Click here to return to this month's Article Index

The Cutting Edge™October 2004

International Business Development

Foreign Buyers Program on a Roll
By Harold Zassenhaus, WMMA® Export Director, zemg@erols.com

Under the 2004 Foreign Buyer Program, eighteen international dealers and buyers in the woodworking equipment and furnishings industries attended IWF 2004 as guests of the WMMA® and Association of Woodworking & Furnishings Suppliers® (AWFS®). click here for detailed information on each foreign buyer).

The 18 company executives came from 14 countries: Canada, Bolivia, Brazil, Chile, Dominican Republic, Mexico, the Netherlands, United Kingdom, Spain, Portugal, Ukraine, Russia, India and Japan. On Dealer Day (Wednesday August 25), the two Associations organized a tour of membersO booths and hosted a cocktail reception to stimulate business between the invited guests and members. The international buyer group also had daily access to the IWF International Visitor Lounge where they met with members.

The objective of the joint association effort, now in its 5th year, is to introduce members of the two associations to qualified, aggressive international distributors and buyers while recognizing the importance that the international dealers play in the marketing of USA products. The 18 companies selected were nominated by at least 1 AWFS® or WMMA® member and final selections were determined by a joint committee. The recipients were chosen on their reputation and either their intention to add more American lines to their supplier base or their interest in buying equipment in the next 12 months, preferably from the USA suppliers.

"It was the greatest, the most innovative and the biggest show we have ever attended in USA. We believe that some businesses will be done shortly in both machinery and supplies areas. We have almost no doubt that [the] recession is over in your country which means that it will also help our countries to recover soon." Antonio Santos, Satradi, Portugal.

"I am very impressed of the trip to Atlanta. I was pleasantly surprised with new machines and modern technologies on wood processing. Moreover, I have seen so many machines for manufacturing spindles and other round and oval products, which would be a great subject for export to the former Soviet Union countries", Nikolay Konovalov, ARTEL, Ltd., Ukraine.

"[The] show was a success for us. We purchased a couple small pieces of machinery that we may never have considered without seeing demonstrations (all American made). We are also in negotiation for a large software package we discovered at the show. Jay Timothy, Island Precision, Canada.

Based on a recent survey to which 14 of the 18 recipients responded"

• Each recipient saw at least one thing they liked at the fair.
• Each has completed/begun or will begin negotiations with one or more exhibitors. In total, the recipients are in discussions with over 54 members.
• With one exception all stated they would return to IWF in 2006, the exception stating he wanted more information.
• Most are interested in attending or learning more about AWFS Fair 2005.
• In their comments recipients emphasized their favorable impression of IWF2004 and what they saw. They were pleasantly surprised by the scope and breadth of US suppliers. In other words, US suppliers have something to offer in many regions of the world.

WMMA® members have also indicated that they are pleased with the effort. Tim Brown, WMMA board member and Chair of the WMMA International Business Development Committee summarized the program's status. "The original intent of the foreign buyers program was to bring foreign machinery dealers to US trade shows in order to make US manufacturers aware of the vast opportunities available to them in other markets. The hope was that this program would create interest in the export process. We've received a lot of positive feedback from members and have also been pleasantly surprised with additional unintended benefits. We're seeing former recipients making deals, starting relationships, returning on their own initiative, and inviting and encouraging their colleagues to get involved with the program. The two major US trade shows are also seeing the benefit of becoming more "Internationalized". It's truly a win / win situation for everyone involved."

Ase Stornetta, Ritter Mfg., echoes the comments of WMMA® and also points out next year's AWFS Las Vegas show should greatly increase the amount of foreign visitors due the lure of Las Vegas and it's easy-to-get-to location. Make it easy and exciting for the foreign visitors to travel here and they will come. In the ever-changing world of 'Outsourcing', it is more important than ever to let the world know who American manufacturers and suppliers are."

The results of a member survey and my observations pointed out:

• Awareness of the program is growing.
• More members accessed the WMMA website to get specific information on each invited guest. The names, contact information, lines represented or products produced can still be found on the WMMA website, http://www.wmma.org/members/secureDocument.cfm?docID=168.
• Comparing comments received this year against those from 2003 it seems more members understand the objectives of the program and the activities in support of it.
• Moving the reception to Dealer Day increased attendance and served to strengthen ties as well as begin new relationships. We had in excess of 100 attendees. The room was full and the events went off without a hitch.
• We seem to be inviting well qualified companies/individuals.
• The program is worthwhile and should be continued. As an aside, I don't expect we will or should ever reach 100% approval of a program which pays money to individuals to come to a fair. However, the effort underscores the WMMA commitment to support our members who make world quality products and need support in realizing their capabilities.
• The positive effects are compounding. Past recipients returned to the show. Many are bringing clients even when they are not being provided funding by the associations. I saw 4-5 prior recipient dealers who were not provided any funds by us.

As in any program, improvements are needed. Members pointed out the following issues. If you have any suggestions/comments send them to H. Zassenhaus. The International Business Development Committee will take up the issues at its next meeting:

• Members want the association/committee to set up specific appointments on their behalf. Comment: This may prove difficult to do, especially in a fair environment where everyone's schedule is stretched. Ideally, members should make contact 1-2 months before the fair using the WMMA website to gain access to buyer information.
• Perhaps as a related point it seems that while members are increasingly familiar with the program and program activities a low percentage are going to the website to learn more about the recipients in advance of the fair.
• Recipient commitment to attend the fair for 4 days may be too much. Dealer Day is not that relevant to many recipients and most members are not set up to receive them.
• Recipients should be identified at least 2 months prior to the fair, otherwise the marketing and administrative schedules become compacted:

1. Awardees have less than 6 weeks to get visa and make travel arrangements;
2. Hotel blocks are in danger of expiring before recipients can make commitment to travel and;
3. Members have less time to react to opportunity.

Comment: awards were made in 2 rounds: late April (following a meeting at the WIC) and mid June. Some company executives approved in the last round did not have enough time to secure a US visa and had to decline.

As a heads up, the associations will be calling for nominees for the 2005 program in the beginning of the next year.

For further information about the Foreign Buyer Program and to express your opinions and suggestions, contact Harold Zassenhaus, Export Director, WMMA® tel: (301) 652-0693; email: zemg@erols.com.

Table of Contents
Sales Forecasting Statistics - Q3 2004 - Members Only
Recap of Association Meetings, October 18 - 20, 2004
More on the U.S. Job Market
Health Savings Accounts
WMMA®: Establishes Relationship with Department of Commerce Assistant Secretary of Manufacturing & Services
Foreign Buyers Program on a Roll
WMMA® Member Companies Continue to Benefit from University Students
CE Certification News for WMMA® Members
Sales Leads for Your Business - Members Only
WIC 2005 Hotel Safe after Hurricanes
Get to Know the WMMA® Management Team Working for You