Mackinac Policy Conference Update: Michigan Origins, Global Destinations

Day Two: A Focus on Exports

5/30/2012
By Kurt Brauer, Partner

Deanna Richeson manages the export program for the Michigan Economic Development Corporation (MEDC). She said Michigan ranks ninth in exports to the global market, exporting $57 billion in goods each year. She focused on how to expand the state's existing capacity for international trade.

Michigan's strategy has been to separate the state into 10 regions and deal with each region's possible contribution to the global market, such as agricultural or manufacturing.  Since they have begun working with the regions, 53 companies have visited 41 new export markets.

Alec Amstutz is a vice president for DCL in Charlevoix, which handles raw materials and manufactures components for handlig bulk materials. He spoke about the state's opportunities to expand into foreign and/or emerging markets, including 90 countries.

DCL has 38 sales forces around the globe. He has seen slow but steady growth internationally for exports. He stressed the importance of sales in foreign countries because the sales can provide a presence that may trigger development of a manufacturing facility. South America is a current upward trending market, he said. The goal is to get a foothold in South America to serve Brazil and surrounding countries. He has found that translating marketing materials into Russian, Arabic and Spanish has helped manufacturers gain a foothold in foreign countries.

Fritz Carlson, president of Acme Manufacturing in Detroit, is focusing on new clients in foreign countries, many of which do not sell to U.S. market. You do not need to be a large company to be a successful exporter, he said. Exports as a percentage of his sales have gone from 10% in 2001 to 70% this year. Brazil is a rapidly growing market, he said. The key is in avoiding the Brazilian import tariff.
 
He reiterated that one key to success in foreign markets is having a local presence. Relationships with agents and customers in other countries is crucial. Spending time at trade shows and with potential customers is crucial to developing leads and relationships. "Trade shows are a must if you are going to do business overseas," he said.
 
Opportunities overseas are great, he said, citing as an example the fact that $83 billion was spent on tools worldwide in 2011. Only $7 billion of that was in the U.S. Acme buys materials from more than 60 Michigan companies, and is collaborating with other tooling companies to encourage them to purchase from Michigan suppliers.

Marcos Dantus' company, BioPhotonic Solutions, works with international distributors to grow foreign market sales and increase marketshare. Focuses on using Michigan companies for supplies, machining and printing. Works with the MEDC and U.S. Department of Commerce for commercialization and export.

Takeaway: Michigan has a very strong manufacturing presence domestically, but has growing opportunities internationally. State and federal resources are available for small- and medium-sized businesses.

Other 2012 Mackinac Policy Conference Updates:





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