Friday, February 10, 2012

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Exciting Global Opportunities

International business is another opportunity to grow your business. This is the message I’ve started to convey to GLBM readers in the last two issues. Many companies, small and large, new and old, have recognized the benefit global markets have to offer and are already taking full advantage of the opportunity. Many more businesses are exploring and preparing to go global by leveraging available resources and expertise in our region, around the state and on the national level.

Let’s take a moment to think about the many moving parts that make up international trade.  For starters, consider the massive infrastructure built over centuries that facilitate global trade. Hundreds of billions of dollars of public and private investment have created and maintain a worldwide network of roads, railways, airports and seaports, along with the equipment, containers, communications and IT networks, ships, planes and motor vehicles used to move products around the world.

Then add to that the human element, including the wide range of logistics service professionals and U.S. Customs and Border Protection officers, along with their counterparts across the globe. They all work diligently to ensure goods are moved as efficiently, affordably and safely as possible.

We shouldn’t overlook the education component—universities like Michigan State University preparing domestic and international students to be part of this industry—that keeps the globe spinning. MSU’s international studies programs are a tremendous resource and economic engine for the region, as thousands of students come to MSU every year for this nationally recognized program.

As one might expect, international trade brings with it complex trade policy and global politics that involve ongoing debate and negotiations regarding free trade agreements, duties and tariffs, anti-dumping laws, import quotas, security regulations and importing and exporting compliance issues.

Several business support organizations recognize the importance of foreign trade for our region.  The Lansing Regional Chamber of Commerce (LRCC) and the Capital Region Airport Authority (CRAA), along with other regional partners, are committed to helping businesses navigate these many issues and are working to educate, simplify and facilitate international trade at the local level.

Lansing received approval for FTZ No. 275 in August 2009.  A Foreign Trade Zone (FTZ) is a geographic location inside the United States that is considered to be legally outside of the U.S. Customs territory. In brief, the FTZ program helps companies reduce costs and increase profits through deferral, reduction or elimination of duties and tariffs on imports and exports. In Lansing, FTZ No. 275 is located on airport property.

LRCC also advocates on behalf of businesses at the state and national levels for policies and programs that level the playing field for Greater Lansing companies active in the global marketplace.  In December 2009, I joined my Foreign Trade Zone counterparts from Battle Creek and Grand Rapids to meet with our congressmen. Our group sat down with Rep. Mark Shauer and Rep. Sander Levin, and later I visited Rep. Mike Rogers’ office.

In short, we all shared success stories and in my case, Lansing’s plans and progress to leverage the FTZ program to increase our region’s level of international commerce. We delivered a unified message that the FTZ program is an important economic development tool that will promote global trade, help Michigan companies cut costs, increase revenue, streamline logistics, and allow for additional capital investment and job creation in our regions—emphasizing that FTZ have a proven record of attracting new, possibly foreign business to our region that may not otherwise consider Lansing as a potential location.

The group’s collective presence, comments and supportive position of the FTZ program seemed genuinely appreciated by all three representatives and their staff members. We agreed to keep them informed of the positive impact the FTZ program is having for companies in our regions.

In summary, global trade is big business with many moving parts. Countless small businesses are actively involved in niche segments of international business—such as Plas Labs and Bee Inspired whom you read about in previous issues. Larger firms, such as GM and Spartan Motors, are intricately tied to a global supply chain and customer base. All are taking advantage of the billions invested in the infrastructure that facilitates global trade to facilitate the growth of their businesses.

The Lansing Regional Chamber of Commerce, the Capital Region International Airport Authority and our regional partners are working together to simplify the process and encourage Greater Lansing businesses to go global. We will continue to advocate on behalf of area businesses, ensuring every opportunity is made available for Greater Lansing companies to compete globally and succeed with their international business efforts.

If your business, or a colleague or customer is interested in exploring promising opportunities through international trade, visit www.portlansing.com.

Brent Case is the director of Foreign Trade Zone No. 275 and International market development at the Lansing Regional Chamber of Commerce. In this role, Case works with the Capital Region Airport Authority to increase the amount of global commerce being conducted in the Greater Lansing area.

 

 

 

 

 

 

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