Boating Industry

February 2015

Issue link: https://read.dmtmag.com/i/459961

Contents of this Issue

Navigation

Page 27 of 51

28 | Boating Industry | February 2015 [ Building profi ts through export ] www.BoatingIndustry.com unattainable. Their overall revenues increase but profi ts can grow even more. Exporting represents a means of balanc- ing risk, which is another key benefi t. If your company is active in multiple countries around the globe, you lessen your dependence on the domestic market and, in effect, avoid having all your eggs in one basket. "When our U.S. builders were still ramping up domestic production after the recession, many of our equipment and accessory members were focusing efforts on their overseas customers," said Balzano. "Now that U.S. production is on the rise again, a number of companies are hiring so that they can effectively manage both their domestic growth while still managing their international clients. They realize that exporting shouldn't be a reactive strategy but one that is needed to ensure continuity, long term growth and profi tability." Exporting also provides a simple and novel way to offset the seasonality that challenges so many manufacturers in the boating industry. By selling in markets that have offsetting peak sea- sons, exporters can run at full volume year-round. There's no better way of enhancing production effi ciency and utilizing that excess manufacturing capacity, which brings a far greater ROI on the cost of equipment, facilities and skilled personnel. There's one more benefi t to innovation that not many exporters like to talk about. It's the fact that you're forced to innovate and continu- ally improve. When you compete in a global market, you'll be continually challenged to stay ahead of not just one, but multiple market curves. Different ideas and competitive pressures force you to constantly innovate and the result- ing product enhancements secure your position everywhere you sell. Risks of exporting Exporting may bring many benefi ts but it is not without risk. These include potential collection problems with foreign distributors, the expense in developing new promotional materials, ad- NMMA has hosted numerous trade missions focused on growing the market for U.S. goods. Exporting allows companies to balance risk during a downturn.

Articles in this issue

Links on this page

Archives of this issue

view archives of Boating Industry - February 2015