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Greater Lansing Goes Global
This column will highlight successful Greater Lansing businesses involved in various aspects of global trade. Each month an international company will be featured, sharing challenges, benefits and big-picture issues, along with advice or references to resources that have proved valuable along their journey to the global marketplace.
leaders must be extremely creative to find growth opportunities and determine what strategies should be adopted now to best position their companies for the future.
Diversification has been a popular theme pursued by hundreds of Michigan companies that found themselves overly dependent upon the once-profitable automotive industry. Going global is a form of diversification that takes a well- planned and executed strategy, one that usually requires significant resources.
Unfortunately, not all companies are currently in a position to explore the international option. But resourceful business leaders will find a path that leads to new sources of revenue—or die trying.
The insights shared by Greater Lansing’s international business leaders in this column are meant to inspire you and encourage you to think beyond our borders and consider taking your company global—all while introducing you to private and public resources in the region that can support your international efforts.
This month we sat down with Patrick Regan, vice president of sales and marketing at Plas-Labs, to hear what prompted them to go global and what it took to establish Plas-Labs as an international company.
Case: What does Plas-Labs do?
Regan: We are a family-owned operation, started by my father, David Regan, 42 years ago. Plas-Labs manufactures isolation and containment “glove boxes” for scientific research. These units protect the user from harmful chemicals or biological hazards, or can protect a test subject from external elements. We call them glove boxes because many of them have thick rubber gloves that allow you to reach into the box to move objects around inside the chamber without being exposed to harmful materials.
Case: What event made you realize it was time to go global?
Regan: I’d like to say it was intentional and strategic, but really we somewhat stumbled onto the opportunity. In 1993 we were exhibiting at one of the largest trade shows in the United States, and one of our distributors had a tight relationship with a large European distributor. They came by our booth and looked at the Plas-Lab products. They were impressed with what they saw and requested that they be able to carry our products to sell them throughout Europe.
Case: Once you made that decision, what did it take to get that first international order?
Regan: We provided the European distributor with all the photos and necessary information to get our products listed in their sales catalog. It was more difficult back then, but now it’s much easier sending those types of documents over the Internet. Even though we were new into the international industry, we handled it like any domestic order. They told us what products they wanted, we manufactured them, completed the customs paperwork, and shipped it.
Case: In how many countries are you selling to now? Do you use distributors or have sales offices?
Regan: We currently do not have any foreign sales offices, but Plas-Labs has more than 100 distributors worldwide. There are some countries with multiple distributors, as we don’t provide exclusivity to any of our distributors—although they usually ask for it.
Case: What percentage of overall sales comes from international orders?
Regan: It varies year to year, but usually international sales make up about 30 to 35 percent of our total annual revenue.
Case: What added resources and expenses are required to establish and maintain your international business?
Regan: It takes a dedicated employee who doesn’t mind traveling around the world. I am the primary international salesperson, but my father also handles some of our international business. We work around the globe with distributors and attend two to three trade shows to represent Plas-Labs.
Case: How did you educate yourself along the learning curve—did you attend classes or hire a consultant?
Regan: We’ve been doing this for 15 to 20 years and honestly, we simply learned as we went along. While I have a college degree, we didn’t attend special training or hire any consultants; we just did it.
Case: How does Port Lansing benefit Plas-Labs?
Regan: Port Lansing will be a wonderful benefit for Plas-Labs because it is just three to four miles away. In the past we’ve had shipments sent back to us from Chicago to change documentation and then ship it right back Chicago. Those problems are costly and extend lead times. Port Lansing will give us much quicker lead times and reduce costs for our customers. We can develop close relationships with companies and the customs officers out of Port Lansing so if issues arise, we can make a phone call or short drive to get them resolved on the spot.
Case: What big plans does Plas-Labs have for 2010 and beyond?
Regan: We are always looking to expand the company worldwide. We have to do it. We will always maintain manufacturing here and don’t have plans to open anything overseas at this point, and will continue to add distributors if they meet our high standards and are a good fit for us. As far as next steps, we’d like to translate our website into different languages so it is more marketable to other countries.
Case: What advice would you give to a company just getting into exporting?
Regan: Just do it. International business is operated by human beings that put their pants on the same way we do. Regardless of where they are from, people laugh, smile and want to make money just like we do. It’s not as mysterious as people make it out to be. The trade show market worked out very well and gave us exposure to international distributors that have proven to be good business partners. So I would encourage people to just get out there and do it.
Featured Company: Plas-Labs
International Expertise: Export to more than 100 distributors worldwide
Representative: Patrick Regan, VP of Sales & Marketing
Products/Services: Manufacture isolation & containment chambers
Revenues from
International Sales: 30 to 35 percent of overall annual sales
Company Info: 401 E. North St., Lansing
1-800-866-7527
www.plas-labs.com
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Brent Case is the director of Foreign Trade Zone No. 275 and international market development at the Lansing Regional Chamber of Commerce. In this role, Case works with the Capital Region Airport Authority to increase the amount of global commerce being conducted in the Greater Lansing area. |
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