By: Linda Conlin

On Thursday, November 5th, Mayor Nutter joined the World Trade Center of Greater Philadelphia (WTCGP) and the Export-Import Bank of the United States (Ex-Im) in signing an agreement to increase financing for small and medium-sized exporters in the Greater Philadelphia region.  Specifically, the WTCGP, City of Philadelphia, and Ex-Im will collaborate as “City/State Partners,” working with the region’s leading banks (PNC, TD Bank, UPS/UPS Capital, and Wells Fargo) in organizing a series of export finance workshops that will provide area exporters with the financial tools they need to win and expand international sales.  This partnership enables both the WTCGP and the City of Philadelphia to support their mutual goals of helping area businesses succeed in international markets, while positioning the City and the Greater Philadelphia Region as a key global player.

(Linda Conlin, Mayor Nutter, and John Richter signing the agreement)

Business takes place in a global economy; however, an inability to access credit and to reduce the risk associated with many countries, prevents many companies from tapping into promising markets. Today’s tight credit markets add to the challenges many small and medium-sized businesses face in expanding their global business.   Through these workshops, area companies will gain practical solutions to these challenges from a team of experts from Ex-Im Bank, who will be joined by local lenders experienced in export finance as well as companies who have successfully tapped export finance to enter a global market with confidence or increase sales in an existing one.

Full disclosure.  I am the former Vice Chair of the Ex-Im Bank of the United States.  You would expect me to be a fan of this U.S. government agency which serves as the nation’s official export credit agency, and whose mission is to finance U.S. exports, principally in emerging markets, through loans, loan guarantees and export credit insurance.  With U.S. government backing, lending institutions are more willing to extend financing - at competitive terms -to U.S. exporters.  It may come as no surprise that, with the severe contraction in credit markets this past year, Ex-Im recorded its highest level of financing in its 75-year history, extending some $21 billion in support of U.S. exports.   This included a record $4.36 billion for small business exports – a priority for the Bank.  In the past five years, Ex-Im helped some 223 Pennsylvania firms finance over $3 billion in exports.

This is good news for Pennsylvania firms eager to expand their international business, companies like AquaTech International Group, a water and wastewater treatment company from Canonsburg, Pennsylvania.  AquaTech received a working capital loan from PNC Bank, guaranteed by Ex-Im Bank, which allowed the company to expand exports to markets in Asia, the Middle East and Latin America.  According to Venkee Sharma, President and CEO,  “Ex-Im Bank’s working capital guarantee financing has helped us to be more competitive.  Being able to strike a balance of domestic and export business has enabled us to support our clients worldwide and remain a growing company.” 

What kind of export financing is available?  If you are an exporter interested in expanding in an existing market or entering a new one, export credit insurance minimizes the risk of buyer non-payment and enables you to extend credit terms to customers at competitive rates leading to increased sales with both new and existing customers.  Ex-Im will also guarantee working capital loans offered by lenders to enable exporters to fulfill export sales orders through purchase of inventory and payment for labor or overhead. Lenders may also use Ex-Im Bank’s guarantee for medium and long-term buyer financing, of particular importance in emerging markets where banks are unwilling to lend without Ex-Im support or credit within a country is unavailable or prohibitively expensive. 

We are very proud of our new partnership with the City of Philadelphia, Ex-Im Bank and the region’s leading lending institutions.  Our new export finance program demonstrates our continued commitment to innovate and provide member and other companies with the business strategies and financial solutions to support their global success.

To register for the December 3rd, Export Finance Workshop, register at www.wtcphila.org or contact Emily Olson at 215-586-4240 x124, eolson@wtcphila.org. 

Kirk Unveils New USTR Initiative on Small- and Medium-Sized Businesses

Washington, D.C. - On October 5th U.S. Trade Representative Ron Kirk unveiled the first steps in a new initiative aimed at increasing exports by small- and medium-sized firms in the United States.  Citing trade as a major tool for the country's economic recovery, Kirk said that USTR's new effort to bolster trade opportunities for small- and medium-sized businesses can ultimately grow jobs here at home as companies sell more goods and services worldwide.

Kirk announced that USTR is requesting an investigation by the International Trade Commission to better understand how many of America's small- and medium-sized enterprises export now, their role in generating employment and economic activity in the U.S., and how increased trading opportunities might benefit these businesses and their workers.  At the same time, Kirk is convening a USTR-wide working group to ensure that the lead trade agency's policymaking and enforcement efforts immediately seek to better serve small- and medium-sized enterprises.

"USTR is sharpening its focus on small- and medium-sized American businesses to craft new trade policies and enforce existing ones in ways that will help these firms grow exports around the world, and grow jobs here at home," Kirk said.  "This Administration has promised a trade agenda that is more responsible and more responsive to the needs of American workers, families, and businesses.  Small- and medium-sized enterprises are at the heart of employment and job creation here in the United States, and so a heightened focus on helping this sector is the right thing for USTR to do.  American companies of all sizes must export their goods and services to get our economy growing again."

The USTR effort will focus on identifying and increasing opportunities for small- and medium-sized businesses to export both goods and services.  Services, in particular, account for 80 percent of U.S. jobs.  The ITC investigation will be of exceptional value with regard to examining and enhancing services exports, as traditional U.S. government statistics do not report services trade by firm size.

Kirk said that the ITC investigation and the USTR working group are just the beginning; USTR will also work in conjunction with agencies tasked with trade promotion - such as the U.S. Department of Commerce and the Small Business Administration - that have complementary programs on export expansion in small- and medium-sized firms.   USTR will seek to set priorities for new trade agreements and for the implementation of existing trade agreements that are more responsive to the needs of these businesses and their workers, so that export promotion programs at other agencies have a better chance to succeed.   Kirk said that announcements of further steps in USTR's initiative on small- and medium-sized businesses will be made in the coming months.

Source: Office of the US Trade Representative, October 5, 2009.

Freight Transportation Climbed in August

After the largest decline in 10 years, the Transportation Services Index (TSI) increased 0.7 percent in August. 

Freight transportation was on the upswing through the summer, as indicated by the U.S. Department of Transportation’s closely watched Transportation Services Index.

The TSI increased 0.7 percent in August, the fourth consecutive month without a decline after dropping in nine of the previous 12 months, the Bureau of Transportation Statistics reported Thursday. The 4.2 percent decline in the first eight months of 2009 was the largest in the last decade, exceeding the 4 percent decline for the first eight months of 2000.

The August increase was mild compared with July’s 1.6 percent jump, but it completes the first four month period without a decline in the index since 2002. June was flat; in May, the index rose 0.5 percent.

“The continued rise of the freight transportation service index is evidence that America is moving towards economic recovery. The impact of the American Recovery and Reinvestment Act and other actions taken by this Administration are only beginning to be felt around the nation, but economic data like this should give us hope that our worst days are behind us,” said Transportation Secretary Ray LaHood. “However, there is still a long road ahead and we will not let this positive sign lull us into complacency. This Administration remains committed to investing in transportation in order to insure a prosperous future.”

The Freight TSI measures the month-to-month changes in freight shipments of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.

The August Freight TSI of 96.2 is a 2.7 percent increase from the recent low of 93.6 reached in April. In April, the index was at its lowest level since June 1997.

The Freight TSI is down 14.8 percent from its historic peak of 112.9 reached in May 2006.

The August Freight TSI of 96.2 is the lowest for August since August 1997 when it was 94.4. The 10.9 percent decline in the Freight TSI from August 2008 to August 2009 was the largest August-to-August decline in the 20 years for which the TSI is calculated.

Source: The Journal of Commerce, October 27, 2009

U.S. Secretary of Commerce Gary Locke and U.S. Trade Representative Ron Kirk Witness the Signing of Commercial Agreement during China Visit 

Hangzhou, China - U.S. Commerce Secretary Gary Locke and U.S Trade Representative Ron Kirk presided over the signing of a business agreement between U.S. and Chinese firms in Hangzhou, China on October 28, 2009. The U.S. company, Harsco Corporation, based in Harrisburg, Pennsylvania, signed a construction service joint venture agreement with a Chinese partner, Zhejiang Construction Materials and Equipment Company to provide construction services for transportation infrastructure, chemical and petrochemical projects, and civilian nuclear reactor facilities.

"Commercial engagement, built on open markets with fair and effective rules, is the foundation of the healthy, strong and continually growing trade relationship we envision for China and the United States," Locke said. "With this partnership, Harsco is doing its part to ensure a growing share of China's construction occurs with safer, lighter and more environmentally-friendly scaffolding and formwork materials. This project will help retain and create jobs in the U.S. by providing more export opportunities - and it will bring crucial new technology and know-how to China.

"The Harsco joint venture will help to keep the economy strong back home in Harrisburg, Pennsylvania," said Ambassador Ron Kirk. "This agreement will help to create new jobs for American workers and open up new opportunities for this American-based business. That is why USTR is working with the Chinese government to open up more opportunities for American companies like Harsco to do business in China."

Joining Secretary Locke and Trade Representative Kirk in the ceremony were Zhejiang Province Vice Governor Chen Jiayuan, Director General for American and Oceanic Affairs of the Chinese Ministry of Commerce He Ning, and Director General of the Zhejiang Provincial Government Construction Commission Zhang Miaogen.

Harsco Corporation is a diversified industrial services company serving global industries, including infrastructure, metals, railways and energy. Active in the Chinese market for over 20 years, Harsco conducts over $100 million of business per year in China as part of its overall annual business revenues of $4 billion. Zhejiang Construction is the largest construction company in Zhejiang and ranks as one of the top 10 construction companies in China.

The signing event highlights the growing cooperation between U.S. and Chinese firms in the construction sector and showcases export opportunities for U.S. businesses in China.

Source: Office of the US Trade Representative, October 28, 2009.

Philadelphia International Medicine (PIM)

Location: Philadelphia, PA

Founded: 1998

Number of Employees:5 Direct and 8 Hospital Liaisons

 Philadelphia International Medicine (PIM) helps international patients receive quality medical care from one of the eight Greater Philadelphia hospitals or medical centers in the PIM network.  Several top-rate medical care providers are available across the PIM network, making the Greater Philadelphia region a destination for international patients desiring top-rate care.  PIM does not stop at creating its awareness in international markets but also helps optimize the quality service of its network. 

PIM provides personalized care to international patients by assigning a care manager to each patient.  The care manager assists in securing hotels, medical appointments, and interpreters among other services.  In short, the care managers help patients receive their care with minimal worry of navigating a culture and geographic area with which they may be unfamiliar.  PIM provides consulting services and continuing medical education which, in part, is supported by the Health Gateway Program.  This program shares information and technical skills with hospitals throughout several countries.  These partnerships provide access to knowledge and expertise across a wide range of specialties that help PIM enhance the abilities of its network to deliver quality care. 

Personalized care and an ever-improving knowledge base differentiate PIM but the company still faces challenges.  The current global recession has meant that less self-paid patients can afford to come and receive the care they hope for from Greater Philadelphia providers.  In response, PIM has provided more personal contact and support to potential patients to ease the process of choosing care within the PIM network.  This personal care is continued by the care managers throughout treatment.  Likewise, after 9/11, prospective international patients had troubles securing visas to visit the US.  In response, PIM cooperated with the State Department to amend laws to better serve patients without jeopardizing national security. 

PIM stays competitive with help from the World Trade Center of Greater Philadelphia, which alerts the company to regulatory changes and helps identify new markets.  A connection facilitated by the WTCGP in June, 2009 between the Ambassador of Bahrain and PIM has resulted in the company’s entrance into the Bahrainian market and a $400,000 profit.  PIM has also participated in WTCGP trade missions to new markets.  The WTCGP provided market research, country profiles, helped establish relationships with state commerce departments, and introductions to key stakeholders in those markets.  Overall, PIM has regarded the trade missions as “first-class” and an excellent resource for entering a new market. 

After 10 years of operation, PIM maintains and continues to grow its presence internationally. 

WTCGP Hosts Delegation from Barranquilla, Colombia

The World Trade Center of Greater Philadelphia (WTCGP) and the Greater Philadelphia Hispanic Chamber of Commerce (GPHCC) co-hosted a visiting dignitary from Barranquilla, Colombia on Monday, September 28th.  The delegation’s objective was to evaluate business opportunities for a potential trade delegation of over twenty companies to visit the Philadelphia region in early 2010.

The delegate, Tatyana Orozco, is the Executive Director of ProBarranquilla, a non-profit organization which promotes investment in the city of Barranquilla and the Colombian Atlántico Department. With the intention of promoting business process outsourcing in Colombia, Ms. Orozco presented on the many opportunities Barranquilla offers, including its expanding port.

The morning began with opening remarks from Andrea Townrow, Manager of Business Development at the WTCGP and Varsovia Fernandez, President and CEO of the GPHCC. Karen Randal, Director of Business Attraction of Select Greater Philadelphia followed with a presentation on the benefits of doing business in Philadelphia. Renowned Colombian-born architect Richard Olaya, President of the architectural firm Olaya Studios, then spoke on his experience and success in doing business with a rendering company based in Bogotá.

Ms. Orozco’s presentation began soon after, and culminated with an exchange of letter from the Mayor of Barranquilla, and a model Liberty Bell from the Mayor of Philadelphia, presented by Mr. Kevin Dow, Deputy Commerce Director of Neighborhood and Business Services and Acting Chief Operating Officer of the Commerce Department of the City of Philadelphia. Mr. Dow spoke of the excitement the city of Philadelphia and its Mayor had over the possibility of further trade and relations with Barranquilla and Colombia.

After lunch, various WTCGP member companies and local government organization representatives engaged in one-on-one meetings with Ms. Orozco in order to discuss potential business opportunities in the future.

The World Trade Center of Greater Philadelphia is pleased to announce the addition of Joshua Dillard as the Manger of Market Research.  Joshua graduated from The Pennsylvania State University with a BS in Hospitality Management and recently completed his MBA in International Business at Drexel University’s LeBow College of Business. 

Before joining the WTCGP staff, Joshua joined the WTCGP on an Export for Scholars trade mission in March, 2009 to Malaysia and Hong Kong.  Joshua’s professional experience includes extensive work in market research and hospitality management, including management of a 2,000 member country club.  Joshua will be using his broad knowledge of guest/client interaction as a foundation to develop the WTCGP’s market research capability and will be heading the development of a new online resource for training on international trade. 

Outside of work, Joshua holds a board position for the Philadelphia area YMCA Education Technology Center.  Welcome Joshua!

India’s Infrastructure: Coping with Increasing Pressure

November 19, 2009

India’s population, at 1.16 billion and growing, represents over 15% of the total world’s inhabitants.  Squeezed into just 2.4% of the world’s land area, it ranks among the highest population densities on earth.  As a rapidly growing market, India must modernize its infrastructure to maintain economic growth.  Join us for a seminar that addresses these challenges and the opportunities they present for doing business in India.  

Our expert speakers include:

• Diane Farrell, Member - Board of Directors, Export-Import Bank of the United States
• Anton Germishuizen, Principal, Member - Board of Directors, Burt, Hill
• Ron Somers, President, The US-India Business Council
• Vatsal Bhatt, Energy Analyst, Brookhaven National Laboratory

Also to be discussed is the US Department of Energy initiative to pair US cities with cities in India and China, in order to share technologies and knowledge on energy and the environment.  Philadelphia will potentially be paired with Surat, India, which would be the first US-India Solar City Partnership. 

Register online at www.wtcphila.org or contact Emily Olson at 215-586-4240 x124, eolson@wtcphila.org.  

Export Finance Workshop

December 3, 2009

This is the first of three half-day workshops designed for small and medium-sized exporters.  Participants will learn about programs that can help their company compete in the global economy.  Join the World Trade Center of Greater Philadelphia and experts from the Export-Import Bank of the United States to learn how to:

• Enter new foreign markets by reducing the risk of nonpayment
• Increase sales in your existing markets and gain a competitive advantage by offering credit to your buyers/distributors
• Improve your cash flow with working capital financing

Don’t miss this opportunity to hear from representatives:

• John A. McAdams, Senior Vice President, Export Finance
• John M. Richter, Senior Vice President, Small Business
• Kevin M. Taylor, Director, Business Credit
• Thomas P. Cummings, Regional Director Northeast & Mid-Atlantic Regions

Register online at www.wtcphila.org or contact Emily Olson at 215-586-4240 x124, eolson@wtcphila.org.  

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 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 2nd largest trading partner for the US, behind Canada; ranked 4th 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.  

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

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

March 6-13, 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.

Become a Member...

November 19, 2009 -
India's Infrastructure: Coping with Increasing Pressure

December 3, 2009 -
Export Finance Workshop

More Events...

Ambassador Level

Pennoni Associates Inc. 

Corporate Level

Custom Chill, Inc. 

Lasko Products, Inc

LCR Electronics, Inc. 

Metal Edge International, Inc. 

Panitch Schwarze Belisario & Nadel

Securitas Global Risk Solutions, LLC

The Harman Group, Inc. 

Timothy Haas and Associates, Inc.