The 6,000 Connecticut companies that export set new records, with $16.5 billion in commodities trade amid an all-time high of $2.3 trillion in U.S. exports, according to a new survey.
The 2015 International Trade Survey of Connecticut Businesses also found that western Europe now exceeds North America as a trade destination--a first in the survey's history.
The survey shows that the vast majority (89%) of Connecticut businesses engaged in international trade are small and midsize enterprises employing fewer than 500 workers.
"Connecticut ranks 27th for exporting among all states and 18th per capita, so there is room to grow," said Gioia.
According to the survey, the largest foreign markets for Connecticut exporters are, in order:
- Western Europe (32%)
- North AmericaCanada/Mexico (26%)
- Northern Asia/Pacific RimChina, Japan, and Taiwan (18%).
Connecticut companies plan to expand their sales in northern Asia--26% respondents in the next three years compared to 18% today.
Many companies are veterans in exporting, having participating in international trade for more than 20 years (46%), and 10-20 years (37%).
The reasons that many entered foreign markets are not surprising: increase company sales (52%), follow their clients (24%), and diversify business (16%).
Doing business aboard is not without its risks and hurdles.
According to the survey, the most common barriers include: lack of knowledge of foreign markets (18%), cost competition and payment delays/defaults (both 17%), and trade/regulatory barriers (15%).
The 2015 International Survey of Connecticut Businesses was emailed between March and April 2015 to approximately 1,300 Connecticut businesses with export potential.
Most are manufacturers, however, service firms and other businesses with export potential were included as well. The survey had 140 respondents, for a 10.8% response rate and a +/- 8.45% margin of error.
The survey was conducted by CBIA, and sponsored by CohnReznick and Santander Bank with support from the Connecticut Department of Economic and Community Development and the U.S. Department of Commerce.
CBIA is Connecticut's largest business organization, with 10,000 member companies. For more information, please contact Meaghan MacDonald (860.244.1957; email@example.com) or visit the CBIA Newsroom.