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SBA Export Outreach Team Annual Meeting October 18, 2016

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Presentation on theme: "SBA Export Outreach Team Annual Meeting October 18, 2016"— Presentation transcript:

1 SBA Export Outreach Team Annual Meeting October 18, 2016

2 America’s Gateway to the Pacific Rim
United States Vung Tau, Vietnam Busan, South Korea Shanghai, China Yokohama, Japan Kaohsiung, Taiwan Mexico THIS MAP SHOWS JUST THE TOP 10 TO 15 OF OUR MOST PROMINENT PACIFIC RIM PARTNER PORTS – AND THIS IS JUST IN TERMS OF IMPORTS. IF I SHOWED ALL OUR PACIFIC RIM TRADING PORTS AND PARTNERS, FOR IMPORTS AND EXPORTS, THIS MAP WOULD BE TOO CLUTERED. STILL, THE VARIETY OF TRADE HERE IS AN EXAMPLE OF THE WEALTH OF COMMODITIES, MATERIALS AND FINISHED GOODS THAT FLOW THROUGH OUR PORT… … CLOTHING AND SEAFOOD FROM MEXICO … AVOCADOS FROM CHILE … COFFEE FROM EL SALVADOR … HERBS AND SPICES FROM GUATAMALA … HEAVY SHIPMENTS OF FRUIT AND VEGETABLES FROM ALL OVER CENTRAL AND SOUTH AMERICA … LOGS AND LUMBER FROM NEW ZEALAND … BEEF AND PAPER FROM AUSTRALIA… … LEATHER SHOES FROM VIETNAM … CAR PARTS FROM TAIWAN … COMPUTERS FROM CHINA … TIRES FROM JAPAN … REFRIDGERATORS AND FREEZERS FROM SOUTH KOREA SO WHY DOES SO MUCH OF THIS CARGO COME THROUGH OUR TWO LOCAL PORTS? [SLIDE TRANSITION] Manzanillo Lazaro Cardenas Acajutla, El Salvador Valparaiso, Chile Melbourne Tauranga Quetzal, Guatemala Punta Manzanillo, Panama Balboa, Panama Australia Sydney Auckland New Zealand

3 Southern California Cargo Gateway Strengths
The Number # 1 U.S. Customs District Gateway; Record Year in 2014 with $ 128 Billion in Exports Huge & Diverse Local Consumer Market Low Transport Cost Between Port & Airport Proximity of Airport & Ports Intense Price Competition between Shipping Lines Low Export Rates Huge number of specialized service companies & talented professionals with linguistic skills and international cultural understanding Largest concentration of Manufacturing in the U.S.

4 Southern California Cargo Gateway Strengths
Most numerous & frequent sailings to & from Asia, Australia & the West Coast of Latin America 16 Container Shipping Lines 13 Container Terminals; 80 + Sailings per Week Greatest number of overseas Ports of Call Equipment availability Greatest number of logistics & distribution centers in the U.S. Largest Foreign Trade Zone in the U.S. 100 trains per day to & from LA/LB Ports Unrivalled Rail & Intermodal Capabilities However, we must ensure that our transportation infrastructure connections to the San Pedro Bay Ports are modernized

5 What Makes the Southern California Region A Strategic Platform for Trade ?
POPULATION: Mega-Region of 22 million 10 million in Los Angeles County 17.5 million five-county LA Metro Region 140 languages from around the world 97 Consulates LA Metro Region’s GDP: $826.8 Billion Ranked 18th largest economy in the World Larger GDP than Saudi Arabia or Switzerland MANFACTURING, LABOR & INTELLECTUAL CAPITAL: Priceless #1 Manufacturing Capital of the US 14,000-strong longshore workforce 3 World-class research institutions: UCLA, USC, CalTech Most PhD’s in the US Most Patents in the US RESOURCES: Substantial 1.8 billion sq.ft. of warehouse/distribution space w/in 80 miles Nation’s Largest Clean Truck Fleet Busiest origin/destination airport (LAX) $4.1 billion investment in infrastructure AS MAYOR GARCETTI LIKES TO SAY… “LOS ANGELES IS THE… …NORTHERN CAPITAL OF LATIN AMERICA…THE WESTERN CAPITAL OF THE UNITED STATES…AND THE EASTERN CAPITAL OF THE PACIFIC RIM.” Why is that? We have a region with a very large and globally diverse consumer market…. A regional economy that ranks in the world’s top 20 nations in terms of gross domestic output… We have the largest manufacturing sector in the US, a very large pool of skilled labor, and strong intellectual capital -- just within an hour’s drive from here. We also have… The largest warehouse and distribution center portfolio of all US trade gateways The nation’s largest and newest truck fleet And the busiest airport in terms of flight origin and destination In conclusion… this is a region where our ports and other economic sectors are heavily invested in each other. Sources////////////////////////////// million Mega-region… LA Metro Area GDP Brookings report: LA Metro Region’s GDP was $786.7 Billion in 2012, making LA the 17th largest economy in the world. For Combined Statistical Area metropolitan purposes, the five counties of Los Angeles, Orange, Riverside, San Bernardino, and Ventura are all combined to make up the Greater Los Angeles Area with over 17.5 million people. With over 22 million people, southern California contains roughly 60% of California's population (US Census) Source for NATIONAL GDP data:

6 Top 20 Markets (LA Customs District - 2015)
1. China $ 159 billion 2. Japan $ 39 billion 3. Korea $ 24 billion 4. Taiwan $ 16 billion 5. Vietnam $ 14 billion 6. Germany $ 12 billion 7. Thailand $ 11 billion 8. Hong Kong $ 10 billion 9. India $ billion 10.Australia $ billion 11. Malaysia $ 8 billion 12. Indonesia $ 7 billion 13. U.K. $ 7 billion 14. Singapore $ 7 billion 15. Philippines $ 5 billion 16. Italy $ 4 billion 17. Netherlands $ 3 billion 18. Switzerland $ 3 billion 19. France $ 3 billion 20. Mexico $ 3 billion

7 Top 20 imports (LA Customs District - 2015)
1. Motor vehicles 2. Computers 3. Oil 4. Cell phones & parts 5. TV’s & Monitors 6. Printers & parts 7. Leather shoes 8. Motor vehicle parts 9. Toys 10.Computer chips 11. Sweaters 12. Furniture & parts 13. Computer parts 14. Rubber tires 15. Travel goods 16. Diamonds 17. Shoes 18. Rubber shoes 19. Seats 20. Semi Conductors

8 Top 20 EXPORTS (LA Customs District - 2015)
11. Frozen beef 12. Prepared foods, beverages 13. Almonds & Nuts 14. Semi-conductor 15. Centrifuges & parts 16. Paper 17. Hides 18. Military aircraft parts 19. Valves & pipes 20. Iron Scrap Civilian Aircraft & Parts Diamonds Cell Phones & Parts Gold Motor vehicles Computers Computer chips Medical instruments Cotton Motor vehicle parts

9 Benefits of Our LA/Long Beach Ports
Economic Impacts Employment 940 Los Angeles Harbor Department employees 10,000-15,000 Longshore and terminal jobs (LA/LB) 192,000 jobs (about one in 11) in LA/LB Direct/indirect jobs generated by LA/LB 1 million across Southern California 1.2 million jobs statewide 3.1 million jobs across the U.S. Value of Trade to the Economy $89.2 billion throughout California $222.3 billion throughout the U.S. State and Local Tax Revenue $6.1 billion throughout California (CY 2014) $16.7 billion throughout the U.S. (CY 2014) A Regional Economic Engine ECONOMIC IMPACT THE LOS ANGELES CUSTOMS DISTRICT IS THE HIGHEST-VALUE CARGO GATEWAY IN THE U.S. AND IN 2012 IT WAS THE FIRST CUSTOMS DISTRICT TO SURPASS $400 BILLION IN ANNUAL TRADE OUR CUSTOMS DISTRICT INCLUDES THE SAN PEDRO BAY PORTS, PORT OF HUENEME IN VENTURA, LOS ANGELES WORLD AIRPORTS (LAX, VAN NUYS, ONTARIO, MOJAVE), MCCARAN FIELD IN LAS VEGAS, AND SEVERAL COASTAL OIL TERMINALS THAT RECEIVE OIL AND FUELS OUT OF NEARLY $415 BILLION IN CUSTOMS DISTRICT TRADE LAST YEAR, PORTS ACCOUNTED FOR $385 THE STATE AND U.S. VALUE OF TRADE FIGURES HERE REMOVES THE MANUFACTURING COSTS ASSOCIATED WITH THE VALUE OF CARGO BUT INCLUDES ALL THE WAREHOUSE AND RETAIL SALES ACTIVITY THAT ACCOMPANIES CARGO MOVEMENT THROUGH OUR PORT. JOBS & TAXES THE 940 JOB FIGURE IS JUST FOR OUR LOS ANGELES HARBOR DEPARTMENT STAFF. THERE ARE ANOTHER 10,000 TO 15,000 LONGSHORE AND TERMINAL MANAGEMENT JOBS BETWEEN THE L.A. AND LONG BEACH PORTS. IN TOTAL, NEARLY 900,000 SOUTHERN CALIFORNIA JOBS AND 3.3 MILLION JOBS ACROSS THE U.S. ARE DIRECTLY OR INDIRECTLY CONNECTED TO CARGO FLOW THROUGH OUR TWO PORTS AND, AS YOU CAN SEE, BY THE SLIDE THE TAX REVENUE IS SUBSTANTIAL L.A. Customs District’s 2015 Total Trade $394.0 Billion San pedro bay PORTs’ share… $409.8 Billion

10 TRADE & THE SOUTHERN CALIFORNIA GATEWAY: Emerging Opportunities
FREE TRADE AGREEMENTS Growth Markets in the Pacific Rim & S. E. Asia The Trans Pacific Partnership (TPP) The ASEAN Economic Community West Coast of Latin America Trade Growth with Europe (TTIP)

11 PACIFIC RIM & S.E. ASIA ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN)
10 COUNTRIES BRUNEI CAMBODIA INDONESIA LAOS MALAYSIA MYANMAR PHILIPPINES SINGAPORE THAILAND VIETNAM $ 2.5 TRILLION ECONOMY 650 MILLION POPULATION ASEAN ECONOMIC COMMUNITY

12 TRANSATLANTIC TRADE & INVESTMENT PARTNERSHIP (TTIP)
E.U. POPULATION – 508 MILLION TTIP – 11% OF GLOBAL POPULATION $ 18 TRILLION ECONOMY TWO OF MOST MODERN AND DEVELOPED ECONOMIES PROJECTED IMPACT ON US ECONOMY - $ 88 BILLION CALIFORNIA EXPORTS TO E.U. - $ 25 BILLION (2012) PROJECTED IMPACT ON CALIFORNIA – 26% GROWTH 3rd LARGEST TRADING PARTNER OF LA Customs District !

13 Los Angeles Offers One of the Most Extensive Transportation Networks in the World
Key Facts: LA/LB ports are the largest container-shipping facility in the U.S. LA’s Alameda Corridor is the busiest intermodal rail yard in the nation: 100 trains per day to 13 U.S. markets LAX has over 1,000 cargo flights each day linking Los Angeles to the World London Chicago Tokyo L.A. Shanghai Mexico City Sydney Santiago LAX is the 13th busiest airport in the world Ground transportation network is far-reaching L.A. port complex handles 44% of all containerized imports into the U.S. L.A.’s rail yards move goods efficiently from West to East Coast

14 Thank You!


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