Small Business Success Stories with Australia FACES OF TRADE ® ★ SMALL BUSINESS SUCCESS STORIES...

TH

E

UN

IT

ED

S

TA

TE

S

CH

AM

BE

R

OF

C

OM

ME

RC

E

★T

RA

DE

RO

OT

S®

Faces of Trade®

Small Business Success Stories

with Australia

A Special Thank You to Our Corporate Sponsors

TradeRoots® also acknowledges assistance for this report from EnterpriseFlorida, the Export-Import Bank, Greater New Orleans, Inc., Greater WacoChamber of Commerce, International Trade Alliance, Jacksonville Chamber of Commerce, Mobile Area Chamber of Commerce, Spokane, and the SmallBusiness Administration.

Report prepared by:Asia Team:

Myron BrilliantJohn Leyden Jr.

TradeRoots® Team:Leslie SchweitzerMichelle SprangMargaret A. FerryOlivia Kuhn-Lloyd

Creative Team:Heidi GioseffiSarah TaylorSooki Moon

Faces of Trade®

Small Business Success Stories

with Australia

”“

”“

”“

”“

This agreement will create new opportunities for America’s workers,

farmers, businesses, and consumers by eliminating barriers in trade

with Australia. Australia is already a major trade and investment

partner of the United States, as well as one of the strongest and most

dependable friends this country has ever had. This agreement will

provide opportunities to further deepen this important relationship for

the mutual benefit of our two nations.

—President George W. Bush

This comprehensive FTA between Australia and the United States

strengthens our close ties and offers new potential by expanding

opportunities for the workers, businesses, consumers, and farmers of

both countries.

—Robert Zoellick, U.S. Trade Representative

When this free trade agreement is completed, we will open a bigger

new market for our manufactured goods and agricultural products

—creating an economic climate that will yield at least $2 billion in

new American manufacturing exports . . . There is great bipartisan

support to get this agreement done now, and we have a unique

opportunity to further strengthen the alliance and relationship

between our two nations.

—Rep. Jennifer Dunn (WA-R-8th)

Australia, a modernized economy with high labor and environmental

standards that already enjoys bipartisan support in Congress, offers

numerous opportunities for U.S. workers and businesses . . . The

agreement also includes landmark protections for U.S. intellectual

property with state of the art protection of digital media.

—Calvin Dooley (CA-D-20th), Ellen Tauscher (CA-D-10th),

and Jim Davis (FL-D-11th)

3

Table of Contents

The U.S.-Australia Free Trade Agreement 4

A Message From Thomas J. Donohue 6

A Message From Charles W. Blunt 7

TradeRoots® Program 8

U.S. Chamber of Commerce Asia Team 9

American Chamber of Commerce in Australia 9

Success Stories 10

Resources for Small Businesses 24

FA

CE

S

OF

T

RA

DE

®★

SM

AL

L

BU

SI

NE

SS

S

UC

CE

SS

S

TO

RI

ES

W

IT

H

AU

ST

RA

LI

A

4

The U.S.–Australia Free Trade AgreementNew Opportunities for U.S. Companies, Workers, and Consumers

O n February 13, 2004, President Bush officiallyinitiated the process for a free trade agreement(FTA) between the United States and Australia.

This historic agreement will dramatically lower tariffs ontrade between the two countries, resulting in tangiblebenefits for U.S. companies and U.S. consumers.

The concerted effort by all involved will result in thecompletion of the U.S.–Australia FTA in a fraction of thetime it usually takes. The U.S. Chamber of Commerce isplaying a key role in advancing the agreement towardfinal passage. In addition to extensive meetings withboth houses of Congress, the Chamber organized aforum on the benefits of the agreement, a congressionalstaff delegation to Australia, and a FTA information touraround the United States by Australian AmbassadorMichael Thawley this spring.

Australia has sought to deepen its already close economicand political relationship with the United States. Thecountry’s policies have been successful in transitioningit from principally an exporter of commodities, mostlyagriculture, to a competitive producer and exporter. Itseeks to increasingly be a high value-addedmanufacturer, services provider, and producer ofadvanced technologies. It is one of the Organizationfor Economic Co-operation and Development’s(OECD) fastest-growing developed economies, whichis in large part attributable to its economic reforms.

Currently, Australia is the United States’ ninth largestexport market, with annual trade in goods and servicesexceeding $28 billion. It has traditionally been a reliabletrading partner, and the United States presentlymaintains a $9 billion trade surplus with it. In addition,

Australian companies employ about 80,000 Americans,and it is estimated that U.S. exports to Australiasupport more than 150,000 U.S. jobs.

The FTA will mean increased opportunities for U.S.manufacturers and U.S. farmers. It will mean morebusiness for U.S. service providers, new protections forU.S. investors, and stronger protection of intellectualproperty (IP). In addition, the agreement represents thenew “gold standard” for bilateral trade agreements andsets a valuable precedent for future multilateral tradeagreements.

Manufacturing

With so much attention focused on U.S. manufacturingin 2004, this agreement will eliminate 99% of Australiantariffs on U.S.-manufactured exports on the first day thetreaty is implemented. This will make it the most front-loaded—in terms of tariff reduction—FTA ever, whichwill have immediate bottom-line benefits for Americanmanufacturers.

Manufactured goods account for 93% of the U.S. totalexports to Australia, and the added benefit to U.S.manufacturers from the elimination of these tariffs hasbeen estimated at $2 billion annually.

U.S. Farmers

American farmers will see similarly rapid and pronouncedbenefits. Once implemented, all U.S. agricultural exportsto Australia, totaling more than $400 million annually, willreceive immediate duty-free access. Both countries havecommitted to work to resolve sanitary and phytosanitarybarriers and to establish a new mechanism for scientificcooperation between the U.S. and Australian authoritiesin order to resolve specific bilateral animal and planthealth issues. Recognizing the concerns of some U.S.agricultural sectors, the agreement will gradually phaseout current U.S. agricultural tariffs over time so that thoseparticular industries will have time to adapt to the newenvironment.

U.S. Service Providers

With so much of the U.S. economy focused on theservices sectors, the comprehensive nature of the

5

FA

CE

S

OF

T

RA

DE

®★

SM

AL

L

BU

SI

NE

SS

S

UC

CE

SS

S

TO

RI

ES

W

IT

H

AU

ST

RA

LI

A

agreement presents tremendous opportunities for U.S.services providers, many of which are small businesses, inAustralia’s market. Whether it is information technology,telecommunications, financial services, express delivery,advertising, wholesaling, or retailing and franchising, thisagreement means more business for U.S. companies.

Investments

The United States and Australia have each enjoyed thebenefits of their historically close economic ties. Theyshare similar legal traditions and a high degree ofconfidence in each other’s market as well. U.S. foreigndirect investment in Australia was $36.3 billion in 2002,and Australian foreign direct investment in the UnitedStates was $24.5 billion during the same period. Theagreement builds on the strength of the relationship. U.S. investors will now enjoy the right to establish,acquire, and operate investments in Australia includingenterprises, debt, concessions, contracts, and IP on anequal footing with local investors and with investors from other countries.

Government Procurement

Another significant area that the FTA addresses is newaccess to Australian government procurementcontracts. U.S. suppliers will now be able to bid oncontracts to supply Australian government ministries,agencies, and departments. These commitments areparticularly important because Australia is one of thefew developed countries that is not party to the WTOAgreement on Government Procurement. The FTA alsorestricts Australia’s use of selective tendering to ensurethat U.S. suppliers have a fair chance to compete forgovernment contracts.

E-Commerce

The FTA addresses a number of issues to help ensurethe continued growth and development of e-commerce.Digital products will receive nondiscriminatory treatmentand will not be subject to customs duties. Moreover, theagreement provides a framework for further cooperationon other e-commerce issues such as facilitating the useof electronic authentication of business transactions andthe mutual recognition of digital certificates forelectronic transactions between both governments.

Pharmaceuticals

The agreement includes common principles for thedelivery of high-quality health care and overall publichealth and recognizes the increasingly vital role thatpharmaceuticals play in maintaining and improvinghealth care. The United States and Australia agree that robust protection of IP is especially critical for the pharmaceutical industry.

Both countries further agreed to the importance oftimely and affordable access to innovativepharmaceuticals and to the adoption of proceduresthat recognize the real value associated with significanttherapeutic pharmaceuticals. Further, the U.S. Foodand Drug Administration and the Australia TherapeuticGoods Administration will work together to expeditethe availability of innovative pharmaceuticals andmedical products.

Textiles and Apparel

U.S. Tariffs on textiles and apparel will be phased outover a 15-year period for all goods that meet the yarn-forward rule of origin, which will have the effect of promoting new opportunities for fiber, fabric, yarn,and apparel manufacturing.

Intellectual Property Protection

Australia and the United States have a long history ofcooperation on the crucial issue of protecting IP.Through the FTA, Australia has agreed to provide eventougher penalties for piracy and counterfeiting of IP. It makes the users of pirated or counterfeited IPcriminally accountable.

The FTA also provides additional protection for U.S.trademarks, such as setting up a system to resolvedisputes involving trademarks used in Internet domainnames. This will be an important step to help preventcyber squatting of high-valued domain names. Theagreement also promotes the development of anonline registration system of trademarks thatincorporates a comprehensive, searchable database,and it provides added protections for copyrighteddigital material and stronger protection enforcement of patents and trade secrets.

6

A Message From Thomas J. Donohue

O n behalf of the hundreds of thousands of small and medium-size enterprises among our 3 million members, theU.S. Chamber of Commerce is pleased to join with the

American Chamber of Commerce in Australia in presenting “Faces ofTrade: Small Business Success Stories with Australia.”

The United States is Australia’s largest source of imports and second-largest export destination. Bilateral trade between the United States and Australia reached more than $28 billion last year, andthe United States enjoys a substantial trade surplus with Australia ofmore than $6 billion. The free trade agreement will further eliminatetrade barriers, lower tariffs, and provide increased market access forAmerican workers, consumers, farmers, and companies. It is anagreement among friends—as Australia is an important economic andsecurity partner for the United States in the Asia-Pacific region.

As strong as America’s ties with Australia are, we have a chance tomake them even stronger through the a free trade agreement. Morethan 99% of U.S. exports of manufactured products to Australia willimmediately become duty free upon passage of the free tradeagreement. This could result in $2 billion per year in increased U.S.exports of manufactured goods. All agricultural tariffs will go to zeroimmediately, totaling more than $400 million. This agreement will alsoimprove market access for a wide range of service areas, includingtelecommunications, financial services, express delivery, distributionservices, audiovisual, and entertainment.

I would like to express my gratitude to the business owners who tookpart in this project. They represent the millions of entrepreneurs whoare busy creating new opportunities and better jobs throughout theUnited States. We are proud to stand by them.

Thomas J. DonohuePresident and CEOU.S. Chamber of Commerce

7

FA

CE

S

OF

T

RA

DE

®★

SM

AL

L

BU

SI

NE

SS

S

UC

CE

SS

S

TO

RI

ES

W

IT

H

AU

ST

RA

LI

A

A Message From Charles W. Blunt

T he American Chamber of Commerce in Australia is proud tosupport this important publication profiling U.S. businesses thatprofit through their participation in the Australian market.

Over the past 30 years, the United States and Australia have developeda booming commercial partnership. Australia continues to offer asophisticated market, impressive economic growth, and the combinationof natural resources and technological prowess that make it a valuedpartner and formidable competitor. The economy completed its 12thconsecutive year of growth in 2003, even after absorbing the effects of arecent farm drought and slackened world demand. And it seems likelyto register growth rates above of the average Organization forEconomic Co-operation and Development (OEDC) countries.

Several fundamentals underpin Australia’s strong economicperformance and make it attractive to U.S. companies:

★ Low inflation rate★ Decline in overall unemployment level★ Government stability and transparency★ The predominant use of English combined with the ability to draw

upon the linguistic capabilities of people from more than 200different language backgrounds

★ A sophisticated transportation and information infrastructure★ Close attention to the personal and physical security of Australian

citizens and businesses

The U.S.-Australian relationship has never been stronger. This is trueacross all of its facets, but particularly on the economic side. TheUnited States remains the largest investor in Australia and has taken adominant share of the information and communications technology,pharmaceutical, energy, defense, and aerospace markets. The U.S.trade surplus with Australia—its second largest such surplus in theworld—remains significant (US $25 billion as of May 2003) and poised to equal or surpass last year’s surplus. Australia looks to theUnited States as its second-largest export destination, following Japan.

AmCham Australia believes that the U.S.-Australia free tradeagreement opens new horizons for commercial links between the twocountries and that the already close business links will expand andstrengthen. Profits and prosperity will flow to all those who seek andembrace the opportunities offered.

Charles W. BluntChief Executive OfficerAmerican Chamber of Commerce in Australia

8

About TradeRoots®

TradeRoots® is the nation’s leading sustained grassroots trade education program dedicated to building supportfor trade in the U.S. Congress and to stopping anti-trade protectionism. The fact is that trade helps Americaand the world grow. Most businesses—small and large—know this. The challenge is to make sure thatWashington, D.C., and the rest of the country know this as well.

The TradeRoots® program

★ shores up and sustains trade coalitions at the grassroots level in congressional districts throughout America,

★ identifies and mobilizes community leaders as pro-trade advocates in each district,★ partners with governors and state leaders to communicate the local benefits of trade,★ tells success stories through local media using a vigorous communications campaign, and ★ provides a one-stop information resource on trade—on and off the Web—for everything from state

and local trade statistics to success stories.

As a part of its commitment to a sustained national trade education campaign,TradeRoots®

★ promotes the use of free trade agreements to increase exports by small and midsize companies through a Market Development Cooperator Program (MDCP) grant from the U.S. Department of Commerce,

★ organizes TradeRoots® International Trade Leadership Programs throughout the country to train chamber leaders in all aspects of international trade,

★ promotes the benefits of fair trade and leads efforts to build support for the removal of global trade barriers, and

★ partners with AmChams throughout the world to promote international trade.

TradeRoots®

1615 H Street, N.W.Washington, D.C. 20062Phone: 202-463-5980Fax: 202-463-3129Web site: www.traderoots.orgE-mail: [email protected]

9

About the U.S. Chamber of Commerce Asia Team and the American Chamber ofCommerce in Australia

U.S. Chamber of Commerce Asia Team

T he Asia Team at the U.S. Chamber of Commerce works actively to seek ways to leverage itsexperiences and network of key relationships to advance U.S. corporate interests. The team helpsU.S. companies competing in Asia by identifying opportunities, facilitating contacts with senior

officials, and effectively advocating important issues to policymakers who can make a difference.

Drawing on the full weight of the U.S. Chamber of Commerce, the Asia team gives voice to the policiesthat benefit American companies and reaches out to top government and corporate officials in ways thatfew organizations can.

Asia Team1615 H Street, N.W.Washington, D.C. 20062Phone: 202-463-5460Fax: 202-463-3137Web site: www.uschamber.com\asiaE-mail: [email protected]

The American Chamber of Commerce in Australia

AmCham Australia’s key objectives are to promote the two-way flow of trade and investments primarilybetween the United States and Australia and to lend practical assistance to Australian interests seeking toenter the U.S. market. AmCham Australia has extensive knowledge of the Australian market, the keypeople, and the alternative sources of critical professional advice, as well as the ability to open doors andintroduce contacts. AmCham works closely with Australian governments and offers a nationwide service toits members, driven by the vital connections between the United States and Australia.

The Chamber’s objectives translate into a broad range of activities and services of real value to members.Its 18 permanent staff members organize Australia’s largest and most diverse program of activities for its1,700 corporate members, with more than 700 events taking place annually across the country.

AmCham AustraliaSuite 4, Gloucester Walk88 Cumberland StreetSydney NSW 2000Phone: +61-2-9241-1907Fax: +61-2-9251-5220Web site: www.amcham.com.auE-mail: [email protected]

FA

CE

S

OF

T

RA

DE

®★

SM

AL

L

BU

SI

NE

SS

S

UC

CE

SS

S

TO

RI

ES

W

IT

H

AU

ST

RA

LI

A

10

Bio-Form Nutritionals USAPoint Pleasant, New Jersey

Theodore J. BrembosPresident and CEOThomas M. WaltersTechnical Directorwww.bio-form.com

B io-Form Nutritionals USA researches anddevelops natural performance-enhancingsupplements for fitness-oriented customers.

Bio-Form’s products are innovative nutritionalsupplements based on scientific research andprinciples that activate the body’s three fundamentalenergy systems.

Bio-Form has been doing business in Australia for fouryears, selling nutritional supplements through retailstores and fitness centers. Approximately 25% of thecompany’s gross sales are due to exports withAustralia. Theodore J. Brembos, president and CEO,says that the company has been successful in the

Australianmarketplace becauseits products areunique and customerdemand is high.Even so, Brembossays that currentduties make itdifficult to competewith local Australianbrands. “Passage of a free tradeagreement withAustralia will allowus to be more pricecompetitive and willresult in a definitiverise in sales. Ourworkers will benefitas a result.”

Correct Craft, Inc. Orlando, Florida

Don BostickDirector, International Affairswww.nautiques.com

C orrect Craft, Inc. manufactures inboard and v-drive powered recreational ski andwakeboard boats. For 79 years, this family-

owned business has provided customers with thefinest inboard boats available.

Correct Craft has been doing business in Australia for10 years, selling inboard and v-drive poweredrecreational ski and wakeboard boats. The companymanufactures the exclusive towboat for the world’slargest water ski/wakeboard tournament, which is heldannually in Melbourne and is attended by more than100,000 spectators. Trade with Australia currentlyrepresents a small percentage of overall sales, but

Industry: Vitamin andNutritional Supplements

Number of U.S. Employees: 7

Years of Involvement inAustralia: 4

Major Product Sold toAustralia: NutritionalSupplements

11

Digital Juice Inc. Ocala, Florida

Jeremy WoodCorporate and International Sales Directorwww.digitaljuice.com

D igital Juice Inc. is the leader in royalty-freeproducts for video editors, presenters, andprint designers. Products include animations,

graphics, video clips, and music for use by businesses,universities, government agencies, and theentertainment industry.

Digital Juice has been doing business in Australia forfour years, providing its entire line of products forvideo editors, graphic designers, and presentationcreators. Exports to Australia have tripled since 2002.

Jeremy Wood,corporate andinternational salesdirector, says,“Although trade withAustralia representsa small percentageof our overallbusiness worldwide,this is an importantmarket for us, onethat is growing anddeveloping rapidly.”Wood attributes thecompany’s success inAustralia to a veryclose partnershipwith a localdistributor and to an increase ininternational movieproduction there.“Anytime the film

and video editing market expands, Digital Juice’sbusiness increases as well.”

Wood says that a free trade agreement with Australiawill help Digital Juice compete with companies fromJapan and the Far East. “We have to price ourproducts low in order to remain competitive. Reducingor eliminating duties will allow us to garner additionalsales while adding to our bottom-line income.”

FA

CE

S

OF

T

RA

DE

®★

SM

AL

L

BU

SI

NE

SS

S

UC

CE

SS

S

TO

RI

ES

W

IT

H

AU

ST

RA

LI

A

Industry: Video Animation



Major Products Sold toAustralia: Video AnimationTools and Stock PhotoshopImages

Don Bostick, director, international affairs, says thatsales have started to blossom in the last year and thatpassage of a freetrade agreement willallow for even greatergrowth. According toBostick, “Much of ourcompetition inAustralia is with localmanufacturers.Eliminating tradebarriers will make usmore competitive inthe marketplace.”

Industry: Boat Manufacturer



Major Products Sold toAustralia: Inboard and V-DrivePowered Recreational Ski andWakeboard Boats

12

The Dwyer Group Inc.Waco, Texas

Donald J. Dwyer Jr.Director of International Operationswww.dwyergroup.com

T he Dwyer Group Inc. provides a variety ofspecialty services internationally through itsservice-based, brand-name franchise

businesses: Rainbow International Restoration &Cleaning, Mr. Rooter, Mr. Electric, Mr. Appliance, GlassDoctor, and Aire Serv. The company provides servicesto approximately 750 franchisees located in theUnited States and Canada, and its international masterlicensees service approximately 240 franchisees in 14other countries. The Dwyer Group also providesservices to an associate company, DreamMaker Bath &Kitchen, whichincludes 134franchisees in theUnited States and 129franchisees throughits master licensees in12 other countries.

The Dwyer Group hasbeen involved ininternational trade withAustralia for 12 years.Its Mr. Electric brandtrades as TXUElectricians out ofMelbourne, providingelectrical repair,maintenance, and installation of electrical componentsfor home and commercial buildings. DreamMaker Bath &Kitchen trades as Worldwide Refinishing Systems, basedout of Sydney, providing remodeling alternatives forbathrooms and kitchens. Donald J. Dwyer Jr., director of international operations, says that the bath andkitchen market could be expanded if a free tradeagreement is passed.

According to Dwyer, “Eliminating foreign tradebarriers with Australia is important to The DwyerGroup because it will reduce the costs associated withimporting our products. Any reduction in tariffs dueto a free trade agreement will allow us to be morecompetitive and subsequently increase our sales.”

Industry: Franchising/Services

Number ofU.S. Employees: 650


Major Products Sold toAustralia: Services andCoating Products and Systemsfor Remodeling Bathrooms andKitchens in Homes andCommercial Buildings

DSI FluidsTyler, Texas

David SundinPresident and CEOwww.directsynthetics.com

D SI Fluids is a family-owned business thatmanufactures and sells the highest-qualitysynthetic lubricants and electrical insulating

fluids, including biodegradable turbine, gear,hydraulic, compressor, and engine oils. Manufacturersaround the world use DSI’s synthetic lubricants toextend the life of the equipment and to lowermaintenance costs.

DSI Fluids has been involved in international tradewith Australia for six years, selling electrical insulatingoils. DSI’s biodegradable products sell well in Australiabecause they meet the important local goal of beingenvironmentally friendly. Approximately 5% of the

company’s gross salesare due to exportswith Australia, andthat percentage willgrow if existing tariffsare reduced oreliminated.

David Sundin,president and CEO,says that a free tradeagreement withAustralia will allowDSI to be morecompetitive withAsian and Europeanmanufacturers. Headds, “When theUnited States entersinto agreements thatreduce trade barriers,this lowers ourcustomers’ net costs

to purchase our products. This translates into greatersales for DSI. That money comes straight to Tyler,Texas, and pays for our employees’ salaries. Our localeconomy enjoys an injection of capital that otherwisewould have gone elsewhere.”

Industry: Manufacturing



Major Products Sold toAustralia: BiodegradableLubricants and IndustrialChemicals

13

Elliott Industries, Inc. Bossier City, Louisiana

Kenneth C. Elliott Jr.Presidentwww.elliott-industries.com

E lliott Industries, Inc. manufactures qualityelectrical equipment for utilities, industrial, andcommercial customers around the world.

Products include a range of 5 kV to 46 kV high-voltage bushing wells,bushings andinsulators, currentlimiting fusemountings and pad-mounted power distributionswitchgear, meteringstations, andcapacitor stations.

The company hasbeen involved ininternational tradewith Australia for 12 years, selling 5 to46 kilovolt insulatorsand 15 to 35 kilovoltair-terminatedbushing wells andbushings. Althoughsales to Australiacurrently account for only a smallpercentage of grosssales, Kenneth C.Elliott Jr., president, believes that eliminating foreigntrade barriers will allow that number to grow.

According to Elliott, “We are seeking a diversifiedmarket to help our company grow. Our progress hasbeen slower than we would like. Passage of a freetrade agreement with Australia will allow us tocompete price-wise with manufacturers in othercountries and to expand our business.”

FA

CE

S

OF

T

RA

DE

®★

SM

AL

L

BU

SI

NE

SS

S

UC

CE

SS

S

TO

RI

ES

W

IT

H

AU

ST

RA

LI

A

Ellicott Division ofBaltimore Dredges, LLC Baltimore, Maryland

Ernesto EscolaManager, International Saleswww.dredge.com

E llicott Division of Baltimore Dredges, LLC is theworld’s leading designer and builder of cuttersuction dredges. Since its founding in 1885, the

company has designed and manufactured more than1,200 dredges, more than any other manufacturer, andhas served customers in more than 70 countriesaround the world.

Ellicott has been involved in international trade withAustralia for 20 years. In 1989, the company deliveredthe world’s largest mining dredge for a miningoperation in western Australia. Other notable projectsinclude portable dredges used to maintain watertreatment facilities in Melbourne and dredges used toclear access channels for six isolated islandcommunities in the remote Torres Strait betweennorthern Australia and New Zealand. One Australiancustomer called Ellicott’s product “the quickestdredge start-up in history, able to excavate and pumptwo and a half times its normal rated output.”

Ernesto Escola, manager, international sales, says, “Afree trade agreementwith Australia willhave a positive impacton our business.Anything thatsupports expandedfree trade is good for our company andour employees inBaltimore.”

Industry: Manufacturing—ElectricalEquipment



Major Products Sold toAustralia: Electrical BushingWells, Bushings, and Insulators




Major Product Sold toAustralia: Cutter SuctionDredges

14

IP Financials New York, New York

Indran PurushothamanDirectorwww.ipfinancials.com

I P Financials is a management consultancy thatspecializes in providing corporate financeadvisory and financial management services. Core

services include financial management, start-up andnew venture services, financial modeling and analysis,business planning, business valuations, and corporatefinancial advice. IP Financials has been doing businessin Australia for 15 years. To date, about 20% ofrevenue generated comes from work with Australia.

Projects undertaken include financial due diligence,modeling and analysis, valuation, corporate finance,management reporting, accounting, budgeting,business plans, and business research. IndranPurushothaman,director, worked inAustralia and returnedto the United Statestwo years ago tobuild his businessbase from New York.He believes thateliminating existingtrade barriers withAustralia will open up even moreopportunities forentrepreneurs. “Afree trade agreementwill provide newavenues for growth.It will not onlyincrease the exportof goods but also willresult in an increasedneed for businessadvisory services.That translates togrowth in my business as well as for the start-ups andother customers I serve.”

Industry: Financial Services



Major Products Sold toAustralia: ManagementConsulting and FinancialAdvisory Services

Erie FoodsInternational, Inc.Erie, Illinois

David ReisenbiglerCEOwww.eriefoods.com

E rie Foods International, Inc. is a global leader inthe production and distribution of milk proteiningredients for the food, nutraceutical, and

pharmaceutical industries. The family-owned companyhas been involved in trade with Australia since the1950s, providing specialty protein ingredients that

are used in infantformulas, nutritionalbars and drinks, andother nutraceuticalproducts. Businesswith Australiacurrently accounts for approximately25%–30% of grosssales, and 40% ofemployees are tied to that internationaltrade.

David Reisenbigler,CEO, says that tradewith Australia has hada dramatic impact onthe company’s growthin the United Statesover the last decade.The long, successfulrelationship withAustralia results fromcommon approachesto business strategies,

including similar attitudes toward employee benefits,environmental protection, and other issues.Reisenbigler adds, “We see no reason to maintainforeign trade barriers, as both of our countriescollectively can benefit from finding the best andmost efficient ways to work together. In most cases,trade barriers artificially restrict pro-active andcreative problem solving. We believe that reducingand eliminating foreign trade barriers will allow thebest in both countries to come forward.”

Industry: Food Products



Major Products Sold toAustralia: Specialty ProteinIngredients for NutraceuticalProducts, Infant Formulas, andNutritional Bars and Drinks

15

Paltronics, Inc. Lake in the Hills, IllinoisLas Vegas, Nevada

Angelo PalmisanoPresidentTerry M. TrobianiChief Operating Officerwww.paltronics.com

P altronics, Inc. is a developer and provider ofdisplays and systems for the worldwide gamingindustry. A leading source for casino equipment

including slot, media, display, and table systems,Paltronics has at least one category of product inevery casino in the world.

Paltronics has been doing business in Australia forseven years and has seen its sales revenues growsignificantly since entering the Australian marketplace.Exports to Australia account for 40% of the company’sgross sales. Paltronics controls more than 85% of thebackend management systems inside casinos inAustralia. Products include LCD- and LED-baseddisplay technologyand mediamanagement anddelivery systemscontrolled byproprietary softwareproducts.

Terry Trobiani, chiefoperating officer,attributes thecompany’s success inAustralia to a numberof factors, amongthem quality products,a large market, and most importantly, a special focuson customer needs and demands. He says, “Oursuccess in Australia actually catapulted our growth inthe United States. We are proud of that success andlook forward to continued future growth.”

FA

CE

S

OF

T

RA

DE

®★

SM

AL

L

BU

SI

NE

SS

S

UC

CE

SS

S

TO

RI

ES

W

IT

H

AU

ST

RA

LI

A

Metriguard, Inc. Pullman, Washington

James D. Logan, P.E.President www.metriguard.com

M etriguard, Inc. is the wood products’ industryleader in the design and manufacture ofmachine stress rating equipment for testing

and grading lumber according to its physicalproperties. Metriguard’s ongoing research anddevelopment efforts produce new equipment andproducts that enhance traditional wood testingprocesses.

Metriguard has been doing business in Australia for25 years, providing equipment for machine stress

rating structuraldimension lumberand othernondestructivetesting and qualitycontrol tools formeasuring woodproperties. Exports to Australia accountfor approximately10% of the company’sgross sales. James D.Logan, president,attributes thecompany’s success in

Australia to a product that is the best availableequipment anywhere in the world and to outstandingcustomer service.

Logan says that a free trade agreement with Australiawill have a positive effect on his business. “Anythingwe can do to expand trade internationally will alsohelp the economy in the United States.”

Industry: Gaming

Number of U.S. Employees:Approximately 100 at locationsin Illinois, Nevada, New Jersey,and California


Major Products Sold toAustralia: LCD and LEDDisplays and Systems,Proprietary Software Products

Industry: Forest ProductsEquipment



Major Product Sold toAustralia: Precision TestingEquipment for Wood

16

John WaughVice President, Marketingwww.dewater.com

P HOENIX Process Equipment Company designsand manufactures a variety of high-qualitysystems for sludge dewatering, fine particle wet

classification and separation, and effluent watertreatment. Founded in 1984 for the separation ofclean coal from waste coal refuse, the company

expanded its marketsand technologies and is now aninternational leader in the supply ofliquid/solid separationand residualsdewateringtechnology.

PHOENIX has beendoing business inAustralia for 12 years,selling solid/solid

Industry: Manufacturing—Environmental and ProcessEquipment


Years of Involvement inAustralia:12

Major Products Sold toAustralia: SeparationEquipment and DewateringSystems

separation equipment and liquid/solid separation anddewatering systems for the municipal, industrial,aggregate, and coal markets. Exports to Australiahave averaged roughly 20% of the company’s totalexports and approximately 3% of total sales. JohnWaugh, vice president, marketing, says that thecompany’s success in Australia is due to a strong andpositive niche within the mining industry, a high levelof process engineering expertise, and excellentcustomer service.

According to Waugh, “Our primary competition inAustralia is from the European Community, andeliminating the current import duties will bolster ourcompetitive position. It will also allow us to penetratenew markets in other Pacific Rim countries. AllPHOENIX employees’ jobs are enhanced andinfluenced by our ability to increase exports,including those to Australia.”

PHOENIX Process Equipment Company Louisville, Kentucky

17

FA

CE

S

OF

T

RA

DE

®★

SM

AL

L

BU

SI

NE

SS

S

UC

CE

SS

S

TO

RI

ES

W

IT

H

AU

ST

RA

LI

A

Redin CorporationRockford, Illinois

John KonopaSales Engineerwww.redincorp.com

F or more than 50 years, Redin Corporation hasbeen manufacturing, designing, and buildingspecialty machines, including drilling, tapping,

boring, and assembly machines for the automotiveand aerospace industries. Redin also has a completeline of gear deburring machines. The company prides

itself on providing thehighest engineeringquality possible whileremaining pricecompetitive.

Redin Corporationhas been involved intrade with Australiafor three years, sellinggear deburringmachinery and cuttingtools. Referrals fromother companies have played a largepart in RedinCorporation’s entryinto the Australianmarketplace. Whileexports to Australiacurrently representonly a smallpercentage of thecompany’s total sales,

a free trade agreement will allow that percentage togrow. “Trade with Australia represents a new growthmarket for us,” says John Konopa, sales engineer.“Reducing or eliminating trade barriers will allow usto increase sales in the region and that can onlybenefit all parties.”

Signature Brands, LLC Ocala, Florida

Kyle StenzelContract Sales and Marketing Managerwww.signaturebrands.com

S ignature Brands, LLC is a leader and innovator in the dessert decorating and Easter eggdecorating business. The company

manufactures, markets, and distributes worldwide the Cake Mate® and Betty Crocker® brands of dessert decorating products and PAAS® Easter egg decorating kits.

Signature Brands, LLC has been doing business inAustralia for nine years. Cake Mate® dessertdecorating products including cake icings, cake gels,and candy cake decorations are shipped to a sistercompany in Australia for distribution to major retailgrocery chains. While trade with Australia currentlyrepresents a small percentage of sales, Kyle Stenzel,contract sales and marketing manager, says thatpassage of a free trade agreement will allow thatnumber to grow.“Eliminating tradebarriers with Australiawill allow us to exportat lower costs, headds, “which willallow us to introducemore new productsand grow ourbusiness by increasingour productofferings.”

Industry: Consumer PackagedGoods



Major Product Sold toAustralia: Dessert DecoratingProducts




Major Products Sold toAustralia: Gear DeburringMachinery and Cutting Tools

18

Sirsi CorporationHuntsville, Alabama

Lamar Jackson Jr. Director, Global Alliances www.sirsi.com

S irsi Corporation develops and manufacturessoftware to provide the most complete libraryautomation and information management

systems available on the market today. Sirsi’s productsand services include a broad array of software thatprovides tools and capabilities to help libraries betterserve users. Along with software products, Sirsi’stechnical expertise includes training, systemimplementation, consulting, and technical support toensure that library technologies function effectively.

Sirsi has been involved in trade with Australia for eightyears, selling library automation computer software touniversities, public libraries, federal governmentfacilities, and research institutions. Approximately 10%of the company’s gross sales are due to exports withAustralia. Lamar Jackson Jr., director, global alliances,says that passage of a free trade agreement with

Australia will allow Sirsi to better compete with non-U.S.firms moving into the market and to use Australia as abase for further expansion into other Asian markets.

According to Jackson, “The United States cannotgrow to its fulleconomic potentialunless trade barriersare reduced. Freetrade agreements arevital for small andmedium-sizebusinesses to growand create jobs in theUnited States.”

Industry: SoftwareDevelopment andManufacturing

Number of U.S. Employees:Approximately 300


Major Product Sold toAustralia: Library AutomationComputer Software

19

FA

CE

S

OF

T

RA

DE

®★

SM

AL

L

BU

SI

NE

SS

S

UC

CE

SS

S

TO

RI

ES

W

IT

H

AU

ST

RA

LI

A

Sunoptic Technologies Jacksonville, Florida

Beth JabenCorporate Marketingwww.sunoptictech.com

S unoptic Technologies is a leading global supplierof fiber-optic cables, high intensity lightsources,dental curing products, digital recording, and

imaging devices. The company provides customdesign, development, manufacturing, testing, andregulatory services dedicated to the light delivery andimaging concerns of customers worldwide.

Sunoptic has been doing business in Australia for 19years, selling fiber-optic cables, headlights, andlightsources. Beth Jaben, corporate marketing, saysthat the company hasnot encountered anyproblems in exportingto Australia, and thatpassage of a freetrade agreement willopen up businessopportunities evenfurther. According toJaben, “Anythingthat supports freetrade is good for our business.”

Spokane Seed CompanySpokane, Washington

Peter JohnstoneChairman, President, and General Managerhttp://dwp.bigplanet.com/spokaneseed

F or nearly a century, Spokane Seed Company hasprovided peas and lentils to customers in theUnited States and around the world. Family

owned and operated since its founding in 1908, thecompany sells split peas, green and yellow peas, redand green lentils, and other quality seed products.

State-of-the-artproduction andprocessing equipmentallow Spokane Seedto produce productssecond to none in the industry.

Spokane Seed hasbeen involved intrade with Australiafor five years,exporting dried peas,

lentils, and garbanzo beans. The company sellsdirectly to customers in Australia as well as throughother U.S. exporters. For example, Spokane Seedsupplies a substantial amount of the green split peas for the Australian division of Campbell’s Soup Company.

Peter Johnstone, chairman, president, and generalmanager, says that trade barriers hurt business,putting the company at a disadvantage with long-standing customers and associates. “Overall, ourrelationships with Australia may be small, but thecountry provides a niche market that we haveenjoyed for many years. As a company, we want tokeep the trade lanes as open as possible so thatbusiness can continue to grow.”

Industry: Agriculture



Major Product Sold toAustralia: Dried Split Peas

Industry: Fiber Optics



Major Products Sold toAustralia: Fiber-Optic Cables,Headlights, Lightsources

20

SUPERTRAK, Inc.Punta Gorda, Florida

D.J. SampsonMarketing and Administrative Managerwww.supertrak.com

S UPERTRAK, Inc. designs and manufactures acomplete line of vegetation management andland clearing units that quickly and safely cut,

shred, and mulch brush, undergrowth, trees, stumps,and logging scrap. SUPERTRAK has been doingbusiness in Australia for 18 years, selling reforestationtractors and other vegetation management equipment.

D.J. Sampson, marketing and administrative manager,attributes the company’s success in Australia to long-established customer relationships and productdurability and suitability to meet specific needs.Sampson says that eliminating trade barriers is

important to thecompany’s futuregrowth in theAustralian market.“Open doors signify awelcome environmentfor U.S. business.Passage of a freetrade agreement withAustralia will enhanceour businessopportunitiessignificantly.”

Industry: Manufacturing—Heavy Equipment



Major Products Sold toAustralia: ReforestationTractors and VegetationManagement Equipment

21

FA

CE

S

OF

T

RA

DE

®★

SM

AL

L

BU

SI

NE

SS

S

UC

CE

SS

S

TO

RI

ES

W

IT

H

AU

ST

RA

LI

A

Trakker Technologies, LLCBozeman, Montana

Maurice Girard President www.trakkers.com

T rakker Technologies, LLC provides state-of-the-art technology for managers of trade showsand registration companies to capture sales

leads at major trade shows and events around theworld. Trakker’s systems are fast, accurate, and easy touse, storing data in files that can be quickly retrievedfor sales follow-up.

Trakker Technologies, LLC has been doing business inAustralia for two years, and exports there account forapproximately 10% of gross sales. The company hassuccessfully introduced its new technology into theAustralian marketplace, providing the equipment forthe first major trade show event in Australia to utilize

two-d bar codesystems. MauriceGirard, president,says, “Ourequipment canbe used anywhere. Thatis especiallyimportant intoday’s market,with trade shows

and conferencesdrawing attendeesfrom around theworld.”

Girard says thateliminating foreigntrade barriers withAustralia will allowhim to grow hisbusiness. “A freetrade agreement with Australia and a

reduction in current duties will help us stay pricecompetitive. Increasing market share and acquiringnew customers in the region are important toTrakker’s long-term growth.”

Transcon TradingCompany, Inc. Irmo, South Carolina

Gerald W. SmithPresidentwww.transcontrading.com

T ranscon Trading Company, Inc. is an exportmanagement company founded in 1979 todistribute high-quality U.S.-made products

internationally. Currently, Transcon, which representsthe interests of approximately 50 U.S. manufacturers,has a market presencein more than 70countries worldwide.The company marketsand sells products inspecific industrycategories includingequine products,small pet products,poultry and livestock,human vitamins andsupplements, andmedical equipmentand supplies.

Transcon has beendoing business inAustralia for 18 years,supplying equine andsmall pet-relatedproducts. Gerald W.Smith, president, saysthat passage of a freetrade agreement withAustralia will allowTranscon to export more products. “The equine andsmall pet business in Australia is a strong marketdemographically for the range of products werepresent. The import regulations in Australia arevery strict, and we have not been able to sellproducts unless they are in the topical category. Theend users in Australia are interested in high-qualityU.S.-branded products. Eliminating existing tradebarriers will allow us to meet these demands andgrow our business as a result.”

Industry: Trade ShowTechnology

Number of U.S. Employees:22 at locations in Montana,Washington, California, Iowa,and Ohio


Major Product Sold toAustralia: Trade Show LeadCapture Technology

Industry: Export ManagementCompany



Major Products Sold toAustralia: Equine and SmallPet-Related Products

22

Video Products Group, Inc.Camarillo, California

Helen KeaneCEOwww.vpginc.com

V ideo Products Group, Inc. (VPG) is the leadingprovider of advanced technology videotransport solutions for users that need

broadcast quality video signals delivered error free inreal time over long distances. For more than adecade, broadcasters, post-production facilities,motion picture studios, and government agencieshave benefited from VPG technologies. VPGcustomers include NASA, SBC, Verizon, and BritishTelecom, among others.

VPG has been doing business in Australia for sevenyears, selling equipment for the transport of

professional qualityvideo and audio overtelecommunicationsand campus networks.Approximately 20% ofthe company’s grosssales are due toexports to Australia.All of VPG’semployees aredependent oninternational trade fortheir jobs. HelenKeane, CEO, says that a free trade

agreement with Australia will make the company morecompetitive in its market niche. She adds, “Passage ofa free trade agreement will help us increase salesbecause we will be in a better position to competewith telecommunications manufacturing companiesfrom other countries.”

Industry: TelecommunicationsManufacturing



Major Product Sold toAustralia: AdvancedTechnology Video Equipment

23

Department of Agriculture, Fisheries and Forestrywww.daff.gov.au

Department of the Attorney-Generalwww.ag.gov.au

Department of Communications, InformationTechnology and the Artswww.dcita.gov.au

Department of Defensewww.defence.gov.au

Department of Education, Science and Trainingwww.dest.gov.au

Department of Employment and Workplace Relationswww.dewr.gov.au

Department of Environment and Heritagewww.deh.gov.au

Department of Family and Community Serviceswww.facs.gov.au

Department of Finance and Administrationwww.finance.gov.au

Department of Foreign Affairs and Tradewww.dfat.gov.au

Department of Health and Ageingwww.health.gov.au

Department of Immigration and Multiculturaland Indigenous Affairswww.immi.gov.au

Department of Industry, Tourism and Resourceswww.industry.gov.au

Department of the Prime Minister and Cabinetwww.dpmc.gov.au

Department of Transport and RegionalServiceswww.dotars.gov.au

Department of the Treasurywww.treasury.gov.au

Inspector General of Taxationwww.igt.gov.au

Australia Accounting Standing Boardwww.aasb.com.au

Australian Bureau of Statisticswww.abs.gov.au

Australian Competition and Consumer Commissionwww.accc.gov.au

Australian Competition Tribunalwww.fedcourt.gov.au/tribunals.htm

Australian Office of Financial Managementwww.aofm.gov.au

Australian Prudential Regulation Authoritywww.apra.gov.au

Australian Reinsurance Pool Corporationwww.arpc.treasury.gov.au

FA

CE

S

OF

T

RA

DE

®★

SM

AL

L

BU

SI

NE

SS

S

UC

CE

SS

S

TO

RI

ES

W

IT

H

AU

ST

RA

LI

A

Resources

24

Australian Securities and Investments Commissionwww.asic.gov.au

Australian Taxation Officewww.ato.gov.au

Board of Taxationwww.taxboard.gov.au

Foreign Investment Review Boardwww.firb.gov.au

Ministerial Council on Consumer Affairswww.consumer.gov.au

National Competition Councilwww.ncc.gov.au

Productivity Commissionwww.pc.gov.au

Reserve Bank of Australiawww.rba.gov.au

Superannuation Complaints Tribunalwww.sct.gov.au

Takeovers Panelwww.takeovers.gov.au

Embassy of the United States—Canberra, Australiausembassy-australia.state.gov

American Chamber of Commerce in Australiawww.amcham.com.au

Embassy of Australia—Washington, D.C. www.austemb.org

Resources (continued)

Copyright © 2004 by the Chamber of Commerce of the United States

All rights reserved. No part of this work covered by the copyrights herein may bereproduced or copied in any form or by any means—graphic, electronic, or mechanical,including photocopying, recording, taping, or information and retrieval systems—without written permission of the publisher.

To order this publication, please contact:TradeRoots®

U.S. Chamber of Commerce1615 H Street, N.W.Washington, D.C. 20062-2000Telephone: 202-463-5511Web site: www.traderoots.orgE-mail: [email protected]

Price: $25.00, plus $1.00 postage and handlingPlease make checks payable to TradeRoots®/U.S. Chamber of Commerce.

This publication is designed to provide accurate and authoritative information in regard tothe subject matter covered. It is sold with the understanding that the publisher is notengaged in rendering legal, accounting, or other professional service. If legal advice or otherexpert assistance is required, the services of a competent professional should be sought.

—From a declaration of principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations.

Publication # 0328

U.S. Chamber of CommerceTradeRoots®

1615 H Street, N.W.Washington, D.C. 20062Phone: +1 202-463-5511Fax: +1 202-463-3129E-mail: [email protected] site: www.traderoots.org

Publication # 0328

Small Business Success Stories with Australia FACES OF TRADE ® ★ SMALL BUSINESS SUCCESS STORIES...

Documents

Transcript of Small Business Success Stories with Australia FACES OF TRADE ® ★ SMALL BUSINESS SUCCESS STORIES...