Trade is helping small exporting companies grow

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Throughout the United States, small and midsize exporters are thriving, selling their products to international customers, gaining market share and creating jobs.

“The market that exists outside of the US is substantial. Any company in the Midwest or the US can minimize their risk by spreading their customer network as wide as possible,” says Tom Dustman, director of international sales for Sunnen, a manufacturer based in St. Louis, Missouri. “In today’s world, we can ship by air to Chicago, or we can ship by rail to a port on either coast and then load it onto a ship.”

As America celebrates World Trade Weekit’s worth asking local business leaders what they think about trade and it quickly becomes clear: They all support a bold American trade agenda.

“I know a lot of people will say, ‘Oh, you’re going to lose your job. You are going to lose companies. You’re going to lose this, you’re going to lose that.’ I don’t think so,” says Jonathan Szucs, president of Advanced Superabrasives, Inc. based in Mars Hill, North Carolina. “What makes American products and services different is our creativity, our ingenuity, our ability to produce efficiently and effectively…Therefore, I appreciate competing against foreign competitors, whether they are in Europe, Asia, or North America. South”.

Szucs adds that every day he sees neighboring small businesses in the mountains of western North Carolina selling kayaks, mountain bikes and outdoor gear around the world.

Although many see large companies as the most involved in international trade, in reality the opposite is true: small companies represent 97% of all exporters and 33% of the known export value ($413.3 billion). For example, Szucs estimates that about 20% of his company’s annual revenue comes from international clients.

Another advocate of seizing business opportunities is Bill Palmer, a compliance officer at Rosenbauer America, which makes fire trucks and similar vehicles in South Dakota, Minnesota and Nebraska.

Palmer says that without the United States-Mexico-Canada Agreement, which went into effect in 2020, your company would face a 6.5% tax on every truck it shipped to Canada. With the cost of his vehicles ranging from $250,000 to $2 million, that fee would have made exports to Canada virtually impossible.

“That 6.5% would completely put us out of competition with Canadian manufacturers,” says Palmer.

The impact of the T-MEC on other small and medium exporters has been similar. Szucs says that after the approval of the T-MEC, his company made more exports in one year (2021) than in the last 15 years combined. As a result of this success, his company opened new sales offices in both Canada and Mexico to grow its business abroad.

“USMCA has removed a lot of barriers…In Canada we have seen about a 25% increase in revenue since USMCA was implemented,” says Szucs.

Palmer says that small exporters located anywhere in the US can benefit from exporting, and if they’re not looking for international clients, they’re missing out.

“It doesn’t matter where you are in the United States, especially with today’s technology. Having the option to export is very great for any in the United States,” says Palmer.

One thing Szucs wishes policymakers in Washington were more aware of is the vital importance of an adequately funded and staffed America. Department of Commerce.

“I wish members of Congress would understand that the US Department of Commerce is an extension of our sales team,” Szucs said. “Without business services group and specialists in international trade, we would not be as big an exporter as we are”.

Dustman says that about 45% of his company’s total sales come from international customers and that there is a constant demand for “Made in America” ​​products around the world.

“The international market in general wants the reliability and quality of American-made products,” says Dustman. “International trade, and free trade, are extremely important to the strength of the US economy, to the employment of our people, and to the benefit of the global marketplace.”

About the authors

thaddeus swanek

Senior Writer and Editor, Strategic Communications, US Chamber of Commerce

Thaddeus is a senior writer and editor for the US Chamber of Commerce Strategic Communications team.

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