MiMfg August 2020 | Page 13

T here’s no disputing the importance of global trade and exporting for manufacturers. With 95 percent of the population, 92 percent of economic growth and 80 percent of the purchasing power outside of the U.S., plus Michigan alone being responsible for more than $53.1 billion in 2019 exported products, exporting must play a role in nearly every manufacturer’s current or long-term growth strategy. Numerous events have shaken the foundation of global trade in recent years. There are concerns over tariffs from China and subsequent trade restrictions. The UK Brexit led to an uncertain future for the European Union while Germany and other nations pushed back against accepting US-made products. The adoption of the new United States-Mexico- Canada Agreement (USMCA) had a positive and stabilizing effect, but many manufacturers still face a steep learning curve. As with any major disruption, there will be winners and losers. We need to make sure U.S. manufacturers in general, and Michigan ones in particular are among the winners. — Yannick Greiner, Truck Hero Company Director of International Sales and adjunct professor of International Business and Marketing at Oakland University The COVID-19 pandemic and its catastrophic impact on health and the economy continues to inflict damage, forcing manufacturers to deal with closure by executive order, employee health and safety concerns, declining demand, shifting priorities and uncertain supply chains. The virus and the worldwide response to it have resulted in new relationships, new methods of communication, and new protocols and procedures — each carrying with it severe cost implications and questions about where to locate capital and how to allocate resources. “All of these challenges, experienced simultaneously, will have longstanding impact on what manufacturers can do; but many are finding unique opportunities even in a bleak landscape,” said John Walsh, MMA President & CEO. “The brilliance of Michigan manufacturing is that we’ve never let obstacles overwhelm us or barriers block us from achieving the extraordinary. With the right resources and the right mindset, Michigan’s manufacturers can find success on the global stage.” Thankfully, business and industry leaders with Michigan roots and a global reach have provided leadership and remain willing to share their experience to help manufacturers find success in international trade and export. August 2020 MiMfg Magazine 13 Lessons Learned from the Front Lines of Global Trade What do U.S. manufacturers — especially those with a footprint in Michigan — have to do to be among the winners in this new world of global trade? We asked high-performing manufacturers with deep experience in trade and service on the Michigan District Export Councils that very question. Truck Hero Company While it is undeniable that the COVID-19 pandemic has altered the global trade landscape, many business leaders remain confident that COVID-19 will one day be just a small blip in international trade. “International business will recover and continue its ascendant trajectory. If anything, the pandemic has shown us how integrated and interdependent the world has become,” said Yannick Greiner, Director of International Sales for the Ruggedliner brand of Truck Hero Company and an adjunct professor of International Business and Marketing at Oakland University. Representing this leading manufacturer and distributor of quality OEM truck accessories including truck bed liners, covers, and wheel well liners, Greiner believes that they will also become more resilient even if the supply chains shorten, and that COVID-19 and new trade agreements like the USMCA could be catalysts for a re-globalization. “Cross-border trade will come back stronger, more diversified and empowered by digitalization,” predicted Greiner. “As with any major disruption, there will be winners and losers. We need to make sure U.S. manufacturers in general, and Michigan ones in particular are among the winners.” Manufacturers emerging on the global stage should start with “low-hanging fruit,” according to Greiner. Canada and Mexico are neighbors and part of the newly enacted USMCA. Starting within your North American family will help new exporters sharpen and hone their international business skills and gain confidence with some early “wins.” These regions can also open doors to other areas — Quebec into France and Mexico into Central America and Latin America. “Exporters can systematically increase their overall presence in more challenging global markets, once a solid international base has been achieved,” suggested Greiner. Steelcase As a large, global manufacturer Steelcase has 13 manufacturing centers and 14 distribution locations throughout North America, Asia,