International Business Development International Trade Survey
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1 International Business Development 2007 International Trade Survey
2 Overview What we have done How we accomplished these tasks Why these tasks were important Results Plan of action Additional project
3 Survey of International Activity Targeted manufacturing businesses in the St. Petersburg area Surveyed to find out international trade activity
4 Importance of Survey Strengthen businesses Increase sales Discover and utilize foreign markets Create awareness of St. Petersburg s foreign trade zone Understanding our local businesses and their needs Promoting international activity
5 Formulation of Survey Researched similar surveys conducted Called other cities nation-wide Compiled information and drafted survey
6 Methodology Population of 717, 115 responses or 16% response rate Mode of response was self-selection Self-selection error was somewhat mitigated by follow-up calls
7 Engage in International Trade No 38% Yes 62%
8 Trade Activities Import 20% Both 46% Export 34%
9 Frequency of Countries 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 57.7% 53.5% 46.5% Top Ten Trading Partners 35.2% 32.4% 28.2% Canada Mexico China Germany UK Italy & Brazil Bahamas & Taiwan 22.5% 21.1% 19.7% 18.3% Australia & Venezuela India, Japan & Ne therlands 5 Other Countries
10 How Product Is Shipped Frequency 70% 60% 50% 40% 30% 20% 10% 0% 63.2% 57.9% 21.1% 5.3% 1.8% Air Sea Truck Internet Rail
11 Challenge to Pursuing/Continuing International Trade Frequency of Challenge 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 40.8% 36.6% 33.8% 28.2% Partners Financial Transportation Market Knowledge 22.5% Cultural 9.9% Other
12 Actions in the Next Year Frequency 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 78.9% 7.0% 5.6% Increasing Trade Volume Decreasing Trade Volume Overseas Expansion
13 Value of Imports 28% 4% 13% 21% 34% $0-$99,999 $100,000-$249,000 $250,000-$$499,999 $500,000-$999,999 $1,000,000 and higher
14 Value of Exports 11% 21% 12% 18% 38% $0-$99,999 $100,000-$249,000 $250,000-$$499,999 $500,000-$999,999 $1,000,000 and higher
15 Interested in Exploring Foreign Markets No 43% Yes 57%
16 Barrier to International Expansion Frequency 30% 25% 20% 15% 10% 23.9% 23.9% 19.7% 15.5% 11.3% 11.3% 5% 0% Bureaucracy, Red Tape & Regulations Financial Constraints Lack of Market Knowledge Cultural/Language Issues Political & Social Instability Other
17 Benefit from St. Petersburg's Foreign Trade Zone Yes 13% Unsure/Need More Info 59% No 28%
18 Summary 62% are trading and of the 38% that are not, 57% are interested in starting % of those who export only dropped, while the % of those who import only has increased Possibly less international $ entering or staying in our local economy 7% plan on decreasing trade in the next year 13% believe that they can benefit from the Foreign Trade Zone, 59% are unsure
19 Summary Area companies have significantly increased trade with China, from 8.9% to 46.5% #1 challenge to pursuing/continuing international trade is the ability to find and maintain reliable int l partnerships Financial constraints & political instability have become more important as barriers to int l expansion We can assist with the majority of barriers and challenges Our international trade profile is similar to the county s recent survey results
20 Plan of Action Send out response letter Websites Partnerships International committees/symposiums Education of businesses
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