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International

Printable Version

Upper Midwest Businesses Plan for International Expansion

Winter 1997

Fredrikson & Byron recently announced the results of our fourth annual Survey of Executive Opinion, focusing on how Midwest businesses are approaching the international business marketplace. Our interest in doing the survey was sparked by trends that indicate that Minnesota businesses play a leadership role among U.S. businesses pursuing opportunities in global markets.

The survey focused on mid-sized companies headquartered in Minnesota, North Dakota, South Dakota and western Wisconsin having revenues of $25-500 million. Nearly three-quarters of respondents were CEOs or presidents of companies. Among the highlights:

  • Nearly three-quarters of respondents say they expect their international business to increase significantly or moderately in the next five years. The primary reasons cited for an increase in international business include overseas growth potential; aggressive expansion plans; and impact of limited or moderate development in their current markets.

  • More than half the respondents are currently doing business in Canada and Mexico; and more than 40% are currently doing business in the United Kingdom, Japan, Australia, and Germany.

  • Brazil, Argentina, India, China, as well as Poland and Russia, were cited by respondents as the most popular choices for future business expansion.

  • The greatest perceived benefit of doing business internationally is a larger market for goods and services (Figure 2, page 2). Competitive advantage and a diversified customer base were also cited as major benefits by nearly half the respondents.

  • Almost all respondents (95%) are exporting goods.

  • Reasons for expanding into international business markets were varied, but more than 91% did so in response to requests from abroad; 85% did so to diversify their customer base; and 54% indicated that the domestic market is "saturated" or offers only "low growth" opportunities.

  • Nearly one-quarter of respondents consider their international business structure to be mature, consisting of a worldwide international program with defined strategies already in place.

"The survey results confirm our belief that international business opportunities will increase for our clients in the Midwest," said John Stout, co-chair of the International Law Group. "We have worked internationally for more than 10 years, and our practice group has the language skills and knowledge of regional issues, cultures, economies and economic policies to assist clients who wish to enter or are already doing business in the international marketplace."

Fredrikson conducted the survey in collaboration with the independent research firm Anderson Niebuhr & Associates. The survey was mailed to the CEOs of 1522 companies in the following industries: mining, construction, manufacturing, transportation, communication, utilities, wholesale and retail trade, finance, insurance, real estate, and other selected service organizations. In all, 177 interviews were completed via mail or fax, reflecting an overall response rate of 12 percent.