Tag Archive: Kusum Kavia

The Value of Export

October 18th, 2019

My colleague, Kusum Kavia recommended me for CIEDEC which is the Califorina Inland Empire District Export Council.  So, I attended a meeting as a guest. Export is a vast opportunity. Just consider a few facts:

  • 95% of potential customers are outside of the U.S.
  • 97% of exporters are outside of the U.S.
  • California is the #1 state in exports
  • Less than 1% of American companies export – this is quite shocking. The good news is our clients are clearly outside of the norm.
  • Canada and Mexico are the top two export countries.

Given these facts, looking at USMCA, the U.S. – Mexico – Canada agreement should be of keen interest. The CIEDEC has written letters of support to pass this agreement citing that it will better serve the interests of American workers, farmers, ranchers and businesses; and, it supports mutually beneficial trade leading to freer markets, fairer trade and robust economic growth in N.A. There were $43.6 billion of exports from California to Canada and Mexico in 2017.  The top exports were computer and electronic products, transportation equipment agricultural products, machinery and chemicals.

There is also a heightened interest in export based on Brookings research and the consortium for Advanced Manufacturing Excellence in the Inland Empire. We are excited about the future Are you exporting?

What Should We Consider and/or What Impacts Could Arise?
There is vast opportunity for California manufacturers to export. There are tremendous resources available for exploring markets for your products and services, as well as help in getting started. We have several significant exporters in the Inland Empire.  They have grown their businesses faster and more significantly than the average.

This will be one of several topics we’ll address in our consortium for advanced manufacturing. If you are an executive interested in participating in an advisory capacity on the steering committee for this initiative, please contact me.

Additionally, our APICS Inland Empire Chapter will be addressing this topic as a part of our upcoming executive panel and networking symposium on “Collaborating for Advanced Manufacturing & Supply Chain Success“.

Think about taking one step forward in evaluating whether adding or expanding exports could increase your revenue, profitability and success. Of course, export also provides potential in distributing your dependence on domestic revenue and profitability.  So, it could be another leg in creating a resilient supply chain.



Have You Thought of Crossing Borders Lately?

March 15th, 2018

There was an export panel at the Manufacturers’  Council of the Inland Empire 7th Annual Summit, and it brings to light the vast opportunity of export.  Additionally, I had a lunch with a top international attorney and an international research expert recently, and it opened my eyes further on the topic of export.  Why do we always think about import but forget to export?

Less than 1% of America’s 30 million companies export and less than 39% of US manufacturers export.  Of those that export, 58% export to only 1 country. Why? What is going on? In the same breath, the statistics show that  Made in the USA is a compelling proposition and there is VAST opportunity to sell products in other countries. You don’t even have to go far with Canada and Mexico at our borders.  

According to a study published by the Institute for International Economics, U.S. companies that export not only grow faster, but are nearly 8.5 percent less likely to go out of business than non-exporting companies. Are we not interested in profit????  This panel has found success in export.

 

 

For example, Kusum Kavia, president of Combustion Associates discussed the success her company has had in exporting to Africa as well as many other countries.  They were featured in the cover story in Global Trade Magazine as well as recognized by President Obama at a US-Africa Leaders Summit. She credits many collaboration partners in this success such as the Export-Import Bank and trade specialists at the US Department of Commerce.

Another Inland Empire manufacturer and APICS-IE supporter, Roy Paulson, president of Paulson Manufacturing has achieved great success with exports.  They have grown rapidly and significantly through export, and he has served on the president’s export council.  Why not get a boost to your sales revenues while providing value in other countries?

There is also far-reaching support for global logistics, banking and exchange rates and much more.  Why not look into whether your products might be of interest to other global markets? You might just discover a goldmine!