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ManageMent www.us- tech.com Navigating the Challenges of the


Americas Market: The Impact of a Vast Geographic Territory


By Lance A. Scott, Founder and CEO, Alliance Technologies G


lobalization and the rapid pace of technological advancement have created extraordinary op-


portunities for entrepreneurs and ad- vanced manufacturing businesses of all sizes. These opportunities have fueled manufacturing competitive- ness that is fiercer than ever and cre- ated new challenges for international advanced technology manufacturers vying for economic prosperity. To create sustainable and prof-


itable long-term growth, these com- panies must transform their organi- zations to address the clear trends toward automation, advanced manu- facturing, and digital marketing to capitalize on these new opportuni- ties, and to navigate the challenges of the Americas marketplace.


The State of the Americas Market Positive macroeconomic condi-


tions, trends toward automation, rela-


tively low loan interest rates for secur- ing capital, and strong incentives to “reshore” have fueled a manufacturing revival in the Americas. At the same time, geopolitical tensions, trade dis- putes, and uncertain longer-term macroeconomic trends have fostered the perception of a volatile U.S. manu- facturing environment. Because of this perception, international compa- nies are often hesitant to explore ex- pansion into the Americas and may miss a chance to fully participate in the manufacturing resurgence. Rapid technological changes,


high costs of doing business, political polarization, and overregulation are only a few of the concerns that com- panies deem as major threats to their investment into an American pres- ence. Yet, despite these risks, the U.S. is perhaps the greatest place in the world for advanced technology manufacturers seeking financial


growth and expanded market share. According to SelectUSA, a gov-


ernment-wide program led by the U.S. Department of Commerce with a mis- sion to facilitate job-creating business investment into the U.S., the United States is the world’s most attractive consumer market with an annual GDP of $20 trillion and a population of over 325 million, offering unmatched diversity, a thriving culture of innova- tion and one of the most productive workforces in the world. As demonstrated by the follow-


ing rankings, the U.S. is positioned as the top country for global invest- ment and the most important for cor- porate growth prospects in the areas of: GDP, global competitiveness, highest research and development expenditures, and foreign direct in- vestment confidence. To capitalize on the opportuni-


ties in the Americas, international advanced manufacturing companies must familiarize themselves with the most pervasive, yet often misunder- stood, challenges that can deter com- panies from accomplishing accelerat- ed growth and profitability, despite the current opportunities.


Vast Geographic Territory The United States and Europe


are actually quite similar in landmass, however, the combined landmass of North and South America is more than four times the size of Europe. Population densities of the two regions vary dramatically, with vast areas of the Americas that are sparsely popu- lated, yet economically vital. These enormous geographic dif-


Navigating the Challenge of the American Marketplace


Helping international advanced manufacturing companies to accelerate strategic growth in the American market through direct operational management and expert guidance.


Getting Started in the Americas


Restructuring Your American Operation


Managing Your American Operations


Advising Your Board of Directors


Accelerating Growth Through M&A


Wherever you are on your journey to expansion into the American market, we can help. Contact us to discuss how we can grow your business, together.


+1 203 226 8895 sales@allianceamericas.com allianceamericas.com


ferences strongly influence site selec- tion, sales channels, travel expenses, cultural considerations, and market- ing approaches. Lease Rates. Companies tend


to place high priority on the cost of office and manufacturing space when selecting a location. While facility ex- penses are certainly a factor to con- sider, it is important not to overlook equally important factors, such as the availability of educated workers, overall quality of life within an area, access to capital, state and local in- centives, and the location’s proximity to targeted sales and distribution ac- counts. Failure to fully assess these considerations may lead to unneces- sary financial and resource invest- ments that can impede growth and lead to misaligned expectations. Access to Key Accounts. Pri-


or to establishing an American-based operation, it is crucial that interna- tional companies research the geo- graphic concentration of their target industry, thought leaders and key ac- count targets. Like Europe, specific in- dustries may have geographic concen- tration of manufacturing, engineering,


and related decision-makers that may influence site selection, travel costs, and sales channel strategy. Without sound knowledge of a target industry’s geographic distribution and key ac- count density, companies may expose themselves to much higher travel ex- penses, inadequate sales channels, and employee frustration, due to unre- alistic expectations. Distribution and Digital


Communication. Many global or- ganizations assume that they can transfer their regional sales channel approach to the North American market, but that can be a costly mis- take. With an expansive geographic area to cover and with the ease of do- ing business becoming increasingly essential, international companies cannot ignore the role and impor- tance of digital communications within their sales channel approach. With Forrester Research forecasting that one million U.S. B2B salespeo- ple will lose their jobs to self-service eCommerce by the year 2020, compa- nies must adapt their sales channel approach to accommodate the real- time, global buying landscape of the Americas. American buyers and en- gineers demand electronic communi- cation and product selection tools that are easy to use, available 24/7/365, and perpetually up to date. Standard products must be available for immediate delivery, and a net- work of respected distribution part- ners is essential to success in many industries. The sales channel land- scape must reflect the buyer arche- types of each company’s particular products and industry. Cultural Differences. Even


within Canada, the U.S. and Mexico, there are notable cultural variations in communication, etiquette and orga- nizational hierarchy. These differ- ences can present a challenge when creating and managing effective multinational teams. Whereas a Euro- pean parent company may have hun- dreds of employees with well-defined and relatively narrow scope of respon- sibility, a typical American operation will have far fewer employees —many with cross-functional responsibilities and decision-making authority. Recog- nizing how cultures differ from those abroad can help global organizations avoid misunderstandings with col- leagues and clients that have distinct attitudes and expectations of organi- zational hierarchy in a cross-function- al matrix organization. Alliance Tech- nologies can provide actionable steps for companies to improve their out-


comes in the Americas. Contact: Alliance Technologies,


LLC, 26 Davis Hill Road, Weston, CT 06883 % 203-226-8895 E-mail: sales@allianceamericas.com Web: www.allianceamericas.com r


May, 2019


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