The good news is that Colorado’s exports were up nearly 14 percent last year. The bad news is that the state lagged behind the nation, which saw exports grow at 21 percent.
Federal and state officials want to help Colorado catch up. Two Obama administration officials joined Colorado Gov. John Hickenlooper in Denver on Monday at a seminar for small businesses hoping to break into or expand their presence in foreign markets.
“If we really want to reboot the economy, the only way we’re going to do that is by boosting exports … and small businesses need to be a part of that,” said U.S. Export-Import Bank chairman Fred Hochberg.
One billion people worldwide will enter the middle class over the next decade, and $21 trillion will be invested in infrastructure, Hochberg said. Small businesses need to tap into that market, yet many are afraid of taking the financial risk, he said.
The federal agency provides insurance to U.S. companies making sales overseas, reducing the risk of a loss if payment isn’t made, and guarantees loans that exporting companies can use to fulfill orders.
Teresa and Neal Lynch have used the Ex-Im Bank’s services to expand their company, Golden-based Animal Health Options, into Japan, Taiwan and Europe. Exports account for 60 percent of the business of the maker of animal nutritional supplements, Teresa Lynch said. The company has grown from about $30,000 in revenues in the early 1990s to $2 million today.
“A growing middle class means a growing pet population,” she said.
Seizing foreign markets doesn’t come without risks. When mad cow disease struck several years ago, Animal Health Options had to convince Japanese authorities that its products were safe and certified as such in the United States. Last year, the Japanese government declared that Animal Health Options’ most popular supplement is a drug, suspending sales there.
Keys to success in exporting include finding reputable foreign partners and distributors, building strong relationships and diversifying into more than one country, the couple said.
U.S. Agriculture Secretary Tom Vilsack pointed to a silver lining in Colorado’s trade numbers: Agricultural exports were up 14 percent last year and are expected to grow 21 percent this year.
Toti Cadavid, president of Denver- based Senku Marketing, attended Monday’s seminar to learn more about doing business overseas. The company already works with clients who do some foreign sales.
“The unknown is what prevents people from going overseas. The fears are real. You do the work, but are you going to get paid?” she said. “A big part of it is finding the right people to work with in the country where you’re doing business.”
Greg Griffin: 303-954-1241 or ggriffin@denverpost.com
