Hoosier Gasket receives 'E' award from U.S. Department of Commerce

INDIANAPOLIS—By increasing the company's percentage of exported goods, Indiana-based Hoosier Gasket Corp. has seen its revenue and employee base rise by about 25 percent during the last decade.

So it should come as no surprise that the firm and its nearly 180 global employees were recognized as just one of 32 companies in the country by U.S. Secretary of Commerce Wilbur Ross as a 2017 President's "E" Award recipient.

The President's "E" Award is the highest recognition any U.S. entity can receive for making a significant contribution to the expansion of U.S. exports. In 1961, President Kennedy signed an executive order reviving the World War II "E" symbol of excellence to honor and provide recognition to America's exporters. Today's honorees helped contribute to the U.S. exporting $2.2 trillion worth of goods and services in 2016, and the estimated 11.5 million American jobs supported by exports.

For Hoosier Gasket, the award is the result of a decade-long plan to increase exports to take advantage of evolving markets in Eastern Europe, Asia and other parts of the world, Vice President Oleg Gostomelsky said.

"This is the highest award that the U.S. Government gives to private businesses for exports, so while we knew that we were nominated and weren't stunned by receiving the reward, it is a humbling achievement," Gostomelsky said.

Long-term effort

The emphasis on growing exports for Hoosier Gasket first came into focus in 2007, when then Chrysler Corp. (now FCA) sold the licensing ability to manufacture the Chrysler Sebring in certain parts of the world to Russian automotive OEM GAZ.

That process led Hoosier Gasket to work with GAZ to find other suppliers in the global market to support the manufacturing of the Sebring. And it opened the door for other exporting possibilities for the U.S.-based maker of custom-made gaskets and seals.

The department's Gold Key program combines with Export.gov, which helps U.S. companies plan, develop and execute international sales strategies necessary to succeed in today's global marketplace. Developed by international trade specialists and economists, Export.gov provides companies with trusted market intelligence, practical advice and business tools to help firms understand how to export, connect with foreign buyers, and expand operations in new markets.

The Gold Key Matching Service offers such aid as customized market and industry briefings with trade specialists, timely and relevant market research, and appointments with prospective trade partners in key industry sectors.

Hoosier Gasket has worked closely with the U.S. Department of Commerce and its Gold Key program over the last 10 years to help develop other global contacts while understanding how to create business opportunities in such countries as Russia, Hungary, Ukraine and the Czech Republic. Through other marketing and sales efforts such as promoting at international trade shows and asking for client referrals, other large global markets such as China and India have been targeted in this effort as well.

Expanding outreach

Gostomelsky was the perfect professional to lead this effort, particularly with the growth into Eastern Europe. The former U.S. Army officer is fluent in Russian.

"The Department of Commerce really helped us to navigate the business landscape, including to set up meetings with business leads, make network connections and help with translation services," he said. "We see growth opportunities in the future with the BRIC (Brazil, Russia, India and China) nations, but also many of the countries that directly border the BRICs. We can't ignore the rest of the world that makes up about 75 percent of the purchasing power around the globe."

The resulting growth made it so about 15 percent of all sales generated by Hoosier Gasket are from export sales. A decade ago that percentage was barely above zero, Gostomelsky said. Furthermore Hoosier Gasket now imports to 19 countries, including every continent except Africa and Antarctica. During the past decade Hoosier Gasket also opened a sales office in Russia, a distribution center in Ukraine and a small manufacturing plant in China to support U.S. customers who had facilities in Asia. In addition Gostomelsky said that roughly 20 of the 125 domestic Hoosier Gasket jobs were created as a result of this increase in corporate exports.

Founded in 1967 by the late Argyle Jackson, Hoosier Gasket has remained a family owned, privately held company as it grew. Today, the company is managed by the founder's two sons, Jeff and Dan Jackson, who serve as the president and the executive vice president of the company, respectively.

During the last decade of emphasis on export growth, exports have steadily grown from occasional intermittent sales to a regular, planned export sales program with more than $3 million per year in sales.

Hoosier Gasket provides objective sealing solutions to customers worldwide, through excellence in engineering, technology, manufacturing and customer service. Its professionals use application engineering and technical expertise to create solutions that satisfy unique and often advanced requirements, in many different market segments across the globe.

For example, Hoosier Gasket manufactures its custom-made seals and gaskets to match to a mating component, Gostomelsky said. All of the company's products are custom made for the application, since gaskets and seals have to match exactly the surfaces of the adjoining/mating parts that they are sealing, he added.

"We have tested, used and found materials for gaskets that are required for all different types of environments from the cold and dry air of Siberia to the warm and humid air of the Amazon rain forest," Gostomelsky said. "Our products will adapt to any type of marketplace so we are a specialized provider."