News Releases for October 2004
October 29, 2004
Contact: Lance Gaebe 701.328.2200, Cherie Harms 701.319.2275
Hoeven To Expand North Dakota Trade Office
Governor Proposes Up To Half Million Dollar Increase, Calls For Private Sector Match
BISMARCK, N.D. - Gov. John Hoeven today announced that he is proposing a substantial increase in his upcoming budget for the North Dakota Trade Office, part of the North Dakota Commerce Department. Lt. Gov. Jack Dalrymple, who chairs the trade office board, made the announcement Thursday evening at a meeting with exporters and export service professionals in Fargo.
The Governor will propose an increase of up to $500,000 in state funding for the recently created office, and asked North Dakota exporters and export service professionals to match that amount for a total of $1 million. Hoeven cited research regarding trade opportunities compiled by the North Dakota Trade Office and the success of recent trade missions as the impetus for the increase.
“The successes of recent trade missions, as well as considerable targeted research, make clear that expanding and exploring North Dakota trade opportunities in the global market can help to grow our economy and provide a good return on our investment for North Dakota citizens,” Hoeven said. “Now, we need to enlarge our efforts in cooperation with the private sector and build on our initial achievements.”
The announcement comes on the heels of news that a delegation of North Dakota businesses returned last week from the People’s Republic of China with a $6 million deal to sell alfalfa products and equipment, as well as academic exchange agreements with Chinese universities. The trade missions to Cuba, Taiwan, Japan and China have collectively resulted in initial sales of more than $12 million for North Dakota companies to date. Most recently, Fargo’s PRACS Institute, a pharmaceutical testing firm, secured a $2 million contract for 2004 and expects a larger contract next year as a result of the company’s participation on a trade mission earlier this year to Taiwan and Japan.
The North Dakota Trade Office, whose purpose is to expand North Dakota exports through collaborative efforts, built a business model designed to address the needs and barriers identified in their research. The additional funding in Hoeven’s budget will enable expansion of five key trade office activities:
- Research and Education: The Trade Office will acquire and enhance online and live coursework through university research centers to certify exporter staff with the USA Export Institute. In addition, market research and feasibility studies for exporters will be made available.
- Communications: The office will work to promote exporting, handle public relations and direct advocacy for exporting issues.
- Administration and Systems: The office will maintain an export information Web site and databases, and develop contact management solutions.
- Expanded Trade Missions and Events: The Trade Office will coordinate new trade missions with select exporters to nations earmarked for their high potential to import North Dakota products.
- Exporter Service Network: The Trade office will build an export service network, including a directory and Web portal of reliable export professionals who will provide export services to North Dakota businesses. A separate export management center will provide access to expert international business staff focused on developing export expansion opportunities, manage export relations and consult with North Dakota businesses.
“Today we are asking for support and pledges from export service providers and others with an interest in seeing this sector of our economy grow to help match the Governor’s commitment,” said Susan Geib, Executive Director of the North Dakota Trade Office. “Our goal is to raise a portion of our funding from each of three entities: the private sector, state and federal government.”
Since March, the North Dakota Trade Office has been researching the status of exporting out of North Dakota through market studies, a series of roundtable discussions, one-on-one interviews and e-mail solicitations. Researchers studied Vermont, Iowa, Kansas, Minnesota and Wisconsin, all of which rank among the top 25 manufacturing exporting states and all of which have similar demographics, geography or export products. More than 400 businesses across North Dakota have been identified as current exporters, according to Geib.
Geib also said the research shows that if the state could increase its export volume by just one percent, it could bring in $30 million of new money. Thirty million dollars to North Dakota’s economy, she said, would create hundreds of jobs and dozens of new businesses.
“Exporting has grown steadily over the last few years, adding depth and diversity to North Dakota’s economy, but there is still enormous potential for expansion out there,” Geib said. In 2003, she said, North Dakota shipped goods worth a total of $2.8 billion to 115 foreign markets; manufacturing exports totaled $854 million and agricultural exports, $1.9 billion.
“International trade clearly represents a significant opportunity for North Dakota citizens,” Hoeven said. “We’re stepping up to the opportunity, and we’re asking North Dakota exporters and export service professionals to step up with us to continue the work of the trade office.”
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