Businesses developing a world view

Stan Klyber

John R. Finkes

In the realm of international trade, it's a small, small world and getting smaller, according to Stan Klyber, export-trade specialist at Black Hawk College.

Mr. Klyber helps Quad-Cities businesses send their products overseas. Fewer than 100 local businesses do so, despite potential for an estimated 700 to 800 local companies that could export their products.

Many small companies don't realize that if they sell a product in the domestic market, they are prime candidates for selling overseas, Mr. Klyber said.

The challenge is to learn how to overcome a few obstacles. The staff at Black Hawk College's Small Business Development Center and Export Trade Center helps firms network with each other, develop trade plans, set up foreign marketing programs and sales networks, and learn how to ship products to foreign ports.

American companies must learn how to do business globally, Mr. Klyber said.

American business owners are accustomed to doing business one way, he said. ``They say, `Here's our product, and here's our prices.'|''

But in the rest of the world, business people establish a personal relationship with those with whom they do business, he said. ``We have to build that relationship and trust.''

Most companies start by trading in English-speaking Canada and Great Britain, where a common language helps overcome some barriers, Mr. Klyber said.

They then reach into the market in Mexico, a co-signer to the North American Free Trade Agreement. Such international agreements have relaxed some regulatory barriers and reduced tariffs to open up the trade environment.

Paperwork is still the main reason most small businesses fear international trade, Mr. Klyber said. While larger companies can afford to be on the same electronic system as the U.S. Customs Service, the smaller companies must prepare the forms manually.

Exporting can directly benefit businesses, with things such as a 20 percent employment growth, according to Export Trade Center data.

The George Evans Corp. of Moline, metal fabricators for farm-equipment makers and other industries, has incorporated international sales into its strategic plan.

``International trade has become more important to our long-term strategic planning as segments of our potential customer base have expanded worldwide,'' said John R. Finkes, vice president of sales. ``Our products must be available throughout the global market.''

Deere & Co.'s first manufacturing operation overseas was established in Mannheim, Germany, in the mid-1950s, but Deere has been selling product internationally for most of the century. About one-third of all Deere & Co. equipment sales in 1998 came from overseas, company spokesman Greg Derrick said.

In a typical overseas venture, Deere would establish a partner in the designated foreign market. Its targeted market would be suitable for Deere's large-size tractors and combines.

During the last several years, Deere has set up ventures in Brazil, expanded its presence in Mexico, and built strong positions in Argentina and Australia, among others. Deere also has established new relationships in China and plans a new combine factory there. It also has an agreement to produce new tractors in India.

The regulatory environment also has eased so that it is much easier to move product around the world, Mr. Derrick said. A company can build product with components from many different places.

Last year, Deere's export sales totaled $1.97 billion, about the same as the prior year, despite weaker economic conditions and adverse currency fluctuations in Deere's overseas markets, Mr. Derrick said.

Deere's overseas position is becoming profitable and successful, he said, and that's having ``a substantial bottom-line impact on the company today.''