greater philadelphia metro export plan export support ecosystem...

Greater Philadelphia Metro Export Plan

Export Support Ecosystem Working Group

Tuesday, December 1, 2015, 10:00 to 11:30 am

Economy League of Greater Philadelphia

230 South Broad Street, Suite 403, Philadelphia

Strategy: Strengthen and enhance coordination within

Greater Philadelphia’s export support ecosystem

Meeting Agenda

o Welcome & Introductions

o Review of Working Group Charge

o Global Trade and Investment Alliance Implementation

- Prioritizing Activities

- Roles

- Resources

Export Support Ecosystem Working Group

December 1, 2015, 10:00-11:30am Economy League of Greater Philadelphia 230 South Broad Street, Suite 403, Philadelphia

Meeting Materials

Export Support Ecosystem Working Group Meeting Agenda Page 1

Export Support Ecosystem Working Group Memo Page 3

Greater Philadelphia Metro Export Plan Elements Page 10

2

MEMORANDUM DATE: November 30, 2015

TO: Greater Philadelphia Metro Export Plan Export Support Ecosystem Working Group

FROM: Josh Sevin, Managing Director for Regional Engagement, Economy League

RE: Strengthening and enhancing coordination within Greater Philadelphia’s export

support ecosystem

Strengthening and enhancing coordination within Greater Philadelphia’s export support ecosystem has

been identified as one of three priority strategies that our region will focus on to accelerate regional

growth via a dynamic export economy. This fall, the Greater Philadelphia Metro Export Plan export

support ecosystem working group is helping to develop plan elements related to this strategy.

During the group’s first meeting on November 6, we determined that convening a global trade and

investment alliance should be the primary initial tactic to strengthen the region’s export support

ecosystem. At Tuesday’s meeting, we will discuss implementation details associated with this tactic,

including priority activities for the alliance, roles, and resources. The working group’s efforts will help

develop critical pieces of the export growth plan for review by the Greater Philadelphia Metro Export

Plan Steering Committee at its December 8 meeting.

METRO EXPORT PLAN ELEMENTS AND STRATEGIES

The Greater Philadelphia Metro Export Plan will be a 16-to-24 page document that makes a compelling

case for exports as a driver of our region’s long-run economic success and provides a guide for how to

achieve stated export growth goals and objectives. It will be a vehicle for educating a wide range of

audiences about the exports opportunity and how our region plans to take advantage of it.

Our plan will present an explanation of why exporting is critical to the region’s competitiveness, key

findings from the market assessment, goal and objectives, strategies and tactics, performance metrics to

gauge progress, and an implementation plan summary. (Background on preparing a metro export plan

and examples of other regions’ plans are available at the Global Cities Initiative’s website at

http://www.brookings.edu/about/projects/global-cities/exchange.)

Drawing upon the market assessment results and metro export initiative efforts to date, the Greater

Philadelphia Metro Export Plan Core Team has drafted several plan elements, including key findings and

plan goal and objectives. A summary of current draft plan elements is included in the meeting materials

on page 10. At the Greater Philadelphia Metro Export Plan Steering Committee’s October meeting, the

group reviewed three proposed strategies for refinement and inclusion in the plan:

1) Building Export Awareness and Capacity among the Region’s SMEs;

2) Catalyzing Export Growth for Priority Clusters; and

3) Strengthening and Enhancing Coordination within Greater Philadelphia’s Export Support

Ecosystem

3

http://www.brookings.edu/about/projects/global-cities/exchange

Greater Philadelphia Export Support Ecosystem Working Group Meeting #2 Memo

These three strategies represent approaches that the Core Team thinks will best drive the region

towards achievement of the plan’s overarching objectives of boosting the region’s export intensity,

increasing the number of new exporting firms, and elevating exports as a top-of-mind economic

development priority. They focus on core opportunities and needs that emerged from the market

assessment findings: limited awareness of export opportunities or services among small- and medium-

sized enterprises (SMEs), the existence of regional export industry cluster strengths, and the potential

for greater collaboration and coordination among export service providers and economic development

leaders.

These strategies will be accompanied in the metro export plan by a set of tactics that lay out what

specific actions the region will undertake to execute each strategy. Specific quantitative and qualitative

outcome and output indicators will be tracked in conjunction with plan strategies and tactics. Working

groups have been established to identify priority tactics and implementation items for each strategy.

STRENGTHENING AND ENHANCING COORDINATION WITHIN GREATER

PHILADELPHIA’S EXPORT SUPPORT ECOSYSTEM

The quality and range of export assistance provided to firms in the region is strong. Leading export

support and business development players include public agencies such as the US Commercial Service,

US Small Business Administration, Pennsylvania Office of International Business Development, New

Jersey and Delaware Departments of State, and local economic development agencies, as well as

nonprofits including the World Trade Centers of Greater Philadelphia and Delaware, DVIRC, and small

business development centers, among many others.

However, market assessment interviews indicated that export service providers and economic

development organizations could generate greater impact by collectively developing a more seamless

set of information and services. Although there is cooperation among top service providers, it remains

informal and opportunities exist to identify and address gaps in service provision and better leverage

successful efforts. Such an approach is all the more important in light of limited regional resources to

support export growth.

Drawing upon the market assessment and metro export initiative efforts to date, the export support

ecosystem working group at its first meeting on November 6 recommended a primary focus on

convening an international trade and investment alliance. Establishing a more formal network with

specified goals, consistent meetings, and adequate resources will build upon prior collaborative success

and help maximize implementation of our export plan. This approach will build upon the widespread

engagement and excitement generated in developing a metro export plan for Greater Philadelphia and

play a critical role in driving implementation of plan strategies, tactics, and actions.

Several regions that have completed metro export plans in conjunction with the Global Cities Initiative

have set out to establish export or broader international business coalitions to take on a range of

different activities. Metros that have pursued this approach include Phoenix, Seattle, Syracuse, Los

Angeles, Portland, and San Diego.

The alliance could perform a variety of different functions, including identifying opportunities for

increased alignment of efforts (e.g., coordinating follow-up from trade missions), advocacy (e.g., support

for state export assistance budgets), and oversight of metro export plan implementation, including

ongoing awareness-raising about the importance of trade and investment to the region’s economy. It

4


would also provide an important consistent forum to strengthen relationships among international

business and economic development leaders while cultivating a broader set of business, civic, and

elected official champions for regional export growth.

The remainder of this memo lays out a proposed implementation framework and potential activities for

the Greater Philadelphia Global Trade and Investment Alliance and concludes with questions for

consideration by the working group.

GREATER PHILADELPHIA GLOBAL TRADE AND INVESTMENT ALLIANCE

At its November 6 meeting, the working group reviewed a proposed charge, structure, and value

proposition for the Greater Philadelphia Global Trade and Investment Alliance. The alliance’s proposed

charge is to advance the stated goal, objectives, and strategies of the metro export plan, with a

particular focus on strengthening and enhancing coordination within the region’s export support

ecosystem.

It is proposed that the alliance be comprised of senior international trade and economic development

officials from across the tri-state region. This will include executives from area export service providers;

local, state, and federal economic development agencies; regional and international chambers of

commerce; small business development corporations; business and industry associations, including

manufacturing alliances; the region’s ports and airports; district export councils; Select Greater

Philadelphia; the Economy League; DVIRC; the Welcoming Center for New Pennsylvanians; and The

Enterprise Center, among others.

A small management team of no more than five individuals will meet monthly to provide oversight and

set the alliance’s agenda, and the full alliance will meet quarterly. The alliance’s efforts will be leveraged

and amplified by a leadership council comprised of top regional business, civic, and elected official

leaders that will serve as champions for international trade and investment in the region and assist with

targeted advocacy efforts. Establishing and maintaining active leadership council membership will

require engagement and education around ongoing global business growth efforts via annual or bi-

annual meetings.

The Economy League of Greater Philadelphia is willing to consider incubating the alliance in its pilot

stage. The strategy, convening, and leadership engagement skills required of managing the alliance are

among the Economy League’s core competencies, and it is highly invested in ensuring successful

implementation of the metro export plan. The Economy League has a track record of incubating broad-

based regional collaborative efforts and would serve as a neutral convening party with no direct export

support assistance role within the region.

The success of the alliance will depend upon the active participation of busy regional leaders, requiring a

clear value proposition for alliance members beyond serving the greater good for our region. Many of

the potential alliance activities listed below would be of direct benefit to participants and their

organizations via the development of shared resources, more efficient provision of services,

communications investments, advocacy efforts, and grants secured. In addition to these benefits,

alliance meetings will be structured to maximize networking opportunities that result in greater

collaborations and program alignment.

5


ALLIANCE ACTIVITIES

Working group participants were surveyed about which activities the alliance should prioritize within

four potential focus areas: developing shared resources and messaging; increasing alignment across

international trade and economic development service providers; advocacy; and research/market

intelligence. In addition to these four potential focus areas, the alliance will be positioned to oversee

implementation of the metro export plan and grant writing to advance key elements of the plan.

SHARED RESOURCES AND MESSAGING

The metro export plan effort provides a strong head start in developing clear and standardized

messaging about export growth opportunities and resources. The Core Team has committed to

developing a consolidated, easy-to-use map of export assistance resources for the plan’s release in April.

The alliance can oversee the development and distribution of such resources across export service

providers and economic development organizations, as well as a broader network of key organizations

and businesses that have trusted relationships with SMEs in the area, such as chambers of commerce

and for-profit service providers including banks, law, accounting, and logistics firms.

Respondents to the export support ecosystem survey placed a high priority on the alliance pursuing the

following activities to develop shared resources and messaging:

Develop a resource that makes the case to firms on “What’s In It for Me?” (100% of respondents

said it would be very important to prioritize this)

Develop an easy-to-use map of export assistance resources (75% very important; 25%

somewhat important)

Develop an information clearinghouse to help firms navigate specific markets (e.g., cultural/

business norms, case studies, helpful resources/contacts) (66% very important; 33% somewhat

important)

Survey respondents placed a slightly lower priority on pursuing the following:

Develop a one-stop comprehensive web portal for firms seeking information about export

opportunities OR revamp existing online resources (33% very important; 66% important)

Develop videos that promote and support export activity in the region (33% very important; 66%

important)

Develop and maintain a resource that highlights the ROI/outcomes of trade missions (33% very

important; 33% important; 33% not important)

Survey respondents and participants in the SMEs working group have both pointed out the existence of

resource-rich export support websites across the region, including exportpa.gov and

global.delaware.gov that could be further leveraged and coordinated.

INCREASED ALIGNMENT

In light of limited resources, an opportunity exists to get more out of existing export assistance and

business development efforts by finding ways for support organizations to play to their respective

6


strengths and reduce duplication of efforts. One example is around trade missions – both in planning

them and in fostering strategic, sustained coordination following these business development and

relationship-building trips. Aligning target market and trade mission efforts has been a successful focus

of alliances in other GCI metros.

Respondents to the export support ecosystem survey placed a high priority on the alliance pursuing the

following activities to increase alignment across international trade and economic development service

providers:

Foster greater sector specialization across export support service providers (100% very

important)

Develop a shared list of leading export target markets based on existing activity and potential

for growth (66% very important; 33% important)

Share export assistance outcomes data (66% very important; 33% important)

Survey respondents placed a slightly lower priority on pursuing the following:

Develop and implement a more coordinated approach to trade missions (33% very important;

66% important)

Reduce overlap in client targeting among export support service providers (33% very important;

66% important)

Tighten referral networks among export support service providers (33% very important; 33%

important; 33% no opinion)

One approach emphasized among survey responses was to align export service providers with the level

of experience exhibited by particular firms, with some service providers focusing on new exporters and

others on more experienced exporters. Another suggestion was to develop a memorandum of

understanding to facilitate sharing of outcomes data by support organizations.

ADVOCACY

The Greater Philadelphia metro export plan will be accompanied by a policy memo that outlines an advocacy agenda for changes at the federal and state levels that will foster a stronger environment for global trade. In addition to broad efforts to elevate global trade and investment as a regional priority, the alliance can identify, prioritize, and work with partners to advance strategic items within a shared international business advocacy agenda.

Survey respondents were unanimous in recommending that the alliance advocate in support of investing

in Greater Philadelphia as an energy hub to help drive future export growth and improving metro-level

export data. Respondents also strongly supported the alliance advocating for:

Investing in infrastructure improvements (75% very important; 25% important)

Supporting federal policies and investments of shared interest across metros (e.g., free trade

agreements, fair trade practices, intellectual property protection, export compliance and

regulation, export finance, overseas staffing/resources) (66% very important; 33% no opinion)

7


Sustaining and expanding support for export service provider capacity (50% very important; 50%

important)

RESEARCH/MARKET INTELLIGENCE

Following the significant one-time investment in research and analysis undertaken this past year for the

Greater Philadelphia export market assessment, the alliance could develop, oversee, and share ongoing

research about strategic export opportunities and markets for direct use by area firms and economic

development stakeholders and to inform additional trade and investment strategy.

Survey respondents placed a high priority on the alliance overseeing the following research and market

intelligence efforts:

Determine demand for exportable products and services in target markets based on existing

activity and potential for growth (100% very important)

Identify and gather intelligence on priority export sectors (100% very important)

Research and share existing international connections in target markets (66% very important;

33% important)

Identify export opportunities in local business supply chains (66% very important; 33%

important)

PROPOSED IMPLEMENTATION FRAMEWORK

Effective implementation of the alliance activities listed above will require additional resources beyond

current levels. While an annual funding stream in support of the alliance is not immediately available,

the current metro export planning effort positions the region to raise funds for a two- or three-year

campaign to support this strategy along with building export awareness and capacity among SMEs and

catalyzing export growth in priority clusters.

A two- or three-year “blitz” approach to strengthen and enhance coordination within the region’s export

support ecosystem can maximize impact while ensuring quality, one-time investments in developing

shared resources, increasing alignment, advocacy, and research. This will allow metro export plan

partners to concentrate fundraising for a multi-year implementation budget across the plan’s three

priority strategies and then reassess toward the end of the initial implementation phase which

investments have worked and merit additional resource development moving forward.

To ensure high-impact implementation of proposed alliance activities over phase one of plan

implementation, at least one-half FTE will be needed to coordinate the alliance and drive strategic

collaborations. Additional project-specific resources will be required around developing print and/or

online materials as well as targeted advocacy or research efforts.

Invitations to participate in the alliance will be sent in January 2016 to leaders from the organizations

and agencies listed on page 5, and the alliance’s first meeting will take place in late February/early

March in advance of the export plan release in April.

8


It is proposed that metro export plan partners seek matching funds from multiple sources to resource

phase-one implementation efforts, including corporate foundation investments, government grants, and

contributions and sponsorship from area businesses.

QUESTIONS FOR DISCUSSION

Among the potential activities for the alliance listed on pages 6-8, which

should it focus on? If you could select no more than three of these activities

to pursue, which would you choose?

What do you think of the proposed implementation framework? Suggested

changes?

Who should take on leadership roles and responsibilities within the alliance?

Who should be part of the management team?

What kind of additional resources will be required for implementation? What

are promising potential funding sources?

9

Greater Philadelphia Metro Export Plan Elements

RATIONALE (Why are we doing a metro export plan?)

Persistently slow job growth has prompted Greater Philadelphia to focus on global business and export

strategies to expand its economy.

KEY FINDINGS (What did the market assessment tell us?)

1) Greater Philadelphia’s export economy is large and diverse, but its growth has been slow relative to

other metros.

2) Despite an overall decline in manufacturing, the region has maintained a competitive advantage in

several specialized goods-producing industries, including precision instruments, aircraft products and

parts, and medical equipment and supplies.

3) Greater Philadelphia has experienced recent export growth in leading service sectors, including research

and development, higher education, and software/IT, with potential for further expansion.

4) Many small- and mid-sized companies have limited awareness of their global growth potential or of

existing export services.

5) Greater Philadelphia has a comprehensive export support ecosystem, but some gaps and weak links

exist.

GOAL (What do we hope to ultimately accomplish?)

Accelerate regional job and revenue growth via a dynamic export economy

OBJECTIVES (What measurable outcomes will we achieve?)

Increase Greater Philadelphia’s export intensity to match or exceed the average for the top 100 US metros

within five years

Increase the number of identified new exporting firms in the region by 10 percent within five years

Elevate exports as a top-of-mind economic development priority among regional leaders within three

years

STRATEGIES (What will we do to achieve these objectives?)

Catalyze export growth for priority clusters

Build export awareness and capacity among the region’s SMEs

Strengthen and enhance coordination within Greater Philadelphia’s export support ecosystem

10

greater philadelphia metro export plan export support ecosystem...

Documents