Issue link: https://read.dmtmag.com/i/459961
February 2015 | Boating Industry | 25 [ Building profi ts through export ] www.BoatingIndustry.com For a number of American companies, the key to growth lies in expanding through export. BY CRAIG RITCHIE i t's a fairly simple concept – to make more money, you need to sell more stuff. And to do that, you need to either sell more stuff to your existing customers or fi nd more customers than you have right now. A growing number of American companies in the recreational boating industry are adopting the latter approach and looking to grow revenues and profi ts by building their customer base overseas. "Having a healthy balance between domes- tic and international sales is important for any company with an exportable product, as this al- lows them to better navigate the seasonal and economic downturns that often occur in our in- dustry," said Julie Balzano, export development director for the National Marine Manufacturers Association. "Just think back to 2008 when our economic crisis hit. Companies who had a var- ied portfolio of international clients were simply able to shift their focus away from their shrink- ing domestic activities to pursue growing oppor- tunities overseas instead." The case for export The case for exporting has never been stronger. According to the U.S. Department of Com- merce's International Trade Administration, today 95 percent of the world's consumers live outside of the United States. Non-U.S. residents further represent 92 percent of the world's eco- nomic growth and they hold 80 percent of the world's purchasing power. The message is clear – if a business elects to sell strictly to the domes- tic U.S. market, it is choosing to miss out on a large number of well-heeled potential customers. In 2013 the total value of all exports shipped from the United States amounted to $1.579 tril- lion, up 49.4 percent since 2009. But what is particularly interesting in that statistic is that it represents the collective exports of large multi- national companies and small mom-and-pops alike. While we expect large manufacturers like Brunswick or Raymarine to sell their products around the globe, ITA data reveals that small and medium-sized companies represent a full 98 percent of all U.S. exporters. Most exporters, ac- cording to the ITA, are much smaller companies than most would ever believe. Illinois-based Gator Guards is a classic example. The family-run company, which manufactures a full line of keel protectors and associated boat protection equipment, fi nds it- self in the interesting position of having more international distributors than it has full-time staff. President and CEO Sue Smith said, "We're celebrating our 20th anniversary this year. We began expanding overseas two years ago. After 18 years we decided it was just time to expand our horizons and it's the best thing we ever did. I expect we will grow internationally by 30 to 35 percent next year." Gator Guards now sells its product line in the United Kingdom, Norway, Sweden, Finland, Russia, Poland, France, Italy, Romania, Slovenia, Turkey and Greece. Power equipment manufacturer Xantrex has also grown its sales through international distribution. "Xantrex had a very good year in our core markets," said John McMillan, director of sales for the Xantrex brand at Schneider Electric. "But we also realize the global market is growing, and we see evidence of that in our operations in South America, Australia, Japan, China and Europe. We feel there is a strong opportunity to grow » of the world's consumers live outside of the United States. 95% 95% » the 2013 total value of all exports shipped from the United States. $1.579 TRILLION $1.579 TRILLION NMMA's export program can help U.S. companies get started.