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Blog Category: International Trade Administration

2015 SelectUSA Investment Summit Off to a Roaring Start

Secretary Pritzker welcomes President Barack Obama to the 2015 SelectUSA Investment Summit

With more than 2,600 people from more than 70 markets, and economic development organizations from all corners of the United States, the 2015 SelectUSA Investment Summit has record attendance. In fact, it is more than twice as large as the inaugural 2013 event and reflects growing global interest in the United States as a place to launch and expand operations, invest in research and development, and create jobs.

Day One of the 2015 SelectUSA Investment Summit just concluded and what an exciting day it was. We were honored to have President Obama speak and announce some new initiatives to make investing and expanding within the United States even easier.

He announced that the U.S. Citizenship and Immigration Services will increase clarity around the adjudication of the L-1B non-immigrant visa that allows international companies to temporarily deploy workers with specialized knowledge to the United States when launching or conducting operations here. This long-anticipated policy guidance is of particular interest to global companies participating in today's SelectUSA Investment Summit.

Commerce Secretary Penny Pritzker will establish the first-ever federal advisory committee to solicit formal input on the development and implementation of strategies and programs to attract and retain foreign direct investment in the United States.

Finally, SelectUSA will continue to improve investment tools, enhance trainings for investors, and expand partnerships with state economic development organizations. A new partnership platform will improve state-federal coordination, inform SelectUSA services and programs, and promote high standards in investment-promotion activities across the country.

Innovation and Software are the Reasons to Select the USA

Eric A. Spiegel, President and CEO, Siemens USA

Guest blog post by Eric A. Spiegel, President and CEO, Siemens USA

Today, as part of the Select USA Investment Summit, I had the honor of joining an impressive group of business leaders, international investors and experts for an in-depth conversation about how innovation and R&D is helping to fuel private sector investment, and why the United States is poised for tremendous growth. 

I’d like to applaud U.S. Commerce Secretary Penny Pritzker for bringing together more than 2,500 participants representing 60 countries, drawing international attention to the U.S. as a premier country to invest in at such an optimal time.  International companies representing countries from around the globe, such as Germany, contribute largely to Federal Direct Investment (FDI) and find the U.S. an attractive place to invest.  And Siemens does too.

To give you a little bit of background, Siemens is one of the world’s oldest and biggest companies.  Having been in the U.S. for over 150 years, we currently employ nearly 50,000 people throughout all 50 states and Puerto Rico.  We have more than 70 manufacturing sites in the U.S. and invest more than $1 billion annually in R&D here. 

The U.S. has become an innovation engine for Siemens.  It is not only our largest market, but is also an extremely vital production location, one of our most important research centers and a key base from which we export to the rest of the world.  Siemens has invested over $35 billion in America over the past decade, including over $10 billion in the past year alone.

So why invest in the U.S.?  As a global company, when we are looking for a new location to invest or to manufacture, we consider many factors and there are several which are unique to the U.S. market, giving it a leg up on the competition.

  1. Strong ecosystem for innovation and R&D
  2. World-class colleges and universities
  3. Leadership in software and the digital economy

It’s clear that the primary trait that sets the U.S. apart as a unique and unrivaled place to invest is an undeniable spirit of innovation. The U.S. has an environment of innovation, collaboration and talent that is unmatched anywhere in the world. 

International Trade Agreements Are Vital to Wisconsin Firm’s Continued Growth

International Trade Agreements Are Vital to Wisconsin Firm’s Continued Growth

Guest Blog Post by Jim Corkery, President of ACS

Recently I had the opportunity to meet Secretary of Commerce Penny Pritzker and several US Senators and Representatives to talk about global trade. I strongly support the Trade Promotion Authority (TPA) legislation and want to share my views on how ACS has directly benefited from global trade.

We are an organization offering engineering, equipment fabrication and construction management solutions to companies who develop and test engines and vehicles for worldwide distribution. Our office employees are highly skilled college graduates, most with engineering and advanced engineering degrees, and our manufacturing employees have specialized skilled trades expertise.  Although we have fewer than 150 employees, the global nature of business today means we have offices in Wisconsin, Michigan and South Carolina as well as in the UK and China.   Getting the rules of international trade right is not just theory for my company; it will help accelerate our growth.

The first way we benefit from global trade is when our US-based clients develop products for sale globally – we benefit through contracts to design and construct our clients’ R&D/Manufacturing centers here in the U.S.  These opportunities allow ACS to hire more engineering, manufacturing and support employees to accomplish this work. For example, we recently contracted with Cummins to design and build their R&D and Manufacturing test facilities for a new High Horsepower engine to be designed and manufactured in Seymour, Indiana. This facility serves as the global headquarters for the design and manufacture of this new engine with exports forecasted to be 80% of overall sales.

We have also had opportunities to design and construct international R&D/Manufacturing centers for our US-based clients. Typically we provide preliminary design in the US and then travel to the project countries to oversee final design and construction by local designers and contractors. We have designed and built laboratories for Caterpillar in the US, England, Northern Ireland and China, for Whirlpool in the US, Mexico, Poland and China, for John Deere in the US and Mexico, and for Cummins in the US, England, Romania and China.

SelectUSA Works for Puerto Rico

Alejandro J. García-Padilla, Governor of the Commonwealth of Puerto Rico

Guest blog post by Alejandro J. García-Padilla, Governor of the Commonwealth of Puerto Rico

Almost a year after we announced that Lufthansa Technik would establish an aircraft maintenance, repair and overhaul (MRO) facility in Puerto Rico, we are getting ready to celebrate the 2015 SelectUSA Investment Summit.

With an estimated economic impact of $2.2 billion over a 30-year period, Lufthansa Technik’s decision to establish an MRO site in Puerto Rico is a major strategic advancement for the Commonwealth’s economic development plan. The facility is well under construction and has secured JetBlue and Spirit Airlines as customers. The MRO is expected to begin servicing customers later this year.

Since I took office in January 2013, I have sought to diversify Puerto Rico’s economy by attracting foreign direct investment like Lufthansa Technik, a leading manufacturer and independent provider of technical services for the aviation industry.

And make no mistake, investing in Puerto Rico is investing in the United States. That is why, with the help of the Commerce Department’s Select USA program, we sought out Lufthansa Technik to create jobs that capitalize on the highly skilled workforce that our Island’s university system trains.

The MRO facility is helping to grow Puerto Rico’s aerospace and aviation industry, create high-skilled jobs, and stimulate science, technology, engineering and math (STEM) education. By 2016, up to 400 highly skilled workers will be employed there. Puerto Rico now has the infrastructure to train new aircraft mechanics, with the brand new Aerospace and Aviation Institute of Puerto Rico under development.

This deal was just the beginning of an exciting partnership between Puerto Rico and SelectUSA.  The Lufthansa Technik site is causing a positive ripple effect in the economy, spurring the growth of MRO suppliers.

I also recently announced that business technology consulting firm Infosys BPO will open a new center in Puerto Rico to serve the Island’s growing aviation sector. This investment is another example of foreign direct investment brought on by the ripple effects of the Lufthansa MRO. Infosys will utilize this new center to deliver complex order-to-cash business processes for clients in the aviation industry and create over 200 jobs. The company is looking to further expand its footprint in the region to service clients in the federal government sector and the healthcare industry.

I commend the work of President Obama’s Administration, which was instrumental in bringing Lufthansa Technik to the United States and creating hundreds of well paid jobs in Puerto Rico. I also express my deep gratitude to Vice President Biden, Secretary Pritzker and the SelectUSA Program for making these investments a reality.

The investment from Lufthansa Technik and its impact in the economy are proof that SelectUSA works. We look forward to a long partnership with SelectUSA.  

SelectUSA 2015 Investment Summit Highlighting United States As Premier Investment Destination

There is no time like the present to invest in the United States. In fact, the U.S. is rated #1 in the latest A.T. Kearney Foreign Direct Investment Confidence Index for the second year in a row, with the highest net positive rating in the index’s 16-year history. 

With an incredibly attractive consumer market, a thriving culture of innovation, and the most productive workforce, the U.S. has shown itself to be an economic powerhouse. Companies of all sizes – big or small, startup or multinational– can benefit from the ideas, resources, and markets the U.S. offers in order to become a globally competitive nation. Because of these reasons, the U.S. proudly welcomes international investment. 

When deciding to invest in the U.S., firms can look at five factors: 

  1. Market: The U.S. is home to the most attractive consumer market and serves as a competitive export hub to the rest of the world. Free trade agreements with 20 nations give U.S.-based exporters better access to markets with more potential consumers.
  2. Economic Growth: During 2013 to 2014, Real GDP grew at a 2.8 percent annual pace. The private sector successfully expands with the longest streak on record for job growth.
  3. Business-Friendly Environment: The U.S. offers a transparent, fair and stable business environment and thriving capital markets to support developing companies.
  4. Innovation: As a world leader in research and development (R&D) and intellectual property protection, the U.S. provides a productive environment for innovation. Firms can improve their competitiveness by associating with research institutions and employing leading-edge manufacturing techniques.
  5. Resources: There is a manufacturing renaissance occurring due to the diversified resources, low cost energy and a well-educated workforce. 

These compelling factors and more will be on display at the 2015 SelectUSA Summit next week.   The two-day Summit, March 23-24, is the premier event for those considering an investment. The event will feature nearly 600 representatives from nearly every state and territory, providing ample opportunity for investors to find the information needed to make investment decisions and connect with the right people at the domestic level. Many states, territories, cities, and regions are also hosting booths in the Summit exhibition hall to connect directly with investors.

All year round, SelectUSA coordinates federal agencies to address investor concerns relating to federal regulations. This year, representatives from 20 federal agencies will be on-site at a U.S. Government Pavilion in the Summit exhibition hall to meet face to face with investors, as well as state and local representatives. 

The Summit is at capacity with more than 2,600 people registered from more than 70 markets, doubling the size of the inaugural event in 2013. President Barack Obama will give the keynote address on the first day.  Other Administration officials delivering remarks include Commerce Secretary Penny Pritzker, Secretary of State John Kerry, Secretary of the Treasury Jacob J. Lew, Secretary of Agriculture Thomas Vilsack, Secretary of Labor Thomas Perez and Secretary of Transportation Anthony Foxx. Some of the world's top CEOs will be there to discuss the advantages of investing in America and the jobs it creates. Among the executives speaking at the event will be Eric Schmidt, Executive Chairman of Google, and David Rubenstein, Co-Founder and Co-CEO of the Carlyle Group, the world’s largest equity firm.

North Carolina Attracts FDI in Manufacturing and Textiles

Under Secretary Stefan Selig (seond from left) participates in a ribbon cutting ceremony with North Carolina Governor Pat McCrory (left) PEDS Legwear President and CEO Michael Penner and Walmart Vice President of U.S. Manufacturing Cindi Marsiglio

Cross blog post by Stefan M. Selig, Under Secretary of Commerce for International Trade

On Wednesday afternoon, I delivered remarks in Hilderbran, North Carolina at a ribbon-cutting ceremony where we officially opened the new Canadian-based Peds® Legwear (PEDS) production facility. PEDS’ recent $16 million investment in the plant and new machinery has allowed the company to hire North Carolina factory workers who were previously laid off. By 2018, this new facility will bring more than 200 jobs to Hildebran, providing a lift to the local economy.

SelectUSA, our program to attract foreign direct investment (FDI), along with our Commercial Service Canada team, helped facilitate this deal. SelectUSA provided counseling to PEDS on how to navigate the federal regulatory process and also helped identify sources of federal funding. In addition to PEDS’ investment in the Hildebran facility, the company plans an additional $8 million venture, bringing their total investment in the United States to $24 million. In less than two weeks, similar FDI deals will be highlighted at this year’sSelectUSA Investment Summit, which will take place March 23-24.

In addition to ITA’s support, PEDS’ new investment is made possible because of a multi-year purchase order contract from Wal-Mart as part of the retailer’s commitment to buy domestically produced goods.

As I noted in my remarks—before an audience that included Michael Penner, president and CEO of Peds®Legwear; Cindi Marsiglio, Wal-Mart’s vice president of U.S. manufacturing; and North Carolina Governor Pat McCrory—PEDS’ investment in the facility shows our nation’s prowess to attract FDI.

Because the United States offers a transparent, fair, and stable business climate, as well as our second-to-none workforce, many global companies like PEDS are beginning to establish or expand operations here. In fact, in 2013, U.S. FDI inflows totaled $231 billion, of which $51 million was invested in U.S. textile and apparel manufacturing. In 2012, majority-owned U.S. affiliates of foreign firms accounted for $48 billion in R&D expenditures, exported $334 billion worth of U.S. goods exports, and employed nearly 6 million workers.

To keep the momentum, ITA will continue to develop opportunities for U.S. workers and businesses by promoting international trade, encouraging FDI, and working to foster a level playing field for American products and services.

Increased Exports and the Jobs Supported by Exports Are Keys to Heightened Economic Confidence

Increased Exports and the Jobs Supported by Exports Are Keys to Heightened Economic Confidence

Guest blog post by Stefan M. Selig, Under Secretary of Commerce for International Trade

When we look back at 2014, it will be seen as the year our country regained its economic confidence, symbolized by the nearly 3 million jobs our economy created in 2014.

While this feat extended the longest streak of job growth in American history, we should not overlook the role our exports and our exporters played in regaining that economic confidence.

U.S. exports of goods and services tallied a record $2.35 trillion in 2014. That was the fifth consecutive year we achieved record exports. This is a clear validation of the Administration’s commitment to a robust trade and investment agenda.

In fact, there are three ways that our exports played an important role in the breakthrough year our economy produced.

First, at the same time that we were experiencing the longest streak of job growth, we also experienced a record year when it came to export-supported jobs: more than 11.7 million.  This number includes the 2.8 million jobs supported by the exports to our North American Free Trade Agreement partners Canada and Mexico. And we know those export supported jobs pay 13 to 18% higher wages than non-export supported jobs.  

Second, U.S. exporters reaped the benefits of a record year of exports with our 20 free trade partners – with a total of $765 billion in goods sent to these markets. That record included increases in exports to Colombia (up 10.5%), South Korea (up 6.8%) and the Central America Free Trade Agreement-Dominican Republic partners (up 5.7%).  Overall, these 20 countries purchase nearly half of all U.S. exports today – 47% to be exact.

Third, a major driver of our export growth came from our Latin American free trade partners, such as Chile, Colombia, Mexico, Panama, and Peru. Exports to these 11 countries alone represented more than a third of our entire year-over-year increase in exports. The region is a major destination for U.S. petroleum and coal, computers and electronics, chemicals, and transportation equipment.

So 2014 was clearly a breakthrough year for our exports and for our economy in general. Now, we need the tools that will allow us to carry that momentum into 2015 and beyond.

That is why passing trade promotion legislation is even more crucial, particularly as we work to finalize the historic Trans-Pacific Partnership agreement (TPP).

President Obama Renews Charge to Help Rural Companies and Communities Compete Globally

Spiral Candles, proudly made in North Dakota

Yesterday, President Obama announced new commitments in the “Made in Rural America” export and investment initiative, which is charged with bringing together federal trade-related resources for rural communities and businesses. This announcement reflects the Administration’s strategy for ensuring workers and businesses of all sizes, from communities large and small, benefit from the nation’s economic resurgence. 

The Department of Commerce also released data yesterday that show 26 states set new export records in 2014, and many of those states are in the nation’s heartland.

The Administration’s next steps in the “Made in Rural America” initiative build on input received from rural businesses and communities throughout the past year.  Following the President’s announcement of the initiative in February 2014, agencies led several regional forums across the country, a Rural Opportunity Investment conference last summer, and new partnerships to help more rural businesses – making everything from amphibious vehicles to aquaculture products – plug in to export assistance.    

Last year, we confirmed that rural businesses have the products and services in demand worldwide, and the drive to export – just like urban businesses. The challenge is improving their access to information and export services, including financing and logistics. U.S. Commercial Service – North Dakota Director Heather Ranck and rural companies spoke about that in this “Export Experts” video released last October.

Highlights from yesterday’s announcement include the following:

Commerce Secretary Penny Pritzker Announces Twenty-Six States Achieved Record Export Levels in 2014

Commerce Secretary Penny Pritzker Announces Twenty-Six States Achieved Record Export Levels in 2014

U.S. Secretary of Commerce Penny Pritzker today announced new data that shows 26 states achieved records in goods exports in 2014, while eight additional states experienced growth in merchandise exports over 2013 levels. Total merchandise exports from all 50 states helped the U.S. achieve the fifth consecutive record-setting year of goods and services exports, which reached $2.35 trillion in 2014. 

Secretary Pritzker praised today’s announcement stressing the fact exports are critical to economic growth and job creation in communities across the country. “With 95 percent of the world’s consumers living outside the United States, opening more markets to ‘Made in America’ goods and services is fundamental to our nation’s competitiveness, job creation, and the economic security of our families,” she said. 

Strengthening partnerships with states and rural communities in support of exporters and investment attraction efforts is a key objective for the second phase of President Obama’s National Export Initiative – NEI/NEXT, which Secretary Pritzker launched in May 2014. Through NEI/NEXT, 20 federal agencies are advancing program and policy improvements to provide exporters more tailored assistance and information; streamline export reporting requirements; expand access to export financing; ensure market access and a level playing field; and collaborate with state and local organizations. 

The 26 states that set new records for exports in 2014 include:

  • Texas ($289.0 billion);
  • California ($174.1 billion);
  • Washington ($90.6 billion);
  • Illinois ($68.2 billion);
  • Louisiana ($65.1 billion);
  • Ohio ($52.1 billion);
  • Georgia ($39.4 billion);
  • Indiana ($35.5 billion);
  • Tennessee ($33.0 billion);
  • North Carolina ($31.3 billion);
  • South Carolina ($29.7 billion);
  • Kentucky ($27.5 billion);

Secretary Pritzker Tours DODOcase and Highlights Successful San Francisco Exporters

Secretary Pritzker Tours DODOcase and Highlights Successful San Francisco Exporters

On Thursday, U.S. Secretary of Commerce Penny Pritzker visited DODOcase, a San Francisco-based manufacturer of high-quality cases for electronics like tablets and smart phones.  During her tour of the company’s manufacturing facility, Secretary Pritzker met with company executives and spoke with other San Francisco area business leaders and policymakers about the importance of trade and exports to businesses' ability to grow and hire. 

DODOcase CEO and founder Craig Dalton lead the tour with Secretary Pritzker. During the tour Secretary Prtizker met with DODOcase staff and talked to many of them as they designed  iPad and tablet cases. 

Dalton launched DODOcase in 2010 after seeing a need to keep the art of bookbinding alive by adapting it to the world of digital devices. DODOcases and sleeves are handmade in San Francisco. When the company opened its doors in April 2010 - the same day iPad was released in the United States - they only had two employees. Today, their workforce has grown to 22 workers and they ship their products all around the world. From day one, 30 percent of DODOcase's business has been to customers overseas, which means that, from the start, exports have been part of the company's business model and success.  

Also joining Secretary Pritzker for the tour, were several San Francisco business community leaders including  John Dannerbeck, the President of Anchor Brewing. Anchor Brewing is a brewery and distillery on San Francisco’s Pontero Hill. Today the company sends its fourteen products to several markets around the world. While not a traditional export product, craft beer export volume increased by 49 percent in 2013, representing 282,526 barrels and an estimated at $73 million, according to data from the American Brewers Association. Secretary Pritzker also met with Kate Sofis, Executive Director of SFMade. SFMade is a non-profit organization that works to support the manufacturing sector in San Francisco, sustain companies producing locally-made products, encourage entrepreneurship and innovation, and creates employment opportunities for a diverse local workforce in the Bay Area. The San Francisco metropolitan area is the 10th largest export market in the country, with merchandise exports totaling $25.3 billion in 2013 and more than 802,000 California jobs are supported by exports. 

Last week, the Department of Commerce announced that 2014 was another record year for export growth. The U.S. exported $2.35 trillion of goods and service last year. Today, exports support 11 million jobs in the U.S. and pay up to 18 percent more than jobs not related to exports. 

Yet with 95 percent of the world’s consumers living outside U.S. borders, the prosperity of American businesses and workers is directly tied to their ability to reach new markets and new customers. That is why President Obama has made increased trade a key focus on his plan to create sustainable economic growth for American workers, and is pushing for trade promotion legislation as well as the completion of new, high-standard trade agreements that uphold our values and open new markets to American goods and services– including the Trans-Pacific Partnership.