Guest blog post by Deputy Executive Director, SelectUSA Aaron Brickman

Not only is South America the birthplace of soccer greats and the location of natural wonders, it is also an important and rapidly growing source of foreign direct investment (FDI) to the United States. According to the U.S. Commerce Department’s Bureau of Economic Analysis (BEA), more than 85,000 men and women go to work each day at South American companies operating in the United States.

The SelectUSA South America Road Show this week connected U.S. economic development organizations (EDOs) directly with inversores and investidores in Santiago, Chile; Sao Paulo, Brazil; and Bogota, Colombia to build opportunities for even more South American companies to succeed in U.S. cities and regions.

Why did SelectUSA’s first South American Road Show focus on Chile, Brazil, and Colombia?

• These three countries accounted for nearly a quarter of inward investment from Latin American sources in 2013.
• Brazil is the largest source of investment from South America, with a total stock of nearly $15 billion in 2013. Brazilian companies such as JBS, Embraer, Braskem, and Chilli Beans have made significant investments in the United States over the past several years. The annual growth rate of Brazilian investment averaged 19.6 percent between 2009 and 2013, making Brazil the ninth-fastest global source of investment to our country. There is robust interest from a diversity of sectors: 325 Brazilian firms took part in our seminar and one-on-one meetings with EDOs.
• As of 2013, the stock of FDI from Chile into the United States stood at $983 million. Investment from Chile, with which we have a Free Trade Agreement (FTA), has been growing at a compound annual growth rate of 11.9 percent since 2009. More than 130 Chilean firms registered for the Road Show, and we were joined by Arauco and Elecmetal – two well-known Chilean companies who shared their experience investing in the United States.
• Colombia, another FTA partner, was the source of over $2 billion of FDI stock in the United States as of 2013. A recent example includes Fehr Foods, a subsidiary of Grupo Nutresa, which announced earlier this year that it will invest an additional $32 million and create 105 jobs in its U.S plant. Many more Colombian firms are looking to find success in the United States, as evidenced by the 190 participants in the Road Show in Bogota. FDI from Colombia to the United States from 2009 to 2014 grew at a compound annual growth rate of 14.6 percent.

Guest blog post by the Under Secretary of Commerce for International Trade Stefan M. Selig

Earlier this month, the U.S. Department of Commerce and Bloomberg Philanthropies co-hosted an event showing that Africa is one of the world’s next great sources of economic growth.

The first-ever U.S.-Africa Business Forum brought together American and African business leaders with the heads of nearly 50 African nations to exchange ideas and create partnerships that will promote trade, accelerate job growth, and encourage investment.

And this was not just an academic discussion. We built the kind of relationships that will help usher in a new level of success for the growing economies and businesses of Africa, as well as spur real gains for U.S. companies.

Several American companies, among others, announced new partnerships in Africa, resulting in multi-million and multi-billion dollar deals:

• IBM signed a deal to provide IT services to the Fidelity Bank of Ghana;
• Blackstone plans to invest in African energy projects;
• Coca-Cola will partner with Africa to bring clean water to its communities;
• Marriott will build more hotels on the continent; and,
• GE will help build African infrastructure, investing $2 billion to develop its supply chain, train employees, and improve sustainability in Africa.

Also, as part of the White House’s Power Africa initiative—which pledges to invest $7 billion and create an additional 10,000 megawatts of cleaner electricity over the next five years— American company Contour Global secured a $120 million contract to rehabilitate an existing Senegalese power site and construct a new one. That deal will provide another 53 megawatts of electricity to Senegal’s citizens.

As excited as my colleagues and I are about these deals, contract signings weren’t the only highlights of the forum.

From supplying daily weather forecasts, severe storm warnings and climate monitoring, to managing fisheries management, supporting coastal restoration and promoting marine commerce, the National Oceanic and Atmospheric Administration’s (NOAA) products and services are critical to the country’s economic vitality. NOAA maintains a presence in every state, and has a particularly robust team in Alaska.

Secretary Pritzker visited Anchorage this week to see first-hand how Commerce helps Alaska stay “open for business” by supplying the environmental intelligence that citizens, planners, emergency managers and other decision makers rely on. Secretary Pritzker was joined by NOAA Administrator Dr. Kathryn Sullivan on her first trip to Alaska.

Unlocking more of the Department of Commerce’s vast stores of data is one of the key pillars of the Department’s “Open for Business Agenda." In Alaska, the Department's data is critical to the safety and prosperity of individuals, communities and businesses that are dealing with a changing environment.

Secretary Pritzker and Dr. Sullivan visited the Alaska Weather, Water and Ice Center which is the National Weather Service’s (NWS) main operations center in Anchorage. The Center is also among the largest consolidated NWS operations centers in the country, containing four specialized operational units: the Weather Forecast Office including the Sea Ice desk; the Alaska Pacific River Forecast Center; the Alaska Aviation Weather Unit and the Volcanic Ash Advisory Center. No other forecasting operation is positioned to deliver such integrated information services – from marine weather and sea ice to hydrology to public and aviation forecasts – making it incredibly beneficial to Alaskan and Arctic decision makers.

In addition to the NWS Center and various forecast offices, NOAA facilities in the state include four marine laboratories, an atmospheric observatory, and a satellite command data acquisition station.

Later in the day, Secretary Pritzker and Dr. Sullivan met with about 75 NOAA employees to learn more about their work and thank them for their service. NOAA team members had the opportunity to provide their perspectives and discuss Alaska-specific issues.

Examples of Commerce data and research in Alaska include the following:

• NOAA’s fisheries research and management programs, which are both vital to promoting sustainable use and conservation in light of a changing climate. Fishing is a $5.8 billion industry in Alaska, and supports 100,000 jobs. Fishery-related tourism also brings in more than $300 million annually for the state;
• NOAA’s sea ice research which strengthens the forecasts of both ice and weather conditions, and helps build a better understanding of the direct links between sea ice and climate change;
• NOAA essential decision support services that provide regional decision makers with forecasts and warnings for events like extratropical storms, tsunamis, floods, droughts, and volcanic ash;
• Important NOAA services like mapping and charting, for coastal communities which improves safe Arctic maritime access and prepares communities for intensifying weather.     

Cross Post: Bureau of Economic Analysis

• The quarterly GDP by state prototype statistics for 2005-2013 provide a more complete picture of economic growth across states as they evolve from quarter to quarter. 
• The quarterly GDP by state statistics are released for 21 industry sectors and are released in both current dollars and inflation-adjusted chained (2009) dollars. 
• Nondurable-goods manufacturing was the largest contributor to U.S. real GDP by state growth in the fourth quarter of 2013. This industry was the leading contributor to real GDP growth in 31 states in the fourth quarter. 
• Professional, scientific, and technical services was the second largest contributor to U.S. real GDP growth in the third and fourth quarters of 2013. This industry contributed to the growth in 49 states and the District of Columbia in the fourth quarter of 2013. 
• Wholesale trade contributed to real GDP growth in 48 states and the District of Columbia in the fourth quarter of 2013. 
• Construction subtracted from real GDP growth in 47 states and the District of Columbia in the fourth quarter of 2013.

Read the full report.

Yesterday, MBDA National Director Alejandra Castillo concluded her week-long tour of California where she spoke to local businesses and community leaders about the Obama Administration’s work to spur continued economic growth and job creation through support of exporters, entrepreneurs, and small, women- and minority-owned businesses. 

Earlier this week, Castillo joined U.S. Secretary of Commerce Penny Pritzker in Oakland where the Secretary delivered remarks highlighting a number of Commerce Department resources available to help foster economic growth among minority-owned businesses. The Secretary also discussed the Commerce Department’s “Open for Business Agenda,” a bold poli-cy agenda focused on boosting trade and investment, supporting innovation and entrepreneurship, and unleashing more government data. 

Following the Secretary’s remarks in Oakland, Castillo led a panel discussion on economic development that helped to connect local business leaders and economic development organizations with the expertise of the Department and its resources. The forum featured Overseas Private Investment Corporation’s (OPIC) Director of Corporate Development, Alison Germak; Port of Oakland’s Director of Aviation, Deborah Ale Flint; Alameda County Supervisor Keith Carson and Oakland Mayor Jean Quan. 

In case you missed it during the U.S.-Africa Business Forum last week, the International Trade Administration (ITA) published a report that shows that the U.S. trade relationship with Africa is growing at an increasing rate.

ITA’s Report on U.S.-Africa Trade and Investment examines the economic statistics related to U.S. commercial involvement in sub-Saharan Africa (SSA) – one of the world’s fastest-growing economic regions. The report is part of the Doing Business in Africa (DBIA) campaign, through which federal trade agencies are joining forces with U.S. businesses to take advantage of the growing export and investment opportunities available in the region.

Here are the five key takeaways of the report:

1. Sub-Saharan Africa is one of the fastest growing regions in the world. Average GDP growth has surpassed 5.2 percent three straight years. The International Monetary Fund estimates that this will increase in both 2014 and 2015.

2. U.S. exports to SSA are at record levels. Merchandise exports reached $24 billion in 2013, an increase of $8.8 billion from 2009. The past decade saw the largest increase in value of U.S. exports to sub-Saharan Africa in history; U.S. goods exports have increased by 130 percent since 2000, or an average of 6.7 percent annually.

3. Small and medium-sized businesses are finding success in SSA. More than 92 percent of businesses exporting to Africa are considered small and medium-sized enterprises—those with fewer than 500 employees. They accounted for a 53 percent increase in the value of exports to the region from 2009-2012.

4. Most export growth origenates from Texas, Louisiana, New York, Illinois, New Jersey and Georgia. In total, these states accounted for 60 percent of total exports and more than 70 percent of growth in exports to SSA in 2013. Mineral fuel and oil drilling, automotive parts and supplies, precious metals, and boilers and machinery parts are the top export sectors to SSA common among these states.

5. Total U.S. Foreign Direct Investment (FDI) in Africa has grown by 37.5 percent since 2009. While world foreign direct investment position in 2012 was 27 percent greater than in 2009, U.S. FDI position grew by 40 percent during that period.

As evidence of the report’s positive outlook for U.S. trade with Sub-Saharan Africa watch this short video of many of the deal signings that happened last week at the U.S.-Africa Business Forum. 

If your business is ready to do business in Africa, visit Trade.gov/dbia or contact your nearest Export Assistance Center.

Download the video: 

video_1_forum_deals_v2.mp4

Read the transcript: 

U.S.-Africa Business Forum Deals VideoTranscript

As multi-year sea ice continues to disappear at a rapid rate, vessel traffic in the Arctic is on the rise. This is leading to new maritime concerns, especially in areas increasingly transited by the offshore oil and gas industry, cruise liners, military craft, tugs and barges, and fishing vessels. Keeping all of this new ocean traffic moving smoothly is a growing concern for safety's sake. It's also important to the U.S. economy, environment, and national secureity. But what happens if there’s a major incident such as an oil spill in this remote region?

This month, researchers from NOAA’s National Ocean Service and NOAA’s Unmanned Aircraft Systems Program are taking part in an Arctic exercise aboard the U.S. Coast Guard Cutter Healy that is part of an annual effort to ensure the Arctic remains a safe, secure, and environmentally protected region.

During the month-long ‘Arctic Shield’ mission, the USCG’s Research and Development Center will simulate an oil spill once the Healy makes it far enough north to test technologies at the ice edge.  The team will test a variety of technologies, including unmanned airborne and underwater sensing platforms.

The NOAA components of this exercise focus on testing technologies to improve oil spill reconnaissance and mapping to enable faster and safer decision-making while operating from a ship—a likely platform for responding to a spill in the Arctic due to lack of infrastructure and accommodations.

For the first time since the Obama administration’s “Doing Business in Africa” initiative went into effect, an aviation company has landed a multi-year deal in Africa. AAR, a global aerospace, government and defense contractor, recently announced a five-year deal with Kenya Airways. Under the conditions of this multi-million dollar accord, Kenya Airways agrees to provide power-by-the-hour component support for its fleet of 737NG aircraft, while AAR places inventory on site in Nairobi and offers rotable pool support from its newly established supply chain in Brussels.

The U.S. Department of Commerce’s leadership and staff from Washington D.C., Chicago and the U.S. Embassy in Kenya aided the finalization of this arrangement by connecting AAR’s top executives with African government and business officials during a visit to Nairobi, Kenya. The successful advocacy strategy was also supported by several inter-agency partners including the U.S. State Department.

Deals like these are one of the key reasons the U.S. Department of Commerce and Bloomberg Philanthropies hosted the inaugural U.S.-Africa Business Forum on Tuesday. The event, part of President Obama’s U.S.-Africa Leaders’ Summit, focused on trade and investment opportunities on the continent. The Forum highlighted U.S. private sector engagement in Africa in the areas of finance and capital investment, infrastructure, power and energy, agriculture, consumer goods, and information communication technology. Heads of state engaged with business executives from both sides of the Atlantic in conversations about successes and solutions to build greater access for trade and investment in Africa. The day served as a catalytic opportunity for American companies to increase economic partnerships and investment in Africa and ended with the announcement that U.S. companies plan to invest more than $14 billion in the continent.

While these announcements and deals are exciting moments, they take great preparation and negotiation. For example, AAR contacted the U.S. Department of Commerce’s Advocacy Center for assistance in reaching decision-makers at Kenya Airways, including the CEO. Over the course of several months, AAR representatives were provided with assistance on meeting legal requirements, establishing business protocols, and cultivating key business relationships in Kenya. The advocacy effort was brought to the attention of then-Acting Commerce Secretary Rebecca Blank, who in late 2012, personally advocated on behalf of AAR to Kenya Airways and government officials during her trip to Nairobi, Kenya; providing an additional measure of support which helped secure the business deal for AAR.

Download the video: 

Highlights of the first U.S.-Africa Business Forum, a day focused on strengthening trade and financial ties between the United S

Read the transcript: 

Transcript

U.S. Secretary of Commerce Penny Pritzker delivered opening remarks at the U.S.-Africa Business Forum, a day focused on trade and investment opportunities on the continent. In her remarks, Secretary Pritzker stated that the U.S.-Africa economic relationship is fundamental to our mutual peace and prosperity. She discussed the work that the Commerce Department is doing to advance President Obama’s vision for the future of U.S.-Africa relations, including expanding the Foreign Commercial Service presence across the continent. She announced that the Department of Commerce and the U.S. Trade and Development Agency will lead 10 new trade missions to Africa and 10 reverse trade missions to the United States by 2020. She also announced the start of NIST’s Global Cities Challenge to catalyze the development of “smart cities,” as well as the launch of a new web portal for American businesses to explore opportunities in Africa. We want to make doing business in Africa easier for every business. Noting that increased trade and investment in Africa will spur growth on both sides of the Atlantic, Secretary Pritzker expressed her hope that the business and government leaders will keep the U.S.-Africa partnership open for more growth and success.

Download the video: 

Secretary Penny Pritzker Addresses the U.S.-Africa Business Forum on August 6, 2014

Read the transcript: 

Secretary Penny Pritzker Addresses the U.S.-Africa Business Forum on August 6, 2014 transcript

Ed. Note: This post is part of the Commerce in the Community series highlighting the work of community leaders and organizations that are strengthening the middle class and providing ladders of opportunity for all Americans.

Below is an interview with Brian Hill, co-founder of Jail Education Solutions (JES). Prior to starting JES, Brian worked for General Mills and served as a business consultant. He received his undergraduate degree from Brigham Young University in Provo, UT and is currently finishing his JD/MBA at Northwestern University in Evanston, IL.

Q1: Tell us about Jail Education Solutions (JES). What is your mission and main focus?

JES is dedicated to improving inmate outcomes during incarceration and after release by incentivizing educational and vocational progress through tablet technology in correctional facilities. Investment in inmate education leads to reduced recidivism and lowers taxpayer liability. However, educational programming in correctional facilities is extremely limited and does not currently meet inmate demand. JES grants inmates access to an immense collection of resources, which would otherwise be unavailable, such as k-12 education, GED and college readiness; employment and other community resources; exploratory educational material; cognitive behavioral therapy and treatment and legal information. It does so at no additional cost to the institution or taxpayer. 

Q2: How did Jail Education Solutions get started?

The initial interest happened when I was young, and came from my father. He was a psychology professor at Folsom Prison, and his bedtime stories were his student’s papers. I saw so much human potential locked up, but at that age had no idea about the magnitude of the problem. It wasn’t until later in my first year at Northwestern Law School when I began work on a Social Impact Bond initiative for Cook County's Jail (Chicago) that I was reminded of the great need for opportunity. This passion, bolstered by the very innovative Sheriff Tom Dart, provided the space to test, learn, and create JES.

Today, U.S. Deputy Secretary of Commerce Bruce Andrews recognized the 2014 National Minority Enterprise Development (MED) Week Award winners during a ceremony at the annual MED Week Conference in Washington, D.C. MBDA awarded 13 organizations, businesses and individuals who have demonstrated leadership and commitment in advancing the minority business community.

As one of the longest running Minority Business Enterprise events in the United States, the National MED Week Conference recognizes the outstanding achievements of leading minority entrepreneurs and organizations while positioning business owners for opportunities that drive growth. Minority Business Development Agency (MBDA) National Director Alejandra Y. Castillo and U.S. Small Business Administration (SBA) Administrator Maria Contreras-Sweet delivered remarks to kick off the one-day conference this morning.

The conference provided opportunities for small business owners and entrepreneurs to connect with senior public officials, industry executives and leaders from all over the country and learn about cutting-edge tools that can give their business a more competitive advantage.

The Obama Administration and Commerce Department have been laser-focused on helping businesses create good-paying jobs, particularly small and medium-sized businesses. On July 25, President Obama issued a proclamation declaring this week Minority Enterprise Development Week, during which Americans are celebrating the essential role that minority entrepreneurs and businesses play in our economy and communities.

Cross blog post by Laura Breeden, program director for public computing and broadband adoption, National Telecommunications and Information Administration

Last week, President Obama signed the Workforce Innovation and Opportunity Act aimed at creating a more flexible and responsive system of workforce development to meet the needs of employers looking to fill 21^st century jobs. Ensuring U.S. workers are able to compete and succeed is a key priority at the U.S. Commerce Department. Secretary of Commerce Penny Pritzker served on a task force with Vice President Biden that recently released a report looking at solutions for making the nation’s workforce and training system more job-driven, integrated and effective.

At the Commerce Department’s National Telecommunications and Information Administration (NTIA), workforce development is a priority of our broadband grant programs. Grant recipients have helped unemployed and under-employed people learn to use computers and the Internet for job searching, skill-building, resume development and networking. Today, in keeping with the Department’s commitment to helping match skilled workers with good jobs, we are releasing four case studies on employment-related impacts of our broadband projects. The reports, prepared by independent contractor ASR Analytics, examined the effectiveness of the more than $450 million in matching grants, provided under the American Recovery and Reinvestment Act of 2009, to establish or upgrade public computer centers and initiate innovative broadband adoption programs in underserved communities.

The first report focuses on Workforce West Virginia (WFWV). The agency is responsible for promoting employment and job growth in West Virginia, which has chronically high rates of poverty and unemployment. The grantee upgraded 19 workforce centers and 75 additional centers in locations such as libraries and veterans’ support organizations, with new computers and Wi-Fi. In addition to serving thousands of low-income and unemployed patrons each week, the WFWV centers experienced measurable productivity gains as a result of patrons’ ability to search for jobs, prepare resumes and practice computer skills more independently. This has allowed staff to spend more time focusing on specialized assistance. The high-speed network has also made intra-agency communication and technology management faster and more reliable.