Since the beginning of time, trade and commerce have been fundamental to human interaction. When someone possessed something that another person desired, they negotiated a deal, exchanged the item, and effectively became an exporter of that good or service.
Are you contemplating expanding your business internationally due to rising interest from global buyers? Or are you seeking new ways to generate additional revenue streams? These are common considerations for businesses, but venturing into exporting can be challenging. To help you decide if exporting should be part of your business strategy, here are four compelling reasons why U.S. businesses—regardless of size—should consider entering the world of exports:
- Increased Productivity for Exporters (Especially Manufacturers)
According to the U.S. Census Bureau, U.S. manufacturers (particularly small businesses) that engage in exporting generate 1.9 times more revenue than those that do not. The U.S. International Trade Commission found that small and medium-sized U.S. manufacturers who export earn more compared to non-exporters. Additionally, labor productivity, measured by revenue per employee, is over 70% higher for exporting firms. - Stronger Workforce for Exporters
An analysis of the 94 largest U.S. metropolitan areas revealed that for every $1 billion in exports from a metro area industry, workers in that industry earn roughly 1 to 2 percent higher wages. - Faster Growth for Exporters
The U.S. International Trade Commission found that U.S. exporters outperform their non-exporting counterparts in several key areas. Whether in manufacturing or services, exporting businesses generate higher revenues and experience faster revenue growth compared to those focusing solely on domestic markets. - Enormous Global Export Opportunity
With only 5% of the world’s consumers located in the United States, focusing solely on domestic sales means missing out on a significant opportunity. Businesses that export can expand and reach a new customer base, knowing the demand for “Made in America” is higher than ever.
By entering the export market, your business could enjoy increased productivity, a stronger workforce, faster growth, access to vast global opportunities, and greater innovation. The Export-Import Bank of the U.S. can help you achieve success in exporting through Export Credit Insurance, Loan Guarantees, and other trade finance solutions. To learn more, speak with one of EXIM’s export finance specialists and start your export journey today!
