By Debra Martin
Step off the plane in a foreign country and you might be delighted and slightly overwhelmed with how different the environment is—different sights, different smells, different currency and different customs. But look behind the scenes into the business world of that country, and it may reveal many things that are very familiar. The airplane that you just stepped off of in India, or 76 other countries, may be powered by a frequency converter or cooled by a pre-conditioned air unit made by FCX Systems of Morgantown. The in-ground swimming pools at the new resort development in Bermuda may have come from Viking Pools in Jane Lew. The ATM that you use in Brazil may be using electronic components made by Greenbrier Technical Services in Lewisburg. The carpet in your hotel in China may have been created using equipment designed and built by Appalachian Electronic Instruments in Ronceverte. If you were to venture even further from the tourist infrastructure and into heavy industries like power generation, steel manufacturing or mining, you would be sure to encounter many products manufactured by West Virginians.
West Virginia depends on world markets. In 2008, the U.S. Department of Commerce estimated that more than one-sixth (17 percent) of all manufacturing workers in West Virginia depend on exports for their jobs. A total of 806 companies exported goods from West Virginia locations in 2007. Of those, 596 (74 percent) were small- and medium-sized enterprises with fewer than 500 employees. Although Canada is West Virginia’s largest trading partner, companies are shipping their products to every distant corner of the earth. Since 2002, West Virginia companies have been recognized for shipping their products to more than 125 different countries.
While the economic recession has had much of our country’s industry in suspended animation since late 2008, West Virginia is on a record-setting pace for export growth in 2010, climbing 39.5 percent during the first half of the year. Figures from the U.S. Department of Commerce show West Virginia’s product exports reached $3 billion in the first half of 2010, up from $2.2 billion in 2009. According to Governor Joe Manchin, “This positive sign for the economy is also a testament to the quality and world-class appeal of West Virginia goods and services. The success we see today is a result of the long and successful collaboration among our state and federal agencies, businesses and work force.”
The West Virginia Development Office Export Promotion Program was created because we see the expansion of exports among small- and mid-size manufacturers as one of the areas of greatest potential for long-term sales and growth of the state’s economy. Statistically, only 1 percent of U.S. companies export, and of those that do, most export to only one country. We believe that smaller firms in West Virginia could be exporting more than they currently do, given a better understanding of their international market opportunities as well as their capability and readiness to export.
To help companies find their way into the global marketplace, the West Virginia Development Office has been offering services through its Export Promotion Program since 1985. Small- and medium-sized companies do not always have the staff or the budget to research the potential for their products in new markets, evaluate the vast business networks in that foreign market for reputable business partners and then travel to a foreign country for business appointments that may or may not be productive. To support a company’s efforts, state and federal government agencies offer a variety of services that make the export process easier and more cost efficient.
In cooperation with the U.S. Commercial Service and the West Virginia Export Council, West Virginia’s export promotion program presents a united front to businesses while offering programs that are unique to each organization. This federal/state partnership provides the following services:
• Free consultation to determine a company’s export readiness;
• Free assistance in identifying foreign markets for an exporter’s product or service;
• Inexpensive trade missions to dynamic markets;
• Subsidized costs for exhibiting in international trade shows;
• Representing products through multi-state catalog shows in foreign markets and
• Logistics support for companies participating in international trade shows and trade missions.
At the core of this partnership is West Virginia’s Gold Key Trade Mission program, through which West Virginia companies receive a comprehensive basket of services from the state and federal partners, allowing them to markedly reduce the time, effort and cost of generating sales in a new market. During these missions, the West Virginia Development Office provides funding and logistics planning, while the U.S. Commercial Service provides staff expertise and market research both prior to departure and in the destination country for events such as market briefings, business matchmaking meetings and networking receptions. The ease of planning provided by the State of West Virginia and quality of appointments provided by the U.S. Commercial Service industry specialists make these events appealing to both new and experienced exporters.
We recognize that the decision to become involved in exporting is not one to take lightly. Exporting will involve a considerable investment of financial, managerial and production resources. Being well-prepared is often the difference between success and failure. Successful companies that have used our services report that this program has helped them reduce, by six to nine months, the time that it takes a company to realize sales in a new market.
In business since 1933, Wheeling Truck Center has successfully positioned itself for another century of growth through efforts to expand its business globally. Chad Remp, the fourth generation of the family to sell new and used heavy duty trucks, has spearheaded the company’s strategy to attract international buyers by using its e-commerce site and Web site optimization tools. By registering its Web site in several key countries, customizing it with local content and setting up search words in foreign search engines, the company has made itself visible to foreign buyers on the Internet and has made sales to 32 new countries since February of this year. Key to this success has been the company’s quick response to these new customers, increasing its international sales volume each month with repeat sales.
Some of West Virginia’s most successful exporters produce items never seen by the average consumer but which are essential to industrial production. Metsch Refractories is a perfect example. Metsch has flourished by targeting a high quality niche of the overall investment casting foundry market. This niche typically produces critical use castings such as turbine engine blades and medical implants. Their international business has grown over the last decade from under 5 percent to nearly 60 percent today, achieving net export sales status. Taking great pride in the quality of their product, Metsch employees often sign the ocean container before sending it to customers overseas.
In the global marketplace, it certainly helps to know your customer, and if you have a unique product in a niche market, then success is practically guaranteed. Colleen Hurley of The Gentleman’s Quarter began marketing handmade men’s shaving soaps by networking with an online wet-shave user group. Offering free samples in exchange for feedback from members, the company now supplies loyal customers in more than 20 countries, from Ireland to Mongolia.
