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17 good reasons for Oklahoma companies to consider exporting

While Oklahoma businesses may have difficulty picturing how to best secure stable and reliable customers outside of the U.S., there are incentives, especially for small businesses, to explore broadening their customer base to international markets. According to the latest white paper from the Export-Import Bank of the United States, small businesses that export products are 17 percent more profitable than those that do not.

If you’re an Oklahoma small or medium sized business ready to explore these options, check out the EXIM publication that helps firms determine who they’re doing business with and how they can ensure full and timely payment.

Check out “Export Evaluation: 7 Things Every Foreign Buyer Credit Report Must Have and Why.”

If you’ve still got questions as an Oklahoma business owner interested in learning more about exporting abroad, reach out to us at info@okgit.com and we’ll point you in the right direction.

 

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Oklahoma-based consul helps count votes of Peruvians abroad

With a country as large as the United States, diplomatic representatives from other nations must allot time and money in major American cities to post their professional diplomatic corps. Whereas embassies are located in the capitol of Washington D.C., places like New York City, Los Angeles and Houston are common locales for foreign diplomats called Consul Generals. Yet another layer of contact also exists for these nations, with a corps of Honorary Consul in communities across the U.S. acting as official points of contact outside of major American cities. In Oklahoma City this summer, Peruvian Honorary Consul Enrique Villar-Gambetta spent several days hosting a polling place for Peruvian citizens casting ballots for their home country’s presidential election between Pedro Pablo Kuczynski and Keiko Fujimori. OKGIT.com spoke to Villar-Gambetta about these responsibilities.

 

Tell us a bit about your role organizing the votes for Peruvian expatriates here in Oklahoma for Peru’s presidential election.

“It was my first experience as a consul from my country being in charge of a Peruvian general election for the new president and members of the Peruvian Congress. In normal circumstances my jurisdiction is the State of Oklahoma. I was in charge of the organization and elections in three states – Oklahoma, Kansas and Arkansas – which according to our records, equaled around 1,700 electors.

“The location for that event was Oklahoma City. Catholic Charities of OKC gave us tremendous support.”

 

Enrique Villobar

Peruvian Honorary Consul Enrique Villar-Gambetta

What is the process like holding an election for Peru in Oklahoma City?

“First, the Peruvian Embassy in Washington D.C. contacts the U.S. State Department communicating that this official act will take place. Once it is official, I sent communications to the mayor of OKC and to the Oklahoma County Sheriff’s office to inform them this electoral process will take place in the city.”

“Through diplomatic pouch from Lima, Peru, I received the large list of electors, which we convened. In this election, Peruvians had to cast votes in two rounds. The first one was on April 5; the second one on June 5.”

“The winner in the second round of elections was Pedro Pablo Kuczynski, of the PPK. He is a well-known Peruvian economist. He studied economy, politics and philosophy at Oxford and has a master’s degree from Princeton. He lived a long period of time in the U.S. and worked in the World Bank, among other entities in New York.

 

What was the preparation process like to hold an election, including the day of?

“For this election we worked closely with the Consulate General of Peru in Dallas, Texas. They were in charge of the elections in Dallas, and we coordinated actions. The day of the election, as people arrived to vote promptly at 8 a.m., we had already set up teams to meet them and direct them to their polling tables. The team members communicated through radios because we were on different floors. We also had a team to aid voters with disabilities. All went smoothly and we were able to close the tables at 4 p.m., as instructed by Peruvian Law.

“During the event there were a few issues that had to be resolved. As honorary consul I was in charge at the site, having to accommodate without interfering with the voting process in accordance with Peruvian law, which governs the whole procedure. The consul is the last official who can solve a question in the field.

“I spoke with many people, young and old on Election Day. I was very pleased to sense the spirit that motivated them to give their vote, some after many years of being away from Peru. Some drove seven or eight hours to cast their vote, as proud and concerned Peruvians. Others had not visited Peru for ten or more years, but they still wanted to be a part of it.”

 

Enrique Villar-Gambetta is the Honorary Consul for Peru in Oklahoma. He has been a member of the Oklahoma Governor’s International Team since 2013, and currently practices law in Lima, Peru, where his law offices are located. He specializes in foreign investment, corporate law, criminal law, and international commercial relations. He is advisor in international business to a very important and large list of clients in Peru and other countries.

(Banner photo of the site of the Peruvian expatriate polling location, Catholic Charities of Oklahoma City, photograph by John Hill.)

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Resources to ensure payment for Oklahoma export sales

Shipping product or payments abroad can be a daunting proposition for first time Oklahoma exporters. Even established business relationships can face challenges when doing business from a distance should an international partner file for bankruptcy, run low on cash or fail to pay an invoice. Concerns about resolving these issues keep many Oklahoma exporters from exploring options outside the U.S., but there are resources to ensure that risks businesses take are covered should the worst happen.

Below are three options for insurance that help protect the investment that Oklahoma exporters make when doing business abroad.*

 

meridian-logoMeridian Finance Group – Over the past 20 years Meridian Finance Group has helped hundreds of companies increase their sales using accounts receivable insurance. All policies brokered by Meridian are backed by top-rated credit insurance companies. We offer policies from every underwriter, enabling us to quote the most competitive terms and premium rates in the market. More significant than Meridian’s ability to place coverage is the comprehensive support we provide to our customers.

 

 

 

EHEuler Hermes – Boasting itself as the world’s leading provider of trade credit insurance, Euler Hermes provides the insight and resources you need to manage, maximize and protect your receivables. When you initiate a business credit insurance policy, their experts analyze your customers’ creditworthiness and financial stability. We then assign them specific credit limits; these are the amounts we will indemnify if those insured customers fail to pay. Our underwriters are industry specialists who will work closely with you to deliver in-depth credit analysis and ongoing account monitoring to provide early warning of potential credit risks before they become a loss.

 

 

EXIMThe Export-Import Bank of the United States – If you’re a tax payer, you’re already invested! The EXIM Bank’s Export Credit Insurance empowers American exporters to safely offer competitive open account terms to international customers, while protecting against nonpayment. They offer policies featuring free credit analysis of foreign buyers, streamlined processing and no up-front costs: no advance premium, no first-loss deductible—nothing owed pre-shipment. You pay only for what you ship, after you ship it.

 

 

 

* The Oklahoma Governor’s International Team does not endorse the services of the above organizations.
(Photo credit to  Stan Shebs.

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Export potential for Oklahoma companies with Israel

Shared from our friends over at GlobalTrade.net, Oklahoma-based companies have an opportunity to expand their business interests with trade partners in the eastern Mediterranean and Middle East. According to the latest country report from GlobalTrade.net, trade between the U.S. and Israel has expanded eightfold since the signing of the countries’ free trade agreement.

As noted in the report, “while technical barriers persist for agricultural goods, Israel has been removed from the watch list of countries not adequately protecting intellectual property rights, opening the way for new business opportunities.”

Navigating those technical barriers might be a concern, but for Oklahoma companies there are partners available right here at home that may help facilitate a smooth transition. Current OKGIT chair Susan Robertson, head of the Oklahoma Israel Exchange (OKIE), is just one of the partners available for Oklahoma firms interested in establishing ties with Israeli commercial and trade partners.

Read the full report on Israel from GlobalTrade.net here.

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The Trans Pacific Partnership and Oklahoma

While the campaign trail has been littered with debates about the efficacy of free trade agreements, including the proposed Trans-Pacific Partnership, the details of these agreements are difficult to decipher for the average Oklahoman. Thanks to our partners at the U.S. Department of Commerce’s Oklahoma City office, the numbers and details of Oklahoma’s connections to TPP countries is visible.

Download

Download the infographic.

Some of the more interesting figures include:

  • 52 percent of Oklahoma’s goods exports went to TPP countries in 2014
  • 1,780 companies from Oklahoma exported goods to TPP countries in 2013 – 83 percent were small and medium sized companies

To learn more about the potential impact that the TPP will have on Oklahoma, click on the image for the full infographic. To learn more about the Oklahoma’s U.S. Export Assistance Center, get in touch with OKGIT member Marcus Verner.

 

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Insurance and tax credit assistance available to Oklahoma exporters July 26

Available through the EXIM Bank of the United States of America on July 26, Oklahoma exporters can log in from the comfort of their offices or home to learn about credit insurance and tax credit assistance when shipping their products abroad.

Register for this free webinar taking place at 1 p.m. Central Standard Time here.

EXIM will host a brief, one hour webinar on IC-DISC and Export Credit Insurance. For those of us outside the complicated realm of federal government-inspired acronyms, IC-DISC is an IRS export tax credit program that helps small and medium sized American firms reduce their tax burden.

Presenters will include:

  • Jennifer Simpson – Regional Director, EXIM Bank
  • Paul Ferreira – President, Export Tax Management
  • Adrienne Selko – Panel Moderator, Senior Editor at IndustryWeek

If you think your firm may be among the 50 percent of American SMEs who are overpaying on their export taxes, this is the webinar for you. Link to the registration page here.

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Spiers New Technologies brings international perspective to Oklahoma

While Oklahoma’s economic fortunes have long been tied to the energy industry, the state’s ability to draw in new and emerging industries has been a particular focus of economic development and political leaders. One Oklahoma-based company, Spiers New Technologies, is one firm involved in the emerging sector of battery refurbishment and manufacturing. Its founder, Dutch-born Dirk Spiers, spoke to the OKGIT.com about opening his business in the Sooner State and its plans for future international expansion.

Tell us a little bit about your background before you began your current endeavor?

“I’ve done a lot of things in my life:  Foreign exchange, advertising and marketing, sports marketing, business Development. That, probably, is a short list.”

Dirk Spiers

Dirk Spiers

You were the director of international sales for ATC Drivetrain, is that how you initially got into the international business market?

“Yes, I did business development for ATC Drivetrain probably ten years or more ago, but I have been international my whole life. I think most people (born) in the Netherlands are international. You start to learn different languages when you are around 10, you travel, you watch foreign TV. I have been on every continent, traveled or did business in most places. So I have been ‘international’ – whatever that means – for a long time.”

How did you end up in Oklahoma City of all places?

“I wonder that myself. I was living in the Netherlands again for a few years and then I got an offer from an Oklahoma City-based company to join them. It was one of those moments. I said ‘yes’ and moved to Oklahoma City. It was a bit of a culture shock, although I have to say that Oklahoma City is improving a lot.”

Your business Spiers New Technologies is growing, with planned openings in California and the northeast. What about Oklahoma makes this a place to conduct business in addition to these other locations?

“We probably will first expand into Europe and China, I see that is happening first.

“We love California, we believe it is a very forward looking state, it has a healthy budget, it is not afraid to make big bets and it is leading the world in many ways. I used to live there and I miss it. For a business like us, that environment is very business friendly.  But it is also a victim of its own success. Traffic, costs, just the sheer number of people is overwhelming. That is an opportunity for Oklahoma.”

“We are now based in Oklahoma City, which has the advantage of being centrally located in the U.S. We do a lot of logistics and for that it is great to be in the middle of the country. Also we managed to assemble a great team of operators, technicians and engineers. For now it is home. We hope it will continue to improve, become more business friendly, more forward looking with a more diversified economy.”

How many employees do you have at your current Oklahoma location? Any plans for a further expansion?

“We are constantly expanding; sometimes I wish we could catch our breath a bit before the next growth spurt. For now we are flat out and I am not complaining. We more than doubled in size this year alone and currently have around 40 employees. 18 months ago it was one.”

Can you elaborate on what some ways you believe the state could improve its investment climate to international firms?

“What I mean by ‘Oklahoma needs to diversify,’ is that it should not isolate itself. It should attract more, yet different business and help startups by creating a more entrepreneurial culture. The legislature needs to be more cooperative and more aware of the bigger – international – picture. Being pro-business means a lot more than cutting taxes at every opportunity and being conservative. I don’t mind paying more for a better product, I don’t think anyone does. It is all what you get for it.

“The growth of this state can only come from the outside, meaning you need to apply and think on an international level instead of inward looking and doing the ‘same old, same old’.

“Optics and reputation matter too.  In recent years, when people who live outside this state read about Oklahoma, it has been about executions, tax and education cuts taking place simultaneously, our recent earthquake issues.

“People from the outside, especially outside the U.S., they can’t understand it. It puts them off.  I’m from the Netherlands, which is very susceptible to the effects of climate change. When our leaders grandstand and openly ridicule scientific facts in public, it hurts us as a state and sets us back. You’d be amazed how many emails and calls I get from all over the U.S., Europe and Asia when that happens.

“That reputation does have an impact on Oklahoma’s potential, I saw it firsthand. Some bright engineers we were trying to recruit, they left the state because of this perception, and stuff like this is holding us back. Oklahoma should be at the center of the world, not at the edge”.

Given your international business experience, what advice would you give to international firms or professionals considering doing business here?

“That is difficult to answer. It would depend on your business, what sector are you in, what stage of your growth are you in. There are plenty of advantages, but also some disadvantages. People are very friendly, you are central and it is very easy to get connected. You have short lines to everyone. I love that here.”

“I wish that the legislators in the capitol would be a bit more forward looking and focus on the issues which are really meaningful, rather than try to just score political points. Sometimes I am amazed what is going on. I think a lot of international companies will feel similarly.

“Pragmatism is often missing. We need to be careful that we don’t isolate ourselves. We need to look into the future and embrace it. See it as an opportunity, not a threat. It is better to lead than to eventually follow and compete on margin. There is more value to be made in new opportunities, markets and segments than there is in optimizing decade’s old business models. Some of the country’s biggest businesses did not exist 20 to 30 years ago. It is better to be a growing Netflix than huge a Blockbuster. Progress is inevitable and it is better to lead than to follow. However hard it is. And that is the Oklahoma spirit”.
Spiers New Technologies performs battery life cycle management of advanced battery storage packs. Working with electric car manufacturers, Spiers New Technologies grades and remanufactures used high-performance batteries. To learn more about Spiers New Technologies visit www.spiersnewtechnologies.com or email Dirk@Spiers.com.

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Growing opportunities in Morocco for Oklahoma firms

Shared from our friends over at GlobalTrade.net, Oklahoma-based companies have an opportunity to expand to one of the U.S.’ growing trade partners with access to the wider Mediterranean. According to GlobalTrade.net’s latest country report,  “trade between the United States and Morocco totaled slightly above $2.6 billion in 2015. The United States exported a total value of $1.6 billion and imported $1 billion worth of goods…

“The United States export mainly apparel and food manufactures, electrical equipment and appliances, mineral fuel and oil as well as cereals. Imports from Morocco are mainly fertilizers, raw materials (salt, sulfur, earth and stone), electrical machinery and woven apparel.

“New opportunities for business can be found in particular in agricultural products, textiles and the banking sector.”

For Oklahoma agriculture exporters, especially wheat farmers coming off a better than expected 2016 summer harvest, the USDA’s forecast for nearly 3 million tons of wheat imports (up from 2.8 initially predicted) into Morocco is a positive.

To read the full GlobalTrade.net article, please click here.

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Brexit impact on Oklahoma

It seems that the political situation in the United Kingdom changes by the hour following the late-June referendum sending the U.K. out of the European Union. Despite trade between the U.S. and U.K. accounting for .5 percent of the former’s economic output, the interconnected nature of global markets and long cultural and historical ties between the two nations means that the impact will ripple across the Atlantic.

Naturally, global stocks markets have been bruised by the uncertainty, but closer to home, Oklahoma firms will also face challenges in the coming months as a result of the Brexit.

Exporters with customers inside the EU face challenges with the rising dollar, the increased value of which compared to the British pound, makes U.S. goods more expensive in Europe. The unclear regulatory environment, specifically for American firms with manufacturing operations inside the U.K. whose products are shipped to EU markets, may result in these firms facing higher costs in terms of items clearing customs and increased tariffs.

On the opposite side of the coin, for Oklahoma firms importing items from international producers, the influx of cheaper goods has the potential to benefit consumers here at home.

While President Obama’s pre-Brexit prediction that the U.K. would go to the back of the line if it left the EU in terms of a free trade agreement with the U.S., Speaker of the House Paul Ryan broached the possibility of the island nation joining NAFTA on June 28. Though no announcement of such a prospect emerged from the NAFTA leadership summit being held in Canada the following day, the addition of the U.K. would impact American businesses.

The combination of anemic domestic hiring numbers in the past two months combined with uncertainty in global markets may result in the U.S. Federal Reserve delaying its interest rate increase plan. According to Bloomberg, “Fed Chair Janet Yellen had been saying that an increase could be appropriate “in coming months,” but that language has been conspicuously absent from her speeches following a weak May jobs report.”

For Oklahoma’s small businesses and entrepreneurs though, the Fed’s delay could provide a short-term benefit. As noted in Forbes, “small business owners and aspiring entrepreneurs still benefit from low interest rates, relatively loose purse strings, and the efficiency of borrowing thanks to financial technology advances.”

For the time being, Oklahoma firms have an excellent resource for all of their questions through OKGIT partner Karen Bell, British Honorary Consul in Houston, whose diplomatic jurisdiction include Texas, , Arkansas, Louisiana and Oklahoma.

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OKGIT’s Ian Ogilve presented with Governor General’s Medallion

One of the Oklahoma Governor’s International Team’s own received a distinguished award from Queen Elizabeth’s representative in Canada in late May. Canadian Governor General David Johnston presented OKGIT member and dual American-Canadian citizen Ian Ogilve with the Governor General’s Medallion during a visit to the Sooner State on May 28, 2016.

Ogilve was honored for his service in fostering closer ties between Oklahoma and Canada, in recent years helping spearhead the first visit of Canadian Consul General Sara Wilshaw to Oklahoma. Of interesting note, Governor General Johnston’s 2016 trip to Oklahoma was the first by an individual in that office. The governor general is, on the advice of the prime minister of Canada, appointed by the reigning British monarch to carry out the crown’s constitutional and ceremonial duties in the commonwealth realm. The office is non-partisan and also serves as the Canadian Armed Forces commander in chief.

On May 28, Governor General Johnston visited the Oklahoma capitol hosted by Chris Benge, Oklahoma Secretary of State and Native American Affairs in the Capitol Blue Room.

Left to right: Michael Carolina of OCAST, John Westerheide of GE Global Research Center of Oklahoma City, Scott Meacham of i2E, Sir David Johnston the Governor General of Canada, Oklahoma Secretary of State Chris Benge, Consul General of Canada in Dallas Sara Wilshaw, Jim Nickel of Global Affairs Canada, Stephen McKeever Oklahoma Secretary of Science and Technology.

Left to right: Michael Carolina of OCAST, John Westerheide of GE Global Research Center of Oklahoma City, Scott Meacham of i2E, Sir David Johnston the Governor General of Canada, Oklahoma Secretary of State Chris Benge, Consul General of Canada in Dallas Sara Wilshaw, Jim Nickel of Global Affairs Canada and Stephen McKeever Oklahoma Secretary of Science and Technology.

The same day, the governor general wrote an op-ed for The Oklahoman, which can be read here on fostering closer American-Canadian cultural and economic ties.

The ties between Oklahoma and Canada emblematic of the U.S.-Canadian relationship, with Canada’s role as the U.S.’s largest export market, more than 50,000 jobs in Oklahoma depend on the $6 billion trading relationship. As the governor general noted in his op-ed, a significant portion of that trade involves the oil and gas industry.

“Energy is an important component,” he wrote. “Canada contributes to North American energy security, with Canadian oil joining crude from Oklahoma, North Dakota, Texas and other states at North America’s oil supply hub at Cushing. Meanwhile, more than half of Oklahoma’s exports to Canada consist of equipment and machinery. We’re also partners in aerospace, agriculture and a growing number of science, innovation and education initiatives.”

(Top photo: Consul General Sara Wilshaw (left) and His Excellency the Right Honorable David Johnston (right) present Ian Ogilve (center) with the Governor General’s Medallion.)

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