When the Savannah Economic Development Authority established the World Trade Center Savannah more than three years ago, one of the new organization’s first tasks was to identify countries with the potential for strong business and economic ties to the Savannah region.
It came as no surprise a year later when the results of an in-depth, multi-dimensional study put Germany at the top of that list.
Since then, SEDA has been focusing the lion’s share of its international marketing and sales efforts on attracting regional investments by German companies as well as helping area firms find opportunities to do business in Germany.
Lately, however, Germany – along with most of the rest of Europe – has taken an economic hit as the value of the euro has decreased by 20 percent.
“That’s good if you’re planning a vacation to Austria, not so good if you’re a German company looking to do business in the U.S.,” Craig Lesser told SEDA’s board and advisory council Tuesday.
The former commissioner of the Georgia Department of Economic Development under Gov. Sonny Perdue, where he was pivotal in bringing KIA to West Point, Lesser now owns his own firm, the Pendleton Group, and works with SEDA as a consultant. He has participated in several SEDA and state economic development missions to Germany and helped facilitate visits here by German companies.
“So now everyone is trying to figure out what to do,” he said, recalling a lunch meeting he had last week in Atlanta with the consul general of Germany and the consul general of Switzerland, whose bank had just raised its rate against the euro by 30 percent.
Here, he said, were his takeaways from that conversation:
“Small- and medium-size manufacturers in Germany and Switzerland, as well as those in northern Austria and northern Italy, are all taking these ups and downs with a grain of salt,” Lesser said. “The feeling is that German and Swiss products are of high quality and will continue to be in demand in America. If Americans are buying more of these products, because the euro has made them a little bit cheaper, then it’s quite possible many of these companies are going to continue to consider investing in the United States, where their markets exist.
“The theme both wanted to hammer home was this — with the world financial situation fluctuating on a fairly erratic basis, don’t panic every time you see a headline. If you have a plan, stick to the plan.”
Lesser said he’s convinced the strategy SEDA has put in place has a long-term value for Savannah and the surrounding area.
As we continue to move out of the recession, competition has become fierce, Lesser said.
“It’s no longer ‘build it and they will come.’ You have to market yourself, you have to let people know what you have to offer that’s unique.”
That’s where Savannah has a competitive edge, he said.
“It’s in the marketing Savannah has done in the last several years, in the relationships that have grown from government, business, culture and education all working together — which, by the way, is clearly perceived as a plus by potential investors.
“Take Atlanta out of the mix for a moment and Savannah is now known as the international city of Georgia,” he said. “Economic developers across the state are taking note as Savannah raises the bar.
“You are no longer waiting for opportunities to come to you, nor are you taking anything that comes. Now you are being more strategic, developing relationships and growing your business with a plan.”
Savannah has another big advantage in its culture, Lesser said.
“I will tell you now, no other city in Georgia, including Atlanta, has a culture like Savannah, and this is something international investors consider very important.
“So continue to stay the course. What you’re doing is clearly paying off.”