International Business News October 2020 Sunnen Products Pressing for more and improved Free Trade Agreements Thomas Dustman Sunnen multi-spindle honing system used Sunnen Products International to size and finish the bores in aerospace Sales Director hydraulic components to required tolerances. Also in this issue: NEW- Spotlight on Exporters – Missouri and Oregon EXIM Exporters of Year / Explore Finland / International News/Finland Business Tips Savino Del Bene – Your Global Solution Savino Del Bene is an international freight forwarding company providing customers with integrated, efficient, cost-effective solutions and multi-modal transportation ser- vices to meet your business goals worldwide. With Fast Tracking across all modes and industries with offices throughout the world. • Customs Brokerage • Air Freight • Ocean Freight • Overland • Logistics Solutions • Information Technology • Insurance In Kansas City, contact Matt Hearer, Branch Manager, at 816.842.6701, ext. 701 [email protected] 1201 Erie Street, North Kansas City, MO 64116 Visit our website for our international certifications and more information - www.savinodelbene.com October 2020 page 3 TM IBNewsmag : cover image Explore Finland Sunnen Products Pg. 2: Savino Del Bene Pg. 3: ToC, Letter According to the US Trade Representative (USTR), the US Pg. 4 - 5: Sunnen Products has 14 free trade agreements in force with 20 countries. Pg. 6: Spotlight on Exporters Not many when you consider our neighboring countries - Mexico with 14 FTAs in over 50 countries and Canada Pg. 7: EXIM Exporters of the Year with 12 FTAs in 31 countries. Pg. 8: Spotlight on Exporters, cont'd FTAs allow US companies to enter countries with lower Pg. 9: Express News duties and taxes, leveling the playing field in order to compete internationally. So, what’s holding us back? Pg. 10: Finland Travel For one thing, we could expand FTAs considerably if we Pg. 11: Profile Finland can ever come to terms with the 27 country EU block. The major hold-ups so far are the trade imbalance, Pg. 12: Profile Finland cont’d, / Transimpex tariffs and Brexit, among others. Pg. 13: Profile Finland cont’d. As of the end of 2018, the US had an overall $115 Pg. 14: Finland Travel cont'd / Profile Finland cont'd billion trade deficit in merchandise and services with the EU. Another major point of tension is the Trump Administration’s focus on unilateral trade measures IBNewsmag such as tariffs. In 2018, the US began applying tariffs of 25% and 10% on certain imports of steel and aluminum, Tel 816.616.7779 Fax: 816.472.0959 under the national security-based “Section 232” trade [email protected] law. The Administration granted some countries exceptions to the tariffs, but not to the EU. 6655 Troost Ave., Kansas City, MO 64131, USA The UK’s pending exit from the EU presents some uncertainty for US-EU economic relations. An EU In God we trust! without the UK would remain the United States’ largest trading partner, but the outcome of EU-UK negotiations PUBLISHER/EDITOR: on their future trade and economic relationship could Frederick Baehner affect US commerce. DESIGN & PRODUCTION: Tom Gilland With the Trump administration’s focus on unilateral www.GillandGraphx.com trade agreements, there are several Asian countries SENIOR EDITOR: Doris Ganser that could become FTA candidates. First up? India appears to be the best bet. CONTRIBUTING WRITER: Paul Mastilak TRAVEL WRITER: Lisa Osborne Blalock Frederick Baehner ADVERTISING DIRECTOR: Tom Renich page 4 October 2020 Sunnen SV-2115 honing machine with custom-de- signed parts loading system attached. Sunnen Products presses for more and improved free trade agreements From selling valve lifter tools around the Midwest though we sell extensively in Canada, Mexico, from a 1916 Hupmobile to over 100,000 precise Germany, Italy and France, to name a few.” machining products sold worldwide, Sunnen Prod- ucts Company of St. Louis looks to free trade agree- Sunnen has been selling in China since 1993, and ments as a needed lifeline for its impressive export although several copy-cat competitors have sur- program. faced, the company’s product quality has continued to propel sales there. In fact, the company realizes over 40% of its sales from exports of its many machines and accessories “Free trade agreements (FTAs) such as the USMCA to more than 80 countries. Its numerous product and others have leveled the playing field in terms of applications range from aerospace to tool & die. duties and taxes allowing us to expand internation- al sales,” Mr. Dustman noted. “Recently, I got the Tom Dustman, International Sales Director, said attention of a US House of Representatives delega- that Sunnen began exporting in the 1930s and tion to press home the need for more FTAs.” international sales have increased ever since. FTAs with Israel, Australia and Chile have boosted The company now sells internationally through Sunnen sales in those counties. a network of 13 wholly-owned subsidiaries and nearly 40 independent distributors. “China remains Another significant market for Sunnen is Brazil as our largest export market,” he explained, “al- where it established a joint venture manufactur- IBNewsmag TM October 2020 page 5 ers’ customers demand precision bore sizing and finishing of manufactured components.” Sunnen does significant business in exporting consumable products such as tools, abrasives and coolants, which wear out as part of the machining process. Training is a continuing effort. “Since the onslaught of the covid pandemic, we have been live-streaming training sessions and video produc- tion for pre-shipment acceptance to ensure our customers that the products are as specified,” he said. “When a customer orders a $500,000 machine complete with tooling, they want to be sure it meets its standards prior to shipment.” The company works with Missouri STEP grants for marketing and training. Its primary facility in St Louis is 400,000 square feet employing nearly 500. Tom Dustman in front of a Sunnen SV-30 honing In addition, it has 75 employees in China, 50 em- machine on the assembly line in the company’s St. Louis World Headquarters holding a GH-Series ployees in Switzerland, and 20 employees in Brazil. honing tool similar to the one that is used in the machine. No wonder FTAs play such an important role in Sunnen’s continuing efforts to grow its export sales. ing facility to offset that country’s excessive import You can learn much more about the company at duties. “We’ve had outstanding sales in Brazil as a www.sunnen.com. result,” he continued. “In fact, we have very little competition in most South American countries.” The hydraulics market is one of the company’s major industries. Selling directly to OEMs and machine shops for the airline industry, automotive, energy, firearms & defense, medical, engine build- ing, A/C & refrigeration, job shops & contract ma- chining, among others are its major applications. “Engine performance in racing and medical infusion pumps depend on precise honing to perform as ex- pected,” said Mr. Dustman in citing the company’s many proficiencies. Intellectual property and trade secrets are of major importance to Sunnen. Bob Davis, Sunnen Global Communications, pointed out, “We have patents on most of our products and trademarks on others. Sure, competitors copy our products, but we’ve been able to maintain our market dominance with better product quality.” Sunnen honing equipment used in manufacturing medical equipment requiring extreme precision used in valves for “Custom designed products are increasingly impor- ventilators, stents, precision tubing and cranial drills. tant,” Mr. Dustman said, “as our OEM and suppli- International Business News page 6 October 2020 Spotlight on Exporters: Missouri Missouri American Ramp Company nents around the world. Nanova is one of Missouri PPE manufacturers as well with recent production Located in Joplin, MO modifications to include manufacturing of disinfec- Contact: Brandon Robinson, Action Sports Specialist tant wipes at their Columbia facility. Business: American Ramp Company designs and International Activities: Have approximately active manufacturers skate parks around the world. They international distributors in Europe, Asia and Africa. continue to drive for growth looking for that next export market. Theirs is an interesting story. Website: https://nanovabio.com International Activities: Have built parks in 40 countries around the world. SCD Probiotics Located in Kansas City, MO Website: https://americanrampcompany.com Contact: Bee Wood, EVP Sales and Marketing Innovaprep Business: SCD Probiotics manufactures products to promote healthy people, plants, animals, and planet Located in Drexel, MO through the restorative power of probiotics. They Contact: Ann Packingham, Marketing Manager export to multiple countries around the globe with many different industry focuses. They continue to Business: Innovaprep manufacturers testing equip- innovate new products as well. ment that can detect micro-organisms in the air, on surfaces, and in liquids. As it can detect the COVID International Activities: Distribution channels in Virus, it can be used for outbreak monitoring of Africa, Asia, Australia, Central America, Europe, COVID-19 virus in places like hospitals, military bar- Middle East, North America and South America with racks, schools, and nursing homes. An important total of 25 distributors worldwide. company making a difference in the fight against COVID. Website: https://www.scdprobiotics.com