Featured Success Story:
How Humane Manufacturing of Baraboo became an export expert!
Donna Wilkinson, Vice President and Director of National and International Sales for Humane Manufacturing was excited to learn about the recently announced strategic partnership between the Wisconsin Manufacturing Extension Partnership (WMEP) and the International Division of the Wisconsin Department of Commerce. Humane Manufacturing has relied on WMEP for assistance in implementing a range of manufacturing improvements, and Wilkinson knows first-hand how much the Department of Commerce can help a small company expand into global markets.
Humane Manufacturing has leveraged the resources of Commerce’s International Division to develop and grow its global sales over the past few years:
- Prior to 2006, Humane’s average yearly international sales ranged from $75,000 to $150,000 per year
- Sales for 2007 more than doubled to approximately $400,000
- Sales for 2008, were over $700,000 despite the recession
- Sales for the first 8 months of 2009 are already at $500,000
- Over the last 3 years, Humane has sold product in 31 countries
- Since 2006, 23 international dealers have been established
It all started in 2005 with an e-mail from a potential customer in China asking for a quote for a large order of rubber mats, a popular Humane product made from recycled rubber materials. Donna Wilkinson, then Director of Sales & Marketing, was fully committed to Humane’s policy of responding to every customer contact and was at a loss on how to respond – the inquiry from China was a first.
Fortunately, she’d heard about Commerce’s International Division, and gave them a call. The timing was perfect – a trade mission to China was leaving in just 14 days. Beng Yeap, Export Development Manager, immediately began setting up potential customer and dealer appointments for Donna, including an appointment with the customer that had inquired about the mats. Prior to the trip, Beng provided a wealth of information about all areas related to exporting goods to China, including local customs associated with business meetings.
“As it turned out, within a month of receiving the first inquiry from China, Humane Manufacturing had won the business from the company that had requested the quote,” said Donna Wilkinson. “This was just the first step – soon after, I made a second trip to China to meet with other potential customers and dealers. Again, the Department of Commerce’s International Division was instrumental in the success of the trip by providing translators, making introductions to new prospective dealers, providing transportation to meetings and even making reservations at hotels!”
As Humane Manufacturing soon discovered, the International Division’s services and support are not limited by borders – it leverages its staff here in Wisconsin with international offices in Brazil, Canada, China and Mexico – to help companies navigate the complexities of international business. “Besides all of the help I directly received from the staff here in Wisconsin, they also put me in contact with the Department of Agriculture (DATCAP), and the Council of Great Lakes Governors in Shanghai, the Babcock Center at University of Wisconsin, and the Food Export Association of the Midwest USA. These are just some of the resources that are available to companies that want to do business internationally.” Wilkinson said.
Because of the initial success with China, Humane Manufacturing established an international sales division. As the new Vice President of National and International Sales, Donna Wilkinson continued to rely on the Commerce’s International Division for support and contacts. In addition, she took advantage of the Trade Show Grant Program available to companies with annual sales of less than $25 million. Companies can qualify for up to $5,000 to reimburse the cost of specific overseas trade show expenses in new markets. Humane used this Grant Program to recover $3,500 in expenses from a trip to Costa Rica and Panama. The grant helped pay for the translation of literature to Spanish, shipping of samples and promotional materials, and the translation of business cards.
Other services provided by the Department of Commerce’s International Division include:
¨ International Market Analysis – based on your product profile
¨ Agent /Distributor Search
¨ Client/End User Search
¨ Buyer’s Missions – bringing foreign buyers to the US to meet with your company
¨ Trade Missions – Taking you to meet with foreign buyers and government officials
¨ Export Documentation and Certificates
¨ Identification of Lawyers, Translators and other Service Providers
¨ Conducting or Obtaining Credit Checks from appropriate sources
¨ Customs, Labeling and Regulatory Certification Assistance
¨ Government Liaison and Business Legal Orientation
¨ Global Partnering Services (GPS) Program – providing educational opportunities on exporting for local businesses
Donna Wilkinson encourages companies to explore the export market – now more important than ever due to emerging markets in Latin America, Asia, the Mideast and Africa. She relies on the International Team at the Department of Commerce for their support, but says preparation, perseverance and patience are critical to success in the international market. Specifically, she recommends:
¨ Follow through with all leads.
¨ Research the culture of the country you are working with – one innocent act could cause you to loose face with your new dealer.
¨ Relationship-building is essential – when relationships are built, then the orders will come.
¨ Be patient – be prepared to spend time working with new dealers before the first order is placed.
¨ Use every resource available through our state agencies – they want to help Wisconsin’s small and midsize manufacturers and have numerous resources to assist them.
Recent research and the present economic reality has highlighted the need for manufacturers to look to international markets to expand and increase revenue as traditional markets mature. WMEP’s partnership with the Department of Commerce is focused on helping midsize manufacturers explore, evaluate and enter international markets. WMEP is ready to assist you in developing new market opportunities.
Contact us for a free consultation about how to grow your company’s business.