If you have ever moved long distance to a city or place you are not familiar with, you know how complicated the process can be.
I remember our move from Columbus, Ohio, to Elkview, West Virginia, decades ago. We didn’t know anyone and weren’t familiar with the area. We needed a house we could afford and a mortgage. Interest rates at the time were 14%. Schools were a concern for our two children in grade school and the oldest starting high school. We had to decide where to live in the area. We had to find a new family doctor and dentist and many other details. Imagine the difficulty making a move overseas to a country you are not familiar with.
A company choosing to expand to the USA, first considers all of the business reasons for coming here. If the move appears to be cost effective, they need to decide where in the USA to locate. At SelectUSA all 50 states and six U.S. territories were represented. That is a lot to choose from. Foreign delegates attending SelectUSA in Washington, D.C., this week told us that is the daunting task they are faced with. Most of the companies we talked to were small to medium sized. In addition to business reasons, in some cases the delegate was the going to be the first U.S. employee setting up the business. They are looking for a location where they would like to live. Quality of life is important. It isn’t just business — it is personal.
SelectUSA foreign delegates didn’t know where U.S. natural gas and oil is produced or that if Shale Crescent USA (Ohio, Pennsylvania, West Virginia) were a country it would be the third largest natural gas producing country in the world, behind only the rest of the USA and Russia. Shale Crescent USA produces twice as much natural gas as the entire country of China. They didn’t know 50% of U.S. population is within a day’s drive of the center of the SCUSA. They didn’t know the Shale Crescent USA region is the birth place of U.S. oil and natural gas, rubber, manufacturing and chemical industries. The first ethane cracker was built by Union Carbide in Clendenin, W.Va., in the early 1920s, about 100 years ago. It was located there because of abundant natural gas and oil. They know now!
Foreign delegates didn’t know many of the western states have water shortage issues that can impact manufacturing. They didn’t know the benefits of having a network of rivers for shipping with plentiful water and the ability to connect to Gulf Coast ports. They know the Gulf Coast has hurricanes that can disrupt manufacturing production. Most had no idea SCUSA manufacturers don’t have that problem. Most foreign delegates know where New York City, Disney World, Texas, and Hollywood are. Many did not know where Columbus or Pittsburgh are located. This is to be expected. Few Americans could answer similar questions about other countries (maybe even their own). Before our trip to Germany this year I had no idea where coal is mined in Germany, where manufacturing and petrochemical production are located or where the agricultural areas of Germany are.
U.S. Commercial Services, part of the U.S. Department of Commerce did an incredible job of marketing, setting up and running the SelectUSA event. There was a record 5,000-plus delegates. Over 2,500 were foreign delegates. Everyone at SelectUSA is pitching their state. The Shale Crescent USA organization is marketing a region (Ohio, Pennsylvania, West Virginia). We want companies to consider our region. SCUSA is agnostic as to where they locate in the region. SCUSA’s goal is to be a trusted adviser by providing hard data on energy and manufacturing. Also, by connecting prospective companies to our large network. We know someone who knows someone who can help solve a problem or answer a question companies may have.
The States do a great job with economic development. They each put together packages to attract business. We share our contacts with them and introduce them to any prospects we get. At SelectUSA when the exhibit hall opened we were swarmed with people in addition to our 30+ scheduled meetings. Nathan Lord, SCUSA President, Bryce Custer, real estate expert and SCUSA Board member, Lynnda, my wife who helped coordinate meetings and I, manned the SCUSA booth. At one point I was meeting with a company a second company was waiting. Nathan and Bryce were also in meetings. Lynnda whispered in my ear and pointed to another gentleman, “He said he isn’t leaving until he talks to you.” He is serious about setting up a U.S. operation this year.
We had a scheduled meeting with the new President of U.S. Operations for an Italian company planning to build a manufacturing plant in the USA. The President wants to move to the USA later this year. Where he chooses to live will be the ultimate location of their factory. Quality of life is important to him and his family. He said he wants to be in the Midwest and was considering Indiana. I introduced him personally to Angela at the West Virginia booth and Alina at the Jobs Ohio booth and briefly explained his plans. Both greeted him and conversed in Italian. He came back to thank me and say, he will be moving to Ohio or West Virginia. We introduced a Japanese company to Pennsylvania because their major supplier was in eastern Pennsylvania. The Japanese thanked me for the introduction and productive meeting they had. These are a few examples I can share. SCUSA and the States have meetings planned next week to share information and discuss next steps.
Foreign companies are coming to the USA for the reasons I discussed last week. They bring jobs and the money to create them. With the States and SCUSA working together we can expect to bring many of these prospects to our region to create high wage jobs and raise the standard of living for people here.
Greg Kozera, gkozera@shalecrescentusa.com, is the director of marketing and sales for Shale Crescent USA, www.shalecrescentusa.com. He is a professional engineer with a master’s in environmental engineering and over 40 years’ experience in the energy industry. He is a professional speaker and author of four books and numerous published articles.
