Simply put, we need to do a better job at educating the next generation about manufacturing and related topics. From four-year universities and community colleges to technical schools and and high schools (and sooner!), it’s imperative that we educate our students about the critical areas that impact the U.S. manufacturing sector. One such topic is exporting.
In the 1970s, business students rarely, if ever, heard the word export. Standard economics textbooks barely mentioned exporting. There were no required or elective courses dealing with the subject. Business schools did not seek out foreign affiliations. But forty years later, the landscape has changed. The gasoline crises, foreign investment in the United States, North American Free Trade Association (NAFTA), European Union and international trade deficits caused a complete reevaluation of business education. Today, business schools are expanding their coursework to include exporting, and we should continue this evolution.
The National Benefits of Exporting
Exports are good for the national economy. They increase the gross national product by offsetting the value of imports. But how does exporting affect your business? The world is a big place and new markets may be available for your products and services. The United States has a population of several hundred million people amounting to only less than 5% of the world’s population. So if you’re an NJ manufacturer and you’re only producing your goods for the U.S., you’re missing out on 95% of the world’s potential customers!
Why NJ Manufacturers Should Develop an Exporting Strategy
Limiting your business to the United States is reducing potential markets for your product. Your product may not be suitable for use throughout the entire world, but there could be another market in need of your product. Products made in the United States have a reputation for high quality and are known for being made with excellent business processes. Surprising markets have been found around the world.
Another benefit of exporting is the lessened effects of the expansion and contraction of the economic cycle. Recessions do not hit the entire world at the same time with the same severity. Countries experience the depths of a recession differently. Selling in more than one country can reduce the impact when a recession occurs in the United States. Statistics show exporting companies not only grow faster but are about 9% less likely to go out of business.
There are are some challenges to exporting, but they can be overcome with the correct strategy and effort. The reward outweighs the effort! Below are just a few examples.
- Letters of credit can be mystifying to the first time user
- New ways of shipping may need to be developed
- New vocabulary needs to be acquired
Many programs are available to help the business owner begin their exporting enterprise. The government understands the benefits of exporting to the economy and offers assistance. The United States Small Business Administration offers loans to assist exporters and operates Export Assistance Centers. The Trade and Assistance also offers funding for exporters. Data bases such as the one maintained by the U.S. Census Bureau can offer help providing guidance on where to expand your reach.
Attend Exporting Conferences This September at No Cost
If you’re an NJ manufacturer, you may qualify to attend the ExporTech™ Intensive Program at no cost through a program called Market Shift! This program is a two-day, education and planning process designed to help you diversify your customer base through global sales.
The conferences will be held on September 23rd and 24th at Bergen Community College in Lyndhurst, NJ.
For more information, call 973-998-9805 or click here!