Utah’s rising exports and the need for more FTAs

Tuesday, May 15th, 2012

The constant bright spot in a tough economy, Utah exports continued to grow through the first part of 2012.

Utah’s first quarter exports (Jan-March 2012) totaled $5.17 billion—a 22 percent increase from the first quarter of 2011, which saw $4.25 billion in exports.

World Trade Center Utah President and CEO Lew Cramer says this growth is heading forward at a “blistering pace,” setting Utah up to have over $20 billion in total exports for the whole year.

International exports are a big component in the Utah Jobs Agenda, a 10-point plan to create 150,000 jobs in five years. And those billions of dollars in exports translate into more support for both new and existing Utah jobs.

Another bit of good news today is that a Free Trade Agreement between the U.S. and Colombia has now come to fruition. This agreement is expected to increase U.S. GDP by nearly $2.5 billion and U.S. merchandise exports by $1.1 billion.

Free Enterprise from the U.S. Chamber of Commerce notes that “more than 95 percent of the world’s consumers live outside our borders and their demand for American goods and services is growing every day.”

This is why it’s important for all businesses to look into exports and how they can optimize their efforts outside the boundaries of the U.S. You may not think your business has anything worth exporting, but odds are, it does.

The issue that remains is that exports need a monumental kick in order for the U.S. to really see growth and more jobs from it. It’s not just large businesses that can export—any business can become involved, even small firms. If your business needs help entering profitable global markets, contact the World Trade Center Utah.

The world’s travelers bring jobs, growth to American economy

Wednesday, May 9th, 2012

By Thomas J. Donohue, President and CEO, U.S. Chamber of Commerce

May is World Trade Month. As we highlight the vast potential for jobs and growth through global commerce, we must not overlook one of America’s most valuable exports: foreign visitors to the United States.

Let me explain: When foreign visitors spend their money here, it’s counted as an export. What’s more, America’s trade relationships and economic prosperity depend on the ability of international businesspeople to travel to the United States to visit our manufacturing operations, inspect the products and services they are purchasing, and negotiate contracts.

The travel and tourism industry currently employs 7.4 million Americans and generates more than $700 billion in revenue. But those numbers could be a lot higher.

We’re currently losing travel-related jobs and squandering revenue because we’re not laying out the welcome mat for business travelers and tourists. Over the past 10 years, visitors have too often been met with travel hassles that have ultimately driven down the U.S. share of the international travel market.

Consider what’s at stake: If we could restore the U.S. share of the global overseas travel market to its 2000 level, we would create 1.3 million new jobs and generate $860 billion in economic activity—without costing taxpayers a dime.

So how do we promote the United States as a premier destination and draw business and leisure travelers to our shores? We need to pave the way for more of the world’s visitors to come to America hassle free without jeopardizing national security. And we need to eliminate bureaucratic barriers to inbound travel, such as visa processing delays and endless wait times at customs.

The U.S. Chamber is pushing for the Jobs Originating from Launching Travel (JOLT) Act, a new bill that could dramatically increase international travel to the United States. The legislation would expand the Visa Waiver Program, offer lower application fees during off-peak seasons, allow travelers to expedite visa applications for a fee, and encourage timely and predictable application reviews.

In testimony before Congress in March, I pledged the strong support of the business community for the JOLT Act and highlighted the economic imperative of adopting these reforms. Our lawmakers need to move forward with this commonsense legislation.

Let’s make sure that when tourists are ready to travel and businesspeople are ready to make deals, they come to the greatest travel destination of them all—the United States of America. Let’s take the buying power of the vast majority of the world’s customers and put it to work in our own economy.

Trade mission to Vietnam part of Utah export strategy

Wednesday, April 11th, 2012

International business is booming in Utah. Last year, our merchandise exports set a all-time record at nearly $19 billion. Utah has benefited from an aggressive strategy to help businesses enter profitable global markets, and by reaching out to potential trade partners with delegation visits.

Lew Cramer, president and CEO of World Trade Center Utah recently returned from a trade mission to Vietnam. He sat down to discuss Utah exports, how we can increase them and Utah’s growing connection to Asia.

Metro areas driving national export growth

Wednesday, March 28th, 2012

The Utah Jobs Agenda is a 10-point, private sector plan to create 150,000 jobs over five years. One of the key components of the Agenda is to grow is to double the value of international merchandise exports during that time period.

Utah has been a leader in export growth—increasing exports by 142 percent in the past five years, reaching our all-time high of over $18 billion last year.

Utah exports create high paying Utah jobs.

The Brookings Institute recently found exports have played a major role in driving the U.S. economy forward in the past two years, contributing to more than 46 percent of the nation’s growth in 2010. In fact, total exports that year almost reached pre-recession levels.

Export Nation highlights that metropolitan areas contributed to 84 percent of the nation’s exports while the top 100 metros accounted for 65 percent of U.S. goods and services sold abroad. All large metro areas also experienced positive export growth rates between 2009 and 2010. Exporting is now being looked at as mostly a metropolitan enterprise.

Brookings says exports supported 600,000 new export-related jobs and 10.7 million jobs altogether in 2010. Of those, large metropolitan exports supported over 67 percent of export-production jobs even beyond the metro boundaries. New York was the biggest metro exporter to support the largest amount of jobs (329,000) with Los Angeles following close behind.

Of the largest 100 metro areas, 11 achieved export growth sufficient enough to meet the nation’s goal of doubling exports. It may seem a small number, but it’s double the number of metros that had this kind of growth rate between 2003 and 2008.

Utah was among states where metropolitan area exports account for over 60 percent of the export total for the state. Others include California, Washington, Oregon, Texas, New York, Florida, Pennsylvania along with several others mostly along the eastern seaboard.

Utah has led the U.S. in merchandise export growth for the past three years with 39.5 percent growth, jumping from $13.8 billion in 2010 to $18.93 billion in 2011.

U.S. exports to developing countries are increasing and metropolitan areas that produce what those emerging markets need are in a good position to take advantage of the growth opportunities. World Bank works with sponsors nationwide to help get those products to development projects in those nations—thus helping the U.S. export numbers. As a Private Sector Liaison Officer, the Chamber helps Utah businesses procure contracts for projects funded by the World Bank.

Selling products to customers outside the U.S. can bring a big boost to businesses of all sizes.

Utah leads in exports, World Bank helping

Tuesday, March 6th, 2012

Yet another hint that Utah’s economy is improving—the Beehive State is once again a leader in merchandise export growth in the U.S. with 39.5 percent growth from 2010 to 2011. This is the third year in a row that Utah has topped the list when it comes to growth in exports.

In 2010, President Barack Obama announced a National Export initiative to double exports in five years by helping farmers and small businesses increase and reform their exports. The anticipated impact of this initiative is the creation and support of two million jobs nationwide.

The Salt Lake Chamber outlined a 10-point plan called the Utah Jobs Agenda in January of 2011 emphasizing the importance of exports among other things like education.

Now Utah is leading the U.S. in merchandise export growth and is nearly halfway to Pres. Obama’s goal in only two years. In 2010, Utah had $13.8 billion in exports and that rose to an impressive $18.93 billion in 2011. Over the past five years alone, there’s been an overall 142.3 percent growth from Utah merchandise exports. Considering the economic fall America experienced during that time, this growth is rather remarkable.

World Trade Center Executive Vice President and Chief of Operations Elizabeth Goryunova says Utah’s export growth increase can be attributed to “a rise in awareness to what we are trying to achieve,” which is to increase the number of companies that aren’t exporting to establish international connections to start exporting goods. Goryunova says another goal is to “expand the market of the one percent of companies that do export.”

The World Bank issues grants and loans to developing countries for significant projects—coordinating with their governments to decide the best way to pursue them. The United States is a big shareholder in the World Bank and is a big contributor alongside other giants like Japan.

When the World Bank and the individual government of a country seeking assistance decide on a course of action, the World Bank calls on resources and companies of sponsors to contribute to the cause—including those in the U.S. This is where our exports get a big boost.

While Utah’s earnings from exports don’t compare to the hundreds of billions of dollars a seaside state does, Utah is experiencing export growth, while those ports have seen declines in revenue.

A big contributor to Utah’s success is the rising price of primary metals, like gold and copper. Because of this, our export total increases even though we may not necessarily be exporting more goods. Primary metals attributed to 64 percent of Utah’s exports in 2011—an increase of about 15 percent from 2010.

So what does this export growth mean? More jobs. The rise in merchandise exports increase production in Utah, creating more jobs that start the ripple effect that boosts the local economy. For every $90,000 in exports, one job is created. For example, with the $5 billion dollar boost in exports, Utah created 55,000 jobs more than it did in 2010.

By moving Utah businesses into profitable global markets, and by helping them secure World Bank funded projects, Utah exports can continue to increase at record levels. Chamber members interested in learning more about World Bank funded projects can contact the Chamber for more information.

A true international award

Tuesday, February 28th, 2012

International business is booming in Utah. This morning, Chamber Communication Director Marty Carpenter has a column on KSL.com looking at the impact of international exports on our local economy.

For the third consecutive year, Utah leads the entire U.S. in merchandise export growth over a five-year rolling period.

With Utah exports reaching an all-time high of over $18 billion, it is quite frequent that the Chamber hosts world leaders. Just a few days ago, the director general of Taiwan paid a visit to Chamber President Lane Beattie and World Trade Center President Lew Cramer. Both were presented with a gift–an extremely personalized gift.

You can see Beattie and his official bobble-head doll above. Cramer and his are below.

“This is better than an Oscar,” said Beattie.

Doing what does not come naturally

Wednesday, October 12th, 2011

Editor’s note: this post is taken from prepared remarks delivered by Salt Lake Chamber President and CEO Lane Beattie at the Utah Foundation’s Improving Utah’s Quality of Life breakfast.

Many of you may be familiar with the great Irving Berlin musical “Annie Get Your Gun.”

There is a number in the production in which Annie, a gun-tottin’ sharp shooter, explains her simple ways to hotel owner Frank Wilson.

The number is called, “Doin’ what comes natur’lly.”

My uncle out in Texas can’t even write his name.

He signs his checks with “x’s”

But they cash them just the same.

If you saw my pa and ma,

You’d know they had no learning,

Still they’ve raised a family

Doin’ what comes naturally

Despite Annie’s argument that things are best when you do “what comes naturally,” we know that isn’t always the case.

Some challenges require the courage to do what does not come naturally.

Overcoming challenges requires extraordinary effort.

This is particularly true in the face of economic challenges we face today.

We must summon the courage to overcome the natural tendency to turn inward, to protect what we have and to hunker down.

Getting our economy back on track will require hard work, trust and vision.

This morning more than 100,000 Utahns woke up, ready and able to go to work, but they had no job to go to.

That is unacceptable.

The good news is the Utah economy is adding jobs, and we are attracting the jobs of the future.

Twitter is bringing jobs to Utah; FL Smidth (Schmidt) is adding 150 jobs to its newly completed building in Midvale and Goode Ski Technologies is moving its entire production line form China to Ogden.

We are now home to the second largest Goldman Sachs operation in the Americas.

We have strengthened our homegrown businesses like Overstock.com, Fusion i-o and Café Rio.

Intermountain Healthcare is adding 300 jobs as it establishes the Homer Warner Center for Informatics Research.

Harmons is adding 500 jobs both as a great example of transit oriented development having just opened a new store next to the FrontRunner station in Farmington, and also as a key part of the Downtown Rising movement as they have a new store set to open in the near future in downtown Salt Lake City.

During the Great Recession, we have out-performed the nation. In fact, during the month of August the Utah economy created more jobs than the entire U.S. economy! (Let’s be honest…that is scarier than it is comforting, but true nonetheless.)

Today, the Utah economy is poised to lead the nation.

We have the workforce, infrastructure and pro-business policies to make it happen.

Back in January of this year… the Salt Lake Chamber introduced a plan to put Utahns back to work. We call it the Utah Jobs Agenda.

The Utah Jobs Agenda is a private sector plan to create 150,000 jobs over the next five years.

It consists of economic fundamentals, when combined with purposeful and effective business leadership, will help create 150,000 Utah jobs over the next five years.

We allowed for a bit of a ramp-up on this agenda so we set the first year goal at 18,000 jobs. So far we are on pace.

The Utah Jobs Agenda covers ten points:

-Education

-Transportation

-International Business

-Energy

-Business Costs

-Corporate Recruitment

-Immigration

-Tax Policy

-Air Quality

-Rural Development

I’d like to focus on just three of these today—specifically the three elements wherein our natural reaction is to turn inward when we need to do just the opposite to produce the results we are after.

Free Trade Agreements

The first is international business, specifically free trade.

When economic storms arrive, opponents of free trade are quick to label our export policies as part of the problem. They call for isolationist policies.

International trade keeps prices low, increases our competitively and creates jobs. If putting up barriers and protecting what you have worked, North Korea would be the most prosperous nation on the planet. It is not.

Just last week, the President sent free trade agreements to Congress for approval. If things go as expected we’ll have new FTAs with South Korea, Panama and Columbia. These agreements will create and further support hundreds of thousands of jobs across the country.

Our natural instinct is to turn inward… our best path forward requires us to turn outward.

Immigration

The second point I would like to discuss is immigration.

This is another issue where fear and uncertainty give rise to extreme viewpoints. One sees 100,000 Utahns are out of work and hears the estimate that there are 110,000 undocumented workers in our state. They put two and two together and come up with 22. It’s simple but it is the wrong conclusion.

There is broad agreement among mainstream economists that market-driven immigration increases productivity, boosts real wages and grows the economy.

Immigrant labor not only complements native labor, it spurs innovation and entrepreneurship, two hallmarks of economic progress in the 21st Century.

Immigrant labor, ingenuity and purchasing power are critical components of the Utah economy. Utah immigrants – both documented and undocumented – comprise a large and vital part of the Utah economy as business owners, workers, consumers and taxpayers.

Our immigration system in this country is broken. The federal government has ignored the problem for far too long. Last year, the Chamber joined a group of organizations in signing The Utah Compact. This simple, succinct document changed the course and tone of the immigration discussion in our state.

Ultimately, we passed and signed into law the Utah Guest Worker program, set to go into effect in 2013. We now have our back-up plan in place.

As stated in the first principle of The Utah Compact, immigration is a federal issue.

The Chamber has and will continue to urge our federal delegation to push for comprehensive immigration reform at the federal level.

We need more high-skilled workers and lower skilled workers. Those that come to our nation and are educated in our schools should be encouraged to stay here and create jobs.

Our instincts may tell us to protect the jobs we have and to look at others with suspicion.

Doing what comes naturally is not a viable option.

We need comprehensive reform that helps businesses get the best, the smartest, the most determined and the hardest working to help drive the American—and the Utah—economy.

Education

The final policy I would like to discuss is education.

Businesses in our state—large and small—all rely on one key ingredient.

We’ve all heard the saying that a chain is only as strong as its weakest link.

Well, a business is only as strong as its employees.

More than tax structure, more than overhead costs, more than supply chains… it’s the people that do the work, that make the decisions, that bring ideas to life… People make businesses successful.

Businesses cannot thrive without a well-educated workforce.

The time has come for business to be more involved in education in our state.

If you think about it… business is education’s largest customer.

Today’s students are tomorrow’s employees. Before you know it they will be managers, then directors, the executives.

We have worked hard to lay the foundation of a thriving economy.

We need to ensure that those who will inherit the fruits of today’s labor are prepared to advance our efforts.

The Salt Lake Chamber is committed to working with chambers of commerce throughout the state, and organizations including:

-Citizens for Educational Excellence
-Economic Development Corporation of Utah
-Friends for Utah Higher Education
-Governor’s Office of Economic Development
-Junior Achievement of Utah
-United Way Salt Lake Chamber… and
-Utah Technology Council

We’ve come together to create Prosperity 2020.

Our vision is that Utah’s well-educated and trained workforce will propel us to enduring prosperity, improved quality of life and the strongest economy in the nation.

A business led movement will naturally embrace business principles. We will set goals and work toward achieving them. And we will measure our progress.

To achieve our vision we have set some initial goals:

-We want 90 percent of 3rd graders reading at grade level.
-We want 90 percent of elementary students to achieve math and reading proficiency.
-And two-thirds of Utahns should achieve postsecondary training by 2020.

To be a prosperous community we must be a well-educated community. All our other efforts are driven by the steady flow of educated workers.

The temptation with education is not so much to turn inward but to kick the can down the road.

Difficult economic times will send weaker men and women running in different directions. The challenges will cause some to think only of themselves and protecting what they have.

Our challenge is to work together, to see the vision of what Utah can be, to chart our course and to move steadily toward it.

I truly believe there is no place like this on earth. Our sense of community will propel us through the challenging times and we will lead the nation on the road to prosperity.

Thank you very much.

Chamber formalizes relationship with World Bank to help Utah business grow

Wednesday, October 5th, 2011

The Salt Lake Chamber formalized a relationship with the World Bank to act as the state’s Private Sector Liaison Officer (PSLO).  The relationship will help Utah businesses and businesses throughout the Intermountain West gain access to projects funded by the World Bank in developing countries.

“There are so many projects across the globe that can benefit from Utah businesses and Utah businesses should be eager to benefit from the projects,” said Lane Beattie, president and CEO of the Salt Lake Chamber. “Our mission is to strengthen the Utah economy and this relationship with the World Bank has the potential to significantly help our members.”

The World Bank provides loans to developing countries for large-scale projects designed to improve living standards and reduce poverty. These projects – building health clinics or schools, investing in roads so farmers can get goods to market, or improving telecommunications or sanitation, for example – frequently involve International Competitive Bidding under guidelines established by the World Bank. These guidelines help level the playing field for U.S. companies. The PSLO will guide Utah companies through the procurement process, creating better understanding and more opportunities to bid on these projects.

“There are billions of dollars worth of projects financed by the World Bank,” said the Chamber’s director of international relations, Elizabeth Goryunova (pictured, right), who will serve as the private sector liaison officer to the World Bank. “We’re here to help Utah businesses recognize opportunity and to take advantage of some of these opportunities.”

Last year, the World Bank provided $46.9 billion for 303 projects in developing countries worldwide. Included in that were $1.6 billion of contracts awarded to consultants and $2.9 billion for goods.

Businesses in Utah and throughout the Intermountain West interested in opportunities available through World Bank funded projects can contact the Chamber directly to begin the process. The Chamber will hold its first procurement seminar Dec. 2, 2011 at 8:00 a.m. Registration will open later this week at www.slchamber.com.

“Businesses shouldn’t simply assume this is for someone else,” said Beattie. “No matter what size business you run, there are opportunities that can help you grow and strengthen your bottom line. It’s not a simple process but we’re prepared to help.”

The Salt Lake Chamber and its strategic partner the World Trade Center Utah are committed to strengthening Utah’s economy and helping business enter profitable global markets. International business is a growing in Utah; merchandise exports have doubled over the past five years reaching $13.6 billion last year. Products made in Utah and shipped to benefit World Bank projects add to that total.

About the World Bank Group
The World Bank is a vital source of financial and technical assistance to developing countries around the world. Their mission is to help people help themselves and their environment by providing resources, sharing knowledge, building capacity and forging partnerships in the public and private sectors, with the goals of promoting economic growth and overcoming poverty.  Bank commitments to developing countries totaled over $57 billion in the last fiscal year.  Projects supported by these loans/credits are a source of business opportunities for local and international organizations.

Companies, academic institutions, non-governmental organizations and individuals from member countries of the World Bank are eligible to compete for these business opportunities. Within any given project, there can be literally hundreds of business opportunities varying in size from as little as a few thousand dollars to as large as tens of millions of dollars.

The importance of trade

Wednesday, September 21st, 2011

A Council on Foreign Relations independent task force report released this week says trade policy has stalled because Americans don’t believe it is a benefit. More than half of Americans believe trade has hurt the U.S. And fewer than 20 percent believe it has helped.

We sat down with Lew Cramer, president and CEO of the World Trade Center Utah, to discuss the importance of free trade for the nation’s economy, the current state of pending free trade agreements with South Korea, Panama and Columbia, and why opponents of free trade are wrong.

World Trade Center Utah Pres. discusses U.S.-China Trade Conference

Tuesday, July 19th, 2011

US-China Trade Conference from Salt Lake Chamber on Vimeo.

World Trade Center Utah President and CEO Lew Cramer sits down to discuss last week’s U.S.-China Trade Conference, which coincided with the National Governors Association’s Annual Meeting.