Not So Fast Just because export opportunities exist and appear to be growing, says Honick, doesn’t mean smooth sales to overseas customers. “You just can’t see or find an opportunity and go after it,” he says. “The opportunities are there, but they require tremendous preparation, a large investment, relationship building, and understanding the risks.”
Among the several steps Honick advises his customers take toward successful export ventures is the willingness to take products on the road. “Foreign buyers have a difficult time getting visas to come here and see products and tour manufacturing facilities before they buy,” he says, causing them to instead visit Canada and Scandinavia for building products and housing packages, and U.S. suppliers to travel instead of playing host. “You have to go there [Asia] if you want the business.”
Finding distributors abroad also can be challenging, says Gardella, which has led some U.S. suppliers to open up shop overseas. “For companies not yet exporting, the idea appears very daunting,” he says.
Though it has financed more than $400 billion in export trade since its inception 70 years ago, Ex-Im Bank only works with companies that have established export business, not start-ups. “We get our leads from Commerce,” says Gardella, referring to that agency’s International Trade Administration, which offers non-financial support services to U.S. exporters, established or not (see “Resources,” page 108).
MacDougall, for one, has also found that overseas customers are more demanding than BMD’s domestic buyers, in large part because of the lead time required for shipping from the U.S. and their inability, at least in Japan, to warehouse surplus products sent by mistake. “They’re literally waiting for the products on site, so they need partners who are reliable and take care of mistakes,” he says. “I don’t recommend it to anyone who just wants to dip their toe in the water.”
BMD, by contrast, has positioned itself to continue its success in Japan and throughout Asia, as well as leverage its experience in emerging markets in South America and Eastern Europe. “We’re slowly building the BMD brand and enjoying fairly high margins, but it’s a long-term pursuit,” says MacDougall. “We’re helping the U.S. economy by exporting materials and take pride in the fact that we help build [houses] worldwide.” —Rich Binsacca is a contributing editor for PROSALES.
Exporting Resources Several public and private agencies, trade associations, and consulting groups are available to provide greater insight into building material export opportunities, including the following key contacts:
