Local to Global in 5 Years

Midwest Rubber Shares Exporting Story

Ross Anderson, global director of operations at Plymouth-based Midwest Rubber, says companies will improve their export potential if they embrace the culture of the target country while maintaining their company's values.

Anderson was one of three executives who shared their exporting experiences at "Exporting in 2012: The Practices of Profitable Companies," an Enterprise Minnesota event on Aug. 22. Other speakers represented Mactech of Red Wing, which provides on-site equipment for the petro-chemical, pulp and paper, power generation and ship building industries and Ideal Aerosmith of East Grand Forks, manufacturer of precision motion simulation test systems for the military and aerospace industries.

Midwest Rubber's revenues have doubled since it started exporting five years ago and exporting now makes up about 25 percent of its revenues. Exporting has resulted in new customers, new suppliers and new product lines in Asia, Europe and North America.

Anderson says doing business in China is more about relationships than business. "You have to go there and live and breathe it. You have to try the food and meet the people.You have to meet with potential customers so you understand what doing business is like in their country."

Within two years of opening a small office in Shanghai, Midwest Rubber's visibility grew, and it eventually hired 22 employees. Anderson, who lived in China for more than four years, worked hard to blend the two cultures to improve business. He taught employees and their families how to ski and he helped an employee's children practice English. Employees practiced yoga, a common activity in China, and they grilled hamburgers at a barbecue as team-building exercises. "These are examples of Guanxi (gwan-shee) in China. An 'exchange of favors,' which is paramount to doing business there. You help them and they help you. If you don't help them, they won't help you. It builds trust and long-term relationships," he says.

Anderson stresses that while manufacturers should fit into the country's culture they shouldn't forgo their company values. "If you just try to fit in with their culture, you're not going to do as well. Remember, it's their culture, your values. Our Midwest Rubber value to the Chinese market is our unique business knowledge, expertise and well-made products. We've figured out how to fit our business values that made us strong here in the U.S. into their culture in a way they can understand. If you can find that balance you have a chance of selling your products, wherever you are."

All but one of Midwest Rubber's 22 employees in China are Chinese. The company employs 100 people globally.

The company's revenue in China is $2 million, compared to its $20 million overall revenue. "A lot of that growth happened here in the U.S.," says Anderson. "Your headquarters should grow too when you export."

Enterprise Minnesota's "Global Market Strategy" consulting services helps manufacturers enter or expand in global markets. For more information on Midwest Rubber's exporting, contact Anderson at rossa@midwestrubber.com. To see Anderson's presentation from the Aug. 22 Business Event, click here.

Lean Product Development: Getting Highly Manufacturable Products to Market 

Thursday, Sept. 6, 2012
8-11 am
Connexus Energy
14601 Ramsey Blvd
Ramsey, MN
Cost: $79

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What to Expect: 

Need to find a way to bring better products to market faster and more efficiently? Optimizing workflow in today's competitive environment means processes need to be fast, efficient and highly effective. Come hear manufacturing executives tell their stories of reduced lead times, improved products at lower costs and profitable business results.

Speakers:

•    Kevin Weiss, Product Line Manager,
     Delkor Systems,
     Circle  Pines, MN
•    Jeff Scholten, General Manager,
     Water Heater Innovations,
     Eagan, MN   
•    Traci Tapani, Co-President
     Wyoming Machine,
     Wyoming, MN 

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