In the wake of the worst economic meltdown since the Great Depression, some of the region’s manufacturers, processors and service providers report that business is starting to rebound.

From a local standpoint, North Dakota’s growing economy has kept many of the recession’s ill effects at bay, but companies that rely on national and international markets have seen their business activity fall off as much as 40 percent.

Some of North Dakota’s export companies report that the return of foreign customers provided the first sign that the global economy may be on the mend.

A full slate of orders insulated Spectrum Aeromed from much of the recession’s wrath, but new orders from domestic and international buyers slowed during the economic downturn. Foreign buyers, however, were the first to return, said Dean Atchison, president of the Fargo-based company.

Spectrum Aeromed designs and manufactures life-support equipment and custom medical interiors for fixed- and rotorwing aircraft. Atchison said 80 percent of his company’s business lies outside the United States.

“We’re seeing our export business coming on much stronger than the domestic side,” he said. “They’re much more optimistic and ready to place orders.”

Businesses that develop an international customer base have a significant competitive advantage over those that deal only within their national borders. Developing international business creates market diversity, allowing companies to offset stagnant or shrinking markets with growth markets. International businesses also can take advantage of market opportunities that come with fluctuations in currency exchanges.

The world’s fastest growing economy

In late 2009, economists reported that strong growth in Asia – particularly China – is leading the world’s economic recovery. Unlike other major economies, China never sank into recession during the financial crisis, although its stellar growth rates slowed. The Organization for Economic Cooperation and Development has forecasted the U.S. economy will climb to 2.5 percent this year compared to China’s GDP which is growing at nearly 9 percent.

China’s fast-growing urban middle class is leading the country’s transition from an investment-led economy to a more consumer- focused marketplace. The McKinsey Global Institute projects that by 2025, China’s upper middle class will comprise a staggering 520 million people – more than half of the expected urban population.

China’s remarkable growth has more than caught the attention of North Dakota business leaders. The North Dakota Trade Office will take a delegation of emerging and long-time export companies to China in the first quarter of this year.

With unprecedented opportunities in China come challenges to penetrating this complex marketplace. For the past year, the Trade Office has worked to build strong relationships within the Chinese government and with key business leaders in four strategic northern provinces to mitigate the risks that come with entering China.

The state’s strategy includes aligning with the priorities of the Chinese government to provide high-demand products and services including value added foods, agricultural machinery, aviation equipment, clean coal technology, medical equipment, education resources and wind energy technology.

Among our partners in China is William Owens, a native North Dakotan and chairman of AEA Investors, Hong Kong. Owens, a former vice chairman of the Joint Chiefs of Staff, recently traveled to Fargo where he took part in an informational meeting attended by about 45 business leaders with interests in the Chinese marketplace.

“If you know how to find the right people and the right province, the upside is huge,” Owens said. “They are looking for technology and they are looking for American partners who they can develop long-term relationships with.”

(Columnist Jeff Zent is the communications director for the North Dakota Trade Office in Fargo.)