Here is another testimony to potential of consumers outside USA.
Apple just reported its second fiscal quarter results for the quarter ended March 26, 2011.
Only 41% of their top line (revenue) came from USA. 59% of their total revenue (sales) or top line came from outside USA.
Another interesting fact to note. The sales grew 83% whereas the net profit grew 95%.
It is critical that US manufacturers take their products to overseas markets and do it fast - we must establish our presence in the global markets immediately - now.
Wednesday, April 20, 2011
EXPORT - not to grow but to survive in your home market
Whatever you make in your business, if you make them enough you become better at it. The quality of your product improves as you make more and more of them. Eventually, you start benefiting from economies of scale, thus reducing your cost of production and improving your profits. However, that can be done only if you have an opportunity to make your product a lot of times. This means that you should have access to, and be able to sell to, a large market.
Thus, an opportunity to make and sell your products in large volume has many benefits including lower quality control costs due to improved processes and improved profitability due to economies of scale. Besides, your product becomes a difficult competitor in the market for anyone to beat. Your product cannot be beaten out of the market easily.
On the other hand, if you don’t build up your expertise in your product and if they continue to struggle with quality issues, then you are always at risk in the market. If your competitor sells a lot of units and is able to develop the expertise better than you, then you are consistently at risk of being thrown out of the market.
In the global context, this is now an important fact that the US manufacturers have to accept and acknowledge soon. The markets outside USA are growing in terms of the purchasing power of the governments, businesses and individual consumers. A large amount of money is being spent by international development agencies and governments towards building the capacities of the nations that have been struggling for quite some time. This is resulting in great business activities in those countries. GDPs are growing at a great rate and personal incomes are rising thus increasing the purchasing power in general.
In terms of numbers of people, 95.5% of the world’s population lives outside USA. If a manufacturer from Europe or China or other parts of the world sells a certain product to a large market that lies outside USA then they are bound to become good at what they are making. If they make a lot of those products, their cost of production will go down and their quality of products will improve. Eventually, if these companies will continue to sell such large numbers outside USA for a long time, they would reach a point where they would become a competitive threat to US manufacturers on their own turfs.
We have had such experience in many industries in the past where foreign manufacturers became good at what they were making and took away a good share of the market inside USA. This was not because our products were not good in the first place. It was most likely because we remained focused on our national markets and never got enough experience and learning to improve our product quality and improve our costs. Eventually, the foreign manufacturers build up their expertise in the huge foreign markets and then were able to compete against our own manufacturers within the US markets.
The manufacturers in USA would benefit much by acknowledging this idea that for their future survival within US markets, and to avoid being chased out of business by foreign competitors, they must export and they must export in a big way.
Download the White Paper on US Manufacturing at www.USExports.us
Thus, an opportunity to make and sell your products in large volume has many benefits including lower quality control costs due to improved processes and improved profitability due to economies of scale. Besides, your product becomes a difficult competitor in the market for anyone to beat. Your product cannot be beaten out of the market easily.
On the other hand, if you don’t build up your expertise in your product and if they continue to struggle with quality issues, then you are always at risk in the market. If your competitor sells a lot of units and is able to develop the expertise better than you, then you are consistently at risk of being thrown out of the market.
In the global context, this is now an important fact that the US manufacturers have to accept and acknowledge soon. The markets outside USA are growing in terms of the purchasing power of the governments, businesses and individual consumers. A large amount of money is being spent by international development agencies and governments towards building the capacities of the nations that have been struggling for quite some time. This is resulting in great business activities in those countries. GDPs are growing at a great rate and personal incomes are rising thus increasing the purchasing power in general.
In terms of numbers of people, 95.5% of the world’s population lives outside USA. If a manufacturer from Europe or China or other parts of the world sells a certain product to a large market that lies outside USA then they are bound to become good at what they are making. If they make a lot of those products, their cost of production will go down and their quality of products will improve. Eventually, if these companies will continue to sell such large numbers outside USA for a long time, they would reach a point where they would become a competitive threat to US manufacturers on their own turfs.
We have had such experience in many industries in the past where foreign manufacturers became good at what they were making and took away a good share of the market inside USA. This was not because our products were not good in the first place. It was most likely because we remained focused on our national markets and never got enough experience and learning to improve our product quality and improve our costs. Eventually, the foreign manufacturers build up their expertise in the huge foreign markets and then were able to compete against our own manufacturers within the US markets.
The manufacturers in USA would benefit much by acknowledging this idea that for their future survival within US markets, and to avoid being chased out of business by foreign competitors, they must export and they must export in a big way.
Download the White Paper on US Manufacturing at www.USExports.us
Sunday, March 6, 2011
Data Shows U.S. Farm Equipment Exports On the Rise | Farm Journal Magazine
Compared with the previous year, U.S. exports of agricultural-related machinery increased more than 12% compared to the previous year and totaled more than $8.95 billion according to the Association of Equipment Manufacturers (AEM).
Data Shows U.S. Farm Equipment Exports On the Rise | Farm Journal Magazine
Data Shows U.S. Farm Equipment Exports On the Rise | Farm Journal Magazine
Wednesday, February 9, 2011
NCBA: Opportunities For US Beef Exports
The three main opportunities for US beef exports at the moment include Russia, China and Japan
NCBA: Opportunities For US Beef Exports
NCBA: Opportunities For US Beef Exports
US is exporting oil
Behold the growth in Total Oil Product exports since the start of 2008. These have nearly doubled from near 1.2 million barrels per day at the start of 2008, to just above 2.2 million barrels per day as of mid-January 2011.
Punk US Oil Demand and Export Confusion Gregor.us
Punk US Oil Demand and Export Confusion Gregor.us
NCBA: Opportunities For US Beef Exports - The Meat Site
"The three main opportunities I see for US beef exports at the moment include Russia, China and Japan," said Mr Miller
NCBA: Opportunities For US Beef Exports - The Meat Site
NCBA: Opportunities For US Beef Exports - The Meat Site
Roads, hospitals and education to get a bulk of $78 billion in Oman over next 5 years
Oman, a beautiful country and a next door neighbor to UAE. A short drive from Dubai for those companies that are based at Dubai Airport Freezone and run their regional operations from there.
Oman has announced its next 5 year plan wherein they are planning to spend close to $70 billion on roads, hospitals and education.
This offers an opportunity for US manufacturers in the related sectors to explore possibilities of doing business with Oman.
Take a look at the following article with some details
Oman to spend $78 billion in the next 5 year plan
Oman has announced its next 5 year plan wherein they are planning to spend close to $70 billion on roads, hospitals and education.
This offers an opportunity for US manufacturers in the related sectors to explore possibilities of doing business with Oman.
Take a look at the following article with some details
Oman to spend $78 billion in the next 5 year plan
Health care industry in the Middle East offers opportunities
There has been a serious underinvestment in the health care industry in the Middle East over the last 2 decades. This trend is now reversing.
The health care export opportunities exist for US companies that are interested in increasing their market share in the Middle East, South Asia and Central Asia.
Take a look at the following link for an article on the issues related to Diabetes in Middle East and the investments required to manage these and other health issues there
51.7 million Diabetes patients in Middle East by 2030
The health care export opportunities exist for US companies that are interested in increasing their market share in the Middle East, South Asia and Central Asia.
Take a look at the following link for an article on the issues related to Diabetes in Middle East and the investments required to manage these and other health issues there
51.7 million Diabetes patients in Middle East by 2030
Growth in Middle East and Asia seen by CEO
A recent survey by PriceWaterhouseCoopers reveals that about 90% of the CEOs of the world see major growth in Asia and over 70% of them see growth in Middle East.
There is tremendous growth happening in Asia and Middle East markets and they offer great opportunities for USA SME sector - small and medium size manufacturers and distributors to expand their market share in the world outside USA starting with Asia and Middle East.
Check out the following link to see the details of the above mentioned survey
DAFZ-USA
I hope you see an opportunity for your business in the Middle East and Asia
There is tremendous growth happening in Asia and Middle East markets and they offer great opportunities for USA SME sector - small and medium size manufacturers and distributors to expand their market share in the world outside USA starting with Asia and Middle East.
Check out the following link to see the details of the above mentioned survey
DAFZ-USA
I hope you see an opportunity for your business in the Middle East and Asia
USA exports to Arab world could exceed $1 Trillion by 2013
The economies of the Arab world are growing. The governments there are spending on building bridges, metros, highways and roads. The consumer buying power is increasing. Already, the trade has reached a record $68 billion. The growth is projected to be exponential.
Take a look at the following news item giving the full details at the knowledge base at the below link:
DAFZ-USA - Knowledge Base
This offers a tremendous opportunity for US manufacturers to expand their market share into the region.
Take a look at the following news item giving the full details at the knowledge base at the below link:
DAFZ-USA - Knowledge Base
This offers a tremendous opportunity for US manufacturers to expand their market share into the region.
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