Accessing Capital in Today’s Tight Credit Markets was the focus of the finance workshop hosted December 3rd by the World Trade Center of Greater Philadelphia (WTCGP) and the Export-Import Bank (EX-IM) of the United States.   A capacity turnout of over 100 companies registered for the workshop to learn about programs that can help win and expand international sales.  The workshop is part of a broad export finance initiative, supported by a partnership recently launched between the WTCGP, the City of Philadelphia, and Ex-Im to provide small and medium size exporters in the Greater Philadelphia area with access to Ex-Im Bank supported financing to increase their presence in the global market.

Thomas Cummings, Regional Director, Export-Import Bank; Linda Conlin, President, WTCGP; John Richter, Sr. Vice President, Export-Import Bank; and Dino Ramos, Chief Operations Officer, WTCGP

John A. McAdams, Ex-Im Senior Vice President for Export Finance, joined other senior officials from the Bank and the region’s leading banks, who were also major sponsors of the event, in discussing how individual companies have successfully used programs such as working capital, export credit insurance, and medium and long-term buyer financing.  PNC, RBS, TD Bank, UPS Capital, and Wells Fargo serve as delegated authority lenders for the Ex-Im Bank and knowledgeable, frequent users of the Ex-Im program. 

These banks have assisted companies such as R&M International of Fort Washington, PA , get a working capital loan with a collateral requirement that was financially feasible.   SB Global Foods of Lansdale, PA, utilized Ex-Im’s export credit insurance to insure buyer payments, thus allowing the company to provide competitive open account terms of up to 90-days.  Another example featured an engineering firm who won a major  services contract for a large geothermal project in Turkey, by offering the project developer attractive $4.8M, 15-year financing, backed by an Ex-Im guarantee.

The workshop also received key support from Drexel University’s LeBow College of Business,  White and Williams, Securitas, and Federal, State, and other partners.

The next workshop  will be held on April 15 at Penn State Great Valley in Malvern. For more information, please contact Dino Ramos, Chief Operating Officer, WTCGP at dramos@wtcphila.org. 

Commerce Secretary Outlines Strategies for Increasing Exports

Washington, DC - In a Nov. 4th speech to the National District Export Council Conference, Commerce Secretary Gary Locke outlined the following five strategies for increasing U.S. exports.

Boosting Trade Promotion Activities. “Less than one percent of America’s 30 million companies export—a percentage that is significantly lower than all other developed countries,” Locke said. “And of U.S. companies that do export, 58 percent export to only one country.” The DOC will therefore work to get more companies engaged with its commercial service corps, which includes a trade promotion office staffed with some 1,500 people in 77 countries. 

Business Visa Reform. “The United States often makes it too difficult for foreign company executives to enter here to do business—a shortcoming that has had a tangible cost for American businesses by shutting out some of their best customers,” Locke asserted. While there has been “tentative progress” on improving this situation, Locke said he has created a “departmental task force that will keep national security paramount while working to further improve the business visa process.”

Export Controls. “Our current export control system was designed in the 1950s,” Locke said, but today “our global economy is far larger and more integrated, and nations’ economic and security interests are more nuanced.” As a result, U.S. companies are being “shut out of promising markets and promising partnerships with foreign companies” because “the undeniable appeal of U.S. technology is often outweighed by the time and effort foreign companies must endure to obtain it.” 

In response, Locke has directed the Bureau of Industry and Security to immediately explore two reforms: eliminating dual-use export license requirements for allies and partner nations, and implementing a fast-track procedure for the review of dual-use export licenses for other countries that do not pose a significant proliferation concern. These two reforms could affect more than half of the 20,000 licenses DOC issues each year. In addition, Locke said, “we need to reallocate resources to focus more targeted controls on highly sensitive items—and to reduce controls elsewhere where they serve no useful security purpose and make no sense.” He suggested that more details on these types of changes may be provided in the coming months.

IPR Enforcement. “The current system for protecting U.S. intellectual property—both domestically and internationally—is fraying at the seams,” Locke warned, with U.S. companies in the energy, technology, entertainment, pharmaceuticals and other industries losing between $200-$250 billion a year to counterfeiting and piracy. While DOC can take steps to improve the United States’ IP regime, from reforming the patent office to helping shape upcoming legislation, “our efforts need to begin with better enforcement.” The department’s Trade Agreements Compliance Program “will play an important role in this monitoring and enforcement work.”

Other Efforts. “There is one final step that must be taken in order to increase the amount of goods and services that America sends to foreign markets: We need to use every lever of the U.S. government to promote our exports,” Locke said. “Whether that involves our State Department writing a letter on behalf of an American company that wants to do business in Russia, or our Department of Energy helping to facilitate renewable energy partnerships between U.S. companies and the Chinese government, every federal department has a role to play in promoting American business.”

Source: Sandler, Travis and Rosenberg, P.A., November 6, 2009

Exports Likely to Drive Regional Recovery

For the first time since World War II, the United States is not leading the global economy out of recession. Instead, China and India are pacing the recovery.

That means the U.S. companies and various regions able to export goods and services into faster-growing overseas markets will have the best chances of adding jobs during the painfully slow recovery expected in the United States.

How does the Philadelphia region - where the percentage of private-sector workers in manufacturing has fallen to 8.5 percent in August from 16.1 percent in 1990 - stack up?

In 2007, the most recent full year of data, goods exports accounted for 6.4 percent of economic activity in the 11-county Philadelphia region, including New Castle County, Del., and Cecil County, Md.

That is well below the national figure of 11.8 percent for the same year, according to data from Moody's Economy.com.

"This data would suggest that Philadelphia's economy benefits from stronger exports, but not nearly as much as the rest of the nation," said Mark Zandi, chief economist at the West Chester economic-forecasting firm.

Zandi cautioned, however, that the available metropolitan-area data understate the importance of exports to the Philadelphia region, which sends a significant amount of software, educational services, and health care overseas. That is because the data do not include such services.

For example, the goods data do not count the efforts of Philadelphia International Medicine, a cooperative of six hospitals, to bring international patients here and provide consulting overseas.

The group's business is picking up, said chief executive officer Leonard Karp. Last week, it signed a consulting contract with an Indian outfit and received a verbal commitment for a week of hospital-management training from a Brazilian customer. "It's a sign of a thaw. We hadn't had anything for quite a while," Karp said.

But it is not just the faster pace of recovery in Asia and South America that gives local companies a reasonable hope for growth. The dollar's weakness relative to other currencies, such as the euro, makes U.S. companies more competitive overseas.

"Most of the companies we call on are sort of bullish and encouraged that they find themselves in a more competitive position," said Mike Schmittlein, a managing director with Wells Fargo Global Banking & Trade Solutions. Philadelphia-based Schmittlein, who oversees five trade-finance offices on the East Coast, said the unit had hired personnel in anticipation of export growth.

Historically, chemicals, including pharmaceuticals, have been the biggest export from the Philadelphia region, according to government data, but Schmittlein said he had seen growth in companies supplying the fast-growing Asian infrastructure market.

Kingsbury Inc., a Northeast Philadelphia bearing manufacturer, is working on a part - ordered before the massive economic slump - for water pumps that will be used in nuclear power plants in China, chief executive William R. Strecker said.

The 97-year-old company, which employs 265, including 115 in Philadelphia, and is investing millions in its plant here, has for years exported 45 percent to 50 percent of what it manufactures, but Strecker said growth would come from exports. "There's not much left in the states," he said, referring to the equipment-makers to whom Kingsbury sells.

In Phoenixville, VideoRay L.L.C., which makes a small underwater robot, already gets half its $7 million in revenue from overseas and expects it to increase to 60 percent next year, when sales are projected at $10 million, said Chris Gibson, VideoRay's director of sales and marketing. That will lead the company to add marketing and support jobs to its 25-person workforce.

For the manufacturing of specialized components, VideoRay, which has seen strong demand from the Chinese hydroelectric industry, plans to use local firms. "The companies we're working with now are in Coatesville and Lancaster, and we're looking for more," Gibson said.

Source: The Philadelphia Inquirer, by staff writer Harold Brubaker, November 15, 2009; reprinted with permission of The Philadelphia Inquirer

BDP International Wins President’s E Star Award

U.S. Commerce Secretary Gary Locke (center) presented the award to H. Timothy Bolte, BDP Vice President (left) and Michael Ford, BDP Vice President of Regulatory Compliance and Quality (right)

Philadelphia, PA - BDP International (a WTCGP Corporate Member) has won the prestigious 2009 President’s "E Star" Award for Export Service.   

Twenty-one companies that excel at exporting were honored by U.S. Commerce Secretary Gary Locke on Nov. 5 as recipients of the Presidential "E" and "E Star" Awards during a ceremony at the National District Export Council Conference. The awards are the highest U.S. government recognition any domestic entity may receive for supporting export activity.  

Philadelphia-based BDP is one of only four companies in the U.S. to receive the "E Star" award this year, and one of only two in the category of export service.   

"BDP International has demonstrated a sustained commitment to export expansion," Commerce Secretary Gary Locke said in presenting the award. "Your increase in export servicing sales, from $18.1 million in 2005 to $35.4 million in 2008, is impressive. Your company’s expansion to 23 U.S. facilities and operations centers in 120 countries is a reflection of your superior customer service. BDP International’s achievements undoubtedly have contributed to national export expansion efforts that support the U.S. economy and create American jobs." 

The award was accepted by H. Timothy Bolte, BDP Vice President, and Michael Ford, Vice President of Regulatory Compliance and Quality.   

This is the second time that BDP has won an export award from the U.S. Department of Commerce. In 1997, BDP was awarded the President's "E" Award for excellence in exporting, the highest U.S. award for American exporters.  The "E Star" award is given for continued efforts to improve U.S. export service. Only winners of the "E" Award can compete for the "E Star" award.  

BDP International is one of the leading privately held freight logistics/transportation management firms based in the United States.  It operates freight logistics centers in more than 20 cities throughout North America and a network of subsidiaries, joint ventures, and strategic partnerships in 121 countries.  

BDP was lauded for its dedication to research and education in the industry, including initiatives to assist export clients in logistics and operational matters. In April 2006, BDP surveyed shippers to determine their understanding of non-vessel operating common carrier confidential service agreements.  In May 2007, BDP in conjunction with St. Joseph`s University surveyed multi-national companies in the chemical, consumer goods, industrial and retail sectors regarding global supply chains.  

"We are unaware of any company that provides more market guidance and current trade information to all of their stakeholders than BDP International," said BDP CEO Rich Bolte. "This award is a validation that our collaborative approach to global logistics have not only helped our clients but also contributed to U.S. export expansion."  

BDP has also established offices and warehouse facilities throughout the commercial world. This expansion gives clients access to on-site local distribution experts who are bilingual, knowledgeable about the market and available to accompany and advise BDP clients in negotiations with local industry. 

Source: BDP International through Business Wire, November 5, 2009

PRPA Celebrates the Arrival of First Call for new MSC North Europe Service

PRPA Executive Director Bob Blackburn presents a platter to the captain of the MSC Natalia commemorating the First Call of the ship, and the new North Europe service, to the PRPA’s Packer Avenue Marine Terminal.

On November 1, 2009, PRPA and Greenwich Terminals, LLC, celebrated the arrival of the MSC Natalia, the first ship call of the new MSC North Europe service.

This important container service gives PRPA a direct, weekly connection with the key north European ports of Bremerhaven (Germany), Felixstowe (UK), Antwerp (Belgium), and LeHavre (France).  The Mediterranean Shipping Company (MSC) service will call at the Port’s Packer Avenue Marine Terminal. 

PRPA Deputy Executive Director Bob Blackburn stated, “We are pleased that this new service gives exporters and importers in Pennsylvania, and throughout the Eastern USA and Canada, direct access to the European marketplace.”   

The Natalia can handle just shy of 3,000 twenty-foot equivalent units, or almost 1,500 standard tractor trailer loads.  The ship has a gross tonnage of 40,177 lbs. and capacity for refrigerated containers. 

White and Williams LLP

Location: Headquartered in Philadelphia, PA

Date Founded: 1899

# Employees: Over 230 Attorneys in Ten Offices

Website: http://www.whiteandwilliams.com

 A leading law firm in Philadelphia, White and Williams LLP has over a century of history in litigation and the facilitation of business transactions.  The firm long ago recognized the need for an international perspective, particularly as clients expanded into foreign markets and needed a whole new array of legal services.  White and Williams, itself, expanded accordingly and is now active in major U.S. markets and in several key international markets. 

White and Williams LLP is deeply involved in the Chinese market, with over ten years of experience and an affiliate office in Shanghai.  Clients include both U.S. companies active abroad and foreign companies with interests in the U.S..  Recent accomplishments include representing U.S. companies in China, three successful trials in China, the formation of several joint ventures and strategic alliances, and acquisition activity.

The firm’s practice in China has been enhanced by its participation in the World Trade Center of Greater Philadelphia’s CEO’s China Operations Club, a select group of executives from Philadelphia-area companies having operations in China.  White and Williams has benefited from the club by gaining and sharing first-hand experiences with other business peers. With 30 corporate members, the group provides a unique opportunity to leverage shared experiences of doing business in China.

“When you look at the executives assembled for the CEO’s China Operations Club,” said Gary Biehn, Chair of the firm’s Business Department, “you see cutting-edge experts with a wealth of experience doing business in China.  This is an excellent resource for White and Williams and our clients.”  In 2007, White and Williams became a Leadership Council member of the WTCGP and the principal sponsor of this award-winning program.

The firm cites tangible value from its CEO China Operations Club participation and WTCGP membership.  As one example, the club’s various presentations on the implications of culture had practical application with one private equity dispute in China.  Chinese laws reflect society’s priorities and culture; just as American laws do.  Knowledge of the Chinese culture led to a better understanding of the law construct and helped the firm express the American position within the context of the Chinese culture, resolving the conflict in favor of White and Williams’ client. 

A strong understanding of culture and law is critical to any international business venture and White and Williams has recognized the WTCGP as top-rate for its consulting services and trade missions, both of which improve knowledge and expand networks for the firm.  In addition, WTCGP membership and affiliation with the World Trade Centers Association, with its internationally established reputation, has added to the firm’s international presence and notoriety.

India’s Infrastructure:  Coping with Increasing Pressure

The World Trade Center of Greater Philadelphia and Temple University CIBER launched the “India Exchange Network” with a seminar titled "India's Infrastructure: Coping with Increasing Pressure." The India Exchange Network is a forum for companies to engage in roundtable discussion and exchange best practices for doing business in India.  The group will meet quarterly during 2010 to and then go on a Trade Mission to India in December 2010.  The focus of these meetings is on infrastructure, the environment and renewable energy but is open to all companies interested in increasing their knowledge of doing business with India.

The Nov. 19th seminar included such prominent speakers as Diane Farrell, Member, Board of Directors, Export-Import Bank of the United States.  Ms. Farrell helped develop and foster Indian financial institution participation in the Bank’s $2.45 billion India Infrastructure Facility, and provided valuable insight into the export opportunities for Philadelphia area companies.  Robert Pietrala, Vice President, spoke about the success Aquatech International Corporation’s subsidiary has had in the Indian market.  Anton Germishuizen, Principal, Burt, Hill provided an overview of infrastructure development in India and the architectural and engineering projects their subsidiary in India is working on.

For information on how to join the India Exchange Network please contact Andrea Townrow at atownrow@wtcphila.org or 215-586-4242. 

The World Trade Center of Greater Philadelphia is proud to announce the addition of Leadership Council members PNC Bank, the Royal Bank of Scotland, TD Bank, UPS, and Wells Fargo.  These firms join White and Williams LLP and the LeBow College of Business of Drexel University in supporting the WTCGP in providing top-rate programs and events to educate and network participants. 

Preparing for the Rebound: Strategies for Success in Global Markets

February 3, 2010

The 7th Annual Global Business Conference, "Preparing for the Rebound: Strategies for Success in Global Markets" will feature regional focuses on the new global order and case studies of companies that are successfully prospering despite the challenging financial situation. In cooperation with LeBow College of Business, the conference will be at Drexel University, Behrakis Grand Hall in the Creese Student Union Complex, 3210 Chestnut Street; Philadelphia, PA 19104. 

Save the date for the

2nd India Exchange Network Event

February 18, 2010

Trade Mission to Shanghai and Beijing, China

March 13-22, 2010

The World Trade Center of Greater Philadelphia (WTCGP) will lead a business development mission to Shanghai and Beijing in conjunction with Drexel University's LeBow College of Business.

In 2008, US exports to China increased by 9.5% and total US-China trade grew to 409.2 billion USD.  China is the second largest trading partner for the US, behind Canada; ranked fourth for exports from Pennsylvania, and 10th for exports from New Jersey.  This Trade Mission to Shanghai and Beijing, both diverse hubs for both culture and business, will be a dynamic opportunity to explore the options of exporting, sourcing, and FDI in this prosperous market. 

Participants will receive:

• Free market research from Drexel LeBow MBA college students.
• Pre-arranged one-on-one business appointments with prospective business partners based on your criteria (minimum of 3 per country).
• Detailed information on prospective business partners.
• Identification of hotels, interpreters and drivers.

For more information, contact Andrea Townrow at 215-586-4242, atownrow@wtcphila.org.  

Philadelphia International Sustainability Conference

Leading Change: Sustainability and the Future of Business, Technology, Policy, and the Environment in China and the US

December 15, 2009

Climate change, economic development, and energy security are the defining issues of our time, and enlightened government officials, business leaders, and consumers across the world are striving to address them. More than ever before, corporations play a key role in the development of the green economy and will continue to do so. However, for any of these efforts to be successful, China and the US must cooperate in the rapid, large-scale implementation of the best sustainability practices. To this end, the City of Philadelphia, the World Trade Center of Greater Philadelphia, the Academy of Natural Sciences and the Philadelphia International Sustainability Association of Business Students are hosting the Philadelphia International Sustainability Conference, “Leading Change: Sustainability and the Future of Business, Technology, Policy, and the Environment in China and the US,” on 12/15/09.

The conference will showcase cutting-edge Chinese and American sustainability efforts, featuring experts from the City of Hebi and Henan Province, China and the City of Philadelphia. Henan is leading China’s charge for a “cyclical economy” on the provincial level, and Hebi (in Henan) was one the first Chinese cities chosen as a model for the development of sustainable practices as part of a national pilot program. Likewise, Philadelphia’s Greenworks program is among the most ambitious U.S. urban sustainability efforts and is proving to be a model for other American cities. In addition to the Chinese and City of Philadelphia experts, pioneering business and non-profit leaders from the Philadelphia area will discuss their innovative green projects. The Philadelphia International Sustainability Conference will provide a forum for the fruitful exchange of ideas to help meet the economic and environmental challenges of the 21st century.

December 8-11, 2009, Mumbai and Bengaluru, India

March 1-9, 2010, Melbourne and Sydney, Australia and Auckland, New Zealand

March 13-22 , 2010, Shanghai and Beijing, China

May 31-June 4, 2010, Poland and Russia

November 18-21, 2009, MEDICA-Dusseldorf, Germany (Healthcare and Sciences)

January 25-28, 2010, Arab Health-Dubai, UAE (Healthcare and Sciences)

April 15-18, 2010, Expomin-Chile (Mining)

Start enjoying the benefits of WTCGP membership today.

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February 3, 2010 -
"Preparing for the Rebound: Strategies for Success in Global Markets"

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