Lansing State officials focus on expanding state exports Michigan sent abroad $45 billion worth of goods in 2010

By Kathy Barks Hoffman Associated Press LANSING, Mich. (AP) -- Michigan is in a unique position to expand its exports, with a new South Korean trade deal opening the way to more autos and agricultural products such as blueberries and tart cherries and more Michigan-based companies seeking to send their products abroad. Yet state economic development officials say that, although Michigan was the nation's eighth-largest exporting state in 2010, not enough Michigan companies are selling products abroad or looking to markets beyond neighboring Canada. Companies that do export or want to export are having trouble getting their goods to other places. Gov. Rick Snyder strongly supports expanding exports and eliminating any hurdles slowing that growth. During his Jan. 18 State of the State address, the Republican governor said that a new international bridge between Detroit and Canada and road, rail and port improvements must be built to enable more exports. A growing number of groups are joining in the call. "The challenge for Michigan agriculture, which has remained strong even in tough economic times, is how we continue growing in a global economy with skyrocketing demand for food, fuel and fiber -- and the key is making sure we have strong, reliable infrastructure," Jim Byrum, president of the Michigan Agri-Business Association, said in a statement. "We need to make sure we have good roads and bridges (and) a modern and reliable freight rail network that can serve businesses in rural communities." A package of bills aimed at raising $1.4 billion more to fix roads and bridges through higher vehicle registration fees and changing the way gasoline and diesel fuel are taxed has just been introduced in the Legislature, and Snyder continues to encourage reluctant GOP lawmakers to approve the building of the new international bridge. "We need to continue our efforts since it's not a bridge issue, it's a jobs issue," he said during his second State of the State address. It's not a new theme for Snyder. Last year, during his first State of the State speech, the governor surprised Republican lawmakers by calling for building a bridge separate from the existing Ambassador Bridge, stressing the importance of adding a faster way across the international border to aid exports. "This project isn't just a Detroit issue. Every farmer and manufacturer in our state can tell you why it's important to have world trade," he said. "This new bridge will create jobs, strengthen our economy and help establish Michigan as a hub for global commerce." Michigan sent abroad $45 billion worth of transportation equipment, chemicals, machinery, primary metals, agricultural products, computers, electronics and other goods in 2010, the last year for which figures are available. The state accounted for 3.5 percent of U.S. total exports that year. The federal International Trade Administration reports that total export-related employment accounted for 212,000 Michigan jobs in 2009. A study released last year by the Washington-based Brookings Institute involving 2008 data and including jobs at companies that supported exporters showed that the Detroit-Warren-Livonia metropolitan area ranked fifth out of the 100 metro areas studied in export jobs, at 239,910. Average wages in Michigan's largest export industry, transportation equipment manufacturing, were much higher in 2008 -- $76,706 -- than the national average export wage of $45,563, according to the study. The wage figures may have shrunk with the adoption since then of two-tier pay scales by the domestic automakers. But Jeanne Broad, international trade development manager with the Michigan Economic Development Corp., the state's business development arm, said jobs in companies that export still tend to pay 15 percent to 18 percent more than jobs at non-exporting companies. The state has seen exports drift lower since 2007, Broad said. To combat that, the MEDC last year created an eight-person staff to help businesses that want to do more exporting and attracted a $1.5 million federal grant used to launch the Pure Michigan State Trade Export Promotion program to help small- and medium-sized businesses start or expand exports. The federal government also is interested in helping U.S. companies and has three export assistance centers in the state in Pontiac, Grand Rapids and Detroit. The Van Andel Global Trade Center, a part of Grand Valley State University named after one of the co-founders of international direct-marketing giant Amway Inc., offers consulting and training services. The Michigan Department of Agriculture and Rural Development is working with farmers and food processors to send their products abroad. Several of the state's airports, including Detroit Metropolitan Airport, are changing to become international trade hubs. Yet even with all the public-sector assistance, the real push to get more products into the global marketplace has to come from Michigan companies and agribusinesses, economic development experts said. Nearly half of Michigan's exports go to Canada and another large chunk goes to Mexico, but only a small fraction goes further abroad. "Exporting to Canada is a good thing, and many companies now want to export more to Canada. But we also need to recognize that there are a lot of growing markets around the world, and Michigan businesses need to do a better job of accessing some of the market potential in those growing markets," Broad said Wednesday during an exporting forum sponsored by Michigan State University's Institute for Public Policy and Social Research. Zeeland Farm Services, a family-run company that employs 200 people in southwest Michigan, buys non-genetically modified soybeans from 150 to 200 Michigan farmers to make into 40,000 tons of soybean meal it ships to Japan each year, ZFS international sales and marketing manager Darwin Rader said. The company has built on its overseas relationships for more than a decade. "Here in the States, I might see someone on the Internet, call them up on the phone and ... start shipping," Rader told the forum. "Overseas, a lot of times they want to meet you personally. They want to sit down to dinner with you. In fact, they might even want to do it more than once. "So it isn't as simple as just ... taking an order over the phone or over the Internet and shipping the product out," he added. "It's very relationship-oriented." Published: Wed, Feb 15, 2012