--What is the size of your Chinese operation?
Our overseas operations and manufacturing are a very important part of our business. A substantial percentage of burton + BURTON imported products come from Chinese ports.
We first went to China in 1986 to explore the possibility of international manufacturing. We began production over there soon after.
We contract with individual manufacturing plants all over China. Most of them have been working with us for a long time, so we have established close business ties with them.
--Do you have or utilize facilities in countries other than China?
Yes. We manufacture in the Philippines, Korea, Taiwan, Sri Lanka, Mexico, and India.
We have an entire Imports department that handles all of the complexities of manufacturing overseas. They are knowledgeable in the regulations and customs of the different countries in which we operate. They are responsible for managing our freight, quality control of incoming product, and new product development. They understand the nuances of Asian culture and work hard to help us avoid many of the pitfalls that can occur. We’ve spent over 20 years learning the ropes and establishing solid contacts over there. Strong relationships with vendors are critical.
There are significant challenges. Obviously there is the distance. There’s no such thing as a “I need it tomorrow” project when dealing with overseas manufacturers. Most of our products will spend 4-6 weeks “on the water” just getting to us. This is in addition to the time needed to produce the goods. There is also the time difference. Our working hours in the US are the middle of the night for the Chinese. When it is 8:00 am here, it is 8:00 pm in China. As a result, we rely heavily on e-mail.
Many of the products that we carry are no longer available from domestic suppliers. If we wanted to continue to provide our customers with the variety of products they need, we had to find other sources. We also found that China was one of the few places that could meet the demand we were experiencing. Many of our products are very intricate pieces made by skilled artisans. No domestic vendors can (or will) supply container-loads of hand-blown glass vases, or intricately woven handmade baskets at the competitive prices available from China.
I and Maxine are each in China about 3 to 6 times a year. Most of the trips are about 2-4 weeks long. We also have several members of our imports and design teams that spend a significant amount of time overseas designing and purchasing product. We have offices with full-time staff in two Chinese regions who manage many of the day-to-day tasks.
Mrs. Burton: The experience was a great one. The interaction with Chinese business leaders during the opening reception for the new Trade Office allowed us to exchange viewpoints on trade and to hear first-hand their perspective. It was also very valuable to meet others from the state of Georgia who are in the imports/exports business.
--Many perceive the Chinese relationship with the U.S. as a "one way street" where we outsource jobs to China and there is no return for Americans (except lower prices). However, the state seems to be reaping significant Chinese investment already, and seems poised for more with the new Delta routes, the UGA relationship, and other focused efforts.
Do you see significant opportunities for Georgia for doing business with China, and if so where and how?
Georgia enjoys a huge export business with China. Containers travel fully loaded both ways, so contrary to popular belief, trade with China is a two-way street. This results in a huge, positive economic impact for the State of Georgia.
--Do you see other connections between Athens/Northeast Georgia and China specifically, or areas that could be leveraged to help improve the economic situation in this area?
The World gets smaller everyday. With instant communication available to anywhere, and the never-ending knowledge base that is the Internet, the gap between Georgia and China narrows daily. Now and in the future, there’s not much that happens economically or politically in China that doesn’t somehow affect Georgia and vise-versa. It’s the old “butterfly effect” cliché, that says a butterfly flapping his wings in China starts a ripple effect in the air that eventually affects the weather all the way around the world in the US.
--Has your role with the Georgia Ports Authority opened your eyes to the power of international trade and what it means to Georgia? If so, in what ways?
Mrs. Burton: It has been very eye-opening to learn the amount of products Georgia exports to China. Georgia is a major exporter of forestry and agricultural products, and minerals like kaolin and gypsum. The Georgia Ports Authority has done an outstanding job of attracting business to the State, resulting in increased revenues for Georgia. Thanks to the job the GPA has done, Georgia ports are now the fastest growing ports in the United States.
--What has been your biggest "lesson learned" from doing business internationally?
Probably the biggest, and most rewarding lesson learned has been that when you put language, political, and cultural differences aside, our international vendors share many of the same goals as we do. We both want our businesses to be successful and to provide for our families and the families of our employees. We value friendship. We want safe places to raise our children, and a comfortable lifestyle. As we travel the world, and sit down with our international partners over dinner, face-to-face, and talk one-on-one, we see that we’re really not so different. The similarities in our overall goals make it easier to do business, despite the cultural and geographic barriers between us.
