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March 27, 2007

Small businesses play big role in export trend

JOPLIN, Mo. — Customers in Asia, Mexico and Africa are adding billions of dollars to the Missouri economy and helping the state set export records through companies such as King Press.

The Joplin company did $3 million — or 50 percent of its 2006 business — in exports to other countries.

Jason Bard, marketing director for King Press, a manufacturer of printing press machinery, said about 40 percent of its trade used to be done out of the country. He said that in the past couple of years, he’s seen an increase in exports, especially to Asia, the Middle East and Russia. Africa also continues to be a big consumer of King Press products, Bard said, as do Australia and England. Last year, King Press sold 25 printing presses to Russia and Ukraine.

“Whenever I tell people what we do and where we go, they’re always surprised,” Bard said. “I’m trying to think of anywhere we’re not selling right now.”

The World Institute for Strategic Economic Research reported that Missouri exports in 2006 hit $12.8 billion to 191 countries around the world.

That’s nearly double the $6.79 billion the state exported in 2002, according to the Missouri Department of Economic Development.

International sales by Missouri companies increased more than 22 percent, or $2.4 billion, in 2006 compared with figures from 2005. The nationwide increase was 14.7 percent last year.

Kansas exports grew from $6.7 billion in 2005 to $8.6 billion in 2006. Oklahoma exports went from $4.31 billion to $4.38 billion.



Small businesses

It’s not just large corporations and Fortune 500 companies that are snatching up all the overseas business.

The U.S. Census Bureau estimates that companies with fewer than 50 employees make up 29 percent of all the nation’s exports.

Bard said King Press has 25 to 30 employees.

Spence Jackson, spokesman for the Missouri Department of Economic Development, said state officials are encouraging exports to boost the state’s economy.

“Exports are very important to our state today and vitally important to our state in the future,” Jackson said. “We have to continue to find ways to increase this in the future or we’ll be left behind.”

Earlier this month, Gov. Matt Blunt pointed to export numbers as one reason for Missouri’s 4.6 percent unemployment rate.



Top markets

Jackson said the state hopes to continue the exporting trend with its international marketing division that works with Missouri business owners to identify export opportunities. Recently, several Southwest Missouri companies, including Leggett & Platt Inc. in Carthage, sent a delegation to Mexico to explore possibilities for exports.

According to the Missouri Economic Research and Information Center:

Missouri exports to Mexico jumped 7.3 percent last year.

Other top importers of Missouri goods are Canada and South Korea.

The total of Missouri goods imported by Asian countries was up 8 percent in 2006 from the figure for 2005.

Lowell Mackey is president of Ozark Plastics in Neosho, a custom molder producing a variety of products from hummingbird feeders and hunting calls to medical components and pieces for emergency lighting.

In the past, Ozark Plastics has exported paintball-gun parts to Mexico. Now it makes one small part for paintball guns that is a big hit in China.

The piece is no bigger than a fingertip and fits onto the gun’s carbon-dioxide cartridge. Mackey said paintball guns used in the United States are manufactured in China, but for some reason, the Asian manufacturers cannot produce the small piece.

Mackey said he ships 150,000 of the pieces to China each year for a modest $7,500 gain.

“Every paintball gun has one, and I don’t know how long they keep them there, but then they ship the completed guns right back to the U.S.,” Mackey said.



Melissa Dunson writes for The Joplin (Mo.) Globe.











Export facts



The Missouri Economic Research and Information Center reported that 12 Missouri product categories topped more than $200 million in export sales in 2006, with transportation equipment topping the list at $5 billion.

Missouri ranked 27 among 50 states in total exports for 2006 and 15th in the percentage increase from 2005.

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