Business Expansion Through Exporting. Cape Coral International Trade Summit June 7, 2011
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1 Business Expansion Through Exporting Cape Coral International Trade Summit June 7, 2011
2 2 Exporting Myths Only large multi-national companies can succeed in exporting A company needs a product in order to export A company has to be a manufacturer in order to export Only high-tech products are successfully exported Exporting is not profitable
3 3 Exporting Facts 95% of Florida s exporters are small and medium enterprises (SMEs), accounting for 63% of Florida s exports Nearly a third of Florida s exports are services Over 50% of Florida s exports are manufactured outside of Florida Florida exports sand to the Trinidad and icemakers to Greenland Florida's exporters grow 15% faster, pay 15% higher wages and are 15% more profitable than non-exporting companies
4 4 Impact of International Business on Florida Over 1.3 million jobs in Florida depend on international business Over 43,000 companies in Florida export products or services Florida is second only to California in the concentration of exporters Florida is the fourth largest exporter among U.S. states Anecdotal reports suggest that the global economic downturn continues to have less of an impact Florida exporters
5 5 Reasons to Consider Exporting While the United States remains the single largest market in the world, it represents less than 25% of the global economy Exporting can place a company s product or service in markets that are experiencing above-average growth Exporting can extend a product s life cycle The Godfather Factor Foreign exchange rates
6 6 The Impact of Foreign Direct Investment (FDI) on Florida Florida ranks fifth in the nation in terms of FDI employment Approximately 2,500 foreign subsidiaries operate in Florida Foreign companies employ 273,100 Florida residents Total value of holdings by all foreign investors is over $40B USD
7 7 Enterprise Florida s Goals Market Florida s international advantages worldwide. Assist Florida companies to export products and services and identify joint ventures and strategic alliance partners Provide an international network to identify foreign direct investment prospects and to assist Florida companies to export Create a statewide trade development network to assist Florida s small and medium size companies to access international markets Job creation through exporting and foreign direct investment
8 8 Who We Serve Small and medium-sized Florida manufacturers, distributors and service companies Florida economic development and trade organizations International companies interested in Florida s products and services Foreign direct investors interested in expanding or relocating to Florida Florida communities interested in attracting foreign direct investment
9 9 FLORIDA FIELD OFFICES Santa Rosa Pensacola Field Office Okaloosa Walton Holmes Washington Bay Andrea Moore (I) Jackson Calhoun Gulf Liberty Franklin Gadsden Bay, Calhoun, Escambia, Franklin, Gulf, Holmes, Jackson, Jefferson, Liberty, Okaloosa, Santa Rosa, Walton, Washington Ken Cooksey (II) Gadsden, Jefferson, Leon, Wakulla Larry Bernaski (III) Wakulla Leon Alachua, Baker, Bradford, Clay, Columbia, Dixie, Duval, Flagler, Gilchrist, Hamilton, Lafayette, Levy, Madison, Nassau, Putnam, St. Johns, Suwannee, Taylor, Union Michael Schiffhauer (IV) Taylor Madison Brevard, Highlands, Lake, Marion, Orange, Osceola, Polk, Seminole, Sumter, Volusia Lorrie Belovich (V) Charlotte, Citrus, Desoto, Hardee, Hernando, Hillsborough, Manatee, Pasco, Pinellas, Polk, Sarasota John Diep (VI) Broward, Indian River, Martin, Okeechobee, Palm Beach, St. Lucie Coral Gables Office (VII) Collier, Glades, Hendry, Lee, Miami-Dade, Monroe Tallahassee Field Office Lafayette Dixie Hamilton Tampa Field Office Suwannee Columbia Gilchrist Levy Citrus Baker Alachua Hernando Pasco Bradfor d Hillsborough Manatee Sarasota Marion Sumter Nassau Clay Duval Putnam Lake Hardee DeSoto Polk Charlotte Lee St. Johns Flagler Volusia Seminole Orange Osceola Highlands Glades Collier Jacksonville Field Office Okeechobee Hendry Monroe Brevard Indian River St. Lucie Martin Palm Beach Broward Dade Orlando Field Office West Palm Beach Field Office Coral Gables Office
10 Montreal United Kingdom France Germany Czech Republic Mexico Toronto Spain Israel Beijing Japan Shanghai Taiwan Brazil South Africa Enterprise Florida International Offices = Full Service Office (9) = Liaison Office (6) 10
11 2011 International Trade Development Priorities Retain Florida s market share in the Latin American Region Assist Florida SME s to diversify exports to emerging markets in Asia, Africa and the Middle East Increase Florida high tech and high wage exports worldwide Capitalize on the Panama Canal expansion Market Florida worldwide as an ideal investment destination and identify foreign investment prospects 11
12 12 Key Target Markets Worldwide North America, Latin America and the Caribbean Basin Argentina Caribbean Nations Colombia Peru Brazil Central America Dominican Republic Venezuela Canada Chile Mexico Europe Belgium Germany Spain United Kingdom France Italy The Netherlands Far East (Asia) and Oceania Greater China India Japan Malaysia Singapore Australia Africa and Middle East Israel South Africa Gulf Cooperation Council Nations
13 13 Target Sectors TRADE Aviation/Aerospace Life Sciences Information Technologies/Telecommunications Electronics Homeland Security/Defense Technologies Clean Energy/Environmental Technologies Professional/Transportation/ Financial Services FDI Aviation/Aerospace Information Technologies Life Sciences Homeland Security/Defense Tech. Financial Services/Professional Serv. Clean Energy Emerging Technologies Manufacturing Multinational Headquarters/Logistics
14 14 Enterprise Florida International Trade Services Counseling, information and referrals Export readiness assessment Participation in trade exhibitions, trade missions and catalog shows Country-specific market information Export sales leads Identifying potential overseas buyers Florida Export Directory on-line Inbound trade missions Seminars and workshops
15 15 Foreign Direct Investment Services Market Florida advantages worldwide Identification of international investment projects and leads Provide custom-tailored information and proposals to potential international investors on: - Florida and its communities - Process and regulations for establishing in the state - Florida business advantages Referrals to local EDOs Site selection assistance in partnership with local EDOs Assist qualified companies to apply for and obtain financial and training incentives
16 16 Services Provided by Enterprise Florida s International Offices Basic Services: Counseling services for Florida and foreign companies. Trade lead generation. Investment lead generation and follow-up. Support for EFI in-country trade events. Support for trade and investment missions from Florida. Appointment scheduling for EFI s economic development partners. Maintain country specific websites in target languages in key markets.
17 17 Final Thoughts It s important to note that exporting is a business expansion strategy and not a business development strategy It simply makes sound business for a business to at least consider its role in international markets There are ample enough resources to assist a business in making an informed decision regarding international expansion strategies If your company believes it s not important or necessary to compete on a global level remember that you already are
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