Issue link: http://www.insightdigital.biz/i/140775
Business Development Growing the reach Exports study shows overseas opportunities for New North businesses By Se an Joh n son T om Baron can see the worldwide business opportunities for New North companies. Of course, with much of the world's population living outside of the U.S., it's easy enough to say there are plenty of opportunities for companies in the region to grow their business by exporting products. It's quite another thing to have the resources in place to help small- and mediumsized companies get their products into new markets around the globe should demand materialize. That's the challenge Baron, the New North and economic development officials around the region are addressing in the wake of a recent study showing growth potential for New North companies that can grow international demand for their products and services. "There is tremendous potential for exports from New North companies," says Baron, an associate planner with the East Central Planning Commission and one of the primary authors of the study. "But to take advantage, we need to grow the awareness that there are resources to help." Completed in April 2012, the Northeast Wisconsin Global Trade Strategy examined the current export patterns, the region's infrastructure to support global trade and the potential obstacles that prevent companies from viewing international markets as a growth opportunity. "The comfort level is just not there," says Jerry Murphy, executive director of the New North. "If we can build some of the foundational pieces, it can lead to greater exports for companies in our region." 10 N e w n o r t h , i n c. Small firms in search of answers Researchers found that while some of the largest companies in the region are quite comfortable working internationally, many smaller firms do not have the expertise to pursue similar opportunities and are not aware of the resources available to help them, Baron says. And there are certainly opportunities, including some areas regional planners and economic development officers may not have considered as areas of strength in the past. The study identified several industry clusters as having potential for immediate impact. These included aerospace, along with more traditional industries such as agriculture equipment, chemicals and food processing. "People don't think about it because we don't have a company like Boeing here, but we have a lot of small companies that make components that would have opportunities," Baron says. Indeed, there is already a company in Waupaca County that makes small parts for a company that supplies the aircraft industry with landing gear parts. While many companies in the region have the capability to create the product, what they lack, or perhaps even fear, are the challenges of trying to create or navigate markets overseas. For economic development professionals such as Dave Thiel, creating the infrastructure to support greater export opportunities means creating and promoting the informational resources that help smaller companies take advantage of these opportunities. "We need to step back here and make sure the economic development people Mid-Year 13 understand the resources and can use it as part of their day-to-day calls," says Thiel, executive director of the Waupaca County Economic Development Corp. Exporting by strategy (not chance) In the past, it's often been chance or accident that companies were able to exploit export markets for their products. One company in Thiel's region, EJ Metals, unintentionally wound up exporting internationally after a foreign buyer found the company's website and wanted to place an order. While successful, Thiel says the process would have been easier if he and the company would have better understood the programs and resources that are available. Assembling that resource network has been one of the primary tasks since the study was published last year. New North has put together a resources guide for company leaders and economic development professionals while informal networking and sharing of best practices is also occurring. The region's technical colleges are also assembling groups to share information that will help companies take advantage of international opportunities. Leveraging assets "We have the diversified manufacturing base. We can go after that international demand because of what we do well," Murphy says. "There have to be companies that need the product, but if we can make it easier or less threatening and leverage the resources, then we can be successful where there is the demand." In addition to leveraging informational assets, the global strategy document