In his 2010 State of the Union address, President Barack Obama committed to doubling U.S. exports within five years. This is an ambitious goal, but the National Export Initiative (NEI) is possibly one of the most promising, business-supporting initiatives the president has pushed to date. This month we’ll explore this globally minded-initiative and the impact exports have on our economy.

Why the renewed push for United States exports? The main reason is jobs. Every $1 billion in exports supports or creates 6,250 U.S. manufacturing jobs, according to the International Trade Administration (ITA).  In 2009, the United States exported nearly $125 billion in goods and services, which equates to approximately 780,000 export-related jobs.

Unfortunately, U.S. exports declined 16 percent from 2008, resulting in a loss of 153,000 jobs. With a concerted effort through the NEI, increasing U.S. exports can help replace the lost jobs and add new jobs at a relatively rapid pace. NEI isn’t the silver bullet that is going to help the U.S. recover completely from the recession, but if the goal of doubling exports is reached in the next five years, using simple math, that’s 780,000 much needed new jobs.

As a percentage of GDP, the United States is ranked below many of our global competitors in exports. Only 1 percent of the existing 30 million U.S. companies are currently exporting. Of the astute firms that are exporting, 58 percent export to just one country; 95 percent of consumers live outside of the United States.

It is 2010. It’s a global economy. The United States can no longer pretend we will always be the center of the world. If we want to remain the economic powerhouse that we’ve come to take for granted, the United States must go out and join the fight for global market share alongside our pioneering businesses. NEI will help facilitate growth for U.S. businesses by helping them connect to the existing and emerging markets beyond our borders.

Since the NEI is in its infancy, we can only speculate at the results the program might achieve in the next five years. However, NEI appears to be well-positioned to have a significant economic impact. Key elements to the NEI that have been unveiled by the Obama administration to date include:

• Improved access to funding for exports through the U.S. Export-Import (Ex-Im) Bank—and increase the amount of funding available to small and medium-sized businesses. This will free up credit lines for companies daring enough to take on the challenge of exporting.

• Increased funding for export promotion and better coordination between government agencies.

• Educating U.S. companies about opportunities in foreign markets.

• Facilitating direct connections with foreign customers/partners.

• Providing additional financial support to federal, state and local level programs that are focused on increasing exports.

• Government-wide support for commercial advocacy objectives when working with foreign officials, businesses and farmers. Reviewing existing trade agreements, finalizing those in progress, and exploring new trade agreements that would open new markets for U.S. companies.

• Creation of the Export Promotion Cabinet from top leaders from multiple government agencies including Commerce, Treasury, State Department, Agriculture, Ex-Im Bank, Small Business Administration and the office of the U.S. Trade Representative.

Exciting news for Michigan! Sen. Debbie Stabenow was appointed to the Export Council, the principal private sector advisory committee to the Administration. Having Sen. Stabenow at the center of this exciting initiative will ensure the interest and needs of Michigan’s global companies are heard, recognized and supported.

Collectively, these elements are meant to increase the level of consciousness regarding exports with government officials at the many agencies involved in various aspects of global trade—making exports a top priority in everything they do.

The Greater Lansing region is well-positioned to leverage the NEI as we have been working collaboratively to assist area businesses understand the value of a global market strategy. Some of the major assets in our area include Michigan State University’s International Studies, Center for International Business Education and Research (CIBER) and the Global Business Club—along with the new U.S. Commercial Service and the newly created International Trade Center located at the Lansing Regional Chamber of Commerce. There are many companies in the region already exporting to multiple countries that are sharing their experiences with others that are beginning to export, or exploring the possibilities of international business.

The infrastructure to support global logistics and trade has also been developed over the past several years. The Capital Region International Airport extended runways and established a port of entry, Port Lansing with the U.S. Customs & Border Protection Federal Inspection Station, and began direct international flights. Foreign Trade Zone No. 275 was approved last summer and there’s a new bonded warehouse at the Port Lansing Global Logistics Centre located at the airport. Programs and partnerships continue to be developed to effectively engage businesses in global commerce and leverage the region’s important investments.

The National Export Initiative has been launched to assist companies to expand into global markets, which will lead to increased revenues, additional capital investment, and create  much needed jobs in communities around the United States. Unlike many other government initiatives, NEI seems to be a program that most politicians are proud to support.

To learn more about NEI, information regarding international trade and the available resources in the Greater Lansing area to help your company go global, visit www.portlansing.com or contact your International Trade Center located at the Lansing Regional Chamber of Commerce.

		Brent Case is the director of Foreign Trade Zone No. 275 and international market development at the Lansing Regional Chamber of Commerce. In this role, Case works with the Capital Region Airport Authority to increase the amount of global commerce being conducted in the Greater Lansing area.