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Amid the flagging economy, there was a bright spot for Maryland last year: Its exports showed robust growth, far above the national average.

Maryland exports climbed to $11.4 billion in 2008, up 27 percent from 2007 and more than double the average U.S. growth of 12 percent, according to new data from the state Department of Business and Economic Development.

While state officials expect a significantly smaller increase this year due to the worsening economy, it has no plans to reduce its efforts to foster international trade. As of 2006, more than 5,000 companies exported goods from Maryland locations to 200 countries, according to the U.S. Census Bureau's most recent data.

"There's only a handful of countries in the world that Maryland business doesn't touch in some way," said Robert Walker, DBED's managing director of international investment and trade. Walker recently returned from China, where he spoke to companies about expanding operations to Maryland. He said the talks resulted in some success and that more information would be available later.

Since 2004, Maryland exports have increased by 97 percent, making it 14th in the nation for export growth over that time, Walker said.

Maryland boosts its exporters through its quarterly ExportMD grants, which are awarded to small and mid-sized companies to help them expand their overseas business. Although the state usually awards 20 grants per year, it is likely to exceed that in fiscal 2009, having already awarded 17 grants for the first two quarters.

The state's leading export categories are vehicles and transportation equipment, followed by electrical machinery, industrial machinery and chemical products. Canada ranks as Maryland's chief market, receiving $1.5 billion in exports. Next is Great China — which comprises the mainland, Hong Kong, Taiwan and Macao — with $787 million, followed by mainland China alone with $570 million.

BD Diagnostics Systems, formerly Baltimore Biological Laboratory, annually exports about 55 percent of its infectious disease identification systems and other products to Asia and Europe. The Sparks division, part of the New Jersey parent, employs 1,800 people and began its international trade by purchasing thermometers and syringes.

"As the world becomes more globalized, the U.S. is realizing it's not an island among itself, and those of us from a knowledge-based industry have a lot to offer," said David Panneton, vice president of worldwide marketing for the division. "The world faces an emerging resistance among vaccines and needs to develop a globalized system."

Patrick J. Burke, director of business development for Amarex in Germantown, agreed that diagnostics is a growing market that ought to establish a presence in Maryland. Amarex conducts clinical trials for pharmaceutical companies to sell in the U.S., with international work making up 15 percent of its business. The company often works with Korean and Taiwanese companies and its executives will travel to both countries this year.

Most exporters

are small to mid-size

Walker emphasized that 85 percent of Maryland's exporters are small and medium-sized businesses.

Reeves EMS in Frederick, which employs three people and operates through DHS Technologies in New York, annually exports close to $1 million in emergency and decontamination products to Canada, Taiwan and Hong Kong, said Jeff Jackson, vice president of business development.

"The big thing is to make sure [foreign agents] understand American regulations," he said, adding that time differences, getting products through U.S. Customs and transportation can also be challenges. "International trade broadens the scope of our market. It provides us with the ability to reach other customer bases and learn of different [emergency] issues they're having so we can improve our products."

Integral Systems, a satellite systems provider in Lanham, reported similar concerns, saying export restrictions to China kept it from expanding its Asian market.

About 7 percent of Integral's revenues are from exports and its foreign subsidiaries. The Japan Broadcasting Satellite System recently selected the company to deliver turnkey control systems for two of its satellites.

Middle River Aircraft Systems in Baltimore, part of General Electric Aviation Systems in Ohio, also has an Asian contract, supplying ARJ-21 jet engine brakes for China. More than 200 orders have been made, contributing to Middle River's export sales, which account for 35 percent of its business.

"Growing global aircraft markets are driving the growth at Middle River Aircraft Systems. Foreign participation in engineering and manufacturing is key to growing our business in Maryland," spokeswoman Jennifer Villarreal said in an e-mail. The company also produces a variety of specialized structures for major aircraft manufacturers including Boeing, Airbus, Lockheed Martin and Embraer.

McCormick & Co., the Sparks spice giant, started out importing goods from 40 countries but has since started to reverse the trend to make exports a small part of its business, although domestic trade still remains its primary focus, said Fred Lissauer, vice president of global exports for McCormick. The company exports to the Caribbean, Hong Kong and the United Arab Emirates.

Lissauer warned that there's been some concern about the increasing value of the dollar, which makes U.S. exports more expensive. But Lissauer voiced the general exporter opinion that the stronger dollar has not affected business in the short term.

Banks also

look abroad

Maryland's exports are not limited to just products, as companies explore different ways to tap international markets.

"There may be opportunities, with the bigger national banks falling, for local banks to get into these markets," said John P. "Jack" Hollerbach, president HarVest Bank of Maryland in Gaithersburg.

HarVest is developing ways to offer international services such as wiring money between an overseas company and its local counterpart in Maryland and examining international lines of credit. "We want to be the commercial bank of choice for the entire I-270 corridor," he said.

Hollerbach has visited India, Korea and China in hopes of better understanding their business communities so he can provide that same atmosphere for local foreign-owned businesses.

"[The Indian clients] said it was the first time a U.S. banker made the effort," he said. "They open up to that. … Developing our trade finance capability could set us apart from big out-of-state competition."

Kenneth Weiss, president of Plans and Solutions in Derwood, provides consulting services to foreign companies looking to work with the U.S. and vice versa. Weiss, who has a career in international development, has worked with people in Colombia, Nicaragua and Chile, helping them understand U.S. marketing, regulations and distribution.

"Their markets are different every place you go. You have to select your target market and then modify it to fit the area," he said.