Despite the gloomy outlook we tend to hear every day, the U.S. economy is at an all-time high, with American ingenuity leading a domestic energy boom, housing in recovery and manufacturing coming back to American soil.
That was the message Ghislaine Austin had for those attending the Wells Fargo 2013 Midyear Report on Trade Tuesday morning at the World Trade Center Savannah.
“Yes, growth is slow,” said Austin, regional investment manager for Wells Fargo. “But that’s not necessarily a bad thing. When growth occurs too fast, it can cause a host of problems.”
Austin said she expects the Eurozone to emerge from its mild recession by late this year or early 2014.
“We’re seeing Germany start to lighten up a bit in its demand for austerity,” she said, adding that there have been some 400 incidences of global easing over the course of the last year.
Austin said the face of the world economy is changing.
“By some measures, emerging economies have surpassed developed countries in terms of GDP,” she said. “Middle-class consumers are increasing at a rapid pace, especially in emerging economies.”
Those new middle-class consumers are helping to drive business at Georgia Ports, where exports now exceed imports, creating a strong balance of trade.
“That balance means we can generate revenue both coming and going,” said John Petrino, director of business development for the ports.
While container cargo through Garden City Terminal generates 85 percent of Georgia Ports Authority revenue, a mix of auto/machinery units, bulk and breakbulk helps GPA maintain a diversified portfolio, he said.
“At Ocean Terminal and in Brunswick, we export rolling cargo such as Caterpillar, Mercedes and BMW to emerging markets. We also help feed the world, exporting grain in bulk from Colonel’s Island in Brunswick,” he said.
Building on Austin’s comments, Petrino noted that Georgia Ports is also poised to take advantage of the housing recovery.
“With large regional distribution centers for Home Depot and Lowes, as well as home décor and furniture giants like Pier I and Ikea, we will see the housing growth come right through our ports,” he said.
With between 7,000 and 8,000 truck moves a day at the ports, Last Mile projects such as the Jimmy DeLoach Parkway connector are important to growth,” he said.
“We invest some $70 million to $100 million a year in infrastructure,” Petrino said. “With 44 percent of U.S. consumers best served through Georgia Ports, it’s critical that we handle that volume with speed and efficiency,” he said.
John W. Wallace Jr., chairman of the Panama Gateway International Association, said the canal expansion is currently 53 percent complete and remains on track to open in 2015.
“World container volume is growing at a rate of 6.2 percent, with stronger growth in emerging markets,” said Wallace, also with Wells Fargo Advisors.
He noted that the move to larger ships is coming sooner rather than later.
Kathy Oxford, senior trade manager for the Georgia Department of Economic Development, said 2012 was a record year for Georgia exports at $35.9 billion, making the state the No. 12 exporter in the country. It was also a banner year for imports, which came in at $72.4 billion, ninth in the country.
Her department stands ready to assist small to medium-sized businesses looking to either start or expand their exporting, she said.
Services include export research, target market information, export finance referrals, key contacts, trade shows and missions, trade opportunities alerts and introductions to incoming buyers.
“We are here to help facilitate trade, and we have a number of ways we can do that,” she added.
Small businesses in Georgia interested in growing their exports can now apply online for export services at http://trade.georgia.org.