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International Business Headlines

These monthly headlines will provide you with a few highlights of the Commonwealth’s World Trade PA program, managed by DCED’s Office of International Business Development. For more information: check out http://www.newPA.com or call 717/720-7469. To unsubscribe, please click.

TRADE: TITAN TOOL (ERIE) AND 16 OTHER PA COMPANIES USING PA OFFICE IN SHANGHAI TO SUCCEED IN CHINA MARKET

Pennsylvania’s Trade Representative Office in Shanghai has signed up its 17th firm under the Envoy Program. Envoy is a fee-for-service program designed to provide Pennsylvania businesses with a low-risk alternative to setting up their own office and hiring their own employees in the Chinese market. While each Envoy scope of work is customized according to the client’s specific needs, there are two primary ways Pennsylvania companies have been utilizing the Envoy service: As a physical office solution (business center) to house an in-country company representative, or as a turn-key solution in which the client outsources their China development to a team built and managed by the Pennsylvania office staff. PA industries utilizing Envoy range widely, from technical publications, industrial machinery, to universities and construction management.

A representative of Envoy subscriber, Titan Tool in Erie, explains, “Titan first explored the China market in the fall of 2007 as participants on the DCED Trade Mission led by then Secretary Dennis Yablonsky. Through the connections and relationships we made during that trip, it became clear that we had an opportunity in China. Our business is a niche business and the volume is consistent, but not massive - so opening an office was not a feasible economic option but we needed someone we could trust to develop the incredible potential of the market. After exploring available channels and opportunities, it became clear to us that partnering with the Pennsylvania trade representative in Shanghai and enrolling in the Envoy program would be the best way to move forward. We now have a developed customer base that continues to expand, and better yet, are seeing repeat orders. We are confident that our decision to use this vehicle (Envoy) for Titan's market presence was the right one and are very happy with the Shanghai office’s effort on Titan's behalf. Titan's business in China is off to a great start and the future looks very promising."

INVESTMENT: BRITISH TECHNOLOGY COMPANY CHOOSES PHILADELPHIA FOR ITS U.S. HEADQUARTERS

UK ICT/Software and multimedia company WebAnywhere Ltd. announced that it has selected Philadelphia over Richmond, Virginia and Orlando, Florida as the location for its US headquarters. The company first contacted DCED’s Center for Direct Investment, through its UK-based investment representative, Richard Kilner, in November 2007 and over the last two years has been steadily developing the US market. Founded in 2002, WebAnywhere employs 70 in the UK specializing in the provision of internet learning resources and the design of elementary and high-school websites. WebAnywhere has over 2,000 schools as clients in the UK. Critical factors in the choice of Philadelphia were its strategic location on the Boston-Washington corridor, the testimonial of other UK firms with a US subsidiary in Philadelphia and not least Select Greater Philadelphia's key involvement in the identification of the candidate now hired to head up the US operations. WebAnywhere expect to employ at least 3 staff in 2010 and likely to expand to 25 over a three-year period if the US market develops as anticipated.

TRADE: WORLD TRADE PA TRADE MISSION TO SOUTH AFRICA BRINGS SUBSTANTIAL EXPORT SALES TO BEDFORD PLASTICS COMPANY

Bedford Reinforced Plastics, Inc. (BRP) boasts 35 years of manufacturing experience in the production of Custom & Standard Pultruded Fiberglass Products. BRP has continuously expanded its capacity over the last 35 years to provide its clientele, in over 13 industries, with the service required for the rapidly expanding composite market. As a result of the company’s participation in the June 2008 South Africa Power & Energy Trade Mission, Bedford Reinforced Plastics signed an agreement with an Original Equipment Manufacturer located in Johannesburg. To date, BRP has done $2 million worth of business with the South African company.

Jerry Miller, International Trade Manager, states: “BRP is well pleased with the results of our company’s participation in the 2008 trade mission with the state. We are going to take a much closer look at participating in other state sponsored trade missions as a result of our success in the power and energy mission. The level of service and expertise offered through this program was outstanding.”

PORTS: NEW, DIRECT CONTAINER SERVICE TO NORTHERN EUROPEAN PORTS MAKING PORT OF PHILADELPHIA MORE COMPETITIVE

The Philadelphia Regional Ports Authority (PRPA) and Greenwich Terminals, LLC, celebrated the arrival of the MSC Natalia, the first ship to call for a new Mediterranean Shipping Company (MSC) service from Philadelphia to North Europe. This important container service gives the Port of Philadelphia a direct, weekly connection with the key north European ports of Bremerhaven (Germany), Felixstowe (UK), Antwerp (Belgium), and LeHavre (France). MSC service will call at the Port’s Packer Avenue Marine Terminal. The MSC Natalia can handle approximately 3,000 twenty-foot equivalent units, or almost 1,500 standard tractor trailer loads. The ship has a gross tonnage of 40,177 lbs. and capacity for refrigerated containers. This new service gives exporters and importers in Pennsylvania, as well as companies throughout the Eastern USA and Canada, direct access to the European marketplace.

This new agreement among PRPA, Greenwich Terminals and MSC provides direct access from Philadelphia to Europe. It will make the Port of Philadelphia more competitive and offer more choices for backhaul cargo and exports.

TRADE: STATE AGENCIES PARTNERING TO BRING NEW EXPORT OPPORTUNITIES TO PENNSYLVANIA FOREST PRODUCTS INDUSTRY

The synergy between the Pennsylvania Hardwoods Development Council (HDC) in the Department of Agriculture and the Office of International Business Development (OIBD) in the Department of Community and Economic Development has worked successfully to bring business to the forest products industry.

The HDC was created by the General Assembly in 1988 to support timber access issues on private and public land, provide economic development to the industry, do international and domestic marketing on behalf of the industry, and to support public education about the needs and issues related to the industry.

In 2000, when the American furniture industry largely moved to China and Pacific-Rim nations, the HDC and OIBD coordinated the first of many trade shows to reach the furniture manufacturers in China. Since that time, the HDC and OIBD have assisted over 120 Pennsylvania lumber suppliers to enter new markets in different regions of China, South Korea, Vietnam, India and the Middle East.

The strong relationship between the HDC and the OIBD has enabled these efforts to be very successful. By sharing the resources of the international trade representatives and the Regional Export Network, the HDC has been directly able to assist hardwood companies to export lumber. By not only sharing the resources but also the results, the HDC and OIBD together, can claim over $150 million in export sales associated with our assistance.

In addition to helping Pennsylvania companies enter new markets abroad, together, the overseas trade representatives and Regional Export Network have hosted many in-bound International Hardwoods Buyers’ Missions bringing qualified international hardwood buyers to Pennsylvania. During 3-5 day events, buyers network and meet many suppliers of lumber, logs, dimension, flooring, veneer, moulding and other secondary wood products. These opportunities have strengthened Pennsylvania hardwood suppliers and made them more competitive in the world market.

Currently, the HDC and OIBD are cooperatively planning for a Buyers Mission in Pennsylvania with 15 new international buyers, May 9-14. We are planning for a USA/PA pavilion at ForMóbile wood supply trade show in Brazil, July 27-30, 2010. There will also be a Turkey/Egypt trade mission, October 12-19, 2010. In 2011, there are preliminary plans to co-host a mission to India and Pakistan, a trade show in Vietnam, and host another International Buyers Mission to Pennsylvania.

INVESTMENT: INTERNATIONAL REPORTERS COMING TO PENNSYLVANIA TO LEARN ABOUT GROWING CREATIVE INDUSTRIES SECTOR

Over the past three years, DCED’s Office of International Business Development has partnered with the Team PA Foundation to bring groups of international reporters to the Commonwealth with the purpose of getting the word out about our major industry clusters (such as life sciences, defense, plastics and clean technology) thus attracting the interest of potential international investors. The next press tour is focused on our growing creative industries sector and will take place from March 22-25. It will highlight the growing number of interactive digital media companies throughout Pennsylvania. OIBD and the Team PA Foundation are organizing the program with a variety of partners including Carnegie Mellon University, the Pittsburgh Regional Alliance, the University of Pennsylvania, Drexel University, Select Greater Philadelphia, the Videogame Growth Initiative-Philadelphia, and a selection of cutting-edge digital design and video game studios in Pennsylvania. Journalists from Australia, Canada, France, Germany and The Netherlands are planning to participate in the tour, ensuring global coverage of Pennsylvania’s strengths in these industries.

TRADE: PENNSYLVANIA REMAINS TOP 10 EXPORTING STATE DESPITE GLOBAL TRADE DECLINE IN 2009

Pennsylvania’s exporters shipped goods worth $28.2 billion in 2009----a 17.8% drop from the $34.4 billion in goods shipped a year earlier, as reported by the World Institute for Strategic Economic Research. Pennsylvania exports had been riding a strong growth curve for the previous 6 years but the global economic downturn and its impact on international trade brought about the commonwealth’s first decrease in exports since 2002. If there is any good news to glean from this, Pennsylvania’s drop was not as steep as the national average----18.7%----and not as severe as larger exporting states such as NY (-28%), Michigan (-27.5%), and Washington (-22.6%). Pennsylvania remains the 10th largest exporting state in the country.

Industry sectors leading the decline in 2009 were railway stock (- 40.3%), iron and steel (-38.3%), organic chemicals and plastics, each down 36%). Bucking the trend were exports of pharmaceutical products, up 94%, valued at $2.69 billion.

Among Pennsylvania’s top export markets, sales of goods to Brazil (-50%), Belgium (-39.9%) and Ireland (-59.5%) showed the steepest declines while sales to Switzerland rose 108% during the same period. Sales to Gibraltar hold the record for the largest one-year increase in PA exports for 2009---up an astounding 201,000% to$34 million.
(Source: WISER, 2010)

PORTS: US DISTRICT COURT RULING ALLOWS DEEPENING OF DELAWARE RIVER TO BEGIN IMMEDIATELY

The United States District Court for the District of Delaware, early this month, refused to block the critically needed deepening of the Delaware River to 45 feet. In a decision signed by Judge Sue L. Robinson, the Court ruled the project could proceed, but that it expected the Army Corps of Engineers to work closely with impacted states on future stages of the project. In her decision, the Judge wrote, “the public holds a vested interest in the nation's environmental preservation efforts,” but that “the public holds an equally compelling stake in the continued economic vitality of the Delaware River ports.” She noted, “Congress has made the determination that it is in the public interest to proceed with the Deepening Project.” The combined ports of the Delaware River currently support an estimated 75,000 jobs, generating billions of dollars of economic activity and payroll wages, and contributing more than $150 million in state and local taxes. The deepening, first proposed almost two decades ago, is projected to directly create more than 8,000 new jobs and is critical to the long-term economic prospects of Philadelphia-area ports. Chairman of the Philadelphia Regional Port Authority (PRPA), John H. Estey, the lead local sponsor of the project, said “PRPA looks forward to moving quickly to begin the project, protect current jobs and, hopefully, foster the creation of new ones.”

TRADE: CENTRE DAILY TIMES ARTICLE HIGHLIGHTS HOME GROWN EXPORTERS SUCCESSES

Centre County companies are featured in an article highlighting recent export successes of area companies, Restek, Minitab, Sound Technology. In some cases, small firms follow customers and clients into foreign markets; in other cases, companies take the initiative and obtain export assistance from Pennsylvania’s trade development program available through SEDA-COG’s offices based in Lewisburg.

If you have questions regarding the above articles, please contact:

peoneill@state.pa.us or TRADE related articles; dbriel@state.pa.us for INVESTMENT related articles; hpacker@state.pa.us for PORT related articles and lwalter@state.pa.us for UNIVERSITY/ALUMNI related articles.