March 2006 -- OHM International, like many other large contracting companies in Japan, is enjoying an influx of new projects due in large part to the recent and projected growth of the worldwide oil and gas industry. This Houston-based wholesaler sells and distributes electrical, communications, industrial and HVAC materials throughout the world to companies and contractors typically involved in the oil, petrochemical, construction, mining, and telecommunications industries.
Opportunities in Japan
Although OHM has enjoyed sales in Japan for more than 25 years and has a long history of working with Japanese partners, setting up a representative office in Japan was a necessary next step to grow its Japan sales, which make up 10-15% of the company's total revenues. "The level of activity is very high, so right now is really just the perfect time for us to be involved with an office there,” said Paul Gandolfo, senior vice president of sales at OHM. "It is time to have someone on the ground waving the OHM International flag.”
Market Entry
When OHM decided to establish their Japan office, JETRO was there to help. JETRO provided advising on company set up as well as free temporary office space at the Invest Japan Business Support Center (IBSC) in Tokyo. "We received a great deal of help and assistance in many different facets of setting up a permanent office and in maintaining our temporary office at IBSC,” said Gandolfo. "It was great because we've been doing business in Japan for some time, and this allowed us to keep things rolling along at the same time while looking for and getting our permanent office set up. It was a perfect bridge to get us to this point where we now have an office, as well as keep our business going. We didn't lose a step, so it was really a nice set up.”
Results and Outlook
OHM has already reaped the benefits of having an expanded presence in Japan since opening their office in June 2005. "We have been able to give existing customers a person for them to talk to on a daily basis,” said Gandolfo. "We have also been able to re-kindle some old customer relations. Having a person and an office in Japan really showed these customers that we really do have a commitment in Japan, and we have started to do business with them again. In addition, new customers have found us that never would have if we did not have an office in Japan.”
For the long term, OHM is positioning its Japan operations to spearhead future Asian expansion. "Our future goals,” said Gandolfo, "are to expand our office size, add a few more people, and have satellite offices in other Asian countries. Japan will be our headquarters in Asia.”
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