Global Trade Base Trends
January 16, 2009 - Export Considerations
- The intended audience of this article is the executive business leaders who plan the strategic direction of their company. It has to begin with a short history lesson. Every recorded civilization has evolved in cycles. These included times of growth, recession, evolution as well as times of chaos for existing methodologies. As business and industry leaders we should not be alarmed and react to the trends commonly recorded. We should remember that in those times of chaos came the greatest change. So we are entering into another of those cyclical patterns. Remember the business models that survived and thrived during those times were the ones who adapted to the market as it evolved. Those that did not faded into history.
- My staff frequently shares the comments given to them by the multitude of business leaders that we speak with every week. It is amazing how many of these leaders are clinging to business practices that are proven daily to no longer be effective. We commonly draw a comparison to the days of Thomas Edison and the implementation of electricity in this country. Think of those manufacturers who made products in facilities with no electricity. Visionaries went to those business owners and actually had to sell them on the idea of putting electricity into their buildings. The owners actually believed that electricity was not worth implementing. Imagine the objections those electricity salespeople were given... "We do not see the benefit."; "We have never done business that way."; "What is it going to cost?"; "What is our return on the investment."; "We do not want to pay the expense of implementation." The trend is repeated as we seek out companies to take into international markets. Going forward, every company will require an international market simply to stay in business. Even our new country's President has identified this as a fact.
- Face the facts. Our country is in economical crisis and there is no legitimate measurable forecast identifying the length it will occur. Every domestic producer is doing well if their sales are holding even at this point. However, there are always competitive products to yours that the consumer has to choose between with their declining expendable income. Project out where your company will be in six months, a year, five years in the current economy. If the practices that were successful for you even last year were still working then the economy would not be where it is. Your choice really comes down to staying in your current declining market or expanding into new and better economies. What seems to be the most logical answer to that choice is often met with resistance from those who are afraid of change. Like it or not. Your market has changed and adaptation to a new market is needed or the alternative is fading away as history again repeats itself. President Obama said "The best locomotive for job creation lies in U.S. exports." But, no service in this country is free. You do not provide product with the expectation of doing it for free and our international sales are projected to increase by 300% in 2009. We can assist companies in not only staying in business but growing while other fade into history. It is a strategic choice that has to be made now. This is the time to take action and export.