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vol. 4, no. 1 - January/February 2008 cover story 2008: Make Your Move Global Trade Strategies Bring Advancement, Growth for U.S. Businesses By Ed Silverstein Exports may be the best financial journey for many U.S. businesses in 2008. But a word of caution: Companies need to explore carefully as they travel the world to take advantage of the promising global marketplace. Potential profits from exports are luring many corporate leaders this year thanks to a relatively weak dollar, global growth and the projected downturn in the U.S. economy. Manufacturers are among those expecting to see increased foreign sales, with particularly lucrative markets in countries such as China and India. Even some service industries are poised for foreign success. During the past 25 years, U.S. exports made an important contribution to the country’s economic growth—increasing five-fold from $224 billion to more than $1.4 trillion in 2006, according to the U.S. Department of Commerce. According to the latest 2007 U.S. International Trade in Goods and Services report, U.S. exports increased by 12.2% year-to-date (through October 2007) over 2006. “America’s exports are at a historic high and are driving U.S. economic expansion as well as creating jobs at home,” U.S. Commerce Secretary Carlos M. Gutierrez recently stated. “The world’s demand for top quality U.S.-made products is increasing at double-digit rates. Export growth has been a significant contributor to our six years of uninterrupted economic growth and record 51 consecutive months of job growth.” AllianceBernstein’s Joseph G. Carson, a senior vice president and director, global economic research, predicts that if U.S. exporters merely hang on to their current world market share, U.S. export sales will likely advance between 10% and 12% through the end of 2008. What does all this mean for the business world? "International markets are tremendous opportunities for companies,” says Pitney Bowes Inc. President and CEO Murray D. Martin. They allow for increased revenue and profitability, as well as hold opportunities for expansion and enhancement of goods and services, he explains. Pitney Bowes is a mailstream provider with $6 billion in revenue and more than 35,000 employees in 130 countries. The mailstream is a $250 billion global industry. Given the current economic reality, most businesses need to be involved with international trade to remain competitive within their industry. “You don’t have much choice. There’s so much growth outside the United States,” says Dwight Gertz, a lecturer in management in Babson College and a member of the executive management team at Celerant Consulting. In order to be successful, companies should learn some important lessons about exports and international trade. Exporting Is Hard Work Gertz reminds entrepreneurs that exporting is hard work. You cannot see the supplier face to face. You may not even speak the same language. You are dealing with foreign documents and will likely be in different time zones from business partners so you may have to talk to someone in the middle of the night. If you cannot justify the investment, the time, the money, the energy to do the extra work, you should not be investing, Gertz says.

vol. 4, no. 1 - January/February 2008

cover story

2008: Make Your Move

Global Trade Strategies Bring Advancement, Growth for U.S. Businesses

By Ed Silverstein

Exports may be the best financial journey for many U.S. businesses in 2008. But a word of caution: Companies need to explore carefully as they travel the world to take advantage of the promising global marketplace.

Potential profits from exports are luring many corporate leaders this year thanks to a relatively weak dollar, global growth and the projected downturn in the U.S. economy. Manufacturers are among those expecting to see increased foreign sales, with particularly lucrative markets in countries such as China and India. Even some service industries are poised for foreign success.

During the past 25 years, U.S. exports made an important contribution to the country’s economic growth—increasing five-fold from $224 billion to more than $1.4 trillion in 2006, according to the U.S. Department of Commerce. According to the latest 2007 U.S. International Trade in Goods and Services report, U.S. exports increased by 12.2% year-to-date (through October 2007) over 2006. “America’s exports are at a historic high and are driving U.S. economic expansion as well as creating jobs at home,” U.S. Commerce Secretary Carlos M. Gutierrez recently stated.

“The world’s demand for top quality U.S.-made products is increasing at double-digit rates. Export growth has been a significant contributor to our six years of uninterrupted economic growth and record 51 consecutive months of job growth.”

AllianceBernstein’s Joseph G. Carson, a senior vice president and director, global economic research, predicts that if U.S. exporters merely hang on to their current world market share, U.S. export sales will likely advance between 10% and 12% through the end of 2008.

What does all this mean for the business world?

"International markets are tremendous opportunities for companies,” says Pitney Bowes Inc. President and CEO Murray D. Martin. They allow for increased revenue and profitability, as well as hold opportunities for expansion and enhancement of goods and services, he explains.

Pitney Bowes is a mailstream provider with $6 billion in revenue and more than 35,000 employees in 130 countries. The mailstream is a $250 billion global industry.

Given the current economic reality, most businesses need to be involved with international trade to remain competitive within their industry.

“You don’t have much choice. There’s so much growth outside the United States,” says Dwight Gertz, a lecturer in management in Babson College and a member of the executive management team at Celerant Consulting.

In order to be successful, companies should learn some important lessons about exports and international trade.

Exporting Is Hard Work

Gertz reminds entrepreneurs that exporting is hard work. You cannot see the supplier face to face. You may not even speak the same language. You are dealing with foreign documents and will likely be in different time zones from business partners so you may have to talk to someone in the middle of the night.

If you cannot justify the investment, the time, the money, the energy to do the extra work, you should not be investing, Gertz says.

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