Customized Competitiveness Audit/SWOTT with CMTC

Consulting for California’s Manufacturers

GEEP clients will not fully succeed as exporters if they are not structurally up to the stiff competitive challenge; that is, unless they have fundamentally sound operations, facilities, processes and financing. A GEEP consultant team will meet with key managers at the client’s site to assess operations and recommend possible improvements to increase efficiency, productivity and competitiveness. The assessment will particularly address these issues:

• Organization & staffing
• Production facilities, processes & equipment
• Quality standards & control
• Office and management systems
• Supply chain & inventory control
• Sales & marketing

CMTC is a non-profit consulting company whose sole mission is to assist Southern California manufacturers to improve profits, stimulate growth, create and retain jobs and improve productivity.

The CMTC team member will prepare a consensus report with findings and recommendations, plus provide 4 additional hours of professional consulting to help the client complete a formal SWOTT analysis. The client would bear any costs to implement recommendations beyond the GEEP’s scope and fee, such as lean manufacturing or workforce development training, unless recoverable under the College’s Employment Training Panel (ETP) contract.

Right Sized Solutions, Right Now™

Serving the manufacturing industry’s most vulnerable sector, CMTC’s Small Business Consulting (SBC) Group understands the issues facing small manufacturers and has developed the Small Manufacturers Advantage® program to address their unique business challenges. CMTC’s Small Manufacturers Advantage® program provides expertise and leadership for small manufacturers to identify and solve their problems. Each year our Small Business Consultant Group assists hundreds of small manufacturers in identifying their business issues with our Company SnapShot™ assessment tool and provides improvement plans leading to increased productivity and higher profits. If your manufacturing facility meets the criteria, these services may be just right for your business. Click here to learn more about the SMA program.

Apply Today:

Click here to determine eligibility.

Export Readiness Assessment

An interactive, on-line diagnostic tool to assess a company’s export readiness, developed by Maurice Kogon. The Assessment includes a 23-point test and provides immediate feedback in the form of an export readiness test score; a detailed, point-by-point diagnosis of export strengths and weaknesses; and tips on how to overcome weaknesses. The user can save, copy, and print the entire report, as well as e-mail the results to a trade counselor of choice.

GEEP Webinars

Download Resource:GEEPWebinarsHandout

Fundamentals of Export

Covers the basics of exporting from getting started to getting paid. Topics include: Is exporting for me, role of intermediaries, Internet export resources, and how to identify and enter high potential export markets, advertise and promote your products, turn inquiries into sales, find distributors, transport your goods, finance them and get paid. View a recording of the full webinar (click here)

Regulatory Compliance

Legal do’s and don’ts for China.

Learn how to comply with foreign trade requirements, conform to foreign business practices, draft trouble-free contracts and agreements, avoid legal pitfalls, and protect your rights in the global arena. View a recording of the full webinar (click here)

Freight & Logistics

Delivering export goods to China.

Learn about international air, ocean and inter-modal transportation and how to select freight forwarders and carriers; cut transportation costs; book, track and trace shipments; and protect and insure goods en route, including hazardous materials. View a recording of the full webinar (click here)

Finding Chinese Partners

Plus, concluding contracts & agent/distributor agreements.

Covers how to find, screen and select qualified buyers and distributors, negotiate favorable contracts and agreements, and maintain the partner relationship over time. View a recording of the full webinar (click here)

Financing Green Exports to China & Getting Paid

Download Resource:Financing_for_a_Cleaner_Environment

Covers the tricks, traps and how best to respond to export inquiries, calculate and quote export prices, negotiate export sales and delivery terms, select best financing methods, get export financing, limit risks, and get paid. View a recording of the full webinar (click here)

Seminar Handout: Commercial Letter of Credit Instruction to Buyer
Seminar Handout: Export Working Capital Financing – A Comparison

China’s Green Market

Market potential, business culture, best entry strategies.

Assesses the Chinese demand and import trends for green products, market conditions and dynamics, and best market entry and development strategies. View a recording of the full webinar (click here)

Seminar Handout: China Green Market Presentation by Marc Lemmond
Seminar Handout: China’s Green Residential Construction Market by Gary Stanely
Seminar Handout: Greentech by Betsy Shieh

Doing Business In China Through Hong Kong

By Barrett Bingley of ICS TRUST

Download Resource:Doing_Business_in_China_for_CITD_14_Jan_-_ICS_Trust

Barrett Bingley of ICS TRUST spoke about “Doing Business in China through Hong Kong”. An expert on Asian international business, Mr. Bingley brings a unique perspective on Chinese business ventures that is useful to any company looking to expand into China via Hong Kong. In his presentation, Mr. Bingley discussed Hong Kong as a portal into the China market, with particular emphasis on using Hong Kong’s legal, tax and banking industries to set up Wholly Owned Foreign Enterprises, Joint Ventures and Representative Offices in China. Mr. Bingley explained the differences in compliance, accounting and audit requirements in Hong Kong and China. He also clarified common misperceptions relating to corporate structures for foreign companies in China, and discussed recent progress in China’s efforts toward protection of intellectual property.
View a recording of the full webinar (click here)

Market Research Kit

Download Resource:CGTR2009-ExecutiveReviewEnglish

Misdirected efforts are often a prime factor in export failure. Without good information, even experienced companies can waste resources on low potential markets or make costly cultural blunders. The market research step will provide the analytical foundation for sound planning and decision making, particularly as to target markets and market entry strategies. The client-specific market research will be compiled by the CITD and its trained interns, with support from Partner USCS domestic and overseas offices. Each client will receive a customized package of market research consisting of relevant trade statistics, product market surveys, trade regulations, trade contacts, and target-country marketing guides.

The package will include:

U.S.-China Trade Statistics – Multi-year tables for green products showing trends in U.S. exports to China and China’s imports from the U.S. and competitor countries.

China Market Surveys – Assessments of the China market for U.S. environmental technologies, renewable energy equipment, and green building products, covering demand trends, end users, the competitive situation, market entry requirements, marketing practices, and key trade contacts.

China Country Commercial Guide – In depth assessment of China’s political, economic, and business conditions; trade regulations, and best practices for U.S. exporters to enter, distribute and sell in the China market.

Cultural Best Practices for the China Market – Tips on business etiquette, such as making appointments, forms of address, business attire, gift-giving, welcome/unwelcome topics of conversation, and negotiating deals.

U.S. and China Trade Regulations—Identifies U.S. export and China’s import requirements for green products, including possible U.S. export licenses, permits, certificates or documentation, and relevant Chinese import duties, taxes and non-tariff barriers.

Customized Export Market Plan (EMP)

Download Resource:Export_Market_Plan_Template

Just as a business plan is the first step to starting a business, an export market plan is the first step to developing international markets.

Systematic market planning is essential to exporting and can be instrumental in avoiding costly mistakes. The adage, “companies don’t plan to fail, they fail to plan” is especially true in the global arena. SME green-tech exporters will encounter different income levels and demand cycles abroad; different product preferences; different languages, cultures and environments; different laws and regulations; different ways of doing business; and different risks. The CITD and trained interns will help the clients develop customized Export Market Plans that fit their available resources, capabilities and potentials. The plans will provide a structured roadmap to export success, with specific recommendations on a China market entry strategy and a step-by-step action plan to keep the client on track.

Customized EMPs will address the following key areas for each company:

Company export objectives, policies, capabilities and resources. Products to export to China Market entry strategy – distribution, pricing, promotion, localization Target customers—buyers, distributors, other partners Implementation plan – specific actions, budget, timetables

Export Financing

Download Resource:Financing_for_a_Cleaner_Environment

As the GEEP promotion and matchmaking steps take effect, purchase orders should start coming in. The new-to-export GEEP clients, in particular, may feel some uncertainty about what to do, even with prior training. To ease initial anxieties and assure prompt, seamless response to potential export transactions, the CITD will guide the client through initial export transactions. The CITD will also connect the client with services that can finance, insure and ship the goods and protect the company’s legal interests.

Getting Paid for Exports to China

Ex-Im Bank Solar Express Program

SBA Export Express Program

SBA Export Express helps small businesses develop or expand their export markets

SBA Export Express helps small businesses develop or expand their export markets. The program provides exporters and lenders a streamlined method to obtain SBA-backed financing for loans and lines of credit up to $250,000.

Most banks in the U.S. do not lend against export orders, export receivables or letters of credit. SBA temporarily provides lenders with up to a 90 percent guaranty on export loans as a credit enhancement to encourage participating banks to make loans that make the necessary export financing available.

Lenders use their own credit decision process and loan documentation. SBA provides an expedited eligibility review and provides a response in less than 24 hours, so exporters get access to funds faster.

How Funds May Be Used
Loan proceeds may be used to finance any export development activity, including:

Standby letters of credit when required as a bid bond, performance bond or advance payment guarantee
Participation in a foreign trade show
Translation of product brochures or catalogs for use in overseas markets
General lines of credit for export purposes
Service contracts from buyers located outside the United States
Transaction-specific financing needs associated with completing actual export orders
Purchase of real estate and equipment to be used in the production of goods or services for export
Providing term loans and other financing to enable small business concerns, including export trading companies and export management companies, to develop foreign markets
Acquisition, construction, renovation, modernization, improvement or expansion of productive facilities or equipment to be used in the United States in the production of goods or services for export

Eligibility
SBA Export Express loans are available to businesses that meet the normal requirements for an SBA 7(a) business loan guaranty. Financing is available for manufacturers, wholesalers, export trading companies and service exporters. Loan applicants must demonstrate that the loan proceeds will enable them to enter a new export market or expand an existing export market. Applicants must have been in business, though not necessarily in exporting, for at least 12 months.

Loan Amount
The maximum line of credit/loan amount is $250,000. The Recovery Act temporarily provides up to a 90 percent guaranty on Export Express loans. It is anticipated this increased guaranty will last through the end of calendar year 2009, or until the appropriated funds are exhausted, whichever comes first. Normally, the lender receives an 85 percent guaranty for loan amounts up to $150,000 and 75 percent on loan amounts between $150,000 and $250,000.

Loan Maturity
The maturity of an SBA Export Express term loan is usually 5 to 10 years for working capital, 10 to 15 years for machinery and equipment (not to exceed the useful life of the equipment), and up to 25 years for real estate. The maturity for revolving lines of credit may not exceed 7 years.

Interest Rate
The SBA does not establish or subsidize interest rates on loans. Interest rates are negotiated between the borrower and the lender, but may never exceed SBA interest rate caps. Rates can either be fixed or variable, and are tied to the prime rate as published in The Wall Street Journal, the one-month LIBOR rate, or the optional peg rate published quarterly in the Federal Register.

SBA Fee
The SBA fee for an Export Express loan with a 12-month maturity or less is ¼ percent (0.25 percent) assessed on the guaranteed portion of the loan. For loan maturities longer than 12 months, the normal guaranty fee is 2 percent on loans up to $150,000 and 3 percent on loans between $150,000 and $250,000. However, the Recovery Act temporarily provides for a guaranty fee elimination on all 7(a) and 504 loans. It is anticipated this elimination will last through calendar year 2009 or until the appropriated funds for this provision are exhausted, whichever comes first.

Collateral
Lenders follow collateral policies and procedures that the lender has established for its non-SBA-guaranteed loans.

Technical Assistance
Because many small business exporters face unique problems and challenges, the SBA Export Express Program also includes technical assistance in the form of marketing, management and planning assistance. SBA’s U.S. Export Assistance Centers provide technical assistance in cooperation with SBA’s network of resource partners, including Small Business Development Centers (SBDCs) and Service Corps of Retired Executives (SCORE).

On approval of an SBA Export Express loan, a U.S. Export Assistance Center representative will contact the borrower to offer appropriate assistance, which may include training through the SBA’s Export Trade Assistance Partnership, SBDC International Trade Center, SCORE, District Export Council, or Export Legal Assistance Network.

How to Apply
Application is made directly to the lender. Lenders use their own application materials in addition to SBA’s Borrower Information Form.

Lenders approve the request and then submit a limited amount of eligibility information to SBA’s National Loan Processing Center. The SBA provides a response within 24 hours.

Interested businesses should contact their existing lender to determine if it is an SBAExpress lender. Lenders that participate in the SBAExpress program are also able to make Export Express loans.

For More Information
SBA staff can help in weighing financing options and risk mitigation, plus advise on SBA loan products and application procedures. Contact your local U.S. Export Assistance Center to learn more about the Export Express Program and whether your business might qualify.

Matchmaker Trade Delegations

Match U.S. firms with prospective agents, distributors, and other potential business partners in selected countries. Delegation members travel to each country and benefit from export counseling, interpreter service and logistics support, market research, in-depth market briefings, and a personalized itinerary of business appointments.

Example:

International Company Profiles

Provide key details about a specified foreign firm’s reputability, financial status, references and suitability as a prospective rep for the Export Enabler client.

International Partner Searches

Look for qualified overseas representatives for U.S. firms. The Export Enabler client provides details about its company, export products, marketing objectives and the qualifications it seeks in an overseas agent or distributor. DOC and/or California commercial officers at the overseas offices conduct the search and prepare a report listing qualified and reputable prospects in the target country that have reviewed the client’s information and expressed interest in a possible representation. The CITD will assist the client to screen and evaluate the prospects leading to a possible selection.

Gold Key Matching Services

Assist U.S. firms conducting business trips abroad. The service includes U.S. embassy orientation briefings, market research, introductions to potential partners, interpreter service for meetings, and assistance in developing a sound market strategy and effective follow-up.

China Market Entry Incubator / Global Technology Center

Your Home-Away-From-Home in Hong Kong

GEEP clients can lease low-cost space at the Global Technology Center in the Hong Kong Science and Technology Park to facilitate China market entry and expansion. Those that choose this “home-away-from-home” option, on either a short-or long term basis, will get help to:

• Identify and build relationships with potential partners
• Host training sessions and media events
• Conduct in-country market research
• Establish a long-term presence for market expansion

Full List of Services available to U.S. Exporters from the U.S. Department of Commerce

A $100 billion renewable energy market, widespread pollution and environmental degradation has accompanied China’s incredible economic growth. And facing limited energy resources and inefficient use of energy, the central government has made clean technologies and energy efficiency a strategic priority. The Chinese government set the 2006-2010 Plan targets to reduce energy intensity per unit of GDP by 20% and reduce major pollutant emissions by 10%. Although renewable energy now accounts for 6% of the energy mix, China’s goal is to increase that percentage to 15% of total energy consumption by 2020. This is driving China’s $100 billion renewable energy market for Clean Transportation, Energy Efficiency in Buildings and Urban Planning & Design, Decentralized Power Generation & CHP, Renewable Energy, Hybrid/Smart Grid, Clean Coal (including Carbon Capture Sequestration), and Industrial Energy Efficiency.

~ William Zarit, Senior Commercial Officer, Beijing

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The GEEP Multi-Step Process