Foreign trade helped by Mohawk Valley Group

UTICA--The death of U.S. Commerce Secretary Ron Brown in a plane crash April 3 while on a trade mission to Bosnia turned a spotlight on the government's efforts to boost American exports.

Some local companies, however, doubt that they need the assistance of Uncle Sam. Instead, networking with local companies who already export and attending trade shows give them the best opportunity to break into the overseas market.

Local businesses also get reliable advice from the Mohawk Valley Export Assistance Partnership, which is based at Mohawk Valley Community College.

"I think the U.S. Department of Commerce and NAFTA (North American Free Trade Agreement) are useless," asserts Robert Kelly, director of sales and marketing for EX. Matt Brewing Co. "They're political. Look at the situation with

exporting to

Canada. You would have to pay someone six figures to sell your beer. They protect their home industries by levying obscene amounts of taxes

to discourage imports

."

Networking is vital

Kelly claims networking is the answer. "You have to keep your ears open and call people and let them know you're in business," he explains.

For example, Kelly picked up a can of Krakus ham, found the importer's name on the label, then contacted the importer and asked him directly if he was interested in selling Matt's beer in foreign countries. It worked. In addition, Kelly praises the New York State Department of Agriculture and the state Department of Economic Development for working hard to promote local businesses at trade shows.

Also, Kelly carried the Matt's banner to a major international trade show, the U.S. Food Export Showcase, in Chicago last month, which was attended by some 5,500 buyers. Matt's is a family-owned brewery that produces more than 40 separate beers and, most notably, Saranac Ale.

The chairman of Harza Engineering Co. of Chicago, John Scoville, was killed in the plane crash with Brown. Scoville had recently visited Sichuan, China, to oversee construction of a hydroelectric dam, and was formulating plans for Harza to rebuild war-torn Bosnia. Scoville was also planning a trip to a Harza subsidiary, Harza Northeast of Utica.

"Mr. Scoville, as CEO, has done a lot of foreign work overseas," commented Don Wilhelm, an architect and vice-president of Harza Northeast. "He had been on a lot of trips with Ron Brown to see if Harza could help countries recover from devastation or improve their infrastructures."

Harza Northeast specializes in architectural and building services. All of its current international assignments were the result of "connections" through the Chicago office, including a construction project in Egypt, Wilhelm noted. But Harza Northeast executives are asking themselves how they can do more exporting on their on.

One job leads to another

"We can follow on the coattails of our parent company and follow up other leads...

through

the Mohawk Valley Export Assistance Partnership and Empire State Economic Development," Wilhelm added. 'We can talk to local people and learn from them...attend a lot of events and seminars. We are also talking to our clients about their opportunities

for overseas trade

, like Shearing-Plough Pharmaceuticals in New Jersey. We just completed a job for them. That's an effective way to do it."

Dave Bruno, president of I M G (International Marking Group), has built up an impressive network of international contacts. He has hosted foreign business leaders, attended trade conferences, and been active in the Mohawk Valley Export Assistance Partnership.

"We've been in Utica 20 years, and most of that time we've been exporting, at least 10 years or more," said Bruno, whose small company (10 employees) manufactures marking (permanent inking) machines for use in the aerospace, cutlery, medical, and automobile industries. "We export to Canada, Mexico, South America, Taiwan, mainland China, Singapore, Australia, and we just had our first order from Africa. A lot of overseas companies sought us out. They look to the U.S. for a lot of technology."

DED is for 'little guys'

Bruno said the U.S. Department of Commerce might have a good relationship with multinational companies, but the New York State Department of Economic Development is perfect for "the little guys."

He credits the Mohawk Valley Export Assistance Center for the success of his exporting business. "If you get orders

from overseas

and don't know the ropes, it makes it difficult," Bruno observed. "The Mohawk Valley Assistance Center has seminars. They bring in lawyers and bankers to explain the legal documents."

Arthur Friedberg, a member of the executive board of the Mohawk Valley Trade Council, and an economics professor at Mohawk Valley Community College (MVCC), said his group was formed about 12 years ago by local business leaders interested in promoting international trade.

"In the first rush of enthusiasm. it grew to include about 40 or 5C companies, but now it's settled down to 25. A year ago, in an effort to promote more services, we formed a partnership with the Mohawk Valley Export Assistance Center (also al MVCC). Now we're working with the Small Business Development Center to stage a series of educational activities. We bring in

trade

representatives from other countries, such as Japan, Belgium, Canada, and Poland, and introduce them to local business leaders."

Friedberg continued, "We also have a consultant who deals one-on-one with a particular company and can provide marketing assistance. The Mohawk Valley Export Assistance Center, with the New York State Economic Development Center, can also take people at a reduced cost to trade shows in Canada or Taiwan."

A branch of the New York State Small Business Development Center is located at the SUNY Institute of Technology Utica/Rome. This center, along with SBDCs in Onondaga, Rockland, Niagara, Stony Brook, and Farmingdale, can also advise small-business owners through an International Trade Data Network.

Patricia J. Malin is a freelance writer residing in New Hartford.

Copyright Central New York Business Journal Jun 24, 1996
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