Georgia Exporter Spotlight: HYDRO DYNAMICS, INC.
A Q&A interview with Doug Mancosky, Chief Science Officer
County: Floyd
Industry: Manufacturing
Hydro Dynamics, Inc. has developed a patented technology providing breakthrough benefits for industrial processing of fluids. The company’s flagship product, the ShockWave Power™ Reactor, utilizes "controlled cavitation” to solve critical problems for customers in numerous industries.
What motivated your company to start selling internationally?
Hydro Dynamics, Inc. has been exporting since the company began, roughly 25 years ago. At first, our exports were driven solely by customer request and happened only once every few years. However; when the 2008 recession hit, the domestic market slowed down and many of our customers experienced capital spending freezes. We had no choice but to look elsewhere to sell our products. Even though we were very skeptical of exporting because of the paperwork and regulation it implied, we knew we needed to explore international opportunities to make up for the losses we had accrued. We have been actively involved in international business ever since, and about 20% of our current sales are international. Despite our concerns about exporting early on, we have found that over time the process has become easier.
What is the biggest lesson your company has learned about exporting?
The biggest lesson we have learned is the importance of having a local presence in the international markets we target. It is invaluable having someone on the ground to guide us through customs and help us better understand the culture and customer-base in the local market. A local in-country representative can also be very helpful in terms of finding potential buyers and making travel arrangements to meet with them in-person.
There is a tremendous amount of cost-effective resources to help companies establish a local presence in a foreign market. As a Georgia company we were able to take advantage of the services offered by the Georgia Department of Economic Development (GDEcD), which provided us a physical presence abroad at virtually no charge.
How has GDEcD’s International Trade Team helped your company?
Looking back, we wished we knew about GDEcD’s international trade team sooner than we did. When we first started exporting, we experience a lot of pain points in terms of paperwork and meeting compliance with foreign regulations. We simply were not aware of the programs and assistance available through GDEcD, which significantly eased the exporting process for us.
Shortly after getting in contact with GDEcD’s trade team, they connected us with the state’s representatives in foreign markets we were interested in, such as Canada and Korea. Through these connections we were able to establish a local presence and find in-country reps for our product.
Our product is not always the most straight forward piece of equipment to represent since it is relatively niche. Typically, this makes choosing a rep challenging for us, especially when looking abroad. However, the state’s representative office in Canada connected us with someone who was already working with Georgia companies. After the initial introduction, we quickly realized it was a good fit and signed them as our official Canadian rep. As a result, our equipment is now being sold throughout the country.
What other outside resources have been helpful in achieving success internationally?
Outside of the resources offered by GDEcD, there are a number of organizations that have helped us in terms of exporting. The Metro Atlanta Chamber of Commerce hosts a grant competition every year called the Metro Export Challenge (MEC), which provides funding to help offset costs related to exporting. As a 2016 MEC winner, we used the grant money to travel to the International Brewing Conference in Denver, Colorado, a tradeshow we normally are not able to attend. However, because of this opportunity, we met some of our most important international customers leading to significant sales for our company.
What advice do you have for companies that are just starting to export?
Don’t be afraid to export. While initially it may seem challenging, it can actually be quite rewarding both financially and personally. Exporting has been a way for us to take advantage of markets and applications for our products that for whatever reasons have fallen on difficult times in the domestic market. Just because things are challenging in the United States for a particular product or service, does not necessarily mean there aren’t better opportunities to be found in another market abroad. For instance, although the craft beer market is perhaps reaching maturation in the United States, there are other countries that are just beginning their cycle/explosion of craft breweries and exporting gives our product another life in those markets. From our experience, exporting is an opportunity to take something that you’re already good at and find even more people to share it with.
What has been your biggest export achievement?
Our company is very pleased with the number of countries we have been able to export to each year. In the beginning, it seemed like markets such as China, India, Costa Rica, and New Zealand were out of reach, but with patience and dedication we have come very far in our international achievements.
To learn more about Hydro Dynamics, Inc visit www.hydrodynamics.com.
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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.