global competitiveness

AND LOCAL BUSINESS DEVELOPMENT

By Ashley Zuelke and Pat Kirwan

a t the SelectUSA Summit in June

2016, President Obama confirmed
that local business is global. “In to-
day’s world,” he said, “when business doesn’t
stop at borders, and when trade is how we
shape economic change to our advantage… the
term ‘global economy’ is redundant.” Global
supply chains are present when we go to the su-
permarket and use our smartphones. Businesses
with a web presence have a storefront open to
the world.
With more than 95 percent of the world’s con-
sumers and 80 percent of global purchasing power
outside the United States, communities must po-
sition themselves to compete on a global scale to After opening the U.S. National Pavilion on the first day of Hannover Messe, the world’s largest
drive future economic growth and jobs. For many trade fair for industrial technology, President Barack Obama, German Chancellor Angela Merkel,
economic developers, helping local businesses and U.S. Commerce Secretary Penny Pritzker took a tour of the trade show floor. Here at the Ohio
thrive in the 21st century economy is no longer an booth, they examine a prosthetic hand produced by a 3D printer. The show is one of several during
which the U.S. government certifies and provides services to help U.S. businesses exhibit their
optional tactic. Economic Development Organiza-
products and expertise for customers worldwide. At Hannover Messe, U.S. economic develop-
tions (EDOs) from Norfolk, Virginia, to San Diego, ment organizations also had the opportunity to showcase their regions for potential foreign direct
California, have made supporting international investment.
trade and U.S. exports a key pillar of long-term
community development strategies. EXPORTS AND ECONOMIC DEVELOPMENT
Ashley Zuelke is the
In the face of a rapidly changing economic en- Local Business Retention and Expansion former associate director
vironment, regional leaders are making concrete and senior advisor for
When local businesses export, they diversify
plans to identify their assets and capitalize on in- export policy, promotion
their customer base and tap new revenue streams. and strategy at the U.S.
ternational trade potential. As The Atlantic reported
U.S. Census Bureau survey data show that export- Department of Com-
earlier this year, local leaders and mayors like West
ing firms are more likely to weather economic merce’s International
Sacramento Mayor Christopher Cabaldon recog-
downturns, stay in business, contribute to innova- Trade Administration.
nize that “the notion that you can just freeze your
tion, bolster against job losses and support pros- Pat Kirwan is director
metropolitan economy in place right now, or the of the Trade Promotion
perity. It makes sense that economic developers,
way it used to be, is just a fiction we [mayors] can’t Coordinating Committee
who are at the helm of big thinking, goal-setting,
live with.” He and others went on to say that even (TPCC) Secretariat, which
and strategy implementation for their regions,
smaller cities now see it important to find their serves as a platform for
would see a benefit in a long-term plan to help a
global “niche” and identify tools to take advantage U.S. government agencies
local popcorn maker, brewer, architect, all-terrain
of world-scale opportunities. to develop and execute
vehicle manufacturer, and more sell to the growing strategies to increase
base of consumers worldwide. U.S. exports, help U.S.
businesses and support
HOW COMMUNITIES ARE INTEGRATING TRADE AND EXPORTS INTO U.S. jobs. Since 2010,
they have worked with
LONG-TERM STRATEGIES communities nationwide
Economic development organizations across the country, like GREATER MSP in Minneapolis-St. Paul, MN, that are pursuing export
are designing plans and approaches to help local businesses expand international sales and fuel local business re- planning and expansion
tention and expansion. GREATER MSP is tapping into resources that many economic development organizations efforts as part of the
do not know are available from the U.S. government, including data resources, key local services, and federal President’s National Export
programs. This article delivers practical guidance for economic developers to integrate export promotion into their Initiative, Brookings Global
own strategies. Cities Exchange and other
initiatives.

Economic Development Journal / Summer 2016 / Volume 15 / Number 3 5

 Right now, the United States, with more than 75 con-
secutive months of private sector job growth and rela-
tively strong GDP growth, is one of the most attractive Jobs Supported by State Goods Exports in 2015
markets in the world. But think back to the environment
in 2009. Domestic demand declined exponentially as the

6.7M
worst recession since the Great Depression battered the Total jobs supported Jobs Supported by Goods
by 2015 goods
U.S. economy. exports Exports in 2015
For many American small businesses during the re-
Jobs by Region Jobs Supported by Total Goods Exports,
cession, exporting their products and services made the Ten States Whose Goods Exports Supported the Most Jobs
• Goods exports from
difference between shuttering or staying afloat. This was Texas, California, Michigan:
270,240 jobs
true for firms in a variety of sectors, from large-scale Washington, Illinois, Ohio:
and New York 260,436 jobs
manufacturing to niche industries like equipment to lift supported 41% of all
Washington:
Indiana:
190,511 jobs
375,000 jobs
and lower light fixtures. U.S. jobs supported
Illinois:
by goods exports in 333,674 jobs New York:
Aladdin Light Lift of Huntsville, Alabama, began ex- 2015 California: 315,221 jobs

porting their technology to lift and lower chandeliers • Goods exports from
706,969 jobs
Georgia:
the South region
to Canada in 1996, and the business credits the North supported nearly
198,488 jobs

American Free Trade Agreement with increasing overall 2.7 million jobs,
Midwest Texas: Florida:
93% of which were
demand and helping make Canada the business’ largest supported by the
1,658,942
Northeast
South
2,675,849
1,046,549 jobs 243,755 jobs

market. Now, Aladdin Light Lift sells to distributors in export of manufac-

882,264
West
1,500,963
tured goods
14 markets across the Middle East, Europe, Africa and *Regions defined according to Census geographic definitions
Asia. The firm’s international sales manager paints a clear Change in Jobs Supported by Total Goods Exports,
Change in Jobs
picture of where the company would be without interna- Supported by Goods
200
197
2009-2015
tional sales: without exporting, the company would have Exports
150
missed hundreds of thousands of dollars in revenue and

Thousands of Jobs
• U.S. jobs supported
by total goods exports
have fewer employees. But with exporting, its revenues have increased by 900 100
have grown an average of $200,000 a year, the firm has thousand since 2009 97

increased jobs, and sales abroad now account for eight • Goods exports from 50 63
55 49 48 48 48
Texas, Washington,
percent of total revenue. Having customers outside the California, Louisiana,
36 35 34 34 29 25 23
0
United States also means firms can more easily retain and Michigan

Texas

Washington

Michigan

Louisiana

Illinois

Georgia

California

South Carolina

New York

Tennessee

Indiana

Ohio

Kentucky

Pennsylvania

jobs, if not add them. Aladdin Light Lift says that when
things are slow in the U.S. economy, they focus on their
overseas business.
High-quality jobs
Studies by the U.S. International Trade Commission
also show that manufacturing firms that export grow
more rapidly than non-exporting firms and support well-
paying jobs.
In 2015, U.S. exports of goods and services supported
an estimated 11.5 million jobs. Every $1 billion in U.S.
exports is estimated to support 5,967 jobs. And those
jobs on average pay up to 16 percent more than manu-
facturing jobs at non-exporting companies.
A couple of myths prevail about U.S. exports: first,
that exporting is for only manufacturers and, second,
that selling internationally is only for large firms. Data
says otherwise.
WHAT MAKES A COMPANY EXPORT-READY?
A few criteria stand out. Often, export-ready companies:
• Are an established U.S. business entity
• Have a commercially available and/or exportable
product or service
• Have an executive-level management commitment to
dedicating the requisite personnel and resources
• Have an international business plan
www.export.gov/begin/assessment
Arizona
supported nearly
half of this total
change
Updated May 2016 Department of Commerce y International Trade Administration
U.S. exports of both goods and services supported an estimated 11.5 million jobs in 2015, and
6.7 million of those were supported by goods exports. Data is not available to calculate below
the national level the millions of jobs supported by exports of services, such as engineering and
consulting services or international visitors and students coming to the United States.
In 2015, U.S. exports were more than $2.2 trillion,
and services exports represented a record-high $751 bil-
lion of the total. The United States maintains a strong
position of leadership in the global services sector, and
U.S. firms providing everything from financial, consult-
ing, information communications technology (ICT), and
other business services – in addition to the spending of
foreign tourists and students – have contributed to a
longstanding trade surplus.
U.S. Secretary of Commerce Penny Pritzker in May
2016 awarded Miyamoto International, a Sacramento-
based earthquake and structural engineering firm with
the President’s “E” Award, the highest recognition a U.S.
entity can receive for significantly contributing to U.S.
exports. The company has adapted its engineering and
disaster recovery services and technical knowledge to
meet local market needs. Service companies like Miya-
moto promote U.S. expertise and research while support-
ing local dynamism and growth.
As for the second myth, a business doesn’t have to
be big to be global. Nearly 98 percent of exporters are

Economic Development Journal / Summer 2016 / Volume 15 / Number 3 6


Sandeep Maini, a Senior Commercial Specialist based at the U.S. Embassy
in New Delhi, counsels a U.S. business on potential business opportunities in
India and strategies for market entry.
smaller firms with less than 500 employees (common-
ly referred to as small to medium-sized enterprises, or
SMEs). SMEs also account for a growing share of the
value of exports, increasing from approximately 27 per-
cent a decade ago to 33 percent. The global marketplace
is more accessible to smaller firms than ever, thanks to
the internet and ecommerce platforms. In fact, eBay esti-
mates that more than 90 percent of businesses using eBay
export and 80 percent sell to five or more markets.
THE ECONOMIC DEVELOPER’S ROLE
Proactive Positioning in a Changing Global
Environment
Despite the benefits exporting yields for businesses
and their communities, less than five percent of U.S.
businesses export. Economic developers are positioned
to move the dial and help local businesses realize the po-
tential to make international trade a fact of doing busi-
ness in today’s economy.
When economic developers prioritize international
trade and export promotion, they support the expan-
sion and retention of existing businesses and move into
a more proactive position to respond to technologic and
demographic changes.
EDOs face a challenging dashboard of priorities, in-
cluding business attraction, workforce development and
infrastructure maintenance and expansion. Export pro-
motion can bolster and complement other priorities.
• FDI: A strong export base creates an attractive
landscape for foreign direct investment and increases
global connections. And when foreign investors
establish a presence in a community, they often use
their new locale as a platform for exporting world-
wide. U.S. affiliates of foreign firms are responsible
for one-fifth of U.S. goods exports, a significant
share.
• Workforce development and firm-level innova-
tion: Exporting can attract talent, through educa-
tional exchanges and other avenues, as well as foster
innovation as companies may see an opportunity
to improve or tweak their products or services for
Economic Development Journal / Summer 2016 / Volume 15 / Number 3
success in overseas markets. For example, Aladdin
Light Lift is continuously improving its product line
to meet the demands of the global marketplace and
compete with similar products.
• Entrepreneurship: With advances in communica-
tions and technology, many entrepreneurs and early-
stage companies now need to be prepared for global
success from day one. Focusing on exports adds
value to regional entrepreneurial growth strategies.
• Infrastructure development: Fostering a strong ex-
port base and assessing physical infrastructure needs
help inform plans and create data-driven cases for
transportation, port, and other development projects.
• Regional collaboration: Promoting exports en-
ables cities and metropolitan areas to pull together
with a common mission, leveraging the strengths of
multiple leaders and service providers, as evidenced
by joint metropolitan export initiatives like that of
Louisville and Lexington, Kentucky, or the Greater
Minneapolis-St. Paul region. Neighboring cities have
the opportunity to collaborate and present their
industry strengths to global consumers as a region.
EDOs are both strategic goal-setters and conveners,
making them a critical piece of a community’s export
ecosystem. EDOs’ unique missions often mean they are
assessing all available information to identify strategies
and solutions. Because of their networks, EDOs are a nat-
ural bridge between the local business community and
export assistance providers at the local, state and federal
level.
When determining a community’s position to capital-
ize on global potential, EDOs are:
1. Reviewing key industry clusters and trade oppor-
tunities in those clusters, especially to locate clus-
ters with niche opportunities, such as a confluence
of sustainable, or “green”, products, technologies and
services.
2. Identifying assets that support trade: Innovative
and/or niche companies, smaller firms, airports and
ports, rail resources, foreign trade zones, logistics
providers, broadband connectivity, university/inter-
national student exchanges, global ties through clus-
ters or sister cities, diaspora populations, and more.
EDOs are both strategic goal-setters and conveners,
making them a critical piece of a community’s export
ecosystem. EDOs’ unique missions often mean they
are assessing all available information to identify
strategies and solutions. Because of their networks,
EDOs are a natural bridge between the local business
community and export assistance providers at the
local, state and federal level.
7
3. Surveying to understand what businesses (both
exporters and potential exporters) need to be suc-
cessful. The Brookings Institution has published a
toolkit with assessment guides and survey templates,
including interview forms, used by metro areas
participating in the Global Cities Exchange planning
process.
4. Mapping the local trade assistance landscape:
Identifying all trade service providers with local of-
fices; specific types of assistance available from each
provider; the ideal client for each provider; how
companies are referred to the appropriate resource
and referral resources in place; as well as joint coun-
seling and existing partnership mechanisms.
5. Establishing where there are gaps to fill in the
export assistance landscape. For example, success-
ful EDOs are asking questions including:
o Do local companies know export assistance exists
or know where to go for help, necessitating greater
strategic outreach and communication?
o How can we support greater business participation
in major trade shows relevant to our key cluster(s)?
o Are there resources to help businesses at the very
beginning of the export process, when they may
require the most counseling and assistance, neces-
sitating more capacity building?
o Are civic leaders supportive?
o What are the implications and needs that state and
federal governments need to know about?
APPROACHES FOR FOCUSING ON
INTERNATIONAL TRADE
When the Economic Development Administration
announced the Investing in Manufacturing Communities
Partnership (IMCP) with trade and investment as a key
pillar, our team, the Trade Promotion Coordinating Com-
mittee, compiled guidance for communities approaching
the planning process.
IMCP applicants and communities that participated
in the Brookings Global Cities Exchange identified key
indicators for EDOs when integrating trade into broader
economic development strategies, including:
• Global understanding in the region
• Data and research to inform objectives
• The strength of the local export assistance
“infrastructure”
• Physical infrastructure
• Global presence
Data-Driven Objectives
One challenge regions face is identifying and build-
ing trade data at the community level. The textbox “In-
ternational Trade Strategy Development: Federal Data
Resources for Economic Developers” compiles some use-
ful data sources from the U.S. government. EDOs are
welcome to contact the International Trade Administra-
Economic Development Journal / Summer 2016 / Volume 15 / Number 3
INTERNATIONAL TRADE STRATEGY DEVELOPMENT:
FEDERAL DATA RESOURCES FOR ECONOMIC
DEVELOPERS
Databases:
• The Metropolitan Export Series Database, managed by the U.S.
Department of Commerce’s International Trade Administration (ITA),
provides U.S. Census data on exports of goods from major U.S. met-
ropolitan areas, including overall exports, export industries, exports at
the county level and more.
o LINK: tse.export.gov/metro
o National and state-level trade databases: tse.export.gov
• The Exporter Database can help EDOs identify the number of goods
exporters in their region and provides a statistical overview and tables
outlining the export activities of U.S. small and medium-sized enter-
prises. (A joint project of the ITA and U.S. Census Bureau.)
o LINK: http://tse.export.gov/EDB/SelectReports.aspx?DATA=
ExporterDB
• The U.S. Census Bureau’s USA Trade Online provides monthly and
annual trade statistics for goods at the district and port level, as well
as state exports and imports.
o LINK: https://usatrade.census.gov/
o Note – Federal government data on services trade are not
available at the sub-national level.
• There are many non-government resources, including private data-
bases and resources like the Brookings Institution’s “Export Monitor”,
which estimates goods and services exports at the metropolitan level.
Reports:
• Jobs supported by exports: In 2015, every $1 billion in goods and
services exports supported an estimated 5,967 jobs. To calculate jobs
supported by exports for a given area, consult ITA’s research on jobs
supported by exports.
o LINK: http://www.trade.gov/mas/ian/employment/
• Looking for the top global markets for your region’s industry clusters?
ITA’s Top Markets Reports in 26 industries rank future export op-
portunities and provide a detailed assessment of the competitiveness
landscape within a sector. Reports in the series include aircraft parts,
automotive parts, environmental technologies, health IT, and more.
o LINK: www.trade.gov/topmarkets
• The National Travel and Tourism Office Website includes reports
on the Forecast for International Air Travel; Survey of International
Air Travelers; Top States, Cities and Regions visited; Market Profile of
Overseas Visitors and other data and reports.
o LINK: http://travel.trade.gov
• Metro Export Factsheets: Contain detailed information regarding
merchandise trade exports to various regions of the world from U.S.
Metropolitan Statistical Areas (MSAs)
o LINK: http://trade.gov/mas/ian/metroreport/
• State Export Factsheets: Contain detailed information regarding
the value, scope, and influence of exports and foreign trade in all 50
states.
o LINK: http://www.trade.gov/mas/ian/statereports/
Additional Tools:
• The U.S. Cluster Mapping Project, www.clustermapping.us/about,
can help identify competitive industries and tradeable sectors and
benchmark against clusters in other states and regions.
• The Census Business Builder Tool, Regional Analyst Edition,
maps demographic and economic data from the Census Bureau.
o LINK: http://www.census.gov/data/data-tools/cbb.html
8

KEY INTERNATIONAL TRADE SERVICE PROVIDERS &
LEADERS IN LOCAL TRADE ECOSYSTEMS
Small Business Development Centers (SBDCs) – 900+ nationwide
Several SBDCs have staff trained to help companies go international,
and SBDCs are often the go-to resource for firms in the exploratory
phase or that are new to exporting.
U.S. Commercial Service, located at U.S. Export Assistance Centers
(USEACs) – 105+ nationwide
USEACs are the trade counseling resource for export-ready compa-
nies and provide:
• Planning and marketing assistance, including market research
from staff on the ground
• Connections to potential foreign buyers and partners, including
company background reports, support at trade shows and other
events worldwide, and help navigating cultural differences
• Help with export mechanics, including understanding required
documentation
• Support when troubleshooting or navigating overseas regulations
The U.S. Commercial Service is directly connected to a network of
Commercial Officers and local staff in 75 embassies worldwide, cov-
ering nearly 90 percent of global GDP. In posts without a U.S. Com-
mercial Service presence, the U.S. State Department provides services.
Each USEAC is affiliated with a District Export Council of experi-
enced exporters and service providers appointed by the Secretary of
Commerce to support the expansion of export opportunities for U.S.
companies and serve as a communication link between the business
community and the U.S. Commercial Service.
Small Business Administration District Trade Officers and Finance
Specialists – 21 nationwide, co-located in U.S. Export Assistance Centers
SBA District Officers provide export counseling, training, and
financing assistance for export-ready small businesses. Financing
programs, often guarantees through delegated lenders, include:
• Export Express, which can be used for a range of export develop-
ment activities, including translating marketing materials or
attending a trade show,
• Export Working Capital Program, and
• International Trade Loan
U.S. Export-Import Bank – Headquartered in Washington, DC, with 12
regional locations
EXIM Bank provides federally-backed export financing credit insur-
ance to take on the risk associated with selling to overseas buyers.
EXIM products can help firms protect against buyer nonpayment, sell
to foreign customers on credit terms, borrow against export-related
assets, finance a foreign buyer’s purchase and more.
State Trade Offices
State-level programs to assist exporters may also be in place, led by
the office of the governor, state international/trade office, or state
economic development agency. Services vary by state.
U.S. Department of Agriculture’s Foreign Agricultural Service and
State-Regional Trade Groups (STRGs) – 4 nationwide
STRGs provide counseling, market access and financing assistance
for businesses in the agricultural and value-added food products
industries. Regional groups include: The Western U.S. Agricultural
Trade Association, Southern U.S. Agricultural Trade Association, Food
Export-Northeast and Food Export-Midwest.
Minority Business Enterprise Centers and ethnic chambers of
commerce
Manufacturing Extension Partnership programs
Local international lenders and banks, legal firms, freight for-
warders and logistics firms, universities, air and water ports, and
world trade centers
Economic Development Journal / Summer 2016 / Volume 15 / Number 3
tion, which uses U.S. Census Bureau data to de-
velop metropolitan-level analysis, with specific data
requests.
It Takes a Village
Economic developers connect local businesses to
resources, and some, as in the example of GREAT-
ER MSP in Minneapolis-St. Paul, MN, have focused
on honing international trade expertise within their
own organizations. Federal agencies with locations
in communities nationwide offer different facets of
international trade assistance, and the textbox, “Key
International Trade Service Providers & Leaders in
Local Trade Ecosystems” reviews organizations that
comprise local export assistance infrastructures.
Some EDOs also have prioritized building the local
pipeline of export-ready companies. EDOs serve
as conveners, educators and a “front door” to re-
sources, directing businesses to the appropriate
trade specialist based on level of export readiness or
need.
Each trade assistance resource offers a unique
network and type of expertise. Many exporters
credit their international success to consulting with
a group of experts and building their own “export
team.” Companies like Aladdin Light Lift met the
U.S. Commercial Service in Memphis, TN, and
took advantage of market research, international
partner searches, business matchmaking, and “gen-
eral hand-holding.” Along with trade specialists
from the U.S. Commercial Service, a typical export
team includes freight forwarders, international law-
yers, bankers, small business representatives and
state trade offices, many with state-administered
programs to help businesses defray the cost of ex-
port development activities.
Bundling Resources
EDOs like GREATER MSP and others integrat-
ing export promotion into long-term strategies
learned about the many export and trade programs
available and figured out ways to bundle them for
greater impact. A list of key programs is in the box
“Leveraging Opportunities: Federal Programs to
Know,” and here are how some of these programs
bolster one another:
• Regional-federal collaboration programs can
help EDOs add value and service offerings:
For example, EDOs accepted to the Export-
Import Bank’s Regional Export Promotion
Program (REPP) receive training and direct
assistance to help originate export finance solu-
tions for local businesses, in addition to offering
marketing assistance. GREATER MSP pursued
a strategic partnership with the International
Trade Administration to be able to more easily
cross-promote services and streamline help for
clients. An additional benefit of those programs
includes regular newsletters with the latest in-
9

formation on program improvements and
news that can benefit communities.
• Data-driven plans build the case for
designations and matching-grant
awards: GREATER MSP and others used
their regional export plans and objectives
to inform applications to designations like
the Investing in Manufacturing Commu-
nities Partnership (IMCP) and the Market
Development Cooperator Program, which
is a matching-grant award with the Inter-
national Trade Administration to support
a dedicated export project, e.g. medical
device exports to Asia.
Also, when applying to the State Trade
Expansion Program, states must build
a project plan for how they intend to
deliver funds to small businesses. More
cohesion on objectives and joint planning
within the export ecosystem helps clarify
the case for how local small business
exporters will benefit from potential STEP
funding.
• Financing resources and funding
awards can help small businesses
participate in tested and successful
trade development programs: Small
businesses can use STEP funding (if avail-
able) or SBA’s Export Express Program
to conduct customized trade missions
through the U.S. Commercial Service’s
“Gold Key” Program, attend trade shows,
and participate in large-scale international
business matchmaking conferences like
Trade Winds.
In addition, should a company meet
a prospective buyer or distributor while
attending a trade event or otherwise, they
can work with the U.S. Export-Import
Bank (EXIM). EXIM’s export credit in-
surance allows a business to offer com-
petitive payment terms, such as allowing
60- or 90-days for a buyer to pay, while
guaranteeing payment for the transaction.
• Follow-on activities bolster training
programs: The ExporTech™ program,
produced by Manufacturing Extension
Partnership centers (named differently
in every state) in partnership with the
U.S. Commercial Service, offers intensive
training to export-ready executives. A
follow on “Gold Key” Service or an initial
market research element is often built-in
to encourage action after the training.
Since 2007, ExporTech™ has assisted
hundreds of businesses across the country
to increase export sales, establish new
partnerships, expand production facilities
and hire more employees.
Economic Development Journal / Summer 2016 / Volume 15 / Number 3
LEVERAGING OPPORTUNITIES: FEDERAL PROGRAMS TO KNOW
To Make International Sales (for businesses)
• Export.gov – the leading, one-stop online portal for U.S. exporters.
• Export Business Planner – a free, customizable tool for small business owners who
are exploring exporting. Available on SBA.gov.
• Trade events – domestic trade shows with the International Buyer Program, certified
overseas trade shows, state and federal trade missions. Listed on Export.gov.
• Certified trade missions – Department of Commerce Certified Trade Missions (CTMs)
are overseas events planned, organized, recruited, and led by private and public sector
export-oriented groups, but supported by the Department’s overseas Commercial Ser-
vice offices.
• Protection of Intellectual Property: Just because a business has registered intellec-
tual property in the United States does not mean it is protected globally. A good place
to start is the IP Training Module on StopFakes.gov.
• Logistics navigation and export regulation compliance: When exporting any
goods valued at over $2500, information must be submitted to the Automated Export
System, and a small percentage of products may require an export license. Contact the
U.S. Census Bureau and Bureau of Industry and Security.
To Stay in the Loop (for EDOs)
• Strategic Partnerships Program (International Trade Administration, U.S. Department
of Commerce) – local and national partnerships to support trade promotion.
• EXIM Bank’s Regional Export Promotion Program (REPP) – partnerships with state
and local governments, local nonprofits, world trade centers and more to increase ac-
cess to export financing.
• Making Global Local Program – The U.S. Trade and Development Agency links U.S.
businesses with foreign buyers through reverse trade missions to the United States and
worldwide conferences and workshops. Making Global Local is a USTDA initiative de-
signed to connect towns and cities across the country with USTDA’s export-promoting
programs.
For Training and Education (for businesses and EDOs)
• ExporTech – Hollings Manufacturing Extension Partnership (NIST MEP) Centers and
U.S. Export Assistance Centers offer ExporTech™, an intensive program to help business
leaders build and execute export plans. Contact your local MEP Center for more infor-
mation.
• EXIM Bank Global Access Forums – Export financing events and training held regu-
larly nationwide.
• “Expanding Horizons” Workshops – Educational forums on Overseas Private Invest-
ment Corporation, the U.S. government agency responsible for supporting private-
sector investment in developing countries.
• Interagency Trade Officer Training – Limited spaces are available each year for state
and local government and economic developers in overview course on trade resources
across the federal government. Contact the Trade Promotion Coordinating Committee
Secretariat at 202-482-5455 for more info.
Grant and Funding Award Programs (for associations and businesses)
• State Trade and Expansion Promotion (STEP) – Since 2011, SBA’s STEP program has
awarded matching-fund grants to states to assist eligible small business concerns to en-
ter and succeed in the international marketplace. The SBA and STEP website will allow
you to see how the program is funded in your state, with a brief description by state of
the intentions of how the award will be used to support exporters.
• Market Development Cooperator Program (MDCP) – The Department of Com-
merce’s MDCP awards include financial and technical assistance from the International
Trade Administration (ITA) to support projects that enhance the global competitiveness
of U.S. industries. An MDCP award establishes a partnership between ITA and non-
profit industry groups such as trade associations and chambers of commerce.
To Facilitate Trade and FDI
• SelectUSA – Established by President Obama in 2011, SelectUSA is the government-
wide program to promote and facilitate business investment into the United States in
order to create jobs, spur economic growth, and advance U.S. competitiveness. Select-
USA helps U.S. locations attract and retain job-creating investment by amplifying their
reach globally.
• Foreign Trade Zones – A Foreign Trade Zone (FTZ) helps encourage exports and invest-
ment by allowing delayed or reduced duty payments on foreign merchandise, as well
as other savings. Local governments and organizations, such as ports or economic
development organizations, can apply to the FTZ Board (trade.gov/ftz) to create an FTZ
in their communities.
10
 CASE STUDY: GREATER MSP
The Greater Minneapolis-St. Paul region dates its “export mo-
ment” to February 2011 when U.S. cabinet officials, Congressio-
nal and state-level representatives, and nearly 400 local businesses
and stakeholders gathered to officially launch the National Export
Initiative (NEI). President Obama had announced the NEI the
previous year in his State of the Union Address with the goal of
orienting U.S. businesses toward the global marketplace, tapping
international markets and exponentially increasing U.S. exports to
help fuel the much-needed economic recovery. The official launch
in Minneapolis-St. Paul helped community leaders see the poten-
tial to turn their region into an export powerhouse.
Taking the national initiative to the metropolitan level, the
Brookings Institution in 2011 selected Minneapolis-St. Paul, to be
part of a pilot effort: the Metropolitan Export Initiative (MEI). The
MEI provided the region, along with Syracuse, NY; Portland, OR;
and Los Angeles, CA, an opportunity to test a structured process
of developing metropolitan export plans with the benefit of lever-
aging each other to use what they learn. The U.S. Department of
Commerce, home to the interagency coordinating body charged
with implementing the objectives of the National Export Initia-
tive, partnered with Brookings to bring local and national export
expertise to bear for communities in the pilot.
The MEI acted as impetus to bring
together organizations at all levels of
government as well as private service
providers with a stake in increasing
exports. To drive the strategy, a steer-
ing committee was formed consisting
of GREATER MSP, leadership from the
Cities of Minneapolis and St. Paul,
the State of Minnesota, the University
of Minnesota, the U.S. Commercial
Service office in Minnesota, and
15 other organizations. Using the
model developed by the Brookings
Institution, the team gathered data
on international trade indicators and
surveyed local companies – exporters
and non-exporters – on their needs.
Using quantitative data and qualitative
feedback, an initial set of objectives
were set: increase and sustain regional
jobs through exports, expand export
reach by increasing the number of
GREATER MSP is one of exporting companies and the number
many EDOs across the
of countries to which local companies
country that are prioritizing export, and increase global orientation
export promotion, delivering
in the region.
services to help local firms
grow their international One key result of the planning ef-
business, and coordinating fort was the decision to create a “road
with key international trade map.” The map has two key func-
service providers in their tions: first, to help local businesses
region. to identify services appropriate for
each stage of the export process; and
second, for local service providers to better understand who does
what and increase referrals among resources. What may sound
simple is fraught with difficult conversations and complications
in reality, but the MSP region saw a need and brought partners
together to take action.
Additional gaps identified in the assessment process included
resources to support new-to-export companies and more proac-
tive company outreach to help businesses become more inten-
tional and engaged relative to exports.
Economic Development Journal / Summer 2016 / Volume 15 / Number 3
Jeffrey Rainey,
project manager with
GREATER MSP in
Minneapolis-St.Paul,
MN, shows how his
economic development
organization touts
regional assets for
potential investors.
As the region road-tested its plan, the process has been itera-
tive. A key insight was that exports go hand-in-hand with FDI,
and so GREATER MSP and its partners evolved the MEI plan to be
a comprehensive trade and investment plan. As best practices
emerged in the export planning process, Brookings and fund-
ing partners including J.P. Morgan Chase were able to support a
larger cohort of 28 regions that are currently in various stages of
drafting or executing export or comprehensive trade and invest-
ment plans.
To GREATER MSP, the secret to success is FOCUS. The organiza-
tion is focused on building on its identified strengths and engag-
ing local industry clusters, specifically medical devices, and water
and food solutions in the global context. The EDO is focused on
specific markets and seeks to continually define and target efforts.
GREATER MSP is also focused on marketing the region’s assets
to locals as well as customers and potential investors across the
country and the world.
The organization was able to build on the region’s initial
progress with an injection of grant funding from the J.P. Morgan
Chase Foundation.
The EDO hired the organization’s first export development
manager, Jennifer Erickson, in spring 2016. She is focused on
strengthening coordination across the region, including:
• Implementing a new strategic partnership with the U.S.
Department of Commerce, allowing for more joint business
counseling with the Minneapolis U.S. Export Assistance Center
and eventually entering into an agreement of a joint project
to engage, coordinate and partner on a daily basis by sharing
office space.
• Working closely with the Minnesota Trade Office, which among
providing direct trade services, also administers funding award-
ed by the U.S. Small Business Administration through the State
Trade Expansion Program. States that receive funding under the
annual program use the funds to assist small businesses to help
lower the financial threshold to attend trade shows and pursue
export development activities.
• Leveraging unique opportunities in the region. For example,
Minneapolis-St. Paul received the Economic Development Ad-
ministration’s IMCP – Investing in Manufacturing Communities
Partnership – designation, which they translated into forming
the Minnesota Medical Manufacturing Partnership.
GREATER MSP’s recommendations to other EDOs include:
1. Know your partners. Leverage their strengths and help them
meet their goals.
2. Decide on metrics, or how success will be demonstrated.
Metrics GREATER MSP currently focuses on include outreach
efforts, company visits, referrals to other organizations and suc-
cess stories.
3. Focus. Once an EDO has established the industries in which the
region excels and the markets in which they want to focus, be
there. Build relationships. Do not expect immediate results, but
be patient and celebrate every success.
11
 Commodity prices and currencies are fluctuating.
The United States has maintained, even increased, the
U.S. businesses face mounting global headwinds. volume of products and services reaching international
Continued weak economic growth abroad, and customers, but the decline in U.S. exports in 2015 was
mainly due to a drop in the value, or price, for key U.S.
therefore low demand for U.S. products, is a sig-
exports, particularly commodities such as petroleum
nificant challenge facing U.S. exporters. Econom- products and agricultural products.
ic growth in China – the third-largest U.S. goods Trade restrictions in foreign markets continue to
export market – continues to slow, affecting U.S. emerge, such as in the form of protectionist regulations
and standards, including restrictions impacting digital
exports not only to China, but also to countries trade.
that are major Chinese suppliers such as Brazil, There are bright spots. U.S. exports of some higher-
Japan, and Korea. value goods sectors saw growth in 2015, including aero-
space, pharmaceuticals, and telecommunications equip-
ment, and services exports reached a new record high,
Sustain Focus
mentioned earlier.
After a community has developed data-driven ap-
proaches to export promotion, seeking to strengthen its Economic forces at work globally make supporting
local export assistance infrastructure and use available U.S. exporters, particularly smaller companies, more
programs, sustaining focus remains a challenge. Unlike important than ever.
a new plant opening, ribbon cuttings and public events
In addition to providing high-quality export assistance
do not usually follow export expansion efforts. A busi-
and programs, the U.S. government is working to level
ness decides when and how to expand internationally,
the playing field through trade policies that enable U.S.
and the process from the beginning of a transaction to
businesses to compete. Countries worldwide look to the
complete sales is often 18 months or more. This longer
United States for the highest standards in doing business,
process often challenges traditional economic develop-
including our rule of law, innovation and entrepreneur-
ment metrics, which is why EDOs like GREATER MSP
ship, R&D, our world class universities, and a talented,
are re-envisioning how to capture success in export
productive and diverse workforce. The United States is
promotion.
negotiating agreements with key trading partners to meet
Federal agencies committed in 2014 through the Na- the needs of U.S. business and maintain these attributes
tional Export Initiative/NEXT – the second generation of and values.
the national strategy to help more U.S. businesses reach
For example, the Trans-Pacific Partnership (TPP)
more markets – to supporting EDOs and states as they
agreement with 11 other Asia-Pacific countries, includ-
prioritize and focus on exports. Trade agencies like the
ing five new trade agreement partners, preserves Ameri-
International Trade Administration are collaborating
ca’s global leadership. TPP ensures that the United States
with the Economic Development Administration to har-
and like-minded partners, write the rules for commerce
monize programs and expand access to information and
and trade in the Asia-Pacific, the fastest growing region
best practices, despite limitations on trade data available
in the world. The agreement eliminates tariffs on indus-
below the national level. Articles and toolkits like this are
a start.
In addition, agencies through the President’s Made in
Rural America export and investment initiative are com-
mitted to expanding access to trade assistance in rural
areas where export-supported jobs carry many additional
downstream benefits. Rural trade specialists in the U.S.
Commercial Service have organized to develop trade ex-
pansion projects based on needs in their communities
and to build an export toolkit specific to rural business.

WHY EXPORT PROMOTION IS MORE IMPOR-

TANT THAN EVER
U.S. businesses face mounting global headwinds.
Continued weak economic growth abroad, and therefore
low demand for U.S. products, is a significant challenge
facing U.S. exporters. Economic growth in China – the
third-largest U.S. goods export market – continues to Deputy Assistant Secretary of Commerce for the United States Antwaun Griffin
slow, affecting U.S. exports not only to China, but also to presents an Export Achievement Certificate to Ted Jacob Engineering Group for the
countries that are major Chinese suppliers such as Brazil, firm’s accomplishments in recent international sales. Celebrating success and shar-
Japan, and Korea. ing stories is one way to demonstrate outcomes and build support for EDO efforts
to increase local exports.

Economic Development Journal / Summer 2016 / Volume 15 / Number 3 12


Members of the U.S. Department of Commerce’s Commercial Service Education
Team promote services to help U.S. universities attract international students
and develop strategies that support U.S. exports and local economic growth.
trial, consumer and agricultural goods, giving Asia-Pa-
cific consumers an end price that allows U.S. goods to
compete with those produced in-market. The agreement
reflects the modern realities of trade, with key provisions
like streamlining customs procedures and allowing for e-
signatures that will help U.S. businesses of all sizes have
greater certainty and transparency, and save time and
money in the process.
For smaller companies like Aladdin Light Lift, tariff
elimination and the agreement’s other measures mean
TPP stands to tangibly benefit their business. More than
two-thirds of the company’s export sales currently come
from the region.
Right now, China is negotiating its own trade deal
– one that puts China’s interests first with weak labor
and environmental rules that would put American jobs
Economic Development Journal / Summer 2016 / Volume 15 / Number 3
and businesses at risk. The United States should set the
rules of the road for trade in this critical region, which
is expected to grow to be 10 times the size of the U.S.
consumer base by 2030. That is why it is so important
that Congress approve TPP this year, and the Administra-
tion is committed to working closely with Congress, to
protect American workers through a trade deal that puts
them first and cracks down on unfair trade practices that
put American businesses at a disadvantage.
CONCLUSION
Economic development organizations are in a key po-
sition to help businesses in their communities capitalize
on global economic opportunities, and many EDOs have
begun to play stronger roles in local export assistance in-
frastructures.
At the 2016 IEDC Federal Forum, IEDC Internation-
al Advisory Committee member Michael Jackson, with
EXIM, remarked that a few years ago, exporting and as-
sisting local exporters often seemed like a side issue, or
specialized topic that economic developers saw as sepa-
rate from their work. Now, he said he has seen more fo-
cus put on international competitiveness, and we have
reached an inflection point. The more than 50 EDOs at
the session agreed with shouts and applause that now is
the moment to make trade a focus for economic develop-
ers. Now is the time to move trade promotion from the
sidelines of traditional economic development. Now is
the time to make export assistance an essential core prac-
tice for modern economic developers.
Already EDOs are seizing the opportunity, and we
hope resources provided here will help you continue to
drive export promotion efforts.
THE IEDC
ONLINE
BOOKSTORE
Visit IEDC’s Online
Bookstore for the very
best offerings of ED
publications from major
publishers, plus IEDC’s
own technical reports
and education manuals.
For more information
visit: iedconline.org
Or call: (202) 223-7800
13
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