Manufacturers' viewpoints on exporting generally fall into two camps. For one, exporting is an integral component of their sales and marketing program with strategic objectives, specific sales plans and focused support programs for each foreign market. This group consists of large multinational corporations but also encompasses many of the most successful mid- and small-sized companies in our industry.

The second and much larger group views overseas business as an unexpected, though pleasant, surprise if it occurs.

Few would dispute that increased market share is key to their survival. Why then do many companies fail to develop markets that often are much larger than their U.S. market?

The reason, I suspect, is fear. Fear of unknown markets, business customs, language, competitors, currency, travel, export documentation, government regulations, customs duty, capital investment and the need to learn about it all. These concerns are not insignificant. A company would need to allocate a great deal of study and resources to address these issues in order to achieve success in foreign markets. Are these fears serious enough to dissuade a company from pursuing the export of their products?

More compelling than these fears of foreign markets, is that if one fails to expand into export markets it leaves them open to competitors.

At Sturtevant Richmont, we realized that leaving large industrialized markets to competitors would allow them to develop these markets unimpeded and access advancements in manufacturing processes and practices developed abroad. It would also allow them to more rapidly and effectively serve the global manufacturers that form the nucleus of our customer base. In response, we have built an export distribution base encompassing 25 countries on five continents. This has provided increased sales and a market intelligence network that permits us to know the needs of our customers and the actions of our competitors.

Three drivers that, in addition to increased sales, provide a convincing argument for manufacturing companies to enter foreign markets are:

• The "global marketplace" is no longer a buzz word, it is reality. Few manufacturers today are unaffected by foreign competition. The very real choice manufacturers must face is to attack foreign competitors in their domestic market or wait for them to invade yours.
• Manufacturers prepared to sell and support emerging markets will obtain dominant market position. The search for low cost labor will have negative long-term consequences for manufacturing in the current industrialized nations. Those companies that fail to recognize and respond to this trend will suffer.
• Manufacturers participating in overseas markets are more aware of foreign manufacturing advancements, new product developments, advanced technologies and economic issues that impact their business.

Industrial distributors share many of the issues faced by manufacturers. Large multinational corporations continue to expand their sphere of influence, bringing along the tier one and two suppliers. The opportunity for current distributors to support manufacturing in foreign lands is often welcomed. Existing distribution in emerging markets is typically not prepared to meet the needs of these sophisticated users. Distributors prepared to overcome their fears and take advantage of this situation will take a big step in securing their future.