For companies that have never exported their products or services internationally, the process can seem daunting. However, the payoff is worth it.
Here are ten reasons why you should consider getting into the export business:
- 95% of global consumers are outside of the U.S.
If a U.S. business is only selling domestically, it is not reaching the majority of potential customers.
- Free trade agreements (FTA) with 20 countries
Free Trade Agreements make it easier and cheaper for you to export your product or service by reducing barriers to U.S. interests abroad, and creating a more stable and transparent investment environment.
- U.S. products have a competitive advantage
The U.S. is known for its high-quality goods and services, and Kentucky-made products are no exception. Whether it is glass, automobiles, bourbon, or transportation equipment, the world wants Kentucky-made products.
- Develop economies of scale
Exporting allows businesses with excess production capacity to produce more goods and spread costs across multiple markets, thus achieving economies of scale.
- Spur innovation
Exposure to new technologies, customer requirements, cultural environments, and more competition can all help boost creativity and innovation.
- Mitigate risk
Exporting helps companies diversify their revenue streams and reduce dependence on the domestic market. As a result, companies that export have an easier time riding out fluctuations in the U.S. economy.
- Derive benefits from seasonality
Businesses that sell seasonal products, particularly farmers and agribusinesses, can use exporting to turn idle inventory into sales and generate year-long revenue helping level out seasonal fluctuations in product demand.
- Extend product life cycle and expand sales
A product may become obsolete in one market, but still have relevance in another. By exporting that product overseas, companies can extend the life cycle of a product and maintain a steady revenue stream even when they reach saturation in domestic markets.
- Increase productivity
Exporting can expose your business to new ideas and business processes and provide opportunities to improve your knowledge and increase your competitiveness. Together, these advantages can increase the productivity of your business.
- Enjoy faster growth
Exporting can be profitable for businesses of all sizes. On average, because exporting companies have a broad, diverse customer base, their sales grow faster, more jobs are created, and employees earn more than in non-exporting firms.
High global demand for Kentucky-made products and services has made exporting an approximate $26 billion industry in the Bluegrass State. Let the Kentucky Export Initiative partners help you navigate the international marketplace.