Exporters to North America must strive to stabilise, reset and recover

NORTH America, just like the rest of the world, has been severely affected by the outbreak of Covid-19. It is an ever-evolving situation across the continent. There are work-from-home requirements in place in the majority of US and Canadian jurisdictions. Travel is heavily restricted, there is some disruption to supply chains and firms are busily working to secure their operations.

While responding to customer cash flow disruption and, in some cases, stalled contract negotiations, there is an apparent fear of the unknown and what could come for those in business. These are, without doubt, extraordinary times that require resilience and adaptability.

While at present, there is little to no certainty in an enterprise, Irish exporters need to move to communicate and reassure their customers in North America.

With this in mind, the focus of activity for Irish exporters should be centred on three pillars — stabilise, reset and recover — which in the immediate term means bracing for the impact of what could come.

Right now, staying close to customers and key strategic partners is crucial, as is being aware of their situation in depth.

The ability to connect not just by sharing commercial challenges but by having a firm understanding of the specific impact of this crisis in the locality of your clients is an excellent demonstration of empathy at a critical time.

Here in North America, the Enterprise Ireland team is encountering instances where close contacts in some US companies are personally and profoundly affected by Covid-19.

Situational awareness is important. Any communication needs to be conducted via telephone or video conference as it is much more personal, compassionate and engaging.

Brevity is key when it comes to the US, and while many people are working from home, they are still time-poor, so it’s important to keep things brief. To quote former US president Franklin D Roosevelt: “Be sincere, be brief, be seated.”

The reset and recover phases will be more successful if companies use the initial ‘stabilise period’ to accumulate as much market and customer intelligence as possible.

The stabilise period is a valuable time to identify where your company and product offering might have to pivot to be ready.

North America is an enormous economy, worth over $25trn (€23trn), and the US is the second-largest single export market for Irish companies. So despite the challenges, there will be a significant market opportunity to develop as we recover and re-emerge.

Therefore, any movement which demonstrates a willingness, where possible, to share some of the burden created by cash flow or credit terms is beneficial.

That said, over-extending your company’s credit terms should be approached very cautiously; this is a rapidly evolving situation and cash flow is critical.

Any Irish companies with an in-market presence and employing in the region, especially those with significant deployment, should be actively exploring the variety of measures and funds possibly available to them from either economic stimulus programmes, or other programmes to support key sector strategic priorities in the market. The seven Enterprise Ireland teams across the region are working on a one-to-one basis with clients through crucial areas and deliverables. For significantly affected sectors, we have delivered, and are working on, a webinar series, bringing client companies, subject matter experts and key opinion leaders together throughout this challenging journey.

We are also working on a video series to help develop digital engagement expertise, which will be available on our Global Ambition website.

While not all sectors are affected equally, there are still opportunities available, and companies are still signing new business by solving problems, delivering innovation and fostering good partnerships.

Not all business has ground to a halt and companies should be advised to pivot effectively.

Utilising the Enterprise Ireland market research centre can be useful to help build valuable market and sector intelligence, or look at opportunities in other North American geographies not previously considered.

North America is a vast economic and geographical landscape, and different states in the US and provinces in Canada will likely emerge from the current crisis at different stages.

Some markets are likely to enter the recover phase sooner than others, but irrespective, our network will be on hand to advise and support Irish businesses as it happens.