April 3, 2017      wtcutah.com   Facebook Twitter   LinkedIn   Instagram

Helping Utah Companies Think, Act and Succeed Globally

CEO Derek Miller

President's Message
Derek B. Miller, World Trade Center Utah

On Thursday, British Prime Minister Theresa May invoked Article 50 of the Lisbon Treaty, which formally puts into motion the United Kingdom's exit (Brexit) from the European Union. The unprecedented exit may change the rules of the game for trade in the region, but it does not diminish the importance of Utah's trade relationship with the U.K.

In 2016 Utah exported more than $3 billion in goods to the U.K., the state's largest trading partner. To further strengthen these ties and explore business opportunities, WTC Utah will lead a trade mission to London in September 2017. WTC Utah is committed to facilitating opportunities for Utah businesses to continue to sell their products in this important market.

Watch this newsletter and our social media sites for more information about the trade mission and advance registration opportunities.

Happy exporting!

Utah County International Business Forum

Whether you are looking to expand into your first or fifth global market, we hope you will join WTC Utah for the Utah County International Business Forum on May 15. The event runs from 12-2 p.m. We appreciate Nu Skin for hosting the event at its corporate office, 65 West Center Street in Provo.

Expanding your business internationally helps increase your revenue and builds the local economy. Come learn the essentials of exporting and what steps you can take to grow globally. The International Business Forum is hosted by World Trade Center Utah and Nu Skin.

The event is free, but registration is required.Click here to register.

Port Authority: How an inland port might impact Utah's economic future

This article was written by WTC Utah President and CEO Derek Miller and Communications Director Jessica Nield and first published in Utah Business magazine. It is reprinted here with permission.

Utah, once a little-known territory in the mysterious west, is now an economic powerhouse and the envy of many states. This success is a direct result of hard work and visionary leadership.

What is the plan for retaining Utah's title as the No. 1 state for business? One proactive step being taken is exploring the possibility of creating an inland port.

Looking ahead
On Oct. 24, 2016, Utah Gov. Gary R. Herbert stood in front of more than 450 business leaders at the Utah Global Forum and announced the creation of an exploratory committee to assess the development of an inland port in Utah. The announcement came on the heels of a study, commissioned by World Trade Center Utah (WTC Utah) and Zions Bank, produced by the Kem C. Gardner Policy Institute. The study confirmed Utah has the right ingredients for an inland port.

Inland ports are sites located away from traditional land, air and coastal borders that possess strong transportation assets and inland distribution centers. Goods are off-loaded from ships and moved to inland ports for handling and redistribution. An inland port can fulfill many beneficial functions, such as a satellite customs clearance terminal, an intermodal distribution facility and a customs pre-clearance for international trade.

Business leaders have discussed the possibility of developing an inland port in Utah for decades, with some progress made throughout the years. In 1974 the Utah Legislature unanimously passed a bill permitting port authorities throughout the state. Port authorities are governmental or quasi-governmental public authorities formed to operate ports and other transportation infrastructure.

Despite the passage of this legislation in the ‘70s, little progress was made. In 1990 a feasibility study was completed that produced a plan for establishing an inland port authority. A port authority was established, but lacked funds to be fully functional. Leaders decided more research was needed before plans for an inland port moved forward.

The time is right
International trade contributes billions of dollars to Utah's economy and businesses continue to become more globally focused. Utah is now the fourth fastest growing export state in the United States. The time is right to revisit the creation of an inland port in Utah.

The creation of an inland port would elevate Utah's status as a global business destination and incentivize international companies to locate in the state. Utah's centralized location, market access and favorable labor costs are just a few reasons constructing an inland port makes sense.

The market assessment provided by the Kem C. Gardner Policy Institute presented key findings and potential next steps for decision makers. While the Salt Lake metro area is well positioned for an inland port, additional data collection, analysis, public discussion and investment are needed. The Foreign Trade Zone and transportation infrastructure need to be improved, and a governance structure for the port needs to be developed.

This is where the exploratory committee created by Gov. Herbert comes into play. Over the next year the committee, led by WTC Utah and the Utah Governor's Office of Economic Development, will research and evaluate whether an inland port is the right investment for Utah. The committee had its first meeting in January and is already getting the ball rolling, with the first order of business being to secure funding from the state legislature for a feasibility study.

If funded, the feasibility study will be conducted by an outside consultant and will fully explore the opportunities and challenges associated with creating an inland port. The study will answer the questions of how big a port might be, how much it might cost, where it should be located and who would pay for it. The finding and recommendations from the feasibility study would then be discussed with the governor and legislature in October.

Economic impact
In terms of recruiting companies, having an inland port would make Utah an attractive option for major manufacturers looking to expand or relocate. The state is already centrally located, but having the opportunity to process and distribute international goods in Utah would be a game changer.

In Gov. Herbert's remarks at the Utah Global Forum, he referenced that Utah is built on a foundation laid for us by visionary Utahns who came before us. He said, “Maybe the best thing those who went before gave us is their example. We have the responsibility to follow their examples by investing in the future, not just for ourselves, but for our children and grandchildren. We have to lay the groundwork for Utah to be number one not just for today, but for 20 and 50 years into the future. One way we can make that investment and ensure our economic future is through the creation of an inland port.”

The inland port project would take a number of years to develop, but the investment would drive our prosperity in the state for decades. As the exploratory committee meets, that is how each issue will be examined. With a long-term perspective and critical analysis on how it can help the state compete not just nationally, but internationally for years to come.

To view the market assessment produced by the Kem C. Gardner Policy Institute, visit www.wtcutah.com/inland-port-study.

Call for Nominations: WTC Utah to Recognize Northern Utah International Business Leaders

In anticipation of the upcoming Cache Business Summit, World Trade Center Utah (WTC Utah) is requesting nominations for the Champion for International Business Award and for the Vanguard in International Business Award, which will recognize international business leadership in Utah's northern region. A successful candidate for the Vanguard in International Business Award meets the following criteria:

  • Utah-based business headquartered in one of the following counties: Box Elder, Cache or Rich
  • Has successfully exported for at least one year
  • Has potential for increased export activity

A successful candidate for the Champion for International Business Award meets the following criteria:

  • An individual from Box Elder, Cache or Rich County who supports and advocates for businesses expanding into international markets.

Click here or visit www.wtcutah.com/call-for-nominations to nominate an individual or a local business from one of these three counties. Nominations must be submitted by April 7, 2017. Award winners will be announced prior to the summit. The awards will be presented by WTC Utah, in partnership with the Department of Workforce Services, at the Cache Business Summit on April 20 at the Riverwoods Conference Center in Logan.

The goal of the full-day summit is to provide information to attendees that will help them take their companies to new heights. WTC Utah President and CEO Derek B. Miller will provide remarks about how the global economy may change under a Trump administration.

Register Now for the Utah Economic Summit

The 11th annual Utah Economic Summit is your opportunity to get a fresh perspective on Utah's economic growth locally, nationally and globally. Hosted by Gov. Gary Herbert on Friday, April 14 at the Grand America Hotel, the summit will challenge business and community leaders to collaborate and build strategies for growth.

WTC Utah President and CEO Derek Miller will lead a breakout session titled "Expand Your Reach: International Trade and Global Business" at the summit.

Registration is $175, but you can save $25 now by registering with the promo code WTCUPARTNER25 here.

From the startup company to the corporate board room, the opportunities are endless. Summit participants will have opportunities to connect with thought-leaders, experts, innovators, entrepreneurs and other collaborators who are all committed to Utah's success.

Working panels will include:

  • Managing Big Data for High Impact
  • Generational Opportunities: Falcon Hill, Northwest Quadrant and Point of the Mountain
  • Oh, That's Why I Need a Lawyer: Common Legal Mistakes Companies Make
  • Bricks and Bytes: Best Practices in Online Sales
  • Punching Above Our Weight: Utah's Venture Capital Climate
  • From Popcorn to Pickup Trucks: Opportunities in Diversification

For a complete summit schedule or to see the updated list of speakers, sessions and related announcements visit utaheconomicsummit.com.

Toolbox: Understanding Exporting

Tool Tip #1: Take a Good Look in the Mirror

Earlier this year, World Trade Center Utah launched its "10 Tips to Help you Think, Act and Succeed Globally.” Since the launch, we have featured corresponding articles in the export toolbox section of our newsletter. We are pleased to revisit these "10 Tips” and dig deeper into topics that will be important as you pursue international business opportunities.

Our first tip, "Take a Good Look in the Mirror," challenges you to assess your export potential. But before you can assess your potential, you need to know what to look for. So to help in this process, the following article provides a basic understanding of what exporting is and why it's beneficial to your business.

What is Exporting?

Exporting is defined as selling goods or services to customers in or from another country. It is a component of international business that allows you to reach many more customers for your business.

Chances are you have exported even if you believe you haven't. Have you ever sold anything through Amazon or eBay and shipped it outside of the United States? If yes, you are already exporting! Shipping a product or providing a service for a customer outside of the United States is exporting.

While the physical transport of goods and services is what you likely consider exporting to be, Utah is a prime destination for another type of export. Tourism! When foreign visitors spend money in Utah, businesses are providing products and services to customers from another country and thereby inserting foreign dollars into our local economy. The only difference is that these companies don't need to worry about packing and shipping.

Whether you sell goods or services in foreign countries or provide services or products to foreign customers in your own country, you are a player in the export economy.

What are the Benefits of Exporting?

For the Company
Because 95 percent of your customers are outside of the United Sates, exporting your product can provide huge dividends in addition to the benefits of domestic expansion. Some of the benefits of exporting can include:

  • Less competition in a foreign country than your industry has in the U.S.
  • Greater market shares in countries without similar products.
  • Extended lifecycle of your products.
  • Greater consistency in revenue when exporting seasonal products.
  • Ability to weather regional economic instability.
  • Larger profit margins due to foreign currency values.

For the Community
In addition to benefiting your company, you also have the ability to impact your local community and economy. WTC Utah promotes exporting goods and services, while keeping jobs and companies here in Utah. As products and services leave the state, revenue is added to the local economy, thereby driving increased revenue and production, which leads to job creation.

Exporting Fact or Myth?

Only large companies have the resources to export

Myth. Smaller companies are just as capable of exporting as larger companies. In fact, about 98 percent of companies that export in the United States are small- to medium-sized businesses. Even if your company is very limited in resources, public partners like World Trade Center Utah, U.S. Commercial Services, and the State Trade and Export Promotion program can provide you with resources and extra bandwidth to successfully expand internationally. For example, World Trade Center Utah offers a free custom market analysis to help you find the market that has the greatest potential for your specific product.

There are more pieces to the process of exporting internationally

Fact. While exporting internationally does have more components, there are many third-party services that have streamlined these to ease the burden on your company. For example, Amazon, which is the largest e-marketplace in multiple countries, provides an international fulfillment program that can cover the international shipment, customs, delivery, currency transfer and foreign language support for a company's product.

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