🔒Small businesses urged to consider exporting for growth

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As the District Director for the U.S. Department of Commerce, Anne Evans remains bullish about Connecticut, despite a recent report showing that the state's exports declined last year for the first time since 2009.

Revenue from Connecticut's commodities alone were down 4.25 percent in 2015, according to a report published in the April edition of the Connecticut Economic Digest. The Nutmeg state — ranked No. 27 for state exports — still fared better than the U.S. average, which saw exports decrease by 7.5 percent.

“Some have said that the strength of the U.S. dollar has [been a factor] in decreasing exports, including Connecticut's,” Evans said. She's responding by trying to educate more Connecticut small businesses about the potential benefits of exporting and the assistance that is available at both the state and federal levels.

To drive home that message, her agency sponsored its first-ever Connecticut Export Week, a five-day event that featured 13 training sessions ranging from global-focused websites and cyber security to financing and international patents. The event attracted more than 400 companies, including many small businesses new to exporting.

“We wanted to make a statement to Connecticut businesses: We're the government and we want to help,” Evans said. “We can't just be reactive. We need to be proactive.”

Exports Hit $15B Annually

Overall, Connecticut exports more than $15 billion annually, driven largely by the aerospace sector, the fastest-growing industry in the state. Evans says that while major corporations like United Technologies Corp. produce the lion's share of exports, smaller supply chain companies — especially those with advanced-manufacturing capabilities — are expanding their reach internationally to meet clients' global demands.

Victor Morando, chief technology officer for Ellington-based Dymotek, said his company — which started exporting eight years ago — now exports to 35 countries to support one United Kingdom-headquartered client alone. Dymotek provides advanced-manufacturing technology to bond plastic. “We've grown our revenue to more than $25 million annually,” Morando said. “And 55 percent of that comes from our export business.”

In March 2015, Dymotek received the prestigious President's Export Award in recognition, in part, of its successive export growth in recent years. In fact, six Connecticut companies won Export Awards out of 45 awarded nationwide last year.

Morando says that success reflects directly on the resources the Department of Commerce provides the state's businesses. Even as Dymotek has steadily increased its exports, Morando said his company continues to find benefits in working with Evans and her team. “Anne is trying to help us get our foot in the door with a large UK-based engineering firm,” Morando said. “Having the weight of the U.S. Department of Commerce [advocating] is a big help.”

Proactively Seeking Global Demand

Evans said that, while her agency will help by request, her team — comprised of eight full-timers and three part-time employees — is often proactively looking for global demands that Connecticut companies can meet. “The Commerce Department has employees all over the world, so we have a good sense of what markets are looking for certain products,” Evans said. “We can then search our database of Connecticut businesses to make connections.”

Evans cautions that while the export market can provide a large upside to a business' bottom line, she recommends companies expand domestically before exploring foreign markets. “There's always a cost to find a customer,” she said. “But it's higher in foreign markets.” She said that money collection, insurance and shipping are all common challenges that many new exporters face, but the greatest need is helping small businesses understand exporting rules.

To address that gap, Evans' team is planning — with support from United Technologies — a June conference in Hartford focused on supply chain export compliance. “There are a lot of legal aspects of trade,” Evans said. “We hope this conference can help small businesses understand those rules and promote the resources we can provide.”

It's those types of resources that are attracting more small businesses to exporting — especially in the aerospace industry — like New Britain-based Addaero Manufacturing, which is involved in 3D printing or additive manufacturing. The company, which provides parts to industry giants like Boeing and Airbus, started operations in 2015 and has already set its expansion sights across the Atlantic. Richard Merlino, the company's president, said he sees a market for his company's technology in the United Kingdom and Europe.

While his company is starting to navigate the nuances of exporting, Merlino has ambitious goals for foreign markets. “We want exports to [in time] be 30 percent of our business,” he said.

Over 5,000 Exporters in CT

Evans says there are currently more than 5,000 exporters in Connecticut and that doesn't account for companies that might export technology or services that don't require physical shipping that drives traditional export numbers.

Evans projects that the number of small businesses engaged in exports will continue to grow — despite the minor dip in 2015. 

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