2015 Western Washington Business - PowerPoint Presentation

1. 2015 Western Washington Business Partnership Forum "Export Assistance“ Greater Tacoma Trade & Convention Center

2. Why Should You Export?95% of the world’s consumers are outside of the U.S.Exporting helps to diversify your client base and take advantage of regional growthIf you are not exporting, it’s highly likely your competitors are selling abroad or will be soonFree trade agreements, the Internet, improved transportation, and Government assistance to aid U.S. companies

3. Economic Impacts of ExportingExports help to diversify the U.S. economyU.S. manufactured exports support 6,000,000 American jobs Trade generates $9,000 more in purchasing power for the average American familyCompanies that export are 8.5% less likely to go out of businessJobs related to exports pay 15% more

4. Market DiversificationExtend product life cyclesCounter unstable economic marketsAbility to maintain production year-roundSeasonal Differences Consistent Sales

5. Exporters Are Small Business98% of U.S. Exporters are SMEs with < 500 employees 75% of U.S. Exporters have< 20 employees7 in 10 new U.S. jobs are created by small businesses More than 1/2 of U.S. Exporterssell to only one foreign market,usually Canada or Mexico

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

7. Common Export MistakesLack of Export Business PlanLow commitment to exportingNeglecting export customers for local customersReliance on inadequate partnershipsFailure to modify products & methods to accommodate foreign regulations and preferences

8. Determine Product PotentialExamine Domestic Market SuccessAssess Unique or Important Product FeaturesInternational Market ResearchWhere are International Hits Coming from on your Website? Target markets?Where are Your Competitors Selling?

9. Develop An Export StrategyBe PRO-ACTIVE & REALISTIC about your ability to expandDefine your resource limitations (money, personnel, and time)Identify a few target marketsEvaluate target markets, customers, distribution channelsEvaluate future profits & opportunities to expand businessDevelop an entry strategy for each market

10. Develop An Export StrategyBe PRO-ACTIVE & REALISTIC about your ability to expandDefine your resource limitations (money, personnel, and time)Identify a few target marketsEvaluate target markets, customers, distribution channelsEvaluate future profits & opportunities to expand businessDevelop an entry strategy for each market

11. From Procurement to Exporting

12. U.S. Government ProcurementSmall & Medium Business are involved with U.S. Government procurement which involves a domestic sale of goods and / or servicesU.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

13. Foreign Government ProcurementThis 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 abroadThis opens the door for U.S. companies to consider selling directly to Foreign Governments for procurement sales of goods and / or services

14. Foreign Government ProcurementGovernment 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 country’s 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

15. Foreign Government ProcurementNorth 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 State’s two largest export markets, Canada and Mexico buy more Made-in-America goods and services than any other countries in the world

16. Canadian Government ProcurementThe Government of Canada reportedly spends about Can$20 billion or approximately US$18.7 billion a year on Goods and ServicesPublic 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.

17. Mexican Government ProcurementThe Mexican government purchases large volumes of raw material, repair parts, finished goods, and hired services, to execute important infrastructure and construction worksIn 2014, Mexico’s 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).

18. Advocacy CenterThe 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 agenciesThe Advocacy CenterU.S. Department of Commerce14th Street & Constitution Avenue, N.W.Room 2840Washington, DC 20230Tel: (202) 482-3896http://export.gov/advocacy/index.asp

19. Advocacy CenterThe 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

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

21. Washington Export Outreach TeamWashington State Department of CommerceWashington State Department of AgricultureWashington SBDC Export Readiness CenterExport Finance Assistance Center of WashingtonWashington SCORE Chapters

22. Washington Export Outreach TeamU.S. Small Business Administration (SBA)Export-Import Bank of the United States (Ex-Im Bank)U.S. Commercial Service / U.S. Department of CommerceUSDA Rural DevelopmentSeattle MBDA Business CenterImpact Washington – (MEPS Partner)

23. 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

24. 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

25. 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 planDetermining appropriate international marketsFinding qualified buyers, agents, and distributorsDetermining pricing and methods of paymentMitigating non-payment risks and financing export transactionsShipping your product WEOT – “Export 101: From Your Door to the World” – Seminar

26. Washington Export Outreach TeamWEOT Business Counseling ResourcesWashington SCORE ChaptersWashington SBDC NetworkSeattle MBDA Business CenterExport Finance Assistance Center of Washington (EFACW)

27. Greater Seattle SCOREBusiness ConsultingProvide Mentoring – In Person – OnlineTraining and Assistance Deliver Workshops – In Class Room – and Online WebinarsExpert Management ModelingProvide templates and tools to manage a business

28. Greater Seattle SCORESCORE - A 50 Year Old U.S Business Mentoring Organization All VolunteerIn 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

29. SCORE Contact InformationAllie ThompsonAdministrative ManagerGreater Seattle SCORE2401 4th Ave., Ste. 450 Seattle, WA 98121Tel: 206-553-7320Email: greaterseattle@scorevolunteer.orghttps://seattle.score.org/

30. Washington Small Business Development Center (SBDC) ServicesOne-on-One, Confidential, No-Cost Business AdvisingFinanceBusiness GrowthCash FlowMarketingBusiness PurchaseSpecialty TrainingFranklin CoveyProfit MasteryNxLeveL Entrepreneurial Training Programs

31. Washington SBDC Export Readiness Center ServicesExport AdvisingOne-on-one, confidential, no cost to companies new-to-export and wishing to expand current exportsExport AssessmentPlan Development & ExecutionForeign Market ResearchTrainingReady-Set-Export workshopsSpecialized trainingService Provider Referrals

32. Washington SBDC Export Readiness Center ServicesSharon SappingtonInternational Trade SpecialistWashington Small Business Development CenterExport Readiness Center13925 Interurban Avenue S.Suite 100Seattle, WA 98168Tel: 206.439.3785Cell: 206.437.2342Email: sharon.sappington@wsbdc.orgwww.wsbdc.org

33. Seattle MBDA Business CenterServices General management consultingLoans and financial packagingStrategic marketingPublic & private sector contractingCertification application assistanceInternational trade development

34. Seattle MBDA Business CenterGlobal Export AssistanceIdentification of export markets Export readiness preparationInternational trade missions and market analysisExport financing packagingOPIC / EXIMExport support apparatus for the Federal government

35. Seattle MBDA Business CenterFelix NgoussouDirectorUnited States Department of CommerceMinority Business Development Agency(MBDA)Seattle MBDA Business Center1437 S. Jackson StreetSeattle, WA 98144Tel: (206) 267-3131Email: FelixN@seattlembdacenter.comwww.seattlembdacenter.com

36. Export Finance Assistance Centerof WashingtonProvides free export finance counseling assistance to small and medium sized businesses.Services How are you getting paid?International payment methodsRisk mitigation techniques and strategiesStructuring a transaction to provide assurance of paymentHow are you financing export sales?Understanding financing optionsReferral to government export finance programsSmall Business AdministrationExport Import Bank of the United States

37. Export Finance Assistance Centerof WashingtonSeminars and Training:Export finance seminars for new and experienced ExportersResources for Financial InstitutionsStrategic Partnerships:Export-Import Bank of the U.S. www.exim.govU.S. Trade & Development Agency www.ustda.govOverseas Private Investment Corporation www.opic.gov

38. Export Finance Assistance Centerof WashingtonDoug KemperPresident and CEO2001 Sixth AvenueSte. 2600Seattle, WA 98121Tel: 206.256.6127Email: doug.kemper@efacw.orgWebpage: www.efacw.org

39. Washington Export Outreach TeamWEOT Export Development ResourcesU.S. Commercial ServicesWashington State Department of CommerceWashington State Department of Agriculture

40. U.S. Commercial ServiceU.S. Department of CommerceU.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 worldwideCommercial Service Export Promotion ProgramsThe expertise, skills, and experience to help American companies enter and succeed in the Foreign Markets.Access Export ReadinessIdentify Key MarketsDetermine Sales Potential Implement Export Plan

41. U.S. Commercial ServiceU.S. Department of CommerceServicesTrade CounselingMarket IntelligenceBusiness MatchmakingDue DiligenceTrade EventsIn-Country Promotion of Your Products or ServicesCommercial Diplomacy

42. U.S. Commercial ServiceU.S. Department of CommerceDiane MooneyDirectorU.S. Department of CommerceU.S. Export Assistance Center2001 6th Avenue, Suite 2610Seattle, Washington 98121Tel: 206-553-5615 x 225Email: Diane.mooney@trade.govwww.export.gov

43. Washington State Department of CommerceExport Assistance servicesConnect Washington State Small Businesses with new international customersResearch and Develop New Export MarketsLocate business strategic partners Washington State exportersExport finance risk mitigation and advocacy to remove roadblocksOrganize Trade Missions, Washington State Pavilions at key international trade showsFinancial assistance for small businesses to grow exportsGenerate investment leads at key international trade shows

44. Washington State Department of CommerceAssist small businesses to increase export sales in targeted industriesExpand the number of small businesses that are exportingAssist small businesses to increase export sales in targeted industriesOur Global Reach: Network of Foreign RepresentationForeign Representatives under contractAsia - China, IndiaEurope - United Kingdom, France, GermanyForeign Representatives now on stand by basisJapan, Taiwan, Korea, Mexico

45. Washington State Department of CommerceMark CalhoonSenior Managing DirectorBusiness Services DivisionWashington State Department of Commerce2001 6th Avenue, Suite 2600Seattle, WA 98121Tel: 206-256-6137Email: mark.calhoon@commerce.wa.govwww.exportwashington.com

46. Washington StateDepartment of AgricultureExport Development Company Recruitment, Export Training, Resource Referral, and Market IdentificationExport Assistance Buyer/Seller Matchmaking, Market Intelligence, Export Documentation, 10-15 activities annually federally fundedMarket Access Government Trade Missions, Director-Led Specialty Crop Missions, Trade Barrier Resolution, and Promotions

47. Washington StateDepartment of AgricultureOverseas 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

48. Washington StateDepartment of AgricultureJulie JohnsonExport Development LeadWA State Department of AgricultureInternational Marketing Program1111 Washington St. SEOlympia, WA 98504-2560Tel: 360-902-1940Email: jjohnson@agr.wa.govagr.wa.gov

49. Washington Export Outreach TeamWEOT Export Finance ResourcesU.S. Department of Agriculture – Rural DevelopmentU.S. Small Business Administration (SBA) Office of International Trade (OIT)Export-Import Bank of the United States (Ex-Im Bank)

50. USDA Rural Development Products & ServicesPRODUCTSGuaranteed Business & Industry ProgramLoans for rural businesses of all size up to $25 millionBusinesses do not have to be agriculture relatedAcquisition or Expansion, Real Estate, Machinery & Equipment, Working CapitalValue-Added Producer Grant ProgramFor agricultural producers in rural or urban areas of the stateFor feasibility studies, business and marketing plans or working capitalOften used to enter into a new foreign market or expand an existing oneRural Energy for America ProgramGuaranteed loans and/or grants for rural, small businesses & agricultural producers For energy efficiency improvements or renewable energy systems

51. USDA Rural Development Products & ServicesPRODUCTS (Cont.)Intermediary Relending ProgramRevolving Loan Fund capitalized by USDA to assist businesses unable to obtain credit from commercial banks with loans up to $250,000Microentrepreneur Assistance ProgramRevolving 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. SERVICESSupport for cooperatives with research, technical assistance and fundingStaff available locally to provide technical assistanceLocal approval authority up to $10 million

52. USDA Rural DevelopmentWashington StateTuana L. JonesBusiness & Cooperative Programs DirectorUSDA Rural DevelopmentBusiness & Cooperative Programs 1835 Black Lake Blvd. SW, Suite BOlympia, WA 98512Tel: 360-704-7707Email: tuana.jones@wa.usda.govWebsite: http://www.rurdev.usda.gov/Home.html

53. U.S. Small Business AdministrationInternational Trade Programs for U.S. ExportersSBA does not make direct loans. It provides a higher guarantee to Lenders who make these loans to U.S. exportersExport Working Capital ProgramUp to $5 Million; 90% guaranty for short term loans and lines of credit for export purposes.Export ExpressUp 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 LoanUp 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.

54. U.S. Small Business AdministrationInternational Trade Programs for U.S. ExportersFour Categories Of Exporting:Manufactured goods & commodities (& wholesalers)Service Providers – US’s #1 export! Indirect Exports – selling a component that goes into an export International Tourism & Education – bringing the foreign buyer here along with their money ALL of these qualify for SBA 90% export loan guarantees!

55. U.S. Small Business AdministrationInternational Trade Programs for U.S. ExportersSandra EdwardsRegional Export Finance Manager, SBA, SeattleCovering: Washington, Oregon, Idaho and AlaskaTel: 206-553-5615 extension 228Email: Sandra.Edwards@sba.govwww.sba.gov/international Office of International Trade

56. Export-Import Bankof the United States (Ex-Im Bank)Ex-Im Bank’s 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.Export Credit Insurance for U.S. ExportersExport Express PolicySmall Business Multibuyer PolicyMultibuyer PolicySingle Buyer Policy Export Working Capital for U.S. ExportersGlobal Credit Express – Direct Loan ProgramWorking Capital Guarantee Program

57. Export-Import Bankof the United States (Ex-Im Bank)Foreign Buyer FinancingShort-Term – Financial Institution Buyer Credit Policy Medium-Term Insurance PolicyMedium-Term Loan GuaranteeLong-Term Loan GuaranteeDirect Loans Strategic PartnersDelegated Authority LendersRegistered Insurance BrokersCity / State Partners

58. Export-Import Bankof the United States (Ex-Im Bank)John BrislinDirector, Seattle Regional OfficeExport-Import Bank of the United States (Ex-Im Bank)2001 6th Avenue, Suite 2600The Westin Building, 26th FloorSeattle, WA 98121Tel: (206)-728-2264Cell: (206)-307-5298Email: john.brislin@exim.govwww.exim.gov

59. Secret to Export SuccessExporting Takes Teamwork to Succeed Teamwork is the Fuel that allows Common People to attain Uncommon Results