“Akamai Money” seeks out local experts to answer questions about business in Hawaii. If you have an issue you would like us to tackle, please email it to business@staradvertiser.com and put “Akamai Money” in the subject line.

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QUESTION: What is the Hawaii Pacific Export Council, and what are some of the ways in which it helps Hawaii businesses?

ANSWER: The Hawaii Pacific Export Council is a nonprofit organization whose mission is to promote U.S. exports from Hawaii and the American Pacific islands by supporting the activities of the U.S. Commercial Service and Hawaii Export Assistance Center. The HPEC has offered a number of programs to support small businesses including Export University 101 throughout the state and on Guam; a cost-sharing program designed to cover some of the costs of companies who travel internationally to engage in export-related activity; SWIF, the worldwide, interstate and interisland shipping fair; and more. All of these programs have received considerable support from organizations such as the U.S. Commercial Service (locally, this is the Hawaii Export Assistance Center); the Hawaii Department of Agriculture; the Department of Business, Economic Development and Tourism; the University of Hawaii; FedEx; the Foreign Trade Zone No. 9; the Small Business Development Center; and the Small Business Administration. Additional support has come from those such as (former U.S.) Sen. (Daniel) Akaka, (U.S.) Congresswoman (Colleen) Hanabusa, (U.S.) Undersecretary Francisco Sanchez and various others.

Q: What are some of the benefits businesses can realize by becoming an exporter?

A: Ninety-five percent of the world’s population resides outside of the United States. If businesses are only focusing on the domestic or even state market, they are missing out on opportunities to diversify their revenue stream, take advantage of global opportunities (free trade agreements, etc.) and extend their product life cycle. Companies that export are 8.5 percent less likely to go out of business. Jobs related to export pay 15 percent more. International business not only supports the exporter, but also supports the community.

Q: Is exporting for everyone? What are some of the things a business owner should consider before deciding to begin exporting goods and services?

A: Often businesses believe that exporting is only for the "big guys." This is not accurate. Over 97 percent of U.S. exporters are small businesses. Business owners should do their due diligence before they begin thinking about exporting. Business owners should know which markets are most favorable for the export of their good by looking at the cost (generally tariffs and taxes) of exporting in addition to the economic and political climate, as well as market demand. Fortunately, many Hawaii businesses engage in a bit of reactive exporting by supplying goods and services to international visitors through our robust tourism industry. This can often be the catalyst for a more proactive export campaign as companies realize international visitors enjoy their products.

Q: What are the top export markets for Hawaii businesses?

A: In looking at data on Hawaii exports, be careful to consider that Hawaii is often a "pass-through" port to international destinations. This means that goods are produced elsewhere domestically, stop in Hawaii and then are shipped to their final international destination. This counts as an export for Hawaii but creates data that reflects goods that are not actually produced in Hawaii. For example, most reports state that aircraft exports comprise over 30 percent of Hawaii exports. Clearly this item is not produced in the islands. In looking at the items produced or manufactured in Hawaii that are exported, petroleum (refined in Hawaii) and processed foods rank highest. Tourism is another important export that is often not considered so because it is not something that is manufactured and then sold abroad. Instead, international visitors bring foreign currency to the islands and exchange it for goods and services while visiting. The state’s largest export market is Japan, followed by Australia. These top destinations include the exports that are "passed through" Hawaii.

Q: Are there risks associated with exporting? What are they?

A: Yes, there are risks associated with exporting. One of the ways companies can protect themselves is by working with good partners locally and abroad. Companies should thoroughly research and analyze the legitimacy of any inquiries. The Hawaii Export Assistance Center, a U.S. federal government agency, is a great place to start. John Holman, director, can help companies vet international inquiries and provide information on appropriate international partners.

Q: Does the Hawaii Pacific Export Council have any events scheduled in the near term to help Hawaii businesses that either want to begin exporting or expand existing export operations?

A: The HPEC is holding Export University 303: Japan Post-Trip Seminar on Oct. 8. Companies that are interested in this or future events can check www.hawaiiexportsupport.com for more information on upcoming events. Export University 101, the HPEC foundational training program offering companies education on a wide breadth of topics related to exporting, will be available online by the end of the year. This comprehensive training program has been attended by well over 100 participants and has generated considerable success, in the form of export sales. To date, companies that have participated in HPEC programming have sold over $1 million in exports.

Q: What other resources are there for businesses that want to get into exporting?

A: Companies should take advantage of all of the resources available to support businesses in exporting. Due to the president’s National Export Initiative, there is a wealth of resources from a variety of agencies to support companies’ export efforts. The state and federal agencies offer a variety of free or low-cost services to help companies. The Hawaii Pacific Export Council partners with many of these organizations and include, but are not limited to, the U.S. Commercial Service (locally, this is the Hawaii Export Assistance Center); the Hawaii Department of Agriculture; the Department of Business, Economic Development and Tourism; the Small Business Development Center; the Small Business Administration; the Foreign Trade Zone No. 9; and the High Tech Development Corp.