Over the past two years, Ed Sawyer has used two federal grants of $20,000 each to try to increase exports for advanced conversion. The Barre-based company manufactures specialized components for trucks, buses and airplanes, as well as parts for electrical networks and laser surgery.
“It’s not a lot of money, but it helps us make decisions to go out and market our products,” said Sawyer, the company’s chief executive.
Advanced Conversion uses the grants to go to trade shows in Europe and travel abroad to meet key customers.
Last month, Vermont got an increase in funding for these federal grants, which are part of the State trade expansion programmeaning more local businesses will benefit.
“It’s been underutilized to some extent, but the state is increasing its dissemination, so I think we’re going to see a lot more businesses using it,” said Darcy Carter, director of the Vermont Small Business Administration, an agency federal .
States apply for the funding, and this year, the Small Business Administration awarded Vermont $249,000, nearly a 66 percent increase. Previously, the state had a grant of $300,000 over two years.
The companies then apply for grants of up to $20,000 from the state’s Business and Community Development Agency, which administers the funds.
“Many people go to international trade shows or work on their websites to adapt to certain markets, whether through translation or search engine optimization,” said Tim Tierney, director of business recruitment and international trade at the State trade agency. Tierney said that during the pandemic companies have used funds to improve their online platforms to serve international customers.
“The return on investment for some of these companies is huge,” Tierney said. “You bring someone into a new market and they reach that market. It’s a great thing not only for this company, but it creates jobs here in Vermont.”
Tierney said the money also goes toward hiring consultants to help exporters navigate customs, trade compliance and market research.
At Advanced Conversion, exports account for more than half of the business, according to Sawyer.
“Export is our life,” he said.
The company, which employs 34 people in Vermont, exports to China, South Korea, Japan, Taiwan, Mexico and the United Kingdom, Sawyer said. He noted that the grants also help pay for export insurance, so banks will finance payments from overseas customers.
Most of the manufacturing is done in Barre, Sawyer said, but the company also has a manufacturing partner in China.
This week, with a grant from the State Trade Expansion Program, the trade agency hosted 40 Canadian companies in Burlington to connect them with Vermont businesses and organizations.
Vermont is worth $5 billion in annual trade with Canada, according to the agency, and 73 Canadian-owned businesses employed 3,000 Vermonters by 2021. Vermont exported 830 million dollars value of goods and services in Canada last year.
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