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If a tree falls in a northern Wisconsin forest …
Does anyone in China hear it?
By Dustin Block
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Workers
at the Wolf River Lumber Co. in New London rip the lumber to a rough
width before it’s sent out for manufacturing.
Photo courtesy of Aacer Flooring LLC |
You are a tree, a maple to be exact.
Youre one of thousands standing tall in a northern Wisconsin forest.
Its hard to say exactly how old you are, but, for the sake of argument,
lets go with 50.
One things for sure: Youre old enough to know youre
a rare breed.
Maples are common enough, dotting landscapes in the country and city
with equal abundance. But youre different.
Youre a northern hardwood, which makes you harder and brighter
than most maples. It also makes you a wanted tree, destined to be shipped
by truck, train and boat to take center stage for a global audience next
summer.
But, frankly, youre really not in presentable shape, what with
your branches and leaves sticking out every which way. Unfortunately,
that means youre going to have to die.
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Wood
is stacked and ready to be processed and cut at the Wolf River Lumber
Co. in New London.
Photo courtesy of Aacer Flooring LLC |
But, boy, will it be worth it. Youll be cut down by a lumber company
run by the Ort family, which owns and manages 100,000 acres of northern
hardwood in Wisconsin and northern Michigan. Then, youll head off
to a mill to be cut into rough lumber.
From there, its back to the Ort family and its Aacer Flooring LLC
plant in Peshtigo, where youll be steamed in kilns, ripped into
planks, cleaned and manufactured into flooring.
Then youll begin your journey around the world
Aacer, one of the leading producers of athletic floors in the world,
is one of several Wisconsin companies developing a market in China.
Breaking into China represents a massive business opportunity
1.3 billion people use a lot of basketball courts. But the potential sales
come with a major obstacle: sending an entire floor about 8,400 miles
and 10 time zones around the world into a foreign culture and bureaucracy.
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The
logs arrive at the Ort Lumber Co. in New London to be de-barked and
cut into planks before shipment to the Wolf River Lumber Co.
Photo courtesy of Aacer Flooring LLC |
It was always a goal, but it always seemed to be the five- to 10-year
goal, said Mike Mann, Aacers director of technical services
and point person for the companys Chinese operations. With
the Olympics, there was a new focus on international sales, and that pushed
it way up the list.
We started to see success and move more and more resources to that
end.
Aacer has landed several contracts in China over the past two years,
including a 29,000-square-foot floor for Chinas National Training
Center in Beijing and several smaller gym floors throughout the country.
While Chinese companies produce maple floors, Aacer is competitive because
it sells an advanced subfloor system the cushioning under the floor
and it has access to the worlds best hard maples (arent
you proud).
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A Chinese
floor-installation team racks and nails the new floor of the Chinese
National Training Center in Beijing. The planks for the floor came
from Aacer Flooring in Peshtigo.
Photo courtesy of Aacer Flooring LLC |
Mann is in charge of developing Aacers sales network in China and
coordinating all of the details from the Wisconsin end of the international
trade. Hes had to fill out reams of paperwork and take a crash course
in a new culture.
For them its all about relationships, Mann said. We
do our deals, then we go out to dinner.
There, its the opposite. They want to have a relationship
before they want to do business
it usually takes a couple of dinners
and a lot of phone calls.
A critical part of that relationship is meeting deadlines, Mann said.
Theyre like elephants, he said. They never forget.
If you cant get it there, they dont want to do business.
Thats made transportation a critical issue for Aacer as it establishes
a reputation in China. One of the forwarding companies Aacer works with
in Chicago is the Dynasty USA Group, which organizes and tracks shipments
to and from China.
For Cindy Hao, owner of the company, the greatest challenge is tracking
shipments as they move around the world.
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Wisconsin companies doing
business in China
Oshkosh Truck Corp., Oshkosh, was recently
awarded a $5 million contract for six emergency vehicles in preparation
for the 2008 Olympic Games.
Robbins Sport Surfaces, White Lake, provided
a 26,000-square-foot portable basketball floor for the Nanjing Sports
Centre, which hosted the China National Games and is an Olympic
training facility.
Aacer Flooring LLC, Peshtigo, supplied and
installed the 29,000-square-foot wood floor at the National Training
Center for the upcoming Olympics.
The Manitowoc Co. Inc., Manitowoc, is Chinas
largest crane manufacturer.
Husco International Inc., Waukesha, signed
$500 million in long-term Chinese contracts for a wide range of
products in 2004.
Schneider National Inc., Green Bay, began
operating this year as a domestic carrier and logistics services
provider in China.
Rockwell Automation Inc., Milwaukee, is a
worldwide leader in machinery parts, and China has been a key market
for its growth.
TrafficCast International Inc., Madison,
and its Chinese subsidiary TrafficCast China announced the deployment
of the worlds largest cellular probe system in Shanghai.
Harley-Davidson Motor Co., Milwaukee, opened
a Beijing dealership in April.
The Ginseng Board of Wisconsin is working
to increase ginseng exports to China.
Cooperative Resources International, Shawano,
supplies embryos and semen to Chinas livestock industry.
Source: Wisconsin Department of Commerce
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This kind of business is really timing, she said, explaining
how its her job to make sure shipments arrive at each stop on time.
If they miss any deadline, the entire shipment is thrown off.
And increased Homeland Security regulations dont make Haos
job any easier. But she said the heightened security is worth the extra
paperwork.
Any regulations they add are necessary, she said. We
dont have any complaints about that. Its to secure our country,
secure our business and to secure the American people.
But securing you is the top priority at the moment. Now that youre
all cleaned up and ready for the big show, your road from Peshtigo to
China begins, well, on the road.
Once the deal is reached in China, Aacer contracts with its forwarding
company to get you moving. The forwarding company provides steel shipping
containers that are 40 feet long by 8 feet tall and deep. For this order,
seven containers are filled in 45-minute increments with the flooring
loaded onto trucks and driven to Chicago.
The first leg of the trip, all 252 miles to Chicago, places the greatest
restriction on the load. Trucks are limited to 45,000 pounds on the highways,
meaning the containers max out their weight before their volume.
Once the containers reach Chicago, theyre loaded onto a train and
travel about 2,000 miles about a quarter of the total trip
to a port on the West Coast, usually California. The containers are then
moved to a barge and travel at least two weeks and 6,400 miles across
the Pacific Ocean to a Chinese port.
In China, you and your container have to pass through several layers
of bureaucracy before clearing customs and completing the journey.
For you and your fellow travelers, it was a five-week journey costing
about $4,000 per container from Aacers plant in Peshtigo to Beijing,
Chinas second-largest city with 15 million people.
Are you tired yet? Not to worry because therell be plenty of time
for lying down. You see, you are now ready to help form the worlds
stage as part of the courts that will host next summers Olympic
badminton matches.
And if you dont think thats such a big deal, youre
wrong. Believe it or not, badminton is a major international sport, and
China is home to some of the best players in the world.
Millions from the host country and around the world will watch the competition,
and theyll see you, a Wisconsin tree thats far from home but
shining proud.
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Red tape
When Mary Regel made her first trade visit to China in 1993, the
traffic jams in Shanghai were caused by bicycles.
When she went back this year, the streets were packed with cars.
While a lot has changed, international trade to China remains a
challenge, said Regel, director of the Bureau of Investment and
Export for the Wisconsin Department of Commerce. State companies
need to work through a list of approvals from government agencies
to sell products in Chinas massive market.
There are more opportunities for companies, but theres
still a lot of red tape, Regel said.
China is Wisconsins third largest export partner, up from
19th in 1990.
The increase in business for state companies including a
doubling of exports from 2001 to 2005 has lead to new resources
for companies interested in the market.
Groups like the Metropolitan Milwaukee Association of Commerces
China Business Council help companies secure patents, build sales
networks and obtain technical assistance. Those same resources werent
available 10 years ago, Regel said.
Gov. Jim Doyles trade missions to China also helped develop
relationships.
Mike Mann of Aacer Flooring relied on the governors office
for help when Mann recently tried to ship nail guns to China to
help finish a project.
The word guns held up the package, and Mann had to
call on a Chinese commercial officer who had met with Doyle to straighten
out the misunderstanding.
Next time well call them flooring nailers, Mann
said. We wont call them guns.
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