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ut they were willing to make the small lots heneeded. Overseas manufacturers wanted muchbigger orders. “I think it’s true that Americans aregreat at coming up with new ideas and solvingproblems. Asia will continue to have an advantagemaking certain kinds of products. That’s kind ofthe global division of labor.”The SolutionWhen Cecil was looking for his first internationalsales, he was advised to try trade shows. He foundone catering to motorcycles and equipment. Oneof the best is a motorcycle show in Milan, Italy,called EICMA. Cecil has been to the show for thelast 3 years and has come away with distributoragreements every time. He said: “We exhibit in theU.S. Pavilion, and there we meet buyers from allover Europe and many other places. We meet themface-to-face; they can see, feel, and learn aboutour products; and we can learn about their needs.”Cecil also makes full use of government exportassistance agencies. About this assistance hesays: “I couldn’t have done it with without them.This is my first business. I’ve been a journalist,an ad copywriter, and a marketer. I’ve nevermanufactured anything. As I got started, our localSmall Business Development Center helped melearn how to actually run a business. I still meetwith one of the counselors every month toget advice.”The U.S. Small Business Administration, whichhelps support the centers in Oregon andthroughout the country, provides a workingcapital loan guarantee. “They came through whenwe couldn’t get a commercial loan from any bank.”The state of Oregon was a big help through theBusiness Oregon program. They helped Cecilapply for and get a STEP grant, which partlycovered travel to the trade show in Italy and toone in Sweden. In addition, the U.S. CommercialService in Portland, Oregon, connected Cecil withCommercial Officers and staff supporting the U.S.Pavilion in Milan. Cecil said: “The U.S. CommercialService has provided great market data andseminars on export mechanics. And governmentagencies work together to help small businesseslike mine. They are invaluable, top notch.”Lessons LearnedCecil has found that free trade agreements havebeen very helpful in making his products morecompetitive in those 20 countries that haveagreements with the United States. One benefitof the agreement is that they lower or eliminatealtogether import duty rates on productsthat meet the rules of origin of the particularagreement. This is an advantage of makingthe product in the United States. Lower dutyrates reduce costs to consumers, making thoseimported products more attractive. Distributorstell Cecil that his product is at the high end of themarket because of product costs and shipping. Soany way he can shave costs helps offset the pricingdisadvantage. He said the “Made in the USA”brand is perhaps worth a 10 percent premiumfor his type of product. So he has to rely on everyadvantage in addition to competing on quality,innovation, and service.So important are his international sales that hevows to never abandon his international markets,no matter how much the domestic market grows.“We added a full-time employee in January, andwe plan to hire more seasonal workers. I feel reallygood about creating jobs. This part of Oregonwas hard hit by the recession. Next, I want toprovide a health benefit to my employees. Allof us have dependents. The new healthcare law(the Affordable Care Act) will help me provide thebenefit. I really look forward to doing it.”Success Story: Giant Loop167