The Atlanta Journal-Constitution
Map your export value, plot a course
With little economic growth in the state and region, companies need to work hard to find new opportunities here at home. On the other hand, many parts of the world have seen a pretty good recovery already. Even with China’s slowdown, the economy is likely to still grow at 6.7 percent in 2016 and as long as China hovers around 7 percent growth per year it will double the size of its economy again in only a decade.
The Metro Atlanta Export Plan shows that markets outside the U.S. make up 95 percent of the world’s consumers with 80 percent of global purchasing power. Global middle-class consumption will reach $35 trillion by 2020. Not surprisingly, small- and medium-sized manufacturers that took advantage of export opportunities showed an average revenue growth of 37 percent in the last decade.
Georgia companies are in the fortunate position that they have access to excellent resources when contemplating exporting. The challenge is not so much to find the opportunities for growth, but rather to adequately prepare and position oneself to take advantage of the opportunities.
How, then, do Georgia corporations and firms glean value from exporting?
One approach is to draw a map of your surroundings to better understand the export environment and then to plot a course to your destination. You start the map with the ex- cellent infrastructure that forms the Georgia landscape and then mark some important “landmarks” such as the key service providers, partners, agencies, suppliers and customers on your company’s export map.
Every day the busiest international airport brings people to Atlanta and takes Georgians all over the world. Similarly, the facilities of the Georgia Ports Authority and freight services through Hartsfield-Jackson International Airport serves the supply chains of commodity goods and perishable exporters, heavy equipment manufacturers and specialized manufacturers alike. This trade infrastructure is critical to the continued growth of our exports. Companies can participate either by using these resources to export their own products or services or by becoming part of the value chains of those already participating.
With the premier state economic development unit in the country, companies can count on valuable help to grow exports. There is at least one exporter in all but a handful of counties in our state, thanks to the diligence of the Georgia Department of Economic Development. Others prefer to keep the government out of their business and there are many who are successful this way. Either way, there is likely someone who exports right in your back yard.
Quite often a banker, accountant or lawyer is the first person asked for advice when a company considers exporting and these professionals will often tag along the entire ride as the company explores international sales. Becoming part of someone else’s export is therefore another way of gleaning value.
Professionals are critical to export success in areas such as licensing of intellectual property, franchising, consulting, as well as financial, tax and accounting services. Since professional services make up a significant part of the metro Atlanta economy, the access to experienced advisors allows Georgia companies to avoid many obstacles as they learn how to export.
Large numbers of tourists and conventioneers visit the metro area every year where Georgia companies have the opportunity to interact and learn about their business needs and interests. Along with the revenues generated by the airports and hotels, companies that provide services needed to support travelers make up a significant component of Georgia exports. Every dollar an international passenger, visitor, diner or tourist spends in Atlanta is a service export. If you can offer value to them, you can be part of that bonanza.
Once you have a map of the terrain and landmarks, you need to plot a course. Many of the resources already mentioned as well as a host of others would love to help you in this process.