Canada-U.S. Trade with Tim Tierney, State of Vermont Department of Economic Development | Rothwell, Figg, Ernst & Manbeck, P.C.
The Fedtrade® Podcast recently interviewed Tim Tierney, Director of Business Recruitment and International Trade at the Vermont Department of Economic Development. The mission of the Vermont Department of Economic Development is to improve the economic well-being of Vermonters by fostering growth, opportunity, and innovation. Their work connects businesses and organizations to critical resources including financing, workforce development, and market expansion, with the goal of cultivating high-quality jobs and expanding the state tax base.
Learn more about the Vermont Department of Economic Development on their website or follow them on LinkedIn. Connect with Tim on LinkedIn.
Key Takeaways:
- Vermont focuses on recruiting small to medium-sized enterprises from Canada and Northern Europe.
- Vermont has a strong and long-standing relationship with Canada which could be affected by the impending tariffs.
- The SelectUSA Investment Summit is a key opportunity for attracting foreign investment.
Listen to podcast here.
[a copy of the written transcript is here]:
Hello, welcome to Fedtrade®. I’m James Hastings of Rothwell Figg. Joining us on the podcast today is Tim Tierney, Director of Business Recruitment and International Trade at the Vermont Department of Economic Development. Tim will share the benefits of locating a business in Vermont and why foreign direct investors and innovative companies seek out Vermont as part of their U.S. market entry strategy. Tim, welcome to Fedtrade®.
It’s my pleasure, Jamie. Thanks for having me today.
Tim, what is the International Trade and Business Recruitment function at the Vermont Department of Economic Development?
It’s basically twofold. We’re a very small state, a small department, and even a small division within the Department of Economic Development. Primarily we work with exporters of Vermont to access new markets. And actually, my role as Business Recruitment Director was created seven years ago, and it is to bring and recruit businesses from outside of Vermont into Vermont to help grow our economy, grow our employment, and our grand list, among a variety of other things. So those are our main functions right there- exports, imports, and foreign direct investment.
Now with regard to companies who are seeking to do business in Vermont, are there particular geographic regions that are more prevalent in terms of their interest?
Well, it’s obvious that we mainly recruit from Canada, specifically the Quebec province, which is our fertile ground to have folks cross over into the U.S. market, expand their business into the United States. And also we have a long tradition with Quebec and a lot of folks here have a Québécois and French background and a long tradition and history of doing trade with that border. So that is primarily where we do focus because it’s actually very easy for them to come across and grow and they can return back to where they’re from that day or move things across the border quickly. And then also we do a lot of work in Northern Europe as well. Germany, Switzerland, and Scandinavia, and the UK and Ireland are other places that we tend to focus on because of a variety of factors. That is where we spend most of our time.
Speaking of U.S.-Canada trade, tariffs are in the news.
Tarrifs were in the news a lot yesterday. Yesterday was quite the day. Obviously, it really brought up how important that bilateral trade is. And Canada is our largest trading partner, and I think, for 36 states in the United States. And what Mexico means with the products that come here and what free trade means to us and also our supply chain and so many different factors. So yesterday was a very interesting day and it looks like we have a month freeze and then looking at the importance and the impacts of potentially what these tariffs could have. And I think that was the hard thing. It was a wait and see factor. People don’t know. But I think we’re trying to inventory what those impacts will have on our businesses in Vermont. Obviously tourism is a large business here too. And we consider that and that’s an important factor. So you don’t want to weaken the Canadian dollar, therefore they’re not traveling to Vermont. So, there’s so many factors and so many ripple effects, both positive and negative. But I think, sounds like for a month or so we can actually go and reflect on how important this trade relationship is specifically with Canada, but again, Mexico too.
What are some of the characteristics of what makes a good fit for an international company seeking to do business in Vermont?
Well, as you know, Jamie, we’re a small state and we’re also a very environmental state. We are also the highest quality of life state as well year after year. Vermont is a great place to live, work and play. But that being said, we’re obviously not going to be looking for very large corporations to come here. We don’t have the workforce and the housing, which is our biggest priority right now to house a large workforce at this present time. So we’re looking for small to medium sized enterprises that want to expand into the U.S. market and Vermont is a great place for a soft landing. What I mean is that we have very accessible legislative and policy makers. People, all through regulatory, political and social aspects, we’re very accessible and everyone’s one phone call away. We know the right people. And I think our support levels are higher than other states because of our size. We want people to succeed here and grow here. So people go out of their way to make sure that their company, their business, their employees, and their culture is doing well. So I think that’s one of our greatest strengths. And obviously we’re a state just like California with basically all the same infrastructure and functions as a large state, but we’re a small state. We’re probably easier to deal with because of our size, I think is the key factor.
You had mentioned the term soft landing. What is that in relation to U.S. market entry strategy?
Yes, you’re coming here and we’re going to make it very easy for you to access legal, regulatory, political realms that will make it easier for you to succeed here. So the soft landing, so to speak, is that you get here and you’re going to have a very large support group who are actually helping you with a variety of things, no matter what it is. To either create that building, find a building, have a site. It’s not sink or swim in the American market. I mean, this is going to be a good place to come and to grow. And with easy access, I think is another thing. You’re accessing further markets in the United States is another reason why you want to come here. So it’s an easy place to come and start to grow your business and enter that U.S. market.
Depending on the sector, all companies have legal and regulatory compliance requirements that they must meet.
Correct. And yes, and then that’s where there are clusters involved with no matter what the industry is. And so we actually connect them to people in those clusters to help them navigate. And I think that’s a good term. We help these people navigate through the morass or regulation, whether it be legal or taxes, you name it. There’s someone there to help them through the process so that they do well.
Are there any innovation or high-tech sectors that Vermont is known for?
We have a lot of successful factors. Because of our proximity to Montreal, which is the third largest aerospace and aeronautical hub in the world, we have a lot of aerospace. We have a lot of folks in that realm and precision tool making and advanced manufacturing. They’re small, but they are high quality. There’s a lot of interest in that one. Obviously renewable energy, electric vehicles. One of our leading companies is Beta. It’s a manned plane that’s vertical takeoff, but it’s electric and they’re way ahead of the curve. They’re a very fast-growing company, a very exciting company. And we’re very excited about what kind of supply chain they’re building as well. A lot of people don’t know that our largest export is semiconductors and microprocessors here in Vermont. It has been since IBM came here in the early days because the owner loves skiing in Vermont. But that is a very important part of our economy and the majority, almost 90% of our exports are microprocessors.
Interesting. What types of financing or other business support services are available to international companies wishing to do business in Vermont?
There’s actually quite a bit. We have some regional banks that we have very close relationships with here in Vermont. Some started here in Vermont, and they’re very supportive of growing Vermont. We also have a quasi-governmental organization, the Vermont Economic Development Authority, that provides low interest loans and provides capital or gap funding. We know most of our venture capitalists here, too. So if that’s what they’re looking for, we can make those introductions. And then we have incentive programs here. A lot of our incentives are based on employment growth. It’s very important to our legislature that we’re creating jobs, keeping jobs, retaining jobs. We also have a Vermont Employment Growth Incentive, which reimburses folks that hit target markets for employment. Another great program is the Vermont Training Program, which will pay for a pretty significant portion of people’s employees’ wages during training sessions. That’s a really successful program as well. But also there are a variety of things when it comes to putting up a building, purchasing a building, fitting up a building. We have a variety of programs, and sometimes it’s where they can access more funds. Some places are opportunity zones or you can get new market tax credits. We also have a rural industrial development program where our local regional economic development corporations can add some funds to put up a building or even have set up lower affordable leases for a company so that the cost of the building is something that’s not going to be a detriment to their growth.
Vermont will be attending the U.S. Department of Commerce’s SelectUSA Investment Summit this May. Can you briefly describe this event and some of the benefits of attending?
Yeah, so we’ve attended for many years now. We go every year. And basically, the main factor is that you can’t catch any fish unless you get your hook in the water. And I think the main reason that the U.S. Department of Commerce is recruiting companies from around the world that are poised and ready to expand into the U.S. market. Obviously, we are the hottest market in the world. A lot of companies do want to come here to the U.S. We’re one of the more stable economies and that’s another reason they want to come here. We’re also a very large consumer market for many of these companies. But the Department of Commerce will actually go out and they’ll vet them to bring these companies here. And obviously, it’s the 50 states and our territories all in one place. And we’re trying to at least extol all the virtues of why coming to Vermont is a good reason. We actually partner with New Hampshire and we go back and forth realizing they’re another small state right next to us. We don’t look at it as we’re competing so much as if they come to Vermont or New Hampshire, it’s still going to have impacts on our little regional economies, which I think it’s a great way to look at it. I think we’re looking more and more into attracting on a regional basis. We have the top of New England with Maine, New Hampshire, and Vermont, realizing that it only benefits our whole Northeast region if companies move here. But SelectUSA has been a really great venue. We had some really great talks last year with the Austrian delegates and Austrian businesses, and it’s hopeful that some of these businesses are moving here. It’s truly a development process. It’s a lot of conversations and trying to make proper fits and making sure that we are the right fit for them and that it’s going to be worth their while to be here. So it does take some time, but we’re very encouraged that we have so many good leads in our pipelines from SelectUSA.
We understand that you are also on the board of directors of the New England-Canada Business Council. Can you briefly describe its mission?
Yes, the New England-Canada Business Council is a forum for Canada, mostly I want to say the Southeast provinces of Canada, and the Northeast states to create conversations to make sure that the borders are doing what they’re supposed to be doing, not having issues, but also creating that communication. A lot of it is energy based. We get a lot of our energy in the Northeast, 80% of our gasoline, fuel, jet fuel, oil and gas comes from Canada. So it makes sure that those avenues of communication are open and educating people on what’s happening on both sides of the border. It’s been a great organization. I’m very happy to be a part of it. As well as I’m on the Eastern Trade Council, which is through The Council of State Governments, and that’s the 11 Northeast states. And it’s a different organization because the trade directors from each state get together. My role is very similar role as the New England-Canada Business Council. We’re trying to establish knowledge and bases in new markets, as well as best methods and best practices and communicating with provinces or countries around the world. But we do focus on Canada since outside of Connecticut it is the region’s largest trading partner.
For international companies and foreign direct investors who will be attending SelectUSA, are there any opportunities for them to meet with you and your team pre-event?
Yes, before, during, after event. We have a booth there which will be easy to find. We’ll have the green carpet and beautiful pictures of our Vermont landscape. But through the portal that is created by SelectUSA, they’re more than welcome to reach out. I’m on there and available at all times. My staff or I would love to meet with anyone to talk about Vermont.
Tim Tierney, Director of Business Recruitment and International Trade at the Vermont Department of Economic Development. Thanks for joining us today.
It’s truly my pleasure, Jamie.
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