Promising Growth in Triad Exports and Foreign Trade Zone

Where We're Winning: Exports

Like the rest of the US, the Piedmont Triad has suffered the economic losses and unemployment of the recession. However, an area where our local economy is roaring back is exports. In a recent article in the Greensboro News & Record, Greg Sizemore, director of the North Carolina Office of the U.S. Export Assistance Center was quoted saying, "We are climbing our way out of this recession and exports are leading the way."

A recent report by the Brookings Institution shows the Greensboro-High Point metro area attained a 14.2 percent growth rate in exports - leading other regions in North Carolina by more than 5 percent.

The Triad's Business Journal reported in February that, "The Triad is the state's most active exporting region, and manufacturers statewide are seeing the value of goods they're shipping overseas returning to and even surpassing pre-recession levels. Exported manufactured commodities originating in North Carolina hit $1.89 billion in December, up from $1.8 billion in December 2010."

Reasons for these gains include the fact that the Triad is recognized internationally as a leader in manufacturing, logistics and distribution. The region's location, infrastructure, roads, rail and air - along with a workforce trained and skilled in production and logistics - give the Triad an advantage as a center for getting goods where they need to go. It's exciting that as the area's logistics economy grows, a larger percentage of the revenue is in exports-an increase that helps improve the local economy as well as the national trade deficit.

Visit our website for more on the area's logistics and distribution capabilities.

Increased Activity for Foreign Trade Zone #230

The Piedmont Triad's Foreign Trade Zone #230 was established in 1998 to help regional manufacturers compete globally. Foreign Trade Zones are designated to give domestic manufacturers and distributors a more even playing field with overseas competitors by letting them streamline procedures and avoid or defer the payment of U.S. Customs duties and fees that are normally collected when goods, including component parts of finished products, enter the country.

This year, FTZ #230 will convert to the 'Alternate Site Framework' of zone management. This new model eliminates the need for zones to designate specific 'zone sites' and will allow the entire 12-county region access to FTZ services for its companies.

Companies in the Triad that are active in and earning benefits of FTZ #230 include Klaussner Furniture Industries, Asheboro; Banner Pharmacaps, High Point; First Salem Services, Greensboro; VF Corp., Mocksville; Liberty Hardware, Winston-Salem; and United Chemi-Con, based in Lansing, NC.

Penny Whiteheart, PTP's executive vice president adds, "I'm expecting maybe two or three more companies to be able to utilize the FTZ by the end of the year. It may be that those firms that made it through the recession and are seeing an economic recovery now are putting some thought into where they fit in the global supply chain."

After a slow period, it's good to see local companies take advantage of the benefits of the FTZ. Whiteheart explains that the Foreign Trade Zone services are especially beneficial to companies that import components in order to manufacture finished products for export. Certain merchandise can be imported without going through formal customs entry procedures or paying import duties. This service is also helpful to companies that import goods to be held in inventory since duties can be deferred. Goods that are imported into one FTZ may be shipped to another FTZ duty-free.

Check the PTP website if you are interested in learning more.

Keep your eye on North Carolina's Piedmont Triad Region via LinkedIn, Facebook or by following us @ptpNC on Twitter so we can keep you up to date on news, events and important issues to our region and the general business economy.

April 2012

SITES & BUILDINGS

This 550-acre Certified Site for sale in the North Carolina Industrial Park in Alamance County is less than 2 miles from rail and has all public utilities including water, sewer, electricity, fiber and natural gas.
Randolph County features a 105-acre site for sale in Liberty Business Park. The site has excellent proximity to U.S. 421
Formerly a Guilford Mills textile facility, this 67,890-square-foot industrial building in Yanceyville in Caswell County is two stories and can be subdivided into 5,000 SF to 20,000 SF blocks
This former battery manufacturing facility in Winston-Salemis 73,840 square feet and can be subdivided into spaces of 42,160 SF and 31,680 SF. It features excellent access to I-40 and U.S. 52 and is on the Norfolk Southern rail line

NEW & EXPANDING

Stanley Furniture Inc. a manufacturer and marketer of premium wood residential furniture, will expand in High Point by consolidating its showroom and two existing corporate offices. The company plans to create 42 jobs and invest $4 million over the next three years in High Point.
Ultracraft Cabinetry plans to add 40 new employees to its production facility in Randolph County. It currently employs 210 workers at its 213,000 square-foot manufacturing facility and corporate offices.
Royce Too, a hosiery design and marketing firm, will relocate its headquarters from the Empire State Building to Winston-Salem. The company, which is owned by Okamoto Group, a Japanese sock maker, specializes in men's and women's hosiery. The company plans to hire staff in hosiery design, supply chain, logistics, production, brand management and marketing.
Carolina Precision Plastics LLC, a global plastics manufacturer, will locate a new facility in Davie County. The company plans to create 140 jobs and invest $5.3 million during the next three years in Mocksville. CPP currently employs 280 employees at its facilities in Greensboro and Asheboro.
Burlington Technologies Inc., a manufacturer of specialty textiles, will expand its facility in Alamance County. The company plans to create 110 jobs and invest $725,000 over the next three years in Burlington. This planned expansion is contingent upon the company receiving the military contract.

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