Utah companies are urged to export

PRICE — A trio of executives on Wednesday had some advice for Utah companies: Look beyond your current markets.

Small and medium-size businesses can succeed in exporting — and learn to avoid mistakes already suffered by some bigger companies, according to the executives, who spoke here at the seventh annual Rural Business Conference hosted by U.S. Sen. Bob Bennett, R-Utah, and the Utah Rural Development Council.

"A small company can export," said Stanley Rees, director of the Miller Global Business Center at Salt Lake Community College. "If you have this product that is doing well here in the United States or here in Utah, there's no reason that it wouldn't do well internationally."

Rees said some companies believe they can survive simply by selling in Salt Lake County or selling in Utah or California or Arizona. But companies now are "needing to compete internationally" to sell their products, he said.

David Fiscus, director of U.S. commercial services for the U.S. Export Assistance Center, said that jobs related to exporting pay 20 percent more, on average, than those not related to shipping across borders. The reasons for exporting are obvious, he said, because 70 percent of the world's purchasing power and 95 percent of its population are outside the United States.

"If you're not taking advantage of international opportunities, you're missing out on some real potential demand for your product," Fiscus said.

Brett Heimburger, regional director for Asia for the Governor's Office of Economic Development's International Trade and Diplomacy Office, said many Utah companies have produced innovations with applications in international markets, with many "hidden-gem companies" just now being noticed on the international scene. Life sciences, information technology, agriculture and nutritional supplements are among industries doing well overseas, he said.

Utah's export strength is growing, with trade rising from $4.7 billion in 2004 to $7.8 billion in 2007. The figure for January was over $1 billion, a record high. Utah is second among Mountain West states for exporting and No. 31 among states overall.

Companies looking to expand their markets should realize help is available, often at little or no cost, the speakers said. GOED, for example, can help companies evaluate markets. The U.S. Export Assistance Center provides export counseling, market research, trade events and introductions to qualified buyers.

"The rewards are vast, but the learning curve can seem daunting and, again, steep at times," Fiscus said.