Archive for April, 2012

h1

International Visitors to the U.S. Jumped 9 Percent in February 2012

April 27, 2012

Claudia Wolfe is an Economist in the Office of Travel and Tourism Industries (OTTI) within the International Trade Administration where she focuses on international visitation to the United States.

As Pow Wow winds down this week, it’s great news that international visitation to the U.S. is up this year over last year.

The number of international visitors to the United States rose 9 percent in February from a year ago, after record arrivals in 2011 and an increase in visits in January 2012.

A total 4.2 million international visitors came to the U.S., with the largest number from nearby Canada and Mexico in February of this year.

Of the top 10 nations sending visitors to the U.S., two countries posted double-digit growth: Brazil and China. Brazil is up more than 27 percent in 2012 over last year with 294,052 arriving in the U.S. and visitors from China so far in 2012 total 227,856, up 40 percent over last year.

Miami, New York’s JFK and Los Angeles LAX airports were the three busiest ports of entry for international travelers in February.

For more information, visit OTTI’s monthly visitation page

h1

“Multiplier Effect” Helps a Technology Company Grow its Export Sales

April 26, 2012

Doug Barry is an International Trade Specialist in the Trade Information Center, part of the U.S. and Foreign Commercial Service

CTRL Systems is a Westminster, Maryland based business specializing in ultrasound applications for use in different industries.  The company sought help from government export promotion programs including the International Trade Administration (ITA). CTRL’s founder and president Bob Roche spoke with Doug Barry of ITA’s Trade Information Center, U.S. Commercial Service.

Barry:  Your company literature says that you are a “nondestructive testing company.”  What then is a destructive testing company?

Roche:  Well, destructive would mean you’d have to tear something apart to do something productive.  But in our case, it’s ultrasound, nondestructive, testing allowing for diagnosis while the equipment is still in motion.

Barry:  And it’s mainly leaky pipes? 

Roche:  A leak is one of the applications of ultrasound.  There are several others.  In the case of a leak, one of the main uses is in the area of energy conservation and cost reduction.  And one of the key ways of reducing costs is with compressed air.  Compressed air historically has a wastage of 20 percent to 30 percent.  So with our technology, users can quickly locate and repair and confirm the repair and then reduce consumption. Our CTRL Energy Savings Program will also show the cost of energy before and after the repairs

Barry:  What are some of the more interesting leaks you’ve handled?

Roche:  One claim to fame is that we put this technology on the International Space Station in 2001.  NASA had been spending eight years trying to do that.  We helped them with it in six months.

The CTRL Systems, Inc. UL101 uses ultrasonic technology for predictive maintenance, troubleshooting, safety, and quality control

The CTRL Systems, Inc. UL101 uses ultrasonic technology for predictive maintenance, troubleshooting, safety, and quality control

Barry:  Did you go up there yourself for the install?

Roche:  No, I didn’t get to go. NASA uses it for when they dock and the two doors come together.  They can quickly scan and make sure they’ve got a good seal before they open the units.  While on mission, it’s been able to find failures on board the space station.  One of the situations was when they were losing their internal oxygen out to space and they had to quickly find those problems and save the precious commodity of oxygen, which there’s not a whole lot of in space.

Barry:  Give us a little background on how you developed the international side of the business.

Roche:  I would like to say that it was a well laid out plan, but actually it was more of a “too dumb to know that you couldn’t do it.”  Our technology is a handheld diagnostic technology.  It is cross-language in application – and English is a universal language for commerce, especially for engineers.  So there was no barrier for us to deliver the product outside our borders.  We began doing some marketing through the Internet.  We began working with the Export Assistance Center of the International Trade Administration and the Maryland Department of Economic Development.  The Export Assistance Center in Baltimore introduced us to our first customer in Germany back in 2000. We now sell our product around the world.  Export is between 38 to 42 percent of our annual revenue stream. 

Barry:  What’s your experience in China?

Roche:  We’ve been working in China for about ten years. Four years ago we began doing a pilot program into their power industry, and we now have about 25 percent of their power plants using the CTRL UL101.  We expect to have about 40 percent penetration by the end of this year.  Within the next two to three years, close to 100 percent of the power plants will be using our technology.

Barry:  How do you protect your Intellectual Property in China?

Roche:  Our product is protected through IP and not through patent.  Secondly, we develop relationships with partners that we feel as comfortable as we can possibly be.  Third, we have had companies try to reverse engineer our technology.  They have reverse engineered the application but not the functionality and performance of our technology.  So with that in mind, we’re not fearful to go anywhere in the world, including China.  The other way to circumvent piracy is always innovating and always advancing your technology so that by the time someone matches what you’re currently doing, you are already on to the next version of the technology, advancing it to greater performance. 

Barry: Where are the devices made?

Roche:  The handheld sensors are made in the U.S.  A few years ago we wanted to take a couple of our components and reduce their cost of production.  They were being machined, but would lend themselves to  injected mold process.  At the time cost in the U.S. was still prohibitive.  So we sourced them in China. About a year ago, we were running into difficulties in communication and production runs. We were able to find U.S. vendors who could now provide compatible pricing in our run rate qualities.  So I see it as a real success story where old pricing matrix’s forced companies to offshore, but now U.S. vendors have made adjusted which allows us to bringing it back into the U.S. 

Barry:  Can you give us another example of how the Department of Commerce helped you to accomplish a business goal that was meaningful?

Roche:  We talked about the business in Germany. This led to a relationship with an engineering firm that has taken our technology and built it into a very specific application– assessing the condition of an automotive engine and the odometer reading for accuracy and whether it has been fraudulently modified. They’re doing quite well selling this package in West Europe and the Baltic countries where a high percentage of odometers are tampered with.   So our software algorithms using our ultrasound technology is now giving people a new means of addressing this problem. 

Barry:  What has your company learned in doing business overseas? 

Roche:   What we learn is that everything is both regional and timing, so something that we may have done successfully here can then be conveyed to another region of the world and they can replicate that success to their client’s benefit, or vice versa.  A client overseas – just like the automotive situation – may find a niche with the technology, having it deployed with great success and then bring that to other segments around the world.  So that’s more what we’re learning is the interchangeability of success and best practices.  75 percent of the people that’ll be using our technology in the next five years don’t know it exists today. 

Barry:  You’re describing a multiplier effect. By virtue of being out there in the world and meeting these other companies, they have an aha! moment after seeing what you have and apply it to a purpose that you hadn’t thought of before.

Roche:  That’s true. Our technology is what allowed them to do that. We are learning new applications every day

Barry:  You mentor other companies that are interested in exporting.  What is the single most important piece of advice that you give these folks who come to you for counsel?

Roche:  I just strongly suggest to them to give it consideration– to evaluate what exporting could mean to their company.  Mostly I think owner’s just don’t have as much time as they have questions.  That is where the local District Export Council and Export Assistance Center can be of great help.  In the long run I think they will be pleased with the return.

h1

U.S. Auto Parts Firms Find Partners in Russia

April 25, 2012

Elena Mikalis is an International Trade Specialist in the Office of Transportation and Machinery within the Manufacturing and Services division of the International Trade Administration

This week Deputy Under Secretary Michelle O’Neill is leading a delegation of 12 auto parts and services companies to explore opportunities for sales to the burgeoning Russian auto industry. I am fortunate to be accompanying her and the 12 U.S. companies who are on the mission. We have completed two of our three stops in the mission, having left Samara today.

In 2011, vehicles sales in Russia grew 39 percent to 2.6 million units. U.S. auto components and parts manufacturers are well-positioned to help supply the growing Russian auto industry, which grew 98 percent from 2010 to 2011, reaching $125 million. In 2011, Russia imported almost $1.5 billion in U.S.-made components, parts, and finished motor vehicles, an increase of 75 percent from 2010.

Deputy Under Secretary Michelle O'Neill presents a certificate of recognition to Konstantin Avdeev, President and CEO of Triton-Import for their support of U.S. exporters of automotive spare parts.

Deputy Under Secretary Michelle O’Neill presents a certificate of recognition to Konstantin Avdeev, President and CEO of Triton-Import for their support of U.S. exporters of automotive spare parts.

The trade mission delegation participated in one-on-one meetings with potential business partners in Samara, have met with key Russian Government officials, and visited automotive assembly plants and component manufacturers in Russia’s automotive industry centers.

Deputy Under Secretary O’Neill launched the mission in Moscow by presenting Triton-Import, a Moscow-based automotive parts distributor, with the Commerce Department’s Certificate of Appreciation for Achievement in Trade. Triton-Import has helped U.S. companies export more than $50 million in automotive spare parts to the Russian market. “Triton-Import has been an important partner and friend to many U.S. small and medium-sized firms,” O’Neill said.

The trade mission advances President Obama’s National Export Initiative which aims to double U.S. exports by the end of 2014, supporting economic and job growth.

With more than 140 million consumers and a growing middle class, Russia remains one of the most promising markets for U.S. exporters. Sales of cars and trucks in Russia are currently growing at an annual rate of 30 percent. In 2010, Russian customers purchased 1.9 million cars. This figure includes 646,000 new Russian cars and 1.25 million foreign cars, both imported and produced in Russia. Importers forecast continued rapid growth of approximately 20 percent in 2011. If these trends continue, most experts project Russia will be the largest automotive market in Europe within the next few years.

Related: Auto Companies in Russia: Always Two Sides to a Story

Foreign automakers have taken notice of the Russian automotive market’s potential for growth and are building assembly plants to meet the increasing demand for high-quality automobiles. General Motors, for example, has a $335 million plant in Togliatti, a joint venture with Russian auto giant AvtoVaz. The mission participants will be touring this facility at the end of the week to round out their trip. Other major international producers, including Nissan, Toyota and Hyundai, have made significant investments in St. Petersburg and the surrounding Leningrad oblast, turning it into a new automotive assembly cluster.

U.S. mission participants are further encouraged by Russia’s recent invitation to join the World Trade Organization. Russia is expected to accept this invitation and formally join the WTO this summer. As a result, Russia has committed to reducing many of its tariffs on motor vehicles and parts — some of which run as high as 35 percent.

It’s an exciting time in the auto industry and Russia is a great market for U.S. auto parts and suppliers to find sales and partners.

Samara, the Detroit of Russia

Samara, formerly known as Kuybyshev, is one of the largest and most prominent regions in Russia. It is also referred as Region 63 and is situated in the south-eastern region of European Russia. Samara region is the administrative hub of the Samara oblast and is one of the most stable leaders of the national economy. Similar to Detroit, Samara is situated close to reliable transportation, has well developed infrastructure for manufacturing and access to parts and supplies.

Samara region is renowned across the world for its planes, cars, bearings, aluminum and cables. It is also the hub of the Russian space industry. Satellite launchers, unique aircraft engines and manual space crafts are produced in this region.

The Samara region is a hub of innovation and industrial development. It provides the essential environment required for innovative development. This includes, a significant industrial and scientific potential, availability of well-trained personnel and a well-established infrastructure of innovative activities. The obvious advantages of Samara region are the favorable business climate and the multidisciplinary structure of the industrial system.

Development of Samara Region’s automobile cluster is a priority in the development of the regional economy. Share of automotive industry in the regional industrial output amounts to more than 35%, in machine building – over 70%. The automobile cluster includes a large number of firms producing cars and car components, as well as providing transport services.

Samara Region is one of Russia’s the most significant transport hubs.

The share of automobile transportation in the total volume of transported freight is 43%. The extensive network of public paved roads covers 12,700 km (7,891.4 miles). The Moscow – Chelyabinsk federal highway crosses the crosses the region, with links to Kazakhstan, Central Asia and northern parts of Russia. 55 transport companies serve the region′s passenger and freight transport by region and Russia.

Railway transportation accounts for 22.8% of freight traffic. Samara Kuibyshevskaya Railway has the total length of 1,389 km (863 miles).

h1

TAKE-OFF! (traveling, that is) New Travel Indicators Website Launched

April 25, 2012

Iris Ferguson works in the Office of the Under Secretary within the International Trade Administration

Spring is in the air, and we here at the International Trade Administration are busy coming up with fresh ideas.

Our latest creation is the launch of ITA’s first-ever travel indicators website.  It comes just in time for the international Pow Wow show in L.A., where we’ve had lots of great conversations on boosting travel and tourism to and within the U.S.

The graph shows the number of B1/B2 visas issued in Fiscal Years 2009, 2010 and 2011 in China, Brazil, India and the remainder of visa-issuing posts worldwide.

The graph shows the number of B1/B2 visas issued in Fiscal Years 2009, 2010 and 2011 in China, Brazil, India and the remainder of visa-issuing posts worldwide.

What’s on this travel indicators site, you ask? Well, in addition to basic travel tips, it contains a set of 15 graphs that have tons of useful information for the travel and tourism industry and foreign visitors.

Ever wanted to know the average wait times at six major airports for international arrivals processing?  Or wanted the latest on airline capacity in key markets?  Well now you can check them out on our travel indicator website.
Of particular interest are the graphs on visa wait times.  Visitors can see how the State Department’s recent initiatives to increase staff, extend interview hours, and expand facilities have dramatically decreased the time it takes to get a visa in key markets, like Brazil.  Being able to see these average wait times in China, Brazil, and India is great news for international travelers looking to plan ahead.

We’re working to update this site monthly, so you’ll have the latest info coming in from the Departments of Commerce, State, and Homeland Security.

Go check it out for yourself!

h1

Travel Forecast Projects Increase in International Visitors between Four and Five Percent by 2016

April 25, 2012

This post contains external links. Please review our external linking policy.

Mark Brown is a Senior Market Research Analyst with the Office of Travel and Tourism Industries in the Manufacturing and Services division of the International Trade Administration

This week is a pretty exciting time for the travel and tourism industry. The U.S. Travel Association’s annual International Pow Wow trade show event, is taking place in Los Angeles and was the venue for Commerce Secretary John Bryson to release the 2012-2016 travel forecast. The U.S. Department of Commerce produces a semi-annual travel forecast, one in the spring to coincide with the Pow Wow event, and one in the fall to coincide with an annual travel industry marketing outlook event.

Our latest forecast shows that international traveler volume to the United States is expected to build on the two consecutive visitor volume records set in 2010 and 2011 and grow at a four percent to five percent rate from 2012 through 2016.

Under Secretary of Commerce for International Trade Francisco Sanchez cuts the ribbon to open Pow Wow 2012 with Travel and Tourism officials

Under Secretary of Commerce for International Trade Francisco Sanchez cuts the ribbon to open Pow Wow 2012 with Travel and Tourism officials

When compared to the fall 2011 forecast, the spring 2012 forecast represents a further downward revision in visitor volume growth, and the fall had been revised downward compared to the spring 2011 forecast. These revisions reflect several factors, including 2011’s solid, but below-forecast performance, and the International Monetary Fund’s revision of economic conditions for many of the U.S. top visitor origin markets.

That’s the bad news. But the good news is that the forecast still projects solid growth in visitor volume over the 2012 to 2016 period…and at a level higher than the United Nations World Tourism Organization’s forecast for the world, which is between 3.5 percent and 3.8 percent annual growth over this period.

The current forecast for the USA also does not yet factor in the potential impact from the Travel Promotion Act of 2009 legislation, which was signed into law in March 2010. The law established the non-profit Corporation for Travel Promotion, now known as BrandUSA, and a funding mechanism to market the USA as a premier travel destination. BrandUSA just unveiled their marketing plan at the Los Angeles Pow Wow event. Their impact on travel to the USA would be above and beyond the Department’s forecast levels.

If the forecast holds true, visitor volume would grow from 62.3 million in 2011 to reach 65.4 million in 2012 and 76.6 million by 2016. This translates into total growth of 14.4 million additional visitors in 2016 compared to 2011, growth of 23% versus the 2011 level, and a compounded annual growth rate of 4.2 percent.

Related: TAKE-OFF! (traveling, that is) New Travel Indicators Website Launched
International Visitors to the U.S. Jumped 9 Percent in February 2012

Tourists from all world regions are forecast to grow over the five-year period, ranging from a low for the Caribbean (+9 percent), to a high for Asia (+49 percent), South America (+47 percent), and Africa (+47 percent). All but three of the top-40 visitor origin countries are forecast to grow from 2011 through 2016. Countries with the largest total growth percentages include China (+198 percent), Brazil (+70 percent), Argentina (+46 percent), Australia (+45 percent), Korea (+35 percent), and Venezuela (+35 percent).

It’s important to monitor the fast-growing markets, but what matters more are the largest-growth markets. The North America world region is forecast to account for the largest proportion of the total visitor growth of 14 million visitors (42 percent). Asia (25 percent), Western Europe (11 percent), and South America (13 percent) are expected to account for the bulk of the remaining 58 percent of total growth in visitor volume forecast in 2016 compared to 2011 actual volume.

The countries contributing the most to total growth by 2016 are Canada (additional 4.47 million visitors), China (2.16 additional visitors), Mexico (1.54 million additional visitors, Brazil (1.06 million additional visitors), and Australia (463 thousand additional visitors).

To learn more about the spring 2012 Travel and Tourism Forecast, visit www.trade.gov. To learn more about Commerce’s efforts to increase travel to the U.S., visit www.commerce.gov.

h1

ITA is Doing Our Part to Promote Efficient Spending, Improve Efficiency

April 23, 2012

Jim Donahue serves as the Deputy Chief Financial Officer and has been with the International Trade Administration since 2001.

Even before the President issued Executive Order 13589 entitled Promoting Efficient Spending the International Trade Administration (ITA), and indeed, all of the Department of Commerce, had been on a mission to reduce spending in areas where savings could be generated without reducing program effectiveness.

Status report on ITA’s various categories of administrative savings

Status report on ITA’s various categories of administrative savings

Thanks to suggestions and input from numerous ITA staff representing the entire agency ITA has been particularly successful in identifying potential areas where savings are possible and actually following through and capturing the savings.  As the ITA administrative savings team ramped up and started generating successes the novelty of the project breed additional enthusiasm and momentum that became contagious throughout the organization.

The ITA savings target for fiscal year 2012 is $10 million and we are on schedule to hit the target. Unlike most federal actions, the savings that are contributing to the target are extraordinarily diverse in size and description.  They range from a $4,100 savings associated with a redesigned car lease to $360,000 in rent savings by tightening our belts and improving our utilization of space within the Hoover Building here in Washington,D.C.

My personal favorite savings item is the $167,000 ITA saved by using office supplies left over from the 2010 decennial census. ITA staff pitched in this winter to coordinate the delivery and distribution of 50 boxes of pens, paper, files folders and other miscellaneous supplies that could be put to productive use in ITA.

Savings like these are not inconsequential. They save both precious money and reduce waste. Like every businesses around the country, these savings add up. And I am proud to tell you that these are just a few examples of how ITA is taking efficiency spending seriously – and there will be many more examples to come.

h1

U.S. Exporters (and Exports) Increased in 2010, Up 6 Percent from 2009

April 17, 2012

Natalie Soroka is an economist in the Office of Trade and Industry Information within the International Trade Administration where she focuses on international trade statistics and trends.

Last week the Census Bureau released, A Profile of U.S. Importing and Exporting Companies, 2009-2010, which provides information on U.S. companies that can be linked to import or export transactions (otherwise referred to as “identified” companies). In 2010, more than 293,000 U.S. companies exported goods, nearly 16,500 more than exported in 2009.  These companies exported $1.1 trillion in goods in 2010, up 21 percent from 2009. Most of these exporters (266,400 or 91 percent) were single location companies, however the remaining 9 percent of companies that operated from multiple locations accounted for 75 percent of the “known export value” (the value of export transactions that can be tied to specific companies).Graph showing the number of companies that only export (212,419), only import (101,008) or both (80,640)

What do these companies export? Manufacturers accounted for the largest portion of known value in 2010 (60 percent). In addition, the top 50 manufacturers accounted for 43 percent of the entire sector’s known export value. This is higher than the share represented by the top 50 wholesalers (36 percent) and other companies (37 percent) in their respective sectors. Large companies dominate manufacturers’ exports, with 3 percent of manufacturing exporters accounting for 81 percent of manufacturing export value.

On the import side, the number of importers also increased from 2009, up to more than 181,600 businesses. It should be noted that importers and exporters are not mutually exclusive. Of the more than 394,000 companies engaged in trade, more than a fifth (80,640) both exported and imported goods in 2010.

Like exports, while most importers operate from a single location (90 percent), it is the few multiple location companies that account for most (76 percent) of the known import value. Importers also tend to be slightly more concentrated towards the top firms than exporters.

However, international trade isn’t only a big guy’s game. Small and medium-sized companies (those with fewer than 500 employees), or “SMEs”, accounted for 98 percent of all identified exporters in 2010 and 34 percent of known export value.  While they may only contribute 19 percent of the sector’s $683 billion in exports, 97 percent of manufacturing exporters are SMEs. As for wholesalers, SMEs accounted for 62 percent of the sector’s $268 billion in exports.

Unlike previous versions of the Profile, this version includes information on SME companies by 3-digit North American Industry Classification (NAICS) code. In 2010, merchant wholesalers of durable goods comprised both the largest number of SME exporters (60,571) and the highest known export value among these industries ($91 billion).

As for our export and import markets, more than half of identified companies exported to or imported from only one foreign market, and 82 percent of exporters and 90 percent of importers traded with one of the top 25 U.S. trading partners. Exports to Canada, the largest market in 2010, also showed the highest increase in known dollar value compared to 2009 (up $34 billion). On the import side, China was the largest supplier for U.S. importers as well as showed the highest growth in known value, increasing by $66 billion in 2010.

On a state level, Texas, California, New York, Washington, and Florida together accounted for 43 percent of known exports.  Similarly, California, Texas, New Jersey, New York and Illinois accounted for half of the known import value in 2010. Many states posted increases in 2010, with Maine showing the highest increase in known export value (up 46 percent) and New Mexico showing the highest increase in known import value (up 55 percent).

More information and the full profile are both available on the Office of Trade and Industry Information website.

h1

Small Baltimore Engineering Business Believes in “Doing Well by Doing Good”

April 13, 2012

Doug Barry is an International Trade Specialist in the Trade Information Center, part of the U.S. and Foreign Commercial Service

Engineer Kimberly Brown started Amethyst Technologies five years ago.  Her Baltimore, Maryland-based company now has 24 employees and recently expanded its markets to include Africa with help from the U.S. Commercial Service.  Dr. Brown spoke to Doug Barry of the International Trade Administration’s Trade Information Center.

Barry:  Your work in Africa is sponsored by the U.S. Department of Defense.  It sounds like the U.S. government is a good entree for small companies of a certain type to get into the international marketplace.  True?

Brown:  Definitely I agree with that statement.  It was our first prime contract.  And we had different tasks.  And our last task was the Tanzania-scope project.  So as a small business, we were just trying to do business in Maryland.  And we were given the opportunity to provide services to support the U.S. Army in Tanzania and Kenya.  That’s really the only reason why we are in Africa now, and we’re pursuing other opportunities. 

Dr. Kimberly Brown of Amethyst Technologies

Dr. Kimberly Brown of Amethyst Technologies

Barry: Where will you go next?

Brown:  We are currently pursuing opportunities in about five countries.  Most of those opportunities right now are with foreign governments.  We also have been talking to the large NGOs.  Because our work supports global health initiatives, we have value-added resources to assist with the President’s Malaria Initiative, with the Global Health Initiative. 

Barry:  It must be a wonderful feeling to get up every day realizing that you’re contributing to saving lives and improving the lives of, potentially, millions of people.

Brown:  Definitely.  It makes it all worthwhile.  It’s an added bonus to doing business when you’re doing something that is very beneficial, very needed, and it will change lives.  Small things make a very large difference.

Barry:  What do engineers like you contribute to the finding of cures for malaria and other kinds of diseases?

Brown:  We set up laboratories.  One of the primary things we do on the engineering side is we ensure U.S. Food and Drug Administration compliance for equipment. We develop software.  We get specs for clean rooms, laboratories.  So we set up World Health Organization-compliant laboratories for drug testing, developing standards for education, for health care, for transportation and agriculture.  So as engineers, we offer something very unique and beneficial to global health.

Barry:  What did you hear about the U.S. Commercial Service and its local office, the Baltimore Export Assistance Center, that piqued your curiosity about how the U.S. government could help grow the international side of your business?

Brown:  Well, I heard that they can help us identify partners.  They can also assist us with identifying what countries we can do business with and what type of business we can do.  So as a small business, for me, that levels the playing field, because large businesses which are doing business overseas, they have a whole department that’s dedicated to providing these types of services.  And I found out that the U.S. government will help do it for us.  My first meeting with the U.S. Commercial Service, I was told that I needed to find a partner.  Before that, I thought that Amethyst could just go in ourselves and get a contract or look for opportunity.  So they really opened my eyes to:  you need to find a partner.

Barry: Did they provide you with a partner, other than the advice that a partner is needed?

Brown:  They told me organizations to contact.  So in this case, they didn’t actually give me a specific partner, but they gave me leads to identify a partner.  That worked out very well, because I’ve identified several partners in several countries.  And that is very important, because in many countries, as a U.S. company you can’t own a business; you can’t be the primary majority owner.  So you will need an in-country partner. The time involved – again, as a small business, you’re going to need somebody who knows how to do business in that country.  And then the connections – you have to know people.  It’s great advice that I received from the U.S. Commercial Service that is really making a difference in our pursuit of opportunities abroad. 

Barry: Were you a little put off by the fact that it was a government agency?

Brown:  I’ve always had very positive results and had great assistance from government agencies.  My company receives help from the Small Business Administration.  So I never had any hesitance to contact them and am always seeking opportunities to contact government agencies to get resources, especially with doing business overseas. 

Barry:  Do you think that’s a competitive advantage for U.S. businesses to make sure that they know about the government services available and make full use of them?

Brown:  Definitely.  As a small business, and even large businesses know, you need to take advantage of any information that you can receive that is appropriate, that is correct and is free or very affordable. 

Barry:  In working in Africa and with a different culture, have you or your company had to develop a different mindset in order to effectively interact with people from a different culture?

Brown:  We really haven’t had many problems in interacting other than language barriers.  In Tanzania, everything is in Swahili.  So we had to have all our documents translated to Swahili and we hire interpreters.  But other than that, it’s really been a very smooth transition, especially in health care.  That’s a global language.  And everyone understands malaria.  And that’s what we’re doing in Tanzania. 

Barry:  What else are you considering and thinking about now in positioning your company to do more of this kind of work?

Brown:  Well, definitely diversifying, listening to the large businesses like GE.  I attended an event a few years ago, and the CEO of GE talked about going global.  And that always stuck with me, that as a small business we need to do what the large businesses are doing.  Creating jobs in the U.S., doing work overseas is our model.  So we have been aligning ourselves with partners, public and private partnerships; that’s really what we’re focusing on now. 

Barry:  Do you have a person that does that full-time or is that you or do you have someone else in the company?

Brown:  That’s all of us.  Primarily it’s me. But our people who are working in Africa, they often will identify opportunities.

Barry:  As you know, there’s a lot of fear and paranoia, paralysis even, when it comes to thinking about selling something to somebody in a different country.  And what would you say now to the fearful based on your experience?

Brown:  Definitely do your homework.  Use the U.S. Commercial Service to research any country that you are thinking about doing business.  Find out what the markets are, what are the positives, what are the negatives.  And look for in-country partners. And both of those things are resources that the U.S. Commercial Services specializes in helping business with.

h1

Education Trade Mission Builds Ties Between United States and Central Europe

April 13, 2012

Adam Wilczewski is Chief of Staff at the International Trade Administration.

This week 12 regionally accredited U.S. academic institutions will take part in the first-of-its-kind education trade mission to Poland and the Czech Republic. The trade mission, which I will have the opportunity to lead, is part of a larger effort to increase the number of foreign students studying in the United States.

According to Times Higher Education, the United States is home to more than 4,000 accredited higher education institutions, and 14 of the top 20 universities in the world. Furthermore, the Institute of International Education reports there are more international students (in excess of 723,000) studying at U.S. institutions than anywhere else in the world.

University sign in autumn

(Photo iStock/Steve Shepard)

U.S. colleges and universities, such as those on this mission, place a prime importance on keeping their campuses internationally diverse, so that students can gain the most rewarding educational experience possible. And recent developments show that there is both great interest and opportunities for U.S. colleges and universities to recruit students from both Poland and the Czech Republic.

With the passage of new legislation last October, Poland is streamlining the education process—thereby raising educational standards that may further increase interest in study abroad programs such as those in the United States. Poland also has a high concentration of young students with keen interest in higher education. The country’s population of 38 million includes more than 5.5 million young people from 15 to 24 years of age, including 1.9 million students. Moreover, Polish students have a strong affinity toward the United States, and English is the first choice for a second language by almost all high school and university students.

Similarly, the number of Czech students with outstanding English language skills continues to outpace many of their neighbors in the region, improving the ability of Czech students to study at U.S. universities and colleges. And current exchange rates and the visa waiver program are making U.S. educational opportunities an increasingly attractive alternative.

Recognizing these trends points to the eagerness of the educational institutions from across the country to join me on this trade mission.

During the trade mission, our delegation will participate in student recruitment fairs in Prague and Warsaw to connect with students from European universities, secondary schools, and businesses. Trade professionals from the U.S. Department of Commerce based abroad will also be on hand to facilitate networking opportunities and meetings between our delegation and prominent Czech and Polish universities.

We look forward to visiting Warsaw and Prague, and with this, the goal of opening new doors of opportunity and cultural understanding for the next generation. By furthering the avenues to higher learning, we are also supporting economic growth both at home and abroad – and that is something to write home about.

h1

Congressional Hearing in Pennsylvania Links Government Trade Resources to Small Business

April 10, 2012

Tipten Troidl has been working with the International Trade Administration for thirteen years. Currently, she is serving as the Acting Director for the Office of Legislative and Intergovernmental Affairs.

Small businesses are the backbone of the U.S. economy and we need them exporting in order to reach the President’s National Export Initiative (NEI) of doubling exports by the end of 2014.

On Monday, Joseph Hanley, the Regional Director for the U.S and Foreign Commercial Service testified in Pittsburgh [before the House Small Business Committee] on the “Impact of U.S. Trade Policies on Small Businesses and Manufacturing.”  Joe represented the International Trade Administration before the House Small Business Committee’s Chairman Tipton (CO) and Ranking Member Critz (PA).

Hanley noted that ITA’s main objectives are to expand U.S. exports and to create jobs.  The Commercial Service has 108 domestic offices around the country with three in Pennsylvania.  The Pennsylvania U.S. Export Assistance Centers have provided 4,000 individual trade counseling sessions to over 1,000  Pennsylvania business in the past 1 ½ years.  We are pleased to announce that because of these services 257 Pennsylvania companies have reported 688 export successes valued at more than $500 million to 91 different countries. More importantly, 62% of these companies have fewer than 100 employees.

Pennsylvania has a plethora of success stories.

Hanley told the Congressmen about RPM industries, a small business that manufactures pre-lubrication and fluid evacuation for diesel and gasoline engines. His team helped RPM Industries expand its export development strategy by having RPM participate in an overseas trade mission event, Trade Winds, to Brazil.  Hanley happily reported that RPM Industries expects to have sold almost $1 million of its products to Brazil by the end of this year.

Joe also touched on other services that ITA provides to small businesses. ITA’s Petition Counseling and Analysis Unit  provides antidumping/countervailing duty counseling. Their objective is to help U.S businesses understand U.S unfair trade laws in relation to dumping and foreign government subsidies. The work of this office not only levels the playing field for small U.S businesses but helps companies with the process of filing a petition for an investigation.

If you are a small or medium size business and you are interested in giving exporting a try, please reach out to any one of our U.S. Export Assistance Centers because someone like Joe is waiting to help you.