Attila’s Guide to Conquering Export MarketsAugust 29, 2013
Doug Barry is a Senior International Trade Specialist in the International Trade Administration’s Global Knowledge Center.
Attila Szucs started Advanced Superabrasives in Nashville, North Carolina, with one employee in the early 1990’s. In the years that followed he grew the domestic market for his products, then expanded internationally during the U.S. economic downturn.
Szucs’s company has used International Trade Administration services like the Gold Key matching service to develop international markets around the world. His company was recognized by the Commerce Department with an “E” Award for exporting. He shared his story with Doug Barry, an international trade specialist with the International Trade Administration’s Global Knowledge Center.
Barry: Tell us about your company.
Szucs: The company was founded in 1993 in Nashville, North Carolina. And basically we started with myself and another person, and today we’re exporting to 16 countries.
We manufacture super-abrasive grinding wheels for other manufacturers. Super-abrasive grinding wheels are a product that actually grinds hard materials such as ceramic, glass, quartz, steel–all materials that need to be manufactured to very high tolerances. And the best way to do that is through grinding.
Barry: How did you get the entrepreneur bug?
Szucs: It was from my father. He had his own business. He started his own business in the United States not too long after we arrived here. And he is the entrepreneur in the family, and that’s where I got it from.
Barry: What was the biggest challenge that you faced in the development of your company?
Szucs: We started with absolutely no sales in 1993, and we did a lot of research and development and testing to improve our product. And slowly but surely we started penetrating the market within the United States.
We started exporting in 1995 to Canada. And after about 2002, when the economy took a hit in United States, we started to look how we could diversify so we can insulate ourselves from economic downturn. That’s when we decided that we really needed to look at exports, and we started exporting to China and to Brazil.
Barry: How did you manage?
Szucs: We were lucky. We actually started talking to the U.S. Department of Commerce, from Charlotte, NC, and it was just absolutely wonderful how we were treated and how much help they were. Through their Gold Key program, that’s how we got into Brazil. And that program is so helpful that they set everything up for you and basically all we had to do is show up. They even helped us with an interpreter and they set up all the appointments for us. It was a wonderful experience.
So from that point on we really tried to work very, very closely with the U.S. Department of Commerce. And in North Carolina we also had the North Carolina Department of Commerce, who was also very helpful in helping us navigate through the exporting issues that may have come up.
Barry: But how did you know to contact these people to begin with? You’ve mentioned just showing up. That’s something that a lot of U.S. companies fail to do.
Szucs: Most small U.S. companies don’t know about that tremendous asset that we have, whether it’s from the federal level or the state level. We actually heard from another company who used the U.S. Department of Commerce which helped them export. And that’s why we contacted them and wanted to see how we could pursue the same route.
Barry: Have you learned things in your dealings with other countries – China, Brazil, elsewhere – that have made you a better company?
Szucs: We just came back from Seoul, Korea. We participated in Trade Winds Asia, a U.S. Commerce organized trade mission. And again, I can’t say enough about it because it is a tremendous amount of help to any U.S. company, especially small companies like ours, because we get to meet companies from the region – potential customers, potential distributors. Plus, we learn about the culture of each country in the region and what they’re looking for so we can better prepare ourselves when we start dealing with these companies. It was invaluable for us.
Barry: Have you modified your product at all, or modified your approach to doing business as a result of what you’ve learned by selling to people in other cultures?
Szucs: We absolutely had to, because different cultures have different needs and we really have to cater to their needs. We can’t use the same approach in Europe that we’re using in Asia.
The United States does have a good following. People around the world, especially in Asia, they look up to United States and to United States products. So if you’re sincere and you have a good product, you have a very good chance of selling overseas, especially in Asia.
Barry: Are you confident that after you recent trip to Asia that you’ll add to your current collection of country markets?
Szucs: Yes, I’m looking forward to adding Korea and Japan. Japan is the crown jewel for me.
Barry: Will the free-trade trade agreement with Korea help?
Szucs: I think it will. Anytime we have a free trade agreement, it definitely helps. And it removes some of the obstacles.
Barry: What’s your advice to U.S. companies that aren’t exporting now?
Szucs: You don’t have to be a large company to export. That’s number one. And we’re a prime example. We’re not a large company. Second, take one country at a time. And most important, get help. And I would highly recommend using the U.S. Department of Commerce and your own local state department of commerce, because it will help navigate those troubled waters of export. Depending on which country you’re trying to get into, it could be a tremendous help to have people help you with the exports.