Going global: three Indiana manufacturers find international markets with the help of federal and state agencies.

• Author: Kronemyer, Bob
• Position: International Business

Thermwood Corp. Hightech and international sales go hand-in-hand at Thermwood Corp., a manufacturer of computerized machine tool control systems. "Right now, exports comprise about $5 million or 23 percent of overall sales," says Jan Olinger, international account manager. "Every year we grow internationally Around 1997, we opened Thermwood Europe in England." Besides a strong European presence, machines can be found in Australia, New Zealand and Israel, plus Canada and Mexico.

"Our large machines cut and mold materials by a computer numerically controlled (CNC) router," Olinger explains. "They are used by other manufacturers to produce parts. Our biggest markets air woodworking, aerospace and plastics manufacturers." Machines range in price front $80,000 to $500,000.

Located about 40 miles east of Evansville in Dale, Thermwood started in 1969 and has about 120 employees "We're always looking for new markets," Olinger says. "But every market that we sell into must be supported by a dealer of some sort. We don't sell and walk away. We want each market to mature to a point where it is fairly self-sufficient." Within five years, the company hopes global sales will reach 30 percent.

Like other Hoosier businesses seeking to expand internationally; Thermwood has used the Gold Key program from the U.S. Department of Commerce to find additional dealers. "Several foreign offices operated by either the state or the US Department of Commerce have personally escorted me to several potential dealerships who have expressed interest in representing our equipment," he says.

"The challenge is always trying to find a good, reputable dealer," Olinger stresses. "It can be a long, drawn-out process. You should talk to some of the potential dealer's customers. The reality is that we have appointed dealers who have not represented us well. This has created problems. You're looking for an extension of your company that represents you well throughout the world."

Furthermore, it is important to carefully evaluate the acceptance potential of a particular product in an individual country. "We thought we could go into Europe with our product because we were very competitive in pricing," Olinger says. "However, we discovered that the competition was a lot stiffer than we imagined. We did not research the market as well as we could. Make sure that your product fits into the market. Fortunately, ours did."

A business may also need to modify an existing product sold...