The purpose of this column series has been to provide a platform for individuals that are involved in international trade to share their stories and experiences with those in the community who have products and services that have export potential, but haven’t taken the leap yet. In my latest interview, I chat with Greg Evans, […]
The purpose of this column series has been to provide a platform for individuals that are involved in international trade to share their stories and experiences with those in the community who have products and services that have export potential, but haven’t taken the leap yet.
In my latest interview, I chat with Greg Evans, president of Indium Corporation, a Clinton–based materials manufacturer and supplier to the global electronics, semiconductor, thermal management, thin-film, and solar markets. The company has about 400 Central New York employees and 700 employees companywide.
LESSELROTH: When and why did Indium look to expand its sales beyond the United States?
EVANS: The Indium Corporation began as an international company, even before we were founded. In the 1920s, William Murray, a Utica–based chemical engineer, became intrigued with reports of a newly discovered element, indium. The only refined indium in the world was in Germany, in the lab of the discoverers. Murray imported a small sample and performed a series of tests and measurements. The results inspired him to start Indium Corp. in 1934.
Initially, our sales base was predominantly in the United States. Over the decades, we increased our international activities, both importing and exporting. By the 1970s, we were doing strong business throughout Europe and Asia. We established sales offices and manufacturing sites in Europe and Asia in the 1990s. Today, we operate 12 facilities, worldwide — in the U.S., the UK, Singapore, Malaysia, South Korea, and China.
Why? As technologists, we’re all about solving challenges. Challenges exist across the globe. We see opportunities to improve customers’ processes and products everywhere. And, customers from around the world approach us for guidance and materials. It’s all about us creating answers to the challenges our customers face today, or will face tomorrow, and then making them aware that we are the best solution. Because technologists and technology companies exist worldwide, we do, too.
LESSELROTH: How did you decide to set up manufacturing plants where you did?
EVANS: This is both a simple and complex topic. The simple part centers around where the opportunities are. Where are the current customers? Where will the next customers appear? Where are the under-serviced areas? The complex aspect involves all the rules and regulations, trying to predict the future, assessing the competition’s strengths, and things like that.
Citing a couple of specific examples, our South Korean facility satisfies a huge demand for recycling indium-tin oxide and resupplying it. Much of the world’s use occurs in South Korea. Easy call. Another case involves our China operations. It supplies materials consumed by electronics assemblers. Much of the world’s electronics are currently produced in China. Again, simple.
LESSELROTH: Why should any company look at the international market as a means of expanding their business?
EVANS: For all the classic reasons used to support international business. These reasons include: increasing your revenue, broadening your customer base, expanding your markets, providing improved service and delivery times to your customers, reducing some costs, enhancing your vision into the marketplace, and putting more stress on your competition.
LESSELROTH: What should a company be prepared to do if it is going to expand internationally?
EVANS: There are many ways to proceed, with a variety of ramifications. Obviously, an organization must be well-versed in laws and regulations, as well as currency management. Businesses also need to carefully manage cross-cultural issues. Above and beyond any language concerns, a company needs to put considerable effort into bridging cultures. The answer is not to homogenize cultures, but to optimize the combinations.
Overall, a lot of education and hustle is required. Some issues are easy to foresee while others pop up and surprise us. Either way, people should be prepared to address problems and obstacles as quickly and thoroughly as possible because another one is sure to be coming down the pike. Don’t be tempted to put band-aids on issues that arise. Applying band-aids doesn’t teach anyone anything, and it doesn’t solve the root problem. Aim to thoroughly understand every situation and to effectively resolve all issues as they arise.
Finally, there is no substitute for travel. We have never regretted sending people abroad to assess or address situations. Progress always proceeds faster when a person is on the scene.
LESSELROTH: How important is it to understand the foreign culture of a country with which you want to do business?
EVANS: This issue is critically important. I recommend that anyone who is serious about international business dedicate themselves to a huge amount of learning.
Ideally, it would be a combination of reading, viewing training videos and documentaries, interviewing experts, and gaining first-hand experience. Additionally, make an effort to teach others about your culture and practices; they are as curious and concerned as you are with theirs. Trust me, it will never end, and should never end.
The first step is to question your question. We don’t use the term, “foreign,” because every behavior or language is native and normal to the people practicing it. And, our way is “foreign” to most of the people on Earth. The term isn’t helpful; it tends to foster an “us versus them” mentality which is rarely productive. And, there is no quicker way to reduce cooperation, partnerships, and friendships than to declare the other party to be “foreign.” I’ve studied examples of great animosity being created when cross-cultural issues are mishandled. I’ve seen cross-cultural misunderstandings, or friction, slow projects by months. These misunderstandings can cause a variety of problems, from simple delays to resentment. This is to be avoided at all costs as it affects virtually all other projects.
That said, there are differences between any two countries or cultures, even within a nation. Just like international business people make efforts to learn about laws and currencies, people would be well-served to put in the effort, to learn, to be curious, to ask questions, to understand, and to experience the ways of others. When a person sees suppliers, customers, and their own employees as all being on the same team, all working for a common outcome, then the notion of being “foreign” disappears. Under those conditions, cooperation, understanding, and teamwork become possible.
Some very good things happen when people show a genuine concern and respect for other cultures. People feel flattered when they see that someone cares and has invested the time and effort to learn about their culture. When one group sees the other group bending and adapting, it encourages that group to do the same.
Mark Lesselroth is founder and principal of Brenner Business Development, an international business-development consultancy focused on helping small- and mid-size businesses in the U.S. explore international opportunities as well as assisting foreign-owned companies gain market entry into the U.S. Contact him at mark@brennerbd.com