Recipe for success: embrace global marketplace A recent study by the American Legislative Exchange Council ranked Illinois 48th in economic performance and 42nd in economic outlook. This local data, coupled with the struggles facing the U.S. economy overall, can be a tough one-two punch for those of us doing business in the prairie state. However, I believe this actually represents a tremendous opportunity for businesses to flourish by embracing the global marketplace through innovation and capitalizing on international market conditions. A struggling economy is a cause for concern, but by taking advantage of global marketplace can open up new markets and increase your bottom line. Moreover, you don’t have to be a market heavyweight or employ hundreds or thousands of people. I’m not only optimistic but am benefiting from this strategy. As the president of a small business manufacturing company, I am seeing it experience record revenue growth and a significant demand for our products in markets abroad. Why? The weakened dollar has made it far more attractive for businesses overseas to purchase American products. In fact, it’s easier for businesses abroad to purchase our products, ship them overseas than purchase from competitors locally. The lackluster performance of the U.S. dollar has allowed companies like us to penetrate markets we never conceived competing in. I am confident that my grandfather, who started our business in his home on the southwest side of Chicago, never imagined his company trading in Vietnam, Singapore or the United Kingdom. But it has led to dynamic growth, new markets and a 17 percent increase in international sales—we can’t hire people quickly enough. The second half of this equation is Free Trade Agreements (FTA) which help to level the playing field for businesses to compete abroad. Right now, some of our goods and services are more expensive due to tariffs that are placed on them. This puts us at a competitive disadvantage and allows our competitors to capture business that should normally be within our reach. A good example is the recent defeat of the Colombia FTA which closed a market for our company—and many others I know—who would like to enter. With the weakened dollar, FTAs would allow us not only to enter new markets but most likely secure business due to the advantages I mentioned earlier. There are mixed views about the success of FTAs, but they work. According to the U.S. Chamber of Commerce, 88 percent of the nearly 18,000 companies that exported goods were small and medium-sized business with fewer than 500 employees. These two paradigms present an opportunity for business to identify and compete in new markets which will likely offset any losses you may experience in the domestic market. I recently spoke at a conference on innovation and the global economy in Dubai. This was my first time traveling there and, like most people, you have certain expectations heading into it. I was frankly inspired by the entrepreneurial spirit end embrace of business, and American businesses in particular, by the region. There was so much wealth, construction and innovation occurring it not only motivated me but reminded me about some of my peers who have trepidations about the global market. We are going to be left behind if we do not embrace and become aggressive in the global marketplace. Sure, the unknown is always challenging, but for those of us who either started our own business or took over a family business, risk is commonplace. Entrepreneurs are competitive in nature and the enterprise that was thriving in Dubai reminded me that we need to continue to innovate and explore new, emerging markets, or somebody else will. Our company is just one example of how the global marketplace can create new markets and allow you to thrive even in a tough economy. The weakened dollar represents an opportunity—maybe once in a generation—where a business can trade with locations across the globe. These may be one-time customers or customers for decades. Either way, it presents an opportunity to grow your business and weather this economic storm. And, if a metal float company in Schaumburg can do it, we all can. Sandra Westlund-Deenihan is president of Quality Float Works, Inc., a Schaumburg-based manufacturing company that produces hollow float metal balls. She serves on the boards of directors of the National Association of Manufacturers, Tooling & Manufacturing Association and the National Alliance for Partnerships in Equity in Education. Contact her at sandy@metalfloat.com or at 847-781-8960.

Posted on Monday, June 23, 2008 (Archive on Monday, June 30, 2008) Posted by jstoltz  Contributed by jstoltz

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