Small manufacturers can successfully go global, by focusing on three key opportunities: sales, production, and procurement. Yet only 46% even have a global strategy.

Prepared by The MPI Group and MAGNET

The United States is a huge market — and offers domestic SMEs a familiar and comfortable sales destination.

But big as it is, it only represents a third of manufactured goods consumption on the planet.[1]

That’s a problem for SMEs, since only 46% even have a global strategy (46%).[2]

SMEs can successfully go global, by focusing on three key opportunities:

  • Sales: There are markets for your products outside the United States, and you don’t need to move there to tap them. Find a trusted distributor or partner with local experience, and craft a deal that gets your goods into foreign markets while protecting your intellectual property and brand.
  • Production: It may seem overwhelming, but the best global option for your company may be an operation abroad. Where are your biggest customers located around the world — or planning to expand? Would they like to see your facility next door? Can they help you set up shop?
  • Procurement: Most SMEs buy goods and services in the United States that could be sourced abroad. You won’t want to procure everything (especially critical components) overseas, but you should understand your options. Which non-core components, materials, or services could be sourced more cost-effectively abroad?

The key is getting started: Identify the global opportunities that best suit your company and products, and then rigorously assess the reality and profitability of these options, perhaps with help of organizations such as MAGNET, the U.S. Export Assistance Center,[3] or the Manufacturers Compliance Institute-Global.[4]

The world is waiting for you. Get going!

 

[1] 20 Facts About Manufacturing, National Association of Manufacturers.       http://www.nam.org/Newsroom/Top-20-Facts-About-Manufacturing/#sthash.oneOqfyc.dpuf
[2] Next Generation Manufacturing Study, The MPI Group.
[3] U.S. Small Business Administration. SBA.gov
[4] National Association of Manufacturers.

 

© 2017 The MPI Group