Foreign Trade is Vital to Small Business Growth
“Made in USA” is a re-ignited trend sweeping across the U.S. Small businesses and their customers are becoming big fans of everything U.S.-made, from the supplies to the finished goods.
While that is good enough for U.S. companies and consumers, some small businesses take things a step further: They export U.S.-made products to International customers. Indeed, going global is the next logical step of getting U.S. products recognized not only nationally but also internationally.
If you are wondering whether foreign trade is the way to go – well, did you know that more than 97 percent of the 293,000 American companies that export are SMEs?
The most recent video from the U.S. Chamber of Commerce shares the story of how three small business owners embrace foreign trading as a key strategy for their small business growth.
The first story is Drew Greenblat’s. Mr. Greenblat is the President and Owner of Marlin Steel, an Inc 5000 company established in 1968. Headquartered in Baltimore, Maryland, USA, the factory makes metal baskets and sheet metal fabrication for factories and ship to all over the world.
The decision to export didn’t come until about a decade ago. Marlin Steel exports to Mexico, Canada, European countries and Asian countries. The highlight? Exporting to China.
The key to success in exporting to China is the higher level of quality which is hard to get from the typical Chinese vendors, and the cutting-edge engineering process.
The second story is on Paulson Manufacturing Corporation, established in 1947. Producing safety products, specializing in eyes and face protection. All the materials for the factory are U.S.-produced.
Roy Paulson, the President, mentioned that International trade started as occasional orders from foreign countries. Today, 25 percent of the factory’s output is for International clients.
Surprisingly, Mr. Paulson found out that 30 percent of the domestic purchases were actually re-exported – which means 55 percent of Paulson Mfg. Corp.’s products are for foreign customers.
The third story is of Robert Patton, the President and CEO of Patton Electronics, Co. He co-founded the company with his brother when they studied at the University of Maryland, as an effort to look for ways to pay their tuition fees.
Patton Electronics, Co. was started as a mail-order company selling data communication products. The company was one of the first adopters of the Internet. As a result, clients – including International clients – found their products via their website.
Patton Electronics, Co. manufactures their own products, and ship to foreign markets – including China – which largely responsible for 25 percent annual growth rate since the company started.
Indeed, International trade plays a central role in creating American jobs, emphasizes the importance of free enterprise, and boosts economic growth here at home.
It’s only logical for Americans to support locally-made products for them to reach International market.
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