Author Archive

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New ITA Report Highlights Jobs Supported by Product & Industry Exports

December 11, 2015

Chris Rasmussen, a Senior International Economist in the Office of Trade and Economic Analysis, is the Team Lead for Quantitative Analysis and the author of several publications on jobs supported by exports.

The International Trade Administration has released a report detailing the jobs supported by exports by specific product and also within individual industries. This report joins earlier work estimating total U.S. jobs supported by exports, jobs supported by state goods exports, and jobs supported by exports by destination.

When thinking about the relationship between exports and jobs the natural tendency is to focus on the workers employed in the industry that produces the final product that is exported. For example, a statistic for U.S. exports of chemical products may conjure up images of workers employed in chemical plants wearing hardhats and other protective gear.

However, products are not produced in isolation from beginning to end in a single industry, with the production of any product generally requiring the use of inputs from other industries. As a result of these interrelationships between industries in the production process, the export of a product will impact employment in multiple industries in addition to the industry that produced the export.

In the chemical products example, the production and export of those products will not only affect employment in the chemical industry, but also employment in industries such as petroleum and coal products, transportation, and other services whose products are used by the chemical industry.

By the same token, production and employment in the chemical industry will be impacted not only by the export of chemical products, but also by the export of agricultural products and products made of plastic and rubber that use products from the chemical industry as inputs in their production.

This report uses data capturing these interrelationships to look at the impact of exports on employment throughout the supply chain. This report finds that as a group, manufacturing industries have the highest share, 27 percent, of their employment supported by exports. The report further finds that although 60 percent of all export-supported jobs are supported by the export of goods, 67 percent of all export-supported jobs are jobs located within service industries.

In fact, the report indicates that for every job within manufacturing industries supported by the export of manufactured products there is an additional job supported in service industries by the export of those manufactured products.

Visit our website to learn more about jobs supported by exports.

 

 

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U.S.– Mexico Relationship: One of Great Importance

December 11, 2015

Stefan M. Selig is the Under Secretary of Commerce for International Trade

Having traveled to Mexico twice in the last two months and four times in the past year, one overarching theme has become clear: the U.S. and Mexico are firmly on a path to becoming a model of a modern commercial partnership. My recent trip to Mexico served to reinforce this message in three important ways

First, during a roundtable with the Council of the Americas, we discussed the upcoming annual meeting taking place within the framework of the U.S.-Mexico High Level Economic Dialogue (HLED). Since its launch in 2013, the HLED has been the central bilateral forum for the U.S. and Mexico to advance our commercial partnership, our strategic interests, and our leadership on the regional and global stage. During the roundtable, I presented several examples of HLED successes. We have completed or nearly completed several border infrastructure projects that will enhance both our flows of commerce and our collective security interests. We have engaged in education cooperation and workforce development through our Bilateral Forum for Higher Education, Innovation, and Research. Through this forum, we secured 23 bilateral agreements that will facilitate information sharing and foster understanding through student exchanges between U.S. and Mexican education institutions. In 2014 alone, 27,000 Mexican students and teachers participated in exchanges under the program. Finally, in the area of energy, we are working with our Mexican counterparts to advance the country’s historic opening of its oil and gas sector to private investment. Part of this effort includes the creation of a U.S.-Mexico Energy Business Council, which will be a platform for business leaders to provide perspective and insight to government officials.

Second, during this year’s U.S.-Mexico CEO Dialogue, I participated on a panel on cross-border digital integration. Today, our two countries are deepening, enhancing, and maximizing our shared resources through technologies like the Internet of Things and Smart Cities capabilities. The impact of these gains extends far beyond the digital space and includes enhancing two-way trade, environmental sustainability, and cross-border security. At the same time, we are seeing U.S. and Mexican cities, as well as cross-border innovation clusters, emerge as hubs of innovation that will produce wide-ranging impacts at the national and international levels.

Finally, as with every trip, I am reminded of how the U.S.-Mexico commercial relationship will be significantly advanced once the Trans-Pacific Partnership (TPP) is ratified. In particular, TPP will have an enormous multiplier effect on existing efforts to integrate our two markets. On the front-end, because of the increased goods, services, investment, and data flows that will result from TPP, stakeholders in both countries will be incentivized to engage in greater and deeper collaboration on manufacturing, innovation, human capital development, border infrastructure and beyond. On the backend, TPP will create an unprecedented platform where we will maximize the gains of that deeper integration through increased access to 40% of global GDP, to 300 million new consumers, and to the fastest growing region in the world in the Asia-Pacific.

Enhancing and advancing the U.S. – Mexico relationship, as well as other global partnerships, is the critical role of the International Trade Administration. ITA is central to our commercial diplomacy efforts and in supporting U.S. businesses through international trade promotion, attracting foreign direct investment, and helping to ensure a level playing field for American businesses and workers through the work of our trade specialists in Washington, DC, our export assistance centers in 100 U.S cities., and our Foreign Commercial Service in more than 75 global markets.

 

 

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Textiles & Apparel – A Global Industry

December 10, 2015

Joshua Teitelbaum is ITA’s Deputy Assistant Secretary for Textiles, Consumer Goods, and Materials.

With the Trans-Pacific Partnership (TPP) eliminating more than 18,000 foreign taxes on Made-in-America exports, it’s no secret that the TPP will bring major opportunities for American manufacturers. This includes one of the most important U.S. export industries: Textiles and Apparel.

In fact, in 2014, the United States exported more than $8.5 billion globally in technical textiles, which are textile products used primarily for their performance qualities rather than their appearance. Technical textiles include seat belts, surgical gowns, and industrial filters, among many other items.

Under the TPP, Japan—which maintains duties on our technical textiles exports as high as 8.2 percent and is our fifth largest export market for these products—will eliminate nearly all of their duties on our technical textiles exports immediately. Eliminating these foreign taxes on U.S. products is how we boost U.S. manufacturing and support American textile workers.

In addition, by setting new, high-standard global trade rules, TPP puts American workers first. These high standards include the strongest enforceable labor standards of any trade agreement in history. The new agreement also supports U.S. manufacturing, especially by small- and medium-size enterprises (SMEs), by streamlining customs processes, facilitating greater transparency in rules, and preventing unfair competition from state-owned enterprises.

While 98 percent of U.S. exporters are small businesses, less than five percent of U.S. businesses sell their goods and services to markets overseas. Thankfully, the new agreement is an opportunity to boost exports and make it easier for more SMEs to do business abroad. For the first time in any trade agreement, TPP includes a dedicated chapter on small- and medium-sized businesses that focuses on how these companies can benefit from trade.

Recently, the Industry & Analysis division in the International Trade Administration produced a series of market assessment tools for U.S. exporters called Top Markets Reports. As we prepared these reports, our research revealed that competition in the global market for technical textiles is very strong. In the reports, some industry highlights for TPP partner countries include:

  • Canada continues to be an attractive export market for U.S.-made technical textiles, especially for companies that are new-to-export and/or new-to-market. The Canadian market is the second largest market for U.S. exports of textiles and apparel. Due to proximity, similar business cultures, and a high receptivity for U.S.-made products, there is a high volume of bilateral trade between the United States and Canada.Similar to the United States, Canada has experienced an economic shift in its textile industry. This shift has moved away from manufacturing traditional high-volume commodity textile products to developing and manufacturing technical textiles.
  • Mexico is the United States’ largest market for textiles and apparel. The size of Mexico’s textile and apparel sector coupled with its proximity to the United States and the flexibilities afforded to U.S. exporters through NAFTA, ITA expects continued investment in all four technical textile sectors— non-woven, medical, protective, and specific/industrial —and continued growth into the future.
  • Vietnam’s textile and apparel industry is growing faster than that of many of its regional competitors. The Vietnamese textile industry has more than 3,800 companies. Foreign companies are starting to pour more money into Vietnam to take advantage of potential economic opportunities from future free trade agreements. Over the past several years, Vietnam’s textile and apparel industry has benefitted from increased foreign investment. Because of this consistent growth, U.S. companies will have the chance to increase their exports of technical textiles to more consumers and businesses in Vietnam.

To learn more about this growing industry, the impact TPP will have on it and how to take your business global, please contact one of our local offices.

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Secretary Penny Pritzker Invites Economic Development Organizations to Connect at Hannover Messe

December 9, 2015

Hannover Messe is the world’s largest trade show for industrial technology, and Secretary Penny Pritzker invites U.S. economic development organizations (EDOs) to participate in the 2016 Hannover Messe fair from April 25th – 29th in Hannover, Germany.

U.S. EDOs will have the opportunity to be front and center in the U.S. Investment Pavilion, a centerpiece of the trade show and host to special events with global technology and industry leaders from around the world.

There is no better opportunity for your EDO to connect to global investors looking to make deals and showcase yourself as a prime investment destination to more than 200,000 attendees.

 Register to learn how USA Partner Country status makes this a can’t-miss event for your organization!

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Hannover Messe 2016: The World’s Largest Industrial Trade Show and an Unprecedented Opportunity for Virginia Exporters

December 8, 2015

Joshua Kaplan is an International Trade Specialist in the Richmond, VA Export Assistance Center.

If your company is currently doing business internationally or would like to start exporting in 2016, and you are looking to sell goods and/or services to the industrial sector, there may be no better opportunity for your firm to meet potential partners and customers than at Hannover Messe next year.  This event, to be held in Germany from April 25-29, will bring more than 200,000 attendees from 70 countries, including more than 100 business delegations.

We will host a free webinar December 10 at 2:30pm to explain how this trade show could be the spark that ignites your export business to Europe and around the globe.

For the first time in the nearly 70-year history of this event, the United States has been awarded Partner Country status in 2016, which means more exposure and increased opportunity for Virginia companies that choose to exhibit in one of the industry-specific U.S. pavilions.  Virginia exhibitors will benefit from no-cost Commercial Service support offerings designed to maximize customer interaction before, during, and after the show, and will receive increased visibility from joining the U.S. Partner Country delegation (expected to number between 300-400).

Lastly, while there is no question that any international business development trip requires significant resources from your firm, Virginia firms may be eligible for substantial cost reimbursement related to exhibition and travel expenses associated with this event.

If you’re interested in learning more about how to participate in this event, please register your interest or simply contact your local U.S. Export Assistance Center or VEDP Trade Manager.  You may also sign up for the joint VEDP-Commercial Service webinar here.

 

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SelectUSA’s First-Ever Canada Conference – Greater Opportunity for the U.S.-Canada Commercial Relationship

December 7, 2015

 

This is a guest blog by Bruce Heyman, the U.S. Ambassador to Canada.

Trade and investment are a crucial part of the United States’ global agenda. That’s been one of President Obama’s core messages from the beginning of his time in office, and it’s been the driving force behind many of his major international initiatives. It’s why he, along with Secretary of State John Kerry and Commerce Secretary Penny Pritzker, hosted the 2015 SelectUSA Investment Summit back in March.

Select USA

From l to r: U.S. Ambassador to Canada Bruce Heyman, Champion Pet Foods President & CEO Frank Burdzy, and SelectUSA Executive Director Vinai Thummalapally

It’s also why I was so pleased to play a role in the inaugural edition of the SelectUSA Canada Conference in Toronto, Ontario on November 17th. No two countries in the world share a larger or more extensive trade relationship than Canada and the United States. Canada is the fourth-leading origin of foreign direct investment (FDI) into the United States, so it was only natural to hold an investment facilitation event that brought U.S. economic development organizations (EDOs) together with Canadian companies of all sizes and backgrounds.

Having led the delegation of more than 80 Canadians representing the private sector, NGOs and government to SelectUSA’s Summit in Washington, I know first-hand how much excitement and interest Canadians have when it comes to cross-border trade and investment with the United States—not to mention how much that enthusiasm and interest is reciprocated by American EDOs! Even so, I was greatly impressed by the size of the response to our first SelectUSA Canada Conference. On the Canadian side, we had more than 50 companies, representing a broad range of industries and markets, while my fellow Americans proved to be equally excited by the prospect of linking up with potential investors, with 24 economic development agencies representing states, cities and regions in attendance.

While it’s always a great time to talk about expanding cross-border trade, the SelectUSA Canada Conference took place at a particularly exciting time in the U.S.-Canada relationship. For one thing, the event was held just a few weeks after the swearing in of a new government in Ottawa, which meant that there was lots of discussion about exploring new avenues for collaboration and cooperation.

From an even more global perspective, however, the SelectUSA Canada Conference took place just weeks after the signing of the Trans-Pacific Partnership (TPP) trade deal, and just a few weeks before the COP21 climate change meetings in Paris. While you may not immediately think of those two milestones as being connected, the reality is we must transition to a global clean energy economy. The TPP—with its strong environmental provisions and its inclusion countries representing approximately 40 percent of the world’s consumers—represents an incredible opportunity to do just that. I think our unprecedented bilateral relationship gives the United States and Canada an opportunity to be leaders in that transition to a clean energy economy, which makes events like the SelectUSA Canada Conference all the more important!

To underscore my belief in the importance of growing and expanding that relationship, I was pleased to use the conference as a platform to announce two exciting new cross-border investment initiatives. First, it was my pleasure to announce the establishment of the Ambassador’s Meritorious Investment Award, which will recognize Canadian companies that invest in the United States. We presented the first of these awards to Champion Petfoods, a Canadian pet food manufacturer that is getting ready to open its first U.S. pet food kitchen in Auburn, Kentucky — an investment they undertook following Kentucky Governor Steve Beshear’s 2013 trade mission to Canada!

Secondly, during my SelectUSA Canada Conference keynote speech, I was happy to announce a new public-private partnership called the Invest USA Committee. Based in Toronto, the committee will bring together key players to promote and facilitate Canadian investment in the United States. They’ll do so through educational programs, promotional events, business matchmaking, and assistance to Canadian investors.

It’s an exciting time in the U.S.-Canada relationship, full of lots of incredible opportunities for growth, investment, innovation and expansion. SelectUSA Canada represents just one avenue for those opportunities to take shape. It’s my sincere hope that all of us in U.S. Mission Canada can play a major role in that, and it’s why my commercial team across Canada is ready, willing and able to assist anyone looking to create or expand their cross-border trade with us. To find out where to get started, please visit BuyUSA.gov/Canada!

 

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The Industrial Global Village Meets in Hanover

December 3, 2015

This post originally appeared on Phoenix Contact.  Jack Nehlig is President of Phoenix Contact USA

The industrial global village has its city center, and it’s in Hanover, Germany. Each year more than 250,000 of the world’s brightest technical talents gather at Hanover Messe to advance the art of worldwide manufacturing. And you should be there too!

As the U.S. leader of Phoenix Contact, I have learned firsthand the value of an annual pilgrimage to Hannover Messe each April. And because of its importance to the manufacturing world, we annually host a select group of our customers and distributors to share the excitement that the Hannover Messe experience provides. So in the spirit of sharing, here are my five reasons an American manufacturing engineer, manager or executive ought to attend Hannover Messe:

  1. ONE-STOP SHOP!

It truly is a global gathering of the world’s manufacturing industry. Nowhere else can you experience such a comprehensive display of companies in one place. And this is no slimmed-down U.S. tradeshow. The companies that exhibit have expansive booths with in-depth product displays, and are staffed by their best and brightest.

  1. IT’S A MANUFACTURING INNOVATION FASHION SHOW!

Just as Paris is the place where the trendiest clothing fashions debut each year, Hannover Messe is where the industrial world puts its latest fashions on display. It’s no secret that Germany is a world leader in manufacturing technology, so there’s no better place to hold a manufacturing innovation fashion show. Companies take great pride in displaying their “Next Big Things” for the first time, and actively compete for the Hermes Award, given to the best innovations of the year.

  1. CONNECTIONS FOR EXPORT!

This is a great benefit for small and medium enterprises (SMEs) with limited resources. Since Hannover Messe is a global gathering, it is easy to make connections with like-minded companies and channel partners looking for expansion. And it is not just EU connections; people from Asia and Latin America flock to the show as well.

  1. LEARNING!

While you can certainly learn about new products through firsthand visits to the thousands of exhibitors’ booths, you can also attend many educational events focused on the newest industry trends. Of course this year, the hot topics of Industrie 4.0, and the Industrial Internet of Things, will be on full display. So confirm a hunch, learn more about a technology, or simply scout out your competition! Nothing beats firsthand interactive learning.

  1. THE ENERGY!

It only takes once and you’re hooked! Each year I attend the fair and come home excited about being in a technology career, and excited about the future of manufacturing. The icing on the cake is that Germany is a beautiful country, and the people of Germany are gracious hosts! And did I mention the best beer in the world??!!!

So I hope these reasons have been enough to convince you to attend Hanover Messe this year. But there is one more for 2016! The U.S. is going to be the Partner Country, which means special attention will be given to American industry trends and the re-emerging manufacturing environment in the U.S.

And a last bit of advice… book your tickets and hotels early. The most convenient accommodations go fast, so if I’ve convinced you, act now!

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