By Amy Arnett
Tim Warden has found a way to make his hometown the headquarters of one of the state’s most successful businesses in international operations. Engart Inc., a wet dust extraction company located in Beckley, was named the 2013 West Virginia Small Business Exporter of the Year by the U.S. Small Business Administration.
Originally, Warden was hired by the previous owner of the company, but shortly after, the owner decided to sell the company. Warden jumped on the opportunity to own the business and began negotiations to purchase the company. In 2004, ownership was transferred to Warden, and Engart Inc. started its journey to becoming the company that today has 23 employees working to provide service to countries across the globe.
The fugitive dust from the air in industrial facilities, like those found in mining, power utility and heavy process industries, can be hazardous to both employees and the conditions of the facilities, and Engart has made its mark by specializing in the removal of this dust through their machines that use water to capture, store and dispose of the dust. Engart is also unique in their industry because they design and assemble machines according to their clients’ needs. Rather than gathering the parts each time an order is placed, the Bluefield facility keeps a stock of parts used to build extraction machinery, which allows for a shorter processing period. From order to assembly to delivery, the wait time is as brief as possible, allowing Engart to rise head and shoulders above their competition in design, quality and consumer satisfaction.
“The safety aspects of our equipment cannot be emphasized enough,” says Warden. “When dealing with fugitive combustible dust, there is no safer, more efficient equipment in the world than an Engart dust extractor.”
Creating excellence in a specialized industry has allowed Engart to reach out to the global market with confidence that their product has a place beyond the borders of the state—and the nation. Engart made their first move by establishing a production facility in Bluefield as a counterpart to their Beckley headquarters. From there, they added engineering and project management staff located in South Carolina, North Carolina and New York.
Internationally, Engart has focused strongly on placing their products into the best markets. The company’s ideas for international expansion came early during the process of establishing their business. When the coal industry’s security came into question, Warden and his team took a look at what the company had to offer. They saw an opportunity and made the strategic decision to expand in 2009 when the company’s Web site began drawing international clients. A company from South Korea was the first to approach Engart, requesting a machine that could remove gas and dust during blasting operations. Almost immediately afterward, Engart was approached by the largest underground silver mine in Mexico. At the time, Engart did not possess the necessary parts for the machine the company wanted, but Warden’s team of engineers worked to develop and build a machine from scratch. Since the original purchase of one machine, the same company has returned to purchase three more.
“Our company is highly specialized,” says Warden. “To continue to grow, we had to expand either our geographical reach or the types of industrial markets in which we operate. We decided to do both.”
Today, Engart is working successfully on three continents, with additional expansion and development in South America on the horizon. Brazil, Colombia, Chile and Peru have proven to be strong markets because of their heavy mining and processing industry presence. International development is something Warden stresses as a highly valuable venture.
“About 90 percent of consumers are outside the U.S., and making a decision to get a piece of that pie strengthens the company financially,” says Warden. “We want a sustainable business that will be here for the next generation. Although we cannot take our eyes off of the U.S. market—as it is still predominantly our largest, most successful market—there is much more out there waiting to be uncovered.”
After understanding that their product needed to expand on an international scale, Warden set out to establish a successful means of working with clients who are located thousands of miles away. He explains that their first international relationship came with a learning curve, as all business ventures do, but once they established their plans, it became second nature.
Warden’s first recommendation for companies looking to handle international clients is to secure methods of payment. To ensure payment, Engart uses an Irrevocable Letter of Credit (ILOC). An ILOC is set up between banks and creates a financial agreement that guarantees payment to Engart. For these transactions, Engart uses Huntington Bank, which is large enough to have international capabilities but still provides customer service that has been invaluable to Warden and his team. There have been instances when an ILOC has not been an option, and Engart has used the Export-Import Bank of the United States to obtain credit insurance. While this option carries more risk, they have found that allowing more transaction flexibility has generated worthwhile positive customer relations.
The next step in the process is to find a broad-reaching freight forwarder, an agent that handles custom clearance, freight arrangements and necessary paperwork. Maintaining a close relationship with their freight forwarder, who can operate in virtually any country, has saved Engart on many occasions through professional advice. Different shipping methods are used in different regions around the world, and freight forwarders can prevent obstacles by managing all of these details.
Exporting comes with challenges as well, but Warden emphasizes that the rewards far outweigh the risk. Beyond methods of payment, Engart also faces the challenge of providing customer support across borders. In one instance, a machine sold to a Canadian client required service, which Engart provided firsthand by making trips to Canada to ensure the system design was up to the company’s standards. Although it presented an initial cost to them, Warden believes customer service should not be sacrificed for international consumers.
“We have a policy that doing business with us is not painful,” says Warden. “All of our service techs and field engineers have passports and are willing to go when needed.”
Breaking into the international market is what has taken Engart to an entirely new level. Opportunities and dollars multiply by the hundreds and thousands for companies that take advantage of exporting. West Virginia, as a relatively small business community in comparison to other states, provides excellent assistance to companies looking to export. Warden says their relationship with the West Virginia Economic Development Office for International Trade has been invaluable to the success of their global expansion, as the office has provided numerous international networking opportunities.
“I can’t say enough good things about doing business in West Virginia,” says Warden. “I doubt we would be here today if our business was located anywhere else.” He stresses that West Virginia’s position in the global marketplace should not be underestimated. West Virginia leads the nation in export growth, thanks primarily to the coal and fossil fuels industry. Many businesses, like Engart, are able to piggy back onto these industries, creating a shared wealth and business climate that fosters relationships and growth.
“I believe West Virginia is unique in that way,” says Warden. “It is a small business-savvy atmosphere with an attitude to help the little guy in such a personal way that makes you comfortable to leap into markets you would otherwise shy away from.” Additionally, Warden says using distributors and manufacturer sales agents helps bridge language barriers and provides local support to clients around the world.
The logistics of exporting for West Virginia companies are vastly simplified through the services and standards that are a part of our regional and national business climate. In addition to the West Virginia Economic Development Office for International Trade, the U.S. Commercial Service has provided assistance in the transition from national to global for Engart.
Along with his business skills, Warden manages to remain a people person. When he is in the office, he is known to make pretty good coffee and take out the trash—given that he remembers it’s Tuesday: trash day. Beyond his other responsibilities, he wants to spend his time with the company encouraging and lifting up others while keeping everyone focused on customer service, which is what keeps the company alive.
Warden emphasizes that, in business and industry, people make it happen, and a good staff is what has helped Engart evolve into an industry standard. “Originally, this company was set up to supply ventilation and dust control to underground coal mines. However, after a short while, it became evident that our dust extractor unit could be redesigned to handle fugitive dust in plant operations,” says Warden. “We were blessed with the right people to get where we are today. We have extremely bright engineers and hard-working and dedicated sales, service and administrative staff. These individuals have made Engart a part of their lives and given many years of hard work and dedication to see this company prosper.
“I am extremely proud of what our small core group has accomplished. Even though I may be the person in charge, I am merely a reflection of the people who surround me—a symbol of their excellence. Without the hard work and dedication of my Engart team, we would not be in business today. I can say that in the circles in which we operate, our small world is better off because this company exists. And we are better people for having been a part of it.”
