Hydronalix Expands Product Line and Manufacturing by Growing Its Export Markets
Hydronalix manufactures robotic water rescue systems and small unmanned watercraft used by first responders, military units, and government agencies around the world. Its systems support water rescue operations as well as bridge inspection, scientific research, and law enforcement activities on oceans, lakes, and rivers.
Depending on the application, Hydronalix’s unmanned platforms can be equipped with personal flotation devices, sensors, cameras, and imaging sonar. The company’s capabilities span advanced research and development, design and prototyping, testing and evaluation, production, customer training, and ongoing service. Hydronalix is headquartered in Sahuarita, Arizona.
Since 2016, Arizona MEP has worked closely with Hydronalix to support a strategic initiative focused on expanding international markets. As a result of this long-term effort, the company has grown from 30 to 50 employees since 2021, added manufacturing capacity in Tucson, and is preparing to open a service facility on the island of Crete.
Building Export Markets Through ExporTech and AZSTEP
Hydronalix began its export expansion by developing a formal export strategy through ExporTech™, a two-month export boot camp led by Arizona MEP. Through one-on-one coaching and group workshops, the Hydronalix team created an export plan and began executing it with support from the Arizona State Trade Expansion Program (AZSTEP).
AZSTEP helped offset costs associated with participating in international trade shows as part of Arizona-based trade delegations. Early efforts focused on building brand awareness in foreign markets, including proactive outreach to prospects ahead of international shows.
As Hydronalix gained experience, the company learned how relationship-building varies across cultures. “When you show interest in the country and culture, it changes the conversation,” said Mulligan. “That approach made a big difference when we visited the United Arab Emirates, Bahrain, and Israel.”
Expanding Markets for Existing Products
A key factor in Hydronalix’s export success was developing versions of its products that could be sold internationally without ITAR restrictions. Products not designated under ITAR or listed on the Commerce Control List are classified as EAR99, meaning they generally do not require an export license.
This strategic approach allowed Hydronalix to grow business with the U.S. military for humanitarian missions abroad. “If the U.S. Marines are responding to a natural disaster in another country, our EAR99 systems can be used by partner militaries without restrictions,” said Mulligan.
Discovering New Applications Through Global Engagement
By actively pursuing export markets, Hydronalix uncovered new applications for its robotic systems. From water sampling for Red Tide in France to unmanned police boats used to manage waterways during public events in Thailand, the company has repeatedly adapted existing products to meet new customer needs.
“Most people think exporting means finding more of the same buyers,” said Mulligan. “In reality, it often means discovering entirely new use cases and customers you wouldn’t have considered without being in those countries.”
Expanding Operations in Arizona and Overseas
Trade missions supported through AZSTEP helped Hydronalix identify end users and build distributor networks in international markets. Local distributors assist with logistics, warehousing, language support, and customer relationships, increasing the overall value Hydronalix delivers to overseas partners and U.S. military operations abroad.
Hydronalix now supports operations in more than 53 countries and works with approximately 900 locations worldwide. The company regularly participates in U.S. Marine Corps training exercises across Europe and is preparing to open an office at a NATO training facility on the island of Crete. Manufacturing operations expanded to Tucson in 2021, while research and development remains based in Sahuarita.
“Growing a global customer base requires consistent effort,” said Mulligan. “ExporTech and Arizona MEP provided the initial push, and Arizona MEP has continued to be a critical partner by connecting us to the resources Arizona manufacturers need to compete globally.”