The Joint Economic Development
Committee (JEDC) was reconstituted this legislative session to promote
and encourage the preservation, expansion, and sound development of new
and existing industry, business, commerce, agriculture, tourism and
recreational facilities in the state. We have met on the progress of
many topics of importance to the growth of jobs in the state, including
monitoring regulatory reform initiatives which the General Assembly has
passed in recent years and workforce development initiatives.
Recently, the JEDC met to hear witnesses speak to potential growth and
employment opportunities for RI companies through product exports
abroad.
Testifying at a recent hearing of the JEDC, the CEO of a local company
remarked that his customers in Japan view the “Made in the
USA” label as a sign of quality. Made in America means something
again, and that is great to hear. To paraphrase Mark Twain,
reports of the death of manufacturing in America are premature.
Exports represent an important indicator of this sector’s
success, and we have been pleased to learn during the committee’s
hearings that the export market is strong, there is potential for
additional growth, and that growth in exports translates into growth in
jobs at home.
Exports are strong, representing 31 percent of the total economic
growth over the past 22 years, according to Bureau of Economic Analysis
reports. In Rhode Island, exports grew by 53 percent over the past two
years, from $1.9 billion in 2009 to $2.3 billion in 2011. What’s
more, the return on investment from a state perspective is huge, with
$40 in increased exports generated for each dollar invested in trade
programs, according to the John H. Chafee Center for International
Business at Bryant University (The Chafee Center works with small
businesses to provide guidance in entering foreign markets and
exporting.).
Exports are a critical and growing part of our economy, and it is vital
that we continue to work together to cultivate ideas and build upon
these successes. Particularly striking was a discussion we had
regarding “in-sourcing,” or, bringing manufacturing jobs
back to the U.S. [and RI] from overseas. At our recent committee
hearing, we heard from a number of Rhode Island-based companies that
manufacture products in RI and successfully sell their products
abroad. For example, renowned jewelry makers, Alex and Ani,
recently gained entry into the largest department store group in
Europe, and also have footholds in Japan and Israel. Another RI company
named Hope Global manufactures many high-grade textile products,
including high-quality shoelaces for Red Wing Boots. Its laces
are shipped to countries such as Brazil, Korea, Japan and even
China! RI-based Mearthane Products Group has grown its
manufacturing team to meet demand for polyurethane products, including
submarine gaskets, printer rollers and luggage wheels sent to
end-product manufacturers across the globe. By expanding RI's
product exports abroad, we can increase the number of good-paying jobs
for state residents here at home!
RI companies interested in expanding their business abroad are
encouraged to contact the Chafee Center for a free consultation to any
Rhode Island (Phone: 401-232-6407 or E-mail:
chafeecenter@bryant.edu).
(Sen. James Sheehan and Rep. Donna Walsh co-chair the Joint Committee
on Economic Development. Senator Sheehan is the Democratic Senator from
District 36, Narragansett, North Kingstown; Representative Walsh is the
Democratic Representative from District 36, Charlestown, New Shoreham,
South Kingstown, Westerly.)
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