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| Practical Solution to A Shrinking Market |
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International engagement is the key to future success and competitiveness in the world market for U.S. companies. While the process of going global will indeed present both external and internal challenges; if planned carefully and executed perfectly, the prize will be the difference between incremental bottom-line profits and exponential growth. Albert Einstein once said, “In the middle of every great difficulty lies opportunity,” and with a little creativity knowledge and actionable plan every manufacturer – large or small – has the potential to tap into the enormous opportunity offered by today’s global marketplace. Listen U.S. companies, this is your wake-up call. The opportunity to plan for today’s success passed, and many missed that mark. Fortunately, today is the day to start planning for tomorrow’s growth, and there is still time. However, the old strategies of cost-cutting and down-sizing will not suffice in the decade ahead. Only new methods and new solutions designed to respond to today’s global market will provide future success. By 2020, 80 percent of the world’s consumer base will reside outside U.S. boundaries. These are our/your future customers, future partners, and the future path toward growth. Harness the power of yesterday’s advances in technology and communication and connect, starting today, with this vibrant global market. Take a reality check, reform corporate mindset and embrace the new reality – it’s the only reality available. Then, map out a plan to incorporate new solutions for these new opportunities. Globalization: No Longer a Choice Collectively, Brazil, Russia, India, China, (the BRIC countries), Central Europe and other smaller countries are investing significant resources into higher education - emphasizing mathematics, science and engineering. Also, they are building state-of-the-art infrastructure to manufacture competitively both today and into the future. Furthermore, these countries are making great strides in adapting, and in some cases surpassing, the treasured U.S. model of innovation into their economic institutions and traditions while competing for limited international talent needed to succeed. No longer can U.S. companies afford to sit on the international sidelines and watch. “We’ve had the luxury in the United States to sometimes say we want to engage or that we do not want to engage. We’re still the big kind of indispensable nation,” commented Robert Lane, Chairman and CEO of Deere & Company. While this coveted status is generally considered a strongpoint for the U.S., it has contributed to a great weakness in terms of embracing the new world order. Many smaller countries have learned to start thinking globally well before they launch their business locally. Traditionally, U.S. companies waited until they were successful at home first before pursuing global markets; thereby making the global marketplace an afterthought. What’s Happening in the World Markets “Sometimes when we talk about China we talk about low cost manufacturing and all this. My company is the biggest high-tech venture capital company in the world. We used to make 90 percent of our investments here in the United States. We now make about 50 percent of them in the United States, and about 50 percent of them in India and China. Do not think that China is not innovative. Do not think that they don't have creative ideas. Do not think they're not entrepreneurial. They are and they're copying the best that we have and that is creating universities that look like ours and then an investment environment that is just like ours to create startup companies,” observed Dr. Craig R. Barrett, Chairman of the Board, Intel. Going Global: The Challenge Although it’s tempting for U.S. manufacturers of all sizes to focus and dwell on the many overwhelming issues of the day such as weak economic growth at home, an uncertain credit crisis, a shrinking pool of skill and talent, and increased foreign competition; the fact remains, these issues are not within the control of corporate management. Instead, corporate leadership must take one large step back and look into the global marketplace to discover new opportunities and new avenues to generate future growth. While larger corporations have more resources to invest in exploiting these new opportunities, smaller manufacturers are more agile and readily adapt to change. Regardless of corporate size, global opportunities abound. A common challenge, however, for many U.S. corporations - and manufacturers are no exception - is summed up in one word: mindset. Fueled by our rugged individualistic and isolationist heritage, it’s no surprise that collaboration across international boundaries requires a significant level of reconditioning. The U.S. must move beyond the “us against them” mindset and recognize that a prosperous world translates to more business for U.S. manufacturers – a win-win situation for all. In fact, this changed mindset is necessary for the U.S. to maintain its long-standing and valued leadership in the world. Fortunately, with a large dose of commitment, mindset can be corrected and this challenge can be overcome. How quickly depends on how serious American companies are about joining the global marketplace. As proven in previous decades, with past challenges, if American companies get serious, look out world! |