MDCP Sustainability AMT Shanghai Service Center
The Association for Manufacturing Technology (AMT) leveraged support from ITA’s Market Development Cooperator Program (MDCP) to open the Shanghai Technology Center (STC) in its former location. The STC allows U.S. firms to demonstrate what their technology is capable of doing. AMT members can also use the STC to establish parts and technical service capabilities in-country for their clients.
A Successful Legacy and Sustainable Commitment
AMT’s STC is a premier example of how an engaged trade association can leverage a public-private partnership to help its members compete internationally. And the STC has inspired AMT technical and service initiatives in other parts of the world. These include Mexico, Brazil, and India.
The Key to Helping U.S. Manufacturing Technology Firms to Compete in China
As China has become a manufacturing powerhouse, demand there for machine tools and other manufacturing technology products has soared. Large U.S. manufacturing-technology companies have been able to get into the market and establish themselves. For most smaller firms, the challenges of selling into such a large market abroad is more daunting.
Use of the showroom for training, technical seminars, and live demonstrations is not the only benefit to setting up at STC. U.S. firms can warehouse machines in China without having to return them to the United States. STC is located in a free trade zone. It is not until a company sells a demo machine that it has to pay import duties and taxes.
STC also helps participating companies with field service. The firms can start by training an STC technician to service their machines, and STC can advise participating U.S. firms on hiring their own technicians.
U.S. firms can also reserve STC office space short-term or long-term for local employees. STC’s Market Access and Sales Service (MASS) allows firms to get market intelligence and qualified sales leads. U.S. firms can arrange customer meetings at STC as well.
Project Description:
- U.S. Industry Promoted: Machine tools & other manufacturing technology
- Establish the Shanghai Technology and Service Center (STC) near Shanghai
- Recruit U.S. firms to demonstrate manufacturing solutions at STC
- Help firms to base field engineers and warehouse parts from STC
- Help U.S. firms to “graduate” from STC to their own technology and service support centers
- Exports generated: $23,110,997
- Exports per dollar of award: $103
Scores of U.S. Firms Now Have Their Own China Presence
STC continues to be a great venue where U.S. firms can showcase their machines and other manufacturing-technology products. Perhaps a more significant measure of success is who is no longer warehousing parts and dispatching field service technicians from STC. AMT’s policy of encouraging U.S. firms to get their own physical presence apart from STC has been effective.
Scores of U.S. firms have “graduated” from STC and established their own facilities for parts, service, and/or marketing, administration and final assembly. A lot of these firms with newly-established in-country presence now do product demonstrations at their own facility.
Some continue to demo at STC to take advantage of its location in a free trade zone. Most continue to take advantage of the many services STC continues to offer U.S. firms in China. The difference is that these firms are now much more independent and confident about successfully doing business in China.