Exporter of the Year International Markets Drive Growth for Award-Winning ATV Manufacturer

International diversification at Buffalo-based Recreatives Industries is indicative of how small manufacturers in the U.S. are expanding by increasing their sales to the 95 percent of world markets located outside of the U.S.

Recreatives Industries, which won the 2005 ThinkGlobal/Commercial News USA Exporter of the Year award in recognition of its export efforts, is a privately-held manufacturer of all-terrain vehicles (ATVs). The award is given by ThinkGlobal Inc., publisher of Commercial News USA, the official export promotion magazine of the U.S. Department of Commerce.

Commercial News USA is a catalog-style magazine distributed to an estimated 400,000 readers in 145 countries worldwide. Exporter of the Year awards are given to one U. S. company in each of 14 industry categories. Recreatives Industries was named Exporter of the Year in the Sports & Recreation category. To be eligible for the award, the company must currently be exporting from the United States.

Winners were chosen based on the total number of documented export deals completed in 2004, total percentage increase in sales in 2004 compared to 2003, exports as percentage of total sales, the company's commitment to exporting, the company's commitment to customer service, and the company's innovation and originality in marketing products or services.

Recreatives Industries has demonstrated on ongoing commitment to international trade. "The export business has been a good counter-cyclical business for our market," says Galen Reich, marketing director for Recreatives. "It's a nice buffer for when business and the economy are slow in the U. S. Pushing exports is always an important part of our marketing strategy."

Founded in 1969, Recreatives Industries began exporting in 1985. Since then, export sales have been increasing by an average of 10% per year. And the company expects a 20% increase in 2005.

"Export sales are a steady percentage of overall sales," says Reich. "For example, as the dollar weakens, we tend to get more inquiries and interest, and our export sales do go up."

Initially, Recreatives relied exclusively on Commercial News USA to help it find new markets overseas. "We dabbled in exporting with sporadic success in the early days of the company," Reich explains. "But we didn't have much continued success until we started advertising in Commercial News USA. For about 10 years, our sole source of international marketing was Commercial News USA."

"In recent years, the Internet also has provided a big sales boost. "It amplifies our print advertising, and we now get better results because of e-commerce," says Reich. "The print ads and the Internet complement each other because the print drives customers to our Web site."

Recreatives' largest export markets are eastern Europe and Russia-an area in which the company is still developing new customers. In fact, the company recently shipped its first three vehicles to Latvia. Other strong export markets include Guatemala, Chile, Argentina, Brazil, and Honduras. The company also has recently added new dealers in South Korea and Malaysia.

The retail price for Recreatives' vehicles ranges from $5,785 to $13,995. Exporting has proven lucrative for Recreatives because international customers tend to order the company's higher-end, higher margin models that use Kawasaki engines. While many of the company's products feature American-made Briggs & Stratton and Kohler engines, the Japanese-made Kawasaki brand has proven to have stronger international name recognition.

In many ways, the American-made ATVs being exported with Japanese-made engines reflect the increasingly interconnected worldwide manufacturing environment. At the same time, for Recreatives Industries, exporting is part of a broader strategy for diversification and survival in an increasingly competitive global marketplace.