May 14, 2007
COMMENTARY: Ready, set, export | More Maine companies are taking advantage of international trade — is yours?
By Janine Bisaillon-cary, President
Maine International Trade Center, Portland
Exporting isn't just for the biggest companies on the block. Fact is, Maine has more than 1,600 companies exporting to 169 international destinations ˆ and most of our exporters are actually small companies with less than 75 employees. These days, companies with experience selling their products regionally or nationally are well-positioned to take advantage of international trade.
Exporting can be financially rewarding and can increase companies' sales exponentially, but it can also be a lengthy and complex process. With more Maine companies becoming active in international trade, more need help getting started.
The Maine International Trade Center, formed in 1996 and located in Portland with regional offices in Lewiston and Bangor, is Maine's hub for export assistance. MITC offers a three-tiered export assistance program comprised of trade consulting, education seminars and overseas market access programs.
The best place to start for companies interested in exporting is via our trade consulting service. A small business owner usually will contact us after meeting prospective overseas buyers at a national trade show or after receiving an international inquiry via the Internet. Their question: What do I do now?
For starters, MITC can help by reviewing the company's product and its usage in the marketplace. In this initial meeting, we also discuss successes the company has had already, its competitors, and its presence in international markets. MITC also can review the necessary logistical components for a company shipping to a foreign destination, including specifics for packing and labeling exports. For example, many countries require heat treating or fumigating wooden pallets prior to shipping to avoid transferring agricultural pests across borders, while many importers in Europe are now requesting plastic food-grade pallets for agricultural and food shipments.
Logistics and documentary needs have been changing with both increased port security as well as more stringent health requirements. Once some of the basics of exporting are reviewed, MITC begins the process of researching and providing information specific to overseas target markets, including a review of American and Canadian export figures to determine which countries currently purchase similar products.
Next, we'll conduct market research on those target countries and review regulatory issues for each country. Documents needed to clear entering goods vary from country to country, as do duties, tariffs and import quotas. Information on these subjects are also provided so exporters can estimate what the costs will be to the end user or buyer, as well as any restrictions on volumes that can be shipped.
MITC recently worked with a small organic products producer in the midcoast. The company had unexpectedly received an international order through its website ˆ the first export it had ever done. The success of that unplanned experience prompted the company to take a more proactive approach to international markets. By knowing the product and its usage, along with other basic information such as existing distribution channels and a typical customer's profile, MITC was able to determine that Spain would be a great market for the product. Armed with that information, MITC could start the process of generating a report on the Spanish market, complete with basic technical information and even names of potential customers.
Many companies take advantage of MITC's monthly Trade Education seminars covering such topics as how to do business in the European Union. These programs feature experts on sales in international markets, financial tools necessary to export (and how to use and understand them), and business and negotiation techniques for different foreign markets and cultures.
Once a company has identified the markets for its products, a good way to make inroads is to participate in a trade mission or overseas trade show. Trade missions are a hands-on way for companies to learn about new export markets, establish contacts with the US Department of Commerce's posts abroad, and meet with importers or agents interested in its products.
Maine companies have participated in general and industry-specific missions to Europe and Latin America in the past six years and have reported over $25 million in projected sales. In response to growth markets in Asia, MITC recently organized missions to trade shows in Shanghai and Guangzhou, China, for Maine's boatbuilding and wood products sectors, and this fall is developing a gubernatorial trade mission to South Korea and Japan.
With 95% of the world's population and two-thirds of its purchasing power residing outside the United States, international trade should be a part of most companies' overall growth strategy. Using resources available in Maine, and working through the exporting process step by step, will help a company avoid the pitfalls and develop a successful export program.
Exporting isn't just for the biggest companies on the block. Fact is, Maine has more than 1,600 companies exporting to 169 international destinations ˆ and most of our exporters are actually small companies with less than 75 employees. These days, companies with experience selling their products regionally or nationally are well-positioned to take advantage of international trade.
Exporting can be financially rewarding and can increase companies' sales exponentially, but it can also be a lengthy and complex process. With more Maine companies becoming active in international trade, more need help getting started.
The Maine International Trade Center, formed in 1996 and located in Portland with regional offices in Lewiston and Bangor, is Maine's hub for export assistance. MITC offers a three-tiered export assistance program comprised of trade consulting, education seminars and overseas market access programs.
The best place to start for companies interested in exporting is via our trade consulting service. A small business owner usually will contact us after meeting prospective overseas buyers at a national trade show or after receiving an international inquiry via the Internet. Their question: What do I do now?
For starters, MITC can help by reviewing the company's product and its usage in the marketplace. In this initial meeting, we also discuss successes the company has had already, its competitors, and its presence in international markets. MITC also can review the necessary logistical components for a company shipping to a foreign destination, including specifics for packing and labeling exports. For example, many countries require heat treating or fumigating wooden pallets prior to shipping to avoid transferring agricultural pests across borders, while many importers in Europe are now requesting plastic food-grade pallets for agricultural and food shipments.
Logistics and documentary needs have been changing with both increased port security as well as more stringent health requirements. Once some of the basics of exporting are reviewed, MITC begins the process of researching and providing information specific to overseas target markets, including a review of American and Canadian export figures to determine which countries currently purchase similar products.
Next, we'll conduct market research on those target countries and review regulatory issues for each country. Documents needed to clear entering goods vary from country to country, as do duties, tariffs and import quotas. Information on these subjects are also provided so exporters can estimate what the costs will be to the end user or buyer, as well as any restrictions on volumes that can be shipped.
MITC recently worked with a small organic products producer in the midcoast. The company had unexpectedly received an international order through its website ˆ the first export it had ever done. The success of that unplanned experience prompted the company to take a more proactive approach to international markets. By knowing the product and its usage, along with other basic information such as existing distribution channels and a typical customer's profile, MITC was able to determine that Spain would be a great market for the product. Armed with that information, MITC could start the process of generating a report on the Spanish market, complete with basic technical information and even names of potential customers.
Many companies take advantage of MITC's monthly Trade Education seminars covering such topics as how to do business in the European Union. These programs feature experts on sales in international markets, financial tools necessary to export (and how to use and understand them), and business and negotiation techniques for different foreign markets and cultures.
Once a company has identified the markets for its products, a good way to make inroads is to participate in a trade mission or overseas trade show. Trade missions are a hands-on way for companies to learn about new export markets, establish contacts with the US Department of Commerce's posts abroad, and meet with importers or agents interested in its products.
Maine companies have participated in general and industry-specific missions to Europe and Latin America in the past six years and have reported over $25 million in projected sales. In response to growth markets in Asia, MITC recently organized missions to trade shows in Shanghai and Guangzhou, China, for Maine's boatbuilding and wood products sectors, and this fall is developing a gubernatorial trade mission to South Korea and Japan.
With 95% of the world's population and two-thirds of its purchasing power residing outside the United States, international trade should be a part of most companies' overall growth strategy. Using resources available in Maine, and working through the exporting process step by step, will help a company avoid the pitfalls and develop a successful export program.
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