There is no such thing as an international market, at least not to Bill Sanford.
“We in the United States are often so arrogant,” says Sanford, president and CEO of Steris Corp. “We (think we) are the focal point and everything else is international.”
That centrist attitude is a reason many companies aren’t more successful exporters. There is a German market and a Japanese market and so on, Sanford told a gathering at the World Trade Center Cleveland annual meeting last month.
Having a clear plan and an understanding of the needs of foreign customers is essential. When Steris executives look to tap new markets they make sure they learn about the different business styles of each country.
“We want to sell the customer how he or she wants to be sold,” he says.
Steris transacts business in 50 countries and maintains facilities in 15. Before any new project is formally proposed, all international issues must be addressed, Sanford says, or it will not be considered.
Having the proper attitude also helped the company reach new markets. Steris’ founders planned to make it a global corporation “even before there was a Cleveland company.” The strategy from the beginning, back when it was only a good idea, was to become international. Today, the company has worldwide sales of $800 million and a market value exceeding $1 billion.
Steris Corp. began life 12 years ago as a fairly good idea to use chemicals to destroy bacteria, Sanford says. Now, “our company has more ways to kill little tiny bugs than any company in the world.”
Reaching the rest of the world is a very important goal for Steris. Slightly less than 20 percent of its total revenue is generated from business outside the U.S. That figure is expected to grow, Sanford says.
But, there are several factors that can hinder expansion onto the world stage. The slowdown in the Asian economy a few years ago put many of Steris’ large projects in those markets on hold. In the pharmaceutical industry, several projects were postponed as drug company mergers prompted reassessment, Sanford explains, emphasizing the projects were not cancelled, just delayed.
While there is a great deal of opportunity for companies of all sizes to do business in foreign markets, getting into those markets can be challenging. Many governments create regulations that hamper American exports and protect their own companies’ interests.
One thing that has made it easier is the creation of the European Union. Although it can get quite complex, Sanford says, overall, if a product is accepted in one EU country, it will be accepted by all EU nations. Spain and Italy, depending on the product, are the easiest countries through which American products can enter the market.
But however it’s accomplished, Sanford plans to ensure Steris maintains its focus.
“We are absolutely committed to the markets outside of the United States.”
How to reach: Steris, (440) 354-2600
Daniel G. Jacobs ([email protected]) is senior editor of SBN.