Opinion1: Mass. companies look to international markets
By Israel Hernandez
Health Enterprises of North Attleboro is one example of the rising trend among Massachusetts businesses that are experiencing growth and success by expanding their export sales. Last year, Massachusetts' exports topped $24 billion, a 45 percent increase since 2002. And with help from the Department of Commerce's U.S. Commercial Service, more Bay State companies continue to boost their bottom lines by selling internationally.From 2002 to 2006, exports from the state have increased to many top destinations, including Germany (109 percent), China (235 percent), Mexico (46 percent), Britain (25 percent) and South Korea (86 percent).
Health Enterprises is one of the Bay State's top medical supply manufacturers. Upon contacting the U.S. Commercial Service office in Boston, Health Enterprises met with international trade specialists employed by the U.S. Commercial Service, a division of the Commerce Department's International Trade Administration.
Health Enterprises was provided with export counseling, market research, promotion of products to potential buyers at trade shows, and introductions to qualified buyers and distributors.
In only three short years, Health Enterprises has located distributors in Canada, Mexico, Latin America, the Middle East, Europe, and Asia. Its Acu-Life brand has grown into a leading name in Ireland, Israel, Venezuela, Australia and Cypress. Export sales account for more than 15 percent of total company sales and have increased more than 40 percent in the last three years.
While thousands of companies such as Health Enterprises continue to boost their bottom lines by selling internationally, many more U.S. companies have yet to do so. If your firm has not yet explored the realm of "proactive" exporting, there's no better time to start. Consider the following:
• More than 70 percent of the world's purchasing power - and 95 percent of its population - are beyond U.S. borders.
• Free trade agreements, together with ease of transportation, the Internet, and government programs and partnerships continue to simplify the export process.
• If your company is not exporting, it's highly likely your competitors are or will be. Exporting enables companies to diversify their portfolios and weather changes in the marketplace.
• Nearly two-thirds of all U.S. exporters only sell to one foreign market, so many of these firms could boost exports by expanding the number of countries they sell to.
The ill-conceived notion that exporting is an activity limited to only large corporations is widespread, and continues to deter many smaller companies. However, more than two-thirds of exporters have fewer than twenty employees. Health Enterprises has a staff of approximately 30 employees.
If your company is not exporting or has only a very limited international presence, there are many options and opportunities to expand. With a network of more than 100 domestic offices and offices in 80 countries, the U.S. Commercial Service helps American companies export through counseling and other services and protects U.S. business interests abroad. In 2006, the Commercial Service network generated nearly 12,000 export successes, facilitating billions of dollars in U.S. export sales. For more localized information about your company and exporting out of Massachusetts, call 617-424-5990 or visit www.buyusa.gov/massachusetts.
Israel Hernandez is assistant secretary for trade promotion and director general of the U.S. and Foreign Commercial Service.
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