CEO Global Insights

JECO Plastic Products of Plainfield, Indiana, designs and manufactures extremely durable plastic pallets and containers for the printing industry and other sectors.  JECO’s facilities include molding and thermoforming capabilities unique to North America and some of the most sophisticated design capability in the world.

Craig Carson, CEO of JECO Plastic Products

How important has exporting been in getting JECO Plastic Products through the recession?
Exporting has been absolutely critical to pulling through the recession.  About 65 percent of our business comes from abroad, and our main overseas markets are Europe, Mexico, and Canada respectively.  The recession has affected the printing and automotive industries terribly hard, and those are our two main markets.  Overnight our sales went from $7million to $2million. 

Craig Carson of JECO Plastic Products

Why did a German company like Heidelberg buy from you, a U.S. company, rather than from a local supplier?
First, nobody else could do the job that they needed. Heidelberg talked to two German companies and another American company and tried aluminum and steel, but only JECO could provide them with what they needed.  Our company is made up of engineers who are used to doing technical development projects. 

We also have a great understanding of the requirements of international business.  We do business like we are locals:  I speak German fluently, we hired a German engineer and German sales representatives, and all communication with Heidelberg is in German.  You have to deal with that customer as if you’re a local supplier – you have to use their language, open a local bank account, and be familiar with the local format for invoices.  Everything a domestic company in their country has, you have to do.

Also, one thing in particular that U.S. companies can do that sets us apart is that we rapidly adapt.  There is an ingenuity that means an idea will adapt much faster here than anywhere else - an especially fundamental benefit for small companies.  Additionally, you play to your strengths to stay ahead of local competition.  For example, right now our strengths are our technology developments, the exchange rate and low costs that result from competitive pressure. 

How do you deal in overseas markets differently than you would in U.S. markets?  Do you use different strategies or keep anything the same?
Overall, the broad similarity across all the international companies we work with is that they are not American.  That may sound silly, but they all have a different sense of time and different cultures, and you cannot rely on U.S. business experience in working overseas.

In general, all companies abroad require the same thing:   you have to speak the language, you have to act as a local company would, and you have to send technically experienced people who have authority.  Recently because of demands on our time we have been using web conference tools like webcams and PowerPoint.  The time zone is also very important to keep in mind, especially when dealing in countries like China and Japan, because when working with them on their time, you’re basically working 3rd shift, 11pm to 7am.  The climate is very important, for instance when you work with a country in the Southern hemisphere like Brazil, because they are in the opposite season as you are at home in North America.  You also have to match that country’s personality, because each has differing expectations for how a supplier should act.  For example, Japanese companies will expect deference, German companies will expect formality, and UK companies will expect understatement.  Basically, you have to de-emphasize the fact that you are not local. 

Who do you see as your competition?
There are two levels of competition, direct and indirect.  You are always faced with evolving situation and changing potential competitors.  First, you are faced with economics as a competitor.  For instance, our product might be replacing wood, but the price for wood is different in Spain than in Mexico, and in Mexico it might be more cost-efficient for people to just keep buying wood.  Also, your competition in one country might not be as strong in another, and vice versa.  Additionally, you are always competing with the Old Boy Network, whether you’re in the US or overseas.  Finally, regulation also influences competition, because some regulations might be in place specifically to help a certain company or to keep you out of that market.

What trends do you see in your business or in business in general for the next 5 or 10 years?
Globalization, although it has some negative connotations, is a fact of life.  There will be an increased commitment to global relationships, between sales representatives and customers in distribution and sourcing.  This is a quickly evolving situation and those not involved will pay the price.

There is a constant and rapidly growing change in the use of technology.  It’s not just being used in spaceships; it’s putting high-tech elements into low-tech products like our pallets.  One of our projects was to make a pallet that was 150 inches by 54 inches to hold a center-loaded 15-ton roll of paper that would hang off the sides. 

Smaller, technically competent companies can play a greater role in industry today, especially because of the internet.  For example, without knowing who we were or how big we were, a large company that brings in $4 or $5 billion a year found our website and came to us with a problem that they couldn’t have solved otherwise.

The integration of economies is increasing as well.  The changes in currency have immediate effects and are a common daily topic of conversation in our company.

What advice would you give to companies looking to take that first export step?
First, pick a market and get a rough idea of what is required.  Talk to your local Commercial Service office in order to get background materials on the market you picked and on the services that they offer.

Second, the biggest single thing is to really be committed to long term involvement without second thoughts.  I would say to plan for a 5-year time horizon at minimum.  Don’t view your relationship with the Commercial Service as a single transaction – this ongoing relationship is part of the long-term commitment to your exporting efforts. 

After that, talk to the local CS office in the market you are looking into, in order to get an appreciation of the practicality of your venture.  This, in addition to participating in trade missions and attending trade shows, is a part of gaining a basic familiarity with that market.

Next, use the CS to find appropriate local representation in your market, and hone in on the specific market you are looking to get into.   It is important to meet your overseas CS representative in person. 

Finally, you should use the CS Gold Key service to put you and your representative together with the local market.  It is important to establish a personal relationship with your CS contacts in order to start a long term relationship with them, and remember that even after the Gold Key service and introductions, you still have to follow up and get the clients yourself.

With its network of offices across the United States and in more than 80 countries, the U.S. Commercial Service of the U.S. Department of Commerce's International Trade Administration utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. For more information, visit www.export.gov.

The Commercial Service assumes no responsibility for the accuracy, completeness, or timeliness of the interviewee’s responses or for decisions made in reliance on any information provided in this interview. The information, ideas, and opinions expressed in this interview are those of the interviewee, not the Commercial Service. This interview is for informational purposes only and does not constitute an endorsement by the Commercial Service of the interviewee, the interviewee’s company, or its products or services.