Accra-Fab remains in Spokane County, invests in training and upgrades

Accra-Fab remains in Spokane County, invests in training and upgrades

Accra-Fab Inc. (AFI), a Liberty-Lake based advanced manufacturer, recently completed a yearlong training and planning program to strategically position their company for the future. This program, developed in collaboration with local and state partners, included funding for new equipment onboarding, industry required upgrades, and technical, management and leadership development.

Greg Konkol, CEO, said, “Accra-Fab is very grateful to Greater Spokane Incorporated for helping to secure a variety of funding sources for training and technical services. Through both The Strategic Reserve Fund and the Job Skills Program, AFI was able to complete numerous training programs targeted to our supervisors and leads, as well as senior management. We feel that the high quality of the various training programs will position AFI for a stronger future. In addition, we were able to take advantage of technical and infrastructure upgrades that better position AFI in this globally competitive market”.

The company participated in an economic development retention program that connected their staff with resources to assist them in increasing their industry competitiveness, along with improving skill sets across their employee base.  Since the announcement that they would remain in Spokane County, the company has hired an additional 40 employees, bringing their staff count to 200.

GSI advocates for importance of international trade and diplomacy

GSI advocates for importance of international trade and diplomacy

Earlier this month GSI joined the U.S. Global Leadership Coalition (USGLC) and other community leaders to discuss with Rep. McMorris Rodgers the importance of diplomacy and international trade. The USGLC advocates for a healthy International Affairs Budget. Representing the business community, GSI stressed the importance of;

Representatives from higher education, military, and science/research also shared the importance of healthy diplomatic relations around the globe.

Foreign exchange and the value of IC-DISC

Foreign exchange and the value of IC-DISC

GSI recently hosted a seminar on foreign exchange and IC-DISC. In a global economy, foreign exchange is a major component in doing business, and it’s important to hedge risk in order to:

·         Secure profit margins from international sales

·         Reduce exposure to sudden shifts in exchange rates

·         Meet future payments to foreign counterparts by securing cash flow in advance

While many businesses may think that the best option is to receive payment in U.S. dollars, a foreign buyer may very possibly give better terms in their local currency. Thus, if your business is able to manage/hedge the foreign exchange risk, it could result in more profitable sales.

The Interest Charge – Domestic International Sales Corporation (IC-DISC) provides a permanent tax savings for U.S. exporters. A separate entity is formed and the company pays a commission on its export sales to the DISC, reducing the the taxable income of the company and allows for profits to be taxed at the dividend rate as opposed to the corporate tax rate – a potential savings of up to 19.6 percent.

The IC-DISC is available for use by manufacturers, agricultural producers, food processors, architecture and engineering firms, and software companies. Export sales are often larger than many would assume. In addition to direct exports, indirect sales such as components of larger products as well as farm crops qualify.

Surprisingly, only a few thousand companies nationwide take advantage of the permanent tax savings offered through an IC-DISC, which is available to all forms of business organizations, including C corporations, S corporations, partnerships, LLCs, and sole proprietors. If you’re an exporter, or make components which are exported, we encourage you to explore this tool.

Hotstart succeeds in international markets

Hotstart succeeds in international markets

For the past 75 years, Hotstart has helped businesses heat engines throughout the U.S. working with companies like Caterpillar and Cummins. Today, Hotstart is taking on additional business by expanding into target markets overseas, which, along with increased sales opportunities, has brought many new internal developments.

After taking its first steps in international commerce several years ago, 25 percent of the company’s business comes from foreign markets. While Hotstart has seen increased revenue, the benefits of international trade extend far beyond any financial return.

International trade as part of Hotstart’s portfolio has made positive contributions in the number of jobs available at the company, and has increased innovations and critical thinking strategies to solve customers’ requests. It even allowed the company to add new product lines for marine, generator and natural gas solutions.

In addition to exporting products from Spokane, Hotstart imports key parts from foreign manufacturers, due to their quality and price point. Hotstart Marketing Communications Specialist Leslie Czernik says Grundfos pumps, made in Denmark, have a quality and price point that enables Hotstart to provide the best final product possible.

Becoming a player in the international markets didn’t happen overnight. It took research, knowing the market and having the right people in place before Hotstart made its move.

Hotstart worked with the U.S. Dept. of Commerce for market research to see what potential there was in different regions of the world. Based on that report, the company decided it was worth the investment and formed the outline of what international commerce could look like. The company also worked with the Dept. of Commerce using their Gold Key Service to have meetings set up with target prospects overseas.

The company’s vision moved forward into two key markets, Germany in 2009 and Japan in 2011. Today, both locations are led by Mitsuomi Nakamura, Managing Director Hotstart Europe and Asia Pacific. Nakamura started with Hotstart in 2004 and spent several years in Spokane immersed in the company’s culture before moving to Tokyo to open Hotstart Asia Pacific. Hotstart’s international efforts are an extension of their commitment to being closer to the customer. Nakamura and the teams in both international offices are setting the pace for the company’s work in foreign markets.

“Mits is in the right position to lead this effort, and it’s his vision that’s driving this,” said Czernik.

Already being known for their quality work opened doors for Hotstart with overseas branches of companies. It was easy for Rolls Royce, Komatsu, Mitsubishi and others to work with the company as it stretched its legs into new markets. But, adjusting to new markets wasn’t always easygoing.

“Being in Spokane, it is tougher to ship things,” said Czernik. “Marine and oil heaters are heavy and bulky, adding cost to send international shipments from Spokane.”

Additionally, some regions throughout the world sometimes require products to be sourced locally, or have a certain percentage of parts available from the domestic market.

Lena Martin, Sales – Latin America, works with customers in Latin America and Spanish-speaking countries in Europe. One business needed parts available locally to avoid the wait times associated with importing products. Hotstart wasn’t able to open a distribution center in that country so Martin currently works with a filtration system company in that region to represent several different Hotstart product lines to be “local” in the country.

“Sometimes you have to be creative and look at other options to see how you can drum up more business,” Martin said. “We do that kind of thinking, networking and relationship building every day.”

Other challenges of engaging in international trade include building to different environmental requirements, depending on weather extremes. Hotstart can customize orders for customers to meet specifications including paint color, IP rating and temperature rating, among others.

“We’re able to customize our products in a way that doesn’t necessarily impact how we operate here in the building,” Czernik said. “Our production lines are very well supported by our manufacturing engineers and our design engineers.”

After 75 years of innovation, quality, and invaluable customer service, Hotstart continues to make waves in its industry. The company remains committed to being headquartered and doing business in our region while exploring options to increase distribution opportunities overseas.

Thanks to foreign markets and a demand for high-quality engine heaters across the globe, there is a Hotstart office open around the world at any given time.

Do you want to learn more about international trade? See how GSI can help your business at GreaterSpokane.org/international-trade or contact Drew Repp, International Trade & Economic Development Manager, at 509-321-3634.

Regional Voices: Addison Pemberton – Scanivalve Corp.

Regional Voices: Addison Pemberton – Scanivalve Corp.

Addison Pemberton is president of Scanivalve Corp., a Liberty Lake, Wash.-based company launched by his father, J.C. Pemberton, in 1955. Today, Scanivalve is the world’s leading supplier of state-of-the-art Ethernet-based pressure and temperature measuring instruments.

Why he moved his company’s headquarters from San Diego to Spokane in 1995: For the quality of life and beauty of the Pacific Northwest, as well as lower overhead. We could have relocated anywhere in the nation, and we picked Spokane.

How his company has evolved since then: We’ve grown from a machine shop building mechanical pressure scanners to an electronic/software company manufacturing intelligent pressure and temperature products.

Going forward: Spokane has the real estate and labor resources needed to grow our business.

How Spokane has changed during the past two decades: We have better industry networking, and improved commercial airline service.

What Addison considers the community’s greatest assets: The people I work with, the friends my family and I have made here, and the area’s scenic beauty.

What he enjoys showing out-of-town guests: Local lakes – particularly Priest Lake’s Cavanaugh Bay – and the vintage aircraft I have restored.