If world events and economic instability have left business insecure, there is a light at the end of the tunnel: international trade, a well that is deep and one many small companies have dipped into, enabling them to grow in an otherwise stagnant marketplace.
Ralph Bocchini, vice president and regional trade manager for HSBC, was keynote speaker at the Rockland Business Association”™s luncheon at the IBM Palisades Center on Nov. 10. The 25-year international banking veteran said HSBC is partnering with businesses around the world, supporting them “at every stage of the supply chain and providing end-to-end financial support that benefits both business and suppliers.”
Imports and exports have always been part of business culture, but its significance has risen dramatically since the advent of the Internet. Bocchini said HSBC is committed to facilitate $750 billion of world trade by 2013, working with international businesses to open new markets and trade opportunities.
“I”™m not an economist, but it”™s my understanding the dollar will strengthen as a result of our political climate,” he said. “One thing is clear, for businesses looking to grow in this economy, you must begin to think beyond your borders.”
As a result of its growing shift to the global marketplace, HSBC is selling 196 of its retail branches in New York and Connecticut to First Niagara Bank, headquartered in Buffalo. The sale will make First Niagara one of the largest regional financial institutions when the $1 billion deal is finalized in early 2012.
“The region is made up of many small businesses, and as such, they are better served by community banks,” Bocchini said. “This sale to First Niagara will give the Hudson Valley region another strong community bank to do business with.”
Bocchini encouraged business owners to conquer their fear of exporting. “Don”™t let one bad experience deter you. There are a variety of free services to help expand your business beyond your own borders ”“ Empire State Development and the U.S. Department of Commerce, to name a few ”“ that have the tools to help you expand your business and take advantage of the global marketplace.
“Hiring an international trade salesperson for your staff is in your best interest,” he said. “A college student studying international trade can intern and is a very valuable asset to a small business. There are many small companies here in the Hudson Valley doing this and it”™s working for them.” For those seeking to broaden their horizons but are lacking in working capital, trade credit insurance “may be an ideal financial option,” Bocchini said.
HSBC is predicting world trade to grow by 73 percent over the next 15 years, but it will see slow growth of approximately 2 percent until 2015 as a result of the recession.
It also anticipates that Egypt, India, Vietnam, Indonesia, China and Brazil will be the international powerhouses driving world trade growth through 2025.
“Research also shows business around the world believe China will continue to be a source of key trading opportunities over the next six months, with Latin America, Southeast Asia and the Middle East also featuring strongly,” Bocchini said.
