Have you considered offering your products in foreign markets? If not, maybe you should. There are a host of reasons why selling internationally can make sense for your business.
- Nearly 96% of consumers and over two-thirds of the world’s purchasing power is outside the US. This large consumer base plays an important role in the long-term success of America’s small businesses. Approximately 98% of all exporters are small manufacturers accounting for 34% of total export revenues.
- Exporting is a win-win for the US economy. Export sales contribute to a strong middle class by fueling economic opportunity and jobs in communities across the nation. Exporting also leads to increased sales and profits, reduces dependence on the domestic market, and provides stabilization to seasonal business fluctuations.
- On average, businesses which export are more profitable than those who don’t. Diversity of foreign markets affords a greater chance of sales success and reduces dependence on local markets.
- Exporting enables businesses to spread risks across different markets; putting them in a better position to survive market fluctuations. Exporters are not significantly impacted if one market suffers from a recession or reduced demand.
- Exporting can result in lower average costs. By expanding operations, manufacturers can take advantages of economies of scale which result in increased productivity and efficiency.
- Manufacturers can become more innovative, competitive and poised to cope with changing circumstances by being exposed to various working environments – and coming up with new strategies to circumvent any obstacles.
- The world benefits from American exporting activity. US exports provide access to some of the highest-quality products and services in the world.
The City of Mentor International Trade Initiative can help local manufacturers grow their business. Contact Mercedes Sanchez, PhD, MBA at (440) 205-3743 or sanchez@cityofmentor.com to learn more.