U.S. small and medium-sized enterprises (SMEs) accounted for about 30 percent of known U.S. merchandise exports between 1997 and 2007, reports the U.S. International Trade Commission (USITC) in its report Small and Medium Sized Enterprises: Overview of Participation in U.S. Exports.

The most heavily exported goods were computer and electronic products, machinery, and chemicals, with the biggest share of merchandise exports going to Canada and Mexico, according to the report.

The USITC, an independent, nonpartisan, factfinding federal agency, completed the report at the request of the U.S. Trade Representative. As requested, the USITC provided an overview of SME characteristics, including their role in generating domestic jobs and economic activity; described the value of overall SME exports; listed the principal products, industries, and destination markets involved; and highlighted data gaps that inhibit a complete understanding of SMEs' role in U.S. exports. Highlights of the report follow.

• SMEs accounted for approximately 30 percent of known U.S. merchandise exports between 1997 and 2007 and about half of private nonagricultural gross domestic product (GDP) between 1998 and 2004.
• Top merchandise export categories for SMEs in 2007 were electrical products, machinery, and chemicals; these goods were primarily exported to Canada and Mexico. Wood products and apparel and accessories were the sectors with the highest concentrations of SME exports.
• Canada and Mexico were the largest destination markets for U.S. merchandise exports from firms of all sizes, including SMEs, in 2007.
• Much of the growth in SME merchandise exports between 1997 and 2007 was attributable to an increase in the number of net new market entrants SMEs that were new to exporting. Export growth from large firms, by contrast, resulted almost exclusively from increases in the value of exports by existing firms.
• Judging by patterns of cross-border exports and the operations of U.S. affiliates abroad, it is likely that Canada and the United Kingdom were among the largest markets for U.S. SMEs' services exports in two important fields (finance/insurance and professional services) in 2006-2008.
• The lack of information concerning the size of the manufacturing firms that provide SME wholesalers with their goods for distribution and the absence of published data on SME services sector exports have inhibited a more extensive analysis of the role that SMEs play in U.S. exports.

Click here to view USITC's Report - Small and Medium-Sized Enterprises: Overview of Participation in U.S. Exports.

A CD-ROM or printed copy of the report may be requested by emailing pubrequest@usitc.gov, calling 202-205-2000, or writing to the Office of the Secretary, U.S. International Trade Commission, 500 E Street, SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.

December 11, 2009 WICHITA, Kan. – “No more plans that sit on a shelf.”

That was the directive given to partners involved in a program funded by a federal grant originally intended to study the feasibility of an intermodal facility in Wichita. Instead, after the first phase determined the facility could not be supported locally, a new approach was taken.

Called “IntelliPORT,” the online resource is designed to provide a virtual international trade processing center – complete with access to training and education, peer-to-peer networking and cooperative services that ultimately could help businesses lower costs and increase their bottom line when it comes to international trade. The product launches this week.

“This is a tremendous resource for businesses who are interested in learning how to work in international markets, as well as those who already do a high volume of international business,” said Karyn Page, President and CEO of the Kansas World Trade Center (KWTC), which operates IntelliPORT and houses the set of tools on its website (www.kansaswtc.org). “We look forward to working with more businesses to help them take their efforts to the next level.”

Originally funded with a federal grant spearheaded by Rep. Todd Tiahrt, the original scope of the project was to determine the feasibility of an international trade processing center, a bricks-and-mortar type project that could house intermodal facilities, as well as resources that help businesses conduct international trade.

However, after looking at freight flow studies, assessing resources, reviewing the modal connections and extensively surveying and discussing options with the business community, the study determined construction of an international trade processing center could not be supported in the region. The volume of trade simply did not meet the minimum required to sustain a facility.

Still, businesses did see the need for more services to help them in the international trade market, particularly in training and education and access to cooperative services in the transportation industry.

“International trade is tremendously important to our local economy,” said Rep. Todd Tiahrt. “We are excited to see how this state-of-the-art processing center will help businesses increase their trade and lead to more jobs for Kansas workers. From aviation to agriculture, this investment will play an important role in spurring new international sales for local businesses.”

The primary contractor for the project was TranSystems, a transportation consulting company with headquarters in Kansas City and an office in Wichita. Designed and programmed by local interactive agency Howerton+White, the IntelliPORT concept was directed by a business leaders working group made up of representatives from local companies that import or export goods and services in international markets.

“Our company relies on a sophisticated workforce internally and externally when it comes to international trade,” said Rob Richardson, chief operating officer for BG Products Inc. “The tools that IntelliPORT provides assists us by offering our employees training and education that is critical to help us serve our distributors and continue to succeed in the competitive global marketplace.”

“We also expect the IntelliPORT resources will be valuable for our colleagues in the region, as well as foreign companies looking to do business in our area,” he added.

IntelliPORT brings customized data to business users based on areas of interest. A “dashboard” quickly organizes information related to regulatory updates, classes for training and education, blogs and forums and news and other events. Access to IntelliPORT is free for businesses that complete the registration process. For the first six months, new users can take advantage of an introductory offer and receive 10 percent discounts on services provided by the Kansas World Trade Center.

Wichita Mayor Carl Brewer said he was pleased to see new attention focused on the importance of international trade. The city was administrator for the federal grant.
“This will allow us to grow our current businesses, while putting Wichita on the map for companies in other countries who would benefit from the high quality of our goods and services,” he said.

For a limited time, IntelliPORT is free to businesses who sign up as registered users. Go to www.kansaswtc.org for more information.

The Kansas World Trade Center is a private, non-profit organization that promotes and facilitates international trade in the state of Kansas through education, research and communication.