International Business News April 2019

Trimac Industrial Systems Shipping Big Products Internationally

Marty Sawyer CEO, Trimac Industrial Systems Trimac Electric IR oven

Trimac’s Convention Batch Oven

Also in this issue: News from around the world / Tips on what to see in / Country Profile: Morocco Savino Del Bene – Your Global Solution

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Trimac Industrial Systems. Beginning on pg 4.

Pg. 2: Savino Del Bene Pg. 3: Letter Pg. 4: Trimac feature Pg. 5: Trimac, Commerce Bank The cost of shipping freight continues to be a significant cost creating non-tariff trade barriers for many American Pg. 6: Trimac, cont’d. small to medium-sized manufacturers. Most rely on superior product quality and customer service to offset Pg. 7: Morocco Travel Tips, Transimpex excessive shipping costs. Pg. 8: Morocco tips Of course, you may be able to save money by working Pg. 9: Express News, Port KC with your freight forwarder to consolidate your shipment with another company’s load. Pg. 10: Express News cont’d, Moroccan Recipe Pg. 11: Country Profile: Morocco Companies will occasionally cut into their margins to better compete price-wise against indigenous Pg. 12: Morocco, cont’d manufacturers. Others establish overseas warehouses like Posi Lock Pullers, which leased warehouse space in Pg. 13: Morocco, cont’d Brussels to better serve its European distributors and Pg. 14: Foreign Trade Zone end-user customers. Their customers might have immediate need of components to keep their own business running but IBNewsmag cannot afford or pay up front for a large supply due to cash flow and inventory tax situations. Tel 816.616.7779 Fax: 816.472.0959 [email protected] Another strategy is reported in this edition of IBNewsmag. Trimac Systems manufactures and 6655 Troost Ave., ships large assemblies – too large in many cases for Kansas City, MO 64131, USA containerization. Its convection ovens are typically shipped as brake bulk which boosts shipping costs even In God we trust! more. See the article on page 4. PUBLISHER/EDITOR: Also, in this edition we are beginning two new sections. Frederick Baehner One is a quick summary of relevant world news points that may just affect your business. See page 9. DESIGN & PRODUCTION: Tom Gilland www.GillandGraphx.com Another is a travel companion column to our well-read country profiles. When traveling overseas, it’s good SENIOR EDITOR: Doris Ganser to know some must-see sights. In this issue we profile CONTRIBUTING WRITER: Paul Mastilak Morocco and even offer a savory Moroccan recipe. ADVERTISING DIRECTOR: Tom Renich International Business News ADVISOR: James Malouff page 4 April 2019

Trimac Inline Parts Washer Trimac CEO Marty Sawyer

How Trimac Industrial Systems overcomes shipping challenges in meeting customer requirements Trimac Industrial Systems makes industrial The longevity of its systems curbs the need of spare systems for heating, coating and cleaning of parts, and most typically the company has limited manufactured components, incorporating a competition, either internationally or domestically. As Trimac CEO Marty Sawyer explained, “When cus- wide variety of product applications. tomers intend to buy one of our heating systems, based on our history of installed equipment, repu- Based in Bonner Springs, Kansas, Trimac designs, tation and questions, they quickly realize that we engineers and manufactures large systems for cus- have the perfect competency to meet their specific tomers from all over the world. Its three primary requirements. systems categories are Heating – both infrared and convection - Cleaning and Complete Systems. “Customers often send us a description of what they want along with things like ‘bags of parts’,” Broken down further, the company’s infrared she said. “Then it’s up to our engineers to design heaters and ovens are among its most sought-after a system that fulfills that need. We end up doing a systems both domestically and internationally. lot of R&D to keep up with changing technologies These are all custom-engineered based on custom- and environmental demands as well as customer er needs. And they are built to last 15 – 20 years or needs.” more.

IBNewsmag TM April 2019 page 5

Trimac uses both distributors and sales reps for its exports and attends trade shows when appropri- ate. “We try to make site visits with our engineers where practical,” Ms. Sawyer noted.

“Once manufactured we try to fit most of our systems into containers, either unassembled or par- tially assembled, for easier and safer shipping but often they have to go break bulk. Because many include electrical components, we try to get them into the boxes.”

The company’s Infrared systems are proprietary and are more often sold, but its convection ovens systems are bought for specialty application such as oil and gas operations, primarily in areas like the Middle East, for automotive and military purposes.

Powder coating is most preferred by customers over liquid paint. Trimac’s heaters and ovens bake the powder onto the components. These applica- Gantry Oven Railroad Car Trimac, continued on page 6

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Trimac, continued from page 5

tions range from a variety of large and small parts like railroad cars to fishing lures. Each system is designed to ensure a perfect match of color for ap- plications such as high-volume product lines.

Most of the time Trimac’s customers take title of their systems at the company’s docks. “Ex Works best meets our needs,” Ms. Sawyer said. “It also eliminates much of the paperwork required for shipping. “A good example is the purchase of one of our systems by a company in India through its US operation. Their purchasing department prepares the invoice and logistical documentation, and their freight forwarder handles the shipping.”

Lead times for manufacturing Trimac systems typi- cally require anywhere from 8 to 26 weeks depend- ing on the system and company workload at any given time. Most system components are made in the US, although its Minnesota facility occasion- ally purchases components such as tempered glass from other countries. Spray Washer

In Europe, the company’s proprietary infrared systems are in demand, more so than in the US where convection heat is the most common type of heating technology. European markets require a more demanding approach in terms of standards, expectations and designs. The infrared systems can fit into less than 50% of the space taken by convec- tion equipment.

Trimac exports anywhere from 2 – 25% of total sales depending on customer purchasing cycles.

You can see much more about Trimac and its systems at www.trimacsystems.com. IBN FS-IFRED

IBNewsmag TM April 2019 page 7

Morocco: Just like Bogey and Bacall only better

As intrepid international travelers, you must visit The western Moroccan city of Marrakech beauti- Morocco. Because it comprises more land than Italy fully illustrates the duality of old and new. Strolling and Greece combined, it is difficult to see everything through the city’s walled, medieval district (called the in one trip. Medina), it’s difficult to conceptualize it as a major economic center. As you step through the ancient , the country’s largest city, and , gate into “modern Marrakech”, the contradiction of the capital, are both fantastic places to explore and surroundings becomes clear, as shopping malls, enter- deserve to be tourist hotspots in their own right. tainment venues, luxury hotels, and thriving busi- However, if you are interested in a little bit of every- nesses pop up all around. thing, from museums, architecture and history, to mountains, desert, ocean and adventure, my recom- If you have mastered the art of winging it, as opposed mendation is to designate Marrakech as your home to working with a travel agent, here are what I con- base. sider to be the top must-do’s. Morocco, continued on page 8

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Morocco, continued from page 7

1 Stroll through the maze of ancient streets in 6 Attend a show featuring local musicians and Marrakech’s Medina. Take in the smells, imperial dancers. Nothing helps you get into the spirit more architecture and chaotic ambiance while browsing than one of their cultural shows. pottery, jewelry and textiles in the souks (market- places). 7 Eat a traditional Moroccan feast. Choose from many great restaurants or arrange the meal at 2 Take a city tour. Well worth the time and money, your hotel or riad (traditional guest house in the this tour will take you to visit the main sites such as Medina). The food is scrumptious and plentiful, so area gardens, Bahia Palace, Musée de Marrakech, come hungry!- Ben Youssef Madrasa, and the 16th-century El Badi Palace. 8 Experience a hammam. These traditional baths are unlike most others and will leave you both laden 3 No visit to Morocco is complete without a camel with culture and free from dirt. ride. You will have many options and can spend anywhere from minutes to several days traveling on Whether on a tour, conducting business or simply one. I suggest sticking with a morning or evening vacationing, you will enjoy the diverse landscape, adventure during the summer months. culture and people of Morocco.

4 Break out of the city and head east to the nearby Atlas Mountains (roughly an hour drive). The native Berbers are among the world’s friend- liest and most generous people you can meet. Choose to climb a mountain for a picturesque view of waterfalls and landscape below, stroll through small Berber villages, take an ATV tour, meet with locals, shop for pottery and rugs displayed in road- side stands, and enjoy a small cup of traditional Mo- roccan coffee while soaking up the native culture all around.

5 Hire a private car and driver or take a group tour By Lisa Osborne Blalock to the ancient walled port city of Essaouira. Best Footloose Travel & Tours as a full day excursion, enjoy an afternoon of surfing [email protected] or strolling its medina, which is protected by an 18th century sea wall. Shop for jewelry or handicrafts such Morocco, continued on page 10 as woodwork, woven goods, and other souvenirs.

King’s Palace April 2019 page 9

Express News from Around the World

Wanted: $3 million in fire trucks for Panama World Bank to cut loans to China The Fire Department of Panama requests The World Bank will reduce lending to China, tenders for 4 fire trucks with custom chassis for said the bank’s new president, David Malpass, fire extinguishing, with capacity for six passen- who has been a longtime critic of Beijing and gers or more and automatic transmission. its ambitious One Belt, One Road Initiative (OBOR). The World Bank’s mission is to lift Specs: Four customs cab extinguishing ve- countries out of “extreme poverty.” Despite hicles (cabins designed for fire extinguishing being the world’s second-largest economy, vehicles) are required for use in Latin America, China has benefited from the bank by borrow- with capacity for six or more passengers, ing billions of dollars. As of June 30, 2018, the minimum 5-speed automatic transmission EVS bank’s cumulative lending to China was nearly type. $62 billion for more than 400 projects.

For more information about specs and tender- Express News, continued on page 10 ing, email: [email protected]. Deadline for tenders is May 30, 2019.

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Morocco, continued from page 8

For a taste of Morocco at home, try this easy recipe: Simple Chickpea Side Dish Steam one can of chickpeas for five minutes. Make the sauce by mixing: - 3 tablespoons olive oil - juice from ½ lemon - pinches of both cumin and paprika - 1 clove crushed garlic - 1 heaping tablespoon chopped cilantro - salt to taste Pour blended sauce over steamed legumes and stir to coat evenly. When serving, you may top with a garnish of fresh parsley or cilantro. Besseha! (bon appetit)

Express News from Around the World, cont’d EU government officials cracking down on ansen lines linking Shin-Hakodate-Hokuto VAT tax evasion Station in Hokkaido with Tokyo Station and According to recent news in the UK, govern- the Akita Shinkansen Line between Akita and ment officials are cracking down on online mar- Morioka. ketplace VAT tax evasion. Officials will monitor and flag sellers they discover who fail to pay The Dead Sea Mall to be the first VAT-free the correct EU online taxes and duties, holding mall the hosting marketplace responsible for future For the first time in Israel, the mall will allow unpaid VAT. some 3 million tourists to save money when visiting the sea. Fix coming for cellphone signal loss in Japanese bullet train tunnels Visa no longer required for travel to Brazil For those who fear missing a moment of cell- As of June 17th, 2019, US citizens will no phone contact while riding on a Shinkansen, longer be required to acquire a visa to travel there is light at the end of the tunnel. The to Brazil. The country has been liberalizing Tohoku Bureau of Telecommunications is its visa policy in recent years as the cost for setting up antennas to provide mobile access travel to Brazil from a number of countries has in tunnels on the Tohoku and Hokkaido Shink- dropped.

IBNewsmag TM April 2019 page 11

• In greeting between man and woman, she PROFILE: should extend her hand first if she wants to be greeted. Morocco • When meeting someone the first time, common practice is to ask about marital status, children A Few Practical Tips as well as health/well-being of family. • Tipping is customary throughout the country. for Doing Business • Every gesture should be made with right hand. in Morocco Left hand is considered impure. • Islam is the state religion. Non-Muslims are not Overview allowed in mosques. • Morocco is located in northern Africa, border- General Business Culture ing on the North Atlantic and Mediterranean • Arabic is the official language, but French is the Sea between Algeria and Western Sahara. common business language. • How you dress will affect how you will be • Expect meetings to be arranged around treated. Neither men nor women should dress daily prayer times, Friday, which is the Muslim provocatively. “Sunday”, and Ramadan (see Holidays below). • Business attire for both is conservative. If • Make appointments as much as a month in unsure, note how locals dress. advance, and call to confirm before traveling. • Dress code is more relaxed in more populated • Meetings are formal so wear conservative suits areas e.g. Marakesh, Rabat, Fez etc. and dresses. Shine shoes before meeting. • Rural areas - women should cover arms and • Be prompt but realize hosts may be late. knees. Men - cover shoulders and above • Relationship building is important. Expect small Knee. talk, tea drinking. • Greet and depart with handshakes. • Decision making is slow.

International Business News page 12 April 2019

• love to negotiate, even after signing • Exchange Rate: 1 US$ = 9.61645 Moroccan a deal. Dirhams (4/18/19) • Don`t embarrass your customer/partner. • Labor Force: 12M (2017 est.) • Meetings may be interrupted. • Labor Force Makeup: Agriculture - 39.1%, Indus try -20.3%, Services - 40.5% (2014 est.) Brief history • Major Industries: Agriculture (grains, citrus • 788 - start of rule of Muslim dynasties fruits, grapes, vegetables, olives, livestock, • 17th century - The began rule wine), automotive parts, phosphate mining and (Current royal family are Alaouites) processing, aerospace, food processing, leather goods, textiles, construction, energy and • 1860 - Spain began occupation of northern tourism Morocco • 1912 - France imposed a protectorate over International Trade Morocco • Total Exports: $21.48B (2017 est.) • 1956 - Morocco obtained its independence • Major Exports: electrical machinery and equip- ment, vehicles, fertilizers, clothing and accesso- General ries, fish, vegetables, fruits and nuts, salt, sulfur, • Size: Slightly larger than California stone, cement • Population Distribution: The highest popu- • Major Export Partners: Spain - 23.2%, France - lation concentrations are on the coast and 22.6%, Italy - 4.5%, US - 4.2% ( 2017) throughout the Atlas Mountains • Total Imports: $39.64B (2017 est.) • Population: 34.3M (July, 2018 est.) • Major Imports: crude petroleum, textile fabric, • Population Growth: 0.95% (2018 est.) Popula- telecommunications equipment, wheat, gas and tion growth is declining. electricity, transistors, plastics • Literacy Rate: 68.5% • Major Import Partners: Spain - 16.7%, France • Government: Parliamentary constitutional mon- - 12.2%, China - 9.2%, US - 6.9%, Germany - 6%, archy. Italy - 5.9%, Turkey - 4.5%, (2017) • Chief of State is King Mohammed VI. Sampling of English Language Websites • Prime Minister is the head of government. • Morocco World News - general news - • Capital City: Rabat www.moroccoworldnews.com • The Moroccan Times - general news - Economy www.themoroccantimes.com • Because of low labor costs and proximity to • Morocco Today - general news - Europe, Morocco is building a diverse and open www.moroccotoday.com market economy. It also has a good transpor- tation system and strong banking and finance Sampling of Moroccan Companies sector. However, Morocco still suffers from high unemployment, poverty and illiteracy, especially • Akwa Group - oil and gas exploration and pro- in rural areas. duction, telecommunications, industrial and medical gases, tourism – Casablanca - • It has a bilateral trade agreement with the U.S., www.akwagroup.com and Advanced Status agreement with the EU • - large holding company of King • Many foreign companies do business in Mohammed VI – Casablanca - www.almada.ma/en Morocco. Europeans and US are especially common, especially in urban areas. • Laraki Automobiles SA - high performance sports cars – Casablanca - www.larakiyachtdesign.com • GDP: $298.6 B (2017 est.) • - large and diverse • GDP Growth Rate: 4.1% (2017 est.) agribusiness company - Casablanca - • Unemployment Rate: 10.2% www.lesdomainesagricoles.com NOTE: 100% owned by Al Mada

IBNewsmag TM April 2019 page 13

• Nemotek Technologies - wafer level packaging, Public Holidays (2019) optics and cameras - Rabat - In 2019, Ramadan runs from May 5 to June 4. www.nemotektechnologies.com NOTE: Government owned • January 11 - Independence Manifesto Day • SOMED - large and diverse conglomerate – • May 1 - Labor Day Casablanca - www..ma/en • June 5 - Eid al-Fitr NOTE: Owned by Al Mada • July 30 - Throne Day • - steel production – Rabat - www.sonasid.ma NOTE: Jointly owned by Al • August 12 - Eid al-Adha Mada and Arcelor Mittal • August 14 - Oued Ed-Dahab Day • SOPRIAM - exclusive distributor of Peugot, • August 20 - Revolution Day Citroen and DS in Morocco - Rabat - • August 21 - Youth Day www.sopriam.ma NOTE: Owned by Al Mada • September 1 - Islamic New Year • ONCF - national railway – Rabat - www..com.ma NOTE: Government owned • November 6 - Green March Day • - largest telecommunications • November 18 - Independence Day company in Morocco – Rabat - www.iam.ma NOTE: 47% owned by government By Paul Mastilak InterMark3, Inc. • Cosumar – sugar – Casablanca - www.cosumar.co.ma/en • Lafarge Holcim Maroc - building materials – Casablanca - www.lafargeholcim.com NOTE: Al Mada owns 50%

King’s Mosque, Royal Palace, Rabat

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