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American franchises

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What are the Hot U.S. Export Metro Markets? A Report by the International Trade Administration

Metro Exports Continue to Rise in 2012

July 11, 2013 – ITA Blog

Reblogged courtesy of Ray Hays, Member of Arizona District Export Council
 
Five metro areas achieved more than $50 billion in 2012 exports.

Natalie Soroka is an economist in the Office of Trade and Industry Information within the International Trade Administration where she focuses on international trade statistics and trends.

Five metro areas achieved more than $50 billion in 2012 exports and ten surpassed $25 billion.

After hitting new highs in 2011, exports from U.S. metropolitan areas continued to increase in 2012, with 170 of the 370 metro areas with available data reporting record-high merchandise exports.

Houston-Sugar Land-Baytown, TX topped the list as the largest metro exporter in 2012, shipping $110.3 billion of goods abroad.

Overall, many areas saw continued growth in 2012, with exports increasing in 220 metro areas from the previous year.

The Seattle, WA area saw the highest dollar growth in 2012, up $9.2 billion from 2011. Other areas showing high dollar growth included:

  • Detroit-Warren-Livonia, MI (up $6.0 billion),
  • Houston-Sugar Land-Baytown, TX (up $5.8 billion),
  • Miami-Fort Lauderdale-Pompano Beach, FL (up $4.7 billion),
  • and Washington-Arlington-Alexandria, DC-VA-MD-WV (up $4.4 billion).

While large areas like Houston, New York and Los Angeles contribute greatly to the value of exports from metropolitan areas sent around the world, exports are an important economic driver in smaller markets, too. In 2012, 153 small metro areas exported more than $1 billion of goods. Of these metros, exports from Bloomington, IN exceeded $1 billion for the first time in 2012.

Viewing exports from the metropolitan perspective is important, as these are concentrated areas for industries and economic activity. In 2011, 22 metropolitan areas represented more than 40 percent of their state’s total merchandise export activity.

One such area in 2012 was Miami-Fort Lauderdale-Pompano Beach, FL, whose $47.9 billion in exports accounted for 69 percent of Florida’s total goods exports that year. Aerospace products and parts accounted for the largest share of Miami’s exports, amounting to $4.8 billion in 2012. Other top export categories from Miami that year were computer and peripheral equipment ($4.1 billion) and communications equipment ($3.5 billion).

Of the metro areas in Florida where data is available, 11 MSAs reported increased exports in 2012, led by increases in Miami, Lakeland, and Orlando. On the local level, areas often benefit from geographic proximity and economic or cultural ties to a particular country or region. In fact, Latin American partners dominate Miami’s exports.  Miami exported $18.3 billion of goods to South American markets in 2012, led by Miami’s top market: Venezuela ($5.6 billion). Other top Miami markets in 2012 were Colombia ($2.8 billion), Brazil ($2.6 billion), Mexico ($2.1 billion), and Chile ($2.0 billion).

Miami was also the top exporter to the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) region in 2012, exporting nearly $5.0 billion to this market in 2012, more than a quarter of which (27 percent) went to the Dominican Republic. Miami actually exported more to the six CAFTA members than it did to either the EU or our NAFTA partners.

While it’s too early to determine any effect from the new free trade agreements with Colombia and Panama, in 2012 Miami was the second largest metro exporter to both of these regions, indicating that it stands to benefit from increased trade with these markets in the future.

This data displays the importance exports are to not only our national economy, but to local economies throughout the country. Exports strengthen local economies and create millions of jobs.

In 2012, exporters reached an all-time record of $2.2 trillion in U.S. exports, supporting 9.8 million jobs. The Department of Commerce has collaborated with the Brookings Institution Metropolitan Policy Program in order to create the Metropolitan Export Initiative. This initiative’s goal is to promote exports and investments in metropolitan regions through localized export plans.

Beginning with the release of 2012 data, information on exports by county and 4-digit NAICS industry codeare available for the top 50 U.S. metro areas.

Visit ITA’s Metropolitan Export Series homepage for more information on metropolitan area exports, including datafact sheets for the top 50 exporting MSAs in 2012, an overview of U.S. Metropolitan Area Exports, and the U.S. Trade Overview with new regional spotlights.

Reblogged courtesy of Ray Hays, Member of Arizona District Export Council.

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International Franchises Targeting the U.S. Market

Entrepreneur Magazine April 2012 article, “They’re Coming to America” features interview of Ray Hays

A couple years ago, this blog featured the following articles on the trend of international franchises targeting the U.S. market:

Is Franchising the Last Bastion of American Business Leadership?

International Franchise Invasion: The Looming Battle for the U.S. Market

A new Entrepreneur Magazine article studies this new trend, some examples of foreign franchisors in the U.S. market, and the barriers to entry to for international franchises wishing to launch into the U.S. market. The article quotes Ray Hays, author of this blog, in addition to franchise owners involved in this trend.

Enterpreneur Magazine Apr 2013 article_Page_1
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Franchise Today Radio Interview of Ray Hays

Franchise Today INTERNATIONAL FRANCHISING… Taking your brand global.

Is your franchise concept ready to go international?

What are the pitfalls of launching your international franchise program?

What are the resources and budget requirements to launch a global franchise expansion program?

Join Ray Hays, as he discusses these questions and more with Franchise Today radio hosts Paul Segreto and Joe Caruso. Click here to listen to interview taped October 13, 2011.

Is Franchising the Last Bastion of American Business Leadership?

By Ray Hays

Blog: www.rayhays.com

 American concepts have historically dominated the franchise sector on a global level. During the late 20th Century, franchising, along with Hollywood, played a pivotal role in the projection of the American culture and brands. We can find McDonald’s from Moscow to Melbourne, Curves fitness centers from Caracas to Cape Town. The domination of American franchises seems all but unstoppable.

 However, a few decades ago, a quiet insurgency emerged in the form of non-U.S. franchise concepts. The manifestation of this rebellion can be seen in four concurrent trends:

 1.       Boom of national “home-grown” franchises outside the U.S. –

  • In Belgium, Mister Minit began franchising in 1964 and became the leading franchise in Belgium, and an early European franchise leader.
  • In Japan, Family Market launched in 1981 in direct competition to 7-Eleven.
  • In Spain, Telepizza launched in 1987 and quickly dominated their national market

2.      International expansion of non-U.S. franchises –

  • In the 1980’s the international expansion of Italian franchisor Benetton made it a household brand in over 100 countries.
  • During the 1990’s India’s NIIT training franchise entered about 40 new countries.
  • In 1998, the Spanish nutrition franchisor Naturhouse began international expansion, quickly entering 18 countries into the 2000’s.

 3.      Entry of foreign franchises into the U.S. –

  • UK-based The Body Shop expanded quickly in the U.S. franchise sector in the 1990s.
  • Established in 2001, Argentina’s ProntoWash car wash franchise quickly entered the U.S. market in 2002.
  • Founded in Australia, Cartridge World entered the U.S. in 2003 and has nearly 600 U.S. franchises today.

4.      Foreign acquisition of U.S. franchise brands –

  • The U.K.’s Bass group acquired the leading U.S. budget hotel brand Holiday Inns in 1988.
  • In 1991, a Japanese franchisee acquired controlling shares of the 7-Eleven parent franchisor.
  • In 2009, French multinational Sodexo acquired the second-largest U.S. senior care franchise, Comfort Keepers.

Despite the foreign franchise insurgency, the U.S. position remains pre-eminent in the franchise sector, at least for now. This U.S. dominance is even seen in the home markets of highly developed European franchise concepts.  According to the website Franchise Europe, of the top 100 franchises represented in Europe (in number of locations), 34 are American-owned franchises. Interestingly, if you compare the top 500 franchises in Europe, only 45, or less than 10%, are American franchises.

This suggests that the U.S. is leading the pack at the top of the European market (about 1000 units or more), but European concepts dominate their markets among the medium and small franchises under 1000 units. Similar trends are seen in other global regions as small international franchises enter the market.

Think about it. Franchising is a unique sector in which U.S. companies continue to dominate on a global scale. U.S. franchises have not given up significant market share to foreign companies, at least compared with the American auto industry, financial sector and increasingly, the IT sector.

In short, the U.S. has maintained its competitive advantage in the franchise sector for more than 50 years. This might be attributed to American innovation or perhaps the marketing power of American brands. However, the advance of the non-American franchise concepts continues.

 What do you think?

  • Can the U.S. maintain its domination of the franchise sector?
  • Will we see more foreign-owned franchises on Main Street America?

My next article will touch on the second question:

What are the facts around foreign franchises entering the U.S. market, and can they succeed on the American franchisors’ home turf?