15 Reasons To Start Exporting

In our modern day and age, where international trade is becoming increasingly common, it is becoming more practical than ever for companies to start exporting and selling their products outside the United States. Despite the economic slowdown during the global pandemic, the value of exports of the United States has continued to increase, from $1.35 trillion in 2016 to $1.63 trillion in 2021.???

With recent trade agreements and improvements in the logistics and freight industries, exporting is easier and more viable than ever. Looking to export but are still uncertain? Let’s delve into the key reasons you should consider exporting!?

1. More Customers

As of today, there are 313 million people in the USA and 7 billion in the world. In fact, more than 95% of the world’s consumers and 84% of spending power are located outside the United States, and exporting can allow you to reach these 95% of consumers. More people means more opportunities awaiting in world markets.

2. More Profit?

With more customers, naturally comes more sales and increased profits.

3. Improve Cash Flow

Typically, many USA exporters are paid by wire transfers in advance or under letters of credit. This can lead to a drastically improved cash flow, as compared to domestic sales.

4. International Desire for USA Goods and Services

Goods and services coming from the United States are known for their high quality and are much sought after. This can give your company a competitive advantage and you can make use of the strong USA “brand” to win appeal in global markets.

5. Lengthen Product Lifecycle

If your product is losing market share due to technology or other factors that are limiting your product lifecycle, exporting could lengthen the product’s lifecycle by developing new customers in emerging markets.

6. Broaden Customer Base

Exporting can also broaden your customer base, by generating demand in alternative markets. This can reduce your business risks during any potential slowdown or disruption that occurs in your domestic market.

7. Manage Seasonal Slowdowns

Similarly, exporting allows you to sell to other markets that are complimentary to your domestic customers’ seasons.

8. Increasing Productivity and Economies Of Scale

Extending your product life cycles, growing your customer base, and avoiding seasonal downturns (reasons 5, 6, and 7 above) via exporting allows companies to staff and schedule in a manner that not only increases productivity but allows for

greater economies of scale. It has been found that exporting companies tend to enjoy greater productivity.?

9. Benefits Your Firm and Others

Exporting not only benefits you and your company, but also the local markets that you operate in, your region, and the nation. Exports are a well-known driver of many positive economic indicators — most importantly, job growth, as sales grow faster and more jobs are created with exporting. Many things that are learned and developed internationally can further serve your domestic clients with improved products and services.

10. Many Quality Transportation Service Providers

Many companies may be apprehensive about getting into exporting, especially as first-time exporters. However, Jade International has excellent relationships with steamship lines, terminal and warehouse companies, international bankers, and insurance firms that are eager to assist you with your exporting needs.

11. Space Available

With recent supply chain disruptions, there have been many issues of empty containers piling up in ports and ships leaving ports partially empty. The steamship lines (and airlines) are looking for cargo, so they can fill the empty space.

12. Free Trade Agreements

The USA has signed Free Trade Agreements with 20 countries, allowing for easier movement of goods across borders. FTAs offer better access and lower tariffs to American exporters.?

13. One Foreign Sale Leads to More Sales

The first step is always the hardest. Once you get that first export sale, the rest are easier. Many American companies start off exporting to a well-known and similar market, such as Canada, the UK, or Ireland. Then, once you learn the routine, you can broaden your export sales to more countries.

14. Alternative Sourcing

Exporting is also a way for companies to get more comfortable with global markets, where they can find alternative sources of raw materials and components for manufactured goods. You can import raw materials and then export your finished products, often using the same containers.?

15. Export Promotion Help

The World Trade Center of Greater Philadelphia and the US Export Assistance Center have many resources available to help companies with their exports. They provide counseling, market research, inbound and outbound trade missions, and grants to attend trade shows. The Philadelphia Regional Port Authority can also give you advice on your exporting needs.?

Ready to start exporting? Here at Jade International, as a comprehensive freight management company, we are ready to help your business with global trade and exporting needs. To learn more, reach out to us here or give us a call at (610) 522 9300.?