Access Asia Now: Home Again

By Robert Clark
Dean of the Schroeder Family School of Business Administration
University of Evansville

It is difficult to imagine landing at Chicago’s O’Hara International Airport two hours before leaving Tokyo – the miracle of crossing the International Date Line in the Pacific, but the Access Asia Now Trade Mission has arrived back in Evansville after spending two weeks exploring opportunities for economic development and partnerships with businesses and institutions in Malaysia and Japan.

The Mission delegation led by Evansville’s Mayor Weinzapfel completed the last leg of its mission in Japan. In 2006, Japan represented $831 million (5th place internationally) in Indiana exports, up 8.1% from 2005. This underscores the importance of the Japan to the regions economy. LaShone Gibson, Senior Associate Director for the Institute for Global Enterprise in Indiana, who oversaw the organization of the mission, noted that these were important factors in the development of the trade mission

The trade delegation learned of opportunities in Japan and also of the critical importance of developing relationships with the region’s leaders. As noted by U.S. Minister for Commercial Affairs John Peters from the U.S. Embassy in Japan, “this is a region of the world that develops relationships then follows with business activities.” He noted that in Japan, Indiana is particularly well known as a hospitable host to Japanese firms moving operations overseas. Approximately 2,000 Japanese manufacturers have U.S. operations and there are more than 200 of them in Indiana. Current information indicates that there are 100-150 Japanese firms finalizing or working to develop plans to expand operations in the U.S.

Southwest Indiana’s most notable example is Toyota. The economic impacts of Toyota’s operations in Princeton have been calculated at over $1 billion. This is in addition to the psychological benefits the region receives as the host of a major successful manufacturing facility that defies a trend to outsource to Asia. For a web site overview of Indiana firms with foreign investment please see: http://www.in.gov/iedc/maps/foreign.html

A highlight of the Mission was the delegation’s visit to Tahara, Gibson County’s ‘Friendship City’ and home to Toyota’s Tahara plant that was the “mother plant” for Princeton’s Toyota plant. Connie Wellmeyer, Assistant General Manager at the Princeton Plant and member of the delegation noted that Toyota’s vehicle loading operations were impressive. In addition delegation member, Todd Mosby, Executive Director of the Gibson County Economic Development Corporation expressed his view that their contacts with Toyota suppliers reflected the importance of developing personal relationships.

The Access Asia Now Trade delegation found that after almost a decade of malaise the Japanese economy was on the rebound and is resuming its leadership role as the world’s second largest economy. The Japanese have increased spending on services and education. In addition, it was noted that as their economy moves forward the Japanese manufacturers are taking another look at their global opportunities and with this review they note a bit of China fatigue, i.e. for products that are not labor intensive China may not be the ideal operation center. This represents an opportunity for American businesses interested in Japan and vice versa. An area noted that are of particular interest to U.S. firms would be environmental issues such as asbestos abatement, etc., areas where American businesses have superior expertise and Japanese mandates are of recent vintage.

An additional area of interest to Japanese consumers is tourism. U.S. Embassy officials made specific mention of the importance of attracting the large and growing population of retiring Japanese consumers to our region. This specific opportunity requires a regional approach to developing materials to target and attract foreign tourists – in this case the Japanese. To the economic development representatives from Northern Kentucky, Vanderburgh, and Gibson counties, it was clear that there are a number of attractions in the area that could be packaged as a region…..The Embassy representative specifically mentioned Evansville’s Westside Nut Club Fall Festival, noting that Festivals are of particular attraction to Japanese tourists. The representative then noted additional areas of interest to Japanese tourists, such as Lincoln related sites, gaming attractions, including both casino and horse racing, and nature tourism, such as Audubon Park in Kentucky, etc. It was clear that there are significant regional attractions that should be packaged to attract tourist spending. These are cooperative opportunities that represent economic development opportunities for the region that will strengthen the diversity of the region’s economy.

The trade mission delegation repeatedly heard the importance of demonstrating to the Asian region our interest in doing business and working together for the economic benefit of all. It was emphasized that we need to be sure to “get to the Trade Shows,” in Japan and keep coming so that Japan will feel very comfortable with the relationship that develops, and this message was consistent with the Malaysian business community advice.

In meetings with leaders of the Japanese External Trade Organization (JETRO) two pieces of advice were offered to the delegation:

It is important to get information on the region translated into Japanese – provide a small guidebook for the area in Japanese.
Recognize that economic incentives are very important and that Japanese firms will prepare comparative data, but personal relationships are also very important to the final decision.

Following up on the success of the delegation will be an important aspect of continuing to present the attractiveness of the region to Japanese and Malaysian firms desiring overseas sites and for U.S. firms desiring partners overseas. All of these factors are important for regional economic development to move forward and attract jobs and economic development to the Greater Evansville region. The representatives from industry, education, government, and economic development agencies were great ambassadors in carrying the flag for the Greater Evansville region, and developing relationships for future collaborative efforts.

Sister City Alliance Re-affirmed

By Robert Clark
Dean of the Schroeder Family School of Business Administration
University of Evansville

Recognizing the importance of relationships in the world of business, particularly in Asia, the University of Evansville's Tri-State Trade Mission delegation moved on from Malaysia to Japan over the weekend. Incorporating the Sister City visit within the context of the region’s Trade Mission not only makes this a unique endeavor, but also highlights the emphasis we as a community place upon our cultural ties as part of our commercial environment.

The delegation, lead by Mayor Weinzapfel spent the weekend with leaders in Tochigi, Japan – Evansville’s sister city. The depths of the relationships developed since the sister city relationship was established in 1999 were evident in the enthusiasm of the Tochigi city representatives in relating their experiences in Evansville and in hosting other Evansville and regional representatives in Tochigi. One delegate even shared the original copy of the Evansville Courier & Press front page story celebrating the visit of the delegation to Evansville in 1999.

Evansville Mayor Weinzapfel and Tochigi Mayor Higano reaffirmed the sister city designation by signing a proclamation, and exchanged formal gifts commemorating the relationship. Mayor Weinzapfel presented Tochigi with an original, wooden, three-dimensional column carving with symbols of both cities created by Evansville artist Amy Musia. Mayor Higano presented Evansville with a framed limited edition wood block print of the famous historical warehouses of Tochigi. Kim Humphrey, vice president of International Banking at Old National Bank provided translation of the presentations.

The delegation was warmly received by Tochigi representatives and shared in special cultural activities including a rare invitation to view a historical art form of archery. Following these special ceremonies and a formal seven-course banquet, the delegation left the next morning via a Japanese bullet train to Tokyo. The efficiency of Japan’s public transportation is impressive arriving on time – all the time – while traveling at speeds in excess of 200 miles per hour. The bullet trains are a particularly impressive form of transportation between regions of this densely populated country.

The importance of developing relationships to business activity was emphasized in an informative discussion with U.S. Embassy Minister-Counselor for Commercial Affairs John Peters. Minister Peters told the group that Indiana and the Midwest was well known in Japan and that the development of relationships, such as the sister city program were important for expanding business opportunities. Minister Peters suggested that the delegation focus on developing and executing a plan for a sustained relationship with the region, noting that in addition to suppliers to Japanese firms, the region’s potential for growth in tourism and educational opportunities was significant. He commented on the Japanese interest in regional tourism assets and events: to include recognition of the West Side’s Nut Club Fall Festival, the importance of the Lincoln connections between Indiana and Kentucky and sporting activities such as the Indy 500 and horse racing at the Kentucky Derby and Ellis Park.

Tri-State Delegation Hits the Ground Running in Malaysia

By Robert Clark
Schroeder Family Dean of the School of Business Administration
University of Evansville

The University of Evansville's “Access Asia Now” Trade Mission, led by Evansville Mayor Jonathan Weinzapfel, hit the ground running in Malaysia on Monday. After a long flight from Evansville to Kuala Lumpur, via Chicago, Hong Kong, and Singapore, the delegation has been busy exploring business opportunities.

The U.S. Department of Commerce representatives from the U.S. Embassy in Malaysia organized a series of meetings and briefings to provide trade mission delegates with an understanding of current business practices in Malaysia related to U.S. companies. These briefings provided valuable insights into the operational and logistical aspects of doing business in Malaysia - America's 10th largest trading partner. Throughout the week, delegates were provided opportunities to learn more and develop relationships with local representatives. These included individuals from MIDA - Malaysia Industrial Development Authority, MATRADE - Malaysia Trade External Development Corporation and the Federation of Malaysian Manufacturers Association - FMM.

As one delegate noted, “We've learned a lot of abbreviations, but more importantly, we have developed relationships with officials who are so important in getting business done here.” The group also visited with a number of multinational companies and heard first hand the challenges and potential rewards of business in this important trade region.

One particular business deals with the production and distribution of palm oil. The delegation toured the firm's facilities and learned more about its future plans - and the healthy living aspects of palm oil, a non trans fat cooking oil. The group learned that it was the first American delegation that the firm has hosted and yet we followed a delegation from Africa that met with owners the week before.

The group also shared American practices on Higher Education with officials from the Ministry of Higher Education. It was clear that the economic development of both the U.S. and Malaysia is tied to workforce development.

Ending the busy schedule in country was a reception for the Trade Mission delegation at the home of U.S. Ambassador Christopher J. LaFleur. The Ambassador's hospitality was evident as he greeted the delegation and the more than 100 local guests who shared the dinner reception.

Mayor Weinzapfel presented the Ambassador with a gift from the city on behalf of the Trade Mission and expressed everyone's appreciation for the warm hospitality with which we have been greeted.

The mission departs Malaysia on Friday for its second leg - Japan.

Delegation from Tri-State to Leave on Access Asia Now Trip May 19

On Saturday (May 19) a group of individuals from the Tri-State will leave for Asia as a part of the University of Evansville's Institute for Global Enterprise in Indiana "ACCESS Asia NOW: Tri-State Mission to Malaysia & Japan."

UE's Institute has partnered with the U.S. Department of Commerce to provide Indiana and Tri-State businesses with a chance to visit some of the most promising markets in the world. Delegates will visit Kuala Lumpur, the largest city in Malaysia and Tochigi City, Tokyo, and Tahara, Japan, during the trip May 19-31.

Evansville Mayor Jonathan Weinzapfel, will lead the delegation. "This is such an important trip because we will be able to communicate directly with companies in Asia and tell them why they should invest in the Tri-State," said Mayor Weinzapfel. "We have to think globally if we want to grow our economy and having businesses from places like Kuala Lumpur and Tokyo locate here is a great start."

Robert Clark, dean of UE's Schroeder Family School of Business Administration notes that this is an important trip for our area because global business is a critical element in our region’s future competitiveness. "The trade mission will provide Tri-State executives with insight into the economic opportunities afforded by Asian business connections. The trade mission will also provide leaders with a level of cultural exposure that will help increase global understanding as the delegation will be visiting Evansville’s sister city – Tochigi City, Japan – reaffirming Evansville’s connections with it," Clark said. A portion of funding for this trip is being provided by a grant received by the University of Evansville from the U.S. Department of Education’s Business and International Education program.

LaShone Gibson, senior associate director of UE’s Institute described the motivation behind coordinating this mission. "Our aim is to advance regional economic development on an international stage. We want our region to have a competitive advantage in the global marketplace; exposing Tri-State businesses to the opportunities within Asian provinces is a step toward this objective because therein lies the greatest opportunity for market growth."

Those attending 'ACCESS Asia Now' will include:
•Jonathan Weinzapfel, Mayor of Evansville
•Stephen Jennings, president of the University of Evansville
•LaShone Gibson, senior associate director of the Institute for Global Enterprise in Indiana.
•Robert Clark, dean of the UE Schroeder Family School of Business Administration and vice president for Strategic Initiatives
•Todd Mosby, executive director of the Gibson County Economic Development Corporation
•Connie Wellmeyer, assistant general manager for Toyota Motor Manufacturing, Inc.
•Dan Burgher, vice president of Information Technology for Vectren
•Kim Humphrey, vice president for International Banking for Old National Bank
•William Kuzma, CEO of Natural Enrichment Industries, Inc.
•Kevin Sheilley, executive director of Northwest Kentucky Forward
•Dusan Marinkovic, international trade specialist for the U.S. Commercial Service
•Mary Powelson, general manager for Clearcrest Pines Golf & Banquet Centre
•Pam Renninger and Rob Wagner, partners with BKD of Indianapolis
•Manami Johnson, Japanese speaking staff of BKD of Indianapolis

The delegation will participate in U.S. Embassy-sponsored networking events and site visits, host country government briefings, and one-on-one meetings customized to each company’s needs.

Mayor Weinzapfel will participate in a mayoral exchange while in Tochigi City with Tochigi's Mayor Yoshiyuki Higano. Weinzapfel will also present Higano with an official gift from the city of Evansville – an original three-dimensional column with the symbols of both cities designed by local artist Amy Musia.