LA Regional Export Initiative Implementation Plan of the Los Angeles Regional Export Initiative July 2012 1
THE PROBLEM Stubborn Unemployment 11.4% County, 12.2% City Declining Regional Manufacturing Sector Since 2001, the LA Metro Area has lost one in three manufacturing jobs (188,000) manufacturing jobs. Unmet export potential Only 15% of CA manufacturers export Existing export services in LA are fragmented, duplicative and operate in silos. Companies do not know where to go/start for assistance CA Export Finance Office (CEFO) no longer exists, and CA is one of few states with no international trade office 2
THE OPPORTUNITY Creating Jobs Through Exports LA economy and businesses can grow by selling products and services to world markets LA firms already compete at home with the best global products LA is the largest manufacturing center in the US International Markets are Growing 95% of world s consumers projected to be outside the US 80% of global economic growth projected outside the US Los Angeles is the best place to begin a national model for growing Exports: Nation s #1 port center based on trade volume (LA/LB Combined) Nation s #2 customs district Ranks #3 in the nation in total export, behind New York and Detroit, a total of $86.19 billion. Nation s #5 cargo airport by weight (LAX) 3
THE SOLUTION LA Regional Export Initiative Brookings Institute (funded by the Rockerfeller Foundation) approached the LA Mayor s Office in November to lead the development of a collaborative, regional export plan as a local implementation of the President s National Export Initiative. Working with Brookings and major regional export service providers, the Mayor s Office developed a Los Angeles Regional Export Plan to address the strategic goals of the Brookings Metropolitan Export Initiative. Partners on plan development - Current LARExC board members and: Deutsche Bank, Ex-Im Bank, Los Angeles Tourism, LAEDC, PEC SME Subcommittee, US Comm. Services, SBA, World Trade Center Assn. LA/LB The key component of this plan is the Los Angeles Regional Export Council (LARExC). 4
THE SOLUTION LA Regional Export Council (LARExC) LARExC is a public-private partnership that will manage the collaborative infrastructure needed to grow export jobs. Export Growth Objectives: Secure and increase quality jobs in the LA Region, driven by export growth Support the national goal of doubling US exports over the next five years Foster a more globally-fluent, export-oriented business culture in the LA Region, focused on small to med sized firms Strengthen export services to remove structural barriers to exporting Core Strategies: Establish the Los Angeles Regional Export Council Target High-Opportunity Market Segments Market the Los Angeles Region to the World 5
Core Strategies Establish LARExC Lead a unified, sustainable, regional export effort over at least the next decade. Coordinate existing export services and providers into a responsive regional export network Develop and maintain critical export research, information/export website Supplement existing programs with critical new support Create metrics for measuring success 6
Core Strategies Target High-Opportunity Market Segments Focus on export-active or export-capable firms Export Champions MBA research teams will be assigned to firms for one academic year to develop a market specific export strategy Americas Business Forum & Asian Pacific Business Outlook Annual US conferences focused on business and exporting opportunities in the Americas and the Pacific Rim ABF generated $11.7 million in exports in 2011 Export 101: Trade Connect & Export Workshops (POLA,LAWA &CITD) provide basic export training and resources Training/Workforce Development provide international trade compliance training and export skill development for businesses and current/future employees. Trade Missions Lead missions to bring local companies to key trade shows and int l markets. 7
Core Strategies Target High-Opportunity Market Segments Twelve Growth Industry Targets aerospace & subcontractors computers & electronics energy & green tech medical & dental equipment chemicals, including pharma machinery manufacturing apparel & fashion professional, scientific & tech services education travel & tourism royalties from intellectual property food processing 8
Core Strategies Target High-Opportunity Market Segments Focus on countries of the Pacific Rim, including Latin America Regional Export Market Research organize and assemble data in support of the regional web portal Trade Missions Chile Expo Hospital (6/2012), Hong Kong Food Expo (8/2012), MAGIC (8/2012), Latin America (9/2012), Messe Nagoya (9/2012) China Brazil Chile Korea Water Tech. Drugs/Pharm. Comp. Software Apparel 9
LARExC structure LA Area Chamber CITD Los Angeles World Airports Port of Los Angeles LA Mayor s Office USC CIBER UCLA CIBER Board of Directors Advisory Board Task Forces Executive Director LARExC Programs/Initiatives 1. Access to Capital 2. FDI 3. Designed in LA (Fashion) 4. Research 5. Policy Advocacy 6. AdHoc 7. Marketing 8. Delegation Hosting Regional Exports Service Network 10
Current Board of Directors Criteria and qualifications for membership to be determined. Each board member has committed financially to the success of the Los Angeles Regional Export Council. Mayor Antonio Villaraigosa POLA LAWA Centers for International Trade Development (CITD) UCLA Center for International Business Education & Research (CIBER) USC CIBER LA Area Chamber of Commerce 11
Regional Export Services Network Criteria and qualifications for inclusion to be determined. The following are examples of the region s export service providers: Port of Los Angeles Los Angeles World Airports LAEDC World Trade Center Assn. LA/LB LA Area Chamber of Commerce Centers for International Trade Development SBA US Ex-Im Bank US Dept of Commerce (US Commercial Service) LA Customs Brokers & Freight Forwarders Association LA Air Cargo Association California Manufacturing Technology Consulting 12
Implementation Plan Define the LA Regional Export Council (completed) Coordinate seamless network Data collection & subcommittees Establish LARExC Organizational Structure (in process) Establish 501(c)3 Board of Directors Advisory board Task Forces Hire Staff Fundraise (in process) Policy Advocacy (in process) A Policy letter based on Brookings Research/interviews has been delivered to various Federal/State lawmakers and departments 13
Funding* Budget -$1 million/year Federal (Via Chamber, USC, UCLA) State Trade and Export Promotion (STEP) Grant $320,000 (awarded)** State (via CITD) California Responsive Training Fund (RTF) Grant (1 year) ~$232,000 (awarded)** City Port of Los Angeles: $150,000 (committed) Los Angeles World Airports (in progress) Private Sector Goal: Raise $300,000-$500,000 JP Morgan Chase: (committed) China Trust Bank: (in progress) 3 year commitments Ensures sustainability beyond current elected officials Reassures business owners * Each board member has committed funds ** Funds can only be allocated to these specific programs 14
Initiative Logistics LARExC will temporarily operate as a 501(c)3 under the LA Chamber as fiscal sponsor LARExC will be housed at the LA Chamber for longevity beyond elected offices The objective is for LARExC to be private sector driven 15
Timeline Fall/Winter 2011 (completed) Announce the LA Regional Export Plan Begin business outreach Begin evaluation of export services network Spring 2012 (completed) Release Export Plan Begin securing funding commitments Begin policy advocacy Summer 2012 (requires further funding commitments) Hire consultant/staff Release RFP for website Begin developing research database and tracking system Establish LARExC as a 501c3 Fall 2012 Launch website Release evaluation of export services network 16