EXPORT TECH - GO TO SCHOOL TO LEARN Export Growth Strategy for Wisconsin Manufacturers. SEMINAR DESIGNED FOR WORKING PROFESSIONALS Would you ever develop a business plan targeting only 5% of available customers? Doubtful! That’s exactly what many Wisconsin manufacturers have done, most without realizing it. Explosive economic growth in other parts of the world has presented an opportunity for Wisconsin manufacturers to boost their revenue and take advantage of a global demographic shift showing about 95 percent of consumers now reside outside the United States. American consumers are growing older, spending less on new products; and statistically our domestic market will continue to shrink while global markets are experiencing unprecedented growth. The demographic shifts and data are real. Exporting your products is no longer optional. It’s key to growth and maybe even survival. Getting involved in exporting can be a daunting endeavor for small and mid-size manufacturing firms for several reasons. The timeline to ROI is unknown; everyone seems to know of a manufacturer that jumped into exporting and made costly mistakes that ate up the revenue generated. Before the recession, companies could afford to learn by trial and error, but that is not true today. Today, manufacturers must mitigate risks with a plan to take products to the countries where they are most welcomed. CEOs and Boards want to see a timeline to ROI before investments occur. That’s where the Wisconsin Manufacturing Extension Partnership’s ExporTechTM program can help. ExporTech is a three-session course that provides resources and guidance so that manufacturing executives can rapidly develop and execute a successful exporting strategy. ExporTech graduates have achieved sales increases averaging $900,000 within six to nine months after completing the program. It’s smart business to spend 24 hours learning and crafting strategy before investing. It makes sense to take the time to understand the big picture of what resources are required and what the ROI is expected to be. Perhaps your company has been an exporting for awhile. Did you know there’s a significant results gap between a successful exporter and those who operate in reactive mode? I’ve worked with many Wisconsin manufacturers that operate without a formal export plan – even when export dollars are approaching 50% of total revenue. These companies are simply reacting to incoming orders, hoping to get more, and really don’t understand why and how customers have found them. If foreign customers are finding your products, there is a reason, there’s a way to export more efficiently and also grow the market. The ExporTech program helps companies discover the “how and why,” then develop a plan that allows them to focus resources to achieve the greatest ROI. The ExporTech™ process helps manufacturers crystallize and differentiate their unique value proposition. The next step is focused market research that actively targets specific countries that have good markets for a company’s products. ExporTech has produced huge impact for the companies that have completed program. My single goal is to make exporting profitable for all of the companies that make the commitment to go through the ExporTech program. Companies that purposefully export grow their entire business 2.4x faster than companies with no plan. This growth fully utilizes manufacturing capacity and adds family-supporting jobs to our Wisconsin economy. The bottom line is that if you’re not exporting, you’re leaving growth potential and profit on the table. A group of companies that took part in the initial ExporTech program have found success exporting their products and services to markets outside the United States. “We were already along the way in our business plan before going into China and Europe. ExporTech really helped us formalize our plan,” said Tony Cavalco, vice president of sales for A&A Manufacturing Co., a New Berlin provider of industrial products including protective covers such as accordion-type bellows, covers for rails and ways, fabric and metal roll up covers, roll up doors, cable and hose carrier systems, and friction slip clutches. Rick Kettler, president and chief operating officer of The Wagner Cos., a Milwaukee manufacturer of handrail and railing components and systems, said the company came away from ExporTech with a plan to attack exporting opportunities in England, Germany, Australia and Canada. Participants in the program know that exporting comes with a variety of challenges, including cultural and language issues that must be addressed. Companies also must decide whether to use a distributor in foreign markets. “It’s a different world out there, but we’ve got to be there,” said Neil Karolek, president of TLX Technologies, a Pewaukee manufacturer of custom solenoids that generates about $8 million in annual revenue. “If we don’t do it, we will hit a limit of $10 million to $15 million (in sales) in the United States and we aren’t going to grow any more. There are enough solenoid companies in the U.S. that are saturating the market.” At the recent Governor’s Small Business Expo in Stevens Point, Gautam Malik, director of operations at Gamber Johnson, a recent ExporTech graduate, reported $700,000 in incremental export sales, excluding Canada, since late 2012. The company has set a goal of $4.7 million in the first three years of its enhanced exporting effort. The added business is expected to result in a 10 percent increase in employment at the company. Don’t delay – I’ve scheduled upcoming ExporTech sessions will to be held in Manitowoc, Appleton, and Waukesha this fall. For more information, go to wmep.org/events/wmep
Posted on: Tue, 05 Nov 2013 17:34:14 +0000
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