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For Immediate Release
INTERNATIONAL TRADE CRITICAL TO CONNECTICUT BUSINESSES
International trade is critical for Connecticut businesses to remain competitive in today’s global marketplace, but helping these companies succeed must be a priority for state policy-makers. While many firms already export or wish to enter the international marketplace, some barriers concerning information on markets and export rules are holding them back. Help exists, but a lack of awareness of existing programs and assistance for companies is a challenge that must be addressed. These are among the key findings of the Connecticut Business & Industry Association (CBIA) International Trade Survey, sponsored by the Connecticut Department of Economic and Community Development (DECD) and Haggett Longobardi LLC. The survey explores the breadth of international trade conducted by Connecticut businesses, the ways companies are growing, the challenges they face and their awareness of resources available to help them. "Connecticut businesses understand the complexities of participating in today’s global economy as well as the great opportunities for growth that it presents,” said John R. Rathgeber, CBIA president and CEO. “With a significant number of businesses in the state already involved in international trade, and export levels hitting a record $12.2 billion in 2006, it’s very important that policy-makers address the issues that, when solved, can allow even more Connecticut companies to compete and succeed globally. Encouraging international trade will strengthen and expand our state’s economy.” Thirty-five percent of Connecticut companies surveyed are involved in exporting goods and services to foreign markets. The majority of these (82 percent) have been conducting business abroad for at least five years. But 65 percent said they were not involved in the global market, although half of those expressed an interest in entering the international marketplace. "International trade was once viewed primarily as an opportunity for large companies and major corporations,” said Frank P. Longobardi, CPA, and pa rtner, Haggett Longobardi LLC. “Technology and the open-door policy that welcomes U.S. companies to establish international operations have changed that viewpoint forever.” Nearly half (47 percent) of respondents said their greatest concern in the global marketplace is the cost of competition, while 12 percent said loss of intellectual property and 10 percent cited concerns over unfair trade practices. Other barriers Connecticut businesses have encountered include trade barriers/regulatory disparities (24 percent), global competitiveness (23 percent), limited company resources (20 percent) and lack of knowledge about international trade (16 percent). "International trade has become a vital part of the success of many Connecticut companies,” said Peter Gioia, CBIA vice president and economist. “In many cases it’s a competitive necessity, as businesses follow their clients overseas and generate new sales opportunities. While they may not be fully aware of it yet, Connecticut businesses can access a wide array of state and federal programs to help them become more effective and competitive globally. The federal and state governments should do all they can to facilitate those efforts, and CBIA will work with them to get the message to the business community.” State and federal government services are available to help small-to-midsize firms become more involved in international trade. However, the majority of respondents (59 percent) were unaware of this help. And of those who knew about the programs, over half (56 percent) said the export financing and guarantee programs were not helpful in their businesses’ becoming involved in international trade. The DECD has programs and resources available to help Connecticut businesses enter the international marketplace, but 39 percent of respondents were unaware of these offerings. Another 36 percent said they were somewhat familiar with the DECD resources, and 17 percent said they most often used DECD-sponsored trade shows. "DECD is committed to providing targeted, high-impact services for Connecticut's export-ready companies, including export counseling, technical assistance, market research, workshops, seminars, trade missions and shows,” said Costas Lake, DECD director of international affairs. Company executives said the most beneficial services that could help them enter the international market are manufacturing-specific market research (38 percent) and international market research (33 percent). "CBIA, the U.S. Department of Commerce and the DECD are already addressing the concerns and needs businesses expressed in this survey. Together, we are developing links to information identified by respondents in this survey, which will be sent to all survey participants; creating a streaming Web broadcast that will be sent to all actual and potential exporters; detailing the assistance available to help companies export in the international markets; and holding a series of briefings over the next few months on the survey results,” said Gioia. Businesses are also concerned about the capabilities of their future workforce. Nearly two-thirds of respondents (62 percent) said educational initiatives promoting science and technology were at least somewhat important to increasing U.S. competitiveness in the global marketplace. Sixty-six percent said it is important to make sure their employees were aware of foreign cultures and customs, and 5 percent said training employees in this area is important. "It’s very clear from this survey that Connecticut businesses are entrenched in the global marketplace, and in order to remain competitive, they must continue to innovate and expand internationally. But we must make efforts to ensure that businesses have the tools, information and resources they need to grow in the international marketplace,” said Gioia. The survey was conducted by e-mail and conventional mail in January 2007. There were 447 returned surveys from Connecticut companies. The survey has a margin of error of plus or minus 4.73 percent. Survey results will be discussed at the CBIA/World Affairs Council Conference: Knowing Your Global Markets on April 19, at 8 a.m. at CBIA, 350 Church Street in Hartford. ###
CBIA is the state’s largest business organization, with 10,000 members. Haggett Longobardi LLC is a full-service CPA firm located in Glastonbury. DECD is Connecticut’s lead economic, community and housing development agency. Editor’s Note: For a copy of the International Survey, visit cbia.com/newsroom, or call Nancy Andrews, CBIA media relations manager, 860-244-1957.
For more information contact Nancy Andrews, CBIA media relations manager, at 860-244-1957 or andrewsn@cbia.com. 350 Church
Street · Hartford, CT 06103-1126 · cbia.com/newsroom
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