Letter to Secretary Bryson, Commerce Department

Letter

Today, at SolEpoxy in Olean, U.S. Senator Charles E. Schumer called on the Department of Commerce to work with Olean manufacturers to help them boost exports in an effort to create more jobs in Western New York. Following the passage of recent trade agreements, Schumer pushed the Department to help connect Olean manufacturers with emerging markets, particularly those in Asia, to help increase the number of products being sold abroad that originate in Western New York. Specifically, Schumer requested that Commerce use their authority to help Olean companies with the trade counseling, market intelligence, business matchmaking, and commercial diplomacy they need to connect with lucrative business opportunities abroad. Several Olean manufacturers, including SolEpoxy, already make exports a large part of their business, but believe that tapping into new markets overseas could represent their biggest opportunity for major growth and could lead to the creation of new manufacturing jobs in Western New York.

"We want more products stamped "Made in the USA' to show up on shelves around the globe, and we want more of them to come from Olean. As it becomes increasingly more critical for small and medium businesses to expand their reach into international markets, I am urging the Department of Commerce to partner with Western New York businesses to help find new avenues for international business, boost exports and create local manufacturing jobs in the process," said Schumer. "Through business matching, customized market and industry briefings, appointments with prospective trade partners abroad and more, the Department of Commerce should help already successful local businesses like SolEpoxy access new markets so that they can expand and remain job-creators in Western New York for years to come. Recent free trade agreements have opened new opportunities for New York exporters to sell competitively in countries where they could not before, and with the help of Commerce I know those new markets can provide a shot in the arm for Cattaraugus County."

Schumer toured the SolEpoxy manufacturing plant in Olean and was joined by SolEpoxy CEO Jeff Belt, U.S. Department of Commerce officials, representatives from Olean manufacturing companies, and local leaders as he announced his push for the Department of Commerce to partner with SolEpoxy and other Western New York manufacturers and service providers to increase exports to emerging international markets, and create local jobs in the process. Schumer stated that for Western New York manufacturers to thrive in the intensely competitive global marketplace, New York State goods and service providers must look to new markets abroad and increase their exports. While some Western New York manufacturers, including SolEpoxy, have increased exports to Canada, data suggests that expanding exports further overseas to markets like those in Asia would be extremely beneficial to jobs growth in Western New York. Based on recent trade agreements, Schumer is urging Commerce to work with local manufacturers in Western New York to help create a successful path towards expanding businesses in these markets.

Schumer noted that Western New York manufacturers like SolEpoxy as well as service providers are particularly interested in help from the Commerce Department in scoping the market in Asia and developing the best business contacts to be successful in those international markets. This customized business matching would be critical in helping SolEpoxy and other companies seeking to establish a footing in international markets. Once these already profitable companies have done so, these manufacturers would be able to sell more products in these markets, and subsequently grow on a local level. Specifically, Schumer is urging Commerce Department to offer customized market and industry briefings with Commerce trade specialists, as well as timely and relevant market research based on the Western New York manufacturers' specific product offering. In addition, Schumer is urging the Department to help set up appointments with prospective trade partners abroad, and to provide post-meeting debriefings with Commerce trade specialists and assistance in developing appropriate follow-up strategies once connected with those key partners. Finally, Schumer is urging Commerce Department to aid companies like SolEpoxy with some of the logistics connected with establishing new international trading relationships, including assistance setting up travel, accommodations, interpreter services and clerical support.

The recent Free Trade Agreements passed by Congress in early October have created new opportunities for competitive trade in overseas markets like South Korea and Panama. Now that these markets are more accessible, Schumer is urging the Department of Commerce to help Western New York companies understand and facilitate entry into those markets. Free Trade Agreements have proved to be one of the best ways to open up foreign markets to U.S. exporters. Trade Agreements reduce barriers to U.S. exports, and protect U.S. interests and enhance the rule of law in the FTA partner country. The reduction of trade barriers and the creation of a more stable and transparent trading and investment environment make it easier and cheaper for U.S. companies to export their products and services to trading partner markets.

Schumer made his push for the Department of Commerce to partner with Western New York businesses, based on the need for these companies to remain competitive in an ever-changing marketplace and to create more local jobs in Olean and beyond. Expanding exports creates jobs, generates economies of scale in business operations, and makes companies more innovative as they compete in world markets. Schumer cited a local example of how this model has been successful in Dynabrade International, a Buffalo-based manufacturer of advanced power tools, which began exporting in the 1990s and now exports 55 percent of its production. Expanding into new international markets has allowed the company to add sales, marketing, assembly, and shipping jobs and create new products. However, many Western New York companies have not yet fully harnessed the power of increased exports. In much of upstate New York, especially in Central New York, the Mohawk Valley and the Southern Tier, many companies need assistance in expanding from a local to international business. Schumer noted that it is not easy to establish a business presence abroad, and is pushing Commerce Department to provide the resources, training and education for New York companies, particularly small and medium-sized enterprises, to get ready for the global economy.

New York ranks third among U.S. states in the value of its goods exports. Between 2000 and 2009, their value increased 37 percent, slightly exceeding the 35 percent increase for the U.S. The U.S. Commerce Department's Export Assistance Center in Buffalo helps small and medium-size companies expand their exports. Schumer applauds the Commerce Department's work thus far, and is urging them to expand this work further specifically to manufacturing companies like SolEpoxy. Commerce Department data shows that with current efforts, still, only one percent of U.S. businesses export, and less than half of those sell goods and services to more than one country. Schumer stated that creating and expanding programs to spread the word about the need to export and helping owners to locate the information and tools to do so should be a priority.

SolEpoxy, Inc. was founded in 2010 by Western New York investors who admired the remarkable legacy of innovation and entrepreneurship that endured at the Olean R&D and manufacturing center, going back to 1948, when Russell Houghton, former chief chemist of the Daystrom Furniture Corporation formed his own business, the Vilex Corporation. The company occupied the basement room in a building located on North Forth Street. Today, SolEpoxy is a high-tech manufacturer that specializes in the innovation of epoxy dielectric coating powders and molding compounds, plus a unique, optically clear epoxy molding compound. These resins are used for electrical insulating compounds, adhesives, and sealants.

A copy of Senator Schumer's letter to Commerce Department appears below:

Dear Secretary Bryson,

I am writing to commend your Department's efforts to date to achieve the President's goal of doubling American exports by 2013 and ask that you join me in an effort to develop a new strategy for manufacturers in Olean, NY to advance your export goals. As you know, the recent passage of Free Trade Agreements (FTA) with South Korea, Colombia and Panama could open new market opportunities for scores of New York manufacturers and service providers across many business sectors. There is also significant interest from manufacturers in Olean to tap into emerging markets across Asia and therefore, I would request that your Department target resources to promoting Olean manufacturing in these growth zones.

The expertise and resources of the Commerce Department are plentiful and when applied correctly translate into new business abroad and job growth at home for manufacturers and service providers. Specifically, the tools at your disposal include trade counseling, market intelligence, business matchmaking, and commercial diplomacy companies need to connect with lucrative business opportunities abroad. Often times, small and medium-sized companies do not have the business contacts or diplomatic expertise to successfully explore new international markets. Several Olean manufacturers, including a manufacturer named SolEpoxy, already make exports a large part of their business but believe that tapping into new markets overseas could represent their biggest opportunity for major growth and could lead to the creation of new manufacturing jobs in Western New York.

The evidence that Western New York communities like Olean need an injection of high-level guidance has been widely documented. In a recent report on the effects of globalization on New York's economy, the Levin Institute concluded that in order for Western New York manufacturers to thrive in the intensely competitive global marketplace, New York State goods and service providers must look to new markets abroad and increase their exports. While some Western New York manufacturers, including SolEpoxy, have increased exports to Canada, data suggests that expanding exports further overseas to markets like those in Asia would be extremely beneficial to jobs growth in Western New York. Therefore, based on these recent trade agreements, I urge Commerce to work with local manufacturers in Western New York and help carve out a successful path towards expanding businesses in these markets.

For example, a company like SolExpoxy could benefit from customized market and industry briefings with Commerce trade specialists, as well as timely and relevant market research based on the Western New York manufacturers specific product offerings. In addition, the Department could help set up appointments with prospective trade partners abroad, and to provide post-meeting debriefings with Commerce trade specialists and assistance in developing appropriate follow-up strategies once connected with those key partners. Finally, your expertise would be pivotal if and when companies wanted to set up travel, accommodations, interpreter services and clerical support in their pursuit of establishing these trade relationships.

The Levin Institute's report also cited a local example of how this model has been successful. Dynabrade International, a Buffalo-based manufacturer of advanced power tools, began exporting in the 1990s and now exports 55 percent of its production. Expanding into new international markets has allowed the company to add sales, marketing, assembly, and shipping jobs and create new products. However, according to the report, many Western New York companies have not been successful in harnessing the power of increased exports. In much of upstate New York, especially in Central New York, the Mohawk Valley and the Southern Tier, many companies need assistance in expanding from a local to international business.

The good news is that New York ranks third among U.S. states in the value of its goods exports. Between 2000 and 2009, their value increased 37 percent, slightly exceeding the 35 percent increase for the U.S. With your assistance, we can keep these positive trends going and growing.

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