[Congressional Record Volume 141, Number 152 (Wednesday, September 27, 1995)]
[Extensions of Remarks]
[Page E1840]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     HELPING SMALL BUSINESS EXPORT

                                 ______


                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                     Wednesday, September 27, 1995

  Mr. HAMILTON. Mr. Speaker, I would like to insert my Washington 
Report for Wednesday, September 27, 1995, into the Congressional 
Record.

                     Helping Small Business Export

       I recently held some meetings with 9th District businesses 
     on ways to help them export, and I was impressed by the 
     extent to which several are already involved in exporting. 
     Local companies are exporting products ranging from chairs 
     and machines to popcorn and sewer pipe. Hossiers are sending 
     their products not just to Canada and Mexico but also to 
     Japan, South Korea, and Australia. For some companies, 
     exports represent as much as half of their business. There is 
     an increasing recognition among local businesses that much of 
     their future growth lies in exports. Yet smaller businesses 
     in particular need more information and assistance with how 
     to pursue export opportunities.


                         importance of exports

       Exports are an increasingly important factor in our 
     economy--both in Indiana and nationwide. Since 1988, exports 
     have accounted for more than one-third of our nation's 
     economic growth, and export-related jobs have grown eight 
     times faster than total employment. Strong export growth is 
     good news for our economy. Exports tend to support jobs that 
     are higher-skilled and higher-paying--some 15% higher--than 
     average U.S. jobs.
       In Indiana, exports have nearly doubled since 1988, 
     reaching a record $9.2 billion last year. The leading export 
     industries in Indiana are transportation equipment, 
     industrial machinery and computer equipment, chemicals, and 
     electronic equipment. Nearly 80% of Hoosier exports are from 
     the manufacturing sector, with the rest coming from mining 
     (17%) and agriculture (4%). Indiana exports support roughly 
     180,000 Hoosier jobs. In the 9th District, more than 700 
     manufacturers are pursuing export opportunities. Despite 
     these successes, I find that most Hoosiers are not fully 
     aware of the extent to which current and future jobs in their 
     communities are linked to exports. It is no exaggeration to 
     say that much of our area's economic future--including our 
     ability to create good-paying jobs--is linked to our ability 
     to export and be competitive in the world market.


                           new opportunities

       U.S. export prospects look good for the remainder of this 
     decade. World economic growth is expected to be strong over 
     the next several years, generating increased demand for 
     U.S. products and services. Recent international trade 
     agreements are lowering trade barriers and opening 
     promising new markets to U.S. companies. Continued low 
     U.S. inflation will boost the price competitiveness of our 
     products. Overall, U.S. exports are expected to grow 
     between 8.5% and 10% annually for the rest of this decade. 
     Increased exports mean business growth, greater profits, 
     and more and better jobs for U.S. workers.


                      challenge for small business

       I find that large corporations in the District are 
     generally well-informed about the importance of exports. They 
     often have employees who specialized in identifying and 
     exploiting export opportunities. But many small businesses--
     those with 50 or fewer employees--still find the prospect of 
     exporting daunting. Small businesses account for 24% of the 
     manufacturing sector's total sales, but only 12% of its 
     exports. Even when they have a product or service they 
     believe will be attractive overseas, many small businesses do 
     not know how to get started or how to explore potential 
     markets.
       Certainly companies can get help from the local business 
     community and from business organizations such as the Chamber 
     of Commerce. And they can hire export management companies to 
     help them establish overseas markets for their products. But 
     government can also play a supportive role.


                             state efforts

       The Indiana state government has fourteen Small Business 
     Development Centers located throughout the state to assist 
     companies that are relatively new to exporting. These Centers 
     help companies prepare international marketing plans and 
     target certain foreign markets for their products. The 
     International Trade Division of the Indiana Department of 
     Commerce offers financial and technical assistance to small 
     and medium-sized firms, and maintains seven foreign trade 
     offices in Canada, Mexico, Europe and Asia to help Hoosier 
     companies enter new markets.


                            federal efforts

       At the most general level, the federal government gets 
     involved by negotiating the reduction or removal of foreign 
     trade barriers to our products and by working to maintain 
     a stable international economy. By working to promote 
     stability and prosperity in the world economy, U.S. policy 
     creates new opportunities for U.S. firms abroad.
       But the federal government also assists Hoosier companies 
     more directly. U.S. officials act as advocates overseas for 
     companies bidding on foreign contracts, especially on 
     government contracts. Federal agencies such as the Export-
     Import Bank and the Small Business Administration help 
     finance projects in countries where private banks will not 
     tread. The U.S. Department of Commerce--the lead agency for 
     trade policy and export promotion--provides export 
     counseling, country and regional market information, and 
     overseas promotion services. It provides information to local 
     businesses on the latest export opportunities and resources 
     through newsletters, faxes, and on-line computer services. 
     Export Assistance Centers have been set up to provide a 
     single point of contact for all federal export promotion and 
     finance programs.


                            budget pressures

       The effort to balance the federal budget is forcing a 
     reevaluation of many U.S. government programs that support 
     business. The congressional budget plan passed earlier this 
     year recommends eliminating the Commerce Department, 
     terminating federal assistance for Small Business Development 
     Centers, and reducing funding for the Export-Import Bank. 
     Certainly some cutbacks can be made, and various programs 
     could be streamlined or combined with others to make them run 
     better at less cost. But we should not gut worthwhile 
     programs that help create profits and jobs for American 
     enterprises. It would be short-sighted to end export programs 
     that are producing significant results and are helping to 
     improve our country's long-term economic outlook.


                               conclusion

       Exports are critical to our nation's economic future and to 
     the job prospects of many of our young people today. U.S. 
     businesses both large and small need to think globally and 
     try to tap into the vast and rapidly growing markets 
     overseas.

                          ____________________