By Joe Boomgaard | MiBiz
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GRAND RAPIDS — Companies that only sell their goods or services within the U.S. run the risk of catering to 5 percent of the world’s population.

That means they’re ignoring the 95 percent of the market that has lots of federal, state and local support available.

That was the message Fred P. Hochberg, chairman and president of the Export-Import Bank of the United States, told the 100 or so business leaders and bankers assembled at the Global Access Exporter Forum. The program was put on by the Ex-Im Bank, the Van Andel Global Trade Center and state and local economic development organizations.

Hochberg, in an exclusive interview with MiBiz, said the reason for the forum was to help expose West Michigan companies to all the federal, state and local agencies that can help them overcome the hurdles they might face in trying to reach foreign markets.

Whereas the U.S. Small Business Administration and the U.S. Department of Commerce are involved in giving companies advice about and resources for exporting, the Ex-Im Bank’s role is strictly financing.

Ex-Im provides working capital, receivables insurance and buyer financing for companies exporting goods or services outside of the U.S. In essence, they mitigate risk for companies that may be dealing with people around the globe or in some difficult markets.

“All I want you to do is get a good night’s rest … and not worry about getting paid,” Hochberg told the attendees.

Hochberg met with a local contingent of CEOs and bankers before speaking at the event to hear directly from them about what they’re experiencing on the ground. He said his organization’s challenge is to recruit more bankers and get them plugged into what Ex-Im can offer for their clients.

“The Van Andel (Global Trade Center), the city and state partners, those are really important because they know how to connect us. They’re here every day,” Hochberg said.

He said often the most important Ex-Im offering for small business is business credit for when the exporter wants to sell a product and extend its customer some credit for a short period of time.

“That’s a key way of making that export sale, but you also just can’t do without some insurance on it,” he said.

Hochberg said he’s seen strong growth in the export of farm equipment; medical products; construction equipment; avionics, both in the form of airplanes and air traffic control systems; services, especially engineering services; and power systems, whether for renewable energy or conventional forms of power.

“The words ‘Made in the U.S.A.’ or ‘Made in America’ are our strongest brand,” he said, noting the rest of the world has a high demand for U.S. products because they have a reputation for quality and durability.

That statement was demonstrated by the experiences three companies shared during a panel discussion at the event.

• Viking Spas Inc. saw its industry erode by 75 percent four years ago, but it broke into foreign markets and has since grown 60 percent. The $20 million (revenues) company, based in Wyoming, Mich., now sells 60 percent of its products outside the U.S. “They’re dying for American product,” said Tom Kneeshaw, director of sales and marketing. “When we knew we could get insured is when we knew we could make money. About 95 percent of the population of the world is outside of the U.S. I can’t wait to talk to them about hot tubs.”

• Bandit Industries Inc. manufactures light and heavy equipment used in the forestry and biomass energy industries. Once the company realized its chippers and other products were useful for the biomass energy industry, it turned its attention to Europe where the sector is growing at a more rapid pace than in the U.S. Bandit, which employs 300 in Remus, Mich., has grown its exports to 30 percent of its business in 2011, and it expects that portion to increase by 5 percent next year. The company uses a working capital line from the Ex-Im Bank to finance its foreign dealer network. “We make money at it, but (the dealers) get better rates than they could get overseas,” said Jerry Morey, president and co-owner of Bandit.

• New Age Landmark Inc., a service provider that does analytical testing, assessment and consulting, got connected in 2007 to a Maltese firm that was looking to deploy mobile laboratories at the Libyan oil fields. The firm helped New Age, a 12-person operation, through the export process. The South Haven-based company, which made a 50-percent profit on its first export sale, has been quoting steadily on exports ever since. It struggled with how to get financing for operating capital because it doesn’t produce anything, but rather assembles other companies’ products. Because the trailer manufacturer New Age contracted wanted a 50 percent down payment, and end users don’t pay in advance, the company turned to Ex-Im Bank to guarantee its operating capital. “We’re quoting $15 million in mobile labs per year, and we’re maybe capturing one tenth of that. But we’re still quoting $15 million a year, and we’re not even trying to get it,” said Scott Wall, president of New Age Landmark.