I have just spent an enjoyable week in Mexico
at the annual conference of the MDNA (The Machine Dealers National
Association of the USA). It was a useful week in several respects. I was
able to expand my social circle within the US machinery industry,
acquire many new business contacts and practice my ever-improving
Spanish! My overall objective was to find a strategy to exploit the
American market from both a buying and selling point of view.
Historically,
our countries have always been strongly intertwined. Ever since the
descendants of the Pilgrim Fathers voted to speak English rather than
German we have been friends, notwithstanding the small matter of the
Civil War. Certainly for the entirety of the 20th century the USA was our major ally and prime trading partner.
The
growth of the EU and our increasing inclination to face East rather
than West has seen that bond begin to unravel. But cultural and
emotional links are still strong – look how many Americans and Canadians
enthusiastically lined the routes at the Royal Wedding!
When contemplating doing business in the USA,
there is a temptation to be bamboozled by the sheer size and scale of
the market. We think that because they like us, talk a version of the
same language, watch the same movies, eat the same kinds of food, then
the business culture will be the same as well. And yet subtle but
important differences need to be taken into account.
Firstly,
you must take heed of American self-sufficiency and insularity. It used
to be the case that their manufacturers produced primarily for home
consumption. Their great industries, such as automotive, aerospace,
computers, food & drink, produced goods for the people, employed the
people, provided their healthcare, education and pensions, with little
or no outside help.
All of this has changed. The great manufacturing powerhouse that was America is in deep crisis. It all started with the emergence of Germany and Japan after World War Two and has now taken on a new dimension with the growth of China, Brazil and India. Many American citizens have become heavily dependent on the State and the US economy is heavily dependent on imports, not a healthy scenario.
So where are the opportunities for our own industry? Well, for starters, many of our UK
finishing sector OEM companies have been American owned or represent
American manufacturers. Just think Wheelabrator, Westinghouse, Donaldson
Torit and Harper Canning.
The USA relies on its UK subsidiaries and many other independent partners as its gateway to the lucrative European market. In the UK we are on Europe’s
doorstep as a prominent if semi-detached member of the EU. We are
governed by the same rules and regulations, we have reluctantly embraced
metrification. Sometimes we can even talk some of their languages, and
they can certainly talk ours!
From our company’s point of view, the great opportunity is in buying redundant US
finishing machinery from OEM manufacturers with European links in order
to repatriate them for sale in the European market. Due to the downturn
in their manufacturing, they currently have a great deal of equipment
that is surplus to requirements. On this side of the pond, we are
growing again, even if it is from a smaller base, and the European
market is ready and waiting. All we need is reliable partners to assist
with inspection, purchasing and logistics.
Every other UK
company has a different pitch to make. We have a solid and trustworthy
base in engineering, innovation and specialist skills, particularly in
the finishing sector. We can coat, paint, polish, clean and apply our
finishing skills to many American products and prepare them for the
European market.
The opportunities are there, we just need to exploit our already strong relationship to help to bring them to fruition.
