From Deseret News archives:
Small firms account for an increasing share of U.S. exports
American businesses without international subsidiaries accounted for 46 percent of sales abroad in 2005, up from 38 percent in 1999, according to a Commerce Department analysis published last week. The trend is likely to continue, helping cushion the economy from the worst housing recession in 16 years, economists said.
"We are at a six-month backlog now, and we have been for over a year," said Leon Trammel, chairman of Tramco Inc., a maker of conveyor belts in Wichita, Kan. "Our business is just great."
After exporting his first belt to the Netherlands on an impulse 35 years ago, foreign sales will be almost half of his firm's projected $40 million in sales this year, Trammel said.
Faster global communications and fewer trade barriers have enabled businesses like Tramco, with few or no factories overseas, to take advantage of the strongest global economy in almost three decades. Private companies with less than 500 employees account for all the jobs created since 2005, according to figures from ADP Employer Services.
Exports have set records in each of the past seven months, the longest surge since 2000, according to the Commerce Department's monthly trade report. Trade contributed more to growth in the second and third quarters than in any similar period since 1990 and 1991.
Smaller firms may help exports double their contribution to the economy and add a full percentage point to growth in 2008, according to a forecast by Joe Carson, head of global economic research at AllianceBernstein LP in New York.
"Since it takes time to build up foreign contacts and distribution channels, these firms are probably just starting to develop their export potential and will reap benefits in the future," Carson said. "There is a learning process here that everyone has to go through."
Advances in communications, such as the Internet and cell phones, have been an important factor opening opportunities for smaller firms, said Tramco's Trammel, who employs 140 workers, most in Wichita.
Trammel took the export plunge after touring a former client's factory in Europe and realizing the company could benefit from installing his conveyor belts. For the next 10 years "our international sales consisted largely of my ability to travel," Trammel said. The company now has clients in 52 countries.
Comments
- 1A championship: Rich undefeated 11:34 p.m.
- 1A: Rich defense rises to occasion 11:31 p.m.
- Pacquiao stops Cotto to win 7th title 11:26 p.m.
- NFL Sunday 11:25 p.m.
- 9/11 trial - parable of right, wrong 11:24 p.m.
- Gitmo detaines headed to the U.S. 11:23 p.m.
- Utah Grizzlies win 11:19 p.m.
- Around the NFL 11:18 p.m.
- Trip to remember for this Titan 11:16 p.m.
- Iraq urged to help refugees 11:15 p.m.
- Apostle's wife felt comfort in attack
- Can BYU root for (ick) Utah Utes?
- Short-handed Jazz fly past Sixers
- D-Will home for daughter
- Bench proves fruitful for Y.
- Utes excited for 'dream' game
- Crash on snowy road kills woman
- Born of water and the spirit
- GameDay in Fort Worth
- BYU happy to escape with victory
- SLC council OKs gay rights policies
358 - Editorial: Mormons and gay rights
200 - BYU happy to escape with victory
192 - Senators want food tax restored
165 - Will state consider gay rights law?
148 - Can BYU root for (ick) Utah Utes?
130 - Letters: Strange breed in Utah
129 - Utes remain silent about BCS
120 - TCU plows past Utes, 55-28
118 - S.L. vote pending on gay protections
113
If you are looking for a bird on the cheap, the following specials from...
Maybe someone out there can help me understand how raising the state...
BYU and Utah BOTH got destroyed by TCU!!! Let's see in two weeks who can do...
Everyone that posts here really need to grow up!!!
this is one of the greatest moments of following soccer in my life. The...
I love to hear this story!! The team made 2 of his dreams come true!! WE WON...
eyes closed and short of the mark on defense. His no defense attitude cost us...
Ya'All should of seen it coming!
USC is 5th is the pac10. Could be an interesting year
U guys can do it! Bring home the championship!
Heading to Seattle for the cup. Go RSL!
have you ever visited a facory farm? do you know that most of the make-up you...


You can be the first to comment on this story.