REGIONAL EXPORT STRATEGIES IN

THE EASTERN UPPER PENINSULA

AND EAST MICHIGAN

Jeff Hagan, Eastern Upper Peninsula Regional Planning

and Development Commission

Rex L. LaMore, MSU Center for Community and

Economic Development

Jane Fitzpatrick, East Michigan Council of

Governments

EDA Chicago Annual Meeting, September 30, 2014

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REGIONAL EXPORT STRATEGIES PROJECT (2011-2013)

U.S. EDA-funded project

Collaborative initiative to develop regional export strategies for the Eastern Upper Peninsula (EUP) and East Michigan to achieve greater regional economic prosperity.

Eastern Upper Peninsula Regional Planning and Development Commission (EUPRPDC)

Lake Superior State University (LSSU)

Michigan State University Center for Community and Economic Development (MSU CCED)

East Michigan Council of Governments (EMCOG)

St. Clair County Economic Development Alliance (SCCEDA)

Saginaw Valley State University (SVSU)2

Regional Export Strategies Objectives:

Increase knowledge of export and collaboration opportunities

Identify assets

Align resources

Prioritize infrastructure investments

Identify/reduce barriers

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Transforming the RegionalEconomic Development Planning Process

GKE-orientedvision and goals

Strategic GKEaction agenda

Global Knowledge Economy-based assessment

process

GKE-relevantinvestment priorities

Incorporatechanges into local

Economic development

strategies

ComprehensiveEconomicDevelopmentStrategies

FROM:

Comprehensive

Innovative/Intelligent

Development

Strategies

TO:

MSU CCED BI-NATIONAL REGIONAL EXPORT

INFRASTRUCTURE ASSESSMENT

Bi-National Regional Export Infrastructure

Assessment with 6 categories created for this project:

Physical Assets

Institutional Assets

Knowledge Assets

Capital Access and Assistance

Networking Capacity

Cross-Cultural Knowledge Capacity

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REGIONAL EXPORT INFRASTRUCTURE

ASSESSMENT

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REGIONAL EXPORT INFRASTRUCTURE

ASSESSMENT

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REGIONAL EXPORT INFRASTRUCTURE

ASSESSMENT

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REGIONAL EXPORT INFRASTRUCTURE

ASSESSMENT

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REGIONAL EXPORT INFRASTRUCTURE

ASSESSMENT

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REGIONAL EXPORT INFRASTRUCTURE

ASSESSMENT

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Cross-cultural Knowledge Capacity:

Assess the export readiness of enterprises and the

community to understand socio-cultural differences and

customs.

A greater understanding of socio-cultural differences

enhance trade relationships.

METHODS

Export Resource and Expert Network (EREN) Michigan and Canadian experts and researchers

representing a diverse range of areas including:

State, regional, and local economic development planning and related policy making;

Export market development;

Export financing;

State Agencies:

MEDC STEP

MDARD

MDOT

International logistics management;

Transportation/freight infrastructure;

International business development.

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Develop/conduct EUP and EMCOG SME online exporting survey

Conduct Export Infrastructure Assessment for each region

Develop EUP product/export marketing website

Develop and publish Exporting Resources Guide for Small Businesses in the Eastern UP and East Michigan

Plan and conduct Twin Saults Binational Regional Collaboration Conference(s)

Work continues in specific sector analysis: Joint Marketing, Green Chem., Agriculture

METHODS (CONT’D)

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EXPORT MARKET GROWTH POTENTIAL

Local and regional growth in global economy

directly tied to exporting.

Export growth potential at national level

<1% of U.S. companies currently export.

58% of exporters only operate in 1 country.

Must take strategic steps to capture this

huge potential.14

TOP 5 U.S. EXPORT MARKETS

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Country Export Value, Billions,

2012

% Change from 2011

Canada $ 291.8 4%

Mexico $ 216.3 9%

China $ 110.6 6%

Japan $ 70.0 7%

UK $ 54.8 -2%

Source: TradeStats Express, U.S. International Trade Administration

STATE GDP AND EXPORTING DATA

Michigan GDP was $368.37 billion in 2010 (US

BEA).

Michigan Exports totaled $57.6 billion in 2010

(Brookings Institute, 2012).

15% of state GDP.

Ranked 9th in the U.S. for export value.

392,900 export-supported jobs in Michigan, 2010.

Ranked 7th in the U.S. for export-supported jobs.

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EUP LOGISTICS ASSETS

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EUP EXPORTING AND LOGISTICS ASSESSMENT:

ASSETS

Proximity to:

•2 airports

•Chippewa County International Airport (MI)

•Sault Ste. Marie Airport (ON)

• 4 U.S. marine ports

•Port Inland

•Mackinaw Island

•St. Ignace

•Sault Ste. Marie

• 3 Canadian marine ports

•International crossing with truck and train capacity

•Rail and interstate highway systems

•Soo Locks - Connects Lake Superior to Lower Great Lakes

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EUP EXPORTING AND LOGISTICS ASSESSMENT:

NEEDS

Expanded access to Class I rail.

Double-stack rail capacity link to Ontario

Expanded rail access to marine ports

Chippewa County International Airport expansion potential

7,200 ft of runway currently in use

12,000 ft available

Partnerships to develop and implement logistics hub strategies

Facilitate communication between stakeholders and policy makers

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EUP EXPORTS WEBSITE

Collaborative effort of LSSU, EUPRPDC, and Sault Ste. Marie EDC

Sellers request listing products

No charge

Products searchable by keyword, industry, or material type (i.e., wood, metal, plastic, or composites)

Buyers contact sellers and request further information about product(s)

~4,000 unique visits over a 4-6 week period

Average visit time: 36 seconds

76% of visits from mobile device whose visits averaging 33 seconds

4 customer leads generated

2 successful customer transactions

Site: http://www.lssu.edu/eupexports/home.php

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EASTERN UPPER PENINSULA EXPORTS

Totaled $98.2 million in 2010

Latest county-specific

federal data available

is 2010

Regional GDP est.

$1.96 billion

Exports 5% of

est. regional GDP

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EUP Exports, 2010

Transportation

Equipment

Travel and Tourism

Agriculture

Business Services

Medical Equipment,

Sporting GoodsRoyalties

Financial Services

Other

BINATIONAL REGIONAL COLLABORATION

IN THE TWIN SAULTS

Binational management of International Bridge, October, 1962.

“Two Nations, One City” Sister City agreement, August, 2012

Memorandum of Understanding, July, 2014

Establishes Joint International Relations and Economic Growth (JIREG) Committee

Reciprocal tuition agreement between Lake Superior State University (MI) and Algoma University (ON).

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BINATIONAL REGIONAL COLLABORATION(CONT’D)

Binational Conferences 2012

Keynote by Roy Norton – Canadian Counsel General in Detroit

Panels included:

Alternative energy

Multi-modal logistics

2013 Welcome Remarks by Mayors:

Anthony Bosbous, Sault Ste. Marie, MI

Debbie Amaroso, Sault Ste. Marie, ON

Panels included:

Making the Most of Unique Twin Saults Tourism Opportunities

Current State Twin Saults Border Crossing

Strategic Initiatives in a Binational Transportation Corridor

The Value of Trails and Natural Resources in the UP and Ontario

2014 Third conference planned for October 17, 2014. 26

EMCOG REGION GDP AND EXPORTING

DATA

GDP was $25.9 billion in 2010.

Exports from EMCOG region totaled $4.14 billion.

16% of region GDP.

Total exports grew 26.8% overall 2003-2010, despite

Great Recession of 2008-2009.

Services – 33.1% growth from 2003-2010.

Goods – 25.5% growth from 2003-2010.

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EMCOG REGION EXPORTING DATA

Of $4.14 billion in exports: ¼ of export value: Transportation equipment.

¼: Chemicals, machinery, and primary metal combined.

½: Contributed by other sectors. Agriculture, Computers and Electronics, Electrical Equipment,

Fabricated Metal Products, Food.

Business Services, Financial Services, Freight and Port Services, Royalties, Travel and Tourism.

Brookings data sources: Moody’s Analytics, BEA, BLS, IRS, NAFSA, and U.S. Census Bureau as reported by the USITC.

Brookings Export Database available online at http://www.brookings.edu/ExportNation

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REGIONAL EXPORT INFRASTRUCTURE

ASSESSMENT - RAIL

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REGIONAL EXPORT INFRASTRUCTURE

ASSESSMENT – HIGHWAYS, AIRPORTS, PORTS

Thank you!

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