www.b2billinois.
com The Weekly Business-to-Business Forum
Four Factors that will
Continue Export Sector Surge
Dr. Chris Kuehl | B2B contributor
There have been new records set in exporting every month for
over two years, and in July, the United States even managed to make
some inroads on its trade deficit. The reason for all this activity is
obvious—a weaker dollar has meant that virtually every U.S. good is
being sold overseas at a 30 percent discount. This helps manufac-
turers get past high tariff barriers, consumer resistance, and compe-
tition to build volume in foreign sales. Will the current U.S. export
boom continue, even when the weak U.S. dollar recovers?
Many ask, “What happens
when the dollar starts
to recover?”
Helping Local Business to Bloom:
Governors State University’s CenterPoint and College of Business and Public Administration
Eric Matanyi | B2B contributor
Bruce and Lee Ann Bultema had an exceptional spring season at
their Beecher nursery, Windmill Acres. The plants they nurtured
throughout the winter flew off the greenhouse shelves as customers
from Kankakee to Orland Park and from Crown Point to Joliet
sought both popular and hard-to-find bedding plants for their
homes.
As business bloomed, the duo recognized the need to expand.
They visited The CenterPoint for Entrepreneurs at Governors State
University seeking funding to help double their greenhouse space.
As the CenterPoint consultants evaluated the business’ financial
statements, they discovered that the Bultemas were having difficul-
ty with their financial statements.
A closer look revealed that the entrepreneurs had always managed
their books by hand and weren’t able to successfully transfer the
records into QuickBooks accounting software. In fact, the Bultemas
didn’t know quite how their finances looked for the year.
At the same time, Dr. Tony Fontana, accounting professor in the
university’s College of Business and Public Administration,
Ask the Professor
Common Sense and Nonsense—What’s a Manager to Believe?
Dr. Don Daake | B2B contributor
There is no shortage of business advice today. Daily, managers
are bombarded with books, articles, training company brochures,
and consultant proposals, all promising solutions to whatever ails
their business. Eminent Stanford University Business Professors
Jeffrey Pfeffer and Robert I. Sutton point out that, not only is there
an abundance of advice, but that most of it is not really new or par-
ticularly useful. Pfeffer states “instead of being interested in what is
new, we ought to be interested in what is true.” Sutton chimes in,
“If you think that you have a new idea, you are wrong. Someone
probably already had it. This idea isn’t original either. I stole it from
someone else.” Pfeffer and Sutton estimate that there are over
30,000 business book titles in print and that 3,500 titles are added
each year, in addition to the thousands of articles in journals, mag-
azines and newspapers.
As managers we habitually crave simple solutions to complex
problems. Authors and consultants all seem to have their list of four,
five, seven or even 10 recommendations that if we but follow will
take us to Business Nirvana. Now that is not to say that managers
don’t need fresh ideas and new perspectives, but as Pfeffer and Sut-
ton point out, a lot of what is recommended is half-truth and sim-
ply non-sense. Much of the expert advice is contradictory. As a busi-
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Granted, this may take a while, but recently the Euro sank a lit-
tle as analysts in Europe noted that its central bank is getting a lit-
tle nervous about growth. So, will there be an export boom when
the dollar regains some of its luster?
Here are four key reasons why there will still be export growth,
regardless of the relative Euro and dollar strength:
Energy Costs
The current system of export trade is predicated on costs of
transportation as they were 10 years ago. Those days are gone,
which will place more emphasis on being closer to one's supply
chain. That means U.S. manufacturers will see more business
across the borders of the United States—both coming and going.
The nations of Latin America will become more complete cus-
tomers for the United States.
Increased Sophistication of
U.S. Manufacturers Overseas
Companies that started with some tradeshow and
Internet orders have often taken this to the next
level. There are sales organizations in place, con-
tacts have been made, and overseas consumers
now have experience and familiarity with U.S.
products. The weak dollar allowed a foothold,
and companies have leveraged it from there.
Changes among
Foreign Manufacturers
Changes have occurred in countries that
have evolved as manufacturing bases. They are
experiencing the challenges of development—
higher inflation, shortage of qualified workers,
shortage of management skill, and societal
demands that could affect their competitiveness.
The advantages that these countries once had in
terms of production costs have been eroding, bringing
these nations much closer to United States and European
costs than before.
More Money in Overseas Markets
With more money in overseas markets than there used to be,
approached the center when looking for a real-life project to use for
his Cost Accounting class. Fontana had contacted CenterPoint on
several previous occasions looking for projects for his upper level
classes, and had become a strong proponent of the connection
between CenterPoint and the college.
“CenterPoint is a vital resource for the faculty and students of the
business school. We’ve had great success exposing students to real-
life experiences through collaboration with the center,” Fontana
said. “They learn what accountants really do for their clients. In the
past, some students have even found jobs through these projects.
With CenterPoint’s reach in the community and their willingness to
assist during the project, we’ve always had a great experience for the
students and real value for the clients.”
GSU students Babatunde Akintayo and Naveed Karim, with
Fontana’s help, investigated and identified some of the accounting
issues and even offered helpful hints on how to operate the business
more efficiently. They helped the Bultemas make sense of Quick-
Books and set up a system for costing inventory—which is difficult
due to the long growing season and the somewhat hidden costs of
growing product.
ness professor myself, and someone who earlier in my career devel-
oped hundreds of training programs that educated thousands of
managers, I honestly believe that there is great value in learning
and applying knowledge. But I agree with Pfeffer and Sutton that we
must approach the myriad of suggestions with skepticism. Further-
more, we should demand evidence that what is being recommend-
ed actually works in the long-term. It is one thing to go to a moti-
vation seminar, for example, and feel good for a day or two, but
quite another to permanently change behavior or the culture of our
organization.
So how should you go about judging what is good and worthy of
your time and attention? At the risk of falling into my own trap of
giving a list, let me suggest four criteria that you can apply.
1. Consider the source. What is the background of the author or
consultant? Do they have 30 years of experience, or one year of
experience 30 times? Is the advice they are suggesting based on
solid experience AND research, or is it just the latest fad? For exam-
ple, the very readable and popular book Good to Great by Jim
Collins was based on a multi-year research project and represents
thousands of hours of research time. Thus it provides invaluable
advice based on the type of evidence Pfeffer and Sutton condone.
2. Beware of any book, seminar, or article that provides easy
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global consumers are interested in and have the wherewithal to buy
U.S.-made products. The old markets used to be confined mostly to
Europe, but now there is demand from Latin America, South Asia,
East Asia, and even parts of Africa.
The ability of consumers in most of the world to afford U.S.-made
products has expanded dramatically, and also created a whole new
set of opportunities in countries that only played marginal export
roles in the past.
Dr. Chris Kuehl is an economic analyst for the Fabri-
cators & Manufacturers Association, Intl. (FMA) based
in Rockford, Il.
“It was exciting to really help a business by applying what we had
learned in class. I really understand some of the accounting issues
better because of the project,” said Babatunde.
With their financial statements up to date, the CenterPoint coun-
selors were able to prepare the Bultemas to approach a bank for
financing.
“The combination of CenterPoint’s resources and the assistance
from Dr. Fontana’s students really helped us get a handle on our
business. I’d still be trying to make sense of our finances if it wasn’t
for them,” noted Bruce Bultema.
Eric Matanyi is director of public affairs and marketing
for GSU. For more information on The CenterPoint’s
free business consulting services, call 708.534.4929 or
visit www.centerpointgsu.com. Clients in Kankakee or
Iroquois County interested in services can obtain
information by calling Ken Crite of the Illinois SBDC at
Kankakee Community College, at 815.802.8220.
answers or “breakthroughs” that are claimed to be unique. Virtu-
ally all business advice needs to be placed in the context of what has
already been proven to be true.
3. Pfeffer and Sutton suggest that rather than celebrating indi-
viduals and management gurus, we celebrate communities of
smart people and collective brilliance. Judge the advice in light of
what your colleagues, peers, and even competitors have found to
work.
4. Look to advice that not only focuses on what works but clear-
ly states what doesn’t work. Too often books and articles focus on
what it takes to win. It is equally valuable to learn what it takes to
avoid losing.
In summary, when it comes to vetting the vast amount of ideas
and advice available to us today, be vigilant and skeptical without
becoming cynical.
Dr. Daake is a professor of business and director of
the Donald H. Weber Leadership Center at Olivet
Nazarene University. He can be reached at
ddaake@olivet.edu or 815.939.5137.
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