Developing NYS-Canadian Opportunities Focus 2010: Are You Ready for an Improving Economy? Watertown, NY James Fayle North Country Regional Director, ESD.

Developing NYS-Canadian Opportunities

Focus 2010: Are You Ready for an Improving Economy?Watertown, NY

James FayleNorth Country Regional Director, ESD

ESD Overview

Empire State Development

ESD is New York State’s primary agency for economic development

ESD Leadership

David A. PatersonNew York State Governor

Dennis M. Mullen Chairman & CEO

What does ESD do?

Partners with affiliates within the public and private sectors to create an environment that spurs innovation and drives economic growth and development, helping companies grow and compete in the global economy

Seeks ways to enhance the state’s competitive advantage as the world capital for industries ranging from finance and media to technology and agriculture

How Does ESD Help Business? Works closely with individual companies to:

o Identify creative solutions to challenging business problems

o Generate enhanced growth opportunities

o Assist in the achievement of their short- and long-term goals

Helps entrepreneurs and businesses:o Start a company in New York State

o Establish a presence in New York State

o Improve business efficiency through expanding and upgrading existing operations in New York State

o Retain and enlarge their workforce in New York State

o Compete more effectively and profitably in the domestic and international marketplace

Assists existing New York State businesses to expand operations and compete more effectively and profitably in domestic and international markets

Identifies capital for export expansion and job creation Offers consultant services, including:

o Providing customized market intelligenceo Distinguishing global trade leads o Identifying potential agents, distributors and sales partners

International DivisionCreates opportunities for businesses to

compete in the international marketplace

Helps foreign businesses relocate to or establish a presence in New York State

ESD Global Offices

Trade with Canada

Canada’s Trade with the U.S./2006 Imports: $218 billion Exports: $359 billion

Canada’s Trade with NYS/2006 Imports: $14.4 billion Exports: $28.7 billion

Trade with CanadaCanada is one of New York’s largest trading partners

with annual two-way trade exceeding $43 billion

Two-way trade of more than $1.58 billion in goods and services each day

Open border policy 60% of all Canadian imports come from the U.S. 80% of all Canadian exports go to the U.S. Canada is the world’s seventh largest market

economy Canadian real GDP $1.1 trillion

Canada-U.S. Statistics

Canada-U.S. trade relationship largest in world U.S. exports to Canada have grown over 65% since 1995, thanks

to NAFTA Business practices and attitudes are similar Proximity reduces costs, transit times Language compatibility Sound financial and distribution systems By starting to export to Canada you will soon be looking at other

international markets

Why Canada?

Motor vehicle engine and parts ($957) Engines, turbines, power transmission ($841) Semiconductors, electronic components ($493) Motor vehicle parts ($316) Computer and peripheral equipment ($312) Chemical products ($301) HVAC ($230) Jewelry ($205)

Other: instrumentation, gold, silver, electrical equipment, plastic products, pumps, compressors, sawmill-related, pharmaceutical and medicine

Largest NYS Export Sectors to CDN(2006, in millions of dollars)

Approximately 2 million jobs in both the U.S. and Canada are directly related to cross border exchange of goods and services

Trade represents a chance for manufacturers to enlarge their markets and increase products

Generates new jobs, tax revenue and keeps companies located in their home

Why Export?Success for both countries

Collaborative Successes

The Cross-Border Exchange InitiativeoFostering collaboration in the medical industry

Photonics Research Ontario and University of Rochester joint alliance

ESD Toronto has co-operated with Ontario Export Inc. for “Who is Who in IT in Ontario” to bring a delegation of high-tech firms from Buffalo, Rochester and other cities to Ontario for partnering

Public-Private Partnerships

American Orthopedic Appliance Group (Cornwall, NY), a manufacturer of Thera Glove Hand and Wrist Support, signed national distribution agreement with North Jefferson of Vancouver, BC

Orelube Corporation, (Plainsview, NY), a manufacturer of industrial lubricants, reached an agreement with Davley Darmex Lubricants of Mississauga, Ontario to supply Davley with private label lubricants

Nova Bus (Quebec) recently opened an assembly plant to manufacture buses plant in Plattsburgh, NY

Hundreds of Canadian firms do business in NYSo Pratt and Whitney, Bombardier, Quebecor, MDC Partners Inc., PBB Global Logistics, JDS Uniphase,

Brookfield Properties, Trans Canada Pipelines, Bric Engineering, Metro Paper, Allen Vanguard, banks, and more

Other Business Examples

ESD Assistance

Funding and Support Grants

o Reduces the costs of acquiring or improving hard assets and enhances business operations

Direct loanso Offers below-market rates to lower overall blended rates with conventional

sourceso Lowers the cost and increases the accessibility of capital

Tax incentives o Available to certain firms in specific locations or targeted industries o Attracts new businesses and enables existing businesses to expand and

create new jobs Technical support

o Allows businesses to operate more efficiently and compete more effectively Entrepreneurial assistance Job training International trade expertise

Market entry Agent/distributor/rep search Market overview Trade shows, trade missions Contacts and company lists

Services of Canadian OfficesNYS offices in Toronto & Montreal promote NYS

interests through international trade and FDI

Provides customized research conducted by our trade specialists at home and abroado Foreign-based offices provide local intelligence for the markets you select and

identify the best possible parties to represent your company’s sales interests abroad

Offers a range of for-fee services, such as:o Agent-distributor searcheso Distribution channel analysiso Customized market researcho Identification of strategic venture partnerso Competitive pricing analysis

Export Marketing Assistance ServiceHelps NYS companies find sales

representation abroad

Matching grants to advance the export prospects and global competitiveness of small and mid-sized firms through:o Preparation of customized global market, product, industry and

engineering studieso Participation in the international marketplace, notably through selected

overseas trade showso Implementation of effective export strategies

Global Export Marketing AssistanceMatching grant that helps businesses

expand through increased export activity

CEO training program to improve exporting skills Weekly over an eight-month period Brings together various resources to focus on issues ranging from

international financing and strategic marketing plans to distributor contracts and differing business cultures

Formal academic instruction, experienced industry professionals One-on-one consulting to develop an international business plan

ExportNYInternational business institute for key executives

James FayleNorth Country Regional Director

Empire State Development

315-785-7932

[email protected]

www.esd.ny.gov

For More Information