Adhesives maker Hernon Manufacturing stuck on overseas partnership strategy
Adhesives maker Hernon Manufacturing stuck on overseas partnership strategy Sanford-based Hernon Manufacturing Inc. expects nearly half of its sales to come from overseas this year, up from just 11 percent three years ago. Borrowing a page from the Coca-Cola Co. playbook of operating joint ventures with overseas distributors, the industrial adhesives maker inked pacts with companies in China, South Korea, India, Brazil and Taiwan to repackage and distribute Her non’s products. The company went looking for partners in countries with fast-growing economies. Forming a separate business with overseas partners that repackage and distribute Hernon products saves the company on import duties and freight costs. Hernon’s revenue was up 32 percent last year, and a 30 percent increase is expected this year. It also added 10 new employees in 2012 and expects to hire another 10 this year. The company leased an additional 2,300 square feet late last year and doubled that to 4,600 square feet of leased space at the beginning of this year. The company’s export growth was one of the reasons Hernon President Harry Arnon was named Florida and regional small business exporter of the year by the U.S. Small Business Administration this week. Arnon also is up for the national SBA award. Arnon now is looking for a partner in Italy, France, Russia Arnon and South Africa.