Hernon, Manufacturing Growth Through Exports

Exporting has been part of the business plan at Hernon Manufacturing, a custom formulator of adhesives, sealants, and precision dispensing and curing systems, since 1999. The company's president, Harry Arnon, believed there was unrealized potential in international markets, and recently decided to refocus company efforts and make exporting a top priority for Hernon's growth strategy.

Planning for Successful International Marketing Entry

To find and effectively enter the right foreign markets, Mr. Arnon turned to the FSBDC at UCF for assistance with an aggressive international growth strategy, and was matched with an opportunity to participate in the Export Marketing Plan Services, provided in partnership with Enterprise Florida, Inc. and the U.S. Commercial Service. Enterprise Florida partnered with the Florida SBDC Network to offer customized export marketing plans to Florida manufacturers and professional service providers.

After meeting with FSBDC at UCF's International Trade Specialist, planning commenced immediately, and soon after the export marketing plan was delivered to Mr. Arnon. The plan provided the full gamut of necessary information for successful international market entry: a thorough export readiness assessment, an industry analysis, a market analysis with target market recommendations for Hernon's products, a review of overseas trade opportunities, and an action plan.

The Golden Key

Along with the plan, the company was eligible to receive a grant for a single standalone Gold Key with the U.S. Commercial Service. The company decided to utilize the Gold Key in Italy and also added France, two recommended markets from the plan, and in early 2013 traveled to those countries for one-on-one meetings with pre-screened, qualified buyers. The company reported $1.37 million in export sales worldwide as a result of the Gold Key Matching Service.

"The Gold Key offered us opportunities that would not otherwise materialize for Hernon Manufacturing Inc. We would not have participated without the grant. We met with 2 companies in France and 6 companies in Italy. The consulates were immensely helpful in selecting suitable companies that match up well with us and with setting up appointments and simple translation services. Sales in these 2 countries can increase our production staff significantly," commented Mr. Arnon.

Award-Winning Growth

Hernon anticipates total export sales through the next 24 months to be $3.226 million. Hernon's products are now found in over 27 countries worldwide and the company has been recognized for its exporting efforts, most recently winning the 2013 SBA Small Business Exporter of the Year Award and the 2012 Exporter of the Year award by ThinkGlobal, Inc.

Hernon began working with the FSBDC at UCF in 1998, assisting with their export marketing strategy and providing in-depth consulting. Over the years, Mr. Arnon continued to seek advice, participating in the Small Business Institute program, CEO Xchange, Growth Acceleration Services, and most recently the Export Marketing Plan services. Mr. Arnon looks forward to continuing to work with the FSBDC at UCF to further expand internationally.

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The FSBDC export marketing plan has been instrumental in the success of Hernon Manufacturing. Small business has neither the budget nor the experience that the export marketing plan and FSBDC can offer. For Hernon Manufacturing, the plan laid out the road map translating in the best return on investment concentrating where more business potential is available for our products.”

Harry Arnon, President — Hernon Manufacturing