Organic farming is an approach to agriculture that attempts to mimic nature and natural processes when raising crops and livestock. Rather than using techniques of larger-scale industrial agriculture, like genetic modifications, monoculture farming, and synthetic fertilizers and pesticides, organic farmers seek to conserve biodiversity and natural resources on their farmland.

Organic products have seen a boom in demand in recent years, and there are a number of reasons why consumers might be seeking out organic products. Organic techniques appeal to environmentalist consumers who value a more sustainable approach to agriculture that promotes biodiversity, limits pollution, and increases carbon capture. For meat and dairy consumers, livestock production on organic farms is considered to be a more ethical and humane way to raise animals because they are given more access to the outdoors, better feed, and fewer hormones and antibiotics. Health-conscious consumers can point to evidence that organic products have health benefits like greater nutrient density and lower levels of toxic metals and pesticide residue than conventional agricultural products.

Whatever the reasons, organic farming has increased substantially over the last decade or so. In 2008, the U.S. had 10,903 organic farms covering around 4 million acres of farmland. In 2019, there were nearly 16,500 organic farms on 5.5 million acres. And these farms have grown alongside consumer demand: the sales of organic products have more than tripled over the same span, rising from $3.1 billion to $9.9 billion.

Within the nearly $10 billion organic food market, milk, chicken, and eggs are the top-selling products. Organic milk leads all products with sales of more than $1.5 billion per year, while chicken sees $1.1 billion in sales annually and eggs generate $887 million. Apples are the top-selling form of organic produce, with $475 million in annual sales.

While the organic farming industry has seen tremendous growth, not all farmers are adopting organic practices. Many large-scale agricultural operations in the Midwest and South have relatively low numbers of organic farms and acreage devoted to such operations. But one location where organic agriculture has taken hold deeply is California. California is home to more than 3,000 organic farms—more than twice the next-highest state—and the total acreage of organic farms in the state totals nearly 1 million acres.

California is the nation’s top state for agricultural sales overall, so it is unsurprising that the state is also the leader in organic production. In relative terms, several other states devote a greater share of their farmland to organic farming than California, where organic farms represent only about 4% of the state’s agricultural acreage. Instead, the list of top states for organic farms on a relative basis is led by northeastern states including Maine, New York, and Vermont—the runaway leader, where organic acreage accounts for nearly 17% of its total.

The data used in this analysis is from the USDA. To identify the states with the most organic farms, researchers at Commodity.com calculated the total certified organic acres operated as a percentage of total farmland in each state. In the event of a tie, the state with the greater number of organic farms as a percentage of total farms was ranked higher. Only states with available data from the USDA were included in the analysis.

Here are the states with the most organic farms.

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/most-organic-farms/

The post U.S. States With the Most Organic Farms appeared first on Global Trade Magazine.

In 2020, the sector directly contributed $2.2 trillion to the nation’s income, accounting for 10.8% of total GDP. If you include direct and indirect value-added activities (such as purchases from other industries), this rises to 24%.

Manufacturing is an equally critical employer. Indeed, current population survey statistics show that there are 15.7 million employees working in U.S. manufacturing roles–10% of the country’s entire working population. 

It is no surprise, therefore, that the industry is at the cutting edge of innovation. 

Within this active and pioneering landscape, many firms are embracing Industry 4.0 with open arms, recognizing it as the future of the sector and vital to unlocking competitive advantages. 

Resultantly, it is an industry attracting significant private investment, and states are jostling in an attempt to get their slice of the pie, doing so by providing a range of different incentives, from tax credits to grants.

It’s easy to see the logic from the state perspective when looking at the economic spillover. Indeed, one paper estimates that the average automobile manufacturer receiving state subsidies promises to create 2,700 jobs and receives $290 million–more than $100,000 per role created.

Here, we’ll take a look at some of the U.S. states offering the most attractive incentives for manufacturers. 

CALIFORNIA

As the most populated state in the country, it is of little surprise that California is a hotbed of manufacturing innovation, having successfully drawn in large numbers of manufacturers through a series of initiatives.

Notably, California provides a dedicated incentive in the form of the Manufacturing and Research & Development Equipment Exemption. Available to all manufacturers and businesses engaged in research and development activities relating to biotechnology, physical sciences, engineering and life sciences, a partial exemption in state sales and use tax is provided, capped at $200 million a year.

The state also promotes green manufacturing practices through its CalRecycle programs that include grants and low interest loans for the development of critical infrastructure. Examples include manufacturing projects that proactively reduce landfill waste and minimize carbon footprints, with $11 million in grants having been provided in FY 2018-19.

This is alongside a range of general incentives that manufacturing firms can tap into. All qualifying companies may receive corporate tax income credits up to 24% of their basic research expenses, and 15% on R&D expenses. 

Equally, the state offers discounted electricity rates to companies bringing new jobs and loads of at least 200kW annually. Typically, these discounts are between 12-30%, spanning a five-year period. 

NEW YORK

New York also offers a variety of dedicated incentives for manufacturers. 

Through the Manufacturer’s Real Property Tax Credit initiative, qualifying firms can apply for a credit equal to 20% of the real property taxes paid on their business properties in each given tax year. Further, the state’s Investment Tax Credit (ITC) scheme provides 5% credit to those companies that placed qualified property into service during any given tax year, with new companies able to receive this as a refund instead of carrying it forward. 

Beyond property, New York also runs the Excelsior jobs program that provides five refundable tax credits for up to 10 years. This includes a credit of up to 6.85% of wages per net new job and a credit valued at 2% of qualified investments, among others, with qualified green projects receiving even more favorable percentages. 

There are also special benefits for those operating within the food and beverage industry specifically, namely through the Alcoholic Beverage Production Credit. 

Those companies producing 60,000,000 or fewer gallons of beer or cider, 20,000,000 or fewer gallons of wine, or 800,000 or fewer gallons of liquor within a tax year may be eligible to receive a credit equal to 14 cents per gallon for the first 500,000 gallons produced in New York state, with 4.5 cents per gallon credits offered thereafter.

TEXAS

As the second-largest state, Texas has a buoyant manufacturing sector with plenty of commercial space available and a series of attractive incentives for businesses.

As the largest deal-closing fund of its kind, the Texas Enterprise Fund is one that particularly stands out, providing cash grants to companies considering new projects in an attempt to win out over other competing states. Indeed, it is critical in helping the state to secure new projects that stand to offer significant capital investment, employment opportunities and other benefits.

The Industrial Revenue Bonds scheme also benefits manufacturing firms more specifically, used to provide tax-exempt financing (of up to $10 million for $20 million-plus projects) for land and property to manufacturing and industrial developments. 

This is a central draw alongside Chapter 313 within the Texas Economic Development Act. Specifically, Chapter 313 was instated to incentivize leaders of capital-intensive investment projects, such as large-scale manufacturing and research and development facilities, to select the state. Meanwhile, like California, Texas offers tax exemptions on utilities to manufacturing companies that manufacture, process, or fabricate tangible property.

FLORIDA

Those companies operating in the advanced manufacturing sectors are deemed to be eligible for two different programs run in the state of Florida.

The first of these is the Capital Investment Tax Credit (CITC) that aims to bolster the state’s capital-intensive sectors. Here, an annual corporation tax credit is provided for 20 years for qualifying projects that invest $25 million and create at least 100 jobs.

The second is the High Impact Performance Incentive (HIPI) that instead provides grants to businesses operating in high-impact sectors, such as transportation equipment manufacturing. Eligible companies must make a cumulative investment of $50 million, with this money being used to create a minimum of 25 full time jobs in the region over three years.

Beyond these two flagship initiatives, the state also provides a series of other special incentives. The Rural Community Development Revolving Loan Fund and Rural Infrastructure Fund has been deployed to “meet the special needs that businesses encounter in rural counties,” for example. And the Brownfield Redevelopment Bonus Refund is used to “encourage Brownfield redevelopment and job creation,” with applicants receiving tax refunds of up to $2,500 for each job that they create.

INDIANA

Indiana is often touted as the beating heart of U.S. manufacturing. According to 2020 figures, the industry accounted for more than a quarter (27.84%) of the state’s total output, employing 17.07% of its working population, with more than 8,500 manufacturing firms operating in the Hoosier State.

Indeed, Indiana lays claim to the highest concentration of manufacturing jobs in the country, with 80% of the world’s RVs manufactured in the state. 

To sustain such a position, Indiana offers a variety of tax incentives and economic development programs to stimulate the creation of jobs and investment locally.

Its Skills Enhancement Fund supports the training and upskilling required to make capital investment viable for businesses, typically reimbursing half of all eligible training costs over a two-year period. 

Further, Indiana offers two tax incentives targeted at encouraging investments in research and development. These initiatives stand alongside its Patent Income Tax Exemption, Redevelopment Tax Credit, Venture Capital Investment Tax Credit, Headquarters Relocation Tax Credit, Hoosier Business Investment Tax Credit and Community Revitalization Enhance District Tax Credit. 

ILLINOIS 

Illinois offers a variety of competitive incentives, from tax credits to grant and loan programs, in the aim of attracting businesses of all kinds, including manufacturers.

The latter sector benefits specifically from the Manufacturing Machinery & Equipment Sales Tax Exemption that provides a 6.25% state tax exemption on consumables purchases made in relation to the manufacturing process.

Economic Development for a Growing Economy is a general initiative, acting as one of the state’s primary incentivization programs. Those firms investing $5 million and the creating 25-plus jobs can benefit from 10-year tax credits on their expanded payroll. 

Similarly, the High Impact Business scheme is available, providing a sales tax exemption on manufacturing equipment purchases among other activities to those businesses making $12 million investments to create 500 full-time jobs, or $30 million to ensure the retention of 1,500 full-time jobs.

Illinois’ other primary incentive programs include its Tax Increment Financing policy and New Markets Tax Credits, among others, while the state also operates dedicated enterprise zones and the U.S. Empowerment Zone Program, each offering a cohort of benefits to companies.

NORTH CAROLINA

The Economic Development Partnership of North Carolina offers a range of incentives spanning discretionary grants, building demolition and reuse, public infrastructure, transportation, workforce training and development and tax exemptions, among other programs.

Within this broad net, manufacturers can benefit directly from several dedicated tax exemptions. 

The state offers a Machinery and Equipment, Sales and Use Tax Exemption for general manufacturing machinery, with an additional Raw Materials, Sales and Use Tax Exemption ensuring that component parts or ingredients of manufactured products are also exempt (this including those packaging items for wholesale and retail products delivered to end customers).

A third sales and use tax exemption can be found on electricity, fuel and natural gas when they are used in manufacturing operations, while the state’s Inventory, Property Tax Exclusion ensures that North Carolina and its local governments do not levy a property tax on inventories.

MASSACHUSETTS

In Massachusetts, manufacturers are eligible for a variety of tax benefits. Be it exemptions on local personal property taxation, sales/use tax exemptions on properties purchased for manufacturing, or a 3% investment tax credit for newly purchased machinery and equipment, there are several reasons why the Bay State’s manufacturing industry is thriving. 

Indeed, it is estimated that manufacturers account for 9.39% of the total output in the state that is home to 243,000 manufacturing employees (as of 2019).

Pharma and medicine is the largest sub-sector, driven by the Massachusetts Life Sciences Initiative that offers such companies a 10% credit on depreciable property as well as a special sales and construction sales tax exemptions. Equally, the Life Science Company Jobs Credit provides corporate income tax credits to those firms creating a minimum of 50 new employment opportunities.

Beyond life sciences, a greater variety of manufacturers may also tap into a two-category R&D tax credit, the first (10%) relating to qualified expenses, and the second (15%) relating to basic research payments.

The state also offers critical grants via two key programs–the Massachusetts Transition and Growth Program, as well as the Regional Economic Development Organization Grant Program.

OHIO

The city of Mason, Ohio, lists advanced manufacturing as one of its targeted business sectors, providing a variety of incentives via REDI Cincinnati, CincyTech, TechOhio, VentureOhio and JobsOhio.

The latter of these agencies is responsible for the JobsOhio Economic Development Grant for projects requiring significant capital investment in the areas of manufacturing, R&D corporate headquarters, distribution and advanced technology.

JobsOhio also offers a Research & Development Center Grant to organizations with $10 million in annual turnover and a five-year operating history, as well as its Revitalization Program that offers funding of up to $1 million to those looking to redevelop the state’s underutilized sites.

Tax credits and exemptions are equally in abundance, some of the most notable including the Research & Development Investment Tax Credit, Job Creation Tax Credit and Sales Tax Exemption on machinery and equipment used in manufacturing processes.

LOUISIANA

Recent incentives offered by the state of saw Coca-Cola Bottling Company UNITED commit to a $42 million investment that will be used to expand its bottling facility in Baton Rouge–a project that will not only safeguard 550 jobs, but equally create an additional 15 with an average salary of $43,000.

The state is providing the firm with a competitive package that includes a $300,000 modernization grant, as well as support from LED FastStart–Louisiana’s workforce development program that delivers customized employee recruitment, screening, training development and training delivery at no cost. Further, the firm is also expected to utilize the state’s Quality Jobs Rebate and Industrial Tax Exemption Program.

The former offers up to a 6% rebate on annual payroll expenses for up to 10 years as well as a state sales/use tax rebate on capital expenses or 1.5% project facility expense rebate for qualifying expenses.

The latter, meanwhile, offers an attractive tax incentive in the form of an 80% property tax abatement for an initial term of five years for manufacturers who make a commitment to jobs and payroll in the state, with option to renew for an additional five.

The post OUR ANNUAL GOVERNOR’S CUP PROVIDES A STATE-BY-STATE REVIEW OF THE BEST SITE INCENTIVES FOR MANUFACTURERS appeared first on Global Trade Magazine.

GSLI’s Choose Texas program focuses solely on connecting these expanding or relocating businesses with Texas-specific markets that best meet their project needs and goals without the costs and hassle of traditional site locators. 

The following 11 Texas communities represent GSLI’s latest roundup of Choose Texas partners that offer companies unique opportunities for business – from competitive locations to robust infrastructure and skilled workers.

TexAmericas Center

Known for being a Top Ranked Business Facilities Location in 2021, the Texarkana region’s mixed-used industrial parks offer 3.5 million square feet and 12,000 acres of commercial and industrial property to expanding businesses. From its low operational costs, flexible facility options and access to Texas’ primary freight corridor (Interstate 30), TexAmericas Center brings 150 years of solid economic development experience to support the needs of its current and prospective tenants.

Most recently, TexAmericas Center announced efforts to combat the trucker shortage through a truck training partnership with Texarkana College. Through this partnership, space is offered to support the initiative to beef up the labor pool and continue to meet the increasing demand for drivers. Thanks to TexAmericas Center’s ideal location, students can benefit from the area’s space to practice and access multiple interstates and rail lines. 

“We have tenants who need commercial truck drivers directly or need to make sure raw materials can be brought in and shipped out for finished products,” Scott Norton, CEO and executive director of TexAmericas Center, said recently. “We want to do everything we can to support a trained workforce.”

To learn more, visit texamericascenter.com.

Dumas 

Located in the Texas panhandle, Dumas has a reputation for being one of the busiest and most historical small towns in the Lone Star State. In fact, Dumas was an essential production point for wartime products (including the largest helium deposit in the world) during World War II.

The city’s industrial park, located along the Ports to Plains International Trade Corridor, represents variety and opportunities. Current companies found in Dumas include Frito Lay Area Distribution Center, Equipment Supply Company, Inc. and Specialized Dairy Services. 

Dumas offers expanding or relocating businesses a diverse range of industries to grow among, competitive transportation access points and a proactive approach to workforce development. 

Through its partnership with Amarillo College-Moore County Campus, the city prepares the labor pool with resources relevant to industry needs. The Career Skills & Technical Training Center offers custom-based training to further develop skills needed to support growing businesses. Most recently, Dumas Economic Development Corporation worked with Beach Coders Academy to create a program specifically designed for web development skills and certification.

To learn more, visit dumasedc.org.

Laredo

Best known for its globally-minded business climate, Laredo is home to the No. 1 inland port along the U.S.-Mexico border, Port Laredo. The diverse city is about 150 miles from San Antonio and two hours from Monterrey, Mexico. Laredo represents the third position among the nation’s top five ports, after the Port of Los Angeles (No. 1) and runner-up Chicago O’Hare International Airport.

In terms of international trade, Port Laredo reported $205.88 billion of total global trade last year alone. Mexico, China and Japan are recognized as the top three trading partners of the city, with motor vehicle parts, gasoline/other fuels and diesel engines among top exports and motor vehicle parts, passenger vehicles and tractors among top imports. 

There is an alphabet of transportation options for businesses located in Laredo. From air, water, highways, motor freight, rail, bus, parcel services and trade handling services, the options are equally efficient as they are competitive. 

To learn more, visit laredoedc.org.

Sulphur Springs

Heading northeast, Sulphur Springs/Hopkins County offers a unique blend of small-town history and thriving business environment. The city is located just outside of the Dallas-Fort Worth (DFW) region along Interstate 30. The name Sulphur Springs is self-explanatory of the city’s history. Among the city gems still found there is the city courthouse, originally built in 1895, adding to the area’s traditional flair.

Looking at the business side of things, Sulphur Springs offers a robust and diverse industry presence with companies including Ocean Spray, We Pack Logistics, Aero Space Aluminum and B.E.F. Foods. The city’s advantageous transportation options offer businesses short and main line rail, air and NAFTA corridor access via Interstate 30. Did we mention the city’s municipal airport was named airport of the year? 

Additionally, Sulphur Springs is known for its outstanding academic reputation, bragging state recognition every year since 1999, and preparing its workforce via the Sulphur Springs Higher Education Center. It is clear there is nothing “small” when it comes to doing business there. 

To learn more, visit ss-edc.com.

Lancaster

The “Shining Star of Texas” lives up to its name, particularly when talking business. In 2020, Lancaster took the No. 1 position on Dallas Business Journal’s list of highest value deals by Economic Development Agencies, with an impressive $1.41 billion secured. 

Expanding and relocating businesses can benefit from the city’s competitive job investment consisting of 1,000 jobs by 2023 offering wages between $30,000 and $76,000. Location is everything when deciding on where to grow your company, and Lancaster provides ideal access to rail and multiple interstates within a three-mile radius (including IH20, IH35E and IH45) in addition to Lancaster Regional Airport, Dallas Love Field and DFW International Airport all within a 35-minute drive or less. 

Distribution and manufacturing are two driving forces behind the city’s economy with opportunity for artificial intelligence companies, cold storage, food processing & manufacturing and motor vehicle parts. Among Lancaster’s top employers are AT&T, Quaker Oats, Brasscraft, Oncor, LGS Technologies and DSV Logistics. 

To learn more, visit lancaster-tx.com.

Andrews

If you have ever wondered what a successful micropolitan region looks like, the City of Andrews is one of the best examples. Known for being among the fastest-growing micropolitan areas in the state, Andrews was recognized as the fastest-growing county in the nation between 2010 and 2015.

Business development is supported several ways, one of which focuses on advanced training and postsecondary education opportunities through the Andrews Business & Technology Center. A result of a partnership between Odessa College, University of Texas Permian Basin, College of the Southwest and the city and county governments of Andrews, this training center is a prime example of how the area commits to preparing its workers.

The small-but-mighty community is home to companies looking for long-term options. Andrews has been the home of The Kirby Co. since 1972 and currently employs 162 workers. Advance Cooling Towers is another example of longevity in the area, with 20 years of business in Andrews. Salazar Service & Trucking Corp. has more than two decades of business in Andrews while Chemical Service Co., which was originally established in 1967, expanded operations in 2014, adding 15 new jobs over five years.

To learn more, visit andrewstxedc.com

Crockett

Known for being the county seat of the oldest county in the state of Texas (Houston County), Crockett is between Tyler and Houston, east of Waco. Incorporated in 1837 and named after legendary folk hero Davy Crockett, the City of Crockett embodies small-town culture, big business opportunity and a collaborative approach to development. 

Industrial manufacturing is one of the primary economic drivers in Crockett. Among companies currently found there are Elastotech, Quantex, Alloy Polymers and Vulcraft. 

Thanks to the town’s advantageous location, Crockett provides a multimodal transportation channel via: the Union Pacific freight rail; Highways 7, 21, 19 and 287; and DFW International Airport, George Bush Intercontinental Airport and Crockett Municipal Airport.

To learn more, visit crockettedc.org.

Harlingen

Located in the heart of the Rio Grande Valley, Harlingen is known for its diverse business portfolio and highly competitive access to international markets. In fact, the Port of Harlingen generates $1 billion in economic activity via import and export activity alone.

And we must point out the robust infrastructure available for businesses. Multiple telecommunications and fiber optic services, 15 electricity providers, natural gas & propane, and high-quality water/sewer make a critical difference for businesses located here.

The city consists of 3,545 establishments and a labor force of 33,482. Among top employers, those in education, healthcare, technology and manufacturing take the lead in Harlingen. Companies such as L&F Distributors, Valley Baptist Medical Center, Penn Aluminum International LLC and United Launch Alliance are all found there.

To learn more, visit harlingenedc.com.

Sunnyvale

Known for offering expanding and relocating companies a “business climate that shines,” Sunnyvale is east of Dallas, slightly northeast of Mesquite and within the DFW market, approximately 36 miles from DFW International Airport. 

Manufacturing, warehouse & distribution and healthcare sectors can all be found in Sunnyvale, with other sectors sprinkled in. Healthcare and social services, construction, administrative and support services and retail are the leading industries. Among the city’s major employers are Texas Regional Medical Center, Dal-Tile and FedEx Distribution. 

Sunnyvale’s labor force stands at 4,828 employees among 484 establishments

To learn more, visit townofsunnyvale.us.

Clyde

If you have not already caught on to the vast number of small towns driving business in Texas, the City of Clyde should do just that. This small and highly charming town started with the building of a log cabin sometime around 1876 before people from Fort Worth would become the first to officially settle in Clyde.

A mix of public-private employers make up the business roster. A unique aspect of the city is that it is the opposite of what one would find in an unpredictable business environment. This city takes pride in the stability of its major employers and a quality of life-focused approach to business development.

Air, highway and rail access provide ideal logistics for companies seeking immediate access to multiple transportation options. Additionally, Clyde’s workforce and low operating costs support businesses looking for a competitive edge.

To learn more, visit clyde-tx.gov.

Paris 

Last, but certainly not least, is the City of Paris, a.k.a. “The Best Small Town in Texas.” Paris is where one can find that classic small town feel without compromising opportunities for business. 

Healthcare leads the industries in this town, with Paris Regional Medical Center and multiple outpatient facilities. The town’s 200-acre industrial park is another significant asset, offering several shovel-ready options. 

Served by the Kiamichi Short Line Railroad Co. and the host of Cox Field, Paris offers a variety of competitive transportation options, including multiple motor freight carriers. Looking for competitive wages and a skilled industrial labor shed? Paris has those, too.

To learn more, visit parisedc.com.

The post DISCOVER GLOBAL SITE LOCATION INDUSTRIES’ CHOOSE TEXAS COMMUNITIES appeared first on Global Trade Magazine.

Hawtex Development Corporation, a business development and consulting company with operations in Texas and Hawaii, has been working with American Patriot Holdings over the past several years to help in identifying and establishing market-ready locations for Mississippi River intermodal container facilities, with an initial focus on the Memphis and St. Louis regions. In the St. Louis region, the Herculaneum site that is already home to Fred Weber/RCP’s current port facility and adjacent to the parcel owned by The Doe Run Company emerged as the most advantageous site to develop a state-of-the-art intermodal container facility to serve this central Midwest region for both the export and import of containerized cargo.

“Through this new collaboration with our partners here in Jefferson County, Hawtex is looking forward to leading the development team for the planned facility on the Mississippi River at Herculaneum,” said James Hurley, President of Hawtex Development Corporation. “We will be leading discussions with RCP and The Doe Run Company principals to complete a comprehensive Development Agreement beginning early in the new year, and we will be meeting with and confirming service requirements for a number of St. Louis-based and regional beneficial cargo owners throughout Q1 of 2022. Our goal is to bring this facility to operating status in Q4 of 2024.”

The facility is in the early stages of development and the new partnership allows all parties to start planning efforts that enable final investment decisions. The total amount of the investment to be made at the new port is yet to be determined.

Sal Litrico, Chief Executive Officer, American Patriot Container Transport LLC (APCT), which is developing the patented new vessels that will carry the containerized cargo along the underutilized Mississippi, Illinois and Missouri rivers, also revealed at the event that APCT has issued a solicitation to seven US shipyards for construction of four of the patented container on vessels that will provide the new COV service, and an option for four more, another critical milestone in this initiative. The call for submissions was issued Dec. 14 and proposals are due at the end of February.

“The new partnerships being forged today and the advancements we’re making toward construction of the new vessels represent another huge step forward for this unique supply chain option that will reduce transportation costs for shippers by approximately 30 to 40%,” said Litrico. “The Mississippi River is ice free and lock free from the St. Louis region all the way south to the Gulf Coast, enabling us to bring our new vessels with the capacity to carry 2,375 20-foot long by 8-foot tall shipping containers right into the heart of the Midwest, and this new port facility will be developed specifically to be able to handle those vessels and containers.”

Mark Denton, Vice President of Fred Weber/Riverview Commerce Park, shared his enthusiasm for the proposed new service and the role that RCP will play in it.

“When Fred Weber, Inc. set out to start Riverview Commerce Park in 2013, our CEO, Doug Weible, told me that we would be handling containers here someday. While Doug has always had great foresight, I don’t believe even he could have envisioned what the APH team has put together with these amazing new vessels that will revolutionize the container shipping industry, not just in the Midwest, but throughout the world,” said Denton.

The announcement about the new Jefferson County facility follows news of other recent milestones met that are helping to move the new COV service closer to reality. In August of 2020, American Patriot Holdings LLC (APH) and Plaquemines Port Harbor and Terminal District (PPHTD) in Louisiana announced they had signed a letter of intent to develop a multimodal, state-of-the-art container terminal at its facility near the mouth of the Mississippi River, which would be the gateway port for the new COV service. APM Terminals North America was recently announced as the Container-on-Vessel terminal operator for the gateway port and is working with global shippers to integrate this proposed new logistics system with Midwest manufacturers and producers.

“The Plaquemines protected river port location and export/import market strength coupled with the strategic middle-America location of the Herculaneum port in the St. Louis region makes this a very unique supply chain offering for customers and our growth ambitions,” said Brian Harold, Managing Director of APM Terminals. “We look forward to working with all of the partners involved and with state and local leaders to ensure both ports are set up for long-term success.”

The Vessels & The Opportunity

The patented APCT vessels will be built in two sizes with the larger “Liner” vessel traveling between the gateway terminal in Plaquemines and the Mississippi River ports in Memphis, Tenn., and the new port facility in Herculaneum. The smaller “Hybrid” vessel will have a container capacity of 1,800 TEUs and is designed to move through locks and low-lying bridges on the tributary rivers, providing service from those two primary Midwest ports to feeder ports along the Mississippi, Missouri and Illinois rivers in the St. Louis region and other upstream ports, including ports in Kansas City and Jefferson City in Missouri and in Joliet and Cairo in Illinois and Fort Smith in Arkansas.

Both vessels are designed with a patented “Exoskeleton Hull Structure” designed to limit the vessels’ lightship weight to maximize cargo payload. The second patented feature is the “Minimal Wake Bow Structure” which minimizes hull resistance enabling upriver speed of 13 miles per hour with minimal wake.  Expected round trip times to Memphis is six days and St. Louis in 10 days, significantly faster than traditional barge tows. The vessels will also be environmentally friendly, utilizing LNG (liquefied natural gas) power, and cargo flexible with ability to carry a diversity of cargo, including refrigerated containers.

“Given the supply chain disruption we’ve seen over the past two years and the continuing congestion at the West Coast ports, there is no question that shippers need alternatives,” said Mary Lamie, Executive Vice President of Multi Modal Enterprises for Bi-State Development and head of the St. Louis Regional Freightway, which has been working to build relationships with other Midwest ports over the past few years to help advance the COV initiative. “This is a new option to transport freight. The state of Missouri and the St. Louis region already play a critical role as a reliever during supply chain disruptions and our freight advantages are fueling this new opportunity to elevate the Mississippi River and the Missouri River’s role in global trade.

The proposed new service will also be welcomed by members of the agriculture industry, who recognize that currently 50% of U.S. crops and livestock are produced within a 500-mile radius of the St. Louis region, including approximately 80% of corn and soybean acreage.

“Missouri’s river system is an invaluable means of transportation for our state’s number one industry – agriculture. This container-on-vessel service allows our supply chain to remain strong and reliable, delivering products in the most sustainable, efficient and cost-effective way to end-users,” said Gary Wheeler, Missouri Soybeans CEO and executive director. “As Missouri’s leader in agricultural exports, our organization and farmers have been involved and invested in American Patriot Holdings to move more product and aid the state’s economy and environment. Our soybean growers understand this immense value and is why we continue to devote dollars into modernizing our state’s infrastructure.”

To get more details on the new service or request a proposal, shippers can contact Sal Litrico via email at slitrico@americanpatriotholdings.com or phone at 813-924-9031.

The post PROPOSED CONTAINER-ON-VESSEL SERVICE TO THE ST. LOUIS REGION ADVANCES WITH NEW PARTNERS SIGNING ON FOR THE DEVELOPMENT OF A CONTAINER PORT FACILITY IN JEFFERSON COUNTY, MISSOURI appeared first on Global Trade Magazine.

It is one of the cheapest energy sources available in the U.S., in part because the U.S. houses a large portion of the world’s coal reserves. But coal also has other environmental and social downsides that have made it a less desirable fuel source. Mining and burning coal heavily emits greenhouse gases like carbon dioxide and methane and also poses risks of air and water pollution. Many policymakers and environmental advocates are now pushing for a transition away from coal for that reason.

Until recently, however, cost won out, and inexpensive coal was the predominant fuel source in the U.S., accounting for more than half of electricity generation in the U.S. up until 2003. Since then, dependence on coal has plummeted and currently accounts for only 19.3% of total U.S. generation. The swift decline in coal has been made possible as other cleaner energy sources have become less expensive. Natural gas has seen a major boom over the last two decades as techniques like hydraulic fracturing and horizontal drilling made it easier to extract. Renewable sources like wind and solar have also become less expensive and more widely adopted in recent years thanks to government investment and technological advances. As a result, the share of electricity generated from renewables has risen by two-thirds since 1990.

Some states that have traditionally relied on coal both as an economic driver and as an energy source have been slower to make the transition. The majority of coal production in the U.S. is contained to a handful of states, including Wyoming and West Virginia, and because coal is cheap and plentiful, these heavy coal producers are also among the states that generate the greatest share of electricity from coal and a lower share from renewables. In contrast, the states that depend more heavily on renewables either have governments that have prioritized clean energy and emissions reductions or geographic features that make them well-suited to wind, solar, or hydropower installations.

The data used in this analysis is from the U.S. Energy Information Administration. To determine the states most dependent on coal for electricity, researchers at Commodity.com calculated the share of total electricity generated from coal. In the event of a tie, the state with the greater total electricity generated from coal was ranked higher. Researchers also calculated the total and proportion of electricity generated from renewable sources. Renewable sources include solar, wind, geothermal, biomass, and hydroelectric.

Here are the states most dependent on coal for electricity.

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website.

The post States Most Dependent on Coal for Electricity appeared first on Global Trade Magazine.

Expanding a business beyond one’s domestic market requires long-term planning, utilization of complex global supply chains, managing risk exposures and being nimble enough to flexibly respond to changing market conditions.

The results of J.P. Morgan’s 2021 Business Leaders Outlook (BLO) survey highlight how leaders are adjusting to this new environment—and finding opportunities to grow globally despite the current challenges. 

In the survey, most midsize U.S. businesses are optimistic, even as they plan for continued unpredictability. Having learned in 2020 how to manage well remotely and deal with disrupted supply chains, U.S. business leaders are staying the course; global expansion plans remain at the same levels from pre-pandemic years. Most forecasts continued steady sales growth outside their home market. This indicates the confidence they have gained from pivoting throughout the year, including accelerating technology adoption, increased digitization of core processes and managing global ventures with much less in-person travel.

Ultimately, the rollouts of COVID-19 vaccines continue to be a core component impacting the global growth outlook for businesses. In addition, geopolitical events, new trade and investment policies and continuously changing business regulations will continue to challenge business leaders seeking sustained profitable international growth. 

Why Expand Globally in This Climate?

With issues such as labor shortages, severe bottlenecks in global supply chains and evolving customer expectations, it can be discouraging to consider international expansion at this time. However, according to the survey, executives remain optimistic. Those surveyed cited access to new customers/markets (72%), better opportunities to serve domestic customers with global operations (37%) and access to suppliers/materials (34%) as key reasons for expansion.

The pandemic will not deglobalize the business landscape. Business leaders have tried-and-tested remote workforces, seen governments become more flexible with business applications, and they have been leveraging new approaches and technologies to keep their business moving forward. In short, they have experience under their belt, have a long-term vision and see opportunity in international expansion—and are not letting the pandemic stand in the way. After all, adapting is what business is all about—and recognizing that extraordinary environments demand tailored strategies based on an accurate reading of market opportunities.

The World Has Changed: 3 Key Strategies for Navigating International Expansion

Developing Strategic Partnerships & Understanding Trade Policy

Trade barriers and tariffs were cited as the top international business concern for globally-active middle market companies in the 2021 Business Leaders Outlook survey. Complying with local regulations and the intricate differences in policy between nations can be overwhelming and time intensive. Any little error may lead to wasted time or resources, complications and added expenses. Developing strategic partnerships with businesses, banks and vendors—those who already have the local intel—goes a long way in effective global expansion.

The many cultural nuances and varying consumer preferences by country also benefit from local expertise. Furthermore, the insight around local competition and market opportunities is more easily obtained through these kinds of partnerships, especially when acting quickly is critical to success.

Increasing global political changes in recent years that are challenging the status quo require extra diligence in this environment. Additionally, the economic reforms under way in many developing countries are impacting both the volume and direction of foreign investment. We especially see this in China, India, Southeast Asia, Latin America and parts of Europe. For businesses navigating expansion in countries experiencing political and economic reform, it’s important to consider the impact these governments will have on fiscal, monetary, regulatory and foreign policy—and how significantly or quickly this may affect foreign investment opportunities.

As a positive example for businesses in North America, the United States-Mexico-Canada Agreement (USMCA) brought timely improvements to trade relationships in today’s volatile landscape. The USMCA has the potential to offer more certainty and a stronger safety net for trade and investment by promoting fairer trade and robust economic growth.

Investing in Technology & Digitization

Trade finance is the nucleus of the day-to-day global economy. It supports every stage of the global supply chain and ensures that buyers receive their goods and that sellers receive their payments. Yet the world faces a massive and persistent trade finance gap. The World Trade Organization estimated between 80% to 90% of global trade relies on trade finance, yet there was a $1.5 trillion gap between the market demand and supply before the pandemic. That gap has only increased since 2020.

COVID-19 accelerated a transformative period for trade finance, primarily through digitization. The global challenge with trade finance centers around inflexible business models, paper-based and tedious processes, regulatory constraints and outdated legacy systems. 

Technology can help bring down operational costs while also increasing efficiencies, encouraging new revenue opportunities, optimizing resources, enhancing the recruiting process … the list goes on. Businesses are investing heavily in digital transformation, with cloud-enabled technology becoming the new standard of operation. This brings immense advantages, including the immediate ability to access data and machine learning (ML) with virtually unlimited computing power, in a split second. The value of AI and ML can clearly be seen across business functions including trading, risk management, marketing and operations. It enhances outcomes by streamlining processes and increasing overall efficiency. 

Additionally, blockchain—a highly secure, decentralized digital record of transactions—offers a multitude of international trade-related applications, bringing high security, automation and traceability to important finance functions. 

Streamlining Supply Chains 

More than ever, managing global supply chains has become a critical skill for companies expanding internationally. Surging demand with various bottlenecks has disrupted global goods transportation and logistics. Gaining visibility over cross-border supply chains, while meeting profitability goals and evolving needs of customers, is an ongoing obstacle for most business leaders. Streamlining the global supply chain and focusing on visibility can lead to increased efficiencies throughout the entire production/solution life cycle. It entails optimizing processes by improving the accuracy of demand forecasts and schedules, and improving production lines to reduce costs. This can help make businesses more agile and profitable. Secure data integration is also critical, so information can be shared across channels swiftly and seamlessly.

While concerns around tariffs and trade barriers again led the list of business leaders’ global concerns in the 2021 survey, managing global supply chains overtook currency risk for the second spot. Instead of focusing on the next crisis-scenario—whether it be a pandemic, natural disaster or cyberattack—business leaders must continue their focus on making global supply chains more resilient for future disruptions.

The Road Ahead: Global Outlook Optimistic for Well-Prepared Business Leaders 

The overall global business outlook is optimistic, with 66% of leaders in the 2021 survey expecting their international sales to increase in the next five years. U.S. midsized, multinational businesses know that sustained growth requires access to new customers in new markets. That won’t change. However, today’s increasingly complex landscape will require greater investments in digitized products and processes, more customized local solutions in widely different international markets, and leveraging the expertise of reliable partners to understand the nuances of operating in challenging foreign markets. At the top of the list is having effective market entry and supply chain strategies, supported by a strong understanding of trade and investment policy to help shape your global market expansion.

______________________________________________________________________

Morgan McGrath is head of International Banking at J.P. Morgan Commercial Banking, where he is responsible for the global relationship management of clients headquartered in the U.S. and overseas. Throughout his career, Mr. McGrath has worked with a wide range of companies, financial institutions and governments in Europe, the Americas and Asia Pacific.

The post HOW TO NAVIGATE INTERNATIONAL EXPANSION DESPITE HEADWINDS appeared first on Global Trade Magazine.

As policymakers work to reduce emissions, natural gas occupies a unique position in the U.S. energy mix. In recent years, widespread adoption of extraction techniques like hydraulic fracturing have made natural gas cheaper to produce. This has made natural gas an economically viable, cleaner-burning alternative to other heavy-emitting fossil fuels like coal. But natural gas does still produce carbon emissions, and as clean energy sources like wind and solar themselves become less expensive, the future of natural gas is uncertain.

Progressive governments with a focus on reducing carbon emissions, like California at the state level and Seattle at the local level, have enacted new building codes to discourage or restrict the use of natural gas in new construction. Simultaneously, states that have benefited from the natural gas boom, like Texas, Oklahoma, and Louisiana, have banned municipalities in their states from enacting similar policies.

For now, the boom in production means that the U.S. is currently a net exporter of natural gas, producing more natural gas than it consumes. Production and consumption closely tracked together up until the mid-1980s, at which point consumption rose above production levels and natural gas imports increased. With the rise of fracking in the early 2000s, this trend began to reverse, and by 2017, natural gas production overtook consumption in the U.S., and the country became a net exporter.

But the greatest production increases have been limited to a handful of states. Texas has been a longtime leader in U.S. energy production due to its plentiful oil and natural gas reserves, and the state currently produces 8,288 trillion BTUs each year. Pennsylvania is a more recent beneficiary of the natural gas boom. Natural gas was difficult to extract in the state until horizontal drilling became common around 2008, but Pennsylvania quickly grew to become the second most productive state for natural gas. Texas, Pennsylvania, and other states that have reaped the economic benefits of expanded natural gas production may be most resistant to any transition away from natural gas as an energy source.

Beyond the interests of states that produce a high volume of natural gas, transitioning away from natural gas will also be difficult for states where natural gas is one of the primary sources of energy for consumers. Some states derive more than half of the energy they consume from natural gas, led by Alaska at 57.6%. These states will require affordable alternative energy sources at a wide scale before a transition will be possible.

The data used in this analysis is from the U.S. Energy Information Administration and the U.S. Census Bureau. To determine the states consuming the most natural gas, researchers at Commodity.com calculated total natural gas consumption per person. Researchers also included statistics on total natural gas consumption, the percentage of total state energy consumption derived from natural gas, and the percentage of total U.S. natural gas consumption accounted for by each state.

Here are the states consuming the most natural gas.

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/natural-gas-consumption/

The post States That Consume the Most Natural Gas appeared first on Global Trade Magazine.

To move forward with the expansion of your business into other countries in 2022, it is essential to consider the collective impact of all this disruption and its resulting changes to how global business can be done successfully. The good news is that consumer demand and spending have never been at a higher level around the world. The challenge is to focus your limited resources on the countries that have the highest potential return on your global business development investment.

What follows is a list of strategies to help with global business expansion, even in the extremely unprecedented times we are currently facing. 

Place immense care on where you plan to take your business. 

It has always been crucial to carefully choose which countries are optimal for new business ventures for your specific company and brand but coming out of the COVID-19 pandemic, it is even more critical to relook at all markets to understand what has changed in consumer trends and evaluate economic, political and regulatory changes for businesses in a specific country. 

Governments have enacted COVID-19 related policies and changed tax and foreign investment regulations. As in your home country, these changes have occurred at the national, regional and local levels and will not necessarily be the same as what has been implemented in the country you currently do business in.

Consumers worldwide have learned to buy online and have their purchases delivered. This impacts the entire sales process including retail brick-and-mortar locations. While online buying was present before the pandemic, it accelerated and became the norm in more countries over the past year and a half. Consumers can compare product prices and attributes online before making a buying decision. Marketing and product differentiation are much more critical to a business’ success today.

Cultivate your local partners, distributors and licensees wisely. 

It is important to increase the amount of due diligence when selecting partners because COVID has changed the structure, viability and financial status of most companies. It is essential to find out if who you will be doing business with has the infrastructure and financial resources you require to succeed in a country. 

Do not depend on just what you are provided by the company that wants to do business with you; seek third-party confirmation. This has always been important but given the mass shutdowns of businesses across the globe during the pandemic, it is even more important in today’s international business climate. Spend the money to be sure about who you do business with.

Be prepared to adapt to local culture and changing environments. 

More than ever, clear differentiation by country is essential for your business and brand to succeed. Sensitivity to local business and consumer culture is also a key component. 

Invest up front to learn whether the products and services your business offers fit the current market and project what will be needed to fit in and make money going forward. Expect menu changes, pricing variations, labeling and packaging adjustments, alternate marketing approaches and different costs to do business than here at home.

Given the supply chain disruptions that we continue to see across the globe, it is absolutely critical to work with your logistics specialist to understand the cost to ship products and the timeline for the shipment to arrive in the target country. 

Have strong senior management commitment and a proactive business plan for entering other countries. 

Taking a business into new countries is not typically an instant topline revenue venture, and there are numerous associated costs such as legal, supply chain, training, support and marketing investments to consider. Going global is a company-changing strategy that takes time and strategic planning. 

Devote ample time for developing a plan that projects expected revenue and expenses over time in each country you plan to enter. Note that the cost of doing business varies widely across the world. Labor, cost of goods sold, rent and utilities will be different from country to country. 

Embrace, invest in and implement technology to manage your global activity. The use of technology allows companies to communicate, monitor and manage operations across many time zones in real time and keep in-country training and support costs down. 

Finally, monitor respected international information sources daily to know what is happening in your target country. 

The one thing you can depend on is change coming out of the pandemic. Today, we have to monitor the flow of goods, trade agreements, local regulatory decisions and cross-border trade diplomacy constantly to be able to predict what to do and where to go to make money when doing business on an international scale. As the authority for U.S. companies doing business globally, the daily update at Global Trade Magazine is an excellent source of what is happening around the world.

Bottom Line: I see more global business opportunity than ever before in my career of covering projects across 50 countries. Ninety-five percent of today’s consumers are outside the United States. Two thirds of the new middle-class consumers will be in Asia. Products and services from western countries are highly regarded in emerging markets. With the proper preparation and constant monitoring, businesses with high-quality products and services can successfully penetrate other countries, even in times like these. While it is not an easy process, it can be done with the right strategy and hard work.

______________________________________________________________________

William (Bill) Edwards, CFE is CEO and global advisor at Irvine, California-based Edwards Global Services (EGS). He brings more than four decades of international operations, development, executive and entrepreneurial experience and has lived in seven countries. With experience in the franchise, oil and gas, information technology and management consulting sectors, he has directed projects on-site in Alaska, Asia, Europe and the Middle and Near East. Edwards advises a wide range of companies on early to long term global development of their brands. He can be contacted at +1 949 224 3896 or at bedwards@edwardsglobal.com.

The post 5 STRATEGIES TO EXPAND YOUR BUSINESS GLOBALLY, EVEN IN TRYING TIMES appeared first on Global Trade Magazine.

The USDA defines aquaculture as the farming of aquatic organisms, including fish, crustaceans, mollusks, and more. The farming process includes seeding, stocking, and feeding fish, shellfish, and other aquatic products in a controlled environment. The controlled environment makes aquaculture distinct from wild caught seafood taken from a natural habitat.

Aquaculture in the U.S. represents a $1.5 billion industry annually and helps support 1.7 million jobs in the broader seafood industry, according to estimates from the National Oceanic and Atmospheric Administration. These figures place the U.S. relatively low on a global scale as an aquaculture producer—17th in total aquaculture production—but the U.S. is one of the top consumers of aquaculture imports. More than 90% of seafood in the U.S. comes from outside of the country, and around half of that total comes from farm-raised seafood.

These products in the U.S. that generate the most sales fall in the categories of food fish and mollusks. Food fish—a category that includes any fish raised primarily for food, such as catfish, sturgeon, tilapia, trout, or salmon—accounts for nearly half of the market by itself, with $716 million in sales each year. Mollusks—which are marine invertebrates like clams, mussels, and oysters also commonly raised as food—follow behind at $442 million sold each year.

Naturally, a successful aquaculture industry depends on access to geographic features that support production. This means that some regions of the U.S. are more conducive to aquaculture than others. The South leads the U.S. in production, with nearly $850 million in annual sales from aquaculture. This can be attributed to strong production of freshwater fish, especially catfish, in the areas around the Mississippi River watershed, and saltwater production in the Gulf of Mexico and Atlantic Ocean. The West produces $475 million in aquaculture sales each year, primarily from Washington and California, which are leaders in shellfish production but also have strong saltwater and freshwater production of fish like trout, tilapia, and salmon.

The data used in this analysis is from the USDA’s Census of Aquaculture. To identify the states with the most aquaculture production, researchers at Commodity.com ranked states based on the total value of aquaculture products sold. Aquaculture products include food fish, sport fish, baitfish, and ornamental fish, as well as mollusks, crustaceans, and other miscellaneous aquaculture products. The total acreage by state reported in this study is the sum of freshwater and saltwater production (where available), and the most common water source is the water source characteristic of the greatest number of farms in each state.

Here are the states with the largest aquaculture industry.

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/aquaculture-production/

The post U.S. States With the Largest Aquaculture Industry appeared first on Global Trade Magazine.

The Glasgow conference reflected heightened urgency around climate change as the effects of carbon emissions have accelerated and become more severe in recent years. A 2021 report from the Intergovernmental Panel on Climate Change found that without rapid reductions in greenhouse gas emissions, warming above 1.5°C is almost inevitable. This level of warming would have disastrous effects in the form of sea level rise, more severe weather events, and harm to agricultural systems and human health.

While there is still much work to do, the good news for the U.S. is that many states and the country as a whole have begun to reverse the growth in carbon emissions. Government policy to limit emissions and advancements in lower-emission technologies across the economy have helped turn the trends in the right direction.

Much of this progress has taken place over the last fifteen years. Total CO2 emissions peaked in 2007 at over 6 billion metric tons, but that figure fell to around 4.6 billion metric tons in 2020. One of the big contributors has been decarbonization in electric power generation due to the decline of heavy-emitting coal and the rise of clean energy sources like wind and solar. Over the last decade, these factors have reduced CO2 emissions associated with electric power generation by around 36%. And this trend also contributes to emissions reductions in the main “end-use” sectors—transportation, industrial, residential, and commercial—that consume electricity. Residential and commercial have seen the sharpest declines, with emissions dropping by more than a quarter since 2010 across both sectors combined.

Encouragingly, these declines have taken place even while the U.S. population and economy have continued to grow. From 1970 to the mid-2000s, carbon emissions and GDP grew together, with the pace of GDP growth exceeding that of carbon emissions. More recently, the steady upward trajectory of GDP has continued while carbon emissions have ticked downward. Since 2007, total energy-related CO2 emissions are down by 23.9% while real GDP has increased by 17.7% in the same span. These trends help alleviate concerns that reducing carbon emissions necessarily means limiting economic productivity, and many U.S. states are proving that economic growth in a less carbon-intensive economy is possible.

The data used in this analysis is from the U.S. Energy Information Administration and the U.S. Census Bureau. To determine the states with the least carbon-intensive economies, researchers at Commodity.com calculated total CO2 emissions per GDP. States with a lower value were ranked higher. In the event of a tie, the state with lower per capita CO2 emissions was ranked higher.

Here are the states with the least carbon-intensive economies.

For more information, a detailed methodology, and complete results, you can find the original report on Commodity.com’s website: https://commodity.com/blog/states-carbon-emissions/

The post States With the Least Carbon-Intensive Economies appeared first on Global Trade Magazine.