Hayes Manufacturing

Hayes Manufacturing’s Path to Confident Exporting

Goal (2016): Diversification across markets with a focus on international sales

• We were letting our competition have all the sales outside the U.S.

Initial Discussion and Concerns: • We know nothing about exporting, where do we start? • How can we protect our intellectual property? • How do we find reputable distributors? • How will we negotiate payment terms?• What recourse do we have for non-payment?• Who organizes the shipping and pays for the freight? • How can we maintain export compliance?

Current State 2021

• Year to date shipments to 24 countries• Export sales projection for 2021: $1 million • Exclusive distributors in India, Brazil, the United Kingdom, and China

ResourcesUS Department of Commerce

• Fact-finding

Michigan Economic Development Corporation International Trade Assistance

• Market entry strategy• Access to six international trade centers• Grants• Matchmaking Resources (vetting potential

distributors/customers)• Customized market research• Foreign company background checks• Trade show and mission assistance• Translation services• Referrals/introductions to EXIM, SBA, International Trade

Administration• Potential introductions to companies who can offer advice

and best practices

EXIM Bank• Go-to resource for best practices • Brokers have useful insights and expertise• Knowledgeable about risks by country• Accounts Receivable Insurance (confidence booster)

LR International (Hayes Freight Forwarder)• Exporting/Importing Compliance Training• Full-service logistics and consulting service provider

Van Andel Global Trade Center (Grand Valley State University)• How-to Guidebooks• In-person training (with membership)• International Job Board

Wisconsin Credit Association• International Credit Reports

Intellectual Property Attorney• Review the risks for each prospective country• Recommendations for best practices

Why You Should Export

95% of the world’s buying power resides outside the U.S.

Companies that export are 17% more profitable, worth more, and achieve more efficient operations

Exporting smooths seasonality

EXPORTING MYTHS

My domestic market is good, but I don’t need to export.1

Market stability can be temporary, global sales are necessary for long term success.

My business is too small.2

42% of small business exporters have fewer than 19 employees.

3 Exporting is too risky – what if I don’t get paid?

There are solutions that protect against nonpayment by foreign buyers.

4 Getting started is difficult.

Call us—we’ll help you get started.

WHO WE AREEXIM Bank is a U.S. federal government agency

Mission: support U.S. jobs through growth in U.S. exports

Established in 1934

Headquartered in Washington, D.C.

12 Regional Offices nationwide

Supports all U.S.-based companies who export

Sales Tool:

Be competitive by offering open account credit terms to foreign buyers

Risk Prevention:

Protect against nonpayment by foreign buyers due to commercial risks and political risks

Generate Cash Flow:

Accounts receivable from exportsales may be used as collateral to access working capital

Policies can cover a single buyer, some of your foreign buyers, or your entire export portfolio

EXPORT CREDITINSURANCE

An insurance policy covering receivables generated from export salesthat protects against nonpayment by foreign buyers

Commercial:

Insolvency

Political:

Bankruptcy

ProtractedDefault

War, revolution, insurrection

Currency transfer risk

Cancellation of import or export license

RISKS COVERED

Disputes with the buyer are not covered.

• Must have international capabilities

• L/C processing• FX services, multicurrency

accounts

PARTNERS & VENDORS

Commercial Banker

• Must have knowledge of international business

• Set up IC-DSC when export volume warrants

Accountant

Needed for International Growth:

• Set up foreign distributor dealer agreements

• Assist with practices to protect against FCPA

Attorney

• Expert in trade credit insurance

• Independent, represents multiple carriers so will grow with you

Insurance Broker

• Ensures you have control of documentation to comply with credit insurance or L/C

• Basic export compliance assistance

Freight Forwarder

• Assesses local markets for your product

• Finds potential foreign buyers for your product

Commercial Service

Ursula.Wegrzynowicz@exim.gov(312) 343-0342

Ursula WegrzynowiczBroker Account Manager

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