S.C. Export Consortium Adds Services for Companies Who Want to Sell Overseas
By Maureen Taylor, Coordinator, Education & Communications South Carolina Export Consortium

International trade continues to be an integral part of South Carolina's economy, and the South Carolina Export Consortium (SCEC) is expanding its services to ensure the trend continues.

Since 1997, the South Carolina Export Consortium has helped more than 600 companies by providing basic export training. Through its partnerships with the University of South Carolina and Clemson University, SCEC is able to offer top-notch market research and technical assistance to its clients.

While the Consortium will continue its core mission of helping companies get off the ground with international trade, it recently launched a new initiative to take companies to the next level.

"International trade can be an intimidating process for many companies," said SCEC Director of Operations Dorette Coetsee. "And while the Consortium's basic research serves as a roadmap for our clients, small companies often lack the in-house resources to follow through on staff's recommendations."

To address this need, the Consortium has launched Trade Advantage, a four-step export development process. Each module serves as a building block to help companies maximize their export potential, whether they are seasoned export veterans or new to market companies. The steps also can act as stand-alone services for companies with specific needs.

A Global Market Analysis is the basis for a company's entry into the international marketplace. At this stage, staff will identify potential markets, assist with product classification, and review trade data and trends to determine growth and demand.

Using information gleaned in the global analysis, a project manager will then conduct Targeted Market Research. Included in the research is an in-depth country-by-country analysis of each target market to include political and economic overview, key economic indicators, risk factors, product specific market requirements, and sales and distribution channel analysis.

After a company has determined which markets it would like to pursue, Consortium staff can assist with Market Opportunities Identification. The right contacts can mean the difference between success or failure, and Consortium staff has built a network of resources to help its clients establish viable contacts in potential markets.

At this stage a client is export ready and its sales staff can initiate Market and Sales Development. For companies that do not have the staff needed to carry out an export market plan, the Consortium can provide the necessary support or help the client establish an on-site export division. Through its network of international representatives and partners, the Consortium can manage market-specific business development initiatives. The Consortium also can assist with international quotations, methods of payment, distribution contracts, and other sales development services.

The Consortium offers a host of import/export services tailored to fit a company's needs, including translation of marketing material, agent-distributor screening, contract negotiation, and product classification. Its full suite of training and seminars includes CE Marking, methods of payment, NAFTA rules of origin, and export pricing strategies.

One of the companies the Consortium is working with under the new model is Circle Environmental of Columbia. The company's founder, Richard Middleton, developed a process to recycle oil absorbents through a process that requires no water, thereby eliminating wastewater discharge liability. Circle Environmental, which won the Governor's Pollution Prevention Award, also manufactures its own line of pads and socks and boons, which are used primarily in the manufacturing industry.

The Consortium conducted market research under a Small Business Development Center Defense Economic Transition Grant and is now assisting Circle Environmental with market entry. Based on the research, Middleton selected Germany, France and the United Kingdom as initial markets.

Middleton will participate in a Midlands International Trade Association (MITA) trade mission to the United Kingdom in early 2005. Coetsee, who will accompany Middleton on the trade mission, has been working closely with the company to arrange business appointments. The Consortium also has connected Middleton with a contact in Liege, Belgium, who is assisting with business meetings.

"Hopefully, after the trade mission I will have a better grasp of where to go," Middleton said. "I am relying on Dorette and others to steer me toward good markets."

On the domestic side, Coetsee referred Middleton to SCMEP. Middleton is examining ways to modify his system for use in the dry cleaning industry with hopes of manufacturing the equipment in South Carolina.

Under a Small Business Administration grant, the Consortium is able to spend more time with individual companies implementing research, identifying markets, and developing business plans. Staff provides on-site consulting and facilitates market penetration through the use of intermediaries in various markets. The Consortium also was recently awarded two federal grants to help with its new export initiatives.

"The partnerships and international relationships the Consortium has fostered is one of its greatest strengths," Coetsee said. "The SBA grant allows the Consortium to fully utilize these relationships by connecting South Carolina companies with overseas contacts."

South Carolina's rural counties will receive export assistance under a U.S. Department of Agriculture Rural Business Enterprise grant. The Consortium is partnering with the Upper Savannah and Santee Lynches Regional Councils of Government to work with companies with less than 50 employees in Abbeville, Edgefield, Greenwood, Laurens, McCormick, Saluda, Lee, Kershaw, Clarendon, and Sumter counties. Exporting has been identified by the COGs as an economic development activity that can help diversify and expand existing small to medium-sized businesses in their areas.

"Diversity is at the heart of economic development, and rural companies in South Carolina represent a huge untapped resource for growth and development," said SCEC Project Manager Greg Hilton. "Many companies have survived because they have a niche product or service that will likely have a niche in foreign markets. This initiative will allow South Carolina companies to take advantage of opportunities in international trade."

For more information on the Export Consortium and its services, visit the Web site at www.scexports.net or call 803-777-8870 or 803-777-4404.

Maureen Taylor is coordinator of education and communications for the South Carolina Export Consortium. She can be reached at 803-356-8964 or maureent@alltel.net.