2015 western washington business partnership forum "export assistance“ greater tacoma trade &...

2015 Western Washington Business Partnership Forum "Export Assistance Greater Tacoma Trade & Convention Center

Why Should You Export? 95% of the worlds consumers are outside of the U.S. Exporting helps to diversify your client base and take advantage of regional growth If you are not exporting, its highly likely your competitors are selling abroad or will be soon Free trade agreements, the Internet, improved transportation, and Government assistance to aid U.S. companies OpportunityDiversificationCompetition Business Facilitation

Economic Impacts of Exporting Exports help to diversify the U.S. economy U.S. manufactured exports support 6,000,000 American jobs Trade generates $9,000 more in purchasing power for the average American family Companies that export are 8.5% less likely to go out of business Jobs related to exports pay 15% more

Market Diversification Extend product life cycles Counter unstable economic markets Ability to maintain production year-round o Seasonal Differences o Consistent Sales

Exporters Are Small Business 98% of U.S. Exporters are SMEs with < 500 employees 75% of U.S. Exporters have < 20 employees 7 in 10 new U.S. jobs are created by small businesses More than 1/2 of U.S. Exporters sell to only one foreign market, usually Canada or Mexico

Are You Export Ready? Domestic Success? Production Capacity? Financial Resources? Management Commitment? International Plan with Goals? Know-how? (shipping & methods of payment)

Common Export Mistakes Lack of Export Business Plan Low commitment to exporting Neglecting export customers for local customers Reliance on inadequate partnerships Failure to modify products & methods to accommodate foreign regulations and preferences

Determine Product Potential Examine Domestic Market Success Assess Unique or Important Product Features International Market Research Where are International Hits Coming from on your Website? Target markets? Where are Your Competitors Selling?

Develop An Export Strategy Be PRO-ACTIVE & REALISTIC about your ability to expand Define your resource limitations (money, personnel, and time) Identify a few target markets Evaluate target markets, customers, distribution channels Evaluate future profits & opportunities to expand business Develop an entry strategy for each market

From Procurement to Exporting

U.S. Government Procurement Small & Medium Business are involved with U.S. Government procurement which involves a domestic sale of goods and / or services U.S. Government procurement can also involve the overseas shipment of goods and provision of services to Facilities of U.S. Government Agencies located in Foreign Countries

Foreign Government Procurement This opens the door for U.S. companies to consider selling indirectly to Foreign Governments for procurement sales of goods and /or services through Agents representing the Foreign Government either located here or abroad This opens the door for U.S. companies to consider selling directly to Foreign Governments for procurement sales of goods and / or services

Foreign Government Procurement Government Procurement typically accounts for the largest share of public expenditures aside from government salaries and social benefits Government Procurement is generally between 14 to 20 percent of a countrys GDP, which on a global basis would be between $8.16 trillion and $11.65 trillion annually. This massive spending goes, in large part, to essential public services such as clean water, education, healthcare and infrastructure. It constitutes a significant market and an important aspect of international trade

Foreign Government Procurement North American Free Trade Agreement (NAFTA) U.S. exports to Canada and Mexico support more than three million American jobs and U.S. trade with NAFTA partners has unlocked opportunity for millions of Americans by supporting Made- in-America jobs and Exports As the United States two largest export markets, Canada and Mexico buy more Made-in-America goods and services than any other countries in the world

Canadian Government Procurement The Government of Canada reportedly spends about Can$20 billion or approximately US$18.7 billion a year on Goods and Services Public Works and Government Services Canada (PWGSC) is the government's largest purchasing organization, averaging 60,000 transactions and purchases over $14 billion in goods and services annually. While PWGSC buys goods for most departments of the federal government, the departments buy most services themselves.

Mexican Government Procurement The Mexican government purchases large volumes of raw material, repair parts, finished goods, and hired services, to execute important infrastructure and construction works In 2014, Mexicos federal budget authorized by the Mexican Congress is $342 billion Public procurement accounted for 40 percent of the federal budget (around 10 percent of gross domestic product, GDP).

Advocacy Center The Advocacy Center coordinates U.S. government interagency advocacy efforts on behalf of U.S. Exporters bidding on public-sector contracts with Foreign governments and Foreign Government agencies The Advocacy Center U.S. Department of Commerce 14th Street & Constitution Avenue, N.W. Room 2840 Washington, DC 20230 Tel: (202) 482-3896 http://export.gov/advocacy/index.asp

Advocacy Center The Advocacy Center also has Commercial Service liaisons to four Multilateral Development Banks: (World Bank, Inter- American Development Bank, European Bank for Reconstruction and Development, and Asia Development Bank) to assist U.S. firms and advocate on their behalf when they compete for Bank tenders. The liaisons counsel U.S. companies on how to work with the Banks and advocate on procurement and contracting issues to ensure fair and equal treatment for U.S. companies

Washington Export Outreach Team Washington Export Outreach Team (WEOT) is a group of Local, State and Federal agencies who work cooperatively together across Washington State to support Washington Exporters.

Washington Export Outreach Team Washington State Department of Commerce Washington State Department of Agriculture Washington SBDC Export Readiness Center Export Finance Assistance Center of Washington Washington SCORE Chapters

Washington Export Outreach Team U.S. Small Business Administration (SBA) Export-Import Bank of the United States (Ex- Im Bank) U.S. Commercial Service / U.S. Department of Commerce USDA Rural Development Seattle MBDA Business Center Impact Washington (MEPS Partner)

This seminar is unique as it walks companies through the exporting process. The presenters are from the Washington Export Outreach Team (WEOT) which is a group of Local, State and Federal agencies involved in trade and export promotion who are resources that can assist them with this process. WEOT Export 101: From Your Door to the World Seminar

These resources can help companies in all stages of the export business continuum including New to Business (NTBs), New-To Export (NTEs), New-To-Market (NTMs), and Expanding Market (EMs) companies. The companies will also have the opportunity for one-on-one networking with all of the Local, State and Federal resources at the end of the event. WEOT Export 101: From Your Door to the World Seminar

WEOT Export 101: From Your Door to the World Seminars are being held around Washington State which will allow you to access local resources to help your small business expand globally at this full day seminar covering: Developing an export business plan Determining appropriate international markets Finding qualified buyers, agents, and distributors Determining pricing and methods of payment Mitigating non-payment risks and financing export transactions Shipping your product WEOT Export 101: From Your Door to the World Seminar

Washington Export Outreach Team WEOT Business Counseling Resources Washington SCORE Chapters Washington SBDC Network Seattle MBDA Business Center Export Finance Assistance Center of Washington (EFACW)

Greater Seattle SCORE Business Consulting Provide Mentoring In Person Online Training and Assistance Deliver Workshops In Class Room and Online Webinars Expert Management Modeling Provide templates and tools to manage a business

Greater Seattle SCORE SCORE - A 50 Year Old U.S Business Mentoring Organization All Volunteer In All 50 States 12,000+ Members 320+ Chapters 10,000+ Clients Served 8 Chapters In Washington State Confidential, Professional Expertise For The Life Of Your Business

SCORE Contact Information Allie Thompson Administrative Manager Greater Seattle SCORE 2401 4 th Ave., Ste. 450 Seattle, WA 98121 Tel: 206-553-7320 Email: [email protected]@scorevolunteer.org https://seattle.score.org/

Washington Small Business Development Center (SBDC) Services A.One-on-One, Confidential, No-Cost Business Advising Finance Business Growth Cash Flow Marketing Business Purchase B.Specialty Training Franklin Covey Profit Mastery NxLeveL Entrepreneurial Training Programs

Washington SBDC Export Readiness Center Services A.Export Advising One-on-one, confidential, no cost to companies new-to-export and wishing to expand current exports Export Assessment Plan Development & Execution B.Foreign Market Research C.Training Ready-Set-Export workshops Specialized training D.Service Provider Referrals

Washington SBDC Export Readiness Center Services Sharon Sappington International Trade Specialist Washington Small Business Development Center Export Readiness Center 13925 Interurban Avenue S. Suite 100 Seattle, WA 98168 Tel: 206.439.3785 Cell: 206.437.2342 Email: [email protected] www.wsbdc.org

Seattle MBDA Business Center Services General management consulting Loans and financial packaging Strategic marketing Public & private sector contracting Certification application assistance International trade development

Seattle MBDA Business Center Global Export Assistance Identification of export markets Export readiness preparation International trade missions and market analysis Export financing packaging OPIC / EXIM Export support apparatus for the Federal government

Seattle MBDA Business Center Felix Ngoussou Director United States Department of Commerce Minority Business Development Agency (MBDA) Seattle MBDA Business Center 1437 S. Jackson Street Seattle, WA 98144 Tel: (206) 267-3131 Email: [email protected]@seattlembdacenter.com www.seattlembdacenter.com

Export Finance Assistance Center of Washington Provides free export finance counseling assistance to small and medium sized businesses. Services How are you getting paid? International payment methods Risk mitigation techniques and strategies Structuring a transaction to provide assurance of payment How are you financing export sales? Understanding financing options Referral to government export finance programs Small Business Administration Export Import Bank of the United States

Export Finance Assistance Center of Washington Seminars and Training: Export finance seminars for new and experienced Exporters Resources for Financial Institutions Strategic Partnerships: Export-Import Bank of the U.S. www.exim.gov U.S. Trade & Development Agency www.ustda.gov Overseas Private Investment Corporation www.opic.gov

Export Finance Assistance Center of Washington Doug Kemper President and CEO 2001 Sixth Avenue Ste. 2600 Seattle, WA 98121 Tel: 206.256.6127 Email: [email protected] Webpage: www.efacw.org

Washington Export Outreach Team WEOT Export Development Resources U.S. Commercial Services Washington State Department of Commerce Washington State Department of Agriculture

U.S. Commercial Service U.S. Department of Commerce U.S. Commercial Service has offices in over 100 U.S. cities and in nearly 80 countries around the world connect U.S. companies with international buyers worldwide Commercial Service Export Promotion Programs The expertise, skills, and experience to help American companies enter and succeed in the Foreign Markets. Access Export Readiness Identify Key Markets Determine Sales Potential Implement Export Plan

U.S. Commercial Service U.S. Department of Commerce Services Trade Counseling Market Intelligence Business Matchmaking Due Diligence Trade Events In-Country Promotion of Your Products or Services Commercial Diplomacy

U.S. Commercial Service U.S. Department of Commerce Diane Mooney Director U.S. Department of Commerce U.S. Export Assistance Center 2001 6 th Avenue, Suite 2610 Seattle, Washington 98121 Tel: 206-553-5615 x 225 Email: [email protected]@trade.gov www.export.gov

Washington State Department of Commerce Export Assistance services Connect Washington State Small Businesses with new international customers Research and Develop New Export Markets Locate business strategic partners Washington State exporters Export finance risk mitigation and advocacy to remove roadblocks Organize Trade Missions, Washington State Pavilions at key international trade shows Financial assistance for small businesses to grow exports Generate investment leads at key international trade shows

Washington State Department of Commerce Assist small businesses to increase export sales in targeted industries Expand the number of small businesses that are exporting Assist small businesses to increase export sales in targeted industries Our Global Reach: Network of Foreign Representation Foreign Representatives under contract Asia - China, India Europe - United Kingdom, France, Germany Foreign Representatives now on stand by basis Japan, Taiwan, Korea, Mexico

Washington State Department of Commerce Mark Calhoon Senior Managing Director Business Services Division Washington State Department of Commerce 2001 6th Avenue, Suite 2600 Seattle, WA 98121 Tel: 206-256-6137 Email: [email protected]@commerce.wa.gov www.exportwashington.com

Washington State Department of Agriculture Export Development Company Recruitment, Export Training, Resource Referral, and Market Identification Export Assistance Buyer/Seller Matchmaking, Market Intelligence, Export Documentation, 10-15 activities annually federally funded Market Access Government Trade Missions, Director-Led Specialty Crop Missions, Trade Barrier Resolution, and Promotions

Washington State Department of Agriculture Overseas Trade Representatives in China, Japan, Korea and Vietnam Trade leads and direct trade contacts Market Research, pricing and packaging information Guidance on shipping, customs & local requirements Trade barrier and technical assistance Assistance in scheduling location appointments Translation services Local knowledge and personal experience

Washington State Department of Agriculture Julie Johnson Export Development Lead WA State Department of Agriculture International Marketing Program 1111 Washington St. SE Olympia, WA 98504-2560 Tel: 360-902-1940 Email: [email protected]@agr.wa.gov agr.wa.gov

Washington Export Outreach Team WEOT Export Finance Resources U.S. Department of Agriculture Rural Development U.S. Small Business Administration (SBA) Office of International Trade (OIT) Export-Import Bank of the United States (Ex-Im Bank)

USDA Rural Development Products & Services A.PRODUCTS Guaranteed Business & Industry Program Loans for rural businesses of all size up to $25 million Businesses do not have to be agriculture related Acquisition or Expansion, Real Estate, Machinery & Equipment, Working Capital Value-Added Producer Grant Program For agricultural producers in rural or urban areas of the state For feasibility studies, business and marketing plans or working capital Often used to enter into a new foreign market or expand an existing one Rural Energy for America Program Guaranteed loans and/or grants for rural, small businesses & agricultural producers For energy efficiency improvements or renewable energy systems

USDA Rural Development Products & Services A.PRODUCTS (Cont.) Intermediary Relending Program Revolving Loan Fund capitalized by USDA to assist businesses unable to obtain credit from commercial banks with loans up to $250,000 Microentrepreneur Assistance Program Revolving Loan Fund capitalized by USDA to assist micro businesses that are unable to obtain financing from commercial sources with loans up to $50,000 (no construction) B. SERVICES Support for cooperatives with research, technical assistance and funding Staff available locally to provide technical assistance Local approval authority up to $10 million

USDA Rural Development Washington State Tuana L. Jones Business & Cooperative Programs Director USDA Rural Development Business & Cooperative Programs 1835 Black Lake Blvd. SW, Suite B Olympia, WA 98512 Tel: 360-704-7707 Email: [email protected]@wa.usda.gov Website: http://www.rurdev.usda.gov/Home.htmlhttp://www.rurdev.usda.gov/Home.html

U.S. Small Business Administration International Trade Programs for U.S. Exporters SBA does not make direct loans. It provides a higher guarantee to Lenders who make these loans to U.S. exporters Export Working Capital Program Up to $5 Million; 90% guaranty for short term loans and lines of credit for export purposes. Export Express Up to $500,000. Short term loans and lines of credit for export purposes processed through Express procedures. 90% for loans up to $350,000 and 75% for loans up with a higher amount. International Trade Loan Up to $5 Million: now with a 90% guaranty. Term loans Facilities, equipment, and working capital that will enhance export ability. Refinancing of existing debt is also available.

U.S. Small Business Administration International Trade Programs for U.S. Exporters Four Categories Of Exporting: 1.Manufactured goods & commodities (& wholesalers) 2.Service Providers USs #1 export! 3.Indirect Exports selling a component that goes into an export 4.International Tourism & Education bringing the foreign buyer here along with their money ALL of these qualify for SBA 90% export loan guarantees!

U.S. Small Business Administration International Trade Programs for U.S. Exporters Sandra Edwards Regional Export Finance Manager, SBA, Seattle Covering: Washington, Oregon, Idaho and Alaska Tel: 206-553-5615 extension 228 Email: [email protected]@sba.gov www.sba.gov/internationalwww.sba.gov/international Office of International Trade

Export-Import Bank of the United States (Ex-Im Bank) Ex-Im Banks mission is to support jobs in the United States by facilitating the export of U.S. goods and services. The Bank provides competitive export financing and ensures a level playing field for U.S. exports in the global marketplace. A.Export Credit Insurance for U.S. Exporters Export Express Policy Small Business Multibuyer Policy Multibuyer Policy Single Buyer Policy B.Export Working Capital for U.S. Exporters Global Credit Express Direct Loan Program Working Capital Guarantee Program

Export-Import Bank of the United States (Ex-Im Bank) C.Foreign Buyer Financing Short-Term Financial Institution Buyer Credit Policy Medium-Term Insurance Policy Medium-Term Loan Guarantee Long-Term Loan Guarantee Direct Loans Strategic Partners Delegated Authority Lenders Registered Insurance Brokers City / State Partners

Export-Import Bank of the United States (Ex-Im Bank) John Brislin Director, Seattle Regional Office Export-Import Bank of the United States (Ex-Im Bank) 2001 6 th Avenue, Suite 2600 The Westin Building, 26 th Floor Seattle, WA 98121 Tel: (206)-728-2264 Cell: (206)-307-5298 Email: [email protected]@exim.gov www.exim.gov

Secret to Export Success Exporting Takes Teamwork to Succeed Teamwork is the Fuel that allows Common People to attain Uncommon Results

2015 western washington business partnership forum "export assistance“ greater tacoma trade &...

Documents

market slide

mexico slide

export strategy

foreign government procurement

business jobs

target markets

foreign market

neglecting export customers