presenter: karen l. kurek- national manufacturing & distribution practice leader, mcgladrey llp...
TRANSCRIPT
![Page 1: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/1.jpg)
Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP
MVITA World Trade Day- Sponsored by Battelle & Battelle
Outward bound: Global strategies and exporting
May 16, 2013
![Page 2: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/2.jpg)
Source: Bureau of Economic Analysis, NAM calculations using Moody’s Analytics simulation model
2
Real gross domestic product(Chained 2005 dollars)
![Page 3: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/3.jpg)
Source: Bureau of Economic Analysis3
Percentage growth in real GDP and contributions to real GDP of goods and services
![Page 4: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/4.jpg)
Source: Bureau of Labor Statistics4
Employment situation
![Page 5: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/5.jpg)
Source: Bureau of Labor Statistics
5
Manufacturing sectors with the largest net employment gains
![Page 6: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/6.jpg)
Source: U.S. Census Bureau, National Association of Home Builders6
Housing market situation
Housing starts, permits (in thousands of units)
NAHB Housing Market Index
![Page 7: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/7.jpg)
7
Global manufacturing output
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2001 2002 2003 2004 2005 2006 2007 2008 2009
United States China (World Bank) Japan Germany Republic of Korea
Italy United Kingdom France India Mexico
![Page 8: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/8.jpg)
8
![Page 9: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/9.jpg)
How is that possible?
“But I never see any American products in the stores.
how can America be the world’s largest manufacturer?”
In 2010, U.S. factories produced $5.02 TRILLION of products, including:
- Chemicals, excl. Pharmaceuticals $526 Billion
- Computing Equipment $397 Billion
- Motor Vehicles $360 Billion
- Metal Products $327 Billion
- Industrial and Other Machinery $298 Billion
- Steel and Other Primary Metals $239 Billion
- Pharmaceuticals $186 Billion
- Plastics and Rubber Products $185 Billion
- Aircraft $147 Billion
- Electrical Equipment $115 Billion
9Source: U.S. Census Bureau
![Page 10: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/10.jpg)
Source: Institute for Supply Management 10
ISM manufacturing indices
![Page 11: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/11.jpg)
Manufacturers’ shipments, inventories and orders
New orders for manufactured goods in February increased $14.5 billion or 3.0 percent to $492.0 billion.
Shipments increased $4.3 billion or 0.9 percent to $489.3 billion.
Unfilled orders increased $9.3 billion or 0.9 percent to $999.7 billion.
Inventories increased $1.1 billion or 0.2 percent to $620.0 billion.
11Source: U.S. Department of Commerce – February 2013 – Census Bureau
![Page 12: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/12.jpg)
Source: Bureau of Economic Analysis, 2011 Annual Input-Output Tables
![Page 13: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/13.jpg)
13
U.S. manufacturing is the world’s most productive
![Page 14: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/14.jpg)
14Source: McKinsey Global Institute
Manufacturing contributes to exports, innovation and productivity growth
![Page 15: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/15.jpg)
Manufacturing and business R&D
Source: National Science Foundation
![Page 16: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/16.jpg)
16
Manufacturing generates 2/3 of all U.S. exports
![Page 17: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/17.jpg)
17
Made in America: The Top 10 Manufacturing Sectors that Export
Source: Business Insider - March 8, 2012 / Brookings
Transportation Equipment
Share of U.S. manufacturing exports: 18.5%
Share of manufacturing export growth: 17.0%
Total growth rate: 13.2%
Total revenue: $175.8 billion
The top 10 manufactured products in America's $2 trillion export industry
![Page 18: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/18.jpg)
18Source: Business Insider - March 8, 2012 / Brookings
Chemicals
Share of U.S. manufacturing exports: 18%
Share of manufacturing export growth: 16.4%
Total growth rate: 13.1%
Total revenue: $171.2 billion
Made in America: The Top 10 Manufacturing Sectors that Export
![Page 19: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/19.jpg)
19Source: Business Insider - March 8, 2012 / Brookings
Machinery
Share of U.S. manufacturing exports: 13.1%
Share of manufacturing export growth: 17.5%
Total growth rate: 20.4%
Total revenue: $124.6 billion
Made in America: The Top 10 Manufacturing Sectors that Export
![Page 20: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/20.jpg)
20Source: Business Insider - March 8, 2012 / Brookings
Computer and Electronic Products
Share of U.S. manufacturing exports: 12.8%
Share of manufacturing export growth: 13%
Total growth rate: 14.8%
Total revenue: $121.4 billion
Made in America: The Top 10 Manufacturing Sectors that Export
![Page 21: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/21.jpg)
21Source: Business Insider - March 8, 2012 / Brookings
Petroleum and Coal Products
Share of U.S. manufacturing exports: 6.4%
Share of manufacturing export growth: 5.4%
Total growth rate: 12.0%
Total revenue: $50.9 billion
Made in America: The Top 10 Manufacturing Sectors that Export
![Page 22: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/22.jpg)
22Source: Business Insider - March 8, 2012 / Brookings
Food
Share of U.S. manufacturing exports: 5.4%
Share of manufacturing export growth: 4.5%
Total growth rate: 12.0%
Total revenue: $50.9 billion
Made in America: The Top 10 Manufacturing Sectors that Export
![Page 23: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/23.jpg)
23Source: Business Insider - March 8, 2012 / Brookings
Primary Metal
Share of U.S. manufacturing exports: 5.2%
Share of manufacturing export growth: 5.1%
Total growth rate: 14.2%
Total revenue: $49.6 billion
Made in America: The Top 10 Manufacturing Sectors that Export
![Page 24: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/24.jpg)
24Source: Business Insider - March 8, 2012 / Brookings
Medical Equipment, Sporting Goods and Miscellaneous
Share of U.S. manufacturing exports: 4.1%
Share of manufacturing export growth: 2.9%
Total growth rate: 9.6%
Total revenue: $39.4 billion
Made in America: The Top 10 Manufacturing Sectors that Export
![Page 25: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/25.jpg)
25Source: Business Insider - March 8, 2012 / Brookings
Fabricated Metal Products
Share of U.S. manufacturing exports: 3.4%
Share of manufacturing export growth: 3.9%
Total growth rate: 16.8%
Total revenue: $32.6 billion
Made in America: The Top 10 Manufacturing Sectors that Export
![Page 26: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/26.jpg)
26Source: Business Insider - March 8, 2012 / Brookings
Electrical Equipment
Share of U.S. manufacturing exports: 3.4%
Share of manufacturing export growth: 3.4%
Total growth rate: 14.7%
Total revenue: $32.2 billion
Made in America: The Top 10 Manufacturing Sectors that Export
![Page 27: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/27.jpg)
27
0
40
80
120
160
200
240
2 4 6 8 10 12 14
Canada
Mexi
co
Chin
a
UK
Germ
any
Japan
Bra
zil
Kore
a
Neth
erlands
Bill
ions
of D
olla
rs
Sin
gapore
Fra
nce
Hong K
ong
Belg
ium
Taiw
an
Aust
ralia
15 ECONOMIES ACCOUNT FOR 75% OFU.S. EXPORTS OF MANUFACTURED GOODS
Half of major U.S. markets are developing economies
![Page 28: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/28.jpg)
Source: Markit
PMI for Top 10 Export Markets
![Page 29: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/29.jpg)
-800
-600
-400
-200
0
1998 2000 2002 2004 2006 2008 2010
U.S. TRADE BALANCE IN GOODSB
illio
ns
of D
olla
rs
Source: Census Bureau
The U.S. has a huge trade deficit…
29
![Page 30: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/30.jpg)
. . . which many say was caused by NAFTA and other U.S. trade agreements.
30
![Page 31: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/31.jpg)
-120
-80
-40
0
1998 2000 2002 2004 2006 2008 2010
MERCHANDISE TRADE BALANCE WITH U.S.FREE TRADE PARTNERS
Bill
ions
of D
olla
rs
Balance w ith the 17 countries w ith w hich the United Stateshas Free Trade Agreements
Source: Census Bureau
It is true there has been a large increase in the trade deficit with free trade partners
31
![Page 32: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/32.jpg)
But the increase is because of our oil imports from NAFTA . . .
32
1/3 of U.S. worldwide energy imports come from NAFTA
-160
-120
-80
-40
0
90 92 94 96 98 00 02 04 06 08 10
U.S. ENERGY IMPORTS FROM NAFTA
Bill
ions
of D
olla
rs
Source: Foreign Trade Division, U.S. Census Bureau, NAICS 2111, 2121, 3241
![Page 33: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/33.jpg)
. . . not because of a soaring deficit in manufactured goods
33
-300
-250
-200
-150
-100
-50
0
50
1998 2000 2002 2004 2006 2008 2010
MANUFACTURED GOODS DEFICITWITH FTA PARTNERS
Bill
ion
s o
f Do
llars
Source: Census Bureau
In fact, U.S. manufacturers have now enjoyed a SURPLUSwith free trade partners for three straight years
![Page 34: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/34.jpg)
But we don’t have enoughfree trade agreements
U.S. free trade agreements cover only about 40 percent of manufactured good exports– about 45 percent once Columbia, Korea and Panama are in effect
U.S. manufacturers face trade barriers in almost 60 percent of our overseas market
34
![Page 35: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/35.jpg)
Source: U.S. Department of Commerce
![Page 36: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/36.jpg)
Source: U.S. Department of Commerce
![Page 37: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/37.jpg)
37
![Page 38: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/38.jpg)
Exports and export markets
38Source: McGladrey Monitor- Fall 2011
![Page 39: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/39.jpg)
39Source: McGladrey Monitor- Fall 2011
Exports and export markets
![Page 40: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/40.jpg)
Exports and export markets
40
Industry sectors in the upper-tier produce highly engineered products, thus enabling them to distinguish themselves in foreign markets from locally produced products.
Source: McGladrey Monitor- Fall 2011
![Page 41: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/41.jpg)
Emerging Markets: Which are important today and tomorrow
Brazil is rising quickly as an export market and South America in general is high on the list for U.S. companies.
41
Source: McGladrey Monitor- Fall 2011
![Page 42: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/42.jpg)
Perceived barriers to export trade for non-exporters
42Source: McGladrey Monitor- Fall 2011
![Page 43: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/43.jpg)
Top strategic priorities for exporting
43
Thriving and growing
Holding our own
Long-term market growth 54% 37%
Served specific customer demand/key customer asked
52% 57%
Strategic decision 40% 30%
Opportunistic reasons (can include networking introduction)
15% 17%
Began a joint venture 7% 0%
Source: McGladrey Monitor- Fall 2011
![Page 44: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/44.jpg)
How to build an export strategy
44Source: 2011 Fall McGladrey Monitor
![Page 45: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/45.jpg)
45
Exporting best practices
It starts with your customers Then be strategic
Leverage your advisors
Resources
Needs
Source: 2011 Fall McGladrey Monitor
Ensure you have the right resources in place
![Page 46: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/46.jpg)
46
Exporting best practices
Level the international playing field for your company
Leverage industry and U.S. government resources
Know your foreign markets
Know my
fore
ign mark
ets
Local Regulations
Regulatory Issues
Advisor
Client
Source: 2011 Fall McGladrey Monitor
![Page 47: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/47.jpg)
U.S. halfway to Obama administration's five-year export-doubling goal
Obama set the five-year target in his January 2010 State of the Union address with the 2009 exports of $1.57 trillion
As of 2012 they've climbed to a record of $2.19 trillion
This is about 48 percent of his goal - $3.14 trillion a year by the start of 2015
47
Obama tells his export advisory council the nation was "well on our way" to his five-year export-doubling goal.
Source: AP- April 4, 2013
![Page 48: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/48.jpg)
Direct presence in a foreign market
48Source: McGladrey Monitor- Fall 2011
![Page 49: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/49.jpg)
Off-shore production by large companies
49Source: McGladrey Monitor- Fall 2011
![Page 50: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/50.jpg)
Offshore supply chain procurement
43 percent say that foreign sourcing for their supply chain will increase in the coming 18 months .Nearly 60 percent say they are not going to increase foreign sourcing in next 12-18 months.
50Source: McGladrey Monitor- Fall 2011
![Page 51: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/51.jpg)
Why the optimism toward a manufacturing comeback?
Cheap U.S. natural gas and other increased energy production are helping to power U.S. factories more efficiently, with gas especially providing inexpensive raw materials for U.S. manufacturers of plastics, tires, certain pharmaceuticals and other petrochemical products.
Higher wages in China and other foreign export markets are making outsourcing less profitable to U.S. firms.
Congressional approval in 2011 of trade agreements with South Korea, Colombia and Panama and other agreements being negotiated now with Asia and Europe are promising to open more foreign markets to U.S. products.
High U.S. unemployment is relieving pressure on factory owners to increase wages, helping to make U.S. labor costs more globally competitive.
Major technology advances have steadily boosted factory efficiency and worker productivity.
51Source: AP- April 4, 2013
![Page 52: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/52.jpg)
Experience the power of being understood.SM
www.mcgladrey.com
52
![Page 53: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/53.jpg)
Contact Me
53
Karen L. Kurek
National Industrial Products Practice Leader, McGladrey
![Page 54: Presenter: Karen L. Kurek- National Manufacturing & Distribution Practice Leader, McGladrey LLP MVITA World Trade Day- Sponsored by Battelle & Battelle](https://reader037.vdocument.in/reader037/viewer/2022110400/56649dd15503460f94ac7887/html5/thumbnails/54.jpg)
McGladrey LLP is an Iowa limited liability partnership and the U.S. member firm of RSM International, a global network of independent accounting, tax and consulting firms. The member firms of RSM International collaborate to provide services to global clients, but are separate and distinct legal entities that cannot obligate each other. Each member firm is responsible only for its own acts and omissions, and not those of any other party. McGladrey®, the McGladrey logo, the McGladrey Classic logo, The power of being understood®, Power comes from being understood®, and Experience the power of being understood® are registered trademarks of McGladrey LLP. © 2013 McGladrey LLP. All Rights Reserved.
McGladrey LLP
AddressCity
Phone
800.274.3978www.mcgladrey.com