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Time to Get Off the Pot on Exports

by Richard Cole
April 16, 2010

I am not entirely sure I understand what I heard at a recent conference in Lansing. I know I did not get the full meaning. One thing is sure. We live in a shrinking world. I got that. And we are not taking advantage of it.

My day job is at Michigan International University. Perhaps you’ve heard of that?

I do research with international faculty members. We teach international students. (My graduate PR class has 45 students — 28 from China or Taiwan.)

My department has a study abroad program that exports U.S. students to Rome each summer. We have a “study on-board” program that imports Italian students. That’s small potatoes in the overall scheme of things. I get reminded of that periodically. But I am also reminded that my beloved MIU constantly advances knowledge around the globe, as it does for thousands of international students who walk our campus every day.

So why was I surprised at what I heard at the university-sponsored forum called “Michigan’s Economic Turnaround: Thinking Globally,” April 14 in Lansing?

That, my friends, is a wonderful question. Why was I surprised that…

• Michigan exports $60 billion in merchandise (depending on how you count “exports”) and billions of farm products each year?
• More than half of our manufacturing-related export output (perhaps $25 billion) goes straight to Canada?
• The best beans in Mexico come from Michigan, as do 60 percent of the U.K.’s baked beans? That’s right. Musical fruit from the land of Motown.
• The list goes on. What concerned me was that so much of this was news. It shouldn’t be.

Our state economy is dependent upon a robust export trade, no doubt. But we don’t act like it. In fact, if you heard the panelists at the seminar, you’d think we don’t give a damn about exports.

Rep. Ed Clemente heads up the House Committee on the New Economy and Quality of Life. He said one southern-state expert told him that if Michigan doesn’t get a mass transit system in place by 2025, “we won’t even be on the world map.” Ed believes that. That concerns me. He’s a smart guy. I don’t like the idea of Michigan as “third-world.”

Despite our manufacturing and agriculture prowess, I think we may import more than we export. I know we export more talent than we import. I see that every day as the majority of my students graduate and hit the road. Ed says we have fewer and fewer foreign nationals who want to stay in the state.

Jim Byrum heads up an ag-business group that focuses on exports. He also was a panelist. In case you have never thought of this, beans must be moved to ports to be exported. Byrum describes the evaporation of our rail system as a developing catastrophe for the agriculture exporting game. “China is building rail. We are tearing ours up.”

Ed and Jim agreed that our state economic development agency doesn’t have the funds to coordinate foreign contacts for state businesses hoping to export more products. Byrum said he has several European companies itching to import more Michigan farm products. Yet the governor’s operation wasn’t able to get it together to connect her with these prospects so she could close these easy deals for Michigan on her most recent overseas trade trip. So many beans and so little time, you say?

These issues are manageable.

MIU (MSU) has one of the largest and most robust alumni networks in the world. Maybe we should begin to look at these alumni as ambassadors — willing spokespeople for our state. While they are here, we should give them ammunition they can use to help us regain our edge. That’s doable.

Figuring out how to coordinate international treasure hunts isn’t rocket science, either. Maybe MIU should take this project on. Somebody has to do it.

Getting Michigan to stop tearing up more track than we are putting down seems like an obvious goal to facilitate exporting. So does building a new bridge to Windsor.

It’s time for movement on exports, you say?

So what’s the hold-up?

Well, there’s always plenty enough gloom and doom about the state’s economy to go around. But when are we going to quit looking for excuses?

The U.S. Department of Commerce tells us that roughly 12,000 Michigan businesses, most with fewer than 500 employees, depend upon exports for their livelihood.

Maybe it’s time we figure out where these Michigan export businesses are. Once we figure out where they are, we can remind them that a competent and well-funded public sector — state government and universities working hand-in-hand — might go a long ways toward giving Michigan the upper hand it needs to take a solid merchandise and agriculture international export program to the next level.

In addition to serving as professor and chairperson of the Department of Advertising, Public Relations and Retailing at Michigan State University, Richard Cole is co-founder of Michigan’s Next Governor Project (see August Dome feature).The opinions expressed reflect his individual viewpoint and not that of the university.