Enhance economic growth for all Americans by developing partnerships with private sector and nongovernmental organizations

STRATEGIC OBJECTIVE 1.1 TOTAL RESOURCES
(Dollars in Millions)

	FY 2000	FY 2001	FY 2002	FY 2003	FY 2004	FY 2005	FY 2006	FY 2007
Fiscal Dollars	$690.8	$756.9	$677.5	$645.0	$633.2	$625.6	$627.1	$601.8
FTE – Full-Time Equivalent	2,338	2,240	1,990	2,013	1,869	1,908	1,849	1,653

STRATEGIC OBJECTIVE 1.1 PERFORMANCE RESULTS

Rating	Number of Reported Results
	FY 2000	FY 2001	FY 2002	FY 2003	FY 2004	FY 2005	FY 2006	FY 2007
Exceeded Target	5	3	9	12	7	5	10	12
Met Target	8	10	9	22	25	16	13	12
Slightly Below Target	1	0	2	2	0	0	1	0
Did Not Meet Target	3	3	8	5	4	2	4	3
See Appendix A: Performance and Resource Tables for individual reported results.

This objective focuses on increasing private enterprise and job creation in economically distressed communities and regions, improving community capacity to achieve and sustain economic growth, increasing trade opportunities for U.S. firms to advance U.S. international commercial and strategic interests, expanding the U.S. exporter base, improving the U.S. competitive advantage through global e-commerce, and increasing opportunities and access for minority-owned businesses to the marketplace and financing.

EDA provided a $1.2 million investment to the Moultrie-Colquitt County Development Authority in Moultrie, GA. This partnership investment with the City of Moultrie provided the wastewater sewer improvement infrastructure to support a high-tech poultry processing plant and assisted in the diversification of the local agriculturally-based economy. The private investment exceeded the original forecasted private investment of $80 million. This investment also addressed the region’s Comprehensive Economic Development Strategy (CEDS) through state and local collaborations, and focused on enhancing the regional agribusiness cluster to diversify the local economies of rural southwest Georgia. Part of the project supported a partnership between Moultrie and Valdosta Technical Colleges and the poultry processing plant to train the plant workers and contract growers to handle state-of-the-art technology.

EDA awarded a $1,625,000 investment to Lee County, MS and Community Development Foundation to establish a business incubator. This incubator, located in Tupelo, MS, just recently opened and is presently operating with over eight businesses creating 24 new jobs.

An EDA investment in the city of Hornell, NY, assisted in the expansion of the South Yard Industrial Park and consisted of the construction of a 400-foot access road and a 15,000 square foot manufacturing building. An initial estimate indicates it has exceeded its private investment and job creation forecasts of $13.2 million and 115 jobs respectively, and was consistent with the region’s CEDS. Most importantly, the investment addressed EDA’s investment funding priorities by promoting regionalism and entrepreneurship. It leveraged the area’s transit car construction/refurbishing cluster, was tailored to the existing skills of the local workforce, and is now home to a start-up company.

Another EDA investment in Joplin, MO, aided in the purchase and renovation of an 11,000 square foot building for reuse as a small business incubator, the Joseph Newman Innovation Center (JNIC). Since its opening, nine companies have rented space in the center. The center currently houses six companies and is reviewing four other companies. The center was constructed as part of a 2001 Joplin Chamber of Commerce plan to attract firms based on the area’s information technology-driven and entrepreneurial culture. It is estimated that at least 400 jobs will be created as a result of the JNIC and approximately $13.5 million in private investment will be leveraged.

SUMMARY OF STRATEGIC OBJECTIVE 1.1 PERFORMANCE OUTCOMES

PERFORMANCE OUTCOME	TARGETS MET OR EXCEEDED
Increase private enterprise and job creation in economically distressed communities (EDA)	6 of 6
Improve community capacity to achieve and sustain economic growth (EDA)	6 of 6
Enhance U.S. competitiveness in domestic and international markets (ITA)	2 of 4
Broaden and deepen U.S. exporter base (ITA)	5 of 6
Increase access to the marketplace and financing for minority-owned businesses (MBDA)	5 of 5

Performance Outcome: Increase private enterprise and job creation in economically distressed communities (EDA)

Working with economically distressed communities and regions to create jobs and expand the economy.

Preliminary data collected through the Government Performance and Results Act (GPRA) process for investments made in FY 1998, FY 2001, and FY 2004 indicate that these EDA investments have helped generate more than $48 billion in private sector investment and create and retain 139,600 jobs.

EDA tracks the amount of private investment generated and jobs created or retained as a result of EDA investments at three, six, and nine-year intervals. The following table shows the targets and actuals for the amount of private investment generated and jobs created or retained for funding provided in FY 1998, FY 2001, and FY 2004.

EDA INVESTMENTS IN FY 1998, FY 2001, AND FY 2004

	YEAR INVESTED
	1998	2001	2004
PRIVATE INVESTMENT GENERATED
Target	$1,300M	$1,200M	$330M
Actual	$1,937M	$2,118M	$810M
# Difference	$637M	$918M	$480M
% Difference	49%	77%	146%
JOBS CREATED/RETAINED
Target	54,000	36,000	8,998
Actual	73,559	49,806	16,274
# Difference	19,559	13,806	7,276
% Difference	36%	38%	81%

In FY 2007, a F5 tornado touched down on the City of Greensburg, KS that virtually destroyed the entire town of some 1,500 residents. A pending EDA investment of $50,000 will assist Greensburg with the hiring of an Economic Recovery Coordinator/Planner. The planner will identify redevelopment areas within the city, review existing city ordinances and current building codes, identify environmental impacts, and coordinate between the four primary sectors of the community including business, residential, health and education.

All EDA investments are compliant with EDA’s Investment Policy Guidelines to ensure that an investment will be part of an overarching, long-term strategy that enhances a region’s success in achieving a rising standard of living, and will demonstrate a high degree of commitment by exhibiting strong cooperation between the business sector; relevant regional partners; and local, state, and federal governments. Peer reviews are conducted every three years for each Economic Development District (EDD) Partnership Planning investment recipient, and the EDA regional offices continue to monitor the performance of all investment recipients.

Performance Outcome: Improve community capacity to achieve and sustain economic growth (EDA)

Support local planning and long-term partnerships through technical assistance to help distressed communities.

EDA continues to build upon partnerships with local development officials: EDDs; University Centers (UC); faith-based and community-based organizations; and local, state, and federal agencies. Through these partnerships, EDA supports local planning and long-term partnerships with state and regional organizations that can assist distressed communities with strategic planning and investment activities. This process helps communities set priorities, determine the viability of projects, and leverage outside resources to improve the local economy to sustain long-term economic growth.

EDA’s capacity-building programs include Partnership Planning, in which EDA designates and funds EDDs. EDD funding supports local officials to develop or revise and implement their CEDS. The CEDS is a long-term strategic plan for the economic growth of the region, and communities therein, that identifies projects that will attract private investment, and create and retain higher-skill, higher-wage jobs, particularly for the unemployed and underemployed in the Nation’s most economically distressed regions. For example, the Cowlitz-Wahkiakum Council of Governments in Washington used the CEDS to identify and subsequently fund 45 new initiatives, of which five were related to infrastructure, 24 to building construction and rehabilitation, nine to technical assistance, and seven to planning efforts.

The UC Economic Development Program is a partnership between the federal government and academia that helps to make the varied and vast resources of universities available to economic development communities. In FY 2007, EDA completed its second three-year competition cycle for UC funding; open competitions for UC funding were held in EDA’s Denver and Austin regional offices.

In Alabama, the Atlanta region awarded a UC investment to the Auburn University Technical Assistance Center (ATAC is an EDA UC). ATAC, working with the City of Auburn Economic Development Department and local industry, created the Auburn Training Connection (ATC) to serve as the workforce development arm of the City of Auburn.

ATC’s first initiative was to work with ATAC and industry leaders to identify the skills and abilities needed for their business processes, the training that was available, and then define the training gaps. ATC worked closely with local high schools, the community college, and the State Department of Education to implement an Industrial Technology curriculum. A multi-craft maintenance apprenticeship program was also developed to allow local industry employees to receive college credit.

EDA’s 11 Trade Adjustment Assistance Centers (TAAC) provide technical assistance to manufacturers and producers that have lost employment, sales, or production due to increased imports of competitive goods. The goal of the technical assistance is to assist these U.S. companies to become more competitive in the global economy. Businesses that receive TAAC aid commonly request assistance to undertake market research; develop new marketing materials, initiate e-commerce, identify technology, computer systems and software to meet specific needs of the firm; and complete a quality assurance program.

Examples of technical assistance tasks to be implemented from approved adjustment proposals are as follows:

In California, a manufacturer of Ethernet data and voice switches received $26,250 in program assistance to design engineered pre-built and pre-tested embedded network switch solutions. The company projected an $853,000 increase in sales and the hiring of 56 additional employees by the anticipated project completion date of March 2009. In Nebraska, a wooden door manufacturer received $24,000 in program assistance to evaluate its lumber sources, create a work flow plan, and develop sales and marketing strategies. In Florida, a synthetic fiber manufacturer received $76,625 in program assistance to obtain ISO 9000/2000 certification and improve marketing, equipment training, and product design. In 2005 and 2006 the firm made significant capital investments in its facility and also plans to spend additional funds on implementing additional recovery strategies outside the scope of TAAC funding.

Research endeavors funded by EDA significantly contribute to the economic development literature. The Research and National Technical Assistance Program (RNTA) supports research of leading, world-class economic development practices, and funds information dissemination efforts. This research is shared with stakeholders via publications and Web accessible documents on the EDA Web site.

Through RNTA, Western Carolina University’s Institute for the Economy and the Future, University of Illinois Urbana-Champaign’s Regional Economics Applications Laboratory, and the American Chamber of Commerce Research Association (ACCRA), conducted the Regionalism and Clusters for Local Development project to develop and distribute a curriculum that will enable practitioners to better understand and apply core concepts of regionalism and industry cluster development. The universities organized the research into two major projects: Project One built a comprehensive national database for cluster studies. Project Two used the database developed in Project One to analyze the cluster structure of regions, using a six-county region in Indiana as a case study. The results showed that practitioners have a wide array of concerns and priorities concerning issues where regional solutions may prove particularly appropriate. It also showed that many practitioners recognize the benefits derived by attending workshops related to regionalism or industrial clustering. However, greater efforts must be made to better equip practitioners with the knowledge necessary to effectively apply and utilize these concepts.

In FY 2007, EDA funded a research grant under the Research and Evaluation program to Purdue University. Purdue, in cooperation with the Indiana Business Research Center of Indiana University, produced the study, “Unlocking Rural Competitiveness: The Role of Regional Clusters.” The research resulted in a database, analytical tools, and processes to help rural regions assess their economic competitiveness and create strategies for growth and development. The study emphasized the challenges rural areas face in the modern global economy and stated a successful strategy should recognize the importance of a regional framework and linkages between rural and urban America, which is aided by an understanding of industry clusters. For more information on the ongoing data updates please go to http://www.ibrc.indiana.edu/innovation/data.html. These RNTA research studies and others can be found on EDA’s Web site at http://www.eda.gov/Research/ResearchReports.xml.

Performance Outcome: Enhance U.S. competitiveness in domestic and international markets (ITA)

Ensure that U.S. small and medium-sized enterprises (SME) and manufacturers can compete and win in the global economy.

ITA’s Manufacturing and Services (MAS) program advances and strengthens the competitiveness of U.S. industry by researching and analyzing competitive factors that impact U.S. business sectors in domestic and international business environments. The MAS program conducts research and analysis of the manufacturing and services industries.

MAS maintains a focus that ensures inclusion of U.S. SMEs since these firms are critical to the U.S. economy. MAS analysts provide in-depth industry information and advice to the Secretary on trends in the manufacturing and services industries and support the Secretary in his role as the federal government’s chief liaison with the manufacturing and services sectors. These analysts also evaluate the effects of domestic and international economic and regulatory policies on the ability of U.S. industry to compete in world markets. The program’s industry experts analyze regulations and other proposed economic policies to determine their impact on cost competitiveness of U.S. firms and work with other U.S. agencies to reduce the impact of proposed and existing policies and regulations on U.S. industries.

During FY 2007, MAS has focused on the completion of two domestic and international policy studies:

• The Effects of Successful Cellulosic Ethanol Research and Development on the U.S. Economy — This analysis examines the effect on the U.S. economy if advances in technology allow ethanol manufactured from cellulose to become commercially viable. The United States is importing an increasing share of the petroleum it consumes each year, and petroleum prices are projected to rise significantly over the next few decades. Without alternative sources of transportation fuel, the U.S. economy and industry could face adverse economic consequences. Cellulosic ethanol is not yet commercially viable, although the benefits of cellulosic ethanol production can be realized only if its production costs are reduced to the targets set by the Department of Energy (DOE). These targets form the basis for estimating the size of benefits that would accrue to the U.S. economy and industry.
• The Effect of Inward Foreign Direct Investment (FDI) Restrictions on the Energy Sector — This analysis quantifies the effects on the U.S. economy of delays in inward foreign investment transactions in the United States. Inward FDI is an important source of investment capital in the U.S. economy, representing 12 percent of the total U.S. capital stock. FDI in the U.S. manufacturing sector is even more important, where the share is even greater, 27 percent.

Regulatory Analysis

MAS continues to focus on a program of regulatory analysis that evaluates the impact of regulations on competitiveness. These rules when complete may have a positive impact on cost burden and competitiveness for U.S. industry.

In FY 2007, MAS has focused on six major rules from the Environmental Protection Agency (EPA), the Occupational Health and Safety Administration (OSHA), the Department of Transportation (DOT), and the Department of Justice (DOJ). Cost savings to industry this year amount to $413 million.

1. EPA’s Definition of Solid Waste (DSW). In October 2003, EPA published its proposed rule to revise the DSW under the Resource Conservation and Recovery Act (RCRA). The rule was nominated in the Office of Management and Budget’s (OMB) 2005 report, “Regulatory Reform of the U.S. Manufacturing Sector,” as one that, if reformed, could enhance competitiveness of U.S. manufacturing. Under the current RCRA, certain waste streams are regulated as hazardous wastes, even when they are being recycled. The objective of a reform of this rule is to increase recycling rates while reducing the costs of managing hazardous wastes.
2. EPA’s Spill Prevention, Control, and Countermeasure (SPCC) Rule. The SPCC rule was selected by EPA for review after a request by OMB to update old rules that may be overly burdensome. The rule describes measures that must be taken to prevent oil spills, and applies to any company that stores more than 1,320 gallons of oil on its property. The rule was nominated in OMB’s 2005 report, “Regulatory Reform of the U.S. Manufacturing Sector,” as one that, if reformed, could enhance competitiveness of U.S. manufacturing. The current rule was set down in 1973, and many businesses are unaware of it and are not in compliance. EPA has proposed to allow small facilities with storage capacity below a certain threshold to use streamlined, less expensive requirements. However, a number of problems will remain, and so a “loose-ends” rule is being considered for 2007.
3. OSHA’s Occupational Exposure to Crystalline Silica. Crystalline silica is a small particle of common sand. Pursuant to a court order, OSHA must issue a final crystalline silica exposure standard. OSHA has proposed a reduction in the current workplace exposure standard from 100 to 50 micrograms per cubic meter. The rule will have significant economic impacts on a substantial number of entities, mainly construction services and mining.
4. OSHA’s Occupational Exposure to Beryllium Rule. OSHA has proposed a rule to reduce the permissible exposure limits (PEL) to beryllium from 2.0 micrograms per cubic meter to a more restrictive PEL (possibly set at 0.2 micrograms per cubic meter, as proscribed by DOE in 1999) for workers exposed. OSHA began work on reforming the rule in 1999 by announcing a proposed rule for public comment in 2002.
5. DOT’s Side Impact Safety Regulation. MAS staff have been reviewing the DOT/National Highway Traffic Safety Administration (NHTSA) proposed side impact safety regulation since February 2006. A very complex rulemaking, NHTSA issued its proposed rule in May 2004 and said at the time the new regulation could become a final rule as early as 2005. The automakers agreed to voluntarily install side air bags in all vehicles by September 1, 2009. But NHTSA continues to consider a proposal that would require automakers to significantly upgrade their side protection systems. This is the last major crash-worthiness regulation that is in the works.
6. DOJ’s Americans with Disabilities Act (ADA). DOJ is adopting rules and standards that ensure accessibility by handicapped individuals. The MAS program is monitoring the potential competitive impact of the rules and standards.

Manufacturers’ concerns are one of the important foundations for generating policy recommendations to help ensure that government is creating conditions where U.S. manufacturers can compete in intensely competitive global markets. In FY 2007, ITA has led U.S. government efforts to advance U.S. industry competitiveness through regulatory analysis, such as the exposure levels from hexavalent chromium. ITA will continue to assess the impact of domestic and international economic policies on U.S. competitiveness, and communicate with U.S. industry on the impact of regulations.

In terms of performance, specifically performance targets, ITA missed targets for two measures, “Percent reduction in per unit of data distribution” and “Percent of industry-specific trade barrier milestones completed,” an important metric for achieving this outcome and one that ITA missed by a wide margin (54 percent for actual, 85 percent for target). Performance slipped from 81 percent in FY 2006. It should be noted, however, that ITA did not meet this target because foreign counterparts were not able to or willing to move as fast as U.S. negotiators sought towards removing trade barriers. Regarding the per unit of data distribution, this was a new efficiency measure and as such, ITA did not have a strong history from which to determine an appropriate target. The target of five percent was at the high end of a range between four and five percent.

Performance Outcome: Broaden and deepen U.S. exporter base (ITA)

Support jobs and foster economic growth by expanding the number U.S. exporters, especially SMEs.

The health of the U.S. economy depends on U.S. SMEs. ITA continues to focus on this base because 97 percent of all U.S. exporters are small and medium-sized businesses. Many of these firms have also been successful in doing business in countries that have recently negotiated free trade agreements (FTA) with the United States.

The Commercial Service program’s mandate is to create a supporting environment in which all U.S. firms, including SMEs, can flourish. In order to achieve this, the Commercial Service seeks to increase export opportunity awareness among U.S. companies by identifying potential exporters who need assistance, leveraging electronic and traditional media, enhancing relationships with customers, and developing alliances and partnerships with state, local, and private partners to deliver export assistance. The Commercial Service operates a Trade Information Center that provides a single point of customer contact for all government export promotion programs, runs the Advocacy Center that supports U.S. companies bidding on major foreign contracts, and coordinates U.S. government export promotion and assistance programs through the TPCC. ITA’s unique global network of trade professionals located in over 250 offices, domestically and internationally, capitalizes on high export areas identified by trade patterns and facilitates aggressive outreach to traditionally under-served rural and minority communities. ITA’s Market Access and Compliance (MAC) program also supplies SMEs by identifying and resolving unfair trade practices.

The Commercial Service helps U.S. companies take advantage of world market conditions to find new buyers around the world. A growing list of FTAs provides price and market access benefits. ITA offers four ways to help U.S. firms grow their international sales by: (1) providing world-class market research, (2) organizing trade events that promote products or services to qualified overseas buyers, (3) arranging introduction to qualified buyers and distributors, and (4) offering counseling through every step of the export process.

In addition to the areas described above, three critical program priorities for ITA during FY 2007 included ITA’s efforts to strengthen trade promotion by leveraging strategic partnerships, advancing FTAs to promote U.S. exports in strategic and emerging markets, and advancing transformational commercial diplomacy. These priorities reinforce ITA’s goal to broaden and deepen the export base. Detailed descriptions can be found below:

Strategic Partnerships

One area of strategic importance to ITA in FY 2007 has been a focus on partnerships. One of the Nation’s greatest strengths are the capabilities, reach, and resources of U.S. enterprises engaged in activities that touch buyers and sellers around the world, such as express delivery companies, banks, and Web-based marketplaces. Those businesses can be great teachers and facilitators for other U.S. companies wanting to export more or export better. Already a number of great U.S. companies have stepped forward to participate, and have offered to assist ITA in its efforts to increase U.S. exports.

These strategic partners include: Dow Jones through its Asia Wall Street Journal unit, eBay, FedEx, Google, and PNC Bank. As a result of their efforts, which include hundreds of marketing events and placement of trade information on their Web sites and in their newsletters, hundreds of thousands of companies have been exposed to ITA services.

ITA is beginning to engage with these strategic partners in targeted marketing strategies. For example, FedEx has helped identify and inform U.S. exporters to Mexico about new business opportunities in Central America, which has come about as a result of the recent Central American Free Trade Agreement (CAFTA).

These private sector partners join ITA’s traditional interagency partners, such as the Small Business Administration (SBA), The Export-Import (ExIm) Bank, the Overseas Private Investment Corporation (OPIC), and state and local governments in an effort to educate, inform, and assist U.S. companies.

Reducing Trade Barriers through FTAs

ITA has continued to lower trade barriers through FTAs during FY 2007. Since 2001, the United States has signed over a dozen FTAs and has also sought to improve already existing FTAs, such as the North American Free Trade Agreement (NAFTA). One key fact dramatically illustrates the positive impact of FTAs: although countries that the United States has FTAs with only represent 7.1 percent of world GDP, they represent more than 42 percent of U.S. trade. Trade agreements work for the United States because they keep the Nation working.

ITA has also maintained a concerted effort to open up large, developing markets like China and India. Exports to both of these markets are significant. In fact, during this past year, China has become the third largest export market for the United States and exports to India grew at more than 30 percent last year. These two countries have been designated as high priority markets and ITA led significant trade missions to both countries during this past year. For example, at the end of last November, ITA took more than 200 U.S. business representatives to six cities to India on the largest trade mission ever. The mission began with a business summit in Mumbai, with spin-off missions to Bangalore, Chennai, Hyderabad, Kolkata, and New Delhi. Secretary Gutierrez led a highly visible and successful trade mission to Beijing and Shanghai in November, as well. The business delegation was comprised of 25 firms that represented a broad cross-section of U.S. industries. The mission included high-level meetings with Premier Wen, Vice Premiers Zhen and Wu, and Commerce Minister Bo. The commercial sections in Beijing and Shanghai dedicated their resources to the support and success of this mission. While there, the Secretary discussed pivotal trade issues and advanced the intellectual property (IP) agenda by participating in the third U.S.-China IPR (IP Rights) roundtable.

U.S. companies want the U.S. government to provide better access to these fast-growing, but often challenging markets. These trade missions are one way to address their concerns.

ITA will also continue to support trade efforts in critical markets in China, India, Russia, and Greater Central Asia as well. These markets address key foreign policy goals and support the President’s goal of promoting democracy and liberty through free trade. ITA is working to bring free trade to these critical emerging economies. This work reinforces U.S. efforts to bring greater geopolitical stability to uncertain areas of the globe through enhanced opportunity and economic development.

Commercial Diplomacy

Often companies encounter difficult hurdles when trying to do business in even far less challenging places than India and China. In the past, the efforts of ITA’s Commercial Service have been measured primarily by “export successes” tied to specific export transactions of client companies. It is an important measurement, and will be continued, however overseas posts also devote a lot of time and resources to working behind the scenes to resolve problems, reduce trade barriers, and cut red tape. Such activities are what are called “commercial diplomacy.” Commercial diplomacy benefits not only current ITA clients, but also all U.S. exporters by opening doors and creating paths to success for other exporters to follow.

For example, in Bulgaria, ITA’s Commercial Service succeeded in having a packaging waste penalty removed that was costing U.S. companies like Coca Cola, Kraft, and Proctor & Gamble millions of dollars per year. Similar efforts helped to get Bulgarian legislation passed to better protect IPR. There are hundreds of such examples every year and all around the globe, and ITA’s Commercial Service encourages staff to do this kind of work more often and to acknowledge its importance. During FY 2007, a commercial diplomacy success metric has been piloted and will become a reported GPRA metric during the next fiscal year.

Performance Outcome: Increase access to the marketplace and financing for minority-owned businesses (MBDA)

Achieve entrepreneurial parity for minority business enterprises (MBE) by actively promoting their ability to grow and to compete in the global economy.

MBDA’s strategic programs and management objectives have been aligned to successfully execute its tasks and assignments. A large measure of its continued success has been a result of the performance of its national network of funded projects and the support provided by its regional staff. MBDA met or exceeded the targets of all its performance measures in FY 2007.

In 2007, MBDA met its targets for contract awards and financial packages obtained for MBEs. Over $1.7 billion in combined transactions were obtained for minority firms. Much credit is given to the Agency Strategic Growth Initiative (SGI) established by the Agency to attract mid-to-large minority firms capable of competing for larger contract awards. Approximately 75 percent of total awards went to these larger client firms. This had a direct impact on new jobs created within minority communities and wealth creation nationwide. MBDA exceeded new jobs created by 35 percent, totaling over 3,500.

MBDA rolled out a new MBE Center (MBEC) Program in FY 2007 that included several new consulting organizations. Amos Tuck School at Dartmouth College provided executive training in high growth strategies to these organizations. They are now assisting minority firms to grow and respond to larger contract and financial opportunities.

This past year MBDA implemented four new funded centers in the Gulf Coast region (New Orleans (2), Mobile, and Biloxi) to support the Department and the Katrina recovery effort. MBDA has also established a temporary district office in New Orleans to oversee Gulf operations and respond to needed services for minority clients.

MBDA established new strategic partners and alliances with federal agencies, such as the Federal Emergency Management Agency (FEMA), the Army Corps of Engineers, the Department of Homeland Security (DHS), SBA, and the Department of Housing and Urban Development (HUD); with state governments, such as Louisiana, Mississippi, and Alabama in the Gulf Coast; with private organizations, such as the Kauffman Foundation, Microsoft, and Lockheed Martin; and finally with National Chambers of Commerce, to include the National Urban League, the U.S. Hispanic Chamber, and the National Black Chamber. These organizations have provided opportunities, mentoring, training, and other business services to support MBDA program objectives.

MBDA redirected its focus to communities requiring immediate assistance and targeted its strategic goals to ensure the most effective allocation of resources to obtain performance results. MBDA held eight Business-to-Business (B2B) Linkage Forums throughout the country. These events attract ready-to-grow minority firms eager to form joint ventures and partnerships to compete for larger prime procurement opportunities in critical areas. For example, in conjunction with the Perini Building Company, MBDA held a forum for 25 minority firms to discuss how to qualify for contracts starting at $5 million or more as part of the Las Vegas MGM City Center Project, a $ 3.0 billion construction venture. Also, large corporate organizations such as Costco and the National Alliance have opened the doors to offer supply chain opportunities to qualified minority vendors.

MBDA held the 25th Anniversary of the Minority Enterprise Development Week (MED Week) National Conference in Washington D.C. and focused on “Celebrating the Legacy of Innovation and Competitiveness.” This conference was attended by over 500 business representatives from the public and private sector and focused on innovation achievements, workshops, networking, and the annual awards gala to recognize the national award winners in MBE.

In collaboration with the Asian American Small Business Alliance and the Manhattan Hispanic Chamber of Commerce, the MBDA New York region sponsored the Minority Enterprise Franchise Exposition. Over 20 major franchisers, financial institutions, and government agencies held training workshops for 150 potential minority businesses. A summer session was conducted for the Emerging Minority Business leaders program as part of the President’s American Competitive Initiative. Twenty-five students participated to focus on innovation of new technology and commercialization.

MBDA published a second report, “The State of Minority Business Enterprises, Vol. 2.” This provided an in-depth review and analysis of the characteristics of business owners as presented in the U.S. Census Bureau’s 2002 Survey of Business Owners. The report analyzed the characteristics of minority-owned businesses, specifically those who influenced business survival, and identified factors which contributed to successful business performance of minority-owned businesses in 2002.

Customer Relations Management remains a point of emphasis for the Agency and its programs. The 2007 National Survey of clients was again conducted by the Federal Consulting Group and the University of Michigan to establish a new American Customer Satisfaction Index (ACSI). The increase in satisfaction has demonstrated the confidence of clients and partners. MBDA is meeting its mission objectives because in the end “results do matter.”

MBDA implemented two White House and Congressional programs and incorporated their objectives into its daily activities. MBDA established the Asian American Pacific Islanders Initiative to provide information and technical assistance to Asian Americans. The Office of Native American Business Development worked with MBDA’s Native American programs, especially tribal entities, to identify business opportunities and resources.

MBDA updated its Web portal offering several electronic business tools for access by business firms. Included is the Phoenix-Bid Matching System that will notify registered firms of a contract opportunity that matches the industry category and geographical criteria of the firm. Over 15,000 matches occurred in the past year. The Business Plan Writer assisted over 2,000 firms to develop new or updated business plans to apply for financial assistance; many to start new businesses.

STRATEGIES AND FUTURE PLANS

Leading the federal economic development agenda. EDA focuses its resources on proven, high-value, cutting-edge economic development activities and techniques promoted by academic and leading practitioners. EDA achieves success by emphasizing regionalism, innovation, and entrepreneurship as the building blocks for successful economic development.

Support for U.S. Government foreign policy initiatives. ITA has a strategy to address the challenges posed by changing economic, technological, and global business conditions to help U.S. firms expand and conduct business abroad. ITA has made much progress in expanding U.S. exports while supporting U.S. government foreign policy initiatives; both the Iraq and Afghanistan task forces have helped generate export sales in those countries while supporting the U.S. foreign policy goal of regional stability. By generating U.S. exports, ITA simultaneously supports the development of a stronger market-oriented economic system in areas of the world (Africa, Middle East), contributing both to U.S. economic goals and global stability.

Continued focus on SMEs. Large portions of ITA’s resources are directed toward ensuring that U.S. SMEs, service industries, and manufacturers can compete and win in the global economy. ITA supports the President’s economic program of export expansion by reasserting leadership in international trade through negotiations, through compliance, and by seeking the removal of non-tariff trade barriers. ITA assists in the development of commercial infrastructure in target markets such as China, Turkey, Brazil, and India.

Leading the National Export Strategy. While contributing to the success of U.S. workers and firms, ITA has led the federal government’s export assistance programs at large. The success of the National Export Strategy has depended on ITA’s ability to leverage public and private partners to serve more SMEs. While these companies account for 70 percent of new jobs in the United States, they account for only a small share of the total export value of U.S. goods exports. With the help of partner organizations ITA has been able to raise general awareness and provide individual companies the help they need to realize their export potential. ITA has many examples of companies realizing their export potential.

In 2007, the Commercial Service helped generate nearly 12,000 export successes worth billions of dollars in U.S. export sales.

Program Management and Performance Strategy. ITA has taken steps to strengthen program management and performance. In FY 2007, ITA’s Chief Financial Officer (CFO), in conjunction with ITA’s Commercial Service program, completed verification and validation of export success metrics at seven domestic and five overseas field locations. In the spirit of the President’s Management Agenda (PMA), these reviews have enabled ITA to verify source measure data that express progress toward achieving ITA strategic goals.

CHALLENGES FOR THE FUTURE

ITA’s success in achieving the outcome “to Broaden and Deepen the U.S. Exporter Base” is impacted by domestic and international economic conditions. Economic shocks in foreign markets and exchange rate fluctuations can affect U.S. exports and demand for U.S. products. The cooperation of other TPCC member agencies affects the level of services provided to SMEs.

EDA targets assistance to projects that can provide direct and lasting benefits to economically distressed communities and regions. EDA programs are not intended to work alone, but to increase the availability of outside capital (both public and private) for sustainable development strategies to create and retain private enterprise and jobs in economically distressed areas. EDA’s strategies include strengthening local, state, and sub-state partnerships to assess and respond to long-term economic trends, sudden and severe dislocations, and emergencies; establishing flexible program and funding authorities that respond to local priorities; developing partnerships with other federal agencies to improve assistance for distressed communities; and working directly with those communities to achieve long-term development objectives and address sudden and severe economic dislocations.

MBDA has several management challenges including: maintaining a high return on investment (ROI) for its performance measures, encouraging large corporate organizations to sponsor B2B events and open new opportunities to support their supply chain, identifying new SGI minority firms ready to grow and participate in competitive events, and improving the MBDA ACSI score. Through its knowledge management efforts, MBDA will ensure that data and information concerning minority business development continue to be published and communicated.