Crary Industries of West Fargo, North Dakota, is in the agricultural machinery manufacturing industry. It manufacturers farm equipment, potato planting, harvesting and handling equipment, outdoor power equipment, cutting systems, fans and marine (weed pollen) products.
The founder of the company saw a need for combine attachments that helped farmers harvest sunflower seeds. In the beginning there were two owners, two employees, a run-down steel building with little heat, and no running water. However, the company had excellent products thanks to support from its community. Mechanical engineering students at N.D. State University helped design and draft equipment. Moorhead State students were brought in to help market and advertise. Members of Service Corp Of Retired Executives (SCORE) provided purchasing and management insight. The company has grown to 230 employees and $59 million in revenue.
Entering new markets comes with various political and commercial risks. The fear of not getting paid is the major worry. Often, orders are limited or new customers are not added due to this risk. Cash in advance is required and this can lead to the potential customer shopping elsewhere or limiting their order size.
With the assistance and counsel of the Trade Acceptance Group, Crary Industries obtained EXIM’s multi-buyer export credit insurance in 2007. The policy protects the company from foreign buyer nonpayment up to 95 percent of the sales invoice. Crary, comforted with this protection, is more willing to enter new markets and also offer open account credit terms to match their competition and win more sales.
Crary has successfully entered Brazil, Mexico, Australia, China, Colombia, Europe, Chile, and other countries with the support of EXIM. Since 2014, EXIM has supported more than $14 million of its export sales.