Luncheon highlights Mexico export possibilities

Griffin, director of sales and marketing for American Dehydrated Foods Inc., attended in order to develop contacts and exporting strategies for the feed manufacturer, which has been trading in Mexico for more than five years. Nelson, director of the Missouri Trade and Investment Office in Mexico, met with nearly 20 southwest Missouri company representatives individually during his one-day visit.

The luncheon – sponsored by Greater Ozarks International Trade Association, Southwest Area Manufacturers Association and Springfield Area Chamber of Commerce – was part of an increased effort by the Missouri Department of Economic Development to spread the word about the international trade assistance it offers. The department ultimately wants to increase Missouri exports to foreign countries and has been touring the state with recent stops in Ozark and Joplin.

“As we become more of a global society, it’s imperative that we all understand where the trade opportunities are,” said Bill Owen, GOITA president. “There’s nothing that’s going to turn a company off to foreign trade like getting burned. Education’s a very critical component.”

The state began helping private businesses tap foreign markets in 1979 with an office in Germany. Missouri now has offices in England, Mexico, Japan and China.

ADF has used state trade assistance in the past, and Griffin said he’s been pleased with the results.

“They’re ready to jump anytime you work with them,” said Griffin, who used state help to verify the legitimacy of Mexican companies.

Nelson’s office in Monterrey, Mexico, helped facilitate $1.15 billion in Missouri exports to Mexico in 2005, a 22 percent jump from 2004.

Mexico is Missouri’s No. 2 trading partner behind Canada, which bought $4.2 billion of Missouri goods in 2005.

Last year, Missouri companies exported $10.4 billion to 192 countries, a 16 percent increase from 2004. Transportation equipment ($3.5 billion), chemicals ($1.9 billion), machinery ($1 billion) and food and kindred products ($560 million) were Missouri’s top exports. Thirty industries exported more than $1 million each from Missouri.

Nelson said the Mexican market is largely untapped. Hot industries are auto parts, residential construction equipment, energy technology, food processing equipment, intermodal equipment, plastics and telecommunications.

Nelson said manufacturing companies have more exporting opportunities in Mexico than do consumer product companies, though that could change if the Mexican economy improves through job training and education.

“It’s (gotten) easier and easier to access the foreign markets, and I think that will continue,’ Nelson said, noting improved transportation and expanded financing tools. “Missouri is well positioned to take advantage of exports to Mexico.”

There are challenges involved with any international transaction. It’s often harder to identify a customer base from a great distance away, and language issues usually come into play.

Still, the benefits to trade are worth dealing with the hurdles, Nelson said.

“In terms of challenges, yeah, they’re there, but they’re not particularly hard to overcome,” he said. “Many companies have solved these problems and have been able to export successfully.”

Nat Sprague’s BioMetAccess Co. LLC has exported to Mexico for four years. That trade now accounts for about 5 percent of Sprague’s business, selling high-tech security devices.

He said he’s grown more successful in that market through experience. The biggest barrier hasn’t been language – it’s been culture. His Mexican counterparts prefer to develop business relationships more slowly and formally than he’s accustomed to.

“You have to first go down and understand the people and their beautiful culture,” he said. “Once you do that, … you’re friends, and you do business.”[[In-content Ad]]