National League of Cities: State Resources for Trade. Mark Calhoon April 21, 2011
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1 National League of Cities: State Resources for Trade Mark Calhoon April 21, 2011
2 Agenda Exports in Washington State Washington s International Trade Program Target Industries Target Markets Export Finance Case Example(s) Washington Export Initiative Local Government s Role in Trade Promotion
3 Washington s Export Driven Economy 5 th largest export state in the U.S. Highest per capita exporter in the U.S. 1 out of 3 jobs tied to trade 2 nd largest exporter to China 4% companies export vs. U.S. average of 1% Ports of Seattle and Tacoma are the second-largest volume container center in the United States
4 Billions USD Washington Commodities Exports Washington Goods Exports
5 Number of Washington Companies Exporting Notes: Data source: U.S. Department of Commerce Most recent data 2007 Data prior to 2005 based on state-of-origin data, while subsequent years use zip code-based data
6 Washington s Economic Development Eco-System State Agencies State Programs Universities/ Community Colleges Organizations/ Associations Local Federal Washington State Department of Commerce Northwest Agriculture Business Center Western Washington university s Research Center Economic Gardening Various Industry and Trade Associations Associate Development Organizations (ADOs) Small Business Administration (SBA) Workforce Training and Education Coordinating Board Economic Development Commission University of Washington Technology Transfer International Trade Alliance (ITA) Ports US Export Assistance Center Office of Regulatory Assistance (ORA) Innovation Partnership Zones (IPZ) Washington State University Extension/ Economic Development Offices Washington State Microenterprise Association (WSMA) Counties Pacific Northwest National Laboratory (PNNL) Employment Security Department (ESD) Export Finance Assistance Center of Washington (EFACW) Small Business Development Centers (SBDC) Washington Assistive Technology Foundation (WATF) Cities Small Business Innovation Research (SBIR) Department of Revenue (DOR) Washington Technology Center (WTC) Northwest Entrepreneurial Network (NWEN) Chambers Northwest Trade Adjustment Assistance Center (NWTAAC) Washington Economic Development Finance Authority (WEDFA) SIRTI Washington Manufacturing Services (WMS) Washington State Procurement Technical Assistance Center (PTAC) Washington State Department of Agriculture (WSDA) Office of Minority and Women s Business Enterprises (OMWBE) Washington Economic Development Association (WEDA) Economic Development Admin. (EDA) Secretary of State WA Public Ports Association Department of Labor and Industries Association of Washington Businesses (AWB)
7 International International Trade Program: Trade Program: Assisting Businesses Our primary clients are small- and medium-sized companies. We assist growth-oriented companies to expand export sales through high-quality market intelligence, strategy, advocacy, and business matchmaking Technical support and assistance Expand Export Sales Market intelligence to identify export opportunities Market entry and expansion strategies Business matchmaking
8 Trade Services Business Matchmaking Matchmaking Partner search How to Export Market Research - Buyers - Channel partners Qualified trade leads Credit & Financing Moving Goods Develop export strategies Market intelligence Trade Events Mitigate payment risk Clearinghouse & referral Overcome barriers to entry Competition analysis & Marketing Extend buyer credit Advocacy Identify best market prospects Screen buyers and channel partners Trade show participation In-bound and Ex-Im Bank guarantees out-bound trade missions
9 Trade Business Development Lifecycle Evaluate (SR) Sales Call (Assist) Lead generation Trade shows Partner events Seminars News articles /phone Referrals Trade Business Development Lifecycle In Progress (SR) Client Profile Product details Market potential Assess needs Willingness to go to market Pre-Qualification Leads from New or Existing Clients Three-way conference call to finalize service brief details Case commences with Foreign office Delivery (SR) Report delivered to client Conference call to discuss findings & action plan Company follow-up (SR) Company implements action plan Visits market Sales (surveys) Communication and for follow-up monitoring Check in with by Program Client Manager Survey for results at 0, 6, and 12 months Sales results recorded Service Request Delivery Results Documentation
10 Overseas Markets Japan Europe Mexico U.K. France Germany Belgium Czech Rep. Denmark Finland Ireland Italy Netherlands Norway Poland Romania Slovakia Spain Sweden Ukraine India Thailand Vietnam China Taiwan Europe North America Asia
11 Export Finance Assistance Center of Washington City/State Partner of the Export-Import Bank State funded 501 (c) 6, - independent advice on export finance How to get paid, mitigate risk, and access financing Provides counseling to banks on how to support exporting clients while minimizing bank risk Serves as a referral source for companies to appropriate financial service providers and other trade partners Organizes seminars and training around the state for exporters and banks Works with federal, state, and local trade/economic development agencies
12 Washington State Export Training Certification Course The roots of education are bitter but the fruits are sweet Only certified export training course in Washington Follows the national standard for Global Business Proficiency 95% of the course participants believed it had value for their business expansion Prepares for NASBIT certification NAFTA-specific training module offered Next Course May 16-18, in Bellingham
13 Washington Export Initiative Building on the NEI the Governor announced her 6 point export strategy in June Partner with U.S. Dept. of Commerce, SBA and our statewide network of Small Business Development Centers to field test pilot programs 2. $3 million direct state export assistance to new exporters through CERB 3. WSDA Farm-to-Market Initiative targets agriculture enterprise competitiveness 4. Attract foreign students and encourage WA students to study abroad 5. Strengthen & expand key trading partner relationships through activities such as the Governor s 2010 Trade Mission to China and Vietnam 6. Seek fully-funded federal transportation reauthorization act that includes national freight program
14 Commerce Export Initiative Goals 1. More Companies Increase the number of Washington companies exporting by 30% in 5 years, to 10,500 firms 2. More Assisted Exports Directly assist Washington businesses in achieving $600 million in export sales through export assistance programs at the Departments of Agriculture (WSDA) and Commerce (COM) over the next 5 years. 3. More Total Exports Increase general statewide exports by approx. 35%, to over $100B per year, by 2015
15 CERB Export Assistance Grants Grantee Description $ Amount City of Bellevue Search engine optimization and social media platforms $157,000 Port of Clarkston Snake River Boat Builders export program $100,000 Highline Community College Virtual resource center, web portal with export resource guide $398,295 University of Washington Washington State University New-to-export, medical start-up companies $291,264 Export Readiness Centers $1,281,969 Western Washington University Jump Start Washington Exports (JustWAEx) $664,726
16 Export Initiative Support New MOUs to Support Exports USEAC: collaboration on the national export initiative SBDC: partnering on support for the Washington Export Initiative Umbrella MOU with 20 key trade organizations in WA Commerce, USEAC, World Trade Centers, Trade Development Alliance, etc. for cooperation and support on Washington Export Initiative Export Working Group First meeting on February 8 Next meeting May 11 Chaired by Commerce and the WA State Department of Agriculture also includes key agencies and stakeholders involved in deliverables on the Washington State Export Initiative
17 SBA State Trade Promotion Grant Program (STEP) STEP is a New Federal Grant to Help Small Businesses Export Three year grant with a total $30 million annually will be awarded on a competitive basis to individual states to support small business activities such as: Participation in international trade shows and trade missions Individual sales visits to international markets Design of international marketing campaigns Participation in export training workshops The grant process opened on March 1, with proposals due on May 10. Expected that winners will be announced in late summer.
18 Governor s Mission to France & Germany June 19 24, 2011 Focus: Aerospace 13 companies, 6 training programs, 7 training organizations & schools, 6 support organizations Life sciences WBBA leading 6 to 10 companies Clean tech wind energy and composites Automotive technologies 3 to 5 software companies Highlights: Paris Air Show trade and investment meetings Business networking reception at Microsoft in Paris Business development meetings with key partner companies MOUs for life sciences, composites technology, aerospace training and biofuels
19 Local Government s Role in Trade Promotion Export training for local government economic development practitioners Client export surveys Partner on local export promotion and technical events Recruit for international trade events Client leads and referrals for state and federal trade offices to access strategic information and B2B introductions Greater Seattle Trade Development Alliance model Soft and hard export infrastructure
20 International International Trade Trade Washington State Department of Commerce Phone: (206) Web:
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