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PROJECT PROFILE: AMT--The Association For Manufacturing Technology (2001 award)

The Key to Helping U.S. Manufacturing Technology Firms to Compete in China

As China has become a manufacturing powerhouse, demand there for machine tools and other manufacturing technology products has soared. Large U.S. manufacturing-technolgy companies have been able to get into the market and establish themselves. For most smaller firms, the challenges of selling into such a large market abroad is more daunting.

AMT--The Association for Manufacturing Technology addressed this challenge in 2004 when it opened its Shanghai Technology and Service Center. The centerpiece of STC is the 70 square meter showroom, pictured above. Instead of having to find their own venue to demonstrate products to potential buyers in China, AMT member companies can use the STC showroom.

Use of the showroom for training, technical seminars, and live demonstrations is not the only benefit to setting up at STC. U.S. firms can warehouse machines in China without having to return them to the United States. STC is located in a free trade zone. It is not until a company sells a demo machine that it has to pay import duties and taxes.

STC also helps participating companies with field service. The firms can start by training an STC technician to service their machines. And STC can advise participating U.S. firms on hiring their own technicians.

U.S. firms can also reserve STC office space short-term or long-term for local employees. STC's Market Access and Sales Service, MASS, allows firms to get market intelligence and qualified sales leads. U.S. firms can arrange customer meetings at STC as well.

Scores of U.S. Firms Now Have Their Own China Presence

STC continues to be a great venue where U.S. firms can showcase their machines and other manufacturing-technology products. Perhaps a more significant measure of success is who is no longer warehousing parts and dispatching field service technicians from STC. AMT's policy of encouraging U.S. firms to get their own physical presence apart from STC has been effective.

Scores of U.S. firms have "graduated" from STC and established their own facilities for parts, service, and/or marketing, administration and final assembly. A lot of these firms with newly-established in-country presence now do product demonstrations at their own facility.

Some continue to demo at STC to take advantage of its location in a free trade zone. Most continue to take advantage of the many services STC continues to offer U.S. firms in China. The difference is that these firms are now much more independent and confident about successfully doing business in China.

AMT has since replicated its success with STC in Mexico, India and Brazil. Not long after STC opened, AMT launched the Monterrey Technology Center. AMT followed a few years later with the Chennai Technology Centre. The Sao Paulo Technology and Service Center followed in 2013, part of another successful MDCP partnership between AMT and ITA.

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AMT – The Association For Manufacturing Technology represents and promotes U.S.-based manufacturing technology and its members—those who design, build, sell, and service the continuously evolving technology that lies at the heart of manufacturing. Founded in 1902 and based in Virginia, the association specializes in providing targeted business assistance, extensive global support, and business intelligence systems and analysis. AMT communicates the importance of policies and programs that encourage research and innovation, and the development of workforce-development initiatives. AMT owns and manages IMTS — The International Manufacturing Technology Show.

AMT contact: Ed Christopher

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Related Links

• AMT Home Page
• How to Apply for MDCP Funding
• Contact your local Export Assistance Center
• STC Shanghai Technology and Service Center
• STC Moves to New Facility in 2017

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