If you’re a small to mid-size manufacturer, you’re always looking for ways to identify new customers and increase sales.
One, often overlooked, avenue is the export market. You may have thought about exporting, but never gave it much effort because of the perceived complexities involved in entering foreign markets.
While there are some hoops that have to be jumped through, the rewards can be well worth the effort. A UPS survey of small and medium-sized exporters reported that “nearly two-thirds (64%) of exporters polled saw a financial return within two years.” The study also found that “34% saw a financial return in less than six months.” Additionally, “About two-thirds (66%) reported that up to 25 percent of their annual revenue comes directly from exporting.”
Improving Sales and More
And while increasing sales is a top priority for many manufacturers, exporting can help businesses in many different ways. Understanding the needs of consumers from different markets can lead to experiences that can ultimately help manufacturers develop new processes, technologies and skills. Engaging with customers overseas also challenges American manufacturers to become more innovative. Working with foreign customers can ultimately help you test new methods for producing materials or introduce new product lines.Did you know 97% of exporters are actually small & mid-sized businesses? #exporting #mfg
Exporting Isn't Only for Large Manufacturers
There is also a common misconception that only large manufacturers can enter the export market. This couldn’t be further from the truth. According to the National Association of Manufacturers, 97% of exporters are actually small or mid-sized businesses. Furthermore, it is estimated that more than two-thirds of exporters have fewer than 20 employees. Manufacturers should consider engaging in exporting initiatives today and see their organization:
- Increase sales
- Spark innovation
- Broaden seasonality
- Introduce new products
- Develop new processes and technologies
- Lower business risk – While going international is often perceived as a risky decision, statistics prove that exporting diversifies your company’s risk levels.