Remarks of Franklin L. Lavin
Under Secrtary of Commerce for International Trade
Presentation of Export Achievement Certificate
Friday, January 6, 2006 - Newark, New Jersey
Good morning everyone. Thanks to Jim Courter, CEO of IDT for hosting
this event. It's great to be here in Newark to visit a company that is
experiencing dramatic growth through international business. Thanks also
to Joe Kelly, Director of International Sales of the MADDAK division of
Bel-Arts in Pequannock.
International trade is a historic segment of America's economy and the
benefits of international trade are very evident here today.
We have some very good news to celebrate here today as we recognize IDT
Corporation and MADDAK for their export accomplishments. Let me put this
good news in context.
The good news starts with the U.S. economy as a whole. Today, the U.S.
economy is the fastest growing major industrialized economy in the world
and more Americans are working than ever before.
Let me give a few numbers. Today, the Government released new jobs figures
- There were 108,000 jobs created in December and the unemployment rate
in the United States is now down to 4.9 percent. That's below the averages
of the 1970's (6.2%), 1980's (7.3%) & 1990's (5.8%). Unemployment
rates have fallen across all levels of education, race, and age since
2003.
We have experienced 31 consecutive months of job growth. Nearly 2 million
jobs have been created over the past year. 4.6 million jobs have been
added since the Bush tax cuts of May 2003; that's more than Canada, France,
Germany, Great Britain, and Japan combined have added in that period.
Consumers see this good news. The index of consumer confidence rose in
December as Americans felt the benefits of falling gas prices and continued
job growth. Incomes are rising. Over the past 12 months, personal incomes
were up 1.5%. Since 2001, after-tax income per person has risen 7% and
Household net worth is at $51.1 trillion - an all-time high.
U.S. Gross Domestic Product grew 4.1% in the 3rd Quarter of 2005, the
10th consecutive quarter in which GDP grew at a rate above 3% despite
the hurricanes. That's above the averages of each of the past 3 decades.
For comparison, European Union GDP has grown 1.6% during the past 4 quarters.
Finally, in regard to the numbers, inflation remains in check. The consumer
price index fell by 0.6% in November reflecting a decline in energy prices.
Core CPI is stable at 2.1% over the last year. That's low by historic
standards.
But we have more work to do. President Bush's agenda will ensure continued
opportunity for America's workers and entrepreneurs. To maintain the economy's
momentum, the President has called upon Congress to make tax relief permanent
and restrain spending to remain on track to cut the deficit in half by
2009. The President is advancing pro-growth policies to reduce America's
dependence on foreign oil; help workers find affordable healthcare; strengthen
rules governing pensions; reform our legal system; and give more Americans
control over their lives by expanding ownership. To ensure that Americans
have the skills needed to fill the jobs of the 21st century, the Nation's
education system and job training programs must prepare workers for new
opportunities. America must maintain its economic leadership in the world
and open foreign markets to American goods and services.
Let me connect this internationally. I'm pleased to say that international
trade is one of the reasons for our economic health. At the end of 2005,
U.S. exports are up 11% over 2004 and are currently running at a $1.3
trillion annual rate.
More than one-sixth of all manufacturing workers in New Jersey depend
on exports for their jobs.
Almost 16,000 companies exported goods from New Jersey. Remarkably, of
those companies, 90% were small and medium-sized enterprises with fewer
than 500 employees. Small and medium-sized enterprises generate more than
a third of New Jersey's total exports of merchandize.
Some 20 million U.S. jobs depend on exports or foreign investment.
New Jersey depends on world markets for its prosperity. New Jersey's
exports in 2005 should total over $20 billion, up 10% over 2004.
That takes us back to the two companies we are honoring today. I'm delighted
to recognize IDT for its export accomplishments. IDT took advantage of
the realities of a more globalized world and has showed great ingenuity
in expanding its international sales, selling to Latin America, Asia,
Africa, Europe, and other markets.
IDT is a telecommunications company that provides a broad range of communications
services to retail and wholesale customers worldwide. IDT was founded
as an international company by recognizing that international phone calls
from foreign countries was many times the cost of making the same calls
from the United States.
In fiscal years 2005, 2004, and 2003, revenue from customers outside of
the U.S. accounted for approximately 29%, 23%, and 19% of total revenues
respectively. That's very impressive growth from international sales.
IDT has worked with the Commerce Department, receiving counseling, industry-specific
market research and trade leads from the Newark U.S. Export Assistance
Center since 1999. Newark Commerce Department Director Carmella Mammas
is currently assisting IDT in locating CEO level business contacts in
several countries in Africa. We should all be particularly proud of IDT's
work in Africa to help bring affordable telecommunications services to
under-served African countries.
Now, I would like to present the Department's Export Achievement Certificate
in recognition of IDT's efforts, particularly in its outreach to Africa,
to Jim Courter, CEO of IDT. Congratulations Jim!
I'm also pleased to recognize the MADDAK division of Bel-Arts Products.
Joe Kelly is the Director of International Sales for MADDAK. Joe also
serves as a New Jersey District Export Council member, appointed by the
Secretary of Commerce.
MADDAK specializes in healthcare products for the disability and rehabilitation
markets. The firm has worked with the Newark Commerce Department office
for assistance from Senior International Trade Specialist Harvey Rubinstein
since 1997 and we have worked with them to identify target markets and
develop marketing strategies.
The most recent success in our working relationship was a "new"
to market sale to Ireland as a result of MADDAK's participation in a U.S.
Commercial Services organized catalog showcase.
As a direct result of marketing counseling with the Newark USEAC, and
taking advantage of U.S. Commercial Services products and services, MADDAK
has reported an increase to market sale of its healthcare products to
Japan.
U.S. Commercial Services has assisted MADDAK expand its business to China,
the Dominican Republic, France, India, Israel, Italy, Mexico, Singapore
and many other countries.
Now, I would like to present the Department's Export Achievement Certificate
in recognition of MADDAK's export expansion. Joe, Congratulations
I encourage all of New Jersey's businesses to sell more of their products
and services abroad. A great starting point would be for them to call
Carmella Mammas here at the Newark office of the Department of Commerce.
We have two special companies here that are part of the good economic
news. We can look at the economic numbers - the new jobs and GDP growth
and see the story of these two companies repeated many times across our
country. It's easy to see why we are such a great nation.
Thank you.
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