MiMfg August 2020 | Page 14

14 MiMfg Magazine August 2020 Europe and the Middle East. With business in more than 80 countries in 2019, it’s not always feasible to produce each product in each region. “A critical factor of our success has been a result of trade and exporting — our customers require a range of solutions to support their unique needs,” said David Radle, Operations Manager — Logistics for Steelcase. “Exporting allows us to leverage our scale and capabilities locally while at the same time meeting the needs of our customers globally.” The COVID-19 pandemic has had a significant impact on regional suppliers, manufacturing facilities and logistics and made normally reliable weekly shipment intervals much more difficult to secure. “It has also impacted our schedules quite a bit,” explained Radle. “We are now actively preparing our supply chains for future delays by pulling ahead orders, adjusting inventories, expanding our carrier/lane combinations, leveraging multiple export locations, and booking ocean carrier capacity earlier, all to ensure we have the vessel space we need with multiple schedule options.” International exporting allows Steelcase to leverage the capabilities of its West Michigan supply base on a global level and provide the same consistency and quality products to customers all over the world. “In times like these, you need to have confidence in your networks and contacts,” Radle suggested. “Whether those networks and contacts are a broker/ forwarder, a customer, a trade association, the Department of Commerce, or an industry group, those closest to the region will have the most useful knowledge to help guide your decision-making.” RoMan Manufacturing, Inc. RoMan is a global supplier for special watercooled transformers and DC power supplies. The Grand Rapids-based operation has equipment in over 120 countries across Asia, South America, the EU, Canada, and Mexico. As any manufacturer with international ties will tell you, every region carries very different challenges. “Brazil and India have high levels of bureaucracy while China carries with it concerns about tariffs and constant mood swings in Beijing,” said Don DeCorte, Vice President of RoMan Manufacturing, Inc. “At RoMan we know that we must be an exporter in order to survive and grow as a manufacturer, but we could write a book on all the potential pitfalls.” Deemed an essential service provider during COVID-19, the company still had plenty of barriers along the way. Safety issues, constantly changing rules, and state shutdowns have added a tremendous amount of stress to RoMan’s people and added cost to operations. “The worldwide reopening of business and markets is going to be “bumpy” and inconsistent,” Top Tips for Effective Exporting Companies that export see greater profitability, are better able to withstand fluctuations in the US economy and are generally able to pay higher wages. Here are the top tips from the team at Foster Swift for effective exporting now and in the future: 1. Perform due diligence on potential trade partners. 2. Develop a solid contract with risk mitigation strategies tailored to your industry, geography and particular fact situations. 3. Reconsider and upgrade export compliance plans, procedures and policies, especially in the face of global pandemic and global recession. Employees working remotely, shifting job responsibilities among employees, new supply chains, product line changes and new geographic risks are all examples of pressure points that can lead to legal trouble, including export control issues and other violations. 4. Discuss international intellectual property protection strategies with your international trade attorney. 5. Check and update technology including the company website, especially with SEO specific to your export markets to enhance export opportunities. The MEDC STEP Grant can help with this. 6. Remember to take advantage of the free and reduced-cost resources available for a limited time through your local USEAC (see trade.gov). Check out Foster Swift’s International Business and Trade page at fosterswift.com for more services to help you grow your international business. DeCorte acknowledged. “Even the best economists are having a hard time estimating how and when the U.S. and world economy will bounce back. At RoMan we know we must be vigilant and agile regarding how the “wind is blowing” in order to keep up with the constant change we expect to see for a while.” DeCorte continued, saying that despite the many issues surrounding global trade, “we also believe that being a global supplier makes us a better company. While there are always challenges, having to compete on a world scale is what challenges us to be better. If you can bear the bumpy road, stay the course. You may find excellent opportunity to become an exporter due to your foreign competitors not being ready to serve their markets. This means doing your homework on competitors and it also means “staying out there” regarding marketing and connections.”