Charleston Business Journal > April 3, 2006 > News
SCWTC brings foreign trade to local doorsteps

By Dan McCue
Staff Writer

Speaking in a conference room at the South Carolina World Trade Center’s headquarters on Meeting Street, Mark Condon motions to a map of the world extending from floor to ceiling nearby, and talks about trade missions as a tool for making the planet’s business community a much smaller place.

“I think it’s our niche, or at least one of them,” the nonprofit’s executive director said. “While people sometimes take a dim view of imports, seeing them as a source of lost jobs and lost opportunities, we see facilitating them as a way of generating wealth for South Carolinians.

“After all, if we can help a company get a foothold on sales in the United States, there’s a good chance that down the road we can get it to open a manufacturing plant or distribution center here,” Condon said.

“The other thing to remember, of course, is that trade missions go both ways and open markets for our goods overseas,” he said. “So building a trade community is a way to achieve multiple beneficial aims, and the way you do that is one trade mission at a time.”

While all 288 member organizations of the World Trade Centers Association are charged by their charters to “enhance stability and peace through world trade and development,” how each one approaches that goal is an individual matter.

What’s more, many have undergone a change of emphasis over time in response to variations in global economics and politics. For instance, although established in 1988, the SCWTC didn’t get heavily involved in trade missions until about three years ago.

“The main reason for our moving in this direction was that I thought we could be a more effective World Trade Center by engaging other WTC traders,” Condon said of the change in focus. “As we became more effective, the interaction and number of trade missions continued to rise. “Success feeds upon success,” he added.

Since 2003, the SCWTC has facilitated more than 40 such visits. While most have involved hosting foreign business leaders in Charleston, a number of outbound missions have seen representatives of local companies make their way across the globe to secure a business deal.

Goods drive desire to meet

“All of our missions start with an initial contact between us and one of the other World Trade Centers around the world,” said Melanie Figuerido, who does much of the legwork involved in setting up a mission.

“Sometimes it’s a phone call or e-mail from another WTC asking if we can arrange meetings for companies interested in importing their products into the U.S.,” Figuerido said. “Other times it’s me making the call, trying to determine whether there are companies there that may be interested in trading with business partners in South Carolina, North Carolina or Georgia.”

A case of the latter involved JBE Inc., a Hartsville company that provides sub-assembly, warehousing and inventory management to other local companies. After attending a WTC training program at Florence Darlington Technical College, the company decided to test the waters and see if they could find an offshore supplier for materials they in turn supply to local businesses.

Through the contacts the SCWTC had with the WTC in Mumbai, India, JBE secured the materials it needed at a good price and were able to pass the savings on to Holset Turbochargers, a Charleston manufacturer that has since announced plans to expand its facility here.

“That’s an excellent example of a success story, and WTC-Mumbai is a great facilitator of trade relationships,” Condon said. “However, they don’t always go so smoothly.”

He cited the SCWTC’s most recent trade mission from China, when several planned attendees had their visas rejected for unspecified reasons.

And then there are those rare occasions when potential importers can’t find any takers here. The SCWTC guarantees all visitors meetings with at least five different potential customers here. If they can’t arrange five meetings, the mission is cancelled.

“That recently happened with someone who wanted to import baskets for agricultural use from Canada,” Condon said.

“On the other hand, at the same time, we also had an inquiry from a Canadian firm that has a new scientific product that it is marketing,” he said. “In that case, we had dozens of people who wanted to meet with them. So the nature of the product really does dictate the fruitfulness of these early communications.”

Businesses, nations share costs

Although the SCWTC facilitates trade missions, it doesn’t bear the brunt of direct costs, Figuerido said.

In most cases, all or most of the cost associated with bringing in mission participants—food, lodging and travel—are picked up by the company the participant represents. In some cases, the mission is underwritten by the participant’s government.

“For instance, the trade mission from China was supported by the Chinese Council for the Promotion of International Trade,” she said. “A more recent visit by companies from Nova Scotia was paid for by Nova Scotia Business Inc., and a trade mission from South Korea was underwritten by the Korean International Trade Association.”

The same is true for U.S. agencies, Condon said. He pointed to the U.S. Department of Agriculture, which is lending its financial support to a trade mission intended to bolster the presence of American farm goods in Chinese markets.

But trade missions aren’t all wheeling and dealing.

Rebecca Marriott, the SCWTC’s spokeswoman, said that, in addition to the more formal business meetings, the center also schedules a social event to further the relationships forged over commerce.

Again, the SCWTC is simply the facilitator, relying on local companies to act as sponsors and cover the cost. “We’re always looking for sponsors,” she said.

An “expensive event,” such as the dinner for the visitors from China, costs in the neighborhood of $800, Marriott said.

But finding sponsors is the least of the logistical challenges associated with an incoming trade mission. Often, the biggest hurdle, Figuerido said, is that there are no direct flights into Charleston International Airport from far-flung destinations.

Dan McCue is a staff writer for the Business Journal. E-mail him at dmccue@charelstonbusiness.com.


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Trade mission results hard to quantify

The South Carolina World Trade Center may be a major player in the trade mission game, but that doesn’t mean it’s any easier to quantify results.

“To be honest, we really don’t know how much actual trade is generated by these missions, and that’s partly the result of trafficking in the world of business and partly the result of human nature,” said Mark Condon, the center’s executive director.

“Try as you might to follow up on these things, there’s only so much you can do,” he added.

Aspiring traders who haven’t come out of a mission with a deal are often loathe to talk about it, while those who have made one may also refrain from trumpeting it, Condon said.

“I can understand that,’ he said. “If you found an awesome supplier during a trade mission, the last thing you want is for your competition to know about it.”

The other phenomenon Condon sees is when companies receive several verbal commitments during a trade mission but fail to follow up and get them on paper.

“Those are the cases where you say, ‘Well, there’s only so much you can do for a company,’” he said.

Rather than try to keep tabs on which deals are consummated and which are not, Condon said the SCWTC measures its success by the number of South Carolina businesses it turns into trading companies each year through its import and export education offerings.

“Last year alone, we had 21 companies that went from being domestic-only enterprises to international traders, and from our perspective, those are the kind of results that really count,” Condon said.


















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