International Business Development 2007 International Trade Survey
Overview What we have done How we accomplished these tasks Why these tasks were important Results Plan of action Additional project
Survey of International Activity Targeted manufacturing businesses in the St. Petersburg area Surveyed to find out international trade activity
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
Formulation of Survey Researched similar surveys conducted Called other cities nation-wide Compiled information and drafted survey
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
Engage in International Trade No 38% Yes 62%
Trade Activities Import 20% Both 46% Export 34%
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
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
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
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
Value of Imports 28% 4% 13% 21% 34% $0-$99,999 $100,000-$249,000 $250,000-$$499,999 $500,000-$999,999 $1,000,000 and higher
Value of Exports 11% 21% 12% 18% 38% $0-$99,999 $100,000-$249,000 $250,000-$$499,999 $500,000-$999,999 $1,000,000 and higher
Interested in Exploring Foreign Markets No 43% Yes 57%
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
Benefit from St. Petersburg's Foreign Trade Zone Yes 13% Unsure/Need More Info 59% No 28%
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
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
Plan of Action Send out response letter Websites Partnerships International committees/symposiums Education of businesses