MC² Market & Competitive Convergence
International marketing
Example of international marketing
| INTERNATIONAL TRADE SUPPLEMENT |
Hudson Valley BUSINESS JOURNAL
April 27, 1998, page 15 |
Newburgh firm founded in 1899
exports textiles around the globe
By SANDRA LEVY
NEWBURGH--"When you drive by, you see a building that's been here a
long time. It looks old and staid. But when you come inside, you see very
modern equipment. All of the textile equipment is computer controlled.
Beta gauges are bombarding the fabric with beta particles. Detectors measure
the concentration that penetrates the fabric," said Ross West, director
of marketing at AFFCO (American Felt & Filter Company), a firm here
which specializes in manufacturing engineered industrial nonwoven fabrics.
Noting that the firm, which was founded in 1899 and employs 200 people,
sells its products to a variety of industries, according to West. "Wovens
are more expensive than nonwovens. With nonwovens you get a very different
three-dimensional structure that makes it an absorption matrix," he explained.
One industry which relies on nonwovens is the diaper industry. "Diapers
have a high absorbency, which is what nonwovens are famous for--their wicking
action. The way the fibers are arranged also makes it an excellent filter,"
said West.
Indicating that most filters are nonwoven, West said nonwoven fabric
filters are used for pollution control for coal fired furnaces, and those
used for generating electricity and incinerators. "The market is big and
it is expanding. The filters are economical and have been proven to work
over time," he said. Maintaining that an increasing number of industrial
plants such as electrical utilities are converting to fabric filters, West
said. "The conversions are all driven by government standards-- the EPA
here and regulatory agencies all over the world."
Crediting partnerships which AFFCO has fostered with clients over the
years with helping the firm's international markets grow, West said, "We've
dealt with many of our customers for decades. We've taken advantage of
those relationships to grow with our customers. Our distributor, Loeffler,
in Germany is a good example. They've expanded into the Asian market. We're
growing with them. They are taking the products into the market. In the
US we do direct selling. We rely on distributors for our international
effort."
West explained that AFFCO tailors its media to meet each country's filter
media expectations. "They have media standards for strength higher than
ours. We've taken that requirement and made our media much stronger and
offer it to U.S. customers also. That's a new growth area for us in the
US."
When asked about the firm's entrance into the Asian market, West said,
"The Asian market was very exciting for awhile. Many customers Loeffler
sells to are experiencing difficulty due to the financial crisis there.
Orders have slowed up. We think it's temporary. We're waiting for it to
have an impact here. It hasn't occurred yet because we have such a long
lead time since we supply the raw material to the people who manufacture
the filter."
Noting that AFFCO's sales personnel are responsible for domestic and
international, West said, "We find what we learn internationally can be
applied domestically and vice versa."
Among the companies which use AFFCO's filter media are SAAB, Chrysler,
Gore, Donaldson, American Air Filter, and Precisionaire.
The
firm is also known for manufacturing media that is used in respiratory
protective masks. "We have to meet all the requirements of NIOSH (National
Institute of Occupational Safety and Health). This makes us a better filter
media company. We have to meet stringent standards. Once you buy the equipment
to ensure you are meeting NIOSH standards, the equipment is very useful
for quality control in other applications. It makes you a better company.
It's expensive to hire people to operate the equipment, who have the expertise
to run the equipment, to understand the results and to maintain the equipment."
Emphasizing that the firm and its distributors' product lines have changed,
enabling expansion, West said, "Our distributor was primarily buying our
product to be used in filters they manufactured. Now they have a new marketing
effort to sell the filter media to many other markets, including medical
and environmental protection. We've expanded to new product areas and our
distributor has also.
According to West, customers used to buy our media and make filters.
"Now they are seeing what we're doing with the media to penetrate new markets,"
he said. "They started as a filter manufacturer and we used to make filters
here, but we sold that filter manufacturing business one year ago. Now
the focus is on selling the media."
AFFCO, which has manufacturing facilities in Newburgh, New Windsor and
Westerly, Rhode Island has found the Internet valuable in expanding its
business overseas. "It has been helpful to us. We're easy to find. We get
lots of inquiries. Sometimes we can handle these on a direct basis or turn
them over as leads to distributors." West added that the capability of
faxing over the Internet has helped reduce the cost of the company's international
calls. "We use comfax, an Internet fax service out of New York City, and
we can do a fax broadcast to help support our distributor or drive our
business," said West. "We can fax to customers in Germany and get responses
and we can do literature fulfillment here and have distribution follow
up on it."
"What helps us internationally is to step off from our strength--and
that is our long term relationship with customers--and communicate with
them. Instead of looking for a new distributor in a new market, we'll see
if an existing distributor has any strength or desire to expand into these
new markets," he explained. "The most important thing is relationships
in our business. Instead of finding a new person for a new market, let's
understand our current distributor and potential they have to branch off."
West said attending Envitec, a large trade show in Germany, with its
distributor Loeffler, was very useful in helping the company learn more
about the European market and its distributor. "It was a great bonding
opportunity. And the competition and customers were there," said West.
The firm is considering attending a fall trade show in Beijing.
The Hudson Valley Business Journal is a biweekly publication reporting
on regional business activities. Mr. Edward Klein, editor. Pine Island,
New York 10969 USA
Sandra Levy is a freelance writer residing in New City, New York 10956
USA
Ross West can be contacted by calling [1] (317) 361-3321 or e-mailing
rwest@mc2link.com
AFFCO's Internet Site is www.affco.com
Loeffler Filter-Technik GmbH, AFFCO's international filter media distributor,
is located in Nettersheim Germany, Telephone: [49] (2486) 809-0
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