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U.S. Clean Energy and Energy Efficiency Trade Mission to Saudi Arabia

February 7, 2012

April 14–18, 2012
U.S. Clean Energy and Energy Efficiency Trade Mission to Saudi Arabia
Riyadh and Dhahran (Eastern Province), Saudi Arabia

In April, Assistant Secretary Nicole Lamb-Hale will lead a Clean Energy and Energy Efficiency Trade Mission to Saudi Arabia. The mission will include market briefings by industry experts, opportunities for U.S. firms to meet key Saudi Arabian government officials and decision-makers, hold one-on-one meetings with potential business partners, and enjoy networking events, with the goal of increasing U.S. exports in the clean energy and energy efficiency sectors.

SolarTAC test facility in Aurora, CO (Courtesy of DOE/NREL)

SolarTAC test facility in Aurora, CO (Courtesy of DOE/NREL)

The mission comes at a critical time for both Saudi Arabia and the U.S. clean energy and energy efficiency industry, and has the potential to create opportunities for U.S. exporters while helping Saudi Arabia to achieve its energy goals.

Saudi Arabia has ambitious plans to improve energy efficiency and reduce reliance on hydrocarbons for power generation.  These plans offer abundant opportunities for U.S. companies to export American technologies, products, and services. 

While Saudi Arabia possesses one-fifth of global oil reserves, it meets almost 60% of its domestic power needs from petroleum.  The eight to nine percent annual growth in domestic electricity demand – and thus domestic petroleum consumption –  cuts deeply into exports.  The Saudi Government heavily subsidizes domestically-used oil, which causes not only  reduced export income, but also has enormous opportunity costs as there is less feedstock for development of downstream petrochemical industries and the jobs that go with them. 

Saudi Arabia hopes to reduce by half the crude oil and natural gas it burns now to generate electricity, in part by developing solar power capacity, an area where it has clear climatological advantages. As part of its plan for reducing fossil fuel dependence, the Saudi Government aims to install 5 GW of solar power by 2020.

As Saudi Arabia expands its energy supply and integrates renewable energy, further investment will be required in grid modernization and smart grid technologies that enable utility management of variable energy sources. Firms participating in the trade mission will gain market insight, make industry contacts, solidify business strategies, and identify or advance specific projects, helping U.S. firms benefit from this growing market for their products as Saudi Arabia ramps up investment in the clean energy and energy efficiency sectors.

Both residential and industrial sectors contribute to increased electrical demand in Saudi Arabia.  Residential air conditioning consumes more than 50% of total power during Saudi Arabia’s long, hot summers.  Saudi Arabia plans to construct 1.65 million new homes over the next six years and will be looking closely at products, materials and technologies that reduce energy use and increase efficiency. 

Saudi Arabia also relies on desalination plants to produce 70% of its potable water, using as much as 1.5 million barrels per day of oil equivalent to do so; Saudi Arabia hopes to start up its first solar-powered desalination plant in 2013.

This mission will target a variety of sectors that could reduce the impact of residential and industrial electricity demand, including solar power generation components and systems; smart grid systems, software and services; green building design/engineering, materials and technologies; and energy efficiency systems and solutions.

The mission will begin in Riyadh and will include site visits and consultations in Dhahran (Eastern Province), including the King Abdullah City of Atomic and Renewable Energy, the Saudi Electricity Company and Saudi Aramco. The cost to participate in the trade mission ranges from $3,020 to $3,502 per company for one representative, depending on firm size. There is a $500 fee for an additional company participant. Expenses for travel, lodging, most meals and incidentals will be the responsibility of each mission participant.

Applications will be accepted on a rolling basis through March 1, 2012. Space is limited. For more information about the trade mission, visit the mission web site or contact Jen Derstine of Manufacturing and Services, tel.: (202) 482-3889; e-mail: jennifer.derstine@trade.gov, or James Fluker of the U.S. & Foreign Commercial Service, tel.: +966 (1) 488-3800; e-mail: james.fluker@trade.gov.

Useful resources:

ITA Saudi market research
Saudi Country Commercial Guide  
Archive recording of Saudi solar webinar

Posted in Commercial Service, Exporting, Manufacturing and Services, Trade Missions | Tagged , , | Leave a Comment »

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U.S. Exports: Helping Create an American Economy Built to Last

February 7, 2012

This post contains external links. Please review our external linking policy.

Francisco J. Sánchez is the Under Secretary of Commerce for International Trade.

Increasing U.S. exports is an essential part of shaping a healthier and stronger American economy.

This is a point that President Barack Obama made clear during his recent State of the Union Address, when he unveiled his “blueprint for an economy built to last.”  In the speech, the President outlined the four pillars that “an economy built to last” should be founded on:

Under Secretary Sánchez joins representatives from U.S. companies who have partnered with Commerce on its New Market Exporter Initiative

Under Secretary Sánchez joins representatives from U.S. companies who have partnered with Commerce on its New Market Exporter Initiative

  1. A new era for American energy, spurred by a commitment to homegrown and alternative energy sources; 
  2. Equipping young people and workers with the skills needed to thrive in the 21st century economy; 
  3. A renewal of the American values that demands fairness for all, and responsibility from all; and 
  4. Supporting the manufacturing sector to create jobs and make more American products.

This manufacturing pillar is especially important to us at ITA.  We know that this sector is critical for the middle class.  And, the middle class is the backbone of our economy.  That’s why we are committed to helping U.S. manufacturers succeed.

How?  By helping them sell more of their stuff in markets across the world.  Increasing U.S exports has long been one of the President’s main goals.  Two years ago, he launched the National Export Initiative, striving to double U.S. exports by the end of 2014. 

Many doubted that this could be done.  But, I’m proud to report that we are on pace to achieving this goal. 

This is good for jobs.  This is good for businesses.  And, this is good for the American economy.   

Reaching the goals of the NEI to date has been a team effort.  We’ve been committed and creative in the ways we are helping to boost U.S. exports.

As you’ll read in this issue of International Trade Update, we are promoting advanced manufacturing in the textile industry and expanding the New Market Exporter Initiative with the National Association of Manufacturers.  We are supporting the travel and tourism industry.  And, just this week, we signed a Memorandum of Intent with the City of Tampa, and its partners, to maximize the potential of its local port when it comes to exporting.

We’ve done a lot.  But, we are not satisfied.  Despite our successes, we remain just as focused on the future.

For example, later this month, I’ll be leading the first-ever ports and maritime technology industry trade mission to India.  This will give U.S. companies a unique chance to be a part of the huge infrastructure projects taking place in the country.  And, we have a number of exciting initiatives that will be unveiled throughout the year. 

Stay tuned.   

In the meantime, please reach out to ITA through export.gov or your local U.S. Export Assistance Center if you have, or know of, American businesses that would benefit from exporting.

Selling their products overseas will be good for jobs and local communities.  It will also go a long way in creating an American economy — built to last. 

Posted in Commercial Service, Competitiveness, Exporting, International Trade Administration, International Trade Update, Manufacturing, National Export Initiative, Trade Missions, Travel & Tourism | 1 Comment »

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SelectUSA Brings Investment and Jobs to the United States

January 25, 2012

Barry Johnson is the executive director of SelectUSA and Aaron Brickman is the deputy executive director of SelectUSA

Did you see President Obama’s call to action to invest in America and boost job creation? Well if you missed it check out the White House blog post. Also at the forum, Commerce Secretary John Bryson moderated a panel discussion highlighting foreign direct investment (FDI) as an important source of economic and job growth in the United States.Bar chart showing the impact of Foreign Direct Investment in the United States in 2009. Increase in employmenet by 5%, GDP of 5.1%, Capital Investment of 12%, imports 31%, exports 21%, and research and development 14%. Source: Bureau of Economic Analysis

Currently, the United States is the largest recipient of FDI in the world. In 2010, FDI into the U.S. economy increased to $228 billion from $153 billion in 2009.While the United States has enjoyed this leadership position for decades, the share of FDI to the United States is decreasing. In the 1980s the FDI in the United States accounted for nearly 45 percent of the all foreign direct investment. Today, the United States accounts for less than 15 percent of total FDI flows.

At the Department of Commerce’s International Trade Administration (ITA) we are working to promote foreign direct investment in the United States because it is significantly impacts U.S. exports and jobs. U.S. subsidiaries of foreign companies are responsible for about 21 percent of all U.S. exports and support more than 5.3 million U.S. jobs – that’s about 5 percent of all U.S. employment!

Since taking office, the President has emphasized the unequivocal policy of openness to both foreign and domestic companies that invest in America. SelectUSA, which is housed within ITA, was created by President Obama in 2011 through an Executive Order to promote business investment in the United States.

The United States provides an ideal landscape for companies to build and grow their business. As the President reminded us, “companies are choosing to invest in the one country with the most productive workers, best universities, and most creative and innovative entrepreneurs in the world: the United States of America.”

And there is more. SelectUSA promotes the benefits of investing in the United States, including a strong system of intellectual property rights protection; unparalleled global access through trade agreements representing access to nearly 610 million worldwide consumers; and nearly 36 percent of global research and development expenditures taking place in the United States.

SelectUSA works with firms, economic development organizations, and other stakeholders to provide a comprehensive single point of contact for current and prospective business investors by:

  • Acting as an information clearinghouse and responding to inquiries about the U.S. business climate
  • Serving as ombudsman to help investors encountering confusion, delays or obstacles in a federal regulatory process
  • Advocating on behalf of the U.S. government in a globally competitive business location decision
  • Offering after care to companies that have U.S. investments

Companies and organizations use these services to help make business investment decisions when exploring the U.S. economy.

One of the companies in attendance at the White House forum, Canada-based AGS Automotive Systems, is a recent SelectUSA success story. The Company announced plans to manufacture bumper systems at an expanded facility in Michigan with an investment of $20 million.

Through the Commercial Service Canada’s introduction, SelectUSA met with AGS Automotive during its outreach visit to Toronto in September, 2011. Since then, SelectUSA has worked with AGS Automotive as the company evaluated its location decision among various options across North America.

Financial assistance and incentives offered by the State of Michigan were also pivotal in AGS Automotive’s investment decision. With these plans, the company will create 100 direct new jobs and retain its 50 existing jobs in the U.S. automotive sector.

The President also announced a new partnership between the Departments of Commerce and State to promote investment in the United States in ten priority countries through ITA’s Foreign Commercial Service and supported by U.S. embassies. A White House release explained:

“[t]his pilot effort will dedicate resources from Commerce’s Foreign Commercial Service (FCS) to investment promotion in 10 pilot countries representing 30 percent of foreign direct investment in the United States, expanding to cover 25 countries in 2013 representing roughly 90 percent of FDI.  U.S. Ambassadors will lead these efforts, engaging officials from State and other in country officials to assist investment promotion through business outreach, hosting ‘investment missions’ with governors and mayors, and connecting foreign firms to SelectUSA services.”

The pilot countries will be: Brazil, Canada, China and Hong Kong, France, Germany, India, Mexico, Russia, South Korea, and Spain.

Maintaining America’s industry competitiveness is an ongoing endeavor; however, with programs like SelectUSA, it’s much easier for companies of all sizes and from all business segments to make a sound decision to locate operations here.

Posted in Commercial Service, Competitiveness, Investment, Manufacturing, Services | Tagged , | 2 Comments »

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Exporting at the Speed of Light

January 23, 2012
This post contains external links. Please review our external linking policy.

Doug Barry is an International Trade Specialist in the Trade Information Center, part of the U.S. and Foreign Commercial Service

Two years ago he was laid off from his job at the height of the global financial crisis.  Eighteen months ago he started his own company with one employee:  himself.  Today he has 9 employees and is shipping wireless routers he makes to customers in almost 80 countries.

How’d he do it?

William Haynes owns Sabai Technology based in Simpsonville, South Carolina.

William Haynes owns Sabai Technology based in Simpsonville, South Carolina.

William Haynes owns Sabai Technology based in Simpsonville, South Carolina.  His success is due to a good product, timing, execution and some luck.  He also had crucial help from his friends at FedEx and the U.S. Department of Commerce.

He started selling routers to customers in the U.S.  Then he discovered a company that provided VPN service and who had customers overseas that wanted access to the Internet from devices throughout their household.  The company, Strong VPN, asked Haynes to make routers for them.  The first sale was to China, and orders soon took off to where international sales now account for 80 percent of revenues.

Haynes is not the only one making wireless routers, but he says he manages to compete with much larger technology-makers because of niche marketing ability and excellent customer service. “What you’ve got to do is make sure that front to back, from the time they place an order to the time customers get it in their hands and even after for technical support, that it’s seamless. That it’s well-communicated; that they have a certainty that when they’ve given you their money, they’re going to get their product; that they’re able to track it through the process.  To me, that’s the most important thing for successful exporting.”

Shipping to the middle of nowhere

To generate satisfied customers Haynes turned to FedEx.  “One of my favorite shipping stories  is when we shipped to the Faroe Islands.  FedEx handled that and it was crazy.  It was there, I think, in three or four days.  And if you’re not familiar with where the Faroe Islands are, it’s halfway between Iceland and Scotland out in the middle of nowhere.”

In another example, Haynes recalls: “We had a customer who ordered at 2:34 in the afternoon on a Monday afternoon to Sao Paulo, Brazil.  Well, 10 a.m. on Wednesday morning – less than 48 hours later, they’re contacting us letting us know they’ve gotten the router, it’s installed, it’s up – ‘thank you so much, how wonderful this is.’  We couldn’t do that with anyone but FedEx.”

Business really took off early in 2011 due to an unusual chain of events.  Haynes got a few orders from people in Egypt who understood the wireless routers could be used to send and receive information that was otherwise blocked by government filters. Said Haynes: “During the Arab Spring the technology allowed people to go to CNN and get news and information.  It allowed them to send emails knowing that from the time it leaves their home to the time it hits the U.S. or the country they’re connected to, it’s totally encrypted.” 

To build Haynes’s sales more rapidly, a FedEx sales representative brought in the U.S. Commercial Service, a branch of the Commerce Department that helps U.S. companies find overseas buyers and plays a major role in the Obama administration’s National Export Initiative, which seeks to double U.S. exports by the end of 2014.  The typical U.S. manufacturing exporter sells to buyers in fewer than five overseas markets, so already Sabai Technology was atypical.  But Haynes knew that in addition to selling and sending one box at a time, he needed to develop distributors in key countries so that his sales volume increased at a more rapid rate.

The Commercial Service has Export Assistance Centers in more than 100 U.S. cities and market specialists in U.S. embassies in over 70 countries.  FedEx asked the Export Assistance Center in South Carolina to visit Haynes.  “It would have been years before I discovered these folks.  They came to visit me, to discuss the needs of Sabai Technology,” he said.

The visit prompted Haynes to use U.S. government export insurance and to advertise in a Commercial Service publication Commercial News USA, which goes to foreign buyers worldwide.  “Thanks to the magazine we have companies in countries like Zambia wanting to buy and distribute our product.”

Looks like Zambia will soon be Sabai Technology’s 81st export market, leaving only 45 more countries remaining to sell to by this self-effacing, self-described “babe in the woods” of exporting.  There’s little doubt that he has the determination and now the help to get there.

“I’m just a babe in this stuff, and to have someone hold my hand a bit and walk me through it – it’s going to really accelerate the growth of our international business.”

Posted in Commercial Service, Exporting, National Export Initiative, Small Business, Success Story | 2 Comments »

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2011 Export Success Highlights

January 13, 2012

The International Trade Administration helps thousands of companies every year and we’d like to highlight a few of our most recent success stories from this past year.

Sirchie of North Carolina wins $1.1 million contract with Brazilian government

Sirchie of Youngsville, North Carolina manufactures crime scene investigation kits and materials used by law enforcement officials worldwide. Sirchie contacted the U.S. Commercial Service office in Raleigh for assistance in selling law enforcement products to the government of Brazil.

Sirchie used a Gold Key Service, which would introduce them to prospective buyers in Brazil as well as give them the opportunity to meet with key industry officials and ministries, including local police and law enforcement. In advance of the Sirchie’s trip to Brazil, the trade specialists in the Commercial Service in Brazil also provided Sirchie with information on the government procurement process in Brazil and how Sirchie could tap into opportunities selling to the Brazilian government.

As a result of assistance from the Commercial Service, Sirchie won a Brazilian government tender and sold $1.1 million of export product to the Brazilian government.

Great Lakes Dredge & Dock Company of Illinois Wins $51 million project in Bahrain

This past November, Great Lakes Dredge & Dock Company, LLC (GDD, Oak Brook, IL) signed a contract with the Bahraini Ministry of Housing to provide dredging and land reclamation services for the East Hidd Housing Development project. GDD competed against companies from the Netherlands, Algeria, and China. The strong advocacy effort provided by the Commercial Service and the U.S. Embassy staff in Bahrain was key to the success of this advocacy campaign. The final project value was $57 million, with $51 million in U.S. export content, supporting 280 U.S. jobs.

Food Concessionaire, International Meal Company (IMC) of Massachusetts Overcomes Panamanian Trade Barrier

IMC, headquartered in San Juan, Puerto Rico, and Boston, Massachusetts, overcame a foreign trade barrier with the assistance of the Department of Commerce’s Trade Agreements Compliance Program, led by the Market Access and Compliance Unit that threatened to have its airport food‐court concession revoked.

IMC’s concessions in Panama are worth $6 million. After winning a bidding process and opening various food and beverage concessions at Panama’s Tocumen Airport, IMC’s multi‐million dollar investment was jeopardized by the Government of Panama’s failure to ratify its contract.

The International Trade Administration and the U.S. Embassy intervened on behalf of IMC with the Panamanian Government and Tocumen Airport Authority, urging the Panamanian Comptroller to review and ratify IMC’s contract for the food‐court concessions. Thanks to these efforts, the contract is now ratified, and IMC is able to continue its operations in Panama with contractual protection.

Garmin Marine Navigation GPS Units of Kansas Navigates Turkish Customs

Garmin of Olathe, Kansas, tapped into the resources of the International Trade Administration to ensure its $1.5 million worth of marine navigational GPS units cleared Turkish customs. Turkish customs claimed that the CE Mark Directive on Radio and Telecommunications Terminal Equipment (R&TTE) required that these products be tested and certified at a third-party lab recognized by the European Union (EU). However, the R&TTE Directive allows for the marine navigational GPS units imported by Garmin to be self‐certified.

ITA officials, working in close collaboration with the Commercial Service at the U.S. Embassy in Turkey, worked with Turkish government officials to explain that marine navigational GPS units can be self‐certified by an accredited independent lab, in compliance with the relevant EU standard. As a result, Turkish customs officials correctly assessed Garmin’s products and accepted its self‐certification.

Garmin reported in May that its most recent shipments to Turkey had gone through customs smoothly and the company does not anticipate any trouble getting these products into Turkey in the future.

These are but a few of the successful sales and logistical issues that the global staff of the International Trade Administration helped to realize for American businesses. To learn more about pursuing overseas markets or to get help resolving a market access issue, visit export.gov.

Posted in Commercial Service, Exporting, International Trade Administration, Market Access and Compliance | Tagged | 4 Comments »

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Participants in the Renewable Energy Trade Mission to Turkey Find Business Partnerships

January 9, 2012

Ryan Barnes is an International Trade Specialist in the Office of European Country Affairs within the Market Access and Compliance division of the International Trade Administration.

Renewable Energy and Energy Efficiency Trade Delegation to Turkey, December 5-9, 2011

Renewable Energy and Energy Efficiency Trade Delegation to Turkey, December 5-9, 2011

Just last month, I accompanied Michael Camuñez, Assistant Secretary for Market Access and Compliance as he led 16 U.S. Renewable Energy & Energy Efficiency companies on a Trade Mission to Turkey. The delegation included U.S. energy firms as well as officials from Trade Promotion Coordinating Committee (TPCC) agencies: Export-Import Bank, Overseas Private Investment Corporation, U.S. Department of Energy and U.S. Trade and Development Agency. The delegation visited Ankara, Izmir and Istanbul, where numerous opportunities exist for these firms.

The staff of the International Trade Administration recruited a variety of companies for the mission.  The group included energy giants such as General Electric, Johnson Controls, and AES as well as nine small and medium-sized enterprises on the leading edge of renewable energy technology.  Of the sixteen firms, whose products range from solar panels to cooling systems, eleven had never before done business in Turkey.  One firm, World Business Capital, was also there to provide financing.

The mission’s main objective was to introduce the participants to potential Turkish business partners.  U.S. firms met with numerous Turkish counterparts in one-on-one meetings to discuss possible joint venture opportunities.  More than 340 of these business to business matchmaking meetings took place during the five-day mission. 

The trade mission could not have come at a better time.  Bilateral trade between the U.S. and Turkey is set to break records in 2011, with projections of roughly $20 billion in total trade.  And the energy sector, in particular, is ripe for U.S. trade and investment.  Turkish energy demand is due to grow at a rate of seven to nine percent annually.  To help accommodate this growing demand, the Turkish government will invest roughly $130 billion by 2023, and has placed a great deal of emphasis on renewable energy.  Ankara has plans to achieve 30 percent renewable energy production by 2023, and has called for $40 billion in investment in this sector by 2020. Turkey also passed an updated renewable energy law in December 2010 to provide even further investment incentives.

The U.S. Government has worked to develop this burgeoning market.  In addition to the trade mission, there is a newly launched interagency project known as the “Near Zero Zone”.  This project, led by the U.S. Department of Energy, is helping industrial companies operating within the Izmir Ataturk Organized Industrial Zone (IAOSB) reduce their energy usage through a series of cost-effective efficiency upgrades.  One of key stops during the trade mission was to this Near Zero Zone site in Izmir.

The trade mission, along with the Near Zero Zone, helped with the formation of business partnerships and provided opportunities to match high quality U.S. supply with growing Turkish energy demand.  The potential for mutual gain in this arena is enormous.  Already, trade mission participants have reported a potential $40 million in business deals.   We hope this is just the beginning.

Posted in Commercial Service, Exporting, Green and Sustainable, Market Access and Compliance, Trade Missions | Tagged , , | 1 Comment »

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Taking Advantage of Opportunities in Colombia

December 29, 2011

Walter Bastian is the Deputy Assistant Secretary of Commerce for the Western Hemisphere in ITA’s Market Access and Compliance unit.

I recently participated in a forum focusing on how the new U.S.-Colombia Trade Promotion Agreement (Agreement), signed into law by President Obama in October, provides opportunities for expanded trade between our two countries.   Representatives from more than 100 U.S. and Colombian businesses attended the event in Bogotá organized by the Colombian American Chamber of Commerce. 

Colombia is the 3rd largest economy in Central and South America, and one of our most important strategic partners in the region. I am impressed by Colombia’s level of economic liberalization and diversification of exports, and its sustained investment in information technologies. Furthermore, the country has greatly improved its corporate governance standards, and the United States and Colombia have largely complementary economies.

U.S. companies should prepare to take full advantage of the U.S.-Colombia Trade Promotion Agreement. When implemented, the Agreement will eliminate barriers to billions of dollars of U.S. exports, and increase U.S. market access for goods and Colombia’s $166 billion services market. Nearly 75 percent of duties on industrial and agriculture goods from the United States will be terminated immediately, and almost all other duties phased out during the next 5-10 years.

The Agreement is expected to increase U.S. exports by at least $1 billion annually and U.S. Gross Domestic Product by more than $2.5 billion. Key industry sector opportunities include information technology products, agriculture and construction equipment, infrastructure and machinery, chemicals, remanufactured and medical equipment, electrical power generation and distribution equipment, and aircraft and parts. 

The Agreement also advances President Obama’s National Export Initiative which aims to double overall U.S. exports by the end of 2014, creating new opportunities for U.S. businesses, workers, farmers and ranchers.  

We want to make sure that we support U.S. companies’ competitive position in Colombia and facilitate two-way trade. Colombia is doing the right things to get their house in order—they have significantly improved their business climate and are aggressively working to make it even better.

With a population of 48 million consumers in an economy with a growing GDP, Colombia is an attractive market for the United States. The International Monetary Fund (IMF) is expected to peg its Colombian 2011 economic growth forecast to close to 5 percent. According to World Bank’s Doing Business Report, Colombia is the region’s leading reformer, ranking 37th among 183 economies—and remains among the world’s 10 most active reformers.  

For assistance in doing business in Colombia, U.S. businesses can contact their local U.S. Commercial (CS) Export Assistance Center at www.export.gov, or visit the Commercial Service at the U.S. Embassy in Bogotá. 

 

Posted in Commercial Service, Exporting, International Trade Administration, Market Access and Compliance, National Export Initiative | Tagged | 2 Comments »

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Opening the Doors to International Sales

December 7, 2011

Richard Brenner, chief executive officer of Amarr Garage Doors, a North Carolina–based manufacturer of garage door systems, tells how his company has devoted its resources over the past 20 years to developing an international mind set and thereby finding success in exporting.

Doug Barry is a senior international trade specialist in the Trade Information Center

Amarr Garage Doors, Inc., is a world leader in the design, manufacture, and distribution of door access systems for residential garages, warehouses, commercial buildings, and shopping malls.  Founded by brothers Abe, Morris, and Herb Brenner in 1951, the company recorded sales in excess of $200 million in 2010, and employs more than 1,000 people at 70 locations worldwide. The company has two U.S. manufacturing facilities, in Lawrence, Kansas, and Mocksville, North Carolina, and also has a research and development facility at its headquarters in Winston-Salem.

As a business client of the International Trade Administration’s U.S. and Foreign Commercial Service (USFCS), Amarr has benefited from export counseling, market research, and business matchmaking offered by the USFCS to greatly expand its export sales. Recognition of this came in May 2011, when then–Secretary of Commerce Gary Locke presented Amarr with a prestigious Presidential “E” Award for Exports. The award is the highest recognition any U.S. company may receive for making a significant contribution to the expansion of U.S. exports.

Richard Brenner, chief executive officer of Amarr Garage Doors (left) with Ran Ji of Shanghai Rich-Mark Doors, Ltd. (photo courtesy Amarr Garage Doors)

Richard Brenner, chief executive officer of Amarr Garage Doors (left) with Ran Ji of Shanghai Rich-Mark Doors, Ltd. (photo courtesy Amarr Garage Doors)

Recently, Doug Barry of the Department of Commerce’s Trade Information Center spoke with Richard Brenner, the chief executive officer of Amarr Garage Doors, about the challenges and rewards of selling internationally.

Barry: What challenges did your company face getting into the international marketplace?

Brenner: The first was learning that a garage door for the United States is not the same as a garage door internationally. We had to customize our product to international specifications. Then there was the challenge of obtaining international certifications, particularly CE certification for Europe. We also had a challenge with language—things get lost in translation.

Barry: In what respect?

Brenner: When you’re working internationally, if your customer doesn’t speak English everything takes three times longer. You speak; it’s translated. They speak; it’s translated. So, just having the stamina to pursue negotiations is a big challenge.

Barry: Making and selling garage doors seems pretty straightforward. They go up and they go down. Is there more to the story?

Brenner: Absolutely. For one thing, you have to be willing to deal with the cultural values of your clients, wherever they may be. Recently, for example, I and some colleagues were meeting with a customer in Norway who wanted to treat us to something very special to eat—a sheep’s head! And after having to eat it, he insisted on showing us how the dish was prepared. I think we can leave it at that.

Barry: That doesn’t sound very appetizing. But throughout this exporting process you’ve had help from the Department of Commerce. Can you tell us about that?

Brenner: Alan Richel of the Houston Export Assistance Center [of the USFCS] has been very instrumental in helping us overcome barriers in certain markets where we needed help. Not only through connections, but by educating us—that is, our international sales team—about things we needed to know and do.

Barry: How many international markets are you actually in now?

Brenner: More than 40.

Barry: Was there a big difference between going from your first international market to additional ones?

Brenner: No, just a little bit. Once you understand the first one, it really helps you to get to the next one.

Barry: How long did it take to go from one market to many?

Brenner: More than 20 years. It takes time to build your brand and to build awareness of the fact that you are a company that thinks internationally, not just a domestic producer taking the random opportunity to make an international sale. We had to dedicate resources and time to that effort.

Barry: So how did you become an international-thinking organization?

Brenner: It’s a mindset, but it also was something that I was interested in. I thought it was important for our business. There are only 300 million people in the United States. There are a lot more potential consumers internationally. So, it’s just a matter of focus.

Barry: What’s your biggest overseas market now?

Brenner: The biggest market for garage doors outside of the United States is the European Union. But some of the more interesting markets have been in the Middle East and in the Far East.

Barry: When you say “interesting,” is it because you faced challenges in terms of selling, or the uses to which the doors were put?

Brenner: More the use. For example, going to China and seeing Western-style subdivisions where they were trying to replicate various styles of homes that you see here in the West—I just found that to be very, very amusing.

For More Information

Is your company thinking of expanding overseas? The network of more than 100 U.S. Export Assistance Centers (USEACs) located around the country can help. To locate the one nearest you, visit Export.gov, the U.S. government’s export portal. Aside from links to USEACs, the Web site also includes online tutorials, listings of upcoming trade events, and much more. Visit www.export.gov or call the Trade Information Center at 1-800-USA-TRAD(E) (1-800-872-8723).

Barry: Has exporting changed your approach to business? Has it had an effect on you as a person who’s taken a company international?

Brenner: Yes, definitely. Being an exporter has made us a better company domestically. By understanding what’s done internationally, I think that we’ve become better listeners to the needs of our domestic customers. And our international dealers have taught us things about what they see in their market that we’ve translated back into our domestic market. So it’s definitely broadened our scope.

Barry: Can you give me an example of something that you imported back into the United States that helped you be more competitive in all markets?

Brenner: Yes. For example, when we were going through our CE testing [for the European market], we learned some things about the wind-load rating of our doors. Since we do a lot of wind-load testing here in the United States already, we were able to bring back the knowledge that we gained from that process to reduce some costs and create a better product for the U.S. market. In this respect, exporting has been valuable for us on many levels.

Barry: If you had to speak to U.S. business owners who are either exporting just a little or not at all, what advice would you give them?

Brenner: I would say three things. First, dedicate your mind to the fact that this is something you actually want to be involved in. Second, dedicate your company’s resources in terms of people and money to that end. Third, get help from the U.S. Department of Commerce.

Posted in Commercial Service, Exporting, International Trade Update | Tagged , | 3 Comments »

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U.S. Exporters Learn About Opportunities in Southeast Asia at Baltimore Event

December 7, 2011

U.S. companies looking to export to Southeast Asia were recently able to get a detailed look at opportunities in the region thanks to a two-day event in Baltimore, Maryland. It served as a prelude to a trade mission to the region that the Department of Commerce is leading in May 2012.

Paul Matino is an international trade specialist, and Christopher Goudey an intern, in the U.S. Export Assistance Center in Baltimore, Maryland.

A recent visit to Indonesia by President Barack Obama was a clear indication of the economic importance of Southeast Asia. The region, which includes 10 countries that are members of the Association of Southeast Asian Nations (ASEAN), is the United States’ fourth largest export market. Overall, it is the world’s ninth largest economy.

In order to help U.S. companies tap into this burgeoning market, the U.S. and Foreign Commercial Service (USFCS), a unit of the International Trade Administration, is organizing a trade mission to Southeast Asia on May 14–22, 2012. Called “Trade Winds—Asia,” the nine-day program will enable U.S. companies to meet with USFCS representatives from 14 different Asian markets, as well as conduct business-to-business meetings in Thailand, Vietnam, Singapore, Malaysia, and Indonesia.

The Trade Winds -- Asia highlights 14 different Asian markets. (Photo courtesy istock/PeskyMonkey)

The Trade Winds -- Asia highlights 14 different Asian markets. (Photo courtesy istock/PeskyMonkey)

Two-day Preview

To offer a preview to companies contemplating participating in Trade Winds—Asia, the USFCS recently welcomed more than 75 companies to the “Southeast Asia Now Business Conference” that was held November 9–10 in Baltimore, Maryland. The two-day event was hosted by the Baltimore Export Assistance Center and attracted participants from throughout the Mid-Atlantic region. It featured nearly 30 speakers representing government agencies, the private sector, and trade associations.

Among the presenters was the keynote speaker, Marc Mealy of the U.S.-ASEAN Business Council. Other featured speakers at the event included current and former USFCS commercial officers in Vietnam, Singapore, and Thailand.

Aside from presentations, conference attendees were able to participate in interactive Exportech workshops, which assessed export readiness and helped provide guidance to exporters with respect to decisions about market suitability. They were also able to take part in one-on-one consultations with export counselors to discuss immediate export opportunities and financing options.

Realities of Doing Business

Attendee Gary Hall of Immediate Response Technologies of Glenn Dale, Maryland, found that the event was an excellent opportunity to learn about the realities of doing business in Southeast Asia. “The information was extremely helpful in providing me [with] pertinent facts on many Southeast Asia countries where our company is looking to expand our business. The economic facts and cultural nuances presented will be extremely valuable to [us] as we move forward.”

Southeast Asia Now was organized with the support of a number of other organizations, including the Office of the U.S. Trade Representative, the U.S. Trade and Development Agency, the Export-Import Bank of the United States, the U.S. Patent and Trademark Office, the U.S. Small Business Administration, the Maryland-D.C. District Export Council, and the World Trade Center Institute.

For More Information

Trade Winds—Asia is a nine-day trade mission that will make stops in five countries in Southeast Asia. It will be led by a senior Department of Commerce official. Applications to participate will be accepted until March 30, 2012. Visit the Trade Winds forum for complete information regarding the application process, fees, and itinerary.

Posted in Commercial Service, Exporting, International Trade Update | Tagged , , , | 1 Comment »

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Featured Trade Event May 6–9, 2012

December 7, 2011

U.S. Aerospace Supplier Trade Mission to Canada

Montreal, Canada

Canadian flight directions display (photo courtesy istock/melissa mercier)

Canadian flight directions display (photo courtesy istock/melissa mercier)

As the world’s fifth largest aerospace market and its third largest civil aircraft market, Canada provides great opportunities for U.S. suppliers of aircraft parts, components and systems. Canada is a leading producer of regional aircraft, commercial helicopters, turbine engines, flight simulators, and a wide range of aircraft systems and equipment. Montreal is one of the world’s three largest aerospace hubs, along with Toulouse, France, and Seattle, Washington. It is also one of the few places in the world where an entire aircraft can be assembled within a 30-mile radius.

Participants in this trade mission will have a unique opportunity to meet prospective business partners in Canada through meetings with prescreened aerospace procurement and engineering representatives, networking events with Canadian aerospace industry and government representatives, and seminars and industry briefings conducted by industry experts on opportunities in Canada’s aerospace market. There will also be special site visits to key Canadian aerospace companies.

The cost to participate in the trade mission ranges from $2,200 to $2,800 per company for two representatives, depending on firm size. There is a $250 fee per additional company participant. The fee covers all in-country travel and one-on-one meetings, but mission participants will be responsible for travel to and from Montreal, lodging, most meals, and incidentals. Applications must be received by February 1, 2012. Companies are encouraged to apply early as space is limited. For more information about the trade mission, visit its Web site or contact Gina Rebelo Bento of the USFCS, tel.: (514) 908-3660; e-mail: gina.bento@trade.gov.

Posted in Commercial Service, Exporting, International Trade Update, Trade Missions | Tagged , , | 1 Comment »

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