US trade mission proves lucrative for Irish

Sunday Business Post - New Business Section - Mar 22 2009

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Deals adding up to €105 million were signed this week by 23 Irish companies during an Enterprise Ireland (EI) trade mission to the US. A total of 92 Irish companies from across all sectors - from technology to consumer products, and engineering and life sciences - including eight companies from Northern Ireland, took part in the trip.

The companies announcing deals included Meath firm Dromone Engineering, Cork clothing company Premium Golf Brands (PGB), Bord na Mona Environmental, and Galway-based online learning provider Alison. Lily O’Briens Chocolates also announced plans to open its first-ever US cafe.

Well-timed trip
Tom Cusack, director, Americas, EI, said the mission - the first to the US in 20 years - was well timed, given the challenges facing Irish companies doing business in the US.

‘‘We had a wide range of companies from across all the sectors announcing business,” said Cusack. ‘‘It is very important in this climate that companies show dedication to the market, and that they do not take for granted the relationships and business that they have here in the US. It is important to spend as much face time in the market as you possibly can.”

Figures compiled by Enterprise Ireland show that the US is Ireland’s second-biggest export market. It was worth €1.28 billion to Irish companies last year, up from€1.247 billion in 2007.

Optimistic mood
Despite the downturn, Cusack said the mood was more optimistic in the US than elsewhere at present, with the recent inauguration of Barack Obama.

‘‘Nothing has dramatically changed in the economic arena since President Obama took over, but there is a noticeable shift in attitude,” said Cusack. ‘‘Within any economic downturn, there is opportunity. There is a lot of doom and gloom at home, but the attitude in the US is not as bad.”

Some recent signs have indicated that some sort of recovery may be imminent in the US economy, Cusack said.

‘‘Our view is that the US market will start to pick up by the end of 2009.That would be an optimistic view, but certainly in the last week we have seen the markets hold up quite well,” he said. ‘‘Some of the banks that were considered to be in great difficulty have also started to pick up. I would be confident that we will see a turn by the final quarter of 2009.”

New opportunities
The difficult economic climate meant that many US companies were currently looking for new suppliers or partners who could help them to save money, Cusack said.

‘‘Irish companies are now getting access to companies in the US that they would not previously had got into,” he said. ‘‘Buyers are open to meeting new vendors now to see what value proposition they can offer. There is no doubt that companies will have to work hard, but there are opportunities.”

Companies taking part in the EI trip had the opportunity to meet with government figures in Washington DC. Cusack said there were opportunities for companies arising out of the large stimulus packages unveiled by the new Obama administration.

‘‘A number of experts from within the new administration came in to speak with us on how to deal with the new administration and take advantage of opportunities within the new Recovery and Reinvestment Act,” he said.

Irish enterprise stateside
More than 200 Irish companies in 1,300 locations employ over 82,000 US citizens in American operations, according to Enterprise Ireland. For new companies keen to do business in the US, Cusack advised them to establish a presence stateside.

‘‘US buyers need to see that the potential supplier is committed to the market,” he said. ‘‘EI has incubation units here in New York - office space that people can set up in. This gives them an address and also the endorsement of the Irish government. It shows that the company is here for the long run, not just a hit-and-run sale.”

Smaller companies and recent start-ups looking to crack the US market should consider partnering with an experienced distributor, Cusack said.

‘‘My first advice would be to look for a partner here. However, you cannot just come in and get a distributor and just leave them to sell the product. You have to spend time with the distributor or partner, to build the trust between both parties,” he said.

Cusack also advised companies to concentrate on individual markets within the US.

‘‘The US is such a vast market, that you need to take it in bite sizes. Some people concentrate on the East Coast or the West Coast, or even look at individual states,” he said.

Full commitment
Cusack advised Irish companies moving into the US market to commit themselves fully to the move.

‘‘It is often about sending over your best person,” he said. ‘‘It should not be someone who is just looking to spend six months in the US, or a graduate coming on board. You should send your best salesperson over. It is such a big market, and it should not be skimped on.”

Irish America
Irish companies looking to grow their business in the US should take advantage of the strong historical links between the two countries, Cusack said.

‘‘We get more than our fair share of coverage here, as a country,” he said. ‘‘A lot of business is built around relationships and networks, and the reach of Irish America is huge. Irish American executives tend to be very willing to do introductions, to help Irish companies and to offer strategic advice, in most cases free of charge.”

Cusack said Irish start-ups that had an American multinational based in Ireland as a reference customer, would enjoy significant advantages when looking for new business in the US.

‘‘If you have a reference site related to a US company, in Ireland or anywhere in Europe, it is definitely a door-opener here. Then it is much easier to knock on doors,” he said.