Is Your Company Ready to Take Advantage of Trade Opportunities?

(Read About the Export Excellence Fast Track Exporting Program Here)

Idaho companies exported nearly $1.1 billion in goods and services during the first three months of 2007, the highest three-month international sales total in state history. Total sales were up 26.2 percent from the first quarter of 2006, the fifth highest growth rate in the nation behind Montana, Maryland, Louisiana and Nebraska.

The state’s high-tech sector accounted for nearly 77 percent of Idaho’s exports with integrated circuits accounting for almost 75 percent of that amount. High-tech sales totaled $828.8 million, a 40 percent increase over the January-March period of 2006. Food and agricultural products accounted for another $120 million, a 7.9 percent increase.

While high-tech companies like Micron Technology and AMI Semiconductor account for the lion’s share of Idaho exports, over 1,000 Idaho companies are involved in international markets, selling hundreds of different products – everything from sporting goods and boats to rail cars and art.

Idaho companies sold goods to 110 countries around the globe, but Asia remained the state’s primary market. Seven of the top 10 purchasers of Idaho goods were Asian nations. They accounted for $755.3 million, or 70 percent, of all export sales.

China, including Hong Kong, remained Idaho’s largest trading partner, purchasing $206.2 million in products during the three-month period. That was the largest quarterly purchase ever by China. Nearly all of it was in high technology.

How Small Firms Can Join the Export Party

Making the decision to export requires careful assessment of the advantages and disadvantages of expanding into new markets, especially for small and medium-sized companies. But there are various sources that help you export your product or service on a shoestring budget. Look at the following numbers, which show that the number of small exporters is growing:

• Small and medium-sized firms account for the vast majority of growth in new exporters.
• Small and medium-sized companies account for almost 97 percent of U.S. exporters.
• Because nearly two-thirds of small and medium-sized exporters only sell to one foreign market, many of these firms could boost exports by expanding the number of countries they sell to.
• More than two-thirds of exporters have fewer than 20 employees.

Local Assistance

It is important to remember that you do not have to go it alone! Take advantage of local resources including the following:

• The Idaho District Export Council (DEC) at http://www.buyusa.gov/boise/dec.html seeks to increase exports through an extensive network of public and private resources. Providing free consultations, volunteer members include Micron, FedEx, MPC Computers, DHL, Simplot, PKG, SpecTec, U.S. Bank, Zions Bank and more.  Dec members are experienced pros who have extensive experience and SUCCESS with exporting. The DEC also hosts Idaho's annual World Trade Day.

  Contact: Jason Prince, DEC President & Associate at Stoel Rives LLP  at
  Phone: 208.387.4288
  E-mail: jeprince@stoel.com

• The Idaho State Department of Agriculture at http://www.agri.state.id.us/Categories/Marketing/marketinginternational.php can help with education, trade leads, trade offices, trade shows, buying missions, trade missions and trade policy.
  Contact: Laura M. Johnson, Marketing Section Manager
  Phone: (208) 332-8533
  Email: ljohnson@agri.idaho.gov
   

• Idaho International Business Division at http://trade.idaho.gov is a state organization that identifies prospects for Idaho products in key international markets and helps Idaho companies capitalize on these opportunities.

  Contact: Damien Bard , Division Administrator
  Email: damien.bard@trade.idaho.gov
  Phone: (208) 334-2650 ext. 2116 

• The U.S. Commercial Service Boise at http://www.buyusa.gov/boise is part of a national network dedicated to helping small-to-medium sized businesses realize their export potential. International Trade Specialists help you identify and evaluate international partners, navigate international documentation challenges, create market entry strategies and assist with other export related guidance.
  Contact: Amy Benson, USEAC Director
  Phone: (208) 364-7791

  Email: Amy.Benson@mail.doc.gov

Planning

Once the decision is made to export, it is essential to develop an international marketing plan. An international marketing plan will allow you to develop an export strategy and plan your budget around that strategy. For assistance in developing an international marketing plan, please visit A Small Business Guide to Exporting. You can also find assistance at Developing a Marketing Plan.

Marketing

Thorough market research is also necessary when you begin exporting. The purpose is to identify marketing opportunities abroad as well as to identify prospective buyers and customers. Use market research to determine your product’s potential in a given market, the best prospects for success, and the market’s business practices before you export. If you are just beginning to sell internationally, narrow your focus by concentrating on no more than two or three best-prospect markets. Please visit A Step-by-Step Approach to Market Research and use this research guideline to get you started.

Financing

Financing options are available. There are two types of financing programs that help exporters finance their costs related to exporting. The Export-Import Bank (Ex-Im) of the United States and the U.S. Small Business Administration (SBA) offer the Export Working Capital Loan Guarantee Program (EWCP). The EWCP was developed to help business obtain private sector loans to meet their transaction financing needs through short-term working capital. EWCP guarantees are transaction specific, to be used to finance actual orders that companies have received from overseas customers, however they can be used for single or multiple transactions. Please visit Access Financing for Export Operations for more information. SBA and Ex-Im have a variety of loan products that may assist in executing your international strategy.

Additional Export Resources:

• Free guide to U.S. Export Programs is available here - http://www.export.gov/exportprogramsguide/

• The U.S. Government Export Portal at http://www.export.gov/ provides a wealth of export information.

• The Idaho State Department of Agricultureat http://agri.state.id.us/ can help with education, trade leads, trade offices, trade shows, buying missions, trade missions and trade policy.

• Click here for other valuable export links

• Commercial Country Guides