India Smart Grid Workshop in New Delhi,I participated in public-private discussions on the challenges to smart grid technology deployment in India. We also held discussions on communications networks for electric utilities in Brazil under our partnership with the Utilities Technologies Council through our Market Development Cooperator Program, and later this year (October 31-November 2), we will be leading a delegation of U.S. firms to Toronto and Calgary for the Renewable Energy Integration Trade Mission.

And this is just the beginning! Stay tuned for upcoming events related to global smart grid opportunities, and a full update to the Smart Grid Top Market Report later this fall. Sign up for our Global Energy Team newsletter to stay in the know!

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Small and Medium-Sized Enterprises Reaching New Markets

May 1, 2017

Natalie Soroka is an Economist in the Office of Trade and Economic Analysis

Top SME Exporter Markets, 2015. Mexico $75.7 billion, Canada $52.9 billion, China $33.8 billion, Japan $20.3 billion, United Kingdom $19.8 billion.As we kick off Small Business Week, the Census Bureau released its “Profile of U.S. Importing and Exporting Companies, 2014-2015.” A joint project of the Census Bureau and International Trade Administration, this series details the characteristics of U.S. companies that imported or exported goods in 2014 and 2015, including information on company size, industry, geographic composition, and trading partners. When we look at the trade data, small and medium sized enterprises play a huge role in economic growth and job creation.

In 2015, nearly 408,000 companies in the United States traded goods internationally, with nearly 295,000 companies exporting goods and almost 197,000 companies importing goods from abroad. The majority of these companies were “small and medium-sized enterprises,” or SMEs, with fewer than 500 employees. In 2015, SMEs accounted for 98 percent of goods exporters and 97 percent of goods importers. However, in terms of known dollar value, large companies account for a larger share of trade, with SMEs only accounting for about a third of U.S. goods trade.

In 2015, the value of “known” U.S. goods exports (export transactions that can be linked to a specific exporter) fell by 7.7 percent from the prior year, so it doesn’t come as a surprise that the number of goods exporters in 2015 was also lower than 2014, falling by 3.4 percent. This drop is attributed to fewer small company exporters with fewer than 100 employees, as the number of medium-sized (250-499 employees) and large exporters increased slightly.

With regard to markets, the number of exporters selling goods to Canada decreased the most, with most of those losses being very small companies with fewer than 20 employees. However, large firms accounted for most of the decrease in known export value to Canada. SME exports increased to several of the top 25 U.S. markets: Belgium, Switzerland, India, and Chile. While overall exports to most of these partners fell, higher exports from SMEs to India offset lower exports from large companies to result in an overall increase in U.S. known goods exports to India in 2015. The value of exports from large companies rose to the United Kingdom, Saudi Arabia, United Arab Emirates, and Germany.

While many companies solely export or solely import, about a fifth of these companies engage in both directions of trade, exporting and importing merchandise. These companies are also responsible for the majority of the known trade value, accounting for 85 percent of known goods exports and 93 percent of known goods imports in 2015.

Similarly, while most companies only engage with one trading partner, those companies selling to partners in multiple countries account for most of exports, by value. For example, the 7 percent of SMEs who exported to 10 or more countries in 2015, accounted for more than half of total SME export value. This is even truer for large companies, where the 44 percent of large companies that exported to 10 or more countries accounted for 96 percent of the overall value of exports from large firms.

The data in this report show that many small and medium-sized companies could expand their export sales to additional markets. The International Trade Administration offers many services to help U.S. companies begin exporting or increase their sales. Businesses of any size can contact their nearest Export Assistance Center to find out more about our programs and resources.

For more information regarding U.S. importers and exporters in 2015, see ITA’s fact sheet or read the full Profile.

Join us in the conversation on social media using #SmallBusinessWeek. Tag us on Twitter using @TradeGov and share the success of your small business.

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U.S. Businesses in Metro Areas are Tapping into Markets Abroad

September 14, 2016

Ken Hyatt is the Acting Under Secretary for the International Trade Administration, Department of Commerce.

Now more than ever, U.S. businesses know how important it is to take advantage of export opportunities around the world. From coast to coast, businesses are selling their world-class goods to the more than 95 percent of potential customers who live outside our borders. The 2015 Metropolitan Area Export Overview  is a clear indicator of this movement, as many cities have increased exports or even set records. And along with the nation’s largest metropolitan areas sending out more American goods, many smaller areas have also set trade records.

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2015 Metro Exports

Now to the numbers: U.S. metropolitan area goods exports exceeded 1.3 trillion in 2015, and accounted for 89 percent of goods exported from the United States. There were 156 metro areas that exported more than $1 billion of goods to consumers around the world. There were 14 metro areas that exported more than $20 billion of goods in 2015.

Let’s look at a couple examples: Seattle-Tacoma-Bellevue, Washington; and El Paso Texas, both of which set records in 2015, have experienced impressive growth from 2009 to 2015. The Seattle area was ranked in the top five for 2015, while El Paso, Texas ranked in the top 20.

El Paso registered double-digit export growth in 2015, shipping $24 billion in goods abroad. El Paso has made impressive increases since 2009; this year representing a 22 percent increase from 2014, and a 217 percent increase from 2009. The city’s largest export goods categories included computers and electronic products; electrical equipment, appliances; and transportation equipment. Exceptionally, El Paso area sent 93.5 percent of its goods exported to markets where the United States has trade agreements enforced.

The Seattle area sent more than 25 percent of its goods exports to markets where the United States has trade agreements. Their exporting categories ranged from transportation equipment to computer & electronic products to fishing, hunting, and trapping goods.

It’s clear that both Seattle and El Paso, among the nation’s many metro areas, large and small, are making developments towards a more globalized market.

The Department of Commerce and the Obama Administration continue to focus on supporting U.S. jobs and raising wages. This includes efforts to sign high-standard agreements such as the Trans-Pacific Partnership. Accessibility for U.S. exporters to the largest and most competitive markets has become top priority over the duration of the Administration. In fact, markets with Free Trade Agreements in force accounted for more than half of the total goods exports for 195 metropolitan areas.

For more information on the contributions of metro areas to U.S. exports, download your free copy of fact sheets for the top 50 exporting metro areas.

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Mexico’s Release of its National Cluster Map: a Testament to the Strength of the U.S.-Mexico Partnership

July 28, 2016

Leslie Wilson is the Mexico Desk Officer for the U.S. Department of Commerce

A neighbor, an ally, and our third-largest trading partner: Mexico – and its relationship with the U.S. – has never been more important. As part of the ongoing work to reinforce that relationship, Mexico has published a new and innovative National Cluster Map, which identifies areas for investment and job creation and enhances regional economic development between the United States and Mexico.

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Mexico-US flag

On July 22, 2016, in conjunction with Mexican President Enrique Peña Nieto’s visit to Washington, D.C., the Mexican government released the map as a free, open website available to the public around the world. During his visit, President Peña Nieto met with U.S. President Barack Obama and Department of Commerce Secretary Penny Pritzker, among others, to discuss ways to continue strengthening the U.S.-Mexico relationship. For example, as Mexico is the United States’ third largest trading partner, $1.5 billion in trade crosses our border every day.

The site, a key milestone of both governments’ efforts to increase North American competitiveness, is a component of the U.S.-Mexico High Level Economic Dialogue (HLED). Through the HLED, the Innovation Cluster Subcommittee of the Mexico-U.S. Entrepreneurship and Innovation Council (MUSEIC) – in collaboration with Mexico’s National Entrepreneurship Institute (INADEM) and the U.S. Department of Commerce’s Economic Development Administration (EDA) and International Trade Administration (ITA) – has worked to develop binational, compatible cluster maps that identify geographic concentrations of interconnected companies, suppliers, service providers, and associated institutions that are present in the United States and Mexico.

The U.S. and Mexican maps can be used to enhance regional economic development by identifying an area’s assets and creating important connections between the public and private sectors. They can also be used by innovators working in similar sectors and spaces to share best practices, identify opportunities for public investment, and serve as a framework for understanding drivers of private investment and job creation.

Cluster Mapping as a Tool for Regional Integration                                     

According to U.S. Assistant Secretary of Commerce for Economic Development Jay Williams, “The Mexico National Cluster Map is essential for understanding the competitive landscape of North America and facilitating regional collaboration. The U.S. and Mexican maps will help regions work together to capitalize on assets and discuss best practices in economic development, policy, and innovation.”

To further the goal of regional integration, President Obama, President Peña Nieto, and Canadian Prime Minister Justin Trudeau committed to establishing a broader North American Cluster Map at the most recent North American Leaders’ Summit held in June to best display synergies among the major regional economies. The development of Canada’s cluster map will be the next step in achieving this goal.

EDA, in partnership with Harvard University, runs the U.S. Cluster Mapping website, which offers a member directory that profiles cluster initiatives throughout the country and provides statistical and visual data that assess business environment characteristics.

How Mexico Created Its Map

Mexico’s cluster map was developed by Mexico’s Statistics Agency (INEGI) based on 2014 census data, the latest cluster definitions  by Michael Porter, Scott Stern, and Mercedes Delgado (also used in the U.S. map) and the location quotients of the country’s 32 states. It combines the Porter, Stern, and Delgado methodology using employment and occupation data, and the Monterrey Institute of Technology and Innovation (Tec de Monterrey) methodology adopted by INADEM to identify strategic sectors in Mexico. Mexico has undertaken a data alignment and cluster definition matching exercise so the data can be used and analyzed in a binational fashion, ensuring the compatibility of the information provided in the U.S. and Mexican maps.

“Mexico has convened key stakeholders of government, academia, and private industry to develop its Cluster Map and a global strategy for Cluster Development,” said Enrique Jacob, President of INADEM. “The map helps to identify smart specializations, promote private industry investment, support new public policies in innovation, and foster global value chains.”

Dynamic initiatives such as the U.S.-Mexico binational cluster mapping project offer a powerful knowledge-based tool that can generate clear, positive outcomes for government, industry, academia, civil society, and entrepreneurs. Specifically, the U.S and Mexican cluster maps provide reliable data essential to foster regional and global value chains, support investment decisions, and enforce data-oriented public policy. In fact, a full 40 percent of the content of Mexican exports is comprised of U.S. inputs. This means that of all the products Americans purchase that are manufactured in Mexico, about 40 percent of those products’ value-added components are made here in the United States. This reflects the highly integrated nature of our bilateral value chains.

The compatibility of the U.S. and Mexican maps is also a critical step toward the development of cross-border  economic development strategies that can help drive the sustainable, long-term economic vitality of urban and rural communities along the U.S.-Mexico border.  And most importantly, these maps underscore the importance of using innovative tools to best leverage our connections to create jobs in both countries and across the region.