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Montana to Mexico: Easing Export Flows
Trade & Forfaiting Review Feb. 1999 issue, p.23 Far removed from the traditional trade routes of the world, environmental technology firms in the rural, Rocky Mountain state of Montana have found an ally in MSU TechLink to combat flat growth in the mature US market for environmental technology goods and services. TechLink, the technology transfer arm of Montana State University (MSU) in Bozeman, strives to assess industry needs and to remedy obstacles faced by individual firms. One obstacle often cited by firms is the small size of the market in Montana and the state's remoteness. A related obstacle to penetrating out-of-state markets is that isolated, rural companies lack credibility in highly competitive high-tech fields. TechLink helps these mostly small but innovative firms find and enter appropriate foreign markets. Although some of the around 230 firms in the environmental industry in Montana are not ready to compete internationally, many look to TechLink for assistance in expanding their presence in global markets or for making their inital international leap. TechLink as a bridge Small firms with talented staff and cutting edge technologies often lack resources needed to bridge the isolation and credibility factors. TechLink helps these firms by facilitating their use of networks, contacts, information, and business development grant programmes. Because TechLink only promotes firms with reliable technologies and qualified professionals, the credibility of small firms is enhanced through their association with TechLink and the university. One firm in Gendive is SRS Crisafulli, a manufacturer and marketer of pumping and dredging systems for handling waste, wastewater, sludge, hazardous waste and stormwater runoff. It worked closely with TechLink to prepare a marketing study to investigate and evaluate 10 Southeast Asian markets. The results, combined with TechLink's sponsorship, enabled SRS Crisafulli to receive a grant from the National Association of State Development Agencies (NASDA) to undertake an exploratory trip to Asia. SRS Crisafulli has since successfully identified and trained product representatives and distributors in Thailand and Indonesia. Crisafulli's Asian and other international ventures led to its winning the '1998 Export Marketing Program Award' from the Governor of Montana. TechLink is working with nine Montana environmental technology companies committed to entering the Mexican market. TechLink has formed alliances with multiple, carefully selected support organizations to strengthen these efforts. MSU's partner Mexican university, Autonomous University of Baja California (UABC), has business development specialists in Ensenada and Mexicali. These specialists are working to identify matches between the needs of Mexican firms and municipalities and the capabilities of Montana firms. Hydrometrics, a Helena company with patented technologies for the removal of nitrates, arsnic, and sulfates, is one firm taking advantage of the collaboration and alliances set up by TechLink to promote Montana business in Mexico. With TechLink's sponsorship, Hydrometrics also received a grant from NASDA to pursue business opportunities from a recently established office in Hermisillo, Mexico. One of those opportunities, identified by UABC business specialists, is being negotiated. The Global Technology Network (GTN), a federally funded trade lead and matching programme that facilitates the transfer of US technology and services, is also a partner on the project. GTN has a network of international trade advisors who identify business opportunities in 33 countries. TechLink has set up meetings between the nine Montana companies and a GTN advisor who is helping to qualify prospective clients in Mexico and providing access to GTN funds to bring prospective business partners togther for much needed face-to-face meetings. Electronic help Another way that TechLink raises the visibility of Montana firms is through the creation and maintenance of an Internet site which is providing contact information and a brief profile of environmental technology companies in Montana. Companies working or intent on working in Latin America will soon have the option of having a bilingual profile with translation services provided by TechLink. TechLink also supports local companies through international trade workshops and facilitating one-on-one meetings with international marketing specialists. By using interactive teleconferencing technologies available on MSU's campus, local companies can conduct preliminary meetings with prospective international business partners through video conferencing before investing in expensive foreign travel. TechLink also has a programme that can place an MSU student intern in the Mexican office of Montana business partners to facilitate communications and conduct marketing activities. Montana environmental technology companies that have worked closely with TechLink and have poised themselves for entering the Mexican market will have the opportunity to travel to Ensenada, Mexico this spring. TechLink and GTN are co-sponsoring a matchmaking event that will bring togther business, legal, and financial experts from the community, and most importantly, Mexican businesses or municipalities that have brought 'real' projects to the table. Too often business deals in Mexico falter because projected financing cannot be secured. GTN and UABC specialists will carefully screen prospective business partners to ensure that all or most of the needed financing is in place. Although Montana has not been on the traditional trade route of international commerce, MSU TechLink, its partners, and Montana environmental technology firms are finding new inroads to the global marketplace.
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