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Tulmar Safety Systems is proving that forging alliances is an excellent strategy to secure business in the U.S. and domestic markets.
"We had tried setting up a manufacturing unit in the U.S. which turned out to be too costly for us. We realized that partnering with key players in the industry was a better way for us to grow our business," says Barney Bangs, President of the company who runs the firm with his partner and VP, Chuck Derby. Tulmar is a fully integrated manufacturer of textile protective products and inflatable safety devices for the aerospace, defense and security industries. The company's products range from collateral equipment for military vehicles to aviation life support equipment to inflatable shelters and tactical flotation for the security market.
"Building partnerships with other companies has definitely enabled us to broaden our products and services and reach new customers," he emphasizes. He gives an example of the firm's partnership with a world leader in safety and securement products for the aerospace, defense and ground transportation industries. "We became their distributor in Canada and set up a repair and overhaul station for aviation seatbelts here. That was good news for customers in Canada because the company could reduce delivery and repair times. It was a mutually beneficial relationship," he says.
Tackle the domestic market first
Before venturing into other countries, Bangs believes that companies should first excel on a local level. "We were able to build our credibility here in our industry, which of course opened doors in the U.S. as well," he says. "When you're dealing with government organizations and large corporations as we do, it's important to have established your name." He recommends that once business owners see success in their domestic market, they can then invest in more infrastructure for their exporting initiatives. "Use your resources wisely and avoid risking your investment," he adds. For clients looking to determine their export potential, BDC Consulting can offer market research and
export strategy services.
Focus on core capabilities
Bangs also believes that success in the global arena requires companies to focus on what they do best. "It's important not to stray from your expertise or your strengths, even if you're doing business in another country. We know that we're good at designing and building complex, customized equipment for the aerospace, military and defense markets. We have a strong in-house R&D and design capability, which helps us deliver more innovative solutions for those industries. In the end, you have to focus on your core business and pay attention to your customers," he emphasizes.
Increase your visibility
To compete globally, Tulmar also ensures that the company gets international exposure in the aerospace, defense and security industries. "We make sure that we're very present at international airline trade shows, for example. So much of our business is based on references. That kind of networking is essential," he says. Entrepreneurs seeking help with international marketing can go to
BDC Consulting for advice.
The road ahead
Tulmar is seeing healthy growth since it was bought out by Bangs and his partner in 2005, a deal that was financed by BDC through subordinate financing. "BDC had confidence in us; they recognized that we had an excellent track record for success, extensive knowledge of the industry and a great chemistry with our customers," stresses Bangs. Tulmar is currently exporting 20% of its products, which is a manageable figure for the company. "I think it's important to do what's right for your company and be sure that your exporting strategy is in line with your overall business strategy. Our approach is to take it one step at a time," he concludes.
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