MADISON - Many U.S. companies might have begun marketing their products to other countries as "accidental exporters," but those that succeed must have a well thought-out plan, participants at an international trade seminar were told Nov. 12.
The trade seminar, organized by the Madison International Trade Association, focused on developing and implementing an international growth strategy. Participants heard from company officials with experience in international trade as well as government officials who offer assistance to companies that market outside U.S. borders.
Jen Pino-Gallagher, director of the Wisconsin Department of Agriculture, Trade and Consumer Protection's Agricultural Market Development Bureau and MITA president, said MITA exists to help companies expand their international export opportunities. Wisconsin isn't high on the list of states when it comes to international exports, Pino-Gallagher said, but organizations such as MITA have a goal of improving those statistics.
Roger Bensinger, executive vice president of business development for Milwaukee-based Prolitec, said his company was one of those that were an accidental exporter just five years ago, but in 2013, about 64 percent of the firm's business was outside the U.S.
Prolitec specializes in air treatment and indoor air quality technologies.
Bensinger suggested that companies considering exporting their products should have good reasons to go into the international market and must do due diligence to identify the appropriate target countries.
International markets can help companies diversify their revenue streams and increase what might otherwise be stagnant sales, he said.
Some countries are more logical targets than others, Bensinger said, if, for example, the countries have a thriving middle class and free-trade agreements with the U.S. that lessen trade barriers.
Product labeling and clearing regulatory hoops are big hurdles for many companies, he said, and both take research and time.
"Think big when you enter the international market," Bensinger said. "Figure out your home runs and go after them. Singles can often take as much time as a home run, so know your end customers wants and needs and go after them."
Chris Gutman, managing director of Manitowoc-based Red Arrow International, said his company has sold smoked flavors to the processed meat industry for more than 50 years. The company sells its products in more than 100 countries.
Gutman said one of the keys to an export company's success is to get complete buy-in from employees.
"You can't have some of your employees asking questions about why they have to create special labels for (export) products, for example," he said. "You have to get everybody on board and have them believe in the process and why it's good for them to be involved.
"You must alleviate the 'we don't have to do that in the U.S.' mentality."
Gutman and Bensinger both said their companies sell their products through distributors who often know the regulations and situations in other countries better than they do.
"What are the import regulations in Honduras? Our distributor will know," Gutman said.
Red Arrow International is the daughter company of Red Arrow Products. Red Arrow Products is the world's largest manufacturer of purified smoke, grill flavors and browning agents, with 230 employees at its Manitowoc, Rhinelander and international locations.
Bob Rindo, vice president of sales for Hampel, a Germantown company that makes thermoformed plastics, including calf hutches, said his company has been selling into international markets since the 1990s.
"We're all over the world - in Europe, Canada, South America and Southern Asia," Rindo said. "We sell in more than 30 countries around the world."
About 15 percent of Hampel's sales are outside the U.S.
While there is intense competition in the marketplace, Rindo said customers "appreciate the value of our products and we're doing very well."