Posts Tagged ‘Panama’

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No International Job is too Big (or too small) for Florida Company

May 31, 2012

Doug Barry is a Senior International Trade Specialist in the Trade Information Center, part of the U.S. and Foreign Commercial Service.

Founder and CEO of Ambient Technologies Carlos Lemos was in Washington, D.C. recently to receive the Presidential “E” Award for excellence in exporting.  Lemos earned the award for taking his 55-employee company global with help from the Export Assistance Center in Clearwater, Florida and other programs of the Department of Commerce.  Senior Trade Specialist Doug Barry of the Trade Information Center talked to Lemos after the White House Ceremony.

Barry:  Can you tell us a little bit about the history of your company–which I see means environment in Spanish–when it started and what you provide?

Lemos:  We started our business in 1993.  I worked for a very large consulting firm for 22 years.  And then I decided to take my Brazilian heritage and live the American dream, which is running your own business.  So I started my own company, and I do geology, geophysics, drilling services.  We support companies that are looking to find information that’s below the ground, whether it’s groundwater-related, construction or engineering including mining. 

Barry:  Can you tell us about the main challenge that you faced to enter the international marketplace?

CEO of Ambient Technologies Carlos Lemos (left) helping to drill a new Panama canal.

CEO of Ambient Technologies Carlos Lemos (left) helping to drill a new Panama canal.

Lemos:  Well, the challenges are really enormous when you’re thinking as a small business.  My first attempt to export was going to my native country.  I speak Portuguese and was born in Brazil. I felt comfortable there.  But Brazil was so big and it’s so challenging and it’s so competitive that it didn’t work out that well.  It was great to reunite with family but it wasn’t very good for business.  So I decided to pursue opportunities in countries that weren’t quite so large and where people are comfortable working with smaller companies.  So we started looking at countries in Central America.  I went to these countries and was successful there because of trade missions organized by the U.S. Department of Commerce.

Barry:  Was your domestic business tanking in 2008?

Lemos:  Truly speaking, in 2008, when everything kind of collapsed, I looked at all my rigs parked and I said, what am I going to do with this?  It became a matter of necessity as much as just a whim.  And then by that time I had gone overseas to look at the opportunities, saw Panama as an opportunity and I saw other countries at that time that were looking at doing some other projects.  And I said, “We have to look at an international way to survive.”  And so we took the leap of faith and went over there and took our equipment.  And then when the new canal project started, we had the equipment there and many people didn’t. We were the first American company to work with the consortium that’s building the canal.

Barry:  And how did that happen?  What kind of introductions were made to enable you to compete for that work?

Lemos:  What we did is through the Department of Commerce.  I was able to meet, number one, very important, was the canal authority – the ACP.  We also received introductions to the local engineering community. They said, “We welcome you because we’re going to have more work than we can handle.  So yeah, come on down and work with us.”  And they are very pro-American in Panama.  And they were very glad for us to have gone there.

Barry:  What part of your annual revenue comes from your international activities?

Lemos:  Right now we are about 25 percent, and it’s growing.  We’re being asked to go to Colombia, and that could further expand our revenues.  So I’m looking for the international business to grow.  And I wouldn’t be surprised if in the next few years, it grows to 50 percent. Another benefit is that bigger U.S. companies are asking us to do international work for them. We’re willing to deal with the headaches of dealing with customs. We’re willing to deal with the inconveniences of the locals that quite frequently are not that bad.  But that’s okay; the big companies can think that.  It gives me more business.  So we take advantage of that.  We do things that nobody wants to do.

Barry:  What sort of challenges do you face in scaling up to be able to serve this growing market?

Lemos:  Well, being small is not easy.  It’s difficult to get financing for a drill rig to take it overseas.  If you go through a conventional bank, they don’t like to see their assets outside the country.   It doesn’t make any difference that I’ve just won a $2 million contract. 

With this new business we’re hoping to qualify for government loan guarantees that can help us do that sort of thing.  Another challenge is finding bilingual technical people:  people that have a degree in science, engineering, that are also bilingual and willing to go overseas for periods of time. 

Barry:  What are the other benefits of selling international besides staying in business and thriving in business?  What are the other gains from doing business outside your own country and culture?

Lemos: Well, it is the human factor of it all.  It’s the reward that you have by interacting with other cultures.  It’s the reward that you get to see that your employees are seeing beyond what’s right here in front of their eyes, that they actually see now the world in a more global view than just right here. 

Barry:  Is Ambient a better company because of its exporting?

Lemos:  By far it’s a better company.

Barry:  Why?

Lemos:  I believe that the employees are proud that we are a global business than when we were just a local business.  There’s something about it that makes them more enthusiastic.  And therefore, you know, the employees are the company.  You have to find the right people who are interested in other cultures. I may hire a biologist to do a job that involves geology. Because of their attitude and their ability to deal with other cultures and deal with other people, they’re by far a better employee.  I love to see when the guys mature into a role of mini-ambassadors. 

Barry:  I think I’m ready to work for you immediately. Seriously, what would be your advice to U.S. companies that aren’t exporting now or only dabbling in it? 

Lemos:  I really believe that one of the things they should do is really get involved with the local Export Assistance Centers of the U.S. Department of Commerce because that’s what was successful for me. Also be prepared that there is a cost in getting started that is not going to be immediate gratification.  Trying to go in put a little money and trying to get big rewards very quickly doesn’t work. 

Posted in Commercial Service, Competitiveness, Exporting, International Trade Administration, Services | Tagged , | 2 Comments »

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Quick Approval of Trade Agreements is Good News for the American Economy

October 12, 2011

Francisco J. Sánchez is the Under Secretary of Commerce for International Trade

Earlier tonight, the millions of Americans concerned about jobs got some good news: Congress approved trade agreements with Korea, Colombia and Panama.

It’s been a long journey to this moment, so let me cut right to the chase: Opening new doors of opportunity for U.S. firms to sell their products in these three markets will strengthen our economy and sharpen our competitive edge in the global economy.

It will also support jobs.

Ford Motor Company employees at the Michigan Assembly Plant in Wayne, MI assemble a 2012 Ford Focus.

Ford Motor Company employees at the Michigan Assembly Plant in Wayne, MI assemble a 2012 Ford Focus, one of the vehicles targeted for the Korean market under the U.S.-Korea Trade Agreement. Photo by: Sam VarnHagen/Ford Motor Co. Used with permission.

For every billion in U.S. goods exported overseas, more than 5500 jobs are supported here at home.  In total, the three agreements will support tens of thousands of jobs and add billions to the U.S. GDP — reasons for all Americans to cheer.

I commend President Obama for his leadership in creating a balanced trade agenda.  He has worked tirelessly to get the best possible deal for businesses and workers.  Congress also deserves credit.  These measures were passed with bipartisan support.  That both parties were able to find common ground on these issues speaks to positive economic impact that these agreements will have on communities across the nation.

I also applaud the President and Congress for renewing the Trade Adjustment Assistance program.  Why?  Because whenever there is change, there are some who are negatively impacted; some Americans, through no fault of their own, have lost their jobs because of foreign competition.  But all is not lost: TAA will help them retrain and retool for success in the 21st century economy.

The world is rapidly changing, and we must change with it to succeed in this economic environment. That’s why these three trade agreements are so important; they’ll create new opportunities across all regions and sectors.   Take the auto industry, historically a backbone of the middle class:

In 2010, the U.S. exported approximately $1.5 billion in vehicles and parts to the three prospective markets despite facing relatively high average tariffs.  Because the agreements have passed, the tariffs on these products will ultimately fall to zero, expanding opportunities for growth in exports for U.S. companies.

This is a big deal.  As President Obama said in his speech to Congress outlining the American Jobs Act:

“If Americans can buy Kias and Hyundais, I want to see folks in South Korea driving Fords and Chevys and Chryslers. I want to see more products sold around the world stamped with three proud words: “Made in America.”

With the passage of these three trade agreements, chances are we will indeed see more U.S. products sold around the world.  That’s a victory for us all.

Posted in International Trade Administration, Korea-US Trade, National Export Initiative | Tagged , , , , , , | 7 Comments »

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Making it Easier to Sell Products “Made in America”

October 3, 2011

Francisco J. Sánchez is the Under Secretary of Commerce for International Trade.

It was a good day for American businesses and workers.

Earlier this afternoon, President Obama submitted three free-trade deals — with Korea, Colombia and Panama — to Congress for consideration.  If passed, these agreements would be a big boost to our economy, providing new opportunities for U.S. companies abroad, while strengthening our economy here at home.

As the President said: “These agreements will support tens of thousands of jobs across the country for workers making products stamped with three proud words: Made in America.”

President Obama has long said that exports are a key to the nation’s economic recovery.  Nearly two years ago, he launched the National Export Initiative with the goal of doubling U.S. exports by the end of 2014.  And, last month, in a speech before Congress where he unveiled the American Jobs Act — a bipartisan proposal to put Americans back to work — he stressed the economic benefits of these free-trade agreements.

The President has correctly recognized that exporting provides U.S. businesses with new opportunities to sell their goods and services in markets overseas.  The pending FTAs before Congress would ensure that this trade — with three important markets — is both free and fair.

This is important.  Consider that, in 2010, the United States enjoyed a $9.9 billion non-oil trade surplus with our FTA partners, as compared to a $371 billion non-oil trade deficit with the rest of the world.  In addition, last year, 41 percent of U.S. goods exports went to our FTA partners, even though those countries only account for 9 percent of global Gross Domestic Product.

Clearly, fair trade is good for our economic health and future.  If passed, the pending FTAs are sure to enhance these benefits.  Now, there have been a lot of misconceptions about these FTAs.  To set the record straight, here are some basic facts:

Korea

The U.S. –Korea trade agreement will:

  • Support at least 70,000 American jobs, and boost annual exports of American goods by up to $11 billion through tariff reductions alone.
  • Create new opportunities for U.S. exporters in Korea’s $1.5 trillion economy, the 12th largest in the world in 2010, based on purchasing power parity exchange rates.

Colombia

The U.S. – Colombia trade agreement will:

  • Generate new possibilities in the 3rd largest economy in Central and South America.
  • Reduce barriers to U.S. exports, spurring new opportunities for our businesses, workers, farmers and ranchers, thereby supporting more and better jobs for Americans.

Panama

The U.S. – Panama trade agreement will:

  • Provide new possibilities with one of the fastest growing economies in Latin America, expanding 6.2 percent in 2010, with similar annual growth forecast through 2015.
  • Enhance U.S. competitiveness by eliminating tariffs and other barriers to U.S. exports and expanding trade between our two countries.

Bottom line: By ensuring that the American people have a level-playing field to compete on in these three important markets, the FTAs would spur billions in economic activity, support tens of thousands of American jobs, and sharpen the United States’ competitive edge moving into the future.

The President has worked hard to strengthen these agreements to, in his words, “get the best possible deal for American workers.”

Now, I join his call in urging Congress to pass the FTAs without delay.

Posted in Competitiveness, Exporting, International Trade Administration, Korea-US Trade, Small Business | Tagged , , , , , | 6 Comments »

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