Why Business Leaders Should Look to Export Their Products and Services

The United States’ goods and services market is performing on such a large scale that is important for businesses to analyze the benefits of exporting particularly since “70% of the world’s purchasing power is situated outside of the U.S.A” ( Apple Rubber).

Below are the top 4 reasons that businesses should consider broadening their market and consider exporting their products:

1. Foreign markets have the power to boost profits and the life cycles of certain products and services. While some people believe that exporting American goods is only for the prosperous and innovative products, some matured products have the ability to be revitalized by outside economies.

2. Exporting increases labor productivity.  In an example from 2009, the total revenue of exporting manufacturers was more than twice of the non-exporting manufacturers. That said the exporting manufacturers that were analyzed had “revenue growth of 37% in the years leading up, while total revenue went down by 7% for non-exporting SME manufacturers over the same time” (Apple Rubber). Additionally, labor productivity was 70% greater for the manufacturers who exported their goods.

3. Exporting is great for businesses, but even better for the American worker. In present day America, jobs are of utmost importance. Because of this, it is important to know how exports drive the employment rate in America. According to statistics from 2015, “U.S. service exports supported 4.8 million jobs and goods exports supported 6.7 million jobs and as a result, jobs were increased up to 1.9 million in six years” (Apple Rubber). Through these statistics, it is easy to see both macro and micro benefits of exporting.

4. International exportation drives ultimate growth. Executives are able to gain a better and broader understanding of their industry trends and developments. It also allows for companies to compete in both markets, domestic market and foreign. With more customers all across the globe, comes better brand recognition and greater amounts of sales. Ultimately, it sets business leaders up to be more successful by getting themselves involved with market influencers and decision makers.

 

Jack Gruber

 

References:

“5 Reasons Why U.S. Companies Should Consider Exporting.” Official Apple Rubber Blog, 20 Apr. 2017, www.applerubber.com/blog/5-reasons-why-u-s-companies-should-consider-exporting/.

 

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About Allyn International

Exporting goods can be intimidating, and for small to medium sized businesses, infrastructure needs to be put into place to export successfully and navigate customs regulations and procedures. Allyn International trade compliance can help. Our export services provide a strong foundation for our client’s export compliance requirements through document preparation, denied party screening, license application, ECCN & Schedule B maintenance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe, and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, FL U.S.A, Shanghai, P.R. China and Prague, Czech Republic. For more information, log on to www.allynintl.com.