CHICAGO – Gov. Rod R. Blagojevich today announced Illinois’ export figures continue to show impressive growth with more than $42 billion in exports reported for 2006, a 17.3 percent increase from 2005, according to data released from WISER, the World Institute for Strategic Economic Research, who compiles its information from the US Census Bureau, Foreign Trade Division.  This represents the largest dollar figure increase in a single year.  Illinois is also now the fifth largest exporting state in the country, which is its highest ranking ever.  The Governor also highlighted the work of the Illinois Department of Commerce and Economic Opportunity’s Office of Trade and Investment (OTI) in helping Illinois companies grow their businesses by pursuing overseas markets. 

“The world stage is the future of the Illinois economy, and it’s clear that our businesses, both large and small, are taking advantage of the tremendous opportunities that exist overseas.  By exporting more goods, we are creating better jobs for more people here at home.  This dramatic increase in exports is another important indicator of the strength of Illinois’ economy, which is only going to get stronger as we continue helping even more Illinois companies pursue new markets across the globe,” Gov. Blagojevich said. 

Illinois’ exports for 2006 represented a more than $6.2 billion increase from the same period in 2005.  In 2005, Illinois’ exports increased almost 19 percent, a $5.6 billion increase.  Illinois is the fifth largest exporting state after Texas, California, New York and Washington and had the second largest percent increase among the other states in the top eight.  Since 2002, Illinois exports have grown by $16.4 billion, a 64 percent increase.  Direct exports amounted to approximately 6.4 percent of the Gross State Product (GSP) in 2005.  Top countries for Illinois’ exports are Canada, Mexico, the United Kingdom, Japan, Australia, Germany and China.  Top sectors include machinery, chemicals, computer/electronic products, transportation equipment, electrical equipment, and food and kindred products.

OTI offers a variety of export development assistance programs to help Illinois companies identify new markets and locate distribution channels for their products and services abroad, including trade missions to targeted foreign markets.  Trade missions provide small and medium-sized companies in Illinois with an avenue to export their products and services by directly engaging foreign buyers, agents, distributors and/or joint-venture partners and providing additional in-country support.  Under Gov. Blagojevich, OTI has led 42 foreign trade missions, with 8 planned over the next six months.  This total is more than any previous single administration.  These missions have hosted more than 200 participants and have included trips, often multiple times, to countries such as Australia, Canada, Chile, China, Germany, India, Israel, Japan, Mexico, Poland, Spain and South Africa.

Through the Illinois Entrepreneurship Network (IEN) and OTI’s nine international offices, small and medium-sized businesses can also receive counseling and technical assistance in exporting their goods and services.  The Illinois Trade Centers (ITC) and NAFTA Opportunity Centers (NOC) offer expertise and assistance with all facets of exporting with specialists who work one-on-one with new-to-export firms.  There are six ITC’s and two NOC’s statewide.  Through all of these efforts, almost 11,700 client companies have been served since 2003, which have reported an estimated $803 million in export sales since receiving this assistance.
 
Here are examples of Illinois companies who have greatly benefited from OTI’s services:
E. Formella & Sons, Inc., is a Woodridge-based manufacturer of high quality Italian style specialty condiments, including pizza topper, hot and mild olive muffuletta salad, hot and mild eggplant salad and giardinera mix.  The company participated in the Canadian Food and Beverage Show in February 2006, held in Toronto, which allowed them to showcase their products to more than 9,700 food and beverage industry decision makers who attend the trade show annually.  As a result of the mission, the company is now selling their products in Canada for the first time, where sales have gone from zero to $25,000 so far. (Kathy Formella – 708/598.0909)Lincoln Diagnostics, Inc., based in Decatur, produces allergy skin testing devices of the highest quality and effectiveness, and is the established leader in disposable skin test products.  Working together with OTI’s Western Europe Office based in Brussels, the company has displayed its products at MEDICA, Europe’s largest medical device show, for the last two years.  This has allowed the company to secure three distributors for the markets of Norway, Sweden, Denmark, Finland, Hungary, Czech Republic, Slovakia, Romania and Isreal.  As a result, the company anticipates doubling its exports to Europe in the coming year. (John Lenski – 217/877.2531)Octagon Resources International, LLC., located in Bartlett, is a provider of scrap metals (ferrous and non-ferrous) and steel products in coils, sheets and plates to steel service centers and original equipment manufacturers.  Octagon was a new to export company when first meeting with OTI last year, who helped the company set up matchmaking appointments in China, Taiwan and India.  As a result, the company was able to secure several customers, with export sales reaching $650,000 to Taiwan and $500,000 to China so far. (Mary Bullock – 630/497.1097)

ProMark Associates Inc., based in Skokie, is a global provider of indoor air purification products for the industrial and commercial markets.  The company’s Total Spectrum air purification system not only eliminates pollutants, but saves energy costs.  ProMark participated in the 2005 trade mission to Santiago, Chile, where it was able to meet with end users in the copper mining industry and secure representation.  Sales to Chile are expected to exceed $50,000 in 2007.  Additionally, the company has worked with OTI’s Latin America Trade Office in Mexico City, which supported ProMark’s efforts in securing a contract for filtration equipment for refrigerators, resulting in sales of more than $200,000 over the past several years.  ProMark now has representation in Mexico and has secured business with Pemex, Mexico’s state-owned refinery, where sales are expected to reach $50,000 to $100,000 in the coming year. (Bernice Valantinas – 847/676.1894).

Schafer’s Fisheries is a family-owned corporation located in Thomson and Fulton, and is the Midwest’s largest processor and wholesale distributor of fresh fish and frozen seafood, including smoked catfish, smoked carp, smoked salmon, halibut and walleye.  The company participated in the trade mission to the Canadian Food and Beverage Show in February 2005 in Toronto, where it was able to meet directly with potential distributors and customers.  As a result of the mission, the company established several business contacts in Canada, who it ships to on a quarterly basis.  This has allowed the company to grow exports by 20 percent in the region.  (Michael Schafer – 815/259.4300).

“Gov. Blagojevich and I are very excited about Illinois’ continued export growth.  As we help more Illinois companies advance their international trade efforts, we will continue to grow our economy and create more jobs,” State Senator Martin Sandoval, Chairperson of Commerce and Economic Development Committee, (D-Chicago) said“Gov. Blagojevich and I cannot overstate the need to help companies across Illinois get more business by reaching new markets and finding new customers around the globe.  This new data is great news that will lead to even more economic growth and job creation in the future,” State Representative Susana Mendoza, Chairperson of International Trade & Commerce Committee, (D-Chicago) said.

OTI is also working to attract essential Foreign Direct Investment (FDI) to Illinois through a host of promotional activities, including FDI seminars and reverse trade missions.  There have been 40 FDI seminars in the past year alone, which have included China, India, Israel and Japan.  Illinois currently ranks fourth in the nation in foreign direct investment, which is up 14 percent in the last five years, according to the Organization for International Investment.  Through strategic promotional seminars overseas and domestically, OTI is continuing to establish foreign investment in Illinois and helping to create more Illinois jobs. 

“Gov. Blagojevich and I understand the need for opening new markets for Illinois businesses, which allow them to cultivate important partnerships all over the world.  We are encouraged by the tremendous success Illinois is having on the global stage and are committed to continue opening new doors and identifying new opportunities for Illinois companies to grow and expand,” Illinois Department of Commerce and Economic Opportunity Director Jack Lavin said. 

      
For more information on all of OTI’s programs, please visit www.illinoisbiz.biz/dceo/Bureaus/Trade/

For more trade statistics and information about WISER visit www.wisertrade.org