The United States Commercial Service helps small and midsize businesses put together export strategies.
Bob Mraz is a 21st-century jetsetter – sealing deals in Abu Dhabi one week, Santiago the next and Moscow the third. That's because his employer,
TW Metals – a UPS customer based in Exton, Pa. – does business wherever the opportunity arises.
The funny thing is, neither Mraz, the company's vice president of sales and marketing, nor TW Metals planned it that way. For years the company, which distributes metals used in the aerospace and other industries, was content to serve a reliable roster of customers based almost exclusively in the United States. Then TW's customers began outsourcing manufacturing overseas to save money and increase the percentage of foreign parts – a crucial consideration in selling finished airplanes back to those countries, says Mraz.
By 2003, Mraz and TW Metals realized they had to follow the trail to those overseas parts manufacturers or risk losing their most important business. They took the plunge.
Going global not only has helped the company maintain existing business but also has opened new areas of profitability. Mraz gives a healthy share of the credit for this success to his "secret partner," a government office called the
United States Commercial Service that he says has been "absolutely fundamental" in gaining new business.
New world realities
The USCS is a resource available to any small or midsize American business trying to gain a foothold overseas. With offices in more than 80 countries, it serves as a sort of ambassador for U.S. companies. The USCS has more than 100 Export Assistance Centers around the United States to help companies prepare to export. UPS has partnered with the USCS to promote U.S. exports.
"More than 70 percent of the world's purchasing power and 95 percent of its population are beyond our borders," says Curt Cultice, a USCS spokesman in Washington. "If a U.S. business sells only domestically, it is reaching just a small share of potential customers."
Still, many businesses remain hesitant. Often people are too busy running day-to-day operations to think about new markets, or they simply fear venturing into places with unfamiliar languages, regulations or business customs.
That's where the USCS comes in.
Mraz learned about USCS when planning a trip to an aeronautics trade show in Santiago, Chile. On the advice of a friend, he phoned the USCS. "They were able to arrange meetings for us with the highest-level decision makers in the industry," Mraz recalls. USCS staffers met him at the airport, scheduled meetings and came along as translators. The service even helped him find accommodations for a fraction of the cost he'd been quoted.
"We might have waited months before the right people would see us," Mraz says. 'Here they were bringing presidents and managing directors and vice presidents of procurement right to us."
With this access to decision makers, Mraz was able to negotiate deals. "We went from zero to $10 million in sales [in Chile] in a very short period of time," he says.
Key connections
Of course, even the most dedicated helpers can't guarantee exporting success for you, but the USCS offers five tips to get you started:
Dedicate key people to developing an export strategy.
Ensure your product meets international standards.
Create a website that's attractive to international customers.
Identify and research potential markets for risks and rewards.
Seek advice from bankers, international legal firms and a global carrier like UPS.
Going global may sound daunting, but don't be put off, Mraz says. Once you make the commitment, you may never look back. After all, adds Cultice, "The real risk is staying at home."
This story was originally published under the headline "Putting the pieces together" in the winter 2009 print edition of Compass
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