MWTA Presidents Message - September 2009

By: John Pinkstone

Are we finally looking at a light at the end of a long tunnel or is it an oncoming train?

The world’s economic journey over the last 12 months has certainly been memorable, and it’s not over yet.   It’s being described as the worst recession since the 1930’s.  We’re seeing the highest unemployment levels since the recession of the1990’s possibly 1980’s - at the time of writing unemployment is 9.5% and rising. The automotive, manufacturing, medical and finance industries are in disarray. Even Wisconsin dairies are feeling the pinch, as global demand for milk has shrunk.  We see the knowledge economy is under threat and protectionism is rising, as countries defend their national interests.

But despite these challenges, the Milwaukee World Trade Association has had an extremely successful year. Under the Presidency of Richard Chung, our program of monthly educational events, dinner speakers, site visits and social gatherings has brought together the local business community. I’m sure you all join me in thanking Richard for his leadership over the last year, and in furthering our mission to provide practical resources to expand Southeastern Wisconsin’s role in the international market place.

Some of the highlights of the last year for me include learning about the challenges and opportunities of GE’s Foreign Exchange Risk Management; sneaking a peek into the changes that may affect global trade through a new team in the White House at the Past Presidents Dinner in December; and understanding more about the challenges of Mergers and Acquisitions in the current business climate.

I’m sure you’ll agree that our 45th Wisconsin International Trade Conference was a great success, with visitors from Chicago to Qingdao.  The presentation to the ten Export Award Winners, and a global review focused on the year of the Ox, suggested to us that a “steady, calm and dependable approach” would help companies survive the turbulent waters we are still passing through.

Continuing our international journey together

Since joining the MWTA in 2004, I continue to gain insights into the International challenges and opportunities that the Wisconsin business community faces.  This helps me better understand my client’s needs as part of the Worldwide Sales team for FedEx Services.  Globalization is not a new concept, but one that we have learned is always changing.   Staying engaged and understanding our client’s needs at the global and local level naturally widens our opportunity to develop new products and to be innovative in providing sustainable solutions.

I am excited to serve you as President this year and I’m committed to furthering the development of the MWTA by arranging a program of events that you’ll find informative, thought-provoking or just plain fun, including:

• Enjoying international culinary delights at our Ethnic social get together at Potawatomi’s beautiful Tribal Room in September
• Taking a strategic look at entering new markets in regions of the world that are normally overlooked, through our educational program
• Welcoming dinner speakers Steve Rettler, SVP Corporate Development, from AO Smith in October, and Rick Graeber, Reinhart Boerner Van Deuren, former Ambassador to the Czech Republic to our Past Presidents Night Dinner
• Encouraging lively debate through book club – our next book is Fareed Zakaria’s best seller, The Post American World

Is there a silver lining in sight?

There are signs of improvements in the global and local economy.  Stockmarkets, home sales and consumer confidence are all showing the gradual improvement typical of turning points.  Global manufacturing expanded in June for the first time since May 2008 according to a global purchasing managers index compiled by JP Morgan.

Closer to home, there are many positive signs of our economy improving.  Wisconsin firms set a record last year by exporting $26.6 billion an increase of 9%.  Wisconsin now ranks as the 17th largest exporting state compared to 21st in 2006.

Oil can be replaced but substitutes for fresh water may never be possible.  With the announcement in April 2008 that the city of Milwaukee and the Milwaukee 7 Water Council have become members of the UN Global Compact Cities Program this will further focus opportunities on this limited resource and have the potential to lead to ever more opportunities in the Wisconsin area.

Finally, after a long competitive bid, Oshkosh Corp was recently awarded a $1.05 Bn delivery order to supply their new M-ATV to US Soldiers and Marines.  This is a next generation vehicle that will replace the Humvee, which has not been able to adapt to the mountainous conditions of Afghanistan.  It is very exciting to see yet another successful product development from a Wisconsin company, especially when considering the current challenges being faced by other manufacturers in the auto industry.

America is famous for overcoming adversity and innovating through necessity to create new solutions.  Despite the doom and gloom of the past 12 months, globalization is not dead and capitalism is not finished.  They are both evolving with more inventors, producers, buyers, sellers and consumers in an increasingly interconnected market place.

By joining the MWTA you are helping to play your part in this tradition of collaboration that helps us learn and grow from the strengths of one another.  Our programs teach about new international markets, new approaches to doing business and furthering your network at home and abroad.

We appreciate your ongoing support and trust you see the value this association brings in both bull and bear markets.  I believe through cooperation within our association and with its partner organizations, it’s light that we see at the end of the tunnel, not a train heading our way.

“Forward Wisconsin”

John Pinkstone, MSc Westminster, BA (Hons) London, FRGS,

President MWTA 2009 – 2010