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What’s New in the Third Edition of the Trade Finance Guide?

November 27, 2012

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Yuki Fujiyama, a trade finance specialist with the Office of Financial Services Industries in the International Trade Administration, is the author of The Trade Finance Guide: A Quick Reference for U.S. Exporters.

On November 13, 2012 in Philadelphia, we unveiled the third edition of the Trade Finance Guide: A Quick Reference for U.S. Exporters at the 23rd Annual Finance, Credit, and International Business Association (FCIB) Global Conference. Acting U.S. Commerce Deputy Assistant Secretary for Services Industries Carlos F. Montoulieu released the new edition emphasizing that, “This concise and easy-to-understand guide is designed to help U.S. small and medium-sized enterprises (SMEs) learn quickly how to get paid from export sales in the most effective manner.”

What is the Trade Finance Guide?

Trade Finance Guide: A Quick Reference for U.S. Exporters, third edition

Trade Finance Guide: A Quick Reference for U.S. Exporters, third edition

The Trade Finance Guide covers 14 subject areas in easy-to-understand two page chapters that are written in plain language. The Guide is:

  • A “60-minute” self-learning tool for new-to-export SMEs that wish to learn how to get paid from export sales.
  • A user-friendly tool for international credit, banking, trade finance professionals and export counselors for client assistance.
  • A flexible educational tool for professionals teaching international business.

The Guide uses a no-nonsense approach to make it easy to understand the importance of choosing the appropriate payment method and trade finance technique when dealing with international transactions. With a quick rundown of the pros and cons provided in each chapter, new-to-export SMEs will find the Guide’s recommendations for when one payment method and trade finance technique is best suited over another particularly helpful. With some 300,000 copies distributed to the public since the release of its first edition in 2007, the Trade Finance Guide has become one of the most popular export assistance resources published by the Commerce Department.

What’s New and Unique?

The third edition of the Trade Finance Guidehas been updated with new key information, refined to provide better clarity and adds two new chapters:

The Trade Finance Guide 3rd edition is released at the 23rd Anual Finance Credit and International Business Association Global Conference. From L-R Marta Chacon, Director, North American Operations, FCIB, Robin Schauseil, President, NACM (FCIB’s parent – National Association of Credit Management), Carlos Montoulieu, Acting DAS/Services Industries, Yuki Fujiyama, Trade Finance Specialist, OFSI/MAS/ITA, Ron Shepherd, Director, Membership & Business. Development, FCIB

The Trade Finance Guide 3rd edition is released at the 23rd Anual Finance Credit and International Business Association Global Conference. From L-R Marta Chacon, Director, North American Operations, FCIB, Robin Schauseil, President, NACM (FCIB’s parent – National Association of Credit Management), Carlos Montoulieu, Acting DAS/Services Industries, Yuki Fujiyama, Trade Finance Specialist, OFSI/MAS/ITA, Ron Shepherd, Director, Membership & Business. Development, FCIB

  • Consignment which explains how selling on consignment can provide the exporter some greater advantages which may not be obvious at first glance
  • Government-Backed Agricultural Export Financing which describes how U.S. exporters of agricultural products can turn sales opportunities, especially in risky emerging markets, into real transactions and get paid.

In addition to new content and updates, the third edition also offers unique features that make the Trade Finance Guide one of the most user-friendly publications produced by the Commerce Department. The new Guide is:

  • Easily accessible online to anyone with internet access and designed for both easy download and on-screen viewing.
  • Printer friendly because it was designed with printing in mind.
  • Eco-responsible because it was designed for digital distribution and to only use the smallest amount of paper and ink or toner possible when printed.

In addition, the new Trade Finance Guide is the first official ITA publication to have adopted a QR Code to make it easy for those with smart-phones to access the Guide’s homepage in cyberspace.

Partnership and Cooperation

The Trade Finance Guide was created in partnership with FCIB and in cooperation with the U.S. Export–Import Bank, the U.S. Small Business Association, the U.S. Department of Agriculture, the International Factoring Association, the Association of Trade & Forfaiting in the Americas, and BAFT-IFSA (Bankers Association for Finance & Trade–International Financial Services Association). FCIB, a two-time recipient of the President’s “E” Award, is a globally recognized business educator of credit and risk management professionals in exporting companies ranging in size from multinational to SMEs.

How to Obtain the Trade Finance Guide

Trade Finance Guide, third edition QR Code

Trade Finance Guide, third edition QR Code

The Guide is available through the U.S. government’s export portal, Export.gov/TradeFinanceGuide, both as a complete guide and as individual chapters for those only wishing to learn a specific trade finance technique. You may also scan the QR Code below to go straight to the Guide’s homepage.

Coming Soon: Trade Finance Guide in Spanish

The Commerce Department is currently working with the California Centers for International Trade Development to create a Spanish version of the Trade Finance Guide. The Spanish version will help SMEs expand their global presence, especially in Mexico and Latin America, where Spanish is the primary language. Please stay tuned as the Trade Finance Guide’s inaugural Spanish version is scheduled for release in a few months!

Posted in Competitiveness, Exporting, Finance, International Trade Administration, Manufacturing and Services, Small Business | Tagged , , | 3 Comments »

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Russian Entrepreneur Touts ITA Training Program ‘Life-Changing’

September 12, 2012

Justyna Kottke and Tracy Perrelli are International Trade Specialists at the U.S. Department of Commerce

At a reception honoring alumni of ITA’s Special American Business Internship Training (SABIT) Program held in St. Petersburg, Russia on August 2, Dr. Oleg Prokhorenko, a Russian entrepreneur and small business owner, told Under Secretary for International Trade Francisco Sánchez that participation in a SABIT internship “changed his life and career.” 

(L-R) U.S. Consul General Bruce Turner, Under Secretary Sánchez, and Oleg Prokhorenko during the SABIT Alumni event held in St. Petersburg, Russia August 2. (Photo Vladimir Grigoryev)

(L-R) U.S. Consul General Bruce Turner, Under Secretary Sánchez, and Oleg Prokhorenko during the SABIT Alumni event held in St. Petersburg, Russia August 2. (Photo Vladimir Grigoryev)

Dr. Prokhorenko grew his company, Laboratory of Glass Properties, after participating in a SABIT internship in the United States in 1995 to learn about glass manufacturing at Ford Motor Company’s Scientific Research Laboratory.

His company provides testing and data analysis of glass and glass material qualities, and has invented a system to check energy efficiency methods used during the manufacturing of windows, car glass, and optical glass. Dr. Prokhorenko attributes the growth of his small business to the knowledge and experience gained during his SABIT Program internship. 

“I built this business based on what I learned during my SABIT internship.  I now employ more than 60 people and my company is growing,” he told Sánchez. 

Earlier that day, Prokhorenko participated in a training seminar on corporate leadership ethics for SABIT alumni.  The attendees for the training included past SABIT program participants and leaders of small and medium enterprises; both groups found the training very useful for their businesses.

SABIT Program Impacts Small Business Development

Since the SABIT Program was founded over 20 years ago, the program has trained more than 5,000 mid-to-senior level professionals and business leaders from the countries of the former Soviet Union. These participants are selected through a highly competitive application process for industry-specific technical assistance programs, which bring them to the United States for three to four weeks during which they meet with federal, state, and local government, associations, academia, large corporations and small and medium businesses.  These programs typically begin in Washington, DC, and then take the delegations to various locations in the continental United States, chosen for best fit with their industry. 

Upon returning to their home countries, SABIT Program participants have reported many successes, including the establishment and growth of industry associations, cooperation with participants from their countries and other regions, opportunities to make positive improvements to the protection of intellectual property, promotions to decision-making positions within their government, and development of new business relationships with U.S. companies that they met during their training. 

In fact, the SABIT Program has facilitated over $850 million in U.S. exports over the last 20 years. These types of outcomes are very beneficial to both the SABIT participants and their countries and to U.S. companies, many of which are small and medium firms that interact with the SABIT trainees during and after their training. 

For small and medium companies, the opportunity to meet with SABIT Program delegations is very appealing as a chance to learn about their industry in a different geographic area, and meet with industry leaders and potential business partners without having to travel to these countries.

The SABIT Program provides valuable benefits to U.S. companies and organizations and to its alumni. Dr. Prokhorenko is a great example of one of the thousands of SABIT Program alumni who have been able to significantly better their businesses and lives thanks in part to ITA.

Posted in Exporting, Market Access and Compliance, Small Business | Tagged , | Leave a Comment »

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The Secret Is Out! Learn More About the Value of Trade Secrets to the U.S. Economy

September 5, 2012

Christine Peterson is an International Trade Specialist in the Office of Intellectual Property Rights within the Market Access and Compliance unit of the International Trade Administration

When I was in law school, I took all the intellectual property (IP) law and international trade law courses I could cram into my busy schedule.  Unfortunately, everything I learned about trade secrets I learned in two days of an introductory IP course. 

But, if you think that the number of trade secret law courses out there was an accurate reflection of the importance of trade secrets to U.S. businesses and the U.S. economy, think again. Many companies rely on trade secret protection for their innovations. 

Odds are you even have some products protected by trade secrets in your own home—like the Coca-Cola recipe or the compound used in WD40 or OLED display technology in a Samsung television. 

Legal protection for certain business confidential information has existed in the United States since the nineteenth century, but has often been overshadowed by the more well-known forms of intellectual property—patent, trademark, and copyright. 

Trade secret theft is an increasingly important issue for U.S. businesses and, as a result, the U.S. government is doing more to make sure that American innovators are not at a disadvantage in foreign markets due to inadequate trade secret protection. 

I used the following resources to educate myself and would highly recommend them to U.S. businesses and others that are interested in learning more about trade secrets.

These and other federal government resources can help you understand the importance of protecting business proprietary information to ensure that U.S. companies stay globally competitive.

ITA’s trade specialists stand ready to assemble teams of U.S. Government experts to assist U.S. companies to enforce their trade secrets and other forms of IPR in foreign markets. We can suggest strategies to evaluate IPR problems encountered abroad and will work with you to resolve problems. You can report trade barriers at STOPfakes.gov/contact.

Posted in Competitiveness, Exporting, Intellectual property, Market Access and Compliance, Small Business | Tagged , , | 1 Comment »

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Exports Bring Jobs to the Twin Cities Region!

August 9, 2012

This post contains external links. Please review our external linking policy.

Francisco Sánchez serves as the Under Secretary of Commerce for International Trade. Follow him on Twitter @UnderSecSanchez

Since the 2012 Olympic Games began, Minnesotans have competed in sports ranging from basketball to fencing, proving that athletes from the North Star State can succeed on the global stage. The same can be said for Minnesota’s businesses. Today, I visited Minneapolis to meet with Congressman Keith Ellison (MN-5), Mayor R.T. Rybak business and community leaders. It was a great opportunity to see and hear firsthand how local entrepreneurs are designing and manufacturing quality products that are being exported all over the world.

Congressman Keith Ellison (MN-5) and Under Secretary Francisco Sánchez take questions from local companies during a business round table event in Minneapolis. (Photo Commerce)

Congressman Keith Ellison (MN-5) and Under Secretary Francisco Sánchez take questions from local companies during a business round table event in Minneapolis. (Photo Commerce)

For instance, I had the pleasure of visiting Accent Signage Systems, a small manufacturing company. A pioneer in innovative sign technology, Accent Signage is experiencing the direct benefits of exporting and has plans to increase its workforce by 25 percent in the near future. This is a gleaming example of a business that is successfully competing abroad, and, in doing so, is making a positive impact here at home. Stories like this are occurring throughout the Minneapolis region. The Minneapolis metropolitan area was the 9th largest export market in the United States in 2010. This success translates into jobs, because stronger businesses are more likely to expand and hire workers.

That’s why the National Export Initiative, which aims to double U.S. exports by the end of 2014, is such an important effort. When exports increase, so too does the benefits experienced by businesses and communities. Just last year, the United States economy saw a record-setting $2.1 trillion in exports, which supported nearly 10 million American jobs.

If we want to these numbers to rise, it’s imperative that American businesses know the Department of Commerce has resources to help them. Earlier this year we launched the “Build it Here, Sell it Everywhere: Commerce Comes to your Town” initiative to raise awareness about the resources available to help existing and potential exporters — with a clear focus on manufacturers.

Why manufacturers? Because manufacturing is responsible for much of America’s competitive edge on the world market. For instance, manufacturing is responsible for 70 percent of private sector research and development and 90 percent of patents — two of the most important investments to make for the future of our economy. And when you combine manufacturing and exporting, you get jobs. In fact, according to the latest data, nearly one-fifth of all manufacturing workers in Minnesota depended on exports for their jobs.

As the Under Secretary for International Trade, I have spent much of this year talking with leaders in important export and manufacturing hubs and spreading the word about the resources that Commerce’s International Trade Administration (ITA) has to offer exporters.

International trade relationships can generate incredible economic value. These partnerships not only bring profits and support jobs, but also spur innovation and help American companies maintain their global competitiveness.

And ITA is committed to promoting trade and exports throughout America. The resources and expertise at our disposal can be invaluable to existing and potential exporters.

So reach out to us, and we’ll help you in any way we can.

Posted in Competitiveness, Exporting, International Trade Administration, Manufacturing, National Export Initiative, Small Business | Tagged , | 2 Comments »

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A Primer on the Asia-Pacific Economic Cooperation or APEC

August 8, 2012

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Tyler Voorhees is working in the Office of Public Affairs at the International Trade Administration for the summer. He is starting his senior year at Washington and Lee University in Lexington, Virginia.

We hope you enjoyed our month of covering transportation related exports in July. We talked about everything from the Farnborough Air Show to how remanufactured goods (including autos) can save your wallet and the environment.

During August, we will be highlighting the Asia-Pacific Economic Cooperation (APEC) forum. APEC may not be a familiar topic outside international trade circles; however, it plays a vital role in the U.S. economy.

Under Secretary Sanchez (left) making remarks on innovation and Intellectual Property Rights at APEC St. Petersburg. (Photo APEC)

Under Secretary Sanchez (left) making remarks on innovation and Intellectual Property Rights at APEC St. Petersburg. (Photo APEC)

APEC was founded in 1989 to promote trade liberalization in the Asia-Pacific Region. Today, APEC has 21 members, including the United States and some of its largest trading partners such as Canada, Mexico, China and Japan. Together, the region is home to 40 percent of the world’s population, but accounts for approximately 54 percent of the world’s gross domestic product (GDP) and 44 percent of world trade.

Originally, APEC was founded because of the growing interdependence of Pacific Rim economies. Over the past two decades, this interdependence has only increased, giving the organization growing importance each year. The broad goal of APEC is to decrease trade and investment barriers, facilitate business in the region while working to raise living standards across the region through sustainable economic growth and ultimately lead to a Free Trade Area of the Asia-Pacific.

Between 1989 and 1992, APEC met at a senior official and Ministerial level. In 1993, President Bill Clinton established the practice of an annual APEC Economic Leaders’ Meeting. Since then, APEC leaders have gathered annually during “Leader’s Week” to meet and discuss economic and trade issues in the region.  In 2011, the U.S. hosted the APEC meetings on a variety of topics ranging from addressing business ethics and standards to small and medium-enterprise growth and women’s issues.

Last year, Leader’s Week took place in Honolulu, Hawaii. This year, Russia is set to host the meeting in Vladivostok, the largest Russian port in the Pacific. There have been several ministerial meetings throughout the year, but Leader’s Week is scheduled to take place September 2-9.

This year, Under Secretary for International Trade Francisco Sánchez led the U.S Delegation to the Small and Medium-size Enterprises (SME) Ministerial Meeting in St. Petersburg on August 3rd. There, he discussed the importance of SMEs to economic growth and international trade. Make sure to follow our blog for a  report of the SME meetings.

Posted in APEC, Competitiveness, Exporting, Intellectual property, Small Business | 1 Comment »

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Supporting Innovation and Exports in the Bay Area

July 24, 2012

This post contains external links. Please review our external linking policy.

Francisco Sánchez is the Under Secretary for International Trade

I was excited to travel to San Francisco and the Bay Area on Monday. As the Under Secretary of International Trade, this area has special importance because it is home to some key industries for America’s economy, especially knowledge-based and clean-technology (cleantech) industries.

The Bay Area is also on the forefront of American innovation. The region produces more patents than any other area of the United States and attracts 36 percent of the nation’s total venture capital investment. In addition, the Bay Area boasts more Ph.D. scientists and engineers than any other metropolitan area in the U.S.

Innovation leads to new ways to use technology and capital that make American workers more productive, leading to new job opportunities. It also helps U.S. companies stay competitive abroad, allowing them to deliver better quality products for less. Innovation is good for the economy and for American workers.

Under Secretary Francisco Sánchez presents Nikolas Weinstein of Nikolas Weinstein Studios an Export Achievement Certificate at his studio in San Francisco (Photo Commerce)

Under Secretary Francisco Sánchez presents Nikolas Weinstein of Nikolas Weinstein Studios an Export Achievement Certificate at his studio in San Francisco (Photo Commerce)

The Bay Area is a good example of how innovation can help create jobs. According to the Progressive Policy Institute, there are an estimated 311,000 people employed making applications, games and other tools for smartphones and devices and for social networking sites like Facebook. 

The Department of Commerce has long recognized this and recently we have undertaken several new initiatives to help encourage innovation. Most recently, the U.S. Patent and Trademark Office (USPTO) announced they would open four new branch offices in Detroit, Denver, Dallas and one right here in San Jose. The new branch offices will help speed up the patent and trademark process, allowing local entrepreneurs to innovate faster.

As part of the effort, Acting Secretary of Commerce Rebecca Blank was just in the Bay Area two weeks ago to promote the office and detail Commerce initiatives to help spur innovation.

While in the Bay Area, I hosted an insourcing roundtable with five local companies who are making insourcing a reality. Insourcing is a growing trend in the U.S. where U.S. companies are bringing manufacturing jobs – once outsourced- back to American soil. More and more businesses are realizing the best place to grow their capacity is right here in America. To help encourage the process, the Department of Commerce has started new initiatives such as SelectUSA to attract business investment back to the United States.

Insourcing represents many new opportunities to create good-paying manufacturing jobs, and we’ve created a fact sheet to let you know how we’re supporting American manufacturers. 

After our insourcing roundtable, I met with executives from Cureline Inc. and toured their facilities. Cureline is a biomedical research group that works with medical centers in the U.S., Europe and Asia.

We consider biotech an emerging industry at ITA, and because of that they have unique needs to succeed abroad. Cureline participated in a Commerce sponsored health IT trade mission to Mexico in May and with the help of the U.S. Export Assistance Center in San Francisco has successfully found clients in Europe in Japan. Cureline also plans to open a new research facility in South San Francisco within a year, which means more local jobs. This is an exciting new industry that shows great promise for the future.  

While I was in San Francisco, I also had the pleasure of meeting Nikolas Weinstein, founder of Nikolas Weinstein Studios and presenting him with an Export Achievement Award for all the work he’s done abroad. Nicholas Weinstein Studios creates unique architectural glass installations in the Mission District of San Francisco, although over 90 percent of their work is sold abroad. For example, in 2010, the studio designed, manufactured and installed a 300-foot long glass sculpture in the lobby of the Hotel Intercontinental in Shanghai. In 2009, they began working with the U.S. Commercial Service in San Francisco to seek counseling on international markets in Japan, China and Hong Kong.

Nicholas Weinstein Studios is the perfect example of a small business using exports as a way to support good-paying jobs in America. The bottom line is: exports equals jobs. To find out more about how to use the resources we have at ITA to help your business export, I urge everyone to visit www.export.gov.

Posted in Competitiveness, Exporting, International Trade Administration, Investment, Small Business, Trade Missions | Tagged , | 2 Comments »

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For Columbia Technologies, Success in the Global Market is about Commitment and Execution

July 24, 2012

This post contains external links. Please review our external linking policy.

Doug Barry is a Senior International Trade Specialist in the Trade Information Center, U.S. Commercial Service within the International Trade Administration.

John H. Sohl III is founder of Columbia Technologies, a Maryland company that maps underground pollution from large manufacturing facilities, oil terminals, pipelines and military bases. The company is a client of the Baltimore Export Assistance Center. 

Barry:  How do you map underground pollution?

Sohl:  Mapping involves deployment of sensor technologies that track leakage and migration of pollutants.  Following analysis by our technicians, customers can make decisions on risk assessment, disposition of the property and proper cleanup actions. 

John Sohl, owner of Columbia Technologies, conducting training for partners in Mexico (Photo Columbia Technologies)

John Sohl, owner of Columbia Technologies, conducting training for partners in Mexico (Photo Columbia Technologies)

Barry:  Tell us about the company history.

Sohl:  I started the company about 15 years ago after doing similar work in the U.S. Navy.  I was always intrigued with the application of sensors and three-dimensional mapping of components, and that’s the approach we brought to the industry.  The world really is getting flat and many of our clients are global industries that have footprints both in the U.S. and North America as well as the globe.  So once we’ve established a good working relationship and reputation with those firms, they sought to bring us into other parts of the globe.

Barry:  So your initial market entry strategy was to piggyback on clients here in the U.S. and ride them into new markets.

Sohl:  Exactly.  And Columbia started closer to home, as many U.S. exporters do. We first migrated up to Canada and performed services up there and sort of cut our teeth on export, and the second, we went down to Mexico and performed the same types of services, and additional services in Mexico.  And so that’s been the first two exports in terms of direct boots on the ground, so to speak, of sensors and folks.

Barry:  Any additional boots?

Sohl:  Yes, in Latin America, including Brazil, Argentina and Colombia. Peru is likely the next target of opportunity.  We’re careful not to grow too fast.  What’s our capacity as a small business to move into markets?  We’re focusing on Latin America at this point in time based on the customer base and the business deals that we can put together in those markets.  Next will be Asia but that’s a much more complex world.

Barry:  Is employment growing in step with the international business?

Sohl:  We’ve grown recently from 10 employees to 13. We expect to double the size of the staff once the Brazil projects are fully underway later this year. International means a lot to us.

Barry:  What was the biggest surprise for you in getting out in the world?

Sohl:  Well, nothing bad.  The biggest is the enthusiastic welcome we as people and our services receive wherever we go.  But I think what was really a very pleasant surprise was how eager people were to help us move into those countries and bring the services in there, because a lot of what the technologies that the U.S. companies have are unique in some of these other locations.  I was really welcomed with open arms to come down there. The expertise, the experience, the technologies are very important. Yes, I think many of the purchase decisions are made based on the fact that we are bringing to these countries quite a valued proposition.

Barry:  Any horror stories with getting paid?

Sohl:  I can say, so far, our experience has been nothing but positive.  We had very, very little issues with payment terms, and certainly had some slowdowns in moving equipment and things into various countries, but nothing that we didn’t really anticipate.

Barry:  Tell us how you got started in Mexico?

Sohl:  We had already decided to go to there and then we heard about a trade mission called Trade Winds that was being held that year in Mexico. A major benefit of working with U.S. Commerce was that we attended the Trade Winds expositions, where were connected with a lot of commercial officers from Mexico and throughout Latin America.  We got introductions to people who expressed an interest in purchasing our services. We were briefed on Mexican customs regulations and the best methods to get our equipment in and out of the country.  So even if I’m visiting on a non-official visit to the Commercial Service side, I’m able to get an audience and gain some help from those people locally based. Being welcomed, being introduced to people in the business community in Mexico was very beneficial for us.

Barry:  What’s your advice to companies considering starting to export or expanding to new export markets?

Sohl:  Probably the primary piece of advice is don’t feel like you have to do it alone.  I mean, the Commercial Service is there to help.  Sit down with your local representative, lay out a strategy, think through the strategy and don’t just try to go execute without thinking through all the pieces of the puzzle.  Use the resources.  Do it very systematically in a very coordinated planning mode.  You don’t have to do it as a fire drill.  Another lesson is that our competition is foreign.  It wasn’t all invented in the U.S.  So, yes, there is strong competition from Europe, strong competition from some of the Asian countries and from Australia.  We need to understand that it’s not just a U.S. market out there.  It’s very much a global market.

Barry:  What’s the key to getting repeat business?

Sohl:  The international business validates the operating mission of our company, which is its execution.  If you do your job well and you provide a good value for a fair price, you’re going to succeed in these countries and with your customers.  You can’t fake it.  So if you’re going to be in a country and executing in that country, you need to go ready to do the job and do it right. 

Once we make the decision to export and entry into a country, we’re going to stay.  So we go to build long-term relationships, both with our customers and with our partners. We’re not there on sort of a just drop in, do some work and leave kind of thing.  You have to go at it with a long-term perspective.

Posted in Commercial Service, Competitiveness, Exporting, Small Business, Success Story | 2 Comments »

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Commerce Comes to Your Town – Pittsburgh

June 19, 2012

Francisco Sánchez is the Under Secretary of Commerce for International Trade.

Yesterday I toured Aquatech International’s facility in Canonsburg, right outside of Pittsburgh. The company has been working with Commerce Department staff to export more of their products, and it was great to see up close the great work being done at their facilities. 

(from left to right) Lyn Doverspike, Director of the Commercial Service Pittsburgh Office, Harlan Shober, Washington County Commissioner, Under Secretary Francisco Sanchez, Nate Nevela, District Field Director for U.S. Congressman Tim Murphy , Dennis Gray, Aquatech Vice President of Operations and R.Suresh Kumar, Vice President (Projects) Infrastructure - Major Projects.

(from left to right) Lyn Doverspike, Director of the Commercial Service Pittsburgh Office, Harlan Shober, Washington County Commissioner, Under Secretary Francisco Sanchez, Nate Nevela, District Field Director for U.S. Congressman Tim Murphy , Dennis Gray, Aquatech Vice President of Operations and R.Suresh Kumar, Vice President (Projects) Infrastructure – Major Projects.

Established in 1981, Aquatech is a global leader in water purification technology for the world’s industrial and infrastructure markets, with a focus on desalination, water reuse and zero liquid discharge. Aquatech is also a socially responsible company. Their products help to solve the problem of water scarcity abroad. They also help support numerous nonprofits that work to provide clean water to those without access to drinkable water.

Our visit to Aquatech is a part of wider Department of Commerce campaign, announced last month, called “Commerce Comes to Your Town.” Here at the International Trade Administration (ITA), we stand ready to provide American businesses the tools and resources they need to export their goods and services all around the globe, grow their businesses, and create more good-paying manufacturing jobs for Americans.

I can’t stress enough how important exports are for America’s economic future. Forty-one companies that successfully grew their exports recently received the President’s “E” Award during a ceremony at the White House. As part of “Commerce Comes to Your Town,” I’ve spoken in towns across the country and met with business leaders to get their input and spread our message. In fact, earlier in the day, I attended the TechBelt Export Summit in Youngstown, Ohio, where I was able to speak about how important exports are to that region.

Nationally, exports support 9.7 million American jobs, many of them from the manufacturing industry which has seen nearly 500,000 new jobs created in the past 27 months. Exports have provided Aquatech with new growth opportunities that help support good-paying local jobs in the Pittsburgh area. Demand for its products is strong across the globe, and exports account for 50 percent of sales. Not only that, but Aquatech has grown to more than 600 employees since they were founded in 1981 and expect to add 30 to 50 new jobs in the near future due to growth in overseas markets.

We’re not the first to have noticed their achievements. Aquatech has received awards as far back as 1995, and they received the Export-Import Bank’s Small Business Exporter of the Year Award in 2009.

Aquatech is just one of many companies that I’ve had the honor to meet with that has been able to take advantage of the tremendous growth opportunities offered by exports. Given that roughly 80 percent of the world’s purchasing power resides outside the U.S., there are plenty more opportunities. The Commerce Department is committed to helping businesses seek out these opportunities to grow their businesses and employ American workers.

To access these resources, I urge everyone to reach out to your local trade specialists to talk about opportunities. Visit our www.export.gov website to learn more about exporting. From assessing your export readiness, learning what it takes to begin exporting, to finding export opportunities to contacting a local trade specialist in “Your Town” to help you take advantage of exporting, it’s all there.

Posted in Commercial Service, Competitiveness, Exporting, International Trade Administration, Manufacturing, Small Business, Success Story | 1 Comment »

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Overcoming Cultural Challenges in Selling a Product Worldwide

June 15, 2012

Doug Barry is a Senior International Trade Specialist  in the Trade Information Center, part of the U.S. Commercial Service.

Elena Stegemann, International Business Manager for NuStep Inc., a specialty fitness equipment maker, visited the White House recently to receive the Presidential E Award for accomplishments as a small business exporter.  She shared her Michigan-based company’s story as well as her own personal journey with me.

Barry:  The founder of your company is a serial entrepreneur.

Stegemann:  Yes. Our owner and CEO, Dick Sarns, is a biomedical engineer.  He actually had another company before this one.  He is the creator of one of the first heart-lung machines in the world.  He had a company under a different name which he took global, by the way, and was also the winner of an E Award back in 1974.  So we have a good history here.

Elena Stegemann, International Business Manager for NuStep Inc. operating one NuStep's machines at Arab Health 2012 (Photo NuStep, Inc.)

Elena Stegemann, International Business Manager for NuStep Inc. operating one NuStep’s machines at Arab Health 2012. (Photo NuStep, Inc.)

Barry:  Did the heart-lung experience lead to this more recent venture?

Stegemann: After he sold that business and after he had been immersed in the experience of working with people who had cardiac problems and got to have such a problem that they needed a heart-lung machine, he decided to focus with his next company on prevention.  Prevention, we now know, is exercise.  But 20, 30 years ago, that was not a well-known fact. 

Barry: The business is based on an exercise machine?

Stegemann:  Yes.  So he has developed a machine that allows people to exercise in situations where they typically wouldn’t be able to just walk into a gym and hop onto a treadmill because they have some kind of a physical condition that prevents them from doing that.  Sometimes it’s just old age.  Sometimes it’s obesity.  Sometimes it’s medical conditions like multiple sclerosis or stroke that make exercise very challenging. 

We manufacture a seated cross-trainer. And because of its unique design, when a person is able to move at least one limb – so let’s say your right hand – and the rest of your body is paralyzed, because of the design of the machine, once you move your right hand, everything else moves in a passive response. Some people have not seen their legs move either ever or in a very long time.  And they are able to sit down, get on a NuStep.  Their legs get strapped in with special adaptive devices that allow them to be locked in an ergonomically-correct position.  Then they start using their hands and lo and behold, their legs are moving.

Barry:  The patients must be amazed. 

Stegemann: You have to understand it’s not just a physical transformation.  It’s everything about that person changes in that one moment.  So we get to bring those moments to people now around the world, not just in the U.S.

Barry:  Finding buyers around the world didn’t happen overnight. What was the biggest challenge in bringing this technology to a global market?

Stegemann:  I would say the biggest challenge that we face on a daily basis entering new markets is the mindset that people have in other parts of the world that exercise is not necessary.  We now kind of almost intuitively accept the idea that exercise is a critical aspect of the wellbeing of every person – young, old, healthy, disabled, whoever you are.  There are many people around the world who really have not embraced this idea yet.  So when I walk in there and I try to tell them about this, you know, exciting opportunity for their residents, they look at me like I’m crazy, like what, you want grandma to exercise, she has worked hard her whole life, she needs to sit on the couch and drink tea and watch the telly, right?

Barry:  How did the Department of Commerce help with a challenge that goes to the heart of the acceptance of your product among disbelieving potential customers?

Stegemann:  Early on when I took on the role of international business manager for the company, one of the things I was tasked with is creation of a go-to-market strategy, how are we going to do this, how is this little company in Ann Arbor, Michigan, was going to reach out to the rest of the world. I made the decision that we were going to work with distributors around the world and we were going to build up a team of really sophisticated visionary-type of companies who really got the idea and understood the challenge that they were going to have in creating awareness for our product in their market. This is where the U.S. Commercial Service has been an invaluable resource to us.

Barry:  What did they do for you?

Stegemann: They’ve helped us find and checked out distributors for us in Brazil, China, Mexico, Korea and other countries.  I went to a medical device trade show in Germany and the U.S. Commercial Service staffed the USA Pavilion.  We had our own interpreter.  He made appointments for us.  And as a result of those meetings, we ended up having distributorship agreements that are still in place in Germany, in Australia and in Italy – not bad, okay?  This was the first year that we decided to go international.  And if we hadn’t gone to MEDICA and hadn’t used the Commercial Service, I think that would have delayed us by several years.

Barry: Give us a sense of what international sales mean to your company?

Stegemann:  We are now in 25 countries, which is pretty good.  Our international business is now about 15 percent of our revenue.  So if we didn’t have that it would hurt. And that’s 15 percent, from almost nothing.  So we’ve added people.  We’re hiring people.  We’re keeping other people not just in our company but other people working with trucking, logistics, banking, letters of credit, packaging, all kinds of people are working because we are shipping containers of stuff.  We also make a priority of hiring local people who lost their jobs, some of them from the auto industry.  They know how to make things.

Barry:  And you’re helping keep us employed at the U.S. Commercial Service, and we thank you.

Stegemann:  And that too, exactly.  I’m glad.

Barry: As you’ve traveled around to the nursing homes, hospitals, tradeshows and so forth, are you learning anything that has made NuStep a better company?

Stegemann:  Absolutely.  It’s been an additional benefit for us because when I go to trade shows, when I go to visit with customers or potential customers in other countries, they’re asking me questions, like, well, can you product do this, can you do that?  Sometimes the answer is: I don’t know; we’ve never thought of that because in the U.S. no one has ever asked us this question.  I feel like being a global company is giving us a competitive advantage over other companies because we may see a trend that will eventually come to the U.S.  So we have the opportunity to see the future. 

Barry:  Can you give us an example of one maybe innovation or change that you made on your device as a result of something you observed somewhere?

Stegemann:  We are always innovating our product line, and use ideas that we get from the tradeshows we attend globally, but unfortunately I am not at liberty to disclose any details just yet.

Barry:  You recently went to the White House to receive the Presidential award.  You told me you were born in the Soviet Union.  What was going through your mind?  You said you were considered at one time as the enemy.

Stegemann:  If somebody had told me back then that I was going to be a U.S. citizen one day, that I was going to travel and represent the United States one day with an American passport and that I would end up invited to the White House one day, I would have just laughed.  I mean, it was just so incredibly unbelievable.  To people all over the world I’ve met, I’m the lady from America.  I’m sorry.  I get very emotional. 

Barry:  As a woman out in the world, is that an advantage or disadvantage or is it nothing?

Stegemann:  It’s all of those. I see it as an advantage.  So I just treat it as such.  Whether it is or it isn’t is up to the other person to decide.  Being a businesswoman and dipping your toe in the waters is a transformational opportunity–for myself but also for other people that I interact with.

Posted in Commercial Service, Exporting, Manufacturing, Small Business | Tagged | Leave a Comment »

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Made in Maine

June 14, 2012

Kim Glas is the deputy assistant secretary for textiles and apparel within the International Trade Administration’s Import Administration division.

The International Trade Administration’s (ITA) Assistant Secretary of Commerce for Import Administration, Paul Piquadoand I last week toured New Balance and Auburn Manufacturing, Inc. (AMI), two Maine companies that are producing high quality, Made in USA products.

Assistant Secretary of the Import Administration Paul Piquado and Deputy Assistant Secretary of Textiles and Apparel Kim Glas in front of New Balance footwear factory in Skowhegan, Maine with workers and management following tour.

Assistant Secretary of the Import Administration Paul Piquado and Deputy Assistant Secretary of Textiles and Apparel Kim Glas in front of New Balance footwear factory in Skowhegan, Maine with workers and management following tour.

At New Balance in Skowhegan, the tour showcased New Balance’s American-made and designed footwear manufacturing. The Skowhegan facility is one of five New Balance footwear plants located in New England, collectively employ roughly 2,700 workers. The company is the only firm that currently manufactures athletic footwear in the United States.

At AMI in Mechanic Falls, we toured the company’s state-of-the art facility that produces fire- and heat-resistant textiles. AMI is a small, woman-owned business employing 50 people in the Lewiston-Auburn area. AMI produces textiles that protect people and processes from extreme heat and flames. AMI also manufactures end-use products including a patented, modular insulation kit, and a line of first-ever hot work safety blankets that are third-party certified. For over 30 years, the company has been producing advanced products that meet stringent U.S. military and safety standards. Its reputation as an industry leader is a direct result of an ongoing commitment to investing in innovation and technology.

After the tours of the New Balance and Auburn Manufacturing facilities, Assistant Secretary Piquado and I had the opportunity to have a discussion with company employees and management, to hear their viewpoints regarding U.S. manufacturing, the challenges they face and the successes they have achieved.  One focus of the Obama Administration is strengthening the economy by growing U.S. exports and export-supported jobs.  Hearing directly from the workers at these two facilities helps us to better understand the challenges facing U.S. companies to achieving this goal. 

As locals know, the importance of exports to Maine’s economy is significant. Over one-sixth of all manufacturing workers in the state depend on exports. That is why this trip was so rewarding. 

One of the main objectives of our office – and ITA as a whole – is to promote the competitiveness of textiles, apparel, and footwear in the domestic and international markets, in support of U.S. industry and jobs. Both New Balance and Auburn are accomplishing this as they export their products worldwide – and our office is committed to helping similar Made in the USA brands have similar success.

Please visit the Office of Textiles and Apparel website for more information about the services and information we offer.

Posted in Competitiveness, Exporting, International Trade Administration, Manufacturing, Small Business, Success Story, Textiles | Tagged , | 2 Comments »

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