Its a "global market" and trends are inter-related. But capital spending cycles around the world rarely overlap completely.Positioning your company to sell in strong and weak markets simultaneously, buffers against broad slow downs.
As the US dollar weakens, pricing becomes more attractive for foreigners interested in purchasing proven American technology.They may not need to increase automation to reduce labor costs, but satisfying demand often requires automation. Between January and September of 2007 alone, Indian customers have realized a 12% discount on American technology through currency movement.
Market for used machines opens up opportunities for new ones
Developing markets offer an additional opportunity to support domestic upgrades.While multinationals will often seek new, state-of-the-art equipment regardless of a facility?s location, other producers will see huge improvement with the installation of high quality used equipment.With an accessible ?outlet market? in rapidly growing Indian demand for used machines, American packaging machinery manufacturers can confidently craft creative trade-in proposals for domestic customers to replace 2nd generation machines with the latest most efficient models.
Risks and challenges
Are there risks for a manufacturer to plunge in directly?For sure.These can be effectively mitigated however with a carefully developed plan.Vast cultural differences exist, and even the common language may not readily support communication.Great care must be taken to find partners who are actively engaged and experienced in comparable business in BOTH cultures and countries.Invenio is that partner!Realistic expectations are critical as well.Business will develop slowly and any interested manufacturer must be willing to patiently support that development.
"exporting equipment could be a great insulator against domestic economic downturns. PMMI members recognize that survival often meant looking at selling beyond our US borders."
Packaging Education Forum 2003 Packaging Hall of Fame induction citation of Richard G. Lee, Founder of Econocorp.