Office of International Business Development

Transcription

1 Pennsylvania Department of Community & Economic Development Office of International Business Development What the Commonwealth is doing to Attract Business and Promote Exports in Europe The German American Business Circle of Pittsburgh November 7 th, 2013

2 Pennsylvania Exports PA ranks 10 th among U.S. States in the value of exported goods and services 1 Goods: $38.8 billion Services: $15.3 billion Customers in 221 countries buy PA-grown and PA-made goods and services 1 Top export markets: Canada, China, Mexico, Germany, United Kingdom 2 $29.1 Pennsylvania Export Sales goods, in billions 2 $34.4 $28.3 $34.8 $41.1 $38.8 PA exports rank in the top 10 among U.S. States in 55 industries st in other transportation equipment, Largest, most comprehensive such as motorcycles, $587 million 1 st in confections, $566 million state-sponsored trade 1 development program in the U.S. 1 Business Roundtable, 2 WISER Trade, July 2013

3 Pennsylvania Exports to Germany in 2011 PA exports = $1.81 billion in 2011 Germany is Pennsylvania s 5th largest export destination Key products Chemicals Primary Metal Manufacturing Computer and Electronic Products Machinery, except Electrical Miscellaneous Manufactured Commodities Electrical Equipment, Appliances, and Components

4 German Exports to the United States in 2011 Total amount = $82.7 billion $3.4 billion passed through Pennsylvania ports Key products Transportation Equipment Chemicals Machinery, except Electrical Computer and Electronic Products Primary Metal Manufacturing Electrical Equipment, Appliances, and Components

5 Top 10 German Companies in Pennsylvania FIRM JOBS MFG/SVC Siemens AG 2000 MFG Bayer AG 1900 MFG SAP AG 1700 SVC B. Braun Melsungen AG 1300 MFG Kloeckner Co. SE 1100 MFG Deutsche Post AG 800 SVC Bayer AG 800 MFG Lanxess AG 750 MFG Beaelsmannse & Co. KG a A 725 MFG Bertelsmann SE & Co. KGaA 650 MFG There are 810 German owned companies providing 39,802 jobs in Pennsylvania

6 Pennsylvania s International Representatives Pennsylvania s economy is the 20 th largest in the world with $578.8 Billion in GDP.

7 Center for Trade Development Pennsylvania Trade Representative Dr. Linda von Delhaes- Guenther Appointed as Pennsylvania s Authorized Trade Representative in Heidelberg, Germany Center for Direct Investment Pennsylvania Investment Representative Mr. Stefan Peikert Appointed as Pennsylvania s Authorized Investment Representative in Munster, Germany 117 active clients 40 Current Active Projects

8 Regional Export Network Partners

9 Free, confidential, personalized service for Pennsylvania businesses interested in exporting their goods or services International Market Intelligence: Data Gathering, Analysis for Market Product Compatibility & Competitiveness; Market Entry Strategy Export Counseling: Strategic, Tactical, Technical Trade Assistance Partner Identification, Qualifications and Introductions: Qualifying and Assessing Leads, Partners, Distributors, Agents, Buyers, Government Officials International Events Assistance: Pre-Show Marketing, Appointment Scheduling, Trip Logistics, for Trade Exhibitions, Missions, In-Bound Buyer Delegations On-The-Ground, In-Country Support: Trip Logistics, Appointment Scheduling, Post-Trip Support & Follow-Up

10 MEDICA 2013 Trade Events in Germany November 20-23, 2013 Düsseldorf, Germany MEDICA is the world s largest international trade show for the medical and healthcare fields. Pennsylvania has exhibited at this event on an annual basis since 1990 and it has proven to be one of CTD s most successful trade shows. Eleven (11) Pennsylvania Companies will exhibit in the PA Booth at MEDICA 2013 Adhezion Biomedical, LLC (Wyomissing) Gentell (Bristol) Blatek Industries, Inc. (State College) InfraScan Inc. (Philadelphia) Brooks Instrument (Hatfield) Lite Tech Inc. (Norristown) Clinton Industries (York) Moberg Research, Inc. (Ambler) CurveBeam (Warrington) NovaProbe Inc. (North Wales) Oakworks Inc. (Shrewsbury) BAUMA 2013 April 15-21, 2013 Munich, Germany BAUMA is the world s largest construction trade fair and is held every 3 years in Munich. Six (6) Pennsylvania exhibited in the PA Booth at BAUMA 2013: Acker Drill Company Inc. (Scranton) Hydra-Tech Pumps, Inc. (Nesquehoning) American Cable Company, Inc. (Philadelphia) Jamestown Coating Technologies (Jamestown) Matterhorn Mining Footwear (Martinsburg) Rajant Corporation (Malvern)

11 Investment Assistance Aiding foreign companies in setting up a US subsidiary Providing information on Pennsylvania s labor force, average wages, business tax structure and more Coordinating site and building searches Assisting in determining financial assistance Networking with potential partners, including: Suppliers Colleges and universities Law firms Accounting firms Banks Real estate professionals Construction and engineering firms Regional economic development experts Assisting with immigration issues Identifying training opportunities

12 PA Investment Highlights Investment Impact ( ) 496 site visits 121 companies 5,357 jobs created $750.5 million in capital investment $152.1 million in tax revenues* *Estimated personal income tax (PIT) generated by direct and indirect jobs from activities FY achievements: 21 successful projects 1,056 jobs created/retained $85.2 million in capital investment

13 OIBD Investment Projects from Germany Company Name Project Type Location # of Jobs Investment Date Completed Tex Visions Expansion Middlesex Township: Cumberland County 16C 44R 6 Million Regupol America aka: Berleburger Schaumstoffwerk GmbH Expansion Lebanon: Lebanon County 80C 44R 17 Million 4-13 Aerzener Maschinenfabrik GmbH Expansion Greater Philadelphia: Philadelphia County 20C 10R 5 Million Hydrotechnik GmbH Attraction Sewickley: Allegheny County Thousand Porsche NA Attraction Lehigh Valley 45 1 million 2011 Bayer Expansion South-central: Lebanon County 70c 511R 46 Million 2-09 Flabeg BmbH & Co. KG Attraction Southern Alleghenies 300C 198R 30 Million 7-08 B. Braun of America, Inc. Expansion Lehigh Valley: Lehigh County Million Conergy AG Attraction Greater Philadelphia: Philadelphia County Million 11-06

14 Total Revenue Generated by World Trade PA 157 : 1 Return on Investment in FY Total Tax Revenue: $261.1 million over 5 years Taxpayer Direct ROI in FY : 16 : 1 $886.6 $870.2 $573.1 $644.3 $695.9 $13.2 $6.7 $6.2 $6.1 $

15 DCED s Guiding Principles in Action at OIBD Performance-Based Contracts 5 performance targets and measures for all contractors Fixed fees plus performance-based compensation Monthly performance reports Public-Private Partnerships International program manager at Team PA International Business Advisory Board (IBAB), since 2012 Increased program funding through private sector support Governor s missions to France, Germany, Brazil, Chile Competition Competitive bids for all international contracts Underperforming contracts will be put out for bid

16 Governor s Business Development Mission to France & Germany In March 2012, Governor Tom Corbett led a delegation of PA business leaders and partners in economic development, tourism and academia on a business development mission to France and Germany. The focus of the mission was to connect PA companies with potential export partners and encouraging international businesses to invest in the commonwealth. Details of the Governor s schedule in Germany: In Stuttgart, Governor Corbett met with representatives of the German software company SAP; attended a meeting hosted by the Stuttgart American Chamber of Commerce and Pennsylvania subsidiary companies located in Germany, including Armstrong World Industries, Glatfelter, and Polysciences. In Dusseldorf, Governor Corbett spoke at an Invest in PA seminar, with representatives of German-based companies that are located in the state, including B. Braun Medical, SYCOR, Uhde/ThyssenKrupp and Bayer Corporation. Afterward, the Governor attended a Marcellus Shale conference to highlight the opportunities for German companies in PA s natural gas industry.

17 So, what makes us unique? Largest international network of any state Five-factor Performance Metrics Regimen Performance-Based Compensation for all contractors Public-Private Partnership with Team PA Foundation Cooperation with Bicameral International Caucus Significant return on investment Other states want to copy PA!

18 Germany-Pennsylvania Connections Pennsylvania has the 2nd largest German population in the US Approximately 25% of Pennsylvania s population are of German descent German languages (including Pennsylvania Dutch) are spoken at home by nearly 120,000 Pennsylvania residents BUT WE NEED TO PURSUE ADDITIONAL BUSINESS OPPORTUNITIES! More university/business partnerships Direct flight between Pittsburgh and Germany? More investment opportunities based on low energy costs in PA Supply chain connections German Embassy Skills Initiative (workforce development) Transatlantic Trade and Investment Partnership huge opportunity!

19 Wilfred Muskens Deputy Secretary Office of International Business Development PA Dept. of Community & Economic Development Commonwealth Keystone Building 400 North Street, 4 th floor Harrisburg, PA