CHICAGO – Gov. Rod R. Blagojevich today praised five Illinois businesses for their success during a recent state-led foreign trade mission to Panama, which was the first time an Illinois delegation has traveled to the Central American country. The Governor highlighted the efforts of Advanced Power International, LLC, a provider of power quality and protection equipment for the industrial, commercial and telecommunications markets based in Carterville; and Diagraph MSP, a manufacturer of quality marking and stenciling products based in Marion, which both made their first trip to Panama and established significant contacts and business leads. The mission, which was held from March 5-10th, marked the latest in a series of foreign trade missions to countries across the globe designed to match Illinois companies with business opportunities abroad.
“When it comes to foreign markets seeking quality products and services, Illinois businesses are in high demand, so we must continue our efforts to connect our many creative companies to the global community. Through trade missions, like this recent trip to Panama, we are better able to engage our small and medium-sized businesses to the wide ranging global opportunities and help them forge lasting partnerships that can result in major business growth and more jobs here at home,” Gov. Blagojevich said.
The Illinois Department of Commerce and Economic Opportunity’s (DCEO) Office of Trade and Investment (OTI) led the trade mission to Panama, where participants took part in the Expocomer Trade Show, one of Latin America’s largest international trade exhibitions. This was Expocomer’s 25th annual trade show, which allows companies to exhibit products and services to local and regional markets in the areas of foods, textiles, construction, technology and services. The trade mission provided a number of opportunities for participants to access the growing regional market and establish profitable commercial relations through individual appointments with prospective business partners throughout the region. Participants also took part in a networking reception at the U.S. Embassy in Panama, a briefing breakfast organized by the U.S. Commercial Service, a trip to the Panama Canal and a visit to the Colon Free Trade Zone.
The participating companies on the trade mission gathered sales leads, met with potential agents, representatives and distributors now under consideration, and developed joint ventures and licensee leads. OTI staff also assisted with the translation of promotional materials into Spanish, logistics support and interpreter services.
There were twenty-four arranged appointments among the five companies, generating fifty-three sales leads, nineteen agent/representative leads, two joint venture leads, and nearly $200,000 in expected sales within the next twelve months as a result of the mission.
As a result of its one-on-one meetings, Advanced Power International, LLC has been able to begin building relationships with potential distributors and client customers for power quality equipment in Latin America. The company obtained sixteen leads for potential sales and representation during the mission, and it expects to increase its sales to Latin America by up to $100,000 within the next year. Diagraph MSP, which is owned by Illinois Tool Works, was able to meet with ten potential customers and anticipates selling up to $30,000 in Panama as a result of the mission.
“The Panama trade mission was an excellent business trip for us, which helped us make several key contacts and find new distributors in Panama and Colombia. We received our first purchase order from Panama one month after the trip, and will be traveling to Colombia in a few weeks to give several seminars with our new distributors. None of this could have been done without the support of the state of Illinois. As a small business, we are very grateful to have this opportunity to tap into new markets and increase our sales,” said Samir Velarde, Managing Director, Advanced Power International, LLC.
“This trip to Panama was our first trade mission, and we had a very positive experience meeting with potential business partners from all over the region. The services provided by the state of Illinois were invaluable, including converting our flyers to Spanish, creating posters, logistics support and providing interpreter services. We look forward to growing our business through new partnerships overseas,” said Kathy Halstead, Direct/International Sales Manager, Diagraph MSP.
Panama is well recognized as an important trading partner in Latin America because of its strategic location, the Panama Canal and the Colon Free Trade Zone, the second largest free trade zone in the world. Additional advantages of Panama include the U.S. dollar as its local currency and CAFTA, which took effect last year, where import tariffs are now much lower for U.S. products. The Panamanian economy grew an impressive 7.5 percent in 2006 due to external and internal demand. U.S. exports to Panama reached $3.7 billion in 2006.
“Illinois has experienced unprecedented growth in exports over the last several years, and I commend Gov. Blagojevich and his economic development strategy for taking the initiative to help open up markets across the globe for Illinois companies. I congratulate Advanced Power International and Diagraph MSP as they continue growing their businesses through international trade,” said State Senator Gary Forby (D-Benton).
“Gov. Blagojevich and I believe we must continue to think globally if we are going to help Illinois companies compete and thrive in the future. I am encouraged by the success of these two Williamson County companies in accessing the global market and taking full advantage of the many opportunities that exist abroad,” said State Rep. John Bradley (D-Marion).
Illinois reported more than $42 billion in exports in 2006, a 17.3 percent increase from 2005, the largest dollar figure increase in a single year, according to WISER, the World Institute for Strategic Economic Research, who compiles its information from the US Census Bureau, Foreign Trade Division. Since 2002, Illinois exports have grown by $16.4 billion, a 64 percent increase. Illinois is also now the fifth largest exporting state in the country, which is its highest ranking ever. Illinois also currently ranks fifth in the nation in foreign direct investment, which has created nearly 236,000 Illinois jobs and represents nearly 5 percent of the state’s private-sector workforce, according to the Organization for International Investment.
Under Gov. Blagojevich, OTI has led 47 foreign trade missions. These missions have hosted more than 285 participants and have included trips, often multiple times, to countries such as Australia, Canada, Chile, China, Germany, India, Israel, Japan, Mexico, Poland, Spain and South Africa.
“Whether at home or abroad, we’re committed to identifying new opportunities for Illinois companies to grow and expand. Gov. Blagojevich understands the importance of opening new markets for Illinois businesses, and these trade missions will continue to help introduce Illinois companies to the tremendous opportunities that exist overseas that will put more people to work,” DCEO Director Jack Lavin said.
Gov. Blagojevich’s Opportunity Returns regional economic development strategy is the most aggressive, comprehensive approach to creating jobs in Illinois’ history. Since a one-size-fits-all approach to economic development just doesn’t work, the Governor has divided the state into 10 regions – each with a regional team that is empowered and expected to rapidly respond to opportunities and challenges. Opportunity Returns is about tangible, specific actions to make each region more accessible, more marketable, more entrepreneurial and more attractive to businesses. It is about upgrading the skills of the local workforce, increasing the access to capital, opening new markets, improving infrastructure, and creating and retaining jobs. Opportunity Returns is about successfully partnering with companies and communities, both large and small, to help all of Illinois reach its economic potential.