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complex, but Feeco executives say there is more to success with exports than mastering logistics, or even customs details. The difference for Feeco starts with product quality, but also spans a range of other factors, says Lee Hoffmann, Feeco's vice president and general manager. It includes working with prospective customers on the processes they might want to use equipment for, field installation, and working with banks to set up financial arrangements such as lines of credit or progress billing arrangements, he says. "We're definitely a solutions provider, not just an equipment maker," says Hoffmann. "In fact, we just The logistics of shipping an item this big, that far can be upgraded our lab in the past year to expand our capabilities for working with customers." In one instance, Hoffmann recalls, Feeco used its production-testing capabilities to show a Canadian- based nickel producer that it was feasible to recycle nickel from used batteries by separating plastic housings from the underlying material. That gig eventually resulted in equipment sales to the nickel producer, says Hoffmann. "There is a different philosophy between exporting some product on an incremental basis, versus thinking about what you need to compete on a global basis." – Mark Schwabero, president of Mercury Marine 36 comes from factors including many years of experience in the design of particular types of equipment, use of modern computer-aided design software, and rigorous laser measurements during the manufacturing process. Hoffmann says quality gives Feeco a leg up over foreign F percent of the state's manufacturing, mining and farming gross domestic product is exported. their wages run 13 percent to 18 percent higher. Already, 36 percent of the state's manufacturing, mining and farming gross domestic product is exported. "The question shouldn't be whether or not you should export, but what region holds your next best opportunity," says Klenke. Setting yourself apart or Feeco, the core of its exports success is equipment quality, says Hoffmann. The equipment, as big as it is, has precise tolerances between its moving and inter-meshing parts. That precision competitors who can underprice them in some markets for upfront equipment costs, but whose equipment typically requires more servicing to get and stay productive. "When our customers buy a product from us, they have confidence that it will work reliably for them from the day it' customers in far-flung regions may have to pay more in freight versus a more regional competitor, but adds that customers ultimately judge the cost of equipment over the long term. "Our customers are going to be running this equipment for 30 or 40 years or more, so their primary concern is that the equipment is reliable and productive over its life cycle, Dan Madigan, Feeco's president and CEO, acknowledges about 45 percent of sales over the past five years, but many other manufacturers based in Northeast Wisconsin also do well with exports or have grown into international operations. In many cases, they are building off of traditional strengths such as industry-specific engineering expertise and specialization in building customized equipment. Companies that export tend to perform better financially, Feeco has grown its exports so that it now represents says Lora Klenke, vice president of international business development for the Wisconsin Economic Development Corporation. According to WEDC, exporting companies in the state grow 2.4 times faster than non-exporters, and 10 | INSIGHT on Manufacturing • May 2012 such as China and India, Klenke says these countries will have large consumer populations and export potential. Much of the potential growth is in business-to-business exports, such as selling industrial or agricultural equipment that producers overseas will use to make goods for domestic markets. With B2B equipment sales, value-added services such as field installation or advice on optimizing production processes is often part of the overall solution Wisconsin companies excel at, says Klenke. "The companies that are the most successful tend to sell that complete solution," she says. Indeed at Feeco, the company has invested in industrial With explosive middle-class growth projected in countries " he says. s installed," he says. automation technology and trending software so that its lab can prove out industrial processes for clients, says Hoffmann. And when big pieces of gear like rotary drums are installed, Feeco sends experts to oversee details like making sure the www.insightonmfg.com