Red-eye trade missions. New businesses moving in to the Granite State. Advanced Manufacturing Week. Let’s jump right into what’s happening in New Hampshire’s economic development scene.
Trade missions are happening … two of them. We’re calling them ‘red-eye’ because they will be quick, focused and productive.
The first one, aimed at the health technologies sector, lands in Mexico City on April 23, in time for the Mexico Health IT Business Development Conference. You’ll attend that and have customized matchmaking appointments with Mexican business leaders before heading home on April 25.
The second one heads to Rome on June 24-25 and is specific to the aerospace, defense safety and security sectors. Those dates happen to be on the tail of the Paris International Air Show (and several New Hampshire companies are planning to attend), but you don’t need to be taking part in the air show to participate.
Advanced manufacturing has been a buzz word as we talk about New Hampshire’s economy, which is not surprising, since we have a rich tradition in producing goods the country, and the world, needs.
“This will be a fun opportuntiy for people to get inside these high-tech companies and see what they do,” said Carmen Lorentz, the executive director of the BEDC. “Many people don’t have direct link to manufacturing today, so we wanted to given the community a chance to get to know these companies and see for themselves what great career opportunities they offer.”
What a great idea. Go check out your local manufacturers – they do good things.
Vapotherm, which makes innovative respiratory products and services, relocated from Stevensville, Md., to Exeter and plans to hire about 40 new employees this year. P.A.T Products is relocating its corporate headquarters from Bangor, Maine to the Pease International Tradeport in Portsmouth.
Lorna Colquhoun
Communications Director
NH Division of Economic Development
W.S. Badger Co., in Gilsum, NH, worked with the Office of International Commerce to research potential export markets.
Like many small business owners, Kathleen Johnson juggles everything from overseeing the manufacturing process to marketing her product, Lickity Bits.
Located up in the North Country town of Columbia, it caters to owners of horses by encouraging horses to accept bits. She has a niche product, but knows that she could grow … well … unbridled … especially outside the U.S.
“As a small business owner, it is a daunting task trying to navigate through international markets that may be available,” Kathleen said.
That’s where the Office of International Commerce stepped in and provided her with comprehensive information about a possible export market.
“We learned that Brazil is a potentially key market for us, since it has the third highest horse market worldwide and prospering economy,” she said.
The OIC received a grant from the Eastern Trade Council to provide market research about the Brazilian market to her and several other businesses.
Why Brazil? The South American country has the seventh largest economy in the world, which is weathering the global economic challenges better than other parts of the globe. With a diversified economy and an expected surge in infrastructure improvements from now until the 2016 Summer Olympics being held there, U.S.exports are increasing rapidly.
“In a very competitive market, (the research) located one company interested in receiving information from WMI,” said Frank Morabito, the company’s international sales product manager.
Out in the Monadnock region, W.S. Badger Co. makes organic body care products, employing about 40 people at its new Gilsum plant. No stranger to the OIC, it has worked several times with the staff, most recently to help find a distribution partner in Russia.
“This service proved itself very valuable, as it allowed us to enter the market with a company that is screened and trusted,” said Stephanie Ritchie, Badger’s international accounts manager. “Our sales have grown slowly, but steadily, and we look forward to continuing to expand our business inRussia.”
If your company is considering exporting, you may be eligible for a grant that will pay for market research. The funds are part of the State Trade Export Promotion grant, which will, for qualifying businesses, provide these services at no cost. Available through the U.S. Commercial Service, the research usually costs between $500 and $750.
Orders for the services must be placed by mid-September. For more information, contact Kasim at 603-271-8444 or email Tina.Kasim@dred.state.nh.us.
By the close of the 5-day event, orders were placed for 758 aircraft for a total of $72 billion, representing a 53 percent increase from the 2010 show. (The Paris Air Show is the sister event and is held in odd number years.)
NH aerospace companies can soar at Aero Montreal event next month.
The aerospace industry is hot.
Next month, there’s another opportunity for Granite State aerospace-related businesses and it’s closer to home – just north of the border, in Montreal.
Gov. John Lynch will lead the delegation of company representatives Sept. 26 to Sept. 28 to the Aero Montreal Global Supply Chain Summit. Funding from SBA’s State Trade and Export Promotion (STEP) grant is available to underwrite the $500 cost for qualifying companies, which includes bus transportation to and from Concord to Montreal. The cost to companies that do not fall within the grant guidelines is $750.
Topics and seminars include development of the supply chain for both aerospace and defense and how companies can position themselves; growth management; plant access and transportation to aerospace Original Equipment Manufacturers (OEMs) and preferential access to supply chain/procurement representatives.
The deadline to register is this week. For more information, contact Tina Kasim here at the Office of International Commerce, at 271-8444, or email tina.kasim@dred.state.nh.us.
If you are want to safeguard your investments, you are probably going to diversify your portfolio. Having a variety of investments will not only help protect you when certain markets are down, but should also help you grow your investments. The same can be said about your business. There are a number of ways a business can diversify its portfolio: by size and number of clients; variety of revenue streams; and exporting your products, the subject of today’s column.
Exporting can be a great way to avoid having all of your eggs in one basket. When you diversify your markets, the result can be a more even business cycle. I can’t think of a business that wouldn’t mind avoiding the rollercoaster of activity that can come with a narrow business model. If you are new to exporting, there are some free and cost- effective resources to help you make the transition to international markets.
The Office of International Commerce (OIC) here at the New Hampshire Division of Economic Development has staff who work one-on-one with New Hampshire businesses interested in exporting their products. OIC regularly offers low-cost workshops on topics such as export documentation, environmental compliance, doing business in Russia and international traffic in arms regulation. OIC also offers free technical assistance in our office or at your place of business. More information on OIC’s programs and services can be found at www.exportnh.org. The staff will help research potential markets and guide you to other resources such as the U.S. Department of Commerce for more in-depth assistance.
I spoke with Justin Oslowski, the Director for the New Hampshire branch of the U.S. Commercial Service, a division of the Department of Commerce. Much like the OIC, the U.S. Commercial Service, www.export.gov/newhampshire, helps reduce the sometimes complicated and confusing processes that can come with exporting. Most of Justin’s clients export business-to-business and have some previous experience with exporting. His office also offers free general market research for businesses looking to export. A company must be selling a product that contains at least 51% American content to participate in their programs.
One of the great selling points for the U.S. Commercial Service is that their network is deep and wide with in-country representation in 80 countries around the world. Their staff can pick up the phone and obtain country-specific information and contacts. They offer a “Gold Key” service that for $700 connects a business with in-country representation, arranges 4-6 business matchmaking appointments, provides an in-country briefing and cam even assist with the travel arrangements. Justin said they don’t want to waste anyone’s time or money, so if a market doesn’t look feasible during the initial meeting, they don’t go forward. If the market does look like a good fit, the company can expect to have appointments set up in about 8-10 weeks from their start in the program.
Even with the free and low-cost export assistance available, a successful launch into exporting requires an investment of both time and money. Thanks to a U.S. SBA grant, New Hampshire was awarded nearly $300,000 in 2011 to assist with exporting. The State Trade Export Promotion (STEP) grant will be used over a three-year period to enhance OIC’s efforts to help small businesses in New Hampshire prepare for new markets, comply with regulations, access financing, and attend trade missions. Specialized programs will focus on foreign markets that have the highest growth potential and industries that have the greatest ability to compete successfully.
While we see a need to grow our presence internationally New Hampshire isn’t unknown outside of our borders. Our state exports in 2010 were 44% higher than those in 2009. We were the highest ranking state in New England and we were ranked in the top five for the country. While the number decreased in 2011, New Hampshire businesses continue to see the international market as a place to grow and diversify. Our products in a vast array of industries are sold to more than 160 different countries.
While some may think that it is tough to compete globally, American products are well received overseas as we have a reputation for high quality, innovative products. It may surprise some people to learn that our state’s number one country of export is Mexico, while China is ranked fifth. How about them apples?
Christine J. Davis works for the New Hampshire Division of Economic Development as a resource specialist serving businesses in Rockingham and Strafford counties. She connects businesses with the available resources so that they may remain viable and growing entities in the community. She can be reached at Christine.Davis@dred.state.nh.us.
Ms. Davis lives in Exeter with her two daughters. When not performing her work or parenting duties she can be found volunteering with her girls for the Chamber Children’s Fund, “hitting the gym,” or spending time with friends and family.
