FlenTek Solutions' Early Stage Export Experience
This episode of Export Nation, features FlenTek Solutions, a company that supplies key components as replacement parts for several industries, including construction, marine, food and beverage, and automotive. We speak with Joseph Lewis, president and CEO of FlenTek Solutions, who discusses the company’s early stage export experience with the U.S. Commercial Service.
Relevant Links
Company Information: FlenTek, Powder Springs, GA, www.flentek.net
Local U.S. Commercial Service Office: U.S. Commercial Service Atlanta
Then the other important question that I ask is, “Who are the end users? Who do you envision seeing in that, partnering with or in that country using your product or service?” then also if they have any ideas as to where they want to go.
With Joseph in particular, we were at first a little stuck because we were thinking about where would be a good place for his products, specifically dealing with the electrification of ground support vehicles like forklifts and also golf carts. Where is there a good market? We were looking at Africa and the Caribbean, or where would there be a good market? I got a little bit stuck in that market research.
What I did was I pulled in our local small business development center to give me more clarification, give us both more clarification as to what would be a good strategy to start with.
In the case of Joseph, I had to get pulled out from the- I don’t know if it’s the saying is the forest from the trees, but you know what I’m trying to say. I had to get pulled out of the detail, and think a little bit more big picture. That’s what SBDC helped me do, and I think also helped Joseph do, is look at where does Joseph have existing linkages and existing ties.
You heard him say he’s been in the industry for about 16, 17 years so he already has long-standing connections, and to leverage those connections. That led us to Canada and Mexico as the low-hanging fruit where he already had some ties. As you heard from Joseph earlier, that the tie particularly in Canada is hopefully coming to fruition.
On another approach is we have the low-hanging fruit on one side, but on the other side, we have the long-term view. Joseph also mentioned, it’s not a sprint, it’s what’s the long-term game. That’s where we’re looking to Africa as the long-term.
That has helped me focus, Joseph has one end where he’s already leveraging his existing resources. My job now is the in-depth market analysis on which specific markets in Africa possess, first, the least amount of risk for Joseph to go into, and then second, to possess a market for him.
We were originally looking at the electrification of the ground support vehicles, but also Joseph reminded me of his other line of business that could potentially be even more lucrative in Africa dealing with the color specifications of food and textiles and other products. That’s where we are with Joseph in that sense.
Other things that we’re doing Joseph is looking at his website. We’re conducting a website globalization review, which means that we’re looking at his website to make sure that it shows to international partners that he’s open for international business. Little things that are little to low-cost or no-cost are things that he can do to his website to make it seem that you’re not just open for US business, but you’re open for international business. My boss here at the USEAC in Atlanta, George Tracy, is doing that for him on his behalf.
Then really, really looking at what are our partnering options, specifically in Africa. Joseph has got the Canada-Mexico side. I’m looking at Africa to see what are some possible markets that he can go into. South Africa is looking like a big contender, but I know that there are other low-risk opportunities that we can explore.
[00:14:26] Derrick: You mentioned risk. Talk about that a little bit more, Heather. Do you feel like every country has its own particular risk, and perhaps there are few countries that are- in terms of US exporting to those countries, do you feel like there are countries that pose less risk to US exporters?
[00:14:49] Heather: When we look at risk— This is a project that I’m really passionate about. I have previous experience living and working in Africa. When I thought about US businesses, my main question was why aren’t US businesses going into Africa? Talking with my boss and talking with Joseph, its helping US businesses understand what are some of the risks. If they know what the risks are, they can plan accordingly. Joseph does not like to be taken by surprise. If we can give them a full picture of what they’re walking into, they’re more likely to entertain going into those markets.
Stuff like price sensitivity, corruption on different levels, institutions that may be stable or unstable directly affecting the business environment, critical infrastructure risks, such as roads, electricity, transportation in the country, and then also misconceptions and stereotypes about what doing business in Africa looks like and what it means, and treating all of Africa as one giant monolith, when there are specific different markets in different countries that you can tap into.
Other thing is export transaction risk, and buyer risk, and political risk that we know of that the XM covers. Then the last thing that I look at, Derrick, is what makes a particular country in Africa legitimately a good place to do business. Is it an emerging economy? Do they have some protections for businesses in place? What does the market look like for that specific product or service like Joseph to enter into? Then how welcoming is that environment for US businesses?
Usually, there is a need for US products. It’s just, how do we make the connection between the US businesses and the African partners, and how do we make it stick and connect to last as a long-term relationship.
[00:17:01] Derrick: Segueing into that, what are the key characteristics your company looks for in partners or prospective clients overseas?
[00:17:12] Joseph: The biggest one is, honestly, it’s hard to work with folks if you guys don’t have a common foundation which you agree on. We look at that and we look at also being able to be responsive. If a customer is going to want us to jump through hoops, and we will do that, but we’d also want them to do the same thing in regards to paying us. The biggest thing would be, if you want to say, integrity of the business as well as them following through a narrative. The probably additional part is for both of us to truly understand the culture of each other’s companies because US companies operate one way, companies in other countries have another culture that may not necessarily fit right with you.
[00:18:13] Derrick: Taking it from there, Heather, what services do you typically recommend to companies in this space?
[00:18:21] Heather: Definitely the international partner search and, with COVID, the virtual introductions. That’s what, moving for Joseph, he already did that with Canada. He already did his own virtual introductions. For the spaces where he does not know people, that’s what I’m working towards.
Joseph is also very cautious, as we all are, during COVID and the virtual introductions in the meantime, in lieu of a gold key service where Joseph would actually go to South Africa, for instance, and meet with partners in-person. That’s on the back burner right now because of COVID.
The virtual introductions would be a good starter to start the conversation so that when things open up, we get our vaccines, the world is moving back towards a new normal without COVID, hopefully, that he has laid that groundwork already and did not lose time making those connections because of COVID.
That’s where I see the services that USCS can provide for Joseph is definitely that international partner search virtual introductions.
[00:19:39] Derrick: That makes sense. To you, Joseph, just a few more questions and we’ll wrap up. what pieces of advice would you share that will be helpful to other companies looking to export?
[00:19:56] Joseph: One thing is that, don’t believe the hype that they’re saying that it’s easy because if it was easy, everybody would be doing it. I would take looking at exporting just like any other business that you’re dealing with in the US. If you don’t have the right market and the right message, it’s not going to work. You also got to look at the same processes as far as making sure you understand what that customer needs as well as understanding the culture that’s there. Then again, at the end, making sure you have mechanisms so that you can get paid for your services because collecting in other countries may not be as easy or as you think in the US.
[00:20:45] Derrick: What about you, Heather? What do you normally tell clients?
[00:20:49 ] Heather: I tell clients that think of the U.S. Commercial Service as your extended team. I know I’m not a FlenTek employee, but I feel I’m an honorary FlenTek employee [chuckles] because I took the time, early on, to understand what Joseph’s goals were, and also what his specific products and services meant. That, I think, is invaluable for any commercial officer or trade specialists or commercial specialist is to definitely take the time too to understand.
On the flip side for the businesses, take the time to really understand that question, “What is your competitive advantage?” and be able to explain that very clearly and succinctly, and to have a website that clearly says that, what you can offer that differentiates you from the rest of the pack.
The other thing I would say is patience. Exporting is not for a person who wants to see immediate results. Maybe in some extreme cases, there could be a sale that turns around in a week or so, but that’s not the norm. To have the patience to help to understand what the process is, to be open to learning the process, and to also lean on the commercial service and our networks both here in the United States and abroad to help get you to the right people.
We ask a lot of questions. I’ve been on a lot of calls with trade specialists in other countries. It’s like they’re interviewing the client because they want to know all about the product or the service so that they can, in turn, explain that product or service to potential partners, and be the people on the ground that speaking the truth about that company.
Just some patience because you might have the same kind of meeting over and over again in different markets, but just to be patient with us because it’s all for your benefit too in order to understand so that we can help you make those connections and those partnerships.
[00:23:15] Derrick: Heather, before I close with Joseph, is there a team related to FlenTek?
[00:23:20] Heather: There’s the Advanced Manufacturing Global Team.
[00:23:23] Derrick: Do you know if there’s anything coming up for that team?
[00:23:26] Heather: Yes. The Advanced Manufacturing Global Team is in the process of doing a couple of coffee chats starting in late April and going through the rest of the fiscal year, so until the end of September, and is focusing on the Asia market.
I’m actually leading coordinating the coffee chats for Southeast Asia. I wanted to get a little bit more familiar with the Southeast Asia market for various reasons, and also to make sure I bring that knowledge and expertise to clients. I volunteered to coordinate those coffee chats dealing with Thailand, Vietnam, the Philippines, Malaysia, Indonesia. I think that’s it. Yes, with those countries.
[00:24:15] Derrick: Sure. We really appreciate you, having you on, for certain. Tell us where people can find you if they’re trying to connect with you.
[00:24:25] Joseph: Yes, we can be contacted either through our email sales@flentek.net. That’s F-L-E-N-T-E-K.net or you can call us at 678-567-9563, or again you can go to our website at www.flentek.net.
[00:24:49] Derrick: This podcast is intended to provide information that may be of assistance to US companies. Statements made by Export Nation podcast guests reflect the views and opinions of that individual. This podcast does not constitute an endorsement by the U.S. Commercial Service of the individual, his or her employer, or affiliated entity, the specific information provided, resources mentioned, or products or services endorsed or offered by that individual and his or her employer or affiliated entity.
The U.S. Commercial Service assumes no responsibility for the accuracy, completeness, or timeliness of the information provided by the guest, or for the decisions made and reliance on any information provided by the guest in this podcast. The information provided in this podcast does not constitute legal advice.
Thank you for listening to this episode of Export Nation brought to you by the U.S. Commercial Service. For more information on how you can get started exporting, please visit www.trade.gov.
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