Approximately 30% of U.S. manufacturing businesses have no export sales and use no imported components, according to a recent study by the National Association of Manufacturers (website).

The NAM warns that insularity has put those manufacturers at extremely high risk in today's unforgiving global industrial economy -- especially as the dollar has weakened against other currencies and U.S.-made goods cost that much less in export markets.

Perhaps even more bothersome, more than 60% of U.S. manufacturers sell only a tiny portion -- less than 10% -- of their output outside the borders, or use less than 10% imported components.

John Engler, NAM President, said: "These manufacturers are at risk. If they don't get into the international marketplace, they'll find it increasingly difficult to survive."

In particular, small and medium sized manufacturing businesses, the foundation of the U.S. manufacturing economy, have been falling rapidly behind international competitors in terms of export focus. This problem has become more dangerous because their direct competitors, especially similar-sized manufacturers in western Europe, have been giving up their long-held resistance and begun aggressively pursuing export market sales.

The NAM report also shows that larger manufacturers, such as Caterpillar and Deere, have been more successful as they leverage export sales. Not only do these sales offset the falling domestic U.S. market and cyclicality, but also as the dollar has weakened, their products are more price-competitive and successful in the export markets where there have been established marketing efforts.

99% of the U.S. manufacturing base is made up of small-and-medium size manufacturers, with fewer than 2,000 employees. That same group accounts for 40% of all U.S. industrial output.