NEWSRELEASE
For Release: March 27, 2008
Contact: John McDowell, (202) 205-6941
john.mcdowell@sba.gov
SBA Number: 08-07 ADVO
Press Kit
International Competitive Pressure Varies In Very Small Manufacturers More Affected By Global Conditions WASHINGTON, D.C. – Currency exchange rate pressures lead to an increase in
the exit rates very small manufacturers (fewer than 20 employees), finds a
report released today by the Office of Advocacy of the U.S. Small Business
Administration. “Interestingly, small manufacturers in high-tech industries are more
insulated from international competitive pressures than those in other sectors,”
said Robert Feinberg, professor at American University and author of the paper.
The study, The Impact of International Competition on Small-Firm Exit in
U.S. Manufacturing, focused on 1990 to 2004. The author noted little
variation in the overall exit rate of small manufacturers over time, but a
reasonable amount of variation across firm size and industry. Factors affecting
exit across firm sizes included overall economic activity, labor costs, and
whether the firm’s industry sector produced consumer goods. Changes in an
industry’s import share produced mixed results across time periods and firm
sizes. For more information and a complete copy of the report, visit the Office of
Advocacy website at
Impact On U.S. Manufacturers
The Office of Advocacy, the “small business watchdog” of the federal government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats, and it funds research into small business issues.
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The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. For more information, visit
www.sba.gov/advo, or call (202) 205-6533.