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basic-guide-to-exporting_Latest_eg_main_086196

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Success S<strong>to</strong>ryAttila’s Guide <strong>to</strong> ConqueringExport MarketsAdvanced SuperabrasivesAttila Szucs (second from left) accepting thePresident’s “E” Award for Exports, 2013.The CompanyAttila Szucs started Advanced Superabrasivesin Asheville, North Carolina, with one employeein the early 1990s. The company manufacturessuperabrasive grinding wheels for othermanufacturers. Superabrasive grinding wheelscan grind hard materials such as ceramic, glass,quartz, and steel—all materials that need <strong>to</strong> bemanufactured <strong>to</strong> very high <strong>to</strong>lerances. The bestway <strong>to</strong> do that is through grinding. In the yearsthat followed, Szucs grew the domestic market forhis products, then expanded internationally whenthe going got rough in the United States duringthe recession. His company is now a formidableexporter, selling <strong>to</strong> buyers in 16 countries; intestament <strong>to</strong> this success, in 2013 the companyreceived the President’s “E” Award for Exports.The ChallengeThe company started with no sales whatsoeverin 1993. It spent that time doing research anddevelopment and testing <strong>to</strong> improve the product.And slowly but surely it started penetrating thedomestic U.S. market and then started <strong>exporting</strong>in 1995 <strong>to</strong> Canada. In 2002, when the economy<strong>to</strong>ok a hit in the United States, AdvancedSuperabrasives started <strong>to</strong> look at how it coulddiversify <strong>to</strong> protect the company from furthereconomic swings. That was why it looked seriouslyat export markets, specifically China and Brazil.The second challenge was its choices: China andBrazil. Brazil’s duties and taxes are very high.In comparison, China’s duties and taxes arelower but are still more than what the UnitedStates charges. The issue in China is intellectualproperty protection. In addition, the Chinese mak<strong>eg</strong>rinding machines for 10 percent of the AdvancedSuperabrasives price.The SolutionFor entry in<strong>to</strong> Brazil, Szucs contacted the U.S.Commercial Service in Charlotte, North Carolina.Specifically, he used the business matchmakingprogram <strong>to</strong> find buyers. He said, “That program isso helpful that they set everything up for you, and<strong>basic</strong>ally all we had <strong>to</strong> do is show up.” He also usedthe North Carolina Department of Commerce <strong>to</strong>navigate the documentation requirements.56U.S. Commercial Service • A Basic Guide <strong>to</strong> Exporting

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