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Press Release – February 24, 2009Quick Links The Saint Vincent College SBDC client's innovation was named one of Heavy Duty Trucking's "Nifty Fifty."In a Down Economy, Trading Is Up PHILADELPHIA – A favorable market for US exports proved to be a highlight of an otherwise tumultuous year for small businesses. The Pennsylvania Small Business Development Centers (SBDC) report client overseas sales increased over 100 percent in 2008, representing a $52 million boost. With the domestic sales falling and the dollar dropping in value against other currencies, business owners sought to diversify their customer base and plumb markets abroad. Many, however, had no experience with international trade. The US Small Business Administration Office of Advocacy notes small firms have “room for growth” when it comes to exporting. In the 2008 edition of The Small Business Economy: A Report to the President, Chief Economist Chad Moutray writes, “Small businesses have often ignored the international marketplace because they could. In a globalized economy, more and more small firms will need to consider export opportunities as an important key to survival and growth.” Many already have. The statewide consortium of 18 college- and university-based centers, based at the University of Pennsylvania’s Wharton School of Business, has introduced thousands of small businesses to overseas markets through its no-cost business assistance services. Rilton, Pa.-based Harry E. Smith & Associates, Inc. is one. Established in 1975, the company markets and distributes material handling equipment and complementary products, including Stop N’Hold©, a jack stop designed to protect valuable freight and equipment from damage. A former winner of Heavy Duty Trucking’s “Nifty Fifty” Award, the product is well-known in the industry and distributed nationally. Looking to grow sales, President Harry Smith turned to the Saint Vincent College SBDC’s Center for Global Competitiveness to take the concept abroad. Company personnel attended the Center’s International Trade Series which introduced heady subjects: Market research, transaction documentation, market entry and promotion, export finance and risk mitigation, compliance and international regulations. “Much of what we do lies in demystifying the process,” James Kunkel, Executive Director of the SBDC described. “It can be incredibly lucrative to go overseas, but it can also get incredibly complex.” Smith then connected with the SBDC’s Senior Market Analyst, Vickie Gyenes, for one-on-one help. Gyenes helped Smith research potential distributors and begin the process, including promoting the product in Commercial News USA so the company could test international market interest. The publication generated several leads. The SBDC worked closely with Harry E. Smith & Associates, Inc. to screen the leads, assisting with quotations, documentation and customs clearance as needed. The company soon assigned its first distributor to cover the United Kingdom and Ireland. “We are very thankful for the assistance and continued guidance throughout the whole process,” Smith said. In December, the company secured its first international order; Stop N’Hold© shipped across country lines in January. “Export sales start small and build from there,” Gyenes noted. “I expect the up-front work, persistence and care to enter international markets properly will pay off for them.” Pennsylvania exports were up as a whole, showing a 20 percent increase over the previous year. According to the U.S. Census Bureau, Pennsylvania exports increased from $15.3 billion in 2002 to $32 billion in 2008. Pennsylvania is the 11th largest exporting state, reporting growth in exports for petroleum products, coal, iron and steel alloys, vehicles, aircrafts, scrap metal and machinery. “In this sour economy, this is very good news,” Governor Edward G. Rendell said. “Exports in Pennsylvania are playing an increasingly important role in the state’s economy. About the Pennsylvania SBDC Related Pennsylvania SBDC International Business AssistanceGovernor Rendell Says Newest Figures Show Substantial Increase in Pennsylvania Exports SBA Office of Advocacy’s The Small Business Economy: A Report to the President |
