State invests in more jobs by increasing its exports

One of the greatest untapped opportunities for job growth right now is exports. Washington state has a lot to gain by encouraging and supporting our businesses as they step up efforts to sell their world-class products and services overseas, where economic growth is projected to surpass that of our domestic market. We must not forget that 95 percent of all consumers and 75 percent of all economic activity lies outside the U.S.

Still, just 1 percent of U.S. companies export (4 percent for our state). That pales in comparison to many of our trading partners: 6 percent of Canadian companies, 9 percent of UK and German companies, and 15 percent of Australian companies export. It's clear that over the last two years, industries and companies accessing global demand through exports are generally outperforming those that do not. Aerospace, software, life sciences and agriculture are doing well overall, even as other areas of the state's economy struggle.

These truths were the impetus behind the Obama export initiative and our own Washington Export Initiative launched by Gov. Chris Gregoire in June 2010. Yet, our international trade and marketing budgets are stretched to breaking, and we continue to hear chiding over our relatively tiny investments in foreign trade missions that have returned millions of dollars to our state coffers over the ensuing years.

Agriculture exports from Washington have reached an all-time high, and overseas sales translate into real job growth at home. The Washington State Department of Agriculture helped 199 businesses make $94 million in new sales last year, supporting an estimated 790 jobs. We're helping growers, including Eckenberg Farms in Mattawa, launch lucrative new long-term relationships. After strategic introductions by WSDA in 2009, this year $20 million in Washington hay will ship to Chinese dairies.

Similarly, Commerce reports record-breaking 2011 sales of $147 million tied to small business export programs, supporting another estimated 795 jobs. Overall, year-over-year exports are up 20 percent.

Washington's small and medium-sized businesses hold immediate potential to accelerate our economic recovery and create jobs. Recent congressional approval of free trade agreements with Korea, Colombia and Panama makes Washington products even more competitive in those markets.

Hundreds of firms have developed innovative products and services; that's where our state's entrepreneurs really shine. But they often lack the resources or knowledge to pursue international opportunities.

That's where we help. Commerce and Agriculture provide marketing intelligence, training, foreign business contacts and help overcoming trade barriers.

It is money well spent. Ask any CEO who's been on a state trade mission or connected with a global partner through state assistance. Richard Counihan of Seattle-based Enprecis credits state help in arranging meetings with two major European automakers as key to building new strategic relationships for the company in Europe and China.

The last two governor's missions, attended by more than 100 private companies, have already resulted in an estimated $15 million in new export sales and direct foreign investments in Washington companies, and future prospects in the pipeline promise more.

WSDA is using a federal grant to fund a Southeast Asia and Hong Kong trade mission in November that will expand export opportunities for potato, tree fruit and wine producers. Commerce will shortly help several medical device manufacturers do business at the world's largest medical trade fair in Germany and enable companies to explore opportunities in China through a new business incubator project there.

These are good investments. For every $1 invested in the WSDA International Marketing Program, for example, export sales return $3.38 to taxpayers. The bottom line is international trade is one of our best opportunities to grow our economy and family-wage jobs.

* Rogers Weed is director of the Washington State Department of Commerce, and Dan Newhouse is director of the Washington State Department of Agriculture.