This week, the
Institute of Supply Management (ISM) reported that December was the fourth
consecutive month of expanding orders from American businesses. The ISM export gauge showed sales growth overseas for the first time in seven
months. American manufacturers are becoming increasingly optimistic about the
outlook for sales in 2013. This is significant because it shows that factories
will support economic expansion in the coming year.
As small and
medium-sized manufacturers in Michigan look to increase sales this year, they
should consider implementing or increasing exporting initiatives. Many manufacturers
have the misconception that only large manufacturers have the ability to export
goods, but this simply isn't true. Small and medium sized manufacturers account
for nearly 97 percent of US exporters. However, this group represents only 30
percent of the total export value of US goods. Furthermore, of the small
businesses that do export, nearly two-thirds of them only export to one
country. Many of these companies can boost their exports by merely
expanding the number of countries that they sell their products to.
There are many benefits to
exporting:
- Increased customer base, as 95 percent of the world’s consumers live outside of the United States.
- Portfolio diversification
- Ability to weather changes in the domestic economy
- Capability to become more competitive in other markets
- Company growth
Food Industry
Let’s look at the
impact of exporting on just one of the many manufacturing industries in
Michigan’s diverse economy. Michigan produces more than 300 commodities on a
commercial basis, making it second only to California in agricultural
diversity. In 2011, Michigan agricultural exports generated nearly $2.8
billion. Currently, Michigan’s top exports are soybeans, corn, wheat, dairy and
fruit. The Michigan Food and Agriculture industry plans to double its exports
by 2015, and Michigan has the infrastructure to do it. That’s incredible
growth, in just one industry. Imagine what exporting could do for your company.
Click for more information on Michigan’s
Food & Agriculture industry.
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