Support Programs Boost Tennessee Exports
Published Apr 07, 2006
Australia
Companies have long seen the value of Tennessee as a prime location from which to ship products throughout the eastern half of the United States.
Now, many of those in-state companies are realizing that their products don’t have to stop at the borders.
Since 2004, Tennessee has been the nation’s fastest-growing major export state in the country. Among the nation’s Top 25 exporters, Tennessee ranked first in percentage export growth in 2004 (28 percent), second in 2005 (18 percent) and third in January-February 2006 (21 percent).
Overall, Tennessee ranked 14th among all states in exports, including 10th in high-tech exports.
“Tennessee has an industrially diverse economy. We’re more high-tech than is readily recognized,” says Dean Peterson, director of the Nashville Export Assistance Center.
Tennessee’s exports reflect that diversity. Though automobiles and automotive parts are among the best-known products, the state also produces medical devices, computers and firearms, among others. The state’s most consistently ranked exporter is the Jack Daniel Distillery.
“Practically every industry has achieved growth in every year,” Peterson says.
The Nashville Export Assistance Center works with companies to help them expand their reach into the international market. Peterson provides counsel, delivers them access to market research and tries to match companies with proper international fits.
And exporting isn’t limited to the state’s largest corporations. In fact, most of Peterson’s work involves small and mid-sized businesses, who may not have the tools or the confidence to expand their presence internationally. But the numbers suggest those fears are dissipating.
In 2006, the Tennessee Department of Economic and Community Development launched Export Tennessee, an export education program aimed primarily at small- and medium-sized businesses. More than 350 Tennessee companies have already been counseled on growing their business through exporting.
“I don’t think it’s as scary as it used to be,” says Leigh Shockey, chairperson for the Tennessee District Export Council. “It [exporting] is seen more as an extension of doing business.”
In June 2006, ECD Commissioner Matthew Kisber led a group of Tennesseans on the state’s first trade mission to Australia in more than a decade. The delegation visited Sydney and Melbourne, meeting with more than a dozen Australian businesses to discuss investment and possible joint ventures.
“Several Australian executives told us they’re very interested in doing business with Tennessee companies,” Kisber says. “Our visit put Tennessee on their radar screen.”
Among the most frequent recipients of state-made products is Canada, which serves as a gateway to further international penetration for initially apprehensive exporters.
“Once you’ve broken that barrier, it’s easier to do the second,” Shockey says.
While states ahead of Tennessee on the export list are generally on one of the coasts, the state’s landlocked status has not proved to be a hindrance.
Tennessee has significant air-based exports (aided by the sizable presence of Memphis-based FedEx Corp.), a great system of roads, rail and even boat traffic – as well as a reputation for distribution excellence. In addition, FedEx was a sponsor of the 2006 Australian trade mission.
And when help is needed, individuals at the Tennessee Department of Economic and Community Development, Tennessee’s larger chambers of commerce, the U.S. Export Assistance Centers and literally dozens of Tennessee-based export consulting firms are there to provide guidance.
“The idea of exporting may sound prohibitive,” Peterson says. “But there are people whose business it is to help you do this, and offices like ours to direct you where to look.”
For More Information
U.S. Department of Commerce
traderoots.org
U.S. Department of Treasury
treas.gov
U.S. Foreign Commercial Service
export.gov
Story by Dan Markham
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