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U.S. Sock Maker Pedals Through Trials to Reach Global Markets

July 31, 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.

Shane Cooper is president of DeFeet International, a maker of cycling and other socks in Charlotte, North Carolina.  He’s a client of the Charlotte Export Assistance Center.  Over the years and despite substantial adversity, he has built the business that now includes distributors in 35 countries.  I chatted with him during his trip to Washington to receive the Presidential “E” Award for excellence in exporting.

Barry:  Tell us what you make and how DeFeet started.  Where did you get the idea?

Gerd Klose, Managing Director of DeFeet's distributor in Germany Lynn Moretz, VP International Sales and Shane Cooper, founder of DeFeet display their products during the Eurobike show in Friedrichshafen, Germany. (Photo DeFeet)

Gerd Klose, Managing Director of DeFeet’s distributor in Germany Lynn Moretz, VP International Sales and Shane Cooper, founder of DeFeet display their products during the Eurobike show in Friedrichshafen, Germany. (Photo DeFeet)

Cooper:  My wife and I were bike racers back in the early ’90s.  And in the summertime, she was supplementing her income by racing bikes as an amateur and I was spending her supplemental income as an amateur on my bike racing.  And my father was a sock knitting machine technician and sold the parts.  And so I grew up in the sock industry.  And I was a cyclist.  One day, I decided to make socks to pay for my racing.  It just kind of happened from there.  We made the world’s best sock for cycling and that was 20 years ago.

Barry:  Is that a pair of your socks on your feet?

Cooper:  Absolutely.  This is the Peloton, made of merino wool.  And if you notice, there’s a group of cyclists.  And the yellow jersey’s right there. And “peloton” is a group of cyclists.

Barry:  Tell us your biggest challenge in going international.  You had this great background and created the product.  But very few U.S. businesses go outside the country looking for customers.

Cooper:  It happened by chance.  We created product that world-class cyclists were taking over to Europe.  And we had this product on their feet.  So there was a desire from the customer before we had international distribution.  And so our brand grew from there.  Cycling in Europe is tremendous in size, similar to American baseball and football.  I was struggling myself, not being a true businessman.  And I met this wonderful man, Lynn Moretz, who came into our company and became my mentor and helped us capitalize on this desire that we had created as a brand into a real business.  And so Lynn was able to take it into these countries and give structure behind the madness that I had created.

Barry:  Your product was transported by your U.S. customers and introduced to potential international buyers to where it really became a process and a strategy.

Copper:  Yeah, process and strategy, pricing structures, the advent of the Internet and what was going to play there and how it was going to actually work and these international customers over the course of the last 20 years were coming to our website, finding the product and going, “where can I get it”?  They would see it on the best riders in the world.  And they’re asking where they could get it.  I was too busy paying attention to R&D and the product to really focus on that.  And then Lynn came in and provided that structure to actually make it happen.

Barry:  What in your mind was the biggest challenge that you overcame and that your collaborator overcame in that area?

Cooper:  Well, unfortunately the year that my collaborator, Lynn Moretz, came to DeFeet, we burned down.  We lost everything we had – 2001, October, right after 9/11.  And so we had nine months of no production. 

Barry:  That would be a crushing thing to happen for most people.  How did you manage to rise from the ashes, as it were?

Cooper:  I would like to say that I cut my hair off and used that to rebuild the building.  But I think the hair came off in the process somewhere.  We had insurance that covered the building, the equipment and the contents.  And then we had insurance for business loss, income loss, which turned into a court battle for three years.

Barry:  What happened next?

Cooper:  And so when we finally got the check, we had to pay taxes out of that money because it’s business income.  So for seven years – the first nine years of our business, we were profitable every year and growing organically.  The banks loved us – or the banks hated us because we actually paid the loans off too early. We had seven years where we made no money after the fire.  We became profitable again and started winning the business back.   OK, keep this in mind.  It’s 2008.  We’re profitable that year just in time for the worst economic downturn in world history that we know about, other than the Depression.  And the fortunate thing is that these bicycles were being pulled out of the garage and people were putting tires on it and commuting. And it made the bicycle shops flush with cash.  The dollar was going crazy with the euro. So all of a sudden, after seven years of struggling, we made it through.  And now, we’re four years in with profits again.

Barry:  Did international expansion save you?

Cooper:  If we didn’t have our international business, gosh, I don’t think we would have made it. 

Barry:  So you and your wife are pretty persistent.  Do you think that persistence is a useful skill to have in the international marketplace?

Cooper:  I think persistence is something that you have to have to be in business in any country.  In my opinion, it may come from the bike racing that we did that hardened us and toughened us up.  And we’re not quitters.  We could have shut our plant down and moved it to Asia and had socks made over there.  But we decided to stay put.  We never missed a pay period with our employees.  And we buy local yarn and boxes.  So even though we’re only 38 employees now, the benefit is pretty widespread when we buy locally.

Barry:  Why not outsource to China?  Wouldn’t it be cheaper in the long run?

Cooper:  Cheaper – that’s a good word. I prefer the word value.  And what we prefer to use that word value is for long-lasting goodness, affordable price and a sock that’s going to last 10 years.  I don’t like the homogenization of other sock brands making their product in the same plant that I’m making mine in and all of a sudden my trade secrets are gone.  I don’t like the environmental issue. I don’t like the lead in the toys, the drywall issues with radioactive materials and the lunch boxes with the toxic waste in them.  You hit a nerve there.  And so American-made to me is control.  It’s American jobs.  It’s quality, and mostly it’s value. 

Barry:  And when did the U.S. Department of Commerce and the U.S. Commercial Service in particular come into the story?

Cooper:  Anytime we have a question about a tariff, or when we’re dealing with Australia and we’re not sure what to do, or a new free trade (agreement), or some new idea comes up, we call the (Export Assistance Center) office in Charlotte.  Then there are international textile agreements and an understanding of how the sock is structured with what material and where the fibers come from and what category it fits in.  You guys have been a great help there.  You’ve got to remember, I was a dumb bike racer, a bad one at that.  I wasn’t a businessman. 

Barry:  Have you learned things from your customers in Europe that you’ve been able to apply to your products that have helped you sell other places?

Cooper:  We get input from the word’s best riders.  Paolo Bettini, the Italian national champion, Olympic champion – sat down with me and we had a translator on what he needed in a sock. We then listened to him and made that sock available to the public.  So we used the world’s best cyclists to develop the sock, like astronauts, and then we took it to their fan base. 

Barry:  Is it a trade secret or can you tell us what he told you?

Cooper:  That is a trade secret. 

Barry:  Can you share some advice with us for other companies that are thinking about exporting?

Cooper:  My advice is figure out what your strengths are.  Use every available government agency’s help as well to really make your life a lot easier.  If you don’t have the skills or time to so the international, hire someone who can do it. 

Posted in Commercial Service, Competitiveness, Exporting, Success Story, Textiles | Tagged , , | Leave a Comment »

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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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Hard Work and a Desire to do Better Powers this California Company around the World

July 12, 2012

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

Kusum and Mukund Kavia were a young married couple who came to the U.S. from Bangladesh via London. They settled in the U.S. with very little money but had their youth and the immigrant’s determination to succeed—a kind of secret sauce in the creative curry that is Southern California. Currently, their company works in 10 countries and will soon add Iraq to the mix. 90 percent of revenue comes from international sales.

In 2011 at a White House ceremony the company received the Presidential “E”- Award for excellence in exporting.  Combustion Associates is a client of the Export Assistance Center in Ontario, California.  I recently spoke with them about their story.

One of Combustion Associates 80 MW power plants being assembled in Benin, West Africa (Photo Combustion Associates, Inc.)

One of Combustion Associates 80 MW power plants being assembled in Benin, West Africa (Photo Combustion Associates, Inc.)

Barry:  You own Combustion Associates, Inc.  What do you do there?  Combust?

Mukund:  You are very close.  We design and build power generation systems using aero-derivative turbines, the kind which power aircraft. Our company provides modular power plants in the range from 1-megawatt to 10-megawatt.  Now, a 1-megawatt is the size of a 40-foot container and can power 1,000 U.S. homes.  So, when we take it to emerging countries such as Africa or East Europe or Central America, they can power villages.

Barry:  Since these villages aren’t on a national power grid, having reliable electricity helps in a variety of ways.

Mukund:  Absolutely.  Our units are there not only for power but to really help the local economy grow.

Barry:  When did you get started?

Mukund:  We started in 1991 with just a 200 square foot office.  Today, there are 60 employees with a 40,000 square foot facility.

Barry:  What was the biggest challenge the company faced getting started in the international marketplace?

Mukund:  We were not recognized in the industry.  So being a small company, we had to make a name for ourselves out there.

Barry:  How’d you do that?

Kusum:  We partnered with the U.S. Commercial Service (of the Department of Commerce) to spread our name, spread what we did, and that really elevated us to a level that we were able to be in front of the customer at the international level. Since the Commercial Service has representatives in these countries they can help find buyers for us. In some case we invite prospective customers to our facility in California.

Barry:  How did this work in the early days of the business?

Kusum:  It was interesting. We didn’t have a suitable place to meet.  One of the biggest things that I remember Fred Lauterperisa (the director of the Export Assistance Center) doing is opening up his office to us.  When I called him, he said, ‘please use my conference room.’  And that’s what we did.  We actually had our customers meet us at the U.S. Commercial Service in Ontario (California) and utilize their conference room. 

Barry:  What else did Fred do for you?

Kusum:  He also arranged for representatives of the Export-Import Bank of the U.S to attend the meeting and discuss Bank programs that provide loan guarantees to the U.S. companies for extended payment terms and money for more inventory.  Funding is also available for foreign buyers to purchase U.S. products from companies like ours.
 
Barry:  I take it that government export promotion programs have been something of a gold mine for you. 

Kusum:  The government both at the local, state and federal levels really go out of their way to help businesses blossom and grow.  And we have found that everywhere that we have gone and told people about our story, they have opened up and they have said ‘how can we help you?’

Barry:  What advice do you have for other U.S. companies that haven’t entered the global market because of fear of failure, lack of knowledge or other reasons?

Kusum:  Don’t limit yourself.  You’re already doing something that you know is your passion.  All you have to do is get out of your comfort zone and don’t limit yourself. You’re going to have different challenges – some new, some old.  But I would encourage everyone that is looking to export to say, ‘Please, why haven’t you thought of doing that?’  As Americans, I believe that all of us want to reinvent ourselves. We want to be the best we can be so that we are able to export U.S. products overseas that are quality, cost-effective and really a win-win for the countries that we’re doing business with.  At the same time, we want to go out there again and do so much more for this great country of ours, which really is a welcoming opportunity for anybody that wants to work hard and do better.

Posted in Commercial Service, Competitiveness, Exporting, Success Story | Tagged , , | Leave a Comment »

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A Gold Key Unlocks Global Growth for Cleveland Company

June 22, 2012

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

A record number of companies were recognized for their accomplishments in exporting at a White House ceremony this past May. Cleveland-based Jet Incorporated was represented by its chief executive officer Ron Swinko, who received the Presidential “E” Award. Swinko spoke with Doug Barry of the Trade Information Center, U.S. Commercial Service.

Barry: Can you tell us how the company started and what it does?

Swinko: The company was founded in 1955. The basic equipment the company designed at that time was to replace septic tanks with advanced technology, to treat the water using a smaller system and to allow the water to be discharged. Over the years, we expanded into commercial systems which are typically called small package plants for decentralized locations like small villages, hotels, resorts. That is the basis for our international growth as well.

Jet’s International Sales Manager, Gary Waite, trains the distributor and local operators on a new wastewater treatment plant in Kenya. (Photo Jet, Inc.)

Barry: For the non-scientists, can you give us a quick overview of how things work?

Swinko: It’s biological wastewater treatment. So anything that comes from either the sinks or the sanitary systems in a home or in a building that water enters into the system, into a tank where the solids are digested by aerobic bacteria. And part of our system is designed to inject air that promotes the growth of that aerobic bacteria.

Barry: Tell us about the international part of your business. How did that start and what was the biggest challenge in getting going?

Swinko: It started with inquiries because of the technology that was developed. The founder, David MacLaren, was certainly an innovator. And he was also very interested in expanding the technology internationally. He obtained a series of patents in several countries over the years. The most significant challenge was servicing our international distributors. And by servicing that means having enough inventory to meet their demands for immediate shipment, understanding what the export requirements are and ultimately providing solid responsive technical support for systems that have been installed globally.

Barry: You do a lot of work in developing countries. Has that been a challenge?

Swinko: Educating customers is a big challenge. Developing countries may be focused on environmental sustainability, even to a greater extent than we are here in the U.S., because of the scarcity of water. But they may not necessarily understand the benefit of regulation or the type of equipment that’s available. Over the last couple of years, one of our initiatives has been to educate regulators in, for example, the Cayman Islands and in Kenya. We hosted a seminar on wastewater management for the architects association of Kenya into at least provide some education about  how wastewater treatment systems can generate water for reuse and how that can be incorporated into sustainable projects for apartment buildings and resorts.

Barry: Who did you turn to in order to find a solution to that challenge?

Swinko: We’ve used the U.S. Commercial Service quite extensively. They have a wonderful service called the Gold Key, and because our business relies on increasing the number of distributors, we look for partners in developing countries who will act as distributors and who are technically capable either because they’re currently in the water purification business or because they’re in the construction business. We’ve used this service to expand into Southeast Asia and into South America. I just recently returned from a trade mission to Brazil that included four Gold Key meetings with potential distributors in Sao Paolo.

Barry: When you say Gold Key, do you provide the gold and they provide the key?

Swinko: It’s more mutual than that. But truthfully, the U.S. Commercial Service spends a great deal of time learning about our business, learning about and understanding our company and the requirements for distributors in the location, and then they evaluate potential distributor partners and partner companies in that area. They establish the Gold Key meetings after they’ve reviewed the capabilities and what our requirements are. Finally they look for a match, a good match I would say maybe in terms of company personality as well as technical expertise.

Barry: Let’s talk about the matches in Brazil. It would have been hard for you to fly in unannounced to Rio and Sao Paolo and open a phonebook. So they had a solution for that. But how did it work out on the ground?  Are you confident that good things will come of those meetings?

Swinko: Very confident. Part of the service includes an interpreter. So if there are any language barriers, particularly with technical terms or equipment, the interpreters are very capable. But for the most part they also look for companies that have good language skills in terms of an understanding of English. We’re quite confident that this was an excellent trip for us. And we’ve had more detailed discussions with two of the companies and we’ve already had three quotes for systems requested.

Barry: This was a U.S. Commerce Department trade mission?

Swinko: Yes. The trade mission itself was a combined effort by the Commerce Department with the Brazil- U.S. Business Council and the U.S. Chamber of Commerce. It was particularly impressive in terms of the level of government officials that we met with and the management level of the potential customers or clients that we met. We received very detailed technical presentations on their environmental sustainability programs – and certainly from our perspective the mission was well worth the participation and the trip.

Barry: Give us a snapshot of the company and its international growth.

Swinko: We have about 30 employees. All of our manufacturing is done in our Cleveland, Ohio, location. The business in the U.S. is highly dependent on residential construction. So during the last several years, of course, the housing industry has struggled which would be putting it mildly. In fact, it’s been significantly challenged, and while we have done reasonably well domestically, internationally the expansion has allowed us to actually increase the number of employees and add an additional engineer so that we could continue to support the international business.

Barry: What percentage of total revenues is international?

Swinko: International is about 25 percent with some nice year-over-year growth in the 30-plus percent range.

Barry: Where do you see it going in the future?

Swinko: I would say certainly maintaining those particular increases especially because of the markets where we have a significant presence, like Africa, and as well as South American and Latin American countries.

Barry: Are China and India on the horizon?

Swinko: China, no – partly because of intellectual property concerns but also because we have such strong presence in these other developing countries where we haven’t fully leveraged the market.

Barry: Explain the decision to do the manufacturing in the United States?

Swinko: The foundation of the company was in Cleveland. So there is a strong commitment to manufacturing and assembling as much as we can in the U.S. Quite honestly, there are some very distinct challenges with that because certain manufacturing processes and products are not available in the U.S. or if they are, they’re available at a high price compared to what you can purchase overseas. We do also try to work in Mexico to keep the supply chain as short as we can.

Barry: Is there a value in “Made in America” with your international customers?

Swinko: Without a doubt, especially in the environmental technologies equipment market. They greatly respect the regulation that we’ve had over the years that’s improved our air and water. And made in America or imported from America in many of these countries has a very strong, positive connotation to the equipment.

Barry: Can it make up for the premium pricing that is required?

Swinko: In many cases it can. In particular they do also evaluate whether and how many of your components may have been made outside of the U.S.

Barry: Would you say that you are a better company as the result of your international experience?

Swinko: I would say we’re certainly a better company, and we’re a better company because each of those countries, while they can use the basic equipment, do require some modification, and do require particular levels of service. So it’s really driven some of our innovation of the equipment systems.

Posted in Commercial Service, Competitiveness, Exporting, Manufacturing, Success Story | Tagged , , , , | Leave a Comment »

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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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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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3-2-1…..JOBS!

June 4, 2012

Kim Wells is a senior international trade specialist with 19 years of experience supporting commercial space exports.

By now, you’ve heard the news—for the first time ever, a commercial company has launched to and berthed with the International Space Station!  On May 22, SpaceX successfully launched its Falcon 9 rocket and Dragon capsule from Cape Canaveral, Florida to resupply the Station.  After three days of very precise maneuvers, the Dragon capsule then berthed with the Station and the astronauts, representing Russia, Europe, and the United States, opened the hatch door to welcome a new world of commercial space ventures.

View from the International Space Station of the SpaceX Dragon spacecraft as the station’s robotic arm moves Dragon into place for attachment to the station. May 25, 2012. Photo: NASA

View from the International Space Station of the SpaceX Dragon spacecraft as the station’s robotic arm moves Dragon into place for attachment to the station. May 25, 2012. Photo: NASA

Until now, this type of exploration activity in space had only been attempted by very few governments and no private companies.  But space exploration isn’t cheap, and with the retirement of the Space Shuttle, NASA sought a more cost-effective way to re-supply cargo to the Station.  The result was NASA’s Commercial Orbital Transportation Services (COTS) program, in which SpaceX and Orbital Sciences were selected to develop the ability to delivery cargo—and potentially, crew—to the International Space Station so that NASA could begin to focus its efforts on more challenging exploration ventures—like returning to the Moon or traveling to Mars.  On top of that, using commercial services for resupply is projected to save NASA up to $4 billion.  In just four and a half years, and only $300 million dollars, the all-American Falcon 9 rocket went from a blank sheet to first launch.  Hopefully, this successful launch and docking will be just the first of many, many commercial trips that support the international exploration of space.

The International Space Station has always been a collaborative venture.  Japan, Russia, Europe and many others contributed to its construction and continue to support its operation. But never before has the private sector been involved.  Until now.

This opportunity was also a big change for SpaceX.  Founded in 2002 by PayPal entrepreneur Elon Musk, SpaceX has privately built the Falcon 1 and Falcon 9 rockets from the ground up in its Hawthorne, California facility.  SpaceX employs over 1,800 people in high-tech jobs primarily in California, Texas and Florida, but also supports over 1,700 suppliers nationwide.  In fact, each Falcon 9 rocket launch supports over 750 jobs—220 at SpaceX and another 530 indirect positions!

The mainstay of any commercial rocket business is launching satellites.  We use satellites each day –whether we know it or not.  Rockets like the Falcon 9 have launched everything from communications satellites (so you can call your friends), GPS satellites (so you can find out where to go meet them), remote sensing/imaging satellites (so you can have an accurate map and picture of where you’re going), and broadcast satellites (so you can watch TV once you arrive).  In 2011, there were 18 commercial satellites launches around the world, which generated approximately $1.9 billion in revenue from the launches alone.  Most of those satellites were built in the United States, supporting thousands more high-tech jobs in suppliers across the country.

In addition to U.S. manufacturing, thousands of more jobs are created in the satellite services sector.  The commercial space sector provides jobs, and spurs innovation, exploration, international cooperation and partnerships.

While supplying the Space Station via commercial transportation is good business, its high-profile mission is also great advertising for the more traditional business line of launching satellites for customers–foreign and domestic.  The International Trade Administration works to support this type of advancement, not just at SpaceX, but for all U.S. companies.  SpaceX and other commercial space companies have worked closely with offices in the Commercial Service and Manufacturing and Services to identify foreign opportunities and address policy concerns that could impede their competitiveness.

This effort is a historic accomplishment for NASA, SpaceX, and the American space program, borne out of the ingenuity, hard work and determination to restore America’s domestic access to the International Space Station.  As a nation, we should be proud of this example of American innovation and technological achievement, the economic benefit that it provides to U.S. citizens and overarching rewards that are shared by people around the globe as we explore space together.

Posted in Commercial Service, Competitiveness, Exporting, International Trade Administration, Manufacturing, Manufacturing and Services, Success Story | Tagged , , , | 4 Comments »

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4 Steps to the President’s “E” Award Podium or How to Become a Top U.S. Exporter

May 30, 2012

Linda Caruso is a Commercial Officer with the Commercial Service.  She currently serves domestically in the Commercial Service Cleveland office in Ohio. 

May is World Trade Month and traditionally the time that the Commerce Department chooses to recognize U.S. companies with The President’s “E” and “E Star” Awards.  This year marks the 50th anniversary of the program which was created in 1961 by President Kennedy to recognize those people and organizations who contribute significantly to United States exports. Could this year be the turning point for you to develop an export strategy?

The 2012 Ohio "E" and "E Star" Award winners (left to right) Frank Reynolds of International Projects; Jim Huttner of Bionix; Ron Swinko of Jet, Inc.; Mike Ivany of Flow Polymer; Milton Knight of New Waste Concepts

The 2012 Ohio “E” and “E Star” Award winners (left to right) Frank Reynolds of International Projects; Jim Huttner of Bionix; Ron Swinko of Jet, Inc.; Mike Ivany of Flow Polymer; Milton Knight of New Waste Concepts

Maybe you are thinking, “What can I do to be invited to the White House for next year’s awards ceremony?”  Well to begin you can watch for an announcement from the Commercial Service office in your state about the release of the application. Check out the guidelines below to see how these top exporters were able to make great strides in capturing customers from around the globe. Follow in their footsteps and you may just be the next top exporter from your State.

1. Measure Your Export Growth
First and foremost, the White House looks for measurable statistics to show growth in exports. This means that applicants must provide actual data (i.e. not projected) demonstrating a sustained increase in total U.S. export sales in order to qualify for this prestigious award.  All of the companies who won this year’s “E” Awards were able to show that their exports grew overall for the period under review.  Despite the great global recession, or perhaps because of it, two Ohio companies were even able to achieve triple-digit growth. 

Jet, Inc. from Cleveland, Ohio manufactures residential and commercial wastewater treatment plants and related products. Now active in 25 countries, Commerce Secretary Bryson recognized Jet, Inc. this year for their focus and commitment to expand internationally – specifically to counteract declining domestic sales. As a result, this company has reaped the rewards of their engagement by reporting an outstanding increase of 111% in exports in the face of a flat domestic market.

Another Cleveland company and 2012 President’s “E” Award winner, Flow Polymers, saw exports nearly double as the company expanded into 28 countries from 2008 to 2011. This manufacturer of additives for use in the tire industry reported that international sales now contribute fully 50% to the company’s bottom line.  They must be doing something right for their exports to have nearly doubled since 2008. 

2. Showcase Innovation
In addition to expanding exports, it helps if your company can demonstrate innovation. Whether the innovative characteristic is the product itself or the particular path your company has carved to go to market, if you can present a compelling case about how your company overcame some of the many challenges unique to international business – you’re halfway there.

Luckily, innovation is a characteristic that U.S. exporters have in spades. But did you know that it can also serve as a secret weapon to catapult your company to new heights in export sales?  Read on to find out how some Ohio exporters rose to the top of their game through innovation.

Secretary Bryson recognized New Waste Concepts, Inc. of Perrysburg, Ohio for their innovative approach to new global markets.  Early on, company managers found themselves in a difficult spot when their U.S. customers who took them overseas in the first place, withdrew from the market entirely.  But instead of following suit, this manufacturer of patented spray applications for landfills was willing to completely change their business model and invest as partners in their overseas business development. 

The company also chose to build a significant web presence focusing on key product markets. They even have a full Chinese version of website allowing customers to check on their orders.

A second innovative strategy the company used was to position its employees as industry experts by speaking at trade shows and publishing white papers.  Jet, Inc. also used education and training to differentiate themselves in the marketplace and to gain leverage and influence in their sector. These two companies have shown that they were able to raise the profile of their company overseas and win the business ahead of the competition by changing their approach to market.

3. Sustain the Export Business
Once you’ve landed the contract or gained access into your overseas market of choice, the next question to ask is whether your success is sustainable.  If you can show how your company has learned and applied the lessons and gained repeat business – you’re almost there.

Bionix Development Corporation (BDC), a Toledo, Ohio company, was cited by the Commerce Department as an exemplary exporter for several reasons.  With clients in 47 countries and 6 continents, the company’s unique pricing and product placement strategy has netted them steady, consistent double-digit sales growth year after year.  This, and the fact that Bionix spends considerable face time with their international customers, allows the company to stay one step ahead of the competition on a global scale. 

4. Broaden Impact on Trade
Finally, if your exporting activities have had a broad impact on global trade or influenced other U.S. companies, you may have all of the ingredients necessary to be a President’s “E” Award Winner.  If you’ve forged new markets or created a replicable model that others can use, we’d like to hear about it!

This year, the Commerce Department recognized International Projects, Inc. with an “E” Star Award for their long-standing work in developing Incoterms® with the International Chamber of Commerce, and for sharing the fruits of their labor with thousands of U.S. exporters. The “E Star” was authorized in 1969 to recognize “E” Award winners for continued efforts in export expansion. As the lone American on the board, Frank Reynolds, President of International Projects, Inc., spoke up for U.S. interests so that Incoterms® 2010 would better reflect our unique North American business practices. 

So whether you are just getting started in exports or have already managed to gain a foothold in international markets, we’d love to hear from you.  Remember, we’ll be cheering for you as you walk onto the podium to accept your future President’s “E” Award.

Posted in Commercial Service, Competitiveness, Exporting, Success Story | Tagged , | Leave a Comment »

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A Bolt from the Blue: A Small Company Grows as Exports Expand

May 17, 2012

Doug Barry is an International Trade Specialist in the Trade Information Center, part of the U.S. and Foreign Commercial Service

Stress Indicators is a Maryland manufacturing company with six employees.  Much of the raw materials for the product as well as the final bolt are made in the U.S. and sold worldwide.  This year, production is expected to increase from 25,000 per year to 75,000, with additional increases expected next year.  The company credits the U.S. Commercial Service of the International Trade Administration with providing help needed to go global. Company president Charles H Popenoe, III shared his story with Doug Barry of the Trade Information Center.

Barry:  How did you get into this business and how did this business start?

Popenoe:  My father, also named Charles Popenoe, worked for National Institute of Standards and Technology as a scientist. And in his spare time, as a hobby, he was an inventor.  He still is an inventor. And he invented the SmartBolt and patented it.

Barry:  How did he do it?  Did he invent the SmartBolt in his garage or his basement?

Popenoe:  Yes.  Garage and basement

Barry:  And he just tinkered around, and there it is?

Popenoe:  Well, he saw an article in Popular Science about a bolt with a little glass window that breaks when you tighten it to the proper tension.  And so he said, well, that’s neat, but I can come up with a better idea than that.  And he worked and worked and actually took 10 or 15 years to develop it.

Charles H Popenoe, III, President of Stress Indicators with SmartBolts, a product his father invented.

Charles H Popenoe, III, President of Stress Indicators with SmartBolts, a product his father invented. (Photo Stress Indicators)

Barry:  How are the bolts used and by whom? 

Popenoe:  The applications are numerous.  But we’ve had one in particular that’s caught on, and it’s really caught on worldwide.  It’s our most successful application.  It’s used for electrical connections.  And basically you’re joining conducting bars and they’re carrying current, and they’ve got to be tight, or else you get heat buildup and potential of arc and other issues.  It’s easy for inspection as well, because you can just look at the bolt and know that it’s properly tightened because of the color of the indicator in the head without touching these high-current-carrying bars.

Barry:  When did you start selling outside the United States?

Popenoe:  We were really just focusing on the U.S.  We got a few inquiries from overseas.  And one that we cultivated was with a Turkish company.  It was 2009 when we got our first big order from them.  And at that point, the people we were working with suggested that I talk to the Baltimore Export Assistance Center (of the Department of Commerce) to help us get started in our exporting program.

Barry:  And have there been sales to additional countries since the sales to Turkey?

Popenoe:  Yes.  Our sales to Turkey are ongoing, so we’ve been able to keep that customer happy.  But we’re also selling to Taiwan.  We have a new agreement with a company in Australia to sell throughout Southeast Asia.  We’re selling to South Africa, Japan, Korea, and the list goes on really. We have a good Internet presence and website, and we’re strong on search terms like “tension-indicating bolts,” “torque-indicating bolts.”  And we get a lot of interest from overseas from our website.  We develop these leads right here in (Maryland) usually by email and we don’t have to travel.  I’m actually going to Istanbul next month to visit my Turkish customer.  They’ve become a very important part of our business so it’s about time I visited them.

Barry:  What other kinds of help have you received from government?

Popenoe:  One of the outputs of our work with the Export Assistance Center was being able to create a business plan to submit to the state of Maryland for an Export Maryland grant, which helps pay for some of our international sales efforts.  And that actually led to a U.S. Department of Commerce trade mission to Brazil that we did the following year.  So it’s really been a series of services and they’ve all helped, really.

Barry:  And a written export plan obviously was helpful to you.  What are the main components of the plan?

Popenoe:  Well, it’s really identifying our market.  But I think one of the key things is the recognition that SmartBolts is an outstanding product for export – because it’s high value, its unique; it’s the kind of thing that can be used in almost any industrial nation.  And so the foundation of our plan is that we have a very good product for export and that we have to treat the international market very seriously if we want to grow.

Barry:  Intellectual Property Protection.  It took your dad 10 years to develop it so this would hard to reverse-engineer it in short order.

Popenoe:  It is patented.  And we have a series of patents, some internationally.  But mostly we’re protecting it based on the fact that we’re the only ones that know how to make it, and it’s not trivial to manufacture, and we’re trying to stay ahead of the competition.  But at the same time, we know that the challenge is there.  And then we have to keep developing new products to stay ahead of those who would copy it.

Barry:  What percentage of your business is international?

Popenoe:  Well, last year about 50 percent of our sales was international.  So it’s very significant.  It may even be greater than that this year.

Barry:  Good.  And what advice would you have to other U.S. companies that are considering expanding internationally or getting into it for the first time?

Popenoe:  Well, I think your local Export Assistance Center has a lot of resources to help companies determine whether they’re a good candidate for exporting.  And I think that’s where I would start, because that will point companies in the right direction to see where they should go from there. The networking opportunities are also great.  And so at this point we’re a fledgling exporter.  But, you know, in the future I certainly hope to be a model and assist others in the same path. 

Barry:  Export sales as 50 percent of total revenue hardly fits with “fledgling,” but I admire your understatement and your modesty. Are you publicly traded?

Popenoe:  No, that’s not likely.  We’re still a small company–but we’re growing.

Posted in Commercial Service, Competitiveness, Exporting, Intellectual property, International Trade Administration, Manufacturing, Small Business, Success Story | Tagged , | 3 Comments »

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Persistent Exporters Recognized for their Achievements during E-Awards White House Ceremony

May 17, 2012

Cory Churches is a Communications and Outreach Specialist in the Office of Public Affairs within the International Trade Administration.

Today Commerce Secretary John Bryson presented 41 U.S. companies and organizations with “E” Awards and “E Star” Awards recognizing their significant contributions to the expansion of U.S. exports. These awards fall into two categories. The “E” Award for Exports honors manufacturers and service businesses, demonstrating a sustained increase over several years in selling U.S. products and services to overseas consumers. The “E” Award for Export Service honors export service providers that demonstrate how over several years they have assisted businesses to increase their exports.

Commerce Secretary John E. Bryson welcomes the 41 "E" and "E Star" Award winners to the Indian Treaty room.

Commerce Secretary John E. Bryson welcomes the 41 “E” and “E Star” Award winners to the Indian Treaty room. (Photo U.S. Dept. of Commerce)

The “E” Award was created by President John F. Kennedy on December 5, 1961, “to award suitable recognition to persons, firms, and organizations making significant contributions to the increase of American exports.” The “E Star” Award, which was authorized by the Secretary of Commerce in 1969, recognizes previous “E” Award winners for their continuing significant contributions to U.S. export expansion.

This year marks the 50th anniversary of the “E” Award and since its inception, more than 2,500 companies and organizations have been recognized for their excellence in exporting. The honorees this year are the largest group to be recognized with the “E” Awards and “E Star” Awards for their export achievements and the diversity of industries and communities represented is impressive. The 2012 receipents come from across the United States, from Bakersfield, Calif., to Baton Rouge, La., Bolingbrook, Ill., and Bradford, Pa. Of the companies recognized at today’s ceremony, 35 are small or medium-sized enterprises, 20 are manufacturers, and 17 companies are both.

For example, the 2012 recipients include:

Ambient Technologies is a small, Hispanic-owned business that has been providing geological consulting, drilling, geophysical and geographic services since 1993. With offices in Florida and Panama, Ambient employs more than 32 individuals in the United States and more than 12 internationally, mostly professional scientists, technicians, drillers and administrators. Ambient contracts with international consultants and engineering firms to deliver support services on projects in Central America, South America, and the Caribbean region. These projects include major construction and remediation projects with worldwide recognition, including the Panama Canal Expansion.

Founded in 1997, MyUS.com of Sarasota, Florida is a leader in international package forwarding and shipping, servicing more than 100,000 global consumer and business customers’ annually.  MyUS.com employs shipping experts to handle its customer’s international shipping logistics, package consolidation, export compliance and customs documentation needs for the approximately 2,000 packages MyUS.com receives daily.  With a global footprint in over 200 countries worldwide, MyUS.com has sustained its commitment to export expansion by continuing to provide excellent service to its customers. 

DeFeet International Inc., of Hildebran, North Carolina, manufactures high-quality, technical-performance sports socks, gloves, and base-layer apparel. Established in 1992, DeFeet has always manufactured its own products. In September 2001, the company lost their entire factory to fire. DeFeet was able to continue knitting and rebuild. The company is committed to making quality products using locally sourced materials, employing skilled craftspeople, and minimizing waste.

NuStep of Ann Arbor, Michigan, manufactures a recumbent cross-trainer designed for general fitness, as well as rehabilitation physical therapy of individuals unable to use regular exercise equipment.

McWong Environmental and Energy Group of Sacramento, California provides environmental design services and equipment for wastewater treatment projects in China.

These are just a few examples of the companies recognized today. Each story differs, but at the heart of their success is their willingness and ability to tap into markets outside of our borders.

Today people want products “Made in America” and these manufacturers, service companies, and export service providers from across the country are helping to make that possible.

Posted in Commercial Service, Competitiveness, Exporting, International Trade Administration, Manufacturing, Services, Success Story | Tagged , , , , , , , | 3 Comments »

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