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OUR ANNUAL GOVERNOR’S CUP PROVIDES A STATE-BY-STATE REVIEW OF THE BEST SITE INCENTIVES FOR MANUFACTURERS

incentives

OUR ANNUAL GOVERNOR’S CUP PROVIDES A STATE-BY-STATE REVIEW OF THE BEST SITE INCENTIVES FOR MANUFACTURERS

Manufacturing is a critical component of the U.S. economy.

In 2020, the sector directly contributed $2.2 trillion to the nation’s income, accounting for 10.8% of total GDP. If you include direct and indirect value-added activities (such as purchases from other industries), this rises to 24%.

Manufacturing is an equally critical employer. Indeed, current population survey statistics show that there are 15.7 million employees working in U.S. manufacturing roles–10% of the country’s entire working population. 

It is no surprise, therefore, that the industry is at the cutting edge of innovation. 

Within this active and pioneering landscape, many firms are embracing Industry 4.0 with open arms, recognizing it as the future of the sector and vital to unlocking competitive advantages. 

Resultantly, it is an industry attracting significant private investment, and states are jostling in an attempt to get their slice of the pie, doing so by providing a range of different incentives, from tax credits to grants.

It’s easy to see the logic from the state perspective when looking at the economic spillover. Indeed, one paper estimates that the average automobile manufacturer receiving state subsidies promises to create 2,700 jobs and receives $290 million–more than $100,000 per role created.

Here, we’ll take a look at some of the U.S. states offering the most attractive incentives for manufacturers. 

CALIFORNIA

As the most populated state in the country, it is of little surprise that California is a hotbed of manufacturing innovation, having successfully drawn in large numbers of manufacturers through a series of initiatives.

Notably, California provides a dedicated incentive in the form of the Manufacturing and Research & Development Equipment Exemption. Available to all manufacturers and businesses engaged in research and development activities relating to biotechnology, physical sciences, engineering and life sciences, a partial exemption in state sales and use tax is provided, capped at $200 million a year.

The state also promotes green manufacturing practices through its CalRecycle programs that include grants and low interest loans for the development of critical infrastructure. Examples include manufacturing projects that proactively reduce landfill waste and minimize carbon footprints, with $11 million in grants having been provided in FY 2018-19.

This is alongside a range of general incentives that manufacturing firms can tap into. All qualifying companies may receive corporate tax income credits up to 24% of their basic research expenses, and 15% on R&D expenses. 

Equally, the state offers discounted electricity rates to companies bringing new jobs and loads of at least 200kW annually. Typically, these discounts are between 12-30%, spanning a five-year period. 

NEW YORK

New York also offers a variety of dedicated incentives for manufacturers. 

Through the Manufacturer’s Real Property Tax Credit initiative, qualifying firms can apply for a credit equal to 20% of the real property taxes paid on their business properties in each given tax year. Further, the state’s Investment Tax Credit (ITC) scheme provides 5% credit to those companies that placed qualified property into service during any given tax year, with new companies able to receive this as a refund instead of carrying it forward. 

Beyond property, New York also runs the Excelsior jobs program that provides five refundable tax credits for up to 10 years. This includes a credit of up to 6.85% of wages per net new job and a credit valued at 2% of qualified investments, among others, with qualified green projects receiving even more favorable percentages. 

There are also special benefits for those operating within the food and beverage industry specifically, namely through the Alcoholic Beverage Production Credit. 

Those companies producing 60,000,000 or fewer gallons of beer or cider, 20,000,000 or fewer gallons of wine, or 800,000 or fewer gallons of liquor within a tax year may be eligible to receive a credit equal to 14 cents per gallon for the first 500,000 gallons produced in New York state, with 4.5 cents per gallon credits offered thereafter.

TEXAS

As the second-largest state, Texas has a buoyant manufacturing sector with plenty of commercial space available and a series of attractive incentives for businesses.

As the largest deal-closing fund of its kind, the Texas Enterprise Fund is one that particularly stands out, providing cash grants to companies considering new projects in an attempt to win out over other competing states. Indeed, it is critical in helping the state to secure new projects that stand to offer significant capital investment, employment opportunities and other benefits.

The Industrial Revenue Bonds scheme also benefits manufacturing firms more specifically, used to provide tax-exempt financing (of up to $10 million for $20 million-plus projects) for land and property to manufacturing and industrial developments. 

This is a central draw alongside Chapter 313 within the Texas Economic Development Act. Specifically, Chapter 313 was instated to incentivize leaders of capital-intensive investment projects, such as large-scale manufacturing and research and development facilities, to select the state. Meanwhile, like California, Texas offers tax exemptions on utilities to manufacturing companies that manufacture, process, or fabricate tangible property.

FLORIDA

Those companies operating in the advanced manufacturing sectors are deemed to be eligible for two different programs run in the state of Florida.

The first of these is the Capital Investment Tax Credit (CITC) that aims to bolster the state’s capital-intensive sectors. Here, an annual corporation tax credit is provided for 20 years for qualifying projects that invest $25 million and create at least 100 jobs.

The second is the High Impact Performance Incentive (HIPI) that instead provides grants to businesses operating in high-impact sectors, such as transportation equipment manufacturing. Eligible companies must make a cumulative investment of $50 million, with this money being used to create a minimum of 25 full time jobs in the region over three years.

Beyond these two flagship initiatives, the state also provides a series of other special incentives. The Rural Community Development Revolving Loan Fund and Rural Infrastructure Fund has been deployed to “meet the special needs that businesses encounter in rural counties,” for example. And the Brownfield Redevelopment Bonus Refund is used to “encourage Brownfield redevelopment and job creation,” with applicants receiving tax refunds of up to $2,500 for each job that they create.

INDIANA

Indiana is often touted as the beating heart of U.S. manufacturing. According to 2020 figures, the industry accounted for more than a quarter (27.84%) of the state’s total output, employing 17.07% of its working population, with more than 8,500 manufacturing firms operating in the Hoosier State.

Indeed, Indiana lays claim to the highest concentration of manufacturing jobs in the country, with 80% of the world’s RVs manufactured in the state. 

To sustain such a position, Indiana offers a variety of tax incentives and economic development programs to stimulate the creation of jobs and investment locally.

Its Skills Enhancement Fund supports the training and upskilling required to make capital investment viable for businesses, typically reimbursing half of all eligible training costs over a two-year period. 

Further, Indiana offers two tax incentives targeted at encouraging investments in research and development. These initiatives stand alongside its Patent Income Tax Exemption, Redevelopment Tax Credit, Venture Capital Investment Tax Credit, Headquarters Relocation Tax Credit, Hoosier Business Investment Tax Credit and Community Revitalization Enhance District Tax Credit. 

ILLINOIS 

Illinois offers a variety of competitive incentives, from tax credits to grant and loan programs, in the aim of attracting businesses of all kinds, including manufacturers.

The latter sector benefits specifically from the Manufacturing Machinery & Equipment Sales Tax Exemption that provides a 6.25% state tax exemption on consumables purchases made in relation to the manufacturing process.

Economic Development for a Growing Economy is a general initiative, acting as one of the state’s primary incentivization programs. Those firms investing $5 million and the creating 25-plus jobs can benefit from 10-year tax credits on their expanded payroll. 

Similarly, the High Impact Business scheme is available, providing a sales tax exemption on manufacturing equipment purchases among other activities to those businesses making $12 million investments to create 500 full-time jobs, or $30 million to ensure the retention of 1,500 full-time jobs.

Illinois’ other primary incentive programs include its Tax Increment Financing policy and New Markets Tax Credits, among others, while the state also operates dedicated enterprise zones and the U.S. Empowerment Zone Program, each offering a cohort of benefits to companies.

NORTH CAROLINA

The Economic Development Partnership of North Carolina offers a range of incentives spanning discretionary grants, building demolition and reuse, public infrastructure, transportation, workforce training and development and tax exemptions, among other programs.

Within this broad net, manufacturers can benefit directly from several dedicated tax exemptions. 

The state offers a Machinery and Equipment, Sales and Use Tax Exemption for general manufacturing machinery, with an additional Raw Materials, Sales and Use Tax Exemption ensuring that component parts or ingredients of manufactured products are also exempt (this including those packaging items for wholesale and retail products delivered to end customers).

A third sales and use tax exemption can be found on electricity, fuel and natural gas when they are used in manufacturing operations, while the state’s Inventory, Property Tax Exclusion ensures that North Carolina and its local governments do not levy a property tax on inventories.

MASSACHUSETTS

In Massachusetts, manufacturers are eligible for a variety of tax benefits. Be it exemptions on local personal property taxation, sales/use tax exemptions on properties purchased for manufacturing, or a 3% investment tax credit for newly purchased machinery and equipment, there are several reasons why the Bay State’s manufacturing industry is thriving. 

Indeed, it is estimated that manufacturers account for 9.39% of the total output in the state that is home to 243,000 manufacturing employees (as of 2019).

Pharma and medicine is the largest sub-sector, driven by the Massachusetts Life Sciences Initiative that offers such companies a 10% credit on depreciable property as well as a special sales and construction sales tax exemptions. Equally, the Life Science Company Jobs Credit provides corporate income tax credits to those firms creating a minimum of 50 new employment opportunities.

Beyond life sciences, a greater variety of manufacturers may also tap into a two-category R&D tax credit, the first (10%) relating to qualified expenses, and the second (15%) relating to basic research payments.

The state also offers critical grants via two key programs–the Massachusetts Transition and Growth Program, as well as the Regional Economic Development Organization Grant Program.

OHIO

The city of Mason, Ohio, lists advanced manufacturing as one of its targeted business sectors, providing a variety of incentives via REDI Cincinnati, CincyTech, TechOhio, VentureOhio and JobsOhio.

The latter of these agencies is responsible for the JobsOhio Economic Development Grant for projects requiring significant capital investment in the areas of manufacturing, R&D corporate headquarters, distribution and advanced technology.

JobsOhio also offers a Research & Development Center Grant to organizations with $10 million in annual turnover and a five-year operating history, as well as its Revitalization Program that offers funding of up to $1 million to those looking to redevelop the state’s underutilized sites.

Tax credits and exemptions are equally in abundance, some of the most notable including the Research & Development Investment Tax Credit, Job Creation Tax Credit and Sales Tax Exemption on machinery and equipment used in manufacturing processes.

LOUISIANA

Recent incentives offered by the state of saw Coca-Cola Bottling Company UNITED commit to a $42 million investment that will be used to expand its bottling facility in Baton Rouge–a project that will not only safeguard 550 jobs, but equally create an additional 15 with an average salary of $43,000.

The state is providing the firm with a competitive package that includes a $300,000 modernization grant, as well as support from LED FastStart–Louisiana’s workforce development program that delivers customized employee recruitment, screening, training development and training delivery at no cost. Further, the firm is also expected to utilize the state’s Quality Jobs Rebate and Industrial Tax Exemption Program.

The former offers up to a 6% rebate on annual payroll expenses for up to 10 years as well as a state sales/use tax rebate on capital expenses or 1.5% project facility expense rebate for qualifying expenses.

The latter, meanwhile, offers an attractive tax incentive in the form of an 80% property tax abatement for an initial term of five years for manufacturers who make a commitment to jobs and payroll in the state, with option to renew for an additional five.

shortages

Metal Shortages Add Concerns to Global Economy

As the global economy continues to throw curveballs at various industries, raw materials and associated manufacturers, distributors, workers, and consumers are among those feeling the bulk of the pressure. So, how can these effects be mitigated without costing consumers and company’s unreasonable amounts? A global leader in all things tungsten, Almonty Industries focuses on the mining, processing, and shipping of tungsten across the world. The company’s CEO, Lewis Black, shares the challenges automotive and energy companies are currently navigating and how these industries can overcome them in this exclusive Q&A.

What are some of the most significant impacts of the steel and metal shortages and what industries are being hit the hardest?

Black: From Almonty’s point of view and what we are doing with the tungsten industry in South Korea, the construction industry is definitely feeling the brunt of the impact. Even though the material is available, the price is extraordinarily high, and we are witnessing a huge escalation in costs and delay in delivery times.

The industry is moving along and accepting these challenges, but things are now taking longer to build and it is costing more money to accomplish. The redeeming quality is that money is still unbelievably cheap which has helped in mitigating these cost escalations.

Problems arise when inflation keeps rising and governments continue to raise rates to counter it, which is another issue. Now, companies with projects are optimistically moving forward because they have no choice. The increase in time it takes to build and its impact on the costs for labor can predictably cause a movement within labor unions demanding compensation for their workers to counter inflation.

How are the semiconductor and automotive industries affected by this?

Black: The semiconductor industry is experiencing shortages due to demand far outweighing supply. It is interesting because it is commonly assumed that the industry is a relatively straightforward product to produce, when in fact, it’s anything but. Creating this type of product is technically advanced and takes around nine weeks to make one semiconductor. From a tungsten point of view, one must pump tungsten gas into every semiconductor, so increasing capacity becomes a huge undertaking for the factory.

Are there any specific initiatives that can be taken to mitigate these challenges?

Black: As a manufacturer, you are caught in a tricky situation. You will continue to see rising costs and how much of that cost you can push onto the consumer is yet to be evaluated. There is an inherent apprehension about how much to pass on to the consumer. Consumer indexes and inflation rises of 4-5 percent are not the same for raw materials, in fact, it is much higher than these figures. We are seeing extra caution from manufacturers regarding the consumer aspect of it.

At this point, it is just a matter of time before we start seeing price escalations. As the saying goes, “No one can hold back a rising tide.”

Companies are very reluctant to pass off some of these costs because of the price gouging headlines and hearsay that does not apply to them. In Spain, for instance, energy cost is 400 percent higher than previously recorded, impoverishing millions of people. The response of the central government was to accuse the energy companies of price gouging and say they were going to introduce legislation to seize their profits and distribute them to the people. Of course, they have not done that because in a democracy you cannot just do that. It was an absurd proposition to even state because it had nothing to do with the energy companies – the market sets the price, not the companies.

That is exactly what manufacturers are reluctant to do – get caught in the crosshairs of this type of situation when passing costs off to consumers.

Any last thoughts you would like to add?

Black: Inflation is inevitably going to get worse before it gets better. You can analyze a market and forecast all day, but what you cannot do is control what the government is going to implement. If a government continues to spend money, the problem is compounded. Inflation is not a mysterious economic concept.

To learn more about Almonty Industries, visit almonty.com

business

How to Start 2022 with the Right Mindset to Grow Your Business

The historical surge in new U.S. businesses in 2021 could well be surpassed in 2022, with one report predicting a third consecutive record year for entrepreneurship – all during the COVID-19 pandemic.

As a new year begins, many business owners are focusing on sales objectives and finding the right talent. But with many new entrepreneurs entering the arena, there’s more for them to consider than numbers and resumes. It’s also important for them to grasp what the “entrepreneurial mindset” is all about,” says Mari Tautimes, a prosperous business owner and author of #KeepGoing: From 15-Year-Old Mom To Successful CEO And Entrepreneur.

“The pandemic has brought a unique set of challenges on top of what new entrepreneurs already will go through,” Tautimes says. “The entrepreneurial mindset involves specific ways of thinking and how to approach challenges and mistakes. It’s about having to improve your skill set and reaching higher levels of resiliency.

“Starting and running a business is an all-encompassing daily grind and it can take many years to achieve the success you hoped for. Those who make a consistent effort to embody the special mindset required will equip themselves to endure, meet everyday challenges and grow.”

Tautimes offers these tips for new business owners to develop the entrepreneurial mindset and move their business forward in 2022:

Move from conscious incompetence to unconscious competence. The kind of growth most entrepreneurs seek requires getting out of their comfort zone and acquiring a new skill or skills, Tautimes says. She defines “conscious incompetence” as being aware of the skill but not being proficient at it, and says “unconscious competence” means when performing the skill becomes automatic. “You have to accept there is much that you don’t know, and have the patience and perseverance to spend time on professional growth and learning those things you don’t know,” she says. ”While learning new things and realizing how much we don’t know is extremely uncomfortable, what is even more uncomfortable is the thought that I might face my deathbed someday never knowing what I could have actually done.”

Revisit your vision daily. Tautimes says maintaining a strong and consistent entrepreneurial mindset involves a commitment to a vision, which allows the business owner to follow through on the necessary steps to complete the vision. “One problem entrepreneurs frequently face is that the demands of the day get in the way,” she says. “Frustration and doubt can creep in, and problems can clutter up the day and take you off course, so it’s important to set aside time every day to focus on your vision and goals in order to stay on track.”

Take responsibility and uphold integrity. “A responsible person is someone who does not make excuses, does not blame others or circumstances, and who pushes through feelings to take deliberate action,” Tautimes says. “The feelings part of the equation is really important. Responsible people who proactively make their lives happen do not make decisions throughout their day based on their feelings. They base their decisions on what they said they were going to do, whether they like it or not. In other words, they uphold a consistent level of integrity with and for themselves as well as with those they serve.”

Approach problems from all sides. There is much trial and error involved in the entrepreneurial life, which means entrepreneurs have to approach problems from different angles in order to move forward. “Oftentimes the first solution is not the best one,” Tautimes says. “You have to think differently than most people and open your mind to all the possibilities. Remember that mistakes are a great opportunity for growth, including product or service improvements or new products and services altogether.”

Delegate and elevate. A common mistake entrepreneurs make early on is wearing too many hats. “I always felt like I was lacking because I couldn’t figure out how to do it all,” Tautimes says. “I never realized that the real question wasn’t ever whether I could do it all to begin with; it was whether I should. With everything that we do, there is an opportunity cost. For example, if I spend a ton of time building the marketing campaign, then I’m not developing the next business relationship. What you need to realize is the more you choose to do things that help you increase your value, the better your life and business will become. Stop doing things you can delegate so you can focus on things that help your company get farther faster.”

“There will be setbacks and bumps in the road,” Tautimes says, “but that’s part of the entrepreneur’s journey and growth. The right mindset builds you and your business for the long haul, and the rewards eventually come to those who continue to grow.”

____________________________________________________________________

Mari Tautimes (www.maritautimes.com) is the author of #KeepGoing: From 15-Year-Old Mom To Successful CEO And Entrepreneur. She rose from administrative assistant to CEO of her family’s businesses and sold them for $16 million. An entrepreneur for over 20 years, Tautimes is a speaker, trainer, EOS Implementer® and mentor, sharing her story of perseverance and success to help others create fulfilling lives.

texas

DISCOVER GLOBAL SITE LOCATION INDUSTRIES’ CHOOSE TEXAS COMMUNITIES

Texas continues to add successful projects to its economic development portfolio, and Global Site Location Industries (GSLI) continues to spearhead efforts supporting businesses gearing up to expand or relocate operations.

GSLI’s Choose Texas program focuses solely on connecting these expanding or relocating businesses with Texas-specific markets that best meet their project needs and goals without the costs and hassle of traditional site locators. 

The following 11 Texas communities represent GSLI’s latest roundup of Choose Texas partners that offer companies unique opportunities for business – from competitive locations to robust infrastructure and skilled workers.

TexAmericas Center

Known for being a Top Ranked Business Facilities Location in 2021, the Texarkana region’s mixed-used industrial parks offer 3.5 million square feet and 12,000 acres of commercial and industrial property to expanding businesses. From its low operational costs, flexible facility options and access to Texas’ primary freight corridor (Interstate 30), TexAmericas Center brings 150 years of solid economic development experience to support the needs of its current and prospective tenants.

Most recently, TexAmericas Center announced efforts to combat the trucker shortage through a truck training partnership with Texarkana College. Through this partnership, space is offered to support the initiative to beef up the labor pool and continue to meet the increasing demand for drivers. Thanks to TexAmericas Center’s ideal location, students can benefit from the area’s space to practice and access multiple interstates and rail lines. 

“We have tenants who need commercial truck drivers directly or need to make sure raw materials can be brought in and shipped out for finished products,” Scott Norton, CEO and executive director of TexAmericas Center, said recently. “We want to do everything we can to support a trained workforce.”

To learn more, visit texamericascenter.com.

Dumas 

Located in the Texas panhandle, Dumas has a reputation for being one of the busiest and most historical small towns in the Lone Star State. In fact, Dumas was an essential production point for wartime products (including the largest helium deposit in the world) during World War II.

The city’s industrial park, located along the Ports to Plains International Trade Corridor, represents variety and opportunities. Current companies found in Dumas include Frito Lay Area Distribution Center, Equipment Supply Company, Inc. and Specialized Dairy Services. 

Dumas offers expanding or relocating businesses a diverse range of industries to grow among, competitive transportation access points and a proactive approach to workforce development. 

Through its partnership with Amarillo College-Moore County Campus, the city prepares the labor pool with resources relevant to industry needs. The Career Skills & Technical Training Center offers custom-based training to further develop skills needed to support growing businesses. Most recently, Dumas Economic Development Corporation worked with Beach Coders Academy to create a program specifically designed for web development skills and certification.

To learn more, visit dumasedc.org.

Laredo

Best known for its globally-minded business climate, Laredo is home to the No. 1 inland port along the U.S.-Mexico border, Port Laredo. The diverse city is about 150 miles from San Antonio and two hours from Monterrey, Mexico. Laredo represents the third position among the nation’s top five ports, after the Port of Los Angeles (No. 1) and runner-up Chicago O’Hare International Airport.

In terms of international trade, Port Laredo reported $205.88 billion of total global trade last year alone. Mexico, China and Japan are recognized as the top three trading partners of the city, with motor vehicle parts, gasoline/other fuels and diesel engines among top exports and motor vehicle parts, passenger vehicles and tractors among top imports. 

There is an alphabet of transportation options for businesses located in Laredo. From air, water, highways, motor freight, rail, bus, parcel services and trade handling services, the options are equally efficient as they are competitive. 

To learn more, visit laredoedc.org.

Sulphur Springs

Heading northeast, Sulphur Springs/Hopkins County offers a unique blend of small-town history and thriving business environment. The city is located just outside of the Dallas-Fort Worth (DFW) region along Interstate 30. The name Sulphur Springs is self-explanatory of the city’s history. Among the city gems still found there is the city courthouse, originally built in 1895, adding to the area’s traditional flair.

Looking at the business side of things, Sulphur Springs offers a robust and diverse industry presence with companies including Ocean Spray, We Pack Logistics, Aero Space Aluminum and B.E.F. Foods. The city’s advantageous transportation options offer businesses short and main line rail, air and NAFTA corridor access via Interstate 30. Did we mention the city’s municipal airport was named airport of the year? 

Additionally, Sulphur Springs is known for its outstanding academic reputation, bragging state recognition every year since 1999, and preparing its workforce via the Sulphur Springs Higher Education Center. It is clear there is nothing “small” when it comes to doing business there. 

To learn more, visit ss-edc.com.

Lancaster

The “Shining Star of Texas” lives up to its name, particularly when talking business. In 2020, Lancaster took the No. 1 position on Dallas Business Journal’s list of highest value deals by Economic Development Agencies, with an impressive $1.41 billion secured. 

Expanding and relocating businesses can benefit from the city’s competitive job investment consisting of 1,000 jobs by 2023 offering wages between $30,000 and $76,000. Location is everything when deciding on where to grow your company, and Lancaster provides ideal access to rail and multiple interstates within a three-mile radius (including IH20, IH35E and IH45) in addition to Lancaster Regional Airport, Dallas Love Field and DFW International Airport all within a 35-minute drive or less. 

Distribution and manufacturing are two driving forces behind the city’s economy with opportunity for artificial intelligence companies, cold storage, food processing & manufacturing and motor vehicle parts. Among Lancaster’s top employers are AT&T, Quaker Oats, Brasscraft, Oncor, LGS Technologies and DSV Logistics. 

To learn more, visit lancaster-tx.com.

Andrews

If you have ever wondered what a successful micropolitan region looks like, the City of Andrews is one of the best examples. Known for being among the fastest-growing micropolitan areas in the state, Andrews was recognized as the fastest-growing county in the nation between 2010 and 2015.

Business development is supported several ways, one of which focuses on advanced training and postsecondary education opportunities through the Andrews Business & Technology Center. A result of a partnership between Odessa College, University of Texas Permian Basin, College of the Southwest and the city and county governments of Andrews, this training center is a prime example of how the area commits to preparing its workers.

The small-but-mighty community is home to companies looking for long-term options. Andrews has been the home of The Kirby Co. since 1972 and currently employs 162 workers. Advance Cooling Towers is another example of longevity in the area, with 20 years of business in Andrews. Salazar Service & Trucking Corp. has more than two decades of business in Andrews while Chemical Service Co., which was originally established in 1967, expanded operations in 2014, adding 15 new jobs over five years.

To learn more, visit andrewstxedc.com

Crockett

Known for being the county seat of the oldest county in the state of Texas (Houston County), Crockett is between Tyler and Houston, east of Waco. Incorporated in 1837 and named after legendary folk hero Davy Crockett, the City of Crockett embodies small-town culture, big business opportunity and a collaborative approach to development. 

Industrial manufacturing is one of the primary economic drivers in Crockett. Among companies currently found there are Elastotech, Quantex, Alloy Polymers and Vulcraft. 

Thanks to the town’s advantageous location, Crockett provides a multimodal transportation channel via: the Union Pacific freight rail; Highways 7, 21, 19 and 287; and DFW International Airport, George Bush Intercontinental Airport and Crockett Municipal Airport.

To learn more, visit crockettedc.org.

Harlingen

Located in the heart of the Rio Grande Valley, Harlingen is known for its diverse business portfolio and highly competitive access to international markets. In fact, the Port of Harlingen generates $1 billion in economic activity via import and export activity alone.

And we must point out the robust infrastructure available for businesses. Multiple telecommunications and fiber optic services, 15 electricity providers, natural gas & propane, and high-quality water/sewer make a critical difference for businesses located here.

The city consists of 3,545 establishments and a labor force of 33,482. Among top employers, those in education, healthcare, technology and manufacturing take the lead in Harlingen. Companies such as L&F Distributors, Valley Baptist Medical Center, Penn Aluminum International LLC and United Launch Alliance are all found there.

To learn more, visit harlingenedc.com.

Sunnyvale

Known for offering expanding and relocating companies a “business climate that shines,” Sunnyvale is east of Dallas, slightly northeast of Mesquite and within the DFW market, approximately 36 miles from DFW International Airport. 

Manufacturing, warehouse & distribution and healthcare sectors can all be found in Sunnyvale, with other sectors sprinkled in. Healthcare and social services, construction, administrative and support services and retail are the leading industries. Among the city’s major employers are Texas Regional Medical Center, Dal-Tile and FedEx Distribution. 

Sunnyvale’s labor force stands at 4,828 employees among 484 establishments

To learn more, visit townofsunnyvale.us.

Clyde

If you have not already caught on to the vast number of small towns driving business in Texas, the City of Clyde should do just that. This small and highly charming town started with the building of a log cabin sometime around 1876 before people from Fort Worth would become the first to officially settle in Clyde.

A mix of public-private employers make up the business roster. A unique aspect of the city is that it is the opposite of what one would find in an unpredictable business environment. This city takes pride in the stability of its major employers and a quality of life-focused approach to business development.

Air, highway and rail access provide ideal logistics for companies seeking immediate access to multiple transportation options. Additionally, Clyde’s workforce and low operating costs support businesses looking for a competitive edge.

To learn more, visit clyde-tx.gov.

Paris 

Last, but certainly not least, is the City of Paris, a.k.a. “The Best Small Town in Texas.” Paris is where one can find that classic small town feel without compromising opportunities for business. 

Healthcare leads the industries in this town, with Paris Regional Medical Center and multiple outpatient facilities. The town’s 200-acre industrial park is another significant asset, offering several shovel-ready options. 

Served by the Kiamichi Short Line Railroad Co. and the host of Cox Field, Paris offers a variety of competitive transportation options, including multiple motor freight carriers. Looking for competitive wages and a skilled industrial labor shed? Paris has those, too.

To learn more, visit parisedc.com.

cultural

An American Businessperson in a Global World: Rethinking Your Cultural Business Etiquette

In the American business world, there is a generally accepted, and often unspoken, etiquette that most businesspeople follow. Be on time, dress professionally, use a firm handshake, make eye contact, show initiative, be respectful of your superiors and so on. Take a look around the world, however, and you will find widely diverse protocols that can quickly lead to cultural barriers, misunderstandings, and possibly lost revenue.

From punctuality to attire to physical contact and personal space, the code of behavior varies wildly across different cultures. When doing business in a global, geo-political world, these differences can be tricky to navigate, especially in virtual meetings. But the broad representation of different cultures goes a long way toward making businesses more competitive. Culturally inclusive and diverse companies are shown to see higher profits. Diverse teams are more innovative, better at making decisions, and are more likely to capture new markets.

Cultural awareness can have a big impact on the growth of your business. More importantly, though, it is a matter of showing respect and earning the trust of your international partners and colleagues. It is about establishing common ground so that decisions, deals, and relationships start from the same foundation.  And to build that foundation, you may have to make some adjustments in how you do business.

Below we will look at 8 changes you can make to foster cross-cultural intelligence and improve the way you conduct international business.

Do Your Research & Be Prepared

Over 80% of CEOs recognize empathy as a key to success. Before meeting with any international business associates, invest time in learning how they act, speak, dress, and conduct business. Even if everyone speaks English, make the effort to learn how to say “hello” and “thank you” in their language. Be aware of what titles, if any, should be used. The simple awareness and empathy of what they do and why it helps you better adapt to their needs. Also, the planning you do before the meeting is often more important than what you do in the actual meeting. In many cultures, meetings are not where the decisions are made; they are an opportunity for asking questions and exploring possibilities. Therefore, distributing all necessary information prior to the meeting gives everyone involved time to review so that they can comment on it intelligently. In an ideal world, the materials should also be translated into their language to make things easier.

Hire your own Interpreter

Even when you have all materials translated, if you are not fluent in each other’s languages the potential for miscommunication is high. To prevent any misunderstandings, it is a good idea to have an interpreter on hand. This gives everyone an equal opportunity to comprehend everything that is discussed. Even if the other party has an interpreter in the meeting, always have your own interpreter on hand, as you never know what the other side may discuss!

Tone Down the Assertiveness

Americans are known for being direct, assertive, and loud. Some countries, like Germany, share this quality when sharing ideas and doing business. In other countries like Japan, however, people tend to speak softly and are not as forthcoming when making suggestions or sharing their ideas. Doing your research will help you know if being assertive is appropriate or if you are coming across as pushy and aggressive. When in doubt, use a neutral tone and be considerate of everyone’s input, even if they communicate in a way you are not accustomed to.

Beware of Nonverbals

A mere 7% of what we communicate is expressed with words. The remaining 93% is conveyed with body language. Nonverbal communication can be complicated in any setting, but with so much business taking place virtually these days, it is more important than ever to be aware of what you are saying with your body language. From intense eye contact to large hand gestures to loosening your tie in a meeting, there is a minefield of ways you could inadvertently insult an international colleague. Learning and practicing nonverbal cues that are common in your associate’s culture will be worth the effort to avoid coming across as rude and offensive.

Watch What You Say

Avoid using slang, local idioms, or “Americanisms”. For example, sports metaphors like “that came out of left field” or “can you pinch-hit this one for me” are not universally understood. Your associate may not understand what you’re talking about, and it is unlikely they will tell you, which can make them feel isolated and unaccepted. Be careful making jokes as well. While a good sense of humor is an asset in any potentially awkward cultural situation, jokes can lead to misunderstandings and possibly be offensive.

Don’t Try to Multi-Task

According to a survey from Intercall, the largest international conference call company, “65 percent of people do unrelated work during a meeting, 60 percent read or send e-mails, and 43 percent admit to checking social media.” While it may be easy to slyly multi-task in a virtual meeting, if it’s noticed, you’ll come across as rude. In addition, when meeting with an international client or colleague, whether virtually or in person, there’s a lot going on. From considering their cultural norms to understanding the interpreter in the background, to making important business decisions, you don’t want to get distracted from your main objectives. Save yourself a lot of trouble and keep your attention on the task at hand.

Consider How Other Cultures View Time

Many countries place a high level of importance on starting meetings on time and keeping to strict schedules. On the other hand, punctuality is treated casually in countries like France or Argentina. This fluctuation can affect how much relevant information you have time to share. Understanding your client’s culture can help you prepare and organize the meeting agenda accordingly.

Time is also a consideration in the decision-making process. For example, the UK has a slower process than the US. Germany also takes its time, being very thorough in early stages, but once they have made a decision, things move quickly. Understanding and managing your time expectations is critical.

Recognize Hierarchical Structures

Hierarchical structure can impact the way business meetings are handled. In many East Asian, Latin, and African cultures, decision-making authority varies according to age, gender, family background, etc., and team roles are allocated accordingly. Even the way the meeting is conducted in these countries is affected. For example, in China, you should always allow the host to leave the meeting first. Virtual meetings may minimize these issues since there are no seating arrangements, but because the rules and protocols can be complicated, it’s a good idea to explicitly outline the expected formalities ahead of time so everyone knows how to interact.

Cultural Awareness is Your Competitive Advantage 

Embracing cultural awareness and diversity is a crucial part of doing business in an ever-expanding world. Cross-cultural intelligence inspires creativity, encourages inventive thinking, and fosters better problem-solving. The local market insight you get makes your business more competitive and profitable. It allows you to better adapt your products and services to be more meaningful and valuable to all your customers.

study done by McKinsey and Company showed that companies with more culturally and ethnically diverse executive teams were 33% more likely to see better-than-average profits. When you make a genuine and concerted effort to understand cultural dimensions, you can build a greater understanding between the different cultures in your organization. This ultimately leads to understanding, trust, respect—and competitive advantages— in a very complex world.

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Susanne Evens is the Founder and CEO of the St. Louis-based AAA Translation (founded in 1994), the President of St. Louis-Stuttgart Sister Cities (since 2006), and a board member of the World Trade Center St. Louis. Susanne is also a board member of the German-American Heritage Society (since 2007), a member of the St. Louis Mosaic Project Immigrant Entrepreneurship Advisory Board and a member of Explore St. Louis Multicultural Committee. Her advice regarding global business development and communications has been featured by national media outlets that include BusinessWeek, National Public Radio (NPR), BrandChannel.com, and more. Under her leadership, AAA Translation has grown to serve business clients the world over, working in more than 300 languages, to provide translation, interpretation, and cultural consulting services. For more, please visit aaatranslation.com.

mckinley packaging

McKinley Packaging Chooses Texas: Lancaster Plant Expansion Underway

McKinley Packaging, a sustainably operated paper and packaging company, announced the addition of its seventh packaging plant. The 500,000 square-foot rail-served building in Lancaster, Texas will create 100 jobs in total when running at full capacity across three shifts, Monday through Friday.

“We started looking at properties back in July 2020 and decided, as a company, that Lancaster is a market we want to grow in,” explains Anthony Garcia, Vice President of Operations at McKinley Packaging.

The Lancaster expansion marks another significant milestone for the Bio Pappel subsidiary. Known as the largest manufacturer of paper and corrugated materials in Latin America, Bio Pappel launched expansion efforts in the United States seven years ago. Since then, McKinley Packaging has represented the company’s strategic growth success with its now seven plants, two paper mills, and five recycling centers across the U.S. markets.

Efforts to locate the ideal market for McKinley’s seventh packaging plant were spearheaded by Global Site Location Industries (GSLI), a Dallas-based site selection consultant and economic development marketing agency.

“GSLI’s process provided us with the opportunity to truly evaluate multiple markets that had the potential to support our company strategies, helping us identify the right location first,” Garcia adds. “In addition, GSLI was very valuable in helping us review incentive packages and navigating the negotiation process. The team providing insight on how different incentives compared across different communities as we determined location.”

Driven by its emphasis on sustainable operations and recycled materials, McKinley Packaging continues to aim for zero-discharge water operations upon reaching capacity. This is one example of how McKinley Packaging continues the “green” legacy of the company’s history.

“Mckinley Packaging has been great to assist in the finalization of their site and incentives,” adds Eric Kleinsorge, GSLI’s CEO and Chairman. “Lancaster wasn’t a “first-thought” choice, but after conducting our Road Show Tour and analysis they were definitely the right choice. Shane Shepard and his Lancaster Team were excellent and responsive when working with the city. This made a big impact for McKinley. We look forward to working with them on future expansions and are excited about the breaking ground of this new facility!”

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About McKinley Packaging

McKinley Packaging is a world-class integrated paper and packaging company that is GREEN.

We operate two state-of-the-art businesses in the United States: Our first division is McKinley Paper, which has two paper-producing facilities in New Mexico and Washington. Our second division is McKinley Packaging, with facilities in California, Georgia, Indiana, and Baja California, Mexico.  McKinley Company is part of Bio Pappel which is the largest manufacturer of paper and paper products in Mexico and Latin America.

About Global Site Location Industries, GSLI

Global Site Location Industries, LLC (formerly known as the World Economic Development Alliance) is a site location firm founded in 1994. GSLI has helped over 1,200 companies identify economic development professionals that could assist them with their site location decisions. We have over 75 site location expert offices nationwide. We use Project Qualification Team to conduct our initial interviews with companies to identify the viability of a project. The balance of our staff is customer service, project managers, production, web designers, and finance.

For More information visit www.gslisolutions.com or contact info@gslisolutions.com

Community Connection Podcast with Special Guest Matt Z Ruszczak

GT Podcast – Community Connection Series – Episode 7 – Rio South Texas- Bordering on a World of Opportunity.

In this episode, join GSLI’s Eric Kleinsorge as he talks with Matt Ruszczak on why the Rio South Texas region is thriving for businesses.  Not only can you access markets via land, air, and sea, but now space.  Learn about the industries that thrive in this region and get answers to whether or not your business should be considering an expansion to this booming region.

For more information on the Council for South Texas Economic Progress visit https://costep.org/

 

Check out more of our GT Podcast – Community Connection Series here!

ports

PORTS AROUND THE WORLD EXPAND TO ACCOMMODATE BIGGER SHIPS, MORE RAIL AND AN UNQUENCHABLE CONSUMER APPETITE

Moments after leading a press conference to herald the opening of the Long Beach Container Terminal at Middle Harbor on Aug. 20, Port of Long Beach Executive Director Mario Cordero is chatting up a certain magazine editor who asks if the $1.5 billion facility will speed up offloading the convoy of cargo vessels currently anchored off the California coast awaiting berth slots.

“That’s the hope,” says the ever-congenial Cordero before he recalls a recent phone call between his wife and a friend who resides down the coast in upscale Newport Beach. 

“Let me speak with your husband,” the friend demanded, and after Cordero got on horn she sternly asked, “What are you doing about all these ships in the water? They’re an eyesore!” 

Ensuring beautiful, unobscured views for coastal residents is not normally found in seaport chief’s job description, but the ever-resourceful Cordero had an answer for the refined lady:

“You know how to make the ships go away? Stop shopping.”

Click.

Naturally, the Fashion Island shopping sprees have not ended any sooner than everyone else’s retail therapy, virtual or otherwise. Even before a global pandemic jolted the supply chain, ports around the planet were in the expanding and modernizing mode, especially with the arrival of ever-larger cargo vessels and the need to move more goods by on-dock rail due to concerns about truck emissions and dwindling driver rosters. 

The thing about being competitive is . . . there is always someone else being competitive. Already responsible for 2.6 million direct and indirect jobs across America, the Port of Long Beach has stepped up its game with a 300-acre, completely electric terminal that can handle up to 3.3 million twenty-foot equivalent units (TEUs) and by itself would rank as the sixth busiest container port in the country. 

While truly spectacular to behold—as you will discover if you read to the end—the LBCT, as the hip kids call it, is but one of many port enhancement projects happening around the world. What follows are just some—with estimated price tags that would even raise a Neiman Marcus shopper’s manicured brow.

South Carolina port expansions

$985 million (and another $5 billion likely on the way)

To open the first terminal in the nation since 2009, crews in North Charleston, South Carolina, dealt with challenging site conditions, waterways, motorists and even . . . gulp . . . bombs. That’s because the Hugh K. Leatherman Terminal occupies a former naval base that was used as an airfield during World War II, opening up the possibility of previously undetonated ordnance going “BOOM!” on former training grounds.

It’s full speed ahead for Leatherman as entities up and down the East Coast scramble to expand port capacity to accommodate larger ships from the widened Panama Canal. The new terminal includes a 1,400-foot berth and yard that can accommodate 19,000 TEU ships, with a capacity of 700,000 TEUs, for the Port of Charleston. Five ship-to-shore cranes that were delivered in 2020 are now the tallest in South Carolina. 

At full buildout, Leatherman will have three berths, cover 286 acres of area and include about 3,500 linear feet of marginal wharf, with a channel depth of 52 feet. Ultimate capacity will be 2.4 million TEUs, or roughly double what the deepest water port on the East Coast previously handled. After welcoming its first container on March 30 and first ship on April 9, Leatherman helped its port attain record numbers in May and be honored the following month as the 2021 South Carolina Project of the Year by the American Society of Civil Engineers’ state section. 

Meanwhile, the port authorities of South Carolina and Georgia are negotiating to jointly operate a $5 billion terminal in Jasper County, South Carolina. Operating on a 1,500-acre site that’s 8.5 miles downstream from Garden City, Georgia, the Jasper Ocean Terminal would have the capacity to transfer 8 million TEUs a year and meet the Southeast’s cargo demand through at least mid-century. The Washington Post recently reported that Jasper would create 900 direct jobs with an estimated $81 million payroll, 1 million high-paying jobs nationwide between 2040-50 and $9 billion in revenue for the two states. South Carolina State Sen. Tom Davis (R-Beaufort), who has been working on the project for nearly 20 years, recently put it best when he told the Hilton Head Island Packet, “This makes all the economic sense in the world.” 

Georgia Ports Authority Peak Capacity project

$525 million

With the Port of Savannah seeing a 25 percent increase in TEUs handled in July, its Garden City Terminal breaking container trade records for nine out of the past 10 months by that time, the Port of Brunswick experiencing a 39 percent jump in auto and machinery units passing through in July (with ro-ro records of its own in four out of the 10 months)—and demand expected to just keep rising through the end of the year—expansion is required merely to keep up.

Which explains GPA expediting its Peak Capacity project to add 700,000 TEUs over two phases beginning this fall. Then, in March 2022, a Garden City Terminal chassis storage facility will open on a 25-acre parcel along Georgia State Route 21. The expansion wagon rolls on in 2023, when improvements of Berth 1 at Garden City Terminal are expected to be completed and 92 more acres of land will be added to up capacity by 750,000 TEUs. 

The berth project, which also includes the purchase of eight new ship-to-shore cranes, will allow the Port of Savannah to simultaneously serve four 16,000-TEU vessels as well as three additional ships. Rail lift capacity is expected to double to 2 million TEUs annually thanks to the Mason Mega Rail Terminal project at a port that already handled 9.3% of total U.S. containerized cargo volume and 10.5% of all American containerized exports in fiscal year 2020.

Expansion cannot come soon enough for GPA Executive Director Griff Lynch, who last spring remarked, “Right now, we are moving container volumes that we did not expect to see for another four years.” 

Tanzanian ports’ expansion and creation 

$500 million+ (and another $10 billion possibly on the way)

During Xi Jinping’s maiden foreign tour shortly after he became China’s president in March 2013, he and then-Tanzanian President Jakaya Kikwete watched over the signing of a framework agreement between the East African nation and China Merchants Holdings International. Under terms of the deal, China’s largest port operator would build a new $10 billion port in Bagamoyo, which is about 47 miles north of the thoroughly congested Dar es Salaam Port, Tanzania’s largest. 

However, negotiations stalled—until the country’s current President Samia Suluhu Hassan said during a recent gathering of the Tanzania National Business Council, “Regarding the Bagamoyo Port project, let me give you the good news that we have started talks to revive the whole project.”

If what is currently planned at Bagamoyo comes to pass, that port would dwarf the Port of Mombasa, which is nearly 320 miles to the north in neighboring Kenya and is currently East Africa’s main gateway. But Dar es Salaam Port has steadily undergone expansion and modernization that is also aimed at overtaking Mombasa. Work has included the strengthening and deepening of seven berths, including a ro-ro terminal that has already allowed the Tranquil ACE Panama to call with 3,743 vehicles aboard. Expanding and dredging the ship entrance channel, turning circle and harbor basin are expected to be completed soon.

Tanzania Ports Authority, which oversees Dar es Salaam, also has strengthening, deepening and construction going on at the ports of Mtwara and Tanga. A new port in Karema is due for completion in March 2022 and, in addition to Bagamoyo, the government is exploring building new ports in Mbamba-bay, Manda and Matema. 

Port of Virginia dredging, widening and more

$350 million

Growing business at the Port of Virginia in Norfolk set the stage for the project that includes dredging commercial channels that serve the Norfolk Harbor to accommodate super-size cargo vessels as well as widening channels to allow for two-way traffic.

The port is also doubling capacity at the Norfolk International Terminals railyard and aiming to become Virginia’s wind industry hub by leasing 70 acres of land at its Portsmouth Marine Terminal to Dominion Energy. Portsmouth is to be used as a staging space to deploy equipment for building massive wind turbines by Dominion, which plans to build its $7.8 billion Coastal Virginia Offshore Wind farm 27 miles off Virginia Beach’s coast with 180 giant propellers.

The Port of Virginia work “speaks directly to our customers, the ocean carriers,” port spokesman Joe Harris tells reporter Elizabeth Cooper in an Aug. 30 Virginia Business article. “In two years, you are going to be able to bring in bigger ships and bigger ships with more cargo.”

Port of Antwerp’s Europa Terminal expansion

$304.6 million

To keep up with rising demand, the Port of Antwerp authority in 2010 approved a 15-year, 1.6-billion-euro investment plan that would capitalize on a shuttered General Motors factory. And by the end of this year, the first phase of the three-phase, nine-year Extra Container Capacity Antwerp (ECA) project begins with a goal of optimizing existing capacity. 

Upon completion, expansion of the port’s Europa Terminal will allow two mega-max ships to operate simultaneously. That terminal’s current, 1,200-meter quay wall will be completely demolished, and the adjacent front quay will feature new flooring, shoreside power hookups and the installation of large container cranes.

“Containers are the most important segment at our port and a growth segment in the world; our yearly figures in 2020 prove this once again,” Port of Antwerp spokesman Lennart Verstappen recently told Port Technology. “And the trend toward more containers for transporting goods will only continue. This deepening is in line with our ambition to continue to grow as a port in a sustainable way and will contribute toward maintaining our position as a world port.”

Port Freeport Harbor Channel Improvement Project

$295 million

For an example of how government works slowly, we travel to Texas, where widening and deepening the channel at Port Freeport received initial congressional approval in 2014. The final chunk of joint funding arrived thanks to a 2018 voter initiative. And just when you thought the project was languishing, Port Freeport became one of two seaports nationwide to receive a “new start” designation in February 2020 for commencement of construction. 

The ceremonial groundbreaking for the Freeport Harbor Channel Improvement Project was finally held this past April 8—and not a moment too soon. The region’s ongoing industrial expansion fueled by the production of shale oil and gas, as well as the port’s proximity to fast-growing populations, necessitated late inning fast-tracking. The project should prolong Freeport’s status as a leader in the export of crude oil, natural gas liquids and chemicals as well as the create more jobs (279,780, per a 2019 Economic Impact Study by Texas A&M Transportation Institute) and total economic output ($149 billion; ditto).

Widening and deepening for today’s mega-fleets will take about five years to complete, which will coincidentally coincide with the 100th anniversary of Port Freeport being created by the voters of Brazoria County, who in 1925 recognized the importance of diverting the Brazos River so the region would have a reliable, deep-water port for the movement of commerce. “I am grateful to those who had the bold vision and fortitude to divert the Brazos River to give this area a deep-water port advantageous for economic prosperity,” says the port’s CEO Phyllis Saathoff, who obviously recognizes it takes a village and leadership when she adds, “Now it is our turn to deliver the deep-water port for future generations. . . . Our region will greatly benefit from this project, as well as our local, state, and national economies.”

Port of Baltimore dredging

$122.1 million

These days, you don’t see members of opposite parties shaking hands let alone rubbing elbows (thanks, COVID). But Maryland’s Republican Governor Larry Hogan and the nation’s Democratic Transportation Secretary Pete Buttigieg came together on July 29 to marvel at the recently expanded and improved upon Helen Delich Bentley Port of Baltimore.

Thanks to dredging operations completed in April to create a second, 50-foot deep container berth at Seagirt Marine Terminal, the port will be able to accommodate two ultra-large ships simultaneously by the end of this year. The project was hailed for receiving the kind of bipartisan support that the Biden administration was seeking at the time for the $4.5 trillion infrastructure plan that the House narrowly passed in late August.

As Buttigieg toured the port’s Dundalk Marine Terminal, Hogan remarked, “Truly, you could not have picked a better stop for your first port visit as transportation secretary, and your visit could not be more timely.”

Buttigieg noted that the infrastructure bill had a “blue-collar blueprint,” citing the example of the expansion of Baltimore’s Howard Street Tunnel to accommodate double-stacked rail cars moving cargo to and from the port and improving capacity from Charm City to rail lines along the entire East Coast. “So much of what we buy and sell is flowing through ports like the one we’re at right now,” he said. “Top of the line machinery, made in America.”

SSA Jacksonville Container Terminal berth enhancements

$104 million

Like the Baltimore project, the Jacksonville Port Authority (JAXPORT) improvements at Blount Island, where 700 linear feet of newly rebuilt deep-water berthing space was added, are the result of a public-private partnership. JAXPORT and SSA Atlantic are also making yard improvements and deepening the harbor.

Upon completion, the facility will feature two newly reconstructed 1,200-foot-long container berths capable of simultaneously accommodating two post-Panamax vessels. The berths are electrified to handle a total of 10 state-of-the-art environmentally friendly electric-powered 100-gauge container cranes, including three currently in use.

“These projects all work together to maximize Jacksonville’s logistics advantages for our customers and bring more jobs and business to Northeast Florida,” says Eric Green, CEO of the Sunshine State’s largest container port that’s also one of the nation’s top vehicle-handling ports. 

Port of Long Beach Middle Harbor Redevelopment Project
$1.5 billion

Under skies that were unusually dark and cloudy for summer in Southern California, Cordero, the Port of Long Beach executive director, manned a podium facing what appeared to be as many TV news cameras as breathing beings. 

“Here we have the Amazon state of mind,” he says. “And what does that mean? Create efficiencies, reliability and in the age of e-commerce, obviously consumers expect things tomorrow, and the supply chain is in a full-court press to create greater efficiencies. So certainly, for us at the Port of Long Beach, it was well worth the investment of $1.5 billion for what you see here this morning.”

As if on cue, Cordero is upstaged by unmanned cranes, gantries and vehicles ever so diligently moving cargo containers off the massive COSCO Andes that is docked behind him.

“Efficiency is everything,” Anthony Otto, the LBCT’s CEO, says during his trip to the podium. “We designed the yard so that we can move more TEUs per acre.” While a traditional container terminal typically handles 6,000 to 8,000 TEUs per acre, LBCT can process 12,000 to 15,000 TEUs per acre. “It makes us, the Port of Long Beach and every link in our supply chain more competitive,” Otto says.

The terminal includes a container yard, an administration building and an on-dock rail yard designed to handle 1.1 million TEUs annually and minimize truck traffic on local roads and freeways. Additionally, 14 of the most modern ship-to-shore gantry cranes line a new, 4,200-foot-long concrete wharf capable of welcoming three massive ships at once. 

“By any measurement, be it berth productivity, be it speed of trucks through our gates or the velocity of our rail system, which is the largest in North America, we have definitely set the bar for our industry,” Otto says. “Additional capacity means more cargo, which means more supply chain jobs, which means a strengthening of our regional and national economy. More land, more cranes, more berth capacity, just more of everything needed to better service the goods movement industry and to maintain the Port of Long Beach as the preferred gateway into the United States.”

He later alluded to the sight that irked that Newport Beach lady. “If you notice the ships that are anchored off shore, this additional capacity is badly needed right now. Trade is strong, and the capacity that we are adding here is really something that’s coming just in the nick of time.”

international

Making Inroads Overseas: Strategies for Winning International Business

While the U.S. may have the largest third-party logistics market of any nation, there’s plenty of global opportunity to capitalize on. Companies that can break into international markets could reap considerable rewards.

The rise of e-commerce and other internet-based businesses has made the world more interconnected than ever. Consequently, there’s a rising demand for fleets that operate between borders. Smaller, up-and-coming economies with less saturated markets pose an enticing growth opportunity, too.

While expanding into overseas markets can be highly profitable, it’s also often challenging. These six strategies can help companies overcome these challenges to win international business.

1. Research Ideal Markets

One of the biggest mistakes a company can make is expanding into new territory without researching first. Different countries come with different legal restrictions, economic considerations, and market atmospheres. Companies must understand these before choosing where to start their international growth strategy.

For example, Germany has the world’s highest-performing logistics market, which would make it seem like the ideal place for expansion. But since it’s also home to DHL, which holds 39% of the global market share, it may be hard to succeed there. Preliminary market research would’ve revealed that, informing more effective expansion.

Businesses should research the local markets in different countries to find the most profitable area to expand into. That includes looking at tax considerations, competition, and customer needs. Without considering all of these factors, globalization initiatives will likely cost more than they bring in.

2. Understand the Local Culture

Similarly, after deciding on the ideal market, businesses should understand any cultural differences they’ll encounter. Tapping into the local culture can make marketing initiatives more effective and help impress potential clients. Alternatively, if businesses don’t understand these differences, they may accidentally offend or disinterest customers and partners.

Understanding cultural divides can make or break a company’s success, especially when meeting potential international partners. For example, while it’s a rule of thumb in the U.S. to show up five to 10 minutes before a meeting, it may be longer or shorter in other countries. Not understanding that could hinder a meeting’s productivity.

Other countries may have differently structured workweeks and holidays that could affect business, too. The United Arab Emirates, for example, observes the weekend on Friday and Saturday, not Saturday and Sunday. Knowing this before going in can determine whether a business thrives internationally or struggles to get its footing.

3. Partner With Regional Businesses

Another crucial strategy for expanding internationally is partnering with overseas businesses. Companies based in the area will already have the cultural and legal knowledge needed to navigate the local market environment. They will also already have consumer and business connections, giving U.S. companies a foot in the door.

An important step in this strategy is to meet these potential partners in-person as much as possible. Taking the time and money to fly out to meet them shows a willingness to invest in their company. This can give businesses a leg up on any other competitors for the partnership.

Without a local partner, it can be challenging to succeed in a foreign market. Companies will have to establish their brand name, build a customer base, and navigate potentially complicated legal considerations. Foreign partners can cover all of these factors early, letting businesses get off the ground sooner.

4. Adapt Your Marketing Strategies

Since every country has its own culture and values, effective marketing materials are rarely universal. As such, logistics companies trying to expand into overseas markets must adapt their marketing strategies. Research and international partners can reveal local customers’ habits and preferences, informing more effective ads and promotions.

Large restaurant chains serve as excellent examples for adapting international marketing strategies. In France, McDonald’s offers a free illustrated book with every Happy Meal purchased on the first Wednesday of the month. This doesn’t make much sense in the U.S., but children in France don’t go to school on Wednesdays, making this an effective strategy.

Promotions that work in the states may not be as appealing overseas. Similarly, other countries may have holidays, customs, or trends that present unique marketing opportunities that wouldn’t succeed in America. If companies want to be as successful as possible overseas, they must adapt.

5. Localize Your Website

It’s hard to overstate the importance of having an appealing website in today’s market. In many countries, the number of internet users has doubled in the last three years, and websites often serve as customers’ first impressions of a business. While this may be true across borders, what constitutes an ideal website may not be as consistent.

Businesses must localize their sites to fit global audiences. The most obvious step in this process is translating all of the text, but that’s not all localization entails. There are also various cultural connotations and preferences about design and business practices to consider.

Some colors may be appealing in the U.S. but carry a negative connotation in other cultures. While English reads from left to right, not all languages do, so websites in some countries may need to be mirrored to account for this. Turning to contacts in these countries or localization firms can help account for these differences.

6. Capitalize on Local Resources

Many globalization strategies involve taking steps to navigate unique challenges in overseas markets. While these are crucial, the most effective international expansion efforts also look for other areas’ unique benefits. Every country has unique resources to offer, so businesses should take advantage of these opportunities.

One example of a company implementing this strategy is the grocery store chain H-E-B. When H-E-B went international, it bought blueberries from Chile and Peru, giving it access to fresh blueberries year-round. Capitalizing on these warmer climates helped the company expand its offerings, pushing revenue higher.

Businesses should look for what resources different areas have, such as relaxed tax codes or cheap transportation markets. Taking advantage of these instead of keeping business models the same across all countries will maximize international success.

Make the Most of International Expansion

As the world becomes more interconnected, global expansion becomes an increasingly enticing strategy. Companies that can capitalize on it early will see the most success in the future. These six strategies provide a roadmap for doing so.

Winning international business can be a challenge, but it also presents several opportunities. If businesses can act on these steps, they can expand into foreign markets more effectively. They can then enjoy all international business has to offer.

qatar

3rd Annual Qatar Trade Summit: A Month Away From Exploring Qatar’s Trade Opportunities

Bringing the economies closer to each has never been more imperative than in the post-pandemic period. With Qatar’s independent and robust economic growth, we are bridging the gap between the countries by gathering them under one roof to explore business opportunities.

The 3rd Qatar Trade Summit will provide a platform for industry leaders to embrace the new normal. Positioned on 9th and 10th November 2021, this event will be hosted in Intercontinental Hotel, Doha City, Qatar, where the nation’s key stakeholders will showcase exclusive development made in the past few years. The summit will accentuate the parameters attributing to the country’s vision in economic diversification.

Qatar has positioned itself as a self-sufficient and independent nation that has established diplomatic trade relations with many countries. Their new advancements in technology and innovation has placed them as one of the world’s leaders in the space of transportation infrastructure, building smart seaports and air cargos, improved supply chain and logistics, disruption in free zone innovations and implementing various technologies in trade finance for a holistic approach. Newer collaborations and investments are being made to welcome new players in the space of sports, financial services, logistics management, and retail industry to contribute to further economic growth under the Qatar Vision 2030. The upcoming FIFA world cup is the first step to the roadmap of many other initiatives that will transform Qatar’s economy and build stronger relations with the rest of the world. Qatar Trade Summit will host the contributors of this exponential growth within a month’s time to share their journey and strategies that will lead them to achieve the desired milestones.

Based on the theme “Facilitating Qatar Economic Surge beyond 2021” the summit will bring key concerns into the spotlight: technological advancements, recovering from the COVID-19 pandemic; accelerating the infrastructure developments to be prepared for FIFA World cup 2022; rethinking logistics and supply chain to meet the increasing import/export demand and building smarter ports for increased efficiency.

Under the government support of the Ministry of Commerce and Industry and Qatar Tourism, the summit will be hosting dignitaries such as H.E. Mr. Mohamed Hassan Al-Malki, Assistant Undersecretary for Industry Affairs, The Ministry of Commerce and Industry; Lim Meng Hui, CEO, Qatar Free Zones Authority; Rashid Bin Ali Al Mansoori, CEO, Qatar Stock Exchange; Heba Qadri, Managing Director, Qatar Sportstech; Mark Geilenkirchen, CEO, Sohar Port & Freezone, Oman; Glyn Hughes, Director General, The International Air Cargo Association (TIACA); Abdulaziz Al-Mikhlafi, Secretary-General, Ghorfa Arab-German Chamber of Commerce and Industry, Germany; Dr Olga Revina, Founder & Chairperson, Ukraine Qatar Business Council; Timo Hammaren, Head of Unit, D.G Trade, European Commission and many more from across the globe who will be indulging our guests in interactive presentations and panel discussions. The event will be showcasing cutting-edge solutions from our sponsored and supporting partners such as Qatar Tourism, QFZA, The Commercial Bank (P.S.Q.C), Hutchinson Ports Sohar, DHL Global Forwarding, Oracle, Ran Marine and leading media partners.

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About Organizer: © Qatar Trade Summit | Parul Rana | Email: info@nispana.com | Tel: +974 3383 4548 | Tel: +974 6677 4955 | +971 55 28 33112 | LinkedIn: Qatar Trade Summit | twitter: @tradeqatar