Illinois Office of Trade and Investment Continues Opening Doors for Illinois Companies

CHICAGO – Gov. Rod R. Blagojevich today announced Illinois’ export figures continue to show significant growth, with more than $20.5 billion in exports reported for the first half of 2006, a 16.5 percent increase from the first half of 2005.  The Governor also highlighted the work of the Illinois Department of Commerce and Economic Opportunity’s Office of Trade and Investment (OTI) in helping Illinois companies grow their businesses by pursuing overseas markets.  Earlier this year, Gov. Blagojevich celebrated Illinois’ third consecutive year of increased exports and the greatest one-year increase in more than ten years.  This data comes from WISER, the World Institute for Strategic Economic Research, who compiles its information from the US Census Bureau, Foreign Trade Division. 

“Illinois is showing the world that we are aggressively taking advantage of all that international trade has to offer.  We are seeing more companies exporting more goods, which is creating better jobs for more people.  This dramatic increase in exports is another important example of the strength of Illinois’ economy, which is only going to get stronger as we continue helping even more Illinois companies pursue new markets across the globe,” Gov. Blagojevich said. 

Illinois’ exports for the first half of 2006 represented an almost $3 billion increase from the same period in 2005, which was the second largest percent increase among the other states in the top eight.  Illinois is the sixth largest exporting state after Texas, California, New York, Washington and Michigan.  Since 2002, Illinois exports have grown by more than $10 billion, a 40 percent increase, which is the largest percent increase among the top exporting states.  Direct exports amounted to approximately 6.4 percent of the Gross State Product (GSP) in 2005, and there are an estimated 485,600 Illinois jobs supported by exports.  Top countries for Illinois’ exports are Canada, Mexico, Japan, the United Kingdom, Germany and Australia.  Top sectors include machinery, chemicals, computer/electronic products, transportation equipment, electrical equipment and food and kindred products.

OTI offers a variety of export development assistance programs to help Illinois companies identify new markets and locate distribution channels for their products and services abroad, including trade missions to targeted foreign markets.  Trade missions provide small and medium sized companies in Illinois with an avenue to export their products and services by directly engaging foreign buyers, agents, distributors and/or joint-venture partners and providing additional in-country support.  Under Gov. Blagojevich, OTI has led 36 foreign trade missions, which includes 15 already in 2006 with an additional 19 planned for the rest of the year and into 2007.  This total is more than any previous administration.  These missions have hosted more than 190 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.  Upcoming trade missions in September and October include: the Hong Kong/China Real Estate Mission; China Environmental Mission; Russia and Ukraine Homeland Security Mission; and the Canada Importers/Exporters Annual Conference.

Through the Illinois Entrepreneurship Network (IEN) and OTI’s nine international offices, small and medium-sized businesses can also receive counseling and technical assistance in exporting their goods and services.  The Illinois Trade Centers (ITC) and NAFTA Opportunity Centers (NOC) offer expertise and assistance with all facets of exporting with specialists who work one-on-one with new-to-export firms.  There are six ITC’s and two NOC’s statewide.  Through all of these efforts, 11,350 client companies have been served since 2003, which have reported an estimated $750.5 million in export sales since receiving this assistance. 

Here are examples of Illinois companies who have greatly benefited from OTI’s services:

Best Used Machinery, based in Aurora, sells new and used equipment primarily for the plastics and packaging industry.  The company participated in a trade mission to Santiago, Chile in November 2005 to expand its presence in Latin America.  As a result of the trip, Best Used was able to meet with end users and make local contacts, which led to $20,000 in sales so far to Chile with $100,000 more expected in the coming year.  Additionally, the company reports overall sales to Latin America up 150 percent from the previous year. (Javier Perez, President – 630/897.2220)

Bettendorf-Stanford, based in Salem, is a manufacturer of bakery equipment for wholesale bakeries, including bread slicers, blades and ultrasonics for slicing cakes and pastry products.  The company has participated in two OTI sponsored trade missions, most recently to Germany, Italy and Poland in May 2005.  As a result of its participation, the company was able to secure an agent in Germany who is helping the company locate customers across Europe and anticipates new sales of between $50,000 and $100,000 within the coming year. (John Stanford, President – 618/348.3555)

Concourse Communications, which is now part of Boingo Wireless, a Chicago-based firm, installs, operates and markets wireless networks in airports across North America, including O’Hare and Midway airports.  As a result of assistance from OTI’s Canada Office in Toronto, the company was able to secure a contract award at the Greater Toronto Airport Authority for the installation of public hotspot wireless services.  The company expects to generate more than $3 million as a result of this contract. (Orlando Saez, Vice President Airport Marketing - 312/357.2900)

iCyt, an innovative, Champaign-based biotech firm, offers engineering, design and manufacturing services in flow cytometry instrumentation.  The company was interested in expanding into the Asian market and worked with OTI who assisted with market research, locating overseas agents, export documentation and matchmaking appointments.  As a result, the company reported $100,000 in sales to Japan with the potential for additional sales in other Asian markets in the near future. (Tim Hoerr, CEO – 217/328-9396) Paratech Inc, based in Frankfort, is a manufacturer of emergency service products, including rescue and firefighting tools and urban search and rescue equipment.  The company participated in the Southland Chamber of Commerce’s Trade Mission to Europe in June 2004 and continues to work with our OTI Brussels Office.  As a result of this assistance, Paratech has been able to expand its distributor network in the German market and other European markets, resulting in a 30 percent annual increase in exports over the last three years. (Jim Burge, VP of Sales and Marketing – 815/469-3911)

The ROHO Group, based in Belleville, manufactures a medical line of therapeutic cushions for wheelchairs, chairs and mattresses to address special seating and positioning needs in the medical industry.  The company first worked with OTI in 2003 to expand its exports to Mexico and, through the assistance of OTI’s Latin America & Caribbean office, it was able to find a distributor that has allowed the company to increase sales significantly to Mexico.  Most recently, the company participated in the Medical and Dental Trade Mission to Sao Paulo in June to exhibit its products in the Hospitalar trade show.  The company has experienced tremendous growth in Latin America over the last three years, reporting a 40 percent increase each year. (Tom Hartmann, Vice President – 618/277.9173)

“Gov. Blagojevich and I are very excited about Illinois’ continued export growth.  As we help more Illinois companies advance their international trade efforts, we will continue to grow our economy and create more jobs,” State Senator Martin Sandoval, Chairperson of Commerce and Economic Development Committee, (D-Chicago) said

“Gov. Blagojevich and I cannot overstate the need to help companies across Illinois get more business by reaching new markets and finding new customers around the globe.  This new data is great news that will lead to even more economic growth and job creation in the future,” State Representative Susana Mendoza, Chairperson of International Trade & Commerce Committee, (D-Chicago) said.

OTI is also working to attract essential Foreign Direct Investment (FDI) to Illinois, through a host of promotional activities, including FDI seminars and reverse trade missions.  There have been 40 FDI seminars in the past year alone, which have included China, India, Israel and Japan.  Illinois currently ranks fourth in the nation in foreign direct investment, which is up 14 percent in the last five years, according to the Organization for International Investment.  Through strategic promotional seminars overseas and domestically, OTI is continuing to establish foreign investment in Illinois and helping to create more Illinois jobs. 

“Gov. Blagojevich and I understand the need for opening new markets for Illinois businesses, which allow them to cultivate important partnerships all over the world.  We are encouraged by the tremendous success Illinois is having on the global stage and are committed to continue opening new doors and identifying new opportunities for Illinois companies to grow and expand,” Illinois Department of Commerce and Economic Opportunity Director Jack Lavin said.       

For more information on all of OTI’s programs, please visit www.illinoisbiz.biz/dceo/Bureaus/Trade/

For more trade statistics and information about WISER visit www.wisertrade.org