When is the Right Time to Expand and Have a Vision to the Global Markets?

 

The world’s economy is growing, but is very diverse in the different speed and direction of each country. This makes it more and more necessary for smaller companies to look around the globe and take note of the advantages of resources, market changes but also currency exchange rates. This combination provides a stable growth path to secure local business and for the development of jobs.

Often companies look first to expand their markets through additional sales in other countries. This might be difficult with the strong dollar at the moment, though it opens the door for overseas manufacturing and footprint through merger and/or acquisition.

This allows global players to reduce their cost through an alternative manufacturing site in addition to the home production. This also helps to balance fast moving changes in the global markets.

If value of the dollar weakens in the near future, global players are able to react quickly, manufacture locally, therefore selling those products both locally and worldwide.

Manufacturing in a foreign country can seem as though investments are flowing outside the home country and being lost from the local economy. Often the opposite is the case. A global footprint makes a company stronger, less sensitive for currency fluctuations and more stable to survive in turbulent times. Even spurring potential growth outside the U.S will assist to strengthen its position in the companies home country.

All this being said, it is strongly recommended to draft a long term plan for going global and therefore securing the local jobs.

Textilplan GmbH, Peter Resch, CFIA Member can certainly support you in:

• Finding the right location (depending on whether it should be a sales organization or even manufacturing?)
• Setting up a company with all legal needs and paper work. Finding the right legal form
• Finding companies to merge or to take over
• Overall Strategy and Project Planning
• Training of/about cultural differences
• Human Research
• Legal Advice (not as lawyer, but as consultant knowing the legal rules in Europe and others)
• Introduction and recommendation of necessary experts (lawyers, CPA, government, etc)
• Financial Advice
• Market Analysis, Sales Strategy
• Support and consultancy of all items that my arise with such a venture

Textilplan GmbH can provide the expert advice and guidance on every aspect necessary to establish a company overseas from zero to complete.

Peter Resch CEO
TEXTILPLAN GmbH
Rathausplatz 11
84579 Unterneukirchen, Germany
Telefon: +49.8634.251-7593
office@textilplan.com / www.textilplan.com

About American Floorcovering Alliance
The Council of Flooring Industry Advisors (CFIA) is sponsored by the AFA located in Dalton, Georgia, the flooring mecca of the world. AFA was formed in 1979 to promote the floor covering industry. AFA, a not for profit association, promotes the industry’s products and services to the world, and educates the members and others through seminars, press releases, and trade shows. Any company may become a member in the association if they are in the floor covering industry or a floor covering related industry. The association is financially supported by membership dues and trade shows. AFA is governed by a board of directors elected from within the membership. A wide variety of services and benefits are offered to assist the membership in promoting their business and growing the entire industry. 706.278.4101, americanfloor.org