Georgia Exporter Spotlight: Blue Force Gear

A Q&A interview with Doug Duggan, Director of Business Development

County: Chatham

Industry: Defense

Blue Force Gear is on the forefront of pioneering technological innovations in the defense and security industries. The company has revolutionized load carriage and weapon carrying establishing the world's standard in weapon slings and the world's lightest, MOLLE compatible load carriage.

How long has your company been exporting?

Blue Force Gear was founded in 2004 but took time to focus on expanding domestic business before looking at international opportunities. The company started making international sales around 2009, but it wasn’t until I joined the team in 2011 that we really started going after international markets with intention. 

What motivated your company to start selling internationally?

When I started with Blue Force Gear, I came with a good deal of experience selling these types of products internationally so I knew there were opportunities out there. At that point, we already had dealers in Japan and Canada so I focused on countries with the most potential. I knew of a strong distributor in the United Kingdom that aligned well with our product lines, so that’s where we started. We later expanded to other countries in Western Europe and worked on growing our presence in established markets like Canada where we now have approximately 20 dealers. 

What are some lessons your company has learned about exporting?

There’s a lot to learn be a successful exporter. By the time I came to Blue Force Gear, I already had a good understanding of differences between domestic and international strategy, but over the years I’ve learned valuable lessons about the risks and costs associated with exporting. For example, sometimes you need to re-evaluate pricing models when selling a product internationally due to higher shipping costs and fluctuating foreign currency exchange rates. Some of our products are not very expensive, but when selling internationally we need to either sell at higher volumes or reconsider unit pricing to offset the increased fixed costs of international shipping. 

You can use third-party vendors to hedge against foreign currency fluctuations, but early on we adopted the practice of selling in USD, which avoids an addition layer of complexity. Selling in USD is pretty standard in the defense industry so our company hasn’t run into issues on that front.

How has GDEcD’s International Trade Team helped your company?

We’ve had a great experience working with GDEcD’s trade team. We first started using GDEcD’s export services in 2013 when we came into contact with one of your senior international trade managers, Taube Ponce. The biggest benefit has come from attending international trade shows with GDEcD. Booth space at these events is very expensive and therefore not always financially viable for a small business. Being able to co-exhibit in a Georgia, USA booth gives us a more affordable entry point for high-profile international shows. Many of the events we’ve attended with GDEcD have resulted in several long-term customers. 

GDEcD’s international representatives have been a great resource for finding and setting up meetings and vetting potential leads prior to a show. We also enjoy having the option to go to GDEcD for due diligence reports and market research. 

The collaboration between GDEcD and other export promotion agencies like the U.S. Commercial Service (USCS) has been a huge asset as well. I usually meet up with our local USCS trade specialist once a year to check up on any leads he may have for Blue Force Gear. Keeping the door open to conversation with several different government agencies makes it easier for us to be successful abroad. 

What advice do you have for companies that are just starting to export?

You need to know your customers and do your due diligence. Having a strong network of industry contacts that can help vet potential buyers is incredibly valuable. It also helps to have a vision of your ideal partner before you start the search. Not all representatives and distributors are created equal – you really want to put in the time to get to know the potential players in each market and make sure you’re doing business with the one that is the best fit for your company. 

Understanding export compliance is also important for new-to-export companies to consider. For Blue Force Gear, most of our items are EAR-99 so they don’t require a license; however, it is crucial to understand export controls and make sure your products are in compliance with federal export regulations. 

What has been your biggest export achievement?

It’s always really satisfying when our company wins an exclusive business deal. For example, within the U.S. we supply the entire U.S. Marine Corps and the entire U.S. Air Force Security Forces with Blue Force Gear slings for small arms. As far as exporting goes, we are now equipping the entire French army with our weapons slings, and we just made a deal with a rifle manufacturer who will be supplying all of the Estonian army with our slings. Knowing that an entire organization is using our product exclusively is very rewarding and we are really proud of those achievements.

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Are you a Georgia business looking for help growing your international sales? Find out how Georgia’s International Trade Team can help at Georgia.org/Trade.