By Kalissa Holdcraft
July 2, 2012

Ports and exports generated $3.2 trillion in economic value in 2011, and supported 16.2 million jobs in America. It is expected that in the next decade, exports will account for nearly 40 percent of real US GDP growth.

Despite the large potential for economic growth, only one percent of American businesses export. At the 80th Annual Conference in Orlando, mayors convened to discuss approaches to promoting exports during the forum on "Growing Exports to Create City/Metro Jobs" on June 14. "Increasing exports and modernizing our ports is vitally important to our economic recovery and our need to create jobs," stated the forum's moderator Jacksonville Mayor Alvin Brown, Chair the Conference of Mayors Metro Export and Ports Task Force. Panelists at the forum included mayors, small business owners, private sector representatives, and Under-Secretary of Commerce for International Trade Francisco Sanchez. The forum was sponsored by Siemens.

"Our businesses are missing out on 95 percent of the world's consumers," stated Under'secretary Sanchez. He added that about 85 percent of economic growth through 2015 would occur outside of the U.S. By 2020, India's GDP is expected to grow by 269 percent and China is expected to see a growth of 255 percent. The U.S. is expected to see a growth of 50 percent increase in that same time frame. Sanchez outlined the goals of the federal government for motivating American companies to export. Speaking on President Obama's goal to double exports by 2014, the Under'secretary noted that in 2011, the country surpassed the trillion dollar mark in total exports for the first time. Citing the importance of cities as a tool for growth, he called on mayors to "localize the national export initiative," and applauded the bipartisan efforts to support export expansion.

In dealing with foreign companies and consumers, Teresa Myers of MPG, a small pump manufacturing company, quickly noticed that American businesses were known internationally for superior products and friendly services. In an era of increasing global competition, Myers stated that this preference puts U.S. firms at an advantage. MPG is currently exporting to three foreign countries, with plans to expand their customer base even further.

As an owner of Stagecoach Sauces, Terry Geck recently recognized exporting is a crucial step to increase profits and improve his company. Currently creating a blueprint for the company's approach, Geck applauded local, state, and federal government entities for their assistance in helping small businesses bridge the gap between domestic and international markets.

The small business owner acknowledged that the road to exporting is not smooth. "The biggest challenge is human capital and market research," stated Myers. Small companies often do not have the extensive resources to fully understand the foreign markets. This is an area where mayors have the opportunity to step in and invite all parties to the table to assist.

Minneapolis Mayor R.T. Rybak called for creation of an export blueprint. His city has focused on networking and connecting members from across the various business sectors. The informal association among stakeholders has served to enhance the ability to engage in international trade. "Each one of our communities has a story to tell about exports," said Rybak. He illustrated the need for mayors to engage businesses to discover the best structure for assisting in exports. Rybak urged the Conference of Mayors to create a "toolkit" around key exporting issues. To this end, he highlighted three necessary components: solidifying the export team by convening all stakeholders; mapping the city's assets; and creating final strategies for selling worldwide. His message is one that speaks to the importance of cooperation and shared knowledge in enabling the Conference of Mayors to equip newly elected mayors with the ability and knowledge to promote exporting in their cities.

ed mayors with the ability and knowledge to promote exporting in their cities.

"For every dollar I spent traveling to trade fairs and meetings in foreign countries, the city of Akron received $3,833 back in investment," said Akron Mayor Donald L. Plusquellic. Speaking on the effects of international trade on economic growth, the mayor outlined his city's successful attempts at attracting foreign direct investment. Akron's strategical approach includes partnerships within the business community, identification of strengths and market potential, and most importantly, targeted efforts. Akron has prospered by creating relationships with foreign countries through business partnerships. To create buy-in for the initiative, the mayor has insisted on measurable impacts that could serve as a foundation for further educational and promotional efforts.

Despite focused attempts by businesses and cities, Homeland Security and visa issues can be challenges to export growth. Rybak explained the need to keep American-educated professionals in America. Citing issues with visas, the U.S. loses many engineers and scientists that would spur economic success.

Plusquellic also lamented the roadblocks that foreign companies experience in attempting to establish a presence in America. Sanchez made clear that the Department of Commerce is available to work with cities and small businesses dealing with these problems. The Department has a number of robust programs that range from assisting companies with market research to platforms focused on attracting foreign investment to the United States.

Cities can no longer sit back and expect exporting and investment to occur naturally. A focused, strategic approach must be developed for cities to reach their full export and foreign direct investment potential.