Issue link: http://www.insightdigital.biz/i/82845
INSIGHT FROM ... ROXANNE BAUMANN, director of global engagement at the Wisconsin Manufacturing Extension Partnership Beyond borders Implementing successful export strategies can boost sales HERE'S A WAY TO GIVE YOUR BUSINESS A CHANCE to drive new sales from old products, as well as to develop new products to serve booming new economies: Expand into international markets. Because 95 percent of the world' outside of the United States, and because American consumers are growing older and spending less on new products, it' s population resides inevitable that the domestic market will continue to shrink as the global market expands. Developing export capability is essential for future growth. Wisconsin Economic Development Corporation s taken advantage of the market opportunities that exist in the worldwide marketplace. According to the 2011 Next Generation Manufacturing Study, just a quarter of Wisconsin manufacturers believe global engagement is important to their business, and only about 4 percent have focused on exporting as part of their strategic plan. This data illustrates the dangerous gap between the demographic reality and the growth strategies of Wisconsin' Unfortunately, many Wisconsin manufacturers haven't s will grow by 23 percent. foreign markets – breathing new life into existing products and spreading research and development costs over an extended product lifecycle. By selling to domestic markets alone, manufacturers are competing for a dwindling market pie that gets fiercely more competitive every day. The new centers for demand, investment and consumption essential that Wisconsin manufacturing leaders fast-track the development of an export expansion plan and start building international demand for Wisconsin products. Exporting allows manufacturers to tap into new sales in s manufacturers. It's are centered on emerging economies in the eastern and southern hemispheres, including India, China, and Brazil. Exporting facts from National Association of Manufacturers (NAM) show that: • More than 50 percent of U.S. manufacturing growth from 2005 to 2008 came from exports. • More than 95 percent of these exports are coming from 32 | INSIGHT on Manufacturing • September 2012 small and mid-size manufacturers (SMEs). • SME exports average about $1.4 million revenue annually; however, less than one in every four small and mid-size manufacturers export. • The U.S. not only underperforms when it comes to exports; it ranks dead last in exporting manufactured goods. • Doubling U.S. exports would support 2 million additional U.S. jobs. History has shown that when domestic sales are down, projections show by 2030 American middle class consumption will be down 14 percent, while consumption in China will increase by 14 percent. India' international markets and sales typically grow. As the U.S. gradually recovers from the economic downturn, many foreign sectors are rebounding much faster. In addition, According to the 2011 Next Generation Manufacturing Study, just a quarter of Wisconsin manufacturers believe global engagement is important to their business, and only about 4 percent have focused on exporting as part of their strategic plan. foreign markets provide opportunities to offset seasonal demand for certain products. Consider the case of Harley- Davidson. While motorcycles were safely tucked away in our Wisconsin garages in January, folks in Australia were enjoying the height of the riding season. Small Wisconsin manufacturers are creating growth by program that their greatest potential markets were Canada and the United Kingdom. With a focused plan and new information, the company was able to better manage its Canadian distributor, increasing exports by 60 percent in s ExporTech taking advantage of a new program from WMEP that helps them develop a successful export strategy. For example, Wagner, a 150-employee Milwaukee manufacturer of high-end handrail systems, discovered through WMEP' www.insightonmfg.com