As the chairman of the board and the president & CEO of World Trade Center Utah, we are grateful for the leadership of Gov. Gary R. Herbert, Lt. Gov. Spencer J. Cox and the many state public health officials that are working to help Utah prudently prepare and respond to COVID-19. As Utahns rally together — while, of course, maintaining appropriate social distancing — to take proactive measures against COVID-19, WTC Utah is leaning in to provide increased support to the international business community. Our objective is to provide resources to Utah businesses to minimize to the extent possible disruptions caused by the virus so Utah can continue on its path of success and prosperity as we weather this public health and economic storm.
As is abundantly clear, there is major volatility in global markets. With international travel and large gatherings becoming increasingly discouraged, we are witnessing a significant decrease in business activity and a corresponding increase in uncertainty. We are reminded that capital is a coward as it flees to the sidelines in the face of so much uncertainty. The result is whipsaw action in markets and our 401k accounts. While we don’t have any hot stock picks for you, we do have data points that underscore why international trade and investment are important all the time, particularly during a period of economic hardship.
International trade and investment has been critical to Utah’s economy over the past decade of growth. When Gov. Herbert took office in 2009 in the midst of the financial crisis, increasing international business was one of his top priorities to bring Utah’s economy out of recession. With this focus on international engagement, Utah’s exports nearly doubled from 2009 to 2012, providing critical growth to Utah’s businesses as Utah emerged as one of the best economies in the country.
International trade and investment now support nearly one in every four jobs in the state, with small businesses accounting for 85% of Utah’s exporters. Last year, international sales added $5 billion in additional revenue for Utah’s small businesses, and Utah’s export growth rate has been the highest in the nation for the past two years. Increasingly, Utah is poised to be known not just as the crossroads of the West, but the crossroads of the world.
Our highly international economy should give us confidence as we face the economic uncertainty ahead: The United States International Trade Commission reported that in 2009, small and medium-sized businesses that exported had more than twice the total revenue of their non-exporting counterparts. These exporters had revenue growth of 37% between 2005 and 2009, while total revenue declined by 7% for non-exporting businesses over the same period. This is great news for all of us, including the more than 3,500 Utah small and medium-sized enterprises that export.
In short: International trade and investment are some of the most powerful ways to immunize Utah businesses from the economic effects of COVID-19.
Even as many of us temporarily transition to telecommuting, World Trade Center Utah is recalibrating its programming to provide Utah businesses with the tools and resources necessary to continue to compete and win here at home and around the world as we all press forward in these uncertain times.
We invite you to join WTC Utah in supporting Utah businesses during this temporary disruption. If you are a business engaging in international trade or investment, review the resources below and take advantage of the support WTC Utah can provide. If you are a service provider, reach out so that we can share your expertise with businesses that need them through webinars and one-on-one introductions. And if you are a civic or government leader, please share these resources with your network and constituents so we can collectively support businesses across the state.
We strongly encourage Utah businesses to review these resources and to engage where appropriate to:
- Apply for international trade grant funding to offset costs for adjusting to international trade disruptions.
- Explore subsidized federal disaster loans for businesses suffering substantial economic injury as a result of COVID-19.
- Schedule free consulting services to troubleshoot supply chain or other disruptions your business may be experiencing.
- Leverage WTC Utah’s global network to continue your business development even as travel grinds to a halt.
- Receive free market research and business intelligence as you adapt to changing global conditions.
- Utilize WTC Utah’s video conference and webinar platforms to continue business meetings while telecommuting.
- Participate in our upcoming trade and investment online webinars featuring local, national and international experts. Sign up here to receive invitations to these events and updates on other WTC Utah resources.
For more information and resources, visit wtcutah.com or email info@wtcutah.com.
A. Scott Anderson is the chairman of the board of World Trade Center Utah. Miles Hansen is the president & CEO of World Trade Center Utah.