Virginia Economic Development Partnership
Surry County and Beyond
March 13, 2013
Jordan Watkins VEDP- International Trade jawatkins@yesvirginia.org

What is VEDP- Intl Trade
• Mission:
– To increase international sales for Virginia Companies
– To expand Virginia’s tax base and job base
• Goals:
– Get clients in front of in-country decision makers
– Get clients’ contracts signed
2

Accomplishing Goals By…
• Taking clients to market
– Group Trade Missions
– Independent Market Visits
• Identifying and qualifying potential in-country partners
– Global Network Research
– Internal Research
• Executing international business plans in targeted markets
3

Trade Regions
4

Trade Regions
5

How Did…
• Trax International grow their international sales from
$2.5 Million to $5 Million?
• VSD, LLC increase their international sales from $0 to $10 Million?
• K2M, Inc. raise their international sales from $7.5
Million to over $30 Million?
6

Research
• >1000 Market Research Projects Completed from
FY 2009 to present
• 251 Total Research Projects in FY 2012
– 143 Global Network Research
– 108 Internal Research
7

Research Topics: Examples
• Who is importing my product or service?
• Are there any regulations I need to be aware of?
• What is the best way for me to sell my product or service internationally?
• How do I find a local partner?
20+ More Topics
8

Global Network Program
• 49 in-country consultants provide market research to Virginia companies
• One free project per client, per year
• 26 market research tasks available
• Most requested task – list of potential in-country distributors or customers
Europe
Belgium
Bulgaria
Czech Republic
Denmark
Estonia
Finland
France
Germany
Hungary
Italy
Ireland
Latvia
Lithuania
Norway
Poland
Romania
Russia
Slovakia
Spain
Sweden
The Netherlands
Turkey
Ukraine
UK
Middle East & Africa
Israel
Jordan
Qatar
Saudi Arabia
South Africa
UAE
Americas
Argentina
Brazil
Canada
Chile
Colombia
Costa Rica
Mexico
Asia Pacific
Australia
China
India
Indonesia
Japan
Malaysia
New Zealand
Philippines
Singapore
South Korea
Thailand
Vietnam
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Resources: ExportVirginia.org
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Resources: Fast Facts
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Grow International Partnerships
• VEDP Trade Missions & Independent Market Visits
• 209 companies have traveled with VEDP on Trade
Missions from FY2009 to present
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Trade Missions
• Australia
• Brazil
• Canada
• Chile
• China
• Colombia
• Costa Rica
• India
• Mexico
• Poland
• Romania
• Saudi Arabia
• South Africa
• Turkey
• UK
• Ukraine
• Vietnam
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Trade Missions
of companies that have traveled with VEDP on
Trade Missions would participate again
14

Trade Missions
15

Independent Market Visits
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VALET Program
Virginia Leaders in Export Trade (VALET)
average increase in international sales over the two-year program for participating companies.
17

VALET Program
• +124 Graduate Companies
• 50 Actively Enrolled
18

VALET Program
To be Eligible…Companies must have:
• 20 employees
• $2 million USD in annual sales
• $20,000 annual commitment toward export trade
• Completed international market research
19

VALET Program
VALET Client Profile
Average Annual VA Sales
Average VA Employees
Average Total Employees
Average Years in Business
% of Sales Generated by Exports
Average Annual Export sales
$63 Million
141
357
33
14%
$3.6 Million
20

VALET Program
Program Benefits
– $15,000 toward export related expenses
– 25 program partners offering pro bono services
– Executive training
– International sales plan development
– Educational events
– Customized research (i.e. market analysis, technical assistance, competitive intelligence)
21

VALET Program
Additional Results:
– 94% expand into new international markets
– 86% establish partnerships with international companies
– 83% implement international marketing strategies
– 81% increase annual international sales
22

VALET Success
• BODE Technology
– VALET 2007-2009
– Starting International Sales - $100,000
– Currents International Sales - $4.9 Million
– VA staff increased from 85 to 130
– Started in 3 countries, now sell in 50+ countries
23

VALET Success
• K2M, Inc.
– VALET 2009-2011
– Starting International Sales – 7.5 Million
– Current International Sales - >30 Million
– Current subsidiaries in 8 countries, plan for 4-5 more subsidiaries in 2012
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VALET Success
• Trax International
– VALET 2009-2011
– Starting International Sales - $2.5 Million
– Current International Sales - $5 Million
– Created import/export compliance program
25

VALET Success
• Turman Group
– VALET 2008-2010
– Starting International Sales - $2.8 Million
– Current International Sales - $7.5 Million
– Purchase of Nelson County facility for exporting added
15 new jobs
– 6-70% of lumber products sold internationally
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VALET Success
“Reality is, without international expansion it would have been very difficult for us to have survived the last couple of years of economic downturn. VEDP, the
VALET program and the Virginia Department of
Agriculture and Consumer Services were pivotal parts in making this happen for our company”
-Ryan Turman
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VALET Success
• VSD, LLC
– VALET 2008-2010
– Starting International Sales - $0
– Current International Sales - $10 Million
28

VALET Success
“We didn’t have any FMS until we joined VALET. The knowledge gained through VALET enabled us to obtain FMS through the U.S. government because we had in-depth knowledge about a market they were moving into.”
-Chuck Wythe
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VALET Success
• World Art Group
– VALET 2006-2008
– Starting International Sales - $231,500
– Current International sales - $1 Million
– $500,000 international sales to China
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National Support
National Export Initiative
“To double U.S. exports in 5 years”
-President Obama
31

Step Grant
• Year 1
– $435,000 October 2011-September 2012
– 17 companies received $20,000
• Results
– $3,011,327.11 in total international sales
– Products/services sold in 11 new markets
– 12 of 17 companies increased international sales by approx. 12%
– One company went from $20,000 in international sales to
$657,537.56
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STEP Grant
• Year 2
– $734,000 October 2012-September 2012
– 16 companies eligible for $20,000
– 11 Export Compliance slots
– 10 DXA slots
– 17 Gold Key slots
– 24 Commercial News ads
– 10 Export Expo virtual trade show booths
– 23 miscellaneous stipends at $2,500
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ARC Grant
• $100,000 – 3 federal fiscal years
• Limited to ARC region
• Funds for international travel and market research
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Accolades
VEDP International Trade
35

Accolades
VALET Program
36

Accolades
VALET Program
37

Accolades
VEDP International Trade Clients
38

Accolades
VEDP International Trade Clients
39

Accolades
VEDP International Trade Clients
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Virginia Conference on World Trade
• Learn concrete ways to increase your company's international sales
• Network with hundreds of people from manufacturing, service, and logistics sectors
• Get caught up on international trade issues with industry experts
• Hear high-caliber speakers discuss how Virginia is positioning itself for the future of international trade
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Virginia Conference on World Trade
• Highlights from 2012
– +225 international business executives representing 161 companies
– Ignite Speed Networking Reception
– 2 tracks offered
– Keynote, Scott Wayne delivered on “The Art of
International Influence”
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Virginia Conference on World Trade
“It was a great conference. I am glad that I attended. I have been signing praises about the conference to the staff here.”
Vinod Chachra, VTLS, Inc.
“I was able to attend the conference and just wanted to let you know I thought the program was outstanding! You guys did a great job!”
Jon E. Lytton, CCS-Inc.
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International Trade Fact
95% of the world’s consumers live outside the U.S.
87% of world economic growth over the next five years will take place outside the U.S.
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International Trade Fact
Export growth has accounted for half of the nation's economic growth since the 2007-2009 recession
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International Trade Fact
Jobs supported by goods exports pay
13-18% more than the U.S. national average
46

International Trade Fact
President Obama announced the National Export Initiative to double U.S. exports by the end of 2014
U.S. Census Bureau, U.S. International Trade in Goods and Services
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Virginia Exports Globally
48

Virginia’s Exports
Virginia’s Export Composition
2010 From 2003 to 2010,
Virginia’s service exports grew 61%, while product exports grew 37%, inflation adjusted.
49

Virginia’s Service Exports
In 2010, Virginia’s service exports totaled
$13.8 billion and supported approximately
125,000 jobs.
50

Virginia’s Service Exports
Industry
Top Service Export Industries
Value, 2010
$ 13,799
Export Growth
Rate, 2009-2010
6.4%
Top Export Destinations, 2010
1
U.K.
2
Canada
3
Japan All Services
Business Services
Travel and Tourism
Financial Services
Royalties
Freight and Port Services
Education
Telecom Services
Insurance Services
$
$
$
$
4,610
3,124
2,090
1,976
$
$
$
988
407
406
6.7%
6.1%
4.7%
5.9%
9.6%
1.4%
9.5%
U.K.
Canada
U.K.
Ireland
U.K.
China
Brazil
Japan
Japan
Canada
Japan
Japan
India
U.K.
$ 196 3.5% Canada U.K.
In US$ millions
Emilia Istrate and Nicholas Marchio, Export Nation 2012 (Brookings Institution, 2012)
Ireland
U.K.
Japan
Canada
Canada
Korea
Canada
Japan
51

Virginia’s Service Exports
Top Service Export Industries
Industry Value, 2010
VA Ranking,
Out of 50 States
All Services
Business Services
Travel and Tourism
Financial Services
Royalties
Freight and Port Services
Education
Telecom Services
Insurance Services
$ 13,799
$
$
$
$
4,610
3,124
2,090
1,976
$
$
$
$
988
407
406
196
10
16
10
15
12
7
13
10
24
In US$ millions
Emilia Istrate and Nicholas Marchio, Export Nation 2012 (Brookings Institution, 2012)
52

Service Exports Create Jobs
Industry
Direct Export-
Production Jobs, 2010
All Services
Business Services
Travel and Tourism
Financial Services
89,409
37,899
23,530
6,545
Royalties 7,483
Freight and Port Services 5,221
Education
Telecom Services
Insurance Services
6,008
1,892
831
Total Export-
Supported Jobs, 2010
125,012
48,329
31,499
14,291
13,327
8,403
6,008
1,892
1,264
Emilia Istrate and Nicholas Marchio, Export Nation 2012 (Brookings Institution, 2012)
53

Virginia’s Goods Exports
In 2011, Virginia goods exports reached $18.1 billion, an increase of 5.5% from the previous year.
Virginia also ranked as the 25 th -largest exporting state in the U.S. for manufactured goods.
54

Virginia’s Goods Exports
Virginia Exports by Sector
2011
55

Virginia’s Goods Exports
Rank
1
Top Export Destinations for Virginia Goods
Country
Canada
Export Value,
2011
Growth
$ 2,909,012,551 -2%
2
3
4
5
China $ 1,754,391,041 38%
United Kingdom $ 1,096,101,814 8%
Mexico $ 901,183,387 5%
Germany $ 867,570,453 2%
8
9
6
7
Brazil
Taiwan
Japan
Netherlands
10 Singapore
$ 848,154,709
$ 487,749,928
$ 487,691,819
$ 455,537,784
$ 416,537,060
Global Trade Atlas
32%
27%
-3%
0%
-60%
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