Founder and CEO of Ambient Technologies Carlos Lemos was in Washington, D.C. recently to receive the Presidential “E” Award for excellence in exporting.  Lemos earned the award for taking his 55-employee company global with help from the Export Assistance Center in Miami and other programs of the Department of Commerce.  Senior Trade Specialist Doug Barry of the Trade Information Center talked to Lemos after the White House Ceremony.

Barry:  Can you tell us a little bit about the history of your company–which I see means environment in Spanish–when it started and what you provide?

Lemos:  We started our business in 1993.  I worked for a very large consulting firm for 22 years.  And then I decided to take my Brazilian heritage and live the American dream, which is running your own business.  So I started my own company, and I do geology, geophysics, drilling services.  We support companies that are looking to find information that’s below the ground, whether it’s groundwater-related, construction or engineering including mining. 

Barry:  Can you tell us about the main challenge that you faced to enter the international marketplace?

CEO of Ambient Technologies Carlos Lemos (left) helping to drill a new Panama canal.

Lemos:  Well, the challenges are really enormous when you’re thinking as a small business.  My first attempt to export was going to my native country.  I speak Portuguese and was born in Brazil. I felt comfortable there.  But Brazil was so big and it’s so challenging and it’s so competitive that it didn’t work out that well.  It was great to reunite with family but it wasn’t very good for business.  So I decided to pursue opportunities in countries that weren’t quite so large and where people are comfortable working with smaller companies.  So we started looking at countries in Central America.  I went to these countries and was successful there because of trade missions organized by the U.S. Department of Commerce.

Barry:  Was your domestic business tanking in 2008?

Lemos:  Truly speaking, in 2008, when everything kind of collapsed, I looked at all my rigs parked and I said, what am I going to do with this?  It became a matter of necessity as much as just a whim.  And then by that time I had gone overseas to look at the opportunities, saw Panama as an opportunity and I saw other countries at that time that were looking at doing some other projects.  And I said, “We have to look at an international way to survive.”  And so we took the leap of faith and went over there and took our equipment.  And then when the new canal project started, we had the equipment there and many people didn’t. We were the first American company to work with the consortium that’s building the canal.

Barry:  And how did that happen?  What kind of introductions were made to enable you to compete for that work?

Lemos:  What we did is through the Department of Commerce.  I was able to meet, number one, very important, was the canal authority – the ACP.  We also received introductions to the local engineering community. They said, “We welcome you because we’re going to have more work than we can handle.  So yeah, come on down and work with us.”  And they are very pro-American in Panama.  And they were very glad for us to have gone there.

Barry:  What part of your annual revenue comes from your international activities?

Lemos:  Right now we are about 25 percent, and it’s growing.  We’re being asked to go to Colombia, and that could further expand our revenues.  So I’m looking for the international business to grow.  And I wouldn’t be surprised if in the next few years, it grows to 50 percent. Another benefit is that bigger U.S. companies are asking us to do international work for them. We’re willing to deal with the headaches of dealing with customs. We’re willing to deal with the inconveniences of the locals that quite frequently are not that bad.  But that’s okay; the big companies can think that.  It gives me more business.  So we take advantage of that.  We do things that nobody wants to do.

Barry:  What sort of challenges do you face in scaling up to be able to serve this growing market?

Lemos:  Well, being small is not easy.  It’s difficult to get financing for a drill rig to take it overseas.  If you go through a conventional bank, they don’t like to see their assets outside the country.   It doesn’t make any difference that I’ve just won a $2 million contract. 

With this new business we’re hoping to qualify for government loan guarantees that can help us do that sort of thing.  Another challenge is finding bilingual technical people:  people that have a degree in science, engineering, that are also bilingual and willing to go overseas for periods of time. 

Barry:  What are the other benefits of selling international besides staying in business and thriving in business?  What are the other gains from doing business outside your own country and culture?

Lemos: Well, it is the human factor of it all.  It’s the reward that you have by interacting with other cultures.  It’s the reward that you get to see that your employees are seeing beyond what’s right here in front of their eyes, that they actually see now the world in a more global view than just right here. 

Barry:  Is Ambient a better company because of its exporting?

Lemos:  By far it’s a better company.

Barry:  Why?

Lemos:  I believe that the employees are proud that we are a global business than when we were just a local business.  There’s something about it that makes them more enthusiastic.  And therefore, you know, the employees are the company.  You have to find the right people who are interested in other cultures. I may hire a biologist to do a job that involves geology. Because of their attitude and their ability to deal with other cultures and deal with other people, they’re by far a better employee.  I love to see when the guys mature into a role of mini-ambassadors. 

Barry:  I think I’m ready to work for you immediately. Seriously, what would be your advice to U.S. companies that aren’t exporting now or only dabbling in it? 

Lemos:  I really believe that one of the things they should do is really get involved with the local Export Assistance Centers of the U.S. Department of Commerce because that’s what was successful for me. Also be prepared that there is a cost in getting started that is not going to be immediate gratification.  Trying to go in put a little money and trying to get big rewards very quickly doesn’t work. 

May is World Trade Month and traditionally the time that the Commerce Department chooses to recognize U.S. companies with The President’s “E” and “E Star” Awards.  This year marks the 50th anniversary of the program which was created in 1961 by President Kennedy to recognize those people and organizations who contribute significantly to United States exports. Could this year be the turning point for you to develop an export strategy?

The 2012 Ohio “E” and “E Star” Award winners (left to right) Frank Reynolds of International Projects; Jim Huttner of Bionix; Ron Swinko of Jet, Inc.; Mike Ivany of Flow Polymer; Milton Knight of New Waste Concepts

Maybe you are thinking, “What can I do to be invited to the White House for next year’s awards ceremony?”  Well to begin you can watch for an announcement from the Commercial Service office in your state about the release of the application. Check out the guidelines below to see how these top exporters were able to make great strides in capturing customers from around the globe. Follow in their footsteps and you may just be the next top exporter from your State.

1. Measure Your Export Growth
First and foremost, the White House looks for measurable statistics to show growth in exports. This means that applicants must provide actual data (i.e. not projected) demonstrating a sustained increase in total U.S. export sales in order to qualify for this prestigious award.  All of the companies who won this year’s “E” Awards were able to show that their exports grew overall for the period under review.  Despite the great global recession, or perhaps because of it, two Ohio companies were even able to achieve triple-digit growth. 

Jet, Inc. from Cleveland, Ohio manufactures residential and commercial wastewater treatment plants and related products. Now active in 25 countries, Commerce Secretary Bryson recognized Jet, Inc. this year for their focus and commitment to expand internationally – specifically to counteract declining domestic sales. As a result, this company has reaped the rewards of their engagement by reporting an outstanding increase of 111% in exports in the face of a flat domestic market.

Another Cleveland company and 2012 President’s “E” Award winner, Flow Polymers, saw exports nearly double as the company expanded into 28 countries from 2008 to 2011. This manufacturer of additives for use in the tire industry reported that international sales now contribute fully 50% to the company’s bottom line.  They must be doing something right for their exports to have nearly doubled since 2008. 

2. Showcase Innovation
In addition to expanding exports, it helps if your company can demonstrate innovation. Whether the innovative characteristic is the product itself or the particular path your company has carved to go to market, if you can present a compelling case about how your company overcame some of the many challenges unique to international business – you’re halfway there.
Luckily, innovation is a characteristic that U.S. exporters have in spades. But did you know that it can also serve as a secret weapon to catapult your company to new heights in export sales?  Read on to find out how some Ohio exporters rose to the top of their game through innovation.

Secretary Bryson recognized New Waste Concepts, Inc. of Perrysburg, Ohio for their innovative approach to new global markets.  Early on, company managers found themselves in a difficult spot when their U.S. customers who took them overseas in the first place, withdrew from the market entirely.  But instead of following suit, this manufacturer of patented spray applications for landfills was willing to completely change their business model and invest as partners in their overseas business development. 

The company also chose to build a significant web presence focusing on key product markets. They even have a full Chinese version of website allowing customers to check on their orders.

A second innovative strategy the company used was to position its employees as industry experts by speaking at trade shows and publishing white papers.  Jet, Inc. also used education and training to differentiate themselves in the marketplace and to gain leverage and influence in their sector. These two companies have shown that they were able to raise the profile of their company overseas and win the business ahead of the competition by changing their approach to market.

3. Sustain the Export Business
Once you’ve landed the contract or gained access into your overseas market of choice, the next question to ask is whether your success is sustainable.  If you can show how your company has learned and applied the lessons and gained repeat business – you’re almost there.

Bionix Development Corporation (BDC), a Toledo, Ohio company, was cited by the Commerce Department as an exemplary exporter for several reasons.  With clients in 47 countries and 6 continents, the company’s unique pricing and product placement strategy has netted them steady, consistent double-digit sales growth year after year.  This, and the fact that Bionix spends considerable face time with their international customers, allows the company to stay one step ahead of the competition on a global scale. 

4. Broaden Impact on Trade

Finally, if your exporting activities have had a broad impact on global trade or influenced other U.S. companies, you may have all of the ingredients necessary to be a President’s “E” Award Winner.  If you’ve forged new markets or created a replicable model that others can use, we’d like to hear about it!

This year, the Commerce Department recognized International Projects, Inc. with an “E” Star Award for their long-standing work in developing Incoterms® with the International Chamber of Commerce, and for sharing the fruits of their labor with thousands of U.S. exporters. The “E Star” was authorized in 1969 to recognize “E” Award winners for continued efforts in export expansion. As the lone American on the board, Frank Reynolds, President of International Projects, Inc., spoke up for U.S. interests so that Incoterms® 2010 would better reflect our unique North American business practices. 

So whether you are just getting started in exports or have already managed to gain a foothold in international markets, we’d love to hear from you.  Remember, we’ll be cheering for you as you walk onto the podium to accept your future President’s “E” Award.

With World Trade Week now upon us, the momentum from this past week has kept a clear spotlight on exports. We started with the re-authorization of Ex-Im Bank last Tuesday, which included an increase in the limit on total financing the bank can guarantee borrowers, from $100 billion to $140 billion. This is great news, since the bank’s loans support 200,000 jobs at big and small companies nationwide. That same day, the U.S.-Colombia Trade Promotion Agreement went into force, which means that 80 percent of U.S. exports of consumer and industrial products to Colombia are now duty-free. Additionally, more than half of U.S. exports of agricultural commodities to Colombia became duty-free. This agreement also provides significant access to Colombia’s $180 billion services market – check the FTA Tariff toolto see the tariff lines on your goods and services. 

Michael Masserman (center) with Senior International Trade Specialist Mathew Woodlee, Vice President of Product Development for Datacard Michael Baxter, and Senior Advisor to the President & CEO for Government Relations at Datacard Leonard Levine.

Last Thursday, 41 companies and organizations joined Commerce Secretary John Bryson at the White House for the presentation of the “E” Awards, honoring those that have made a significant contribution to increasing American exports this past year. The “E” Award recipients were from all across the country, with 35 of them being small or medium businesses and 20 being manufacturers. They are the critical players in helping us achieve record successes in exports, and are the ones contributing to the President’s National Export Initiative (NEI) goal of doubling U.S. exports by the end of 2014 to support American jobs.

We know that with exports, the action lies outside of Washington, D.C.  That’s why we’ve partnered with the Brookings Institute to localize the NEI through the Metro Export Initiative, piloted in Los Angeles, Syracuse, Portland and Minneapolis. Key businesses from Syracuse came to Commerce last week to discuss the implementation of their Metro Export Plan, and I was in Minneapolis to meet with their core team along with the District Export Council.

I also had the chance to visit Datacard, which manufactures high-tech machines that print secure government ID cards, credit cards, microchip-laden smart cards and passports. Through the help of our U.S. Export Assistance Center and our Advocacy Center, Datacard’s sales hit a record $450 million in 2011, with 70 percent coming from outside of the U.S. That is the model for export success.

As the President says in his World Trade Week proclamation, “As we work to expand economic opportunity here at home, we are reminded how three proud words, ‘Made in America,’ will ensure our next generation inherits an economy built to last.”

The U.S. film industry has been making inroads in Asia, and in 2012, with the ground breaking U.S.-China Film Agreement, took a quantum leap forward. China promises to increase the 20-film quota by 65 percent, and to make the process of bringing American-made movies to the Chinese market more transparent. This is great news for the independent sector, which has a competitive advantage in 3-D and digital formats covered under the new quota. 

U.S. Consulate and Hong Kong Trade Development Officials Welcome U.S. Exhibitors to HK Filmart (Photo CS Hong Kong)

Major U.S. film studios and independents alike are eager to expand market access to China, beyond co-productions that limit ownership and earnings. On the tail of this announcement, the Hong Kong Filmart, a major film and television trade event, took place from March 19-22. 

Hong Kong has been referred to as the “Pacific Bridge” to the Chinese market, underscored by the annual Filmart, which in 2012 attracted more than 5,800 buyers and nearly 650 exhibitors from 33 countries.  The International Trade Administration (ITA) has championed the U.S. presence at Filmart for a decade, and in 2011 launched the first American Pavilion.

This unique collaboration includes the Independent Film & Television Alliance (IFTA) and the International Trade Administration through Market Development Cooperator Program (MDCP) funding, as well as the Pacific Bridge Initiative (PBI), an arrangement initiated by the Commercial Service in Hong Kong and the Hong Kong Trade Development Council (HKTDC).

Building on last year’s successful introduction of the American Pavilion, with IFTA as host, ITA staff from Hong Kong, Washington, Los Angeles, and 10 regional economies in Asia rallied behind the largest U.S. showing yet at Filmart. The regional ITA specialists played a significant role and recruited 200 potential buyers, representing Singapore, Thailand, China, Taiwan, Indonesia, India, Vietnam and other countries in the region. IFTA brought a mix of 40 independent production and distribution companies, including film and television agents to exhibit at the American Pavilion. Commercial Service Hong Kong and IFTA facilitated business meetings between the buyers and the American exhibitors.

As a result of this concerted effort, more than 200 deals worth nearly $9 million were completed, and the deals are still rolling in. Total U.S. exhibitor numbers were up by 40 percent from the previous year, attesting to the success of the Pavilion and the combined efforts across ITA’s foreign and domestic posts.

Commercial Service Hong Kong was instrumental in the overall success of the Pavilion, and with regional and U.S.-based staff, provided market research, export counseling, and the collection of export successes from each Pavilion exhibitor, in a truly collaborative effort. Consul General Stephen Young, together with the show organizer HKTDC and the PBI, hosted a networking reception exclusively for the U.S. exhibitors. 

MDCP partnerships support projects that enhance the global competitiveness of U.S. industries. They also recognize the ability of trade associations and non-profits to support small and medium-sized businesses to compete globally. MDCP partners pledge to fund a minimum of two-thirds of the project cost and to sustain the project after the MDCP period ends. On average, between 1997 and 2011, every dollar invested in MDCP projects generated $211 in exports.

Thanks to Mexican healthcare reforms, I arose groggily at 5:30 AM and stumbled towards my in-room coffee machine. My Commercial Service colleagues and I organized a Healthcare Policy and Trade Mission of 17 companies to Mexico May 13-15, and the bus was embarking on our medical odyssey in 30 minutes!

Our delegates’ U.S. firms made very interesting products. One made speech recognition software that solved the time-consuming and dangerous global phenomenon of bad handwriting (Give a doctor a pen, and he or she will write poorly in any language.) Others made knee orthopedic devices, ultrasound, infectious disease diagnostics, and air flow aps for clean rooms. One company even sold human tissue samples. Ew.

Off we trundled to begin the Mission at the National Institute of Respiratory Diseases (hey, the traffic isn’t that bad!) to understand Mexico’s priorities for healthcare services and equipment. Given Mexico City’s notorious air quality, I realized that the Institute must be extremely busy, especially with Mt. Popocatepetl currently spewing ash nearby.

Under Secretary Francisco Sanchez with staff of U.S. Commercial Service Mexico City (Photo Eduardo Sanchez)

The Mexican Government is expanding health care coverage to all citizens, and with 4 percent economic growth expected for 2012, this is an excellent market for U.S. medical sector companies. Under Secretary Francisco Sánchez led our group to the Mexican Ministry of Health where we learned about Mexico’s priority for integrating and expanding health information management and telemedicine to expand healthcare into far-flung regions. Mexico’s Director General for Planning and Development closed his presentation saying, “we want to adopt the good practices of the United States, and avoid all your mistakes,” to which I did not know whether to raise an eyebrow or cluck “hear, hear!”

There is a discernible look in the eye and tone in the voice of all the players we met in Mexico’s healthcare universe. It’s… pride. Mixed with determination. This was indeed the case for all the hospital administrators who led us on tours of oncology wings, cardiac centers, and emergency rooms. Deeper we went into the duodenum of one hospital facility, like an encapsulated endoscopy. Then, we turned a corner and one delegate let out a short gasp. There it lay: a Varian Cyber Knife.  This hospital’s street cred was now firmly established.

The next day, we had breakfast with U.S. Ambassador Wayne and the head of COFEPRIS, Mexico’s FDA. Over the past year, license application times and bureaucratic steps have dramatically shrunk. Predictability and transparency in the drug and device approval process have dramatically increased. Mexico is striving to establish one of the world’s most modern regulatory regimes. From an afternoon’s worth of in-depth healthcare presentations delivered by numerous luminaries in Mexico’s healthcare sector, one readily grasped the country’s commitment to provide the best possible healthcare to all patients, while employing sound management and technology to bend the cost curve and serve rural areas.

After such an exhaustive introduction to Mexico’s healthcare market, we rose a glass of tequila at the Ambassador’s residence to our delegates and our hosts, and planned our next steps in expanding into this exciting market.

This week we’ve launched World Trade Week with the President’s Proclamation and we are hard at work highlighting the opportunities, successes, and innovation surrounding trade and exporting.

This map is patterned on the 1940 National Foreign Trade Week (May 18-24) updated to reflect 2011 trade figures for exports of merchandise.

In the past 50 years, U.S. exports have expanded 80-fold from $26 billion in 1961 to a record $2.1 trillion last year. It is our mission here at the International Trade Administration to continue that trend by working to expand opportunities for businesses of all shapes and sizes, helping them connect with more international buyers, and opening new markets for the great products and services we innovate and manufacture here at home.

Just this year, the trade agreements with South Korea and Colombia have been implemented and U.S. companies are now reaping the benefits and enjoying potential growth in exports to those countries.

We recognized 41 U.S. companies and organizations last week with the “E” and “E-Star” Award and these are just a few of the hundreds of success stories we see each year.

Day in and day out, trade specialists, international economists, and commercial service officers around the globe are working to ensure that U.S. businesses have the tools they need to be successful as provided:

• Through trade events and advocacy;
• Through our world-class foreign and domestic commercial service officers in over 100 U.S. cities and more than 70 countries.
• And through partnerships with organizations and entities such as the National Association of Manufacturers, UPS, the U.S. Postal Service, FedEx and DHL Express.

Your success is our success and we have many ways for you to keep up to date on the most important changes in rules and regulations impacting your business, find out about trade event opportunities and provide feedback on how we’re doing. Our monthly newsletter International Trade Update is issued on the first Tuesday of every month and will keep you on track and in the know. You can also find us on Facebook and twitter.

Yarn and fabric trade between the United States and Colombia has grown by more than 30 percent since 2002. And with the recent implementation of the U.S.-Colombia Trade Promotion Agreement, this figure is destined to grow in the coming years.

In 2008, we had the opportunity to visit Medellín, Colombia to participate in the Colombiatex trade show. We visited eight manufacturing facilities and were impressed with the diversity, sophistication, and maturity of the Colombian textile and apparel industry. We observed significant capital investment in machinery and technology. Many of the manufacturers have operations which encompass all of the necessary manufacturing processes under one roof: they spin yarn, knit and weave fabric, and assemble apparel. Unlike most of the textiles and apparel produced in Central America and the Caribbean, the majority of Colombia’s products are intended for sale in Colombia’s domestic market or for export to Venezuela, Mexico, and other markets in Latin America.

Related:

U.S.-Colombia Trade Promotion Agreement Now in Force!

Yarn loaded in production machinery at Fabricato, a Medellin-based textile manufacturer. (Photo Colombiatex)

Many of Colombia’s textile and apparel inputs, including fibers, yarns, and fabrics, are purchased from U.S. suppliers. Until the entry into force of the U.S.-Colombia Trade Promotion Agreement (TPA), these inputs have been subject to duties of up to 20 percent, with the exception of inputs used in apparel qualifying for trade preferences under the Andean Trade Promotion and Drug Eradication Act (ATPDEA). With the TPA in place, tariffs will be eliminated, reducing costs, and providing greater incentive for Colombian firms to buy U.S. fibers, yarns, and fabrics and for U.S. firms to invest in Colombia.  It’s a win-win for both the U.S. and Colombian textile and apparel industries.

In addition to duty-free benefits, the TPA contains several important flexibilities and protections to make sure that the U.S. industry is not harmed by the flow of imports from Colombia. For example, the TPA contains a textile-specific safeguard mechanism that allows most favored nation (MFN) tariffs to be temporarily re-imposed if a surge in duty-free imports from Colombia is shown to be causing or threatening to cause serious damage to domestic industry. The TPA also includes specific customs cooperation language for enforcing measures affecting trade in textile and apparel goods to help prevent the circumvention of the agreement’s rules on the origin of inputs and finishing processes.

As the TPA enters into force, we’re already starting to see signs of growth in U.S. textile and apparel sales to Colombia. U.S. exports of textiles and apparel to Colombia in 2011 were up 33 percent over 2010, with exports totaling $165 million in 2011.  Exports should further increase over the next few years due to the immediate duty-free market access for all qualifying textile and apparel goods entering Colombia under the TPA.  U.S. textile producers will have more opportunities than ever before to sell their goods in the Colombian market.

On the flip side, apparel imports from Colombia have been declining since 2005.  There are several possible explanations for this decline, including the end of global quotas for textile and apparel goods in 2005, the global economic downturn of 2008/2009, and, most recently, the uncertainties surrounding sourcing from Colombia.  Between the ATPDEA being enacted and terminated five times, and the stalled and unknown implementation date of the TPA, U.S. importers have been hesitant to source from Colombia.  With the implementation of the TPA on May15, no expiration date for duty-free benefits, and certain beneficial textile provisions, we expect sourcing of apparel from Colombia to gradually increase.

There is a wealth of information available on our website for companies interested in taking advantage of the new sales opportunities offered by the U.S.-Colombia TPA. Please visit our website or contact us via email OTEXA_Colombia@trade.gov with any questions.

Services are critical to trade and the U.S. economy; they provide the design, development, implementation and distribution functions critical to the manufacturing sectors in the U.S. that are expanding the country’s export capabilities and to U.S. competitiveness in the global economy. In 2011, services activities in the U.S. accounted for nearly 80 percent of private sector Gross Domestic Product and 82 percent of all private sector employment. Employment in the U.S. services sectors is very diverse and can range from architecture and other professional services to education and media, from express delivery and logistics to business process services on a global basis, to name just a few. Global trade in services is growing rapidly. Services comprised 29 percent of total U.S. exports and totaled $608 billion in 2011, posting a trade surplus of $178 billion. The U.S. is both the top exporter and the top importer of services in the world.

As an advocate for the development of U.S. service industries in international trade, the Commerce Department’s Office of Service Industries works closely with the private sector to expand their exports and with other U.S. government agencies to improve foreign market access for U.S. companies. We provide Commerce and Government agencies expert guidance on industry analysis, competitiveness, trade policy and negotiations across a broad range of service industries. We provided critical industry information for the development of the Colombia, Panama, and Korea trade promotion agreements, and our active engagement in trade talks like the Trans-Pacific Partnership ensures that the market access interests of the services sector are taken into account.

Currently, we have a number of projects under way to expand services trade worldwide. Our Export Facilitation Services Team is putting the finishing touches on a senior-level advisory committee on supply chain competitiveness issues. The committee will advise the Secretaries of Commerce and Transportation on issues involving freight policy development to reduce congestion delays and lower costs for U.S. businesses operating within the U.S. and trading goods and services worldwide.

We are also working with manufacturers, operators and users of temperature-controlled warehousing, transportation and distribution to expand safe exporting of temperature-sensitive products to emerging economies including China, India and Brazil.  This project has the potential to increase demand for U.S. manufactured cold transportation and warehouse equipment while doubling agriculture exports.  Find out more about the Export Facilitation Services Team and how we are working to increase U.S. services exports through our website.

Stress Indicators is a Maryland manufacturing company with six employees.  Much of the raw materials for the product as well as the final bolt are made in the U.S. and sold worldwide.  This year, production is expected to increase from 25,000 per year to 75,000, with additional increases expected next year.  The company credits the U.S. Commercial Service of the International Trade Administration with providing help needed to go global. Company president Charles H Popenoe, III shared his story with Doug Barry of the Trade Information Center.

Barry:  How did you get into this business and how did this business start?

Popenoe:  My father, also named Charles Popenoe, worked for National Institute of Standards and Technology as a scientist. And in his spare time, as a hobby, he was an inventor.  He still is an inventor. And he invented the SmartBolt and patented it.

Barry:  How did he do it?  Did he invent the SmartBolt in his garage or his basement?

Popenoe:  Yes.  Garage and basement

Barry:  And he just tinkered around, and there it is?

Popenoe:  Well, he saw an article in Popular Science about a bolt with a little glass window that breaks when you tighten it to the proper tension.  And so he said, well, that’s neat, but I can come up with a better idea than that.  And he worked and worked and actually took 10 or 15 years to develop it.

Charles H Popenoe, III, President of Stress Indicators with SmartBolts, a product his father invented. (Photo Stress Indicators)

Barry:  How are the bolts used and by whom? 

Popenoe:  The applications are numerous.  But we’ve had one in particular that’s caught on, and it’s really caught on worldwide.  It’s our most successful application.  It’s used for electrical connections.  And basically you’re joining conducting bars and they’re carrying current, and they’ve got to be tight, or else you get heat buildup and potential of arc and other issues.  It’s easy for inspection as well, because you can just look at the bolt and know that it’s properly tightened because of the color of the indicator in the head without touching these high-current-carrying bars.

Barry:  When did you start selling outside the United States?

Popenoe:  We were really just focusing on the U.S.  We got a few inquiries from overseas.  And one that we cultivated was with a Turkish company.  It was 2009 when we got our first big order from them.  And at that point, the people we were working with suggested that I talk to the Baltimore Export Assistance Center (of the Department of Commerce) to help us get started in our exporting program.

Barry:  And have there been sales to additional countries since the sales to Turkey?

Popenoe:  Yes.  Our sales to Turkey are ongoing, so we’ve been able to keep that customer happy.  But we’re also selling to Taiwan.  We have a new agreement with a company in Australia to sell throughout Southeast Asia.  We’re selling to South Africa, Japan, Korea, and the list goes on really. We have a good Internet presence and website, and we’re strong on search terms like “tension-indicating bolts,” “torque-indicating bolts.”  And we get a lot of interest from overseas from our website.  We develop these leads right here in (Maryland) usually by email and we don’t have to travel.  I’m actually going to Istanbul next month to visit my Turkish customer.  They’ve become a very important part of our business so it’s about time I visited them.

Barry:  What other kinds of help have you received from government?

Popenoe:  One of the outputs of our work with the Export Assistance Center was being able to create a business plan to submit to the state of Maryland for an Export Maryland grant, which helps pay for some of our international sales efforts.  And that actually led to a U.S. Department of Commerce trade mission to Brazil that we did the following year.  So it’s really been a series of services and they’ve all helped, really.

Barry:  And a written export plan obviously was helpful to you.  What are the main components of the plan?

Popenoe:  Well, it’s really identifying our market.  But I think one of the key things is the recognition that SmartBolts is an outstanding product for export – because it’s high value, its unique; it’s the kind of thing that can be used in almost any industrial nation.  And so the foundation of our plan is that we have a very good product for export and that we have to treat the international market very seriously if we want to grow.

Barry:  Intellectual Property Protection.  It took your dad 10 years to develop it so this would hard to reverse-engineer it in short order.

Popenoe:  It is patented.  And we have a series of patents, some internationally.  But mostly we’re protecting it based on the fact that we’re the only ones that know how to make it, and it’s not trivial to manufacture, and we’re trying to stay ahead of the competition.  But at the same time, we know that the challenge is there.  And then we have to keep developing new products to stay ahead of those who would copy it.

Barry:  What percentage of your business is international?

Popenoe:  Well, last year about 50 percent of our sales was international.  So it’s very significant.  It may even be greater than that this year.

Barry:  Good.  And what advice would you have to other U.S. companies that are considering expanding internationally or getting into it for the first time?

Popenoe:  Well, I think your local Export Assistance Center has a lot of resources to help companies determine whether they’re a good candidate for exporting.  And I think that’s where I would start, because that will point companies in the right direction to see where they should go from there. The networking opportunities are also great.  And so at this point we’re a fledgling exporter.  But, you know, in the future I certainly hope to be a model and assist others in the same path. 

Barry:  Export sales as 50 percent of total revenue hardly fits with “fledgling,” but I admire your understatement and your modesty. Are you publicly traded?

Popenoe:  No, that’s not likely.  We’re still a small company–but we’re growing.

Today Commerce Secretary John Bryson presented 41 U.S. companies and organizations with “E” Awards and “E Star” Awards recognizing their significant contributions to the expansion of U.S. exports. These awards fall into two categories. The “E” Award for Exports honors manufacturers and service businesses, demonstrating a sustained increase over several years in selling U.S. products and services to overseas consumers. The “E” Award for Export Service honors export service providers that demonstrate how over several years they have assisted businesses to increase their exports.

Commerce Secretary John E. Bryson welcomes the 41 “E” and “E Star” Award winners to the Indian Treaty room. (Photo U.S. Dept. of Commerce)

The “E” Award was created by President John F. Kennedy on December 5, 1961, “to award suitable recognition to persons, firms, and organizations making significant contributions to the increase of American exports.” The “E Star” Award, which was authorized by the Secretary of Commerce in 1969, recognizes previous “E” Award winners for their continuing significant contributions to U.S. export expansion.

This year marks the 50th anniversary of the “E” Award and since its inception, more than 2,500 companies and organizations have been recognized for their excellence in exporting. The honorees this year are the largest group to be recognized with the “E” Awards and “E Star” Awards for their export achievements and the diversity of industries and communities represented is impressive. The 2012 receipents come from across the United States, from Bakersfield, Calif., to Baton Rouge, La., Bolingbrook, Ill., and Bradford, Pa. Of the companies recognized at today’s ceremony, 35 are small or medium-sized enterprises, 20 are manufacturers, and 17 companies are both.

For example, the 2012 recipients include:

Ambient Technologies is a small, Hispanic-owned business that has been providing geological consulting, drilling, geophysical and geographic services since 1993. With offices in Florida and Panama, Ambient employs more than 32 individuals in the United States and more than 12 internationally, mostly professional scientists, technicians, drillers and administrators. Ambient contracts with international consultants and engineering firms to deliver support services on projects in Central America, South America, and the Caribbean region. These projects include major construction and remediation projects with worldwide recognition, including the Panama Canal Expansion.

Founded in 1997, MyUS.com of Sarasota, Florida is a leader in international package forwarding and shipping, servicing more than 100,000 global consumer and business customers’ annually.  MyUS.com employs shipping experts to handle its customer’s international shipping logistics, package consolidation, export compliance and customs documentation needs for the approximately 2,000 packages MyUS.com receives daily.  With a global footprint in over 200 countries worldwide, MyUS.com has sustained its commitment to export expansion by continuing to provide excellent service to its customers. 

DeFeet International Inc., of Hildebran, North Carolina, manufactures high-quality, technical-performance sports socks, gloves, and base-layer apparel. Established in 1992, DeFeet has always manufactured its own products. In September 2001, the company lost their entire factory to fire. DeFeet was able to continue knitting and rebuild. The company is committed to making quality products using locally sourced materials, employing skilled craftspeople, and minimizing waste.

NuStep of Ann Arbor, Michigan, manufactures a recumbent cross-trainer designed for general fitness, as well as rehabilitation physical therapy of individuals unable to use regular exercise equipment.

McWong Environmental and Energy Group of Sacramento, California provides environmental design services and equipment for wastewater treatment projects in China.

These are just a few examples of the companies recognized today. Each story differs, but at the heart of their success is their willingness and ability to tap into markets outside of our borders.

Today people want products “Made in America” and these manufacturers, service companies, and export service providers from across the country are helping to make that possible.