3rd quarter 2008           

Economic Development 101
Why we encourage international trade opportunities

An important part of the Volusia County economy is the financial impact area
manufacturers generate through the production of durable and nondurable
products. Volusia-manufactured products include boats, skin products and lotions, a variety of food and beverage products, high technology electronics, medical products and communication devices.

Unlike many other industry sectors that generate cash flow, manufacturing generates
wealth.

Volusia’s manufacturing sector generates more than $1.5 billion in product output annually with payrolls exceeding $402.4 million. Notably, Volusia County is home to more than 430manufacturing companies that employ in excess of 15,000 skilled workers between direct hires and those workers provided by third party employee leasing companies.

The export of locally manufactured goods accounted for $267.6 million, or 18 percent, of the community’s output in 2006, a number that climbed in 2007 to nearly $280million. Volusia County’s Division of Economic Development has experienced a growing interest by area companies in the expansion of their markets.

Much of this interest has been brought on by the exchange rate of the U.S. dollar with
other world currencies. So far this year, Volusia County companies have exported products to more than 120 countries worldwide.

The county supports this growing trend as a means of encouraging local companies to
diversify their market base and to mitigate downturns in the domestic market. The
impact of exporting locally produced products supports the employment of several thousand manufacturing jobs. By expanding sales opportunities to foreign markets, the demand for local employment is strengthened and often creates a need for new jobs.

Unlike most other industries, manufacturing generates wealth within the local economy by exchanging manufactured goods for fresh capital dollars that originate well beyond the borders of the community. This infusion of fresh capital enables the community to diversify its other employment sectors, such as business and professional services and retail. According to the U.S. Chamber of Commerce, the sale of manufactured products creates a residual economic recycling of new capital that will circulate six or seven times throughout the community, unlike retail that carries a factor of only one to two cycles.

Rick Michael - Director, Volusia County Division of Economic Development

Volusia County's Division of Economic Development has been recognized by the U.S. Department of Commerce’s Commercial Service for its unique exporting program and its coordination of federal and state international trade services.

“VolusiaCounty’s aggressive efforts to promote its companies’ products in markets
around the world have produced millions of dollars in export sales and have added greatly to the success of the Commercial Services’ central Florida program,” said Rhonda Keenum, assistant secretary for trade promotion and director-general of the U.S. Commercial Service.

Since 2003, the Volusia County Division of Economic Development has worked with area manufacturers by coordinating federal and state trade services directly with local companies. Much of this coordination has been in the form of support to resolve obstacles to exporting logistics including the identification of potential buyers, market analysis and scheduling opportunities for area companies to focus on the sale of locally produced products.

In 2004, the department began its Gold Key program which is designed to help offset
the cost for local companies to plan overseas sales missions. The program is coordinated with the U.S. Commercial Service and with Enterprise Florida and provides local companies a coordinated effort to identify potential customers and to cover the cost of translation and transportation services in more than 150 countries worldwide.

The program offers opportunities for Volusia County companies to design and initiate a
new market approach or to participate in an organized international trade mission sponsored by the U.S. Commercial Service or by Enterprise Florida’s International Trade Division.

In 2006 Hawaiian Tropic in Ormond Beach used the Gold Key program to enter the Chinese market with new distribution channels and more than $8 million in new product sales.

Similarly, Florida Gourmet Foods in DeLand used the Gold Key program to begin
sales in the Bahamas. Heavenly Cheesecake in Holly Hill and Costa delMar in Daytona Beach are other companies that have benefited from the Gold Key program.

Exporting opportunities and support can be designed for companies of all sizes. In 2007, the county’s Gold Key program provided a grant to Karavan Trailers to participate in an Enterprise Florida trade mission to Brazil. The mission resulted in a $500,000 contract for this small Edgewater-based company.

Volusia County companies that would like to explore new international markets are
encouraged to contact Paul Mitchell, international trade specialist, at the Volusia County Division of Economic Development at (386) 248-8048.