business

Executives with Staging Concepts can boast that their stages, platforms and risers -- all made in Minnesota -- are found around the globe, but until this year, the manufacturer's approach to foreign commerce was far from focused.

"We were reactive, responding to inquiries from customers, letting things fall into our laps," said Kari Lessard, who oversees international sales for the Brooklyn Park-based company.

Lessard said that began to change earlier this year after the company participated in ExporTech, a federal initiative designed to help smaller manufacturers expand sales beyond U.S. borders. The program led Staging Concepts representatives to meet with purchasing agents in the Middle East this past spring as well as private-sector trading companies. The company recently received its first large order from Qatar and is already bidding on other foreign jobs.

ExporTech is part of a growing movement to expand national exports from smaller companies. The U.S. Department of Commerce launched the program about five years ago, but it didn't debut in Minnesota until last fall. So far, more than 20 companies here have participated in programs in Alexandria, Minneapolis and Mankato overseen by Enterprise Minnesota, the Minnesota Trade Office and the U.S. Commercial Service.

In Minnesota, a surge in exports has been a welcome bright spot in the state economy. Second-quarter exports jumped 12 percent as Minnesota moved a record $5.3 billion in manufactured goods, mining and agricultural products.

"Small companies are huge job creators for our state," said Bob Kill, CEO of Enterprise Minnesota, a nonprofit consulting organization that works with small and medium-sized manufacturers. "We know that companies that export grow faster and create even more jobs."

Like Staging Concepts, many smaller companies are accidental exporters, responding to inquiries on their websites rather than pursuing international clients. Unlike major corporations, small businesses often lack the resources and networking they need to make contacts and navigate another country's regulatory requirements.

"Many of the large corporations in Minnesota already have international divisions and in-house expertise to expand in international markets," said Katie Clark, executive director of the Minnesota Trade Office.

Exports figure prominently in the Obama administration's economic recovery plan. The president has set a goal of doubling them nationwide by 2015. ExporTech isn't directly connected to Obama's National Export Initiative, but it complements the federal government's overall emphasis on export assistance.

There's a good reason why exports play such an important role in the nation's economic health -- roughly 75 percent of the world's purchasing power is outside the U.S. Recent economic reports suggest Minnesota should pursue more overseas business. The Institute for Supply Management recently reported that in September there was no overall growth in new orders although exports continued to grow.

"Growth among firms tied to agriculture and international markets has more than offset this weakness [in manufacturing for the U.S. market]," said Creighton University economics Prof. Ernie Goss, who oversees a similar survey of nine Midwestern states that includes Minnesota.

Staging Concepts, whose local work includes the stage for the 2008 Republican National Convention, had previously done a small amount of business in the Middle East. The company, which has 55 employees, needed help.

ExporTech begins with an overview on how to evaluate foreign markets, customs and other regulations and service providers like law firms that specialize in advising companies doing business internationally. Participants work one-on-one with advisers to come up with customized plans, which are critiqued at the final session.

Neil Crocker, president of Schaefer Ventilation Equipment, said ExporTech helped him learn more about government services to help firms find overseas dealers for their products. That includes the federal government's Gold Key Matching Service, which can help businesses with market research and other planning tools.

The Sauk Rapids-based company, which manufactures thermal systems for the agricultural, horticultural, commercial-industrial and rental markets, now has distributors in Latin America and the Middle East. Crocker said he expects Schaefer to generate about 15 percent of its $20 million in sales in 2012 from exports, up from about 10 percent that's been typical for the company in the last few years.

Kill says such results are critical if Minnesota wants to build and broaden its economy.

"A lot of companies peek over the curtain and see the opportunities from exporting," Kill said. "This puts them in a better position to take advantage of them."

Susan Feyder • 612-673-1723