2019 SelectUSA Investment Summit – Wednesday


real per capita income grew. United States Secretary of Energy.
SelectUSA Investment Summit 2019. Wednesday, June 12, 2019 .
SPEAKER: Tax reform bill G7 country, lackluster tax cuts and jobs act, spearheaded committee on foreign
investment in the United States CFIUS treasury secretary deun capital
management deun capital management one west bank group, Treasury Secretary
Steven Mnuchin, .
SelectUSA Investment Summit 2019.
Wednesday, June 12, 2019 .
SelectUSA Investment Summit 2019.
Wednesday, June 12, 2019 rp SelectUSA Investment
Summit 2019. Wednesday, June 12, 2019 .
ANNOUNCER: Ladies and gentlemen the 2019
SelectUSA Summit program will begin in 10
minutes. Please, find your seats. ANNOUNCER: Ladies and
gentlemen, the 2019 SelectUSA Summit program will
begin in 10 minutes. Please, find your
seats. Individual individual,
individual individual stop .
ANNOUNCER: Ladies and gentlemen, the
program will begin in 5 minutes. Please,
take your seats and remember to silence
your cell phones at this time. P.
ANNOUNCER: Ladies and gentlemen please
take your seats the sim mit is about to
begin all electronic devices should be
silenced at this time. (Music).
(Music) .
SelectUSA Investment Summit 2019.
Wednesday, June 12, 2019 . (Music).
SPEAKER: The United States is a country
built on ideas it’s in our DNA. Leaders,
risk takers, believers. We are the
original start-up. We are a country of
dreamers and doers. Where a spark changed
the world, and founded the desire for
innovation. When an infrastructure that
stretches through miles of possibility. .
We believed we could fly and now we fly
higher. An engine drove us forward, and
now propels us around the globe.
And manufacturing harnessed a work
ethic and a recentless push to be better.
Just one line connected two voices and
now we connect the world. And today
here in the U.S. enterprise has been more
connected with foreign investments find a
true partner, a home a consumer.
World-class universities develop
talents skill and an entrepreneurial spirit. We are
diverse, rich in resources, energy, human
capital. From urban to rural, our hubs
are new frontiers. A place where small
international businesses and start ups can
become big, dynamic firms. And large
companies operating abroad can grow even
more. We are open to ideas. Or open to
experiments. We are open to invest. We’re open for business
SelectUSA. (Video ends) .
ANNOUNCER: Ladies and gentlemen please
welcome Mr. Brian Lenihan Executive
Director of SelectUSA. (APPLAUSE).
(APPLAUSE). BRIAN LENIHAN: Good morning.
On behalf of the United States Department
of Commerce it is my pleasure to welcome
you to the final day of the 2019 SelectUSA
Investment Summit. But not the final
opportunity for you to further your
business investment potential here in the
United States. Look First to America! and
work with SelectUSA your investment
specialists in market and our greatest
partners in 56 states and territories
present here and where you are going on in
this week. I have heard very positive
remarks about this year’s Investment
Summit and we are here and excited to
record another year of progress between
the United States and partners z
speciallily as results of connections that
you all have created and strengthened over
these past days at the Department of
Commerce our mission is to create
conditions for growth and opportunity. We
have another stellar line up for you this
morning to hear from. Let me begin by
introducing the leadership of the
International Trade Administration. Our
team is led by Under Secretary of Commerce
for International Trade Gilbert Kaplan.
Throughout his impressive career he has
brought a lazer focus to promoting
competitiveness of U.S. firms and ensure
that international trading relationships
are carry you had out on a level playing
field. He promotes free and fair trade
both in public and private sector. In the
1980s he served at the Department of
Commerce as key negotiator in the U.S.
Japan agreement on the trade in
semiconductors additionally he supervised
the steel program. He is the founder of
the conference on the Renaissance of mrn
manufacturing and cofounder of the
manufacturing Manufacturing Policy Initiative
in Indian I can’t university. The only
program focusing on public policy to revitalize
the U.S. manufacturing. He advised
clients on trade policy matters such as
those involves the WTO and the
international anti subsidy agreements.
So, please, ladies and gentlemen it’s my
distinct pleasure to introduce to you the
Under Secretary for international trade
the honorable Gil Kaplan.
(APPLAUSE). (APPLAUSE) .
HON GILBERT KAPLAN: Thank you Brian for
the warm welcome and the introduction.
Let me join Brian in saying good morning
to all of you and thank you for being part
of our 2019 SelectUSA Summit. I am very
encouraged to see the numerous
participants in the various workshops and
discussions this year’s summit is
offering. We have a full agenda for the
rest of today as well. Including remarks from
our honored guest secretary of the treasury Steven
Mnuchin I also encourage you to attend our
biotechnology discussions later today, and
a special conversation on workforce
investment with Ivanka Trump, Barbara
Humpton the CEO of Siemens USA and
secretary of commerce Wilbur Ross. Thanks
to you and all of those who attended over
these last three Kay days. I anticipate
we have generated countless business
deals. As Under Secretary of Commerce
for International Trade I am charged
with the responsibility of fostering
international trade opportunities. And I
believe that the SelectUSA program
highlighted through our annual SelectUSA Investment
Summit is one of the primary examples of
the important work we do at the
Department of Commerce and at the
International Trade Administration every day.
Past Investment Summit participants have
announced 103.6 billion dollars in U.S.
investment projects within five years of
attending the summit. Supporting 167 890
U.S. jobs. We obviously count them in
great detail. Investment in the
United States is key to our economic
success. SelectUSA has been a resounding
success in this effort assisting thousands
of clients including economic development
organizations EDOs dough met particular
firms and international companies and the
program has facilitated over 47.8 billion
dollars in client verified investment,
creating or retaining tens of thousands of
U.S. jobs. Investment in the United States
is also key to our manufacturing sector
success. I have spent the better part of
my career working to rebuild manufacturing
in the United States. And I am very
excited to be part of the Trump’s — Trump
Administration’s effort to do this. Which
have included lowering business taxes,
building up the workforce, vigorous
enforcement of international trade laws
and regulatory reform. Due to SelectUSA’s success, and
an urgent need to foster and protect
American manufacturing. We have added a
new focus within our SelectUSA program to
help American companies invest in
American factories American jobs and
American communities. Whether it is by
bringing factories and jobs back from
abroad which were moved there when the
economy was weak and we were not fighting for
manufacturing, or if it is by U.S.
companies expanding their operations here.
We call this effort re-selectUSA as you
know SelectUSA facilitates job creating
foreign investment in the United States
and sup pores the growth of U.S. companies
manufacturing and other sectors creating
opportunities for hard working Americans. As for re-SelectUSA is to to
provide services to help them expand
their investments in or return
operations to the United States. Re-SelectUSA is a concerted push
to mobilize federal government
resources to up support U.S. companies on
their path to growth domestically. It
provides U.S. companies a first point of
contact at the federal level to help them
overcome obstacles, connect with he
economic development in states cities and
counties, and find their best
opportunities to grow. Re-SelectUSA services include
counsel sing research reports with objective
data that as always maintain our
geographic neutrality as between different
states. It provides assistance inform
gating federal programs, some of which
can be very helpful such as opportunity
zones, and it provides assistance
inform gating the federal regulatory system.
It provides introductions to EDOs
throughout the United States. Many of
whom are here today and it provides owm
buds man services. For any domestic
company looking at expansion
opportunities, we want you to look look first
at the United States. Our team has experts
who can help U.S. companies in all of the
aforementioned ways helping businesses grow
where they have the best chance to succeed.
And I am confident that location will
often be right here in the United States.
This week we released a case study that
examined six U.S. company stories
regarding reinvestment choices in the
United States. I hope this report can help
inform all of us about how to refine the value
proposition of the United States to
attract investment, factories and jobs.
How to re-SelectUSA. We at the Department
of Commerce are fully committed to a trade
vision that translates into new
opportunities for the private sector
increased investment from abroad, and a
higher standard of living for all
Americans. Now I am very pleased to
introduce the secretary of commerce and my
boss, Wilbur Ross. The secretary firmly
believes that the Department of Commerce
is charged with enhancing investment
opportunities for foreign investors and
for American companies throughout this
nation. We all note that the secretary
is one of the core members of the
president’s economic team. In this context,
he is working tirelessly and voa sifer
yusly to promote American prosperity and
the necessity for free, fair and
reciprocal trade.
The secretary is an expert in global
economic commerce. He understands the
struggles our industries face against
foreign countries not playing by the rules
of trade. For that, we are grateful.
And he also understands the importance of
an open and fair investment policy that
creates jobs, contributes to new
technology and enhances economic growth.
Secretary Ross has had an exceptional
government career in the two and a half
years he has been at the department as
well as an exceptional private sector
career that preceded that including as the
chairman of W. L. Ross and company.
ladies and gentlemen, please join me in
welcoming the United States secretary of
commerce, Wilbur Ross. (APPLAUSE).
(APPLAUSE). HON. WILBUR ROSS: Good morning.
We are fortunate to be hearing from
another member of the president’s
cabinet, our secretary of the treasury.
Secretary Mnuchin was the Trump add minute
strays’s principal figure in the passage
of the Monday you
monumental Tax Reform Bill. He is tasked
with maintaining the financial health of
the United States and by extension, the
global economy. Like myself, secretary Mnuchin
is now well into his third year on the job.
With a record of success that is hard
to duplicate from at any other
period in the history of this nation.
Under his financial stewardship, the U.S.
economy has been transformed from a
lackluster funk to growing faster than any
other G-7 country. This growth is creating an
unprecedented number of new jobs and is
regenerating many of of America’s post
important industrial sectors.
Secretary Mnuchin plays a central role in
the greatest global issues of our time.
He is a principal negotiator in a knew
trade relationship with China.
He spearheaded the pass passage of the Tax Cuts
and Jobs Act, the biggest boost to
corporate investment in over a generation.
And, today, he is implementing tax reform
in a way that generates a new wave of
investment by companies like yours in the
U.S. economy. Secretary Mnuchin is
instrumental in assuring not only the economic
security of the United States, but its
national security as well.
Many economic and financial issues now
have national security implications, and
this new reality requires a delicate
balancing act and a great deal of his
time. As chair of the committee on
foreign investments in the U.S., CFIUS
and as a member of the president’s
National Security Council, secretary
Mnuchin is safeguarding our national
security while maintaining our commitment to an
open investment environment. I
believe he is go down in history as one of the
three most impactful secretaries of
treasuries, ranking alongside Alexander Hamilton and
Paul Mellon. Before coming to government
our Treasury Secretary had a successful
career in the private sector, working with
all types of companies especially in
finance, and as he was the founder
chairman and CEO of Dune Capital
Management he created one west bank group
and ultimately sold it to CIT group. And
he also was a very successful movie
producer, an unusual combination to say
the least. It is one of my great privileges
to work alongside Steven in fostering
investment and economic opportunities here
at home and abroad.
It is my pleasure to introduce to you the
person whose name is on — is on the U.S.
currency Treasury Secretary Steven
Mnuchin. (APPLAUSE).
(APPLAUSE) .
HON. STEVEN MNUCHIN Thank you secretary
Ross for that kind introduction.
It’s always great to be with you. I know
how hard you are working to open markets
and ensure greater opportunities for
America’s farmers your efforts are making
a tremendous impact. Secretary Ross
congratulations on putting together
another successful SelectUSA Summit and
for making sure the world knows that
America is open for business.
It is an honor to be with you here again
today. I’d like to begin by updating on
you some recent developments. This past
weekend I was pleased to represent the
United States at a meeting of the G20
finance ministers and central bank
governors in Japan. My counterparts and I
discussed the state of the global economy
and policies we should be considering to
foster greater economic growth.
We have had several — we advanced several
priorities at the meetings way ways to
continue fighting, we reaffirmed — the
avoidance of competitive devaluation. We
improved debt transparency and
sustainability to decrease the likelihood
of crisis in poor nations and we also
secured commitments from our G20 partners
to cooperate on efforts to modernize the
international tax system.
I look forward to I can maaing additional
progress on these issues and more when I
accompany President Trump to the G. 20
leaders meet it — meeting in owe sack ka
jab pan later this month. My discussion
with other finance ministers is productive
and reinforced the fact that the
United States remains in a position of
strength in leadership having achieved
growth rates that many of our trading
partners aspire to. There has never been
a better time to invest in America.
President Trump’s economic programs of tax
cuts regulatory relief and improved trade
deals is leading to stronger growth, more
jobs, and higher wages. This American
model of restoring competitiveness to our
economy has led the United States to a
period of historic opportunity and
optimism for the future.
The U.S. experienced 3% GDP growth from
2017 to 2018 tore for the first time in 13
years we have unemployment at 3.6% the
lowest since 1969. Average annual hourly
earnings growth continues to exceed 3%.
Prior to administration, the U.S. had
seen a period of low economic growth,
flat wages and the lowest labor
participation rate in decades.
This is similar story today for many
economies around the world from Europe to
China. The difference is President
Trump’s pro-growth policies.
The first element of president’s economic
agenda is tax cuts. The Tax Cuts and Jobs
Act give hard working families for
spending power it cuts the federal income
tax liability for a typical family earning
75,000 in half. Saving them more than
$2,000 per year because of lower rates,
double standard deduction enhanced tax
credits and other benefits. Thanks to
concurrent wage growth the typically
family received additional $2500 meaning
that at the end of 2018, they could be
earning as much as $4,000 more in after
tax income. The law lowered corporate tax
great from 35% to 21% and permits pass
throughs to deduct 20% of the qualified
business income. It further allows the
immediate expensing of capital
expenditures for five years. These measures helped
the United States a destination once
again for manufacturing.
The trend is undeniable. Since President
Trump’s election we gained well over
400,000 manufacturing jobs. We already
seen hundreds of billions of dollars
invested in the establishment and
expansion of U.S. business operations
generally. But the manufacturing piece of
our expansion really helps to tell
the story to investors that you can
invest, grow and succeed here. I also want to
highlight opportunity zones tax incentive
an important component of the Tax
Cuts and Jobs Act. Opportunity zones
will ensure the economic renewal we are
experiencing reaches distressed communities.
The incentive provides capital gain
tax relief for investments in areas that
need revitalization. We are seeing
greater enthusiasm for this policy from
entrepreneurs and communities seeking to
partner with one another to make positive
social impacts. We are confident that it will
help restore the promise of prosperity for
more more Americans and I encourage you to
being loo at incentives that you consider
where to locate your investment both
facilities and workers. To date we have
designated almost 9,000 opportunity zones
to promote jobs and — in low income
communities. The second element of President
Trump’s program is regulatory relief.
We focused on improving the financial
regulatory environment and the Treasury
Department issued a series of reports
outlining our findings and recommendations for
making financial regulatory conditions
more pre Dickable, fair and
efficient. These measures compliment our
trade efforts which we aim to break
down barriers to markets around the
world. We have been working with China to
achieve concrete changes to our trading
relationship, and structural reforms and
practices such as force technology traps
fors and intellectual property to open
their economy. President Trump remines —
remains committed to addressing unfair
trade practices in China. I must also
highlight the U.S. Mexico Canada
agreement. This deal will modernize our trading
relationships in North America and create
some of the highest standards ever to
protect intellectual property rights and
support small- and medium-sized businesses
and encourage manufacturing. I am hopeful
congress will move quickly to pass
legislation implementing this important
trade deal. Additionally we focus on
ensuring the business environment is
conducive to the United States maintaining a
leadership role in the industries of the
future. Nearly $8 trillion, 38% of of
U.S. GDP is linked to knowledge intensive
industry. We will support intellectual
property protection and entrepreneurship
and focus on workforce development to meet
the needs of our evolving economy. This
means that we are making scientific
research a priority as well as well as
advanced manufacturing, artificial
intelligence, and quantum computing. They are
facilitating infrastructure in freeing up
spectrum for 5G use of the we anticipate
that the American wireless industry will
invest $275 billion in 5G networks create
thing 3 million new jobs and adding $500
billion to the economy. We are working
with the private sector in educational
institutions to make shoo you are that
workers receive the training they need to
fill the needs of companies leading ways
in tech. As a result of President Trump’s
economic reforms the world economic forum
most recent competitive report named the
United States the most competitive economy in the world for the first time
in ten years. We are proud to be a
country where business can grow and thrive and
we are proud to welcome foreign
investment. I encourage you to join us in our
economic renewal. Thank you very much
it’s a pleasure to be here with you
today. (APPLAUSE). (APPLAUSE) .
ANNOUNCER: Ladies and gentlemen, please
welcome to the stage Miss Becky
Frankiewicz to moderate a discussion on
food beverage and agriculture.
(APPLAUSE). (APPLAUSE) .
BECKY FRANKIEWICZ Perfect. Good morning
thank you all for joining our session
today I will be your motor rater among
these gentlemen joining me on the stage I
am Becky Frankiewicz I work for manpower
group. We are the leader in global
workforce solutions and staffing. Which
means, that we have to be students of
industry. Including foot beverage and
agriculture. To the extent of change that
we are seeing today in the world, it’s comparable to the shift from
horsepowerred to machine powered. It’s
happening at a speed and scale that we have
never ever seen before.
Several years ago at manpower group we
identified a set of Mac co-economic forces
that would dramatically impact the world
the panel today will explore two of those
forces. The first is the rise of
individual choice, consumers are
increasingly wanting personalization and
information around the goods and services
they consume, the way things were made,
who made it, and of course the block chain
that tracks all of this. We are also
seeing the rise of choice when it comes to
the workforce. Consumers as employees the
consumerization of talent means that
employees are increasingly wanting to
choose when, where, and how they work.
And if be may behavior is enabled by the fact we
have limited supply and ever increasing
demand for talent. That’s the first
macro economic trend the second is
technological refl leution. Technology is
changing the way that companies operate.
Unlocking efficiency as you will hear the
panelists talk about today and enabling
innovation. Food beverage and agriculture
have always been on the forefront of
technology. From the invention of the
plow to the horse collar to today
precision agriculture and droaps. So,
with that con terks, I would like to ask
my panelists to introduce themselves and
in doing so, answer the first question
gentlemen, which is in this context of
technology, how are you seeing — what are
you seeing change the most in the
industry. Tom we will start with you.
TOM ERIXON: Thank you. And honored to be
here COO of a company we are 5 billion
U.S. corporation with strong history in
food and beverages. In fact, we ran
globally the biggest production facility
in the late 1800 out in the hut son river
where we shipped 300,000 separators for
milk and cream separation to the midwest
in those days. If you want to think about
technology development. Today we ship
around 300 units per year producing
immensely more milk and cream that the
300,000 when you think about what
technology does over a hundred years you
can make multiplication yourself I I
assure you it doesn’t stop there. If I
look at the technology opportunities we
have now, I think the digital development
is truly exciting for equipment makers
like us that deliver equipment that are
critical in the manufacturing processes in the
food chain or in oil and gas sector
wherever you are. And we see an extremely rapid
penetration of monitoring programs,
safeguarding the productivity and performance of
high value added equipment that goes into
processes. And we see also as a result of
that a much better opportunity for customers
to benchmark within the plans or
sometimes even with other eupts as to how
they are perform in energy consumption
process efficiency up time and so I
think the digital revolution is greatly
affecting process industries of all kind
certainly equipment makers like ours.
BECKY FRANKIEWICZ Thank you Boonchai.
BOONCHAI OPAS-IAM-LIKIT It’s my honor to
speak here I wish to thank the office to
organize this impeccable event. And I
impressed every time with SelectUSA.
Ladies and gentlemen I am Boonchai the CP
group is a conglomerate with (inaudible).
Our core business range from food value
chain retail distribution and
telecommunications. We are globally
present in more than 100 countries. We
have more than 200 subsidiaries we
invest more than 20 countries Asia
Europe and United States.
We also the group listed in the Dow Jones
sustainability index and, thus, we adhere
very much about the sustainability
context. We are also a member of world
economic forum. As a root of organization
the company back to 98 years ago from
agricultural to further into agri food
value chain retail distribution and
telecommunication, yet we don’t forget
about the root of the agricultural. So,
we wish ourselves to be our vision — of
the world — what does it mean we want to
extend our key capability be beyond our home
market in Asia to elsewhere in the world.
That’s the reason why we invest 1.1
billion U.S. dollars in 2016 for a food
business in United States, and this is one
of third I would say largest impact food
entry. We employ more than 2,000
employees here with four different
production footprints two Ohio two also in
California. As such, I thought this is one
of the best investments in the best
ecosystem best competitive market and best
ecosystem in terms of the business
environment. This connecting the dot where we have
home base in Asia we connecting the dot in
Europe and now footprint in the United
States we can leverage this kind of
cutting edge technology to bring the benefit
to the consumer of the United States
and elsewhere. And if you talking
about technology, you look at broad
change of value chain I am pretty sure
each and everyone you look at farming,
from conventional farming now you are
talking about smart farming precision
farming you use technology of at tell light
GPA, AI, you are talking about food we
are meat producer company we recruit
employee that what is specific for them to
contribute to the organization. The one
reason they say we are vegan. That’s right.
So, there is some shift and change of
technology. We should be aware of. So,
alternative protein and plant based is
already 3 billion U.S. dollar so we have
to prepare this kind of technology. We are
talking about retail and distribution.
The technology of R to O not anymore
now coming to the retail store they
shop online some of the online go to
the off line. So a little bit con ver
yawns were from O to O. Telecommunication
I am not sure how the phones exist I have
one as part of my communication. You
are talking about mobile phone from the 1G
to now 5G. So it’s all about technology.
What I like to say in the end this is
something to disrupt early innovator we stay
on the surf there could be opportunity.
If we ignore technology there will be
a threat. CP group very clear we are
technology driven company. We spend a lot
of time and research and development we
have more than 5,000 researchers. So, we
believe this is one of our core
competences. BECKY FRANKIEWICZ Thank you I
should have said in my I grew up in a family
farm in Texas we didn’t have smart
farming I am excited to learn more about that
with that Renato.
RENATO HERSZ: Thank you Becky I am Renato
Hersz chief strategy officer at my company
we have digital platform that optimizes
farming processes we operate in 10
different countries, and various crops
ranging from sugarcane to soy beans corn
and cotton. Going through perennials and
I would like to highlight to you guys what
a great time it is to be alive. The world
is changing in a very fast pace. If one
looked at the 10 biggest companies in
terms of market cap ten years ago only one
would be a technology company.
That was Microsoft. Today, seven out of the ten
biggest companies in the world in terms
of market cap are technology companies. Alexa was launched in November
2014. Today, four and a half years
down the road there are more than 52 million
speaker devices in the United States.
That’s penetration of more than 15%.
What’s going on in agriculture. There
is a digital revolution happening as
we speak. Digital revolution where IOT
Internet of things meets artificial
intelligence. Moors law has gifted us with
sensors that allow us to have information on
everything in realtime and with artificial
intelligence. Both cloud and edge
processing which allow us not O only to
capture this information but to process it
in realtime and deliver feedback in the
processes. What we do with that, we help
farmers to do more with less. And to
produce in a more sustainable way. We
help farmers to trigger their planting
based on soil moisture and soil
temperature. We we help farms meres to
trigger their spring based on the weather
conditions. Wind speed, temperature,
plant moisture, by doing that we help them
to reduce the amount of chemicals used in
the process. We help them improve the
machine logistics throughout the
processes, also in harvesting, we help
them to reduce the number of machines in
the field, the number of people in the
field. And the fuel consumed in the
field. So, that’s what we are talking
about. And these things happen in a
very fast pace. We as a company in the
last four years we have gone from 20% to
60% penetration in sugarcane in
Brazil with digital solutions. This is the
second year that we have been operating
in row crops soy beans corn and coffee.
We are reaching 7% penetration in
Brazil which is the second biggest grower in the
planet. We have launched, we very proud
to have launched our U.S. headquarters
out of pursue research park in Indiana.
And things are happening faster than
expected we are going to deliver in it
2020 what we expected we are going to achieve
only in 2021. So, that’s who we are.
And where we are. We are just in the
beginning. Hopefully we will get far.
Thank you. BECKY FRANKIEWICZ Thank you
Renato. And definitely last but not least
Mathew other introduce yourself.
MATTHEW FURNER: Sure thank you Becky and
SelectUSA pulling us together to have a
dialogue I am Mathew Furner I work for a
company called (inaudible) today about at
least half of this room would have used
products that actually come from this
company that I work for and you probably
would not little to what we actually do.
We are a privately owned company largest
in the world we work in naifers taste
nutrition and perfume or fralg granses a
$4 billion company we have 8,000 employees
worldwide. Maybe just to give perspective
of kind of what we do to make this come to
life imagine it’s a Saturday and you are
in the shower watching your hair, and you
are I am kind of bored with my shampoo
what could I do differently today I want
to buy a new shampoo. You go to the store
you decide to look at the myriad of
selections that exist today when buying
shampoo. What do we do? I look at the
products I try to understand what’s on the
shelf and then I start to make a narrow
selection. Maybe manning go madness looks
interesting to me maybe it’s Bahama breeze
but I get it down to two or three. What
do most consumers do at this stage look
around anybody watching grab a bottle take
it and what do you do next? You open it
right? You smell it. So, the company’s
job what we do is make that experience for
you come to life. We are to deliver a
fragrance to help you help us make a
decision whether we we buy that product.
Why do we choose the product we choose in
that scenario it’s typically around the
fragrance you just enjoyed we help
consumers make decisions when buying a
product. That kind of puts it into
perspective in terms of how we work. We
do the same thing when it comes to
flavors, and what we taste. In terms of
technology, absolutely like I co-panelists
have said it’s changing extremely fast
when you think about 15 years ago with who
was talking about smart proteins and
plant-based proteins to replace meat.
This is exactly where we work actively
today we have to understand the vegan
issues and trends that we see which are
not going away but increasing it’s a much
different process to go out and work with
cattle to bring meat versus working with
enzymes and traps forming the process to
something that can replicate nature.
These are challenging times exciting times
and it’s exciting to see the enthusiasm
from the panelists as well on these
topics. BECKY FRANKIEWICZ I had no idea
Mathew was going to go into your showers
this morning that’s a surprise to all of us.
I knew what you were going to
say I bought shampoo this weekend I hate when
they seal it, it reduces the opportunity.
To dig a little deeper we talked about
technology now I would like to shift to
this rise of individual choice particularly
around talent. Tom I would like to
start with you and understand what is your
company done to attract and develop
talent in this world of tight demand?
TOM ERIXON: I I actually think one of the
most important talent and people issues
when it comes to the new generation and
how things are, is the problem of the
dying traveling sales man and the sec
anythings for that matter. We have
hundreds of people traveling the U.S. most
of us in my age we grew up leaving home
Sunday evening and coming home on a
Friday. We have significant challenges in
filling those positions today working in
that way. And I think this is one of the
most exciting areas for the digital
development it will enable people to
perhaps combine a family life and a
traveling life in a different balance than
in the past. So, part of what we are trying
to do in talent is to deal with this type
of balance between people. The
other thing that is changing for us in the
U.S., I think, being European-based
company originally is that we have done
management development very much from a
home base. We have been sending people out
I think this is changing also. In the
world we have today it’s — you know, the
corporate center is less important, and
it’s happening out in the real world
if you like. And consequently we need
to develop in a different way also senior
managers from a U.S. perspective. Now we
actually sending people to Europe from
the U.S. for the first time in order to get
them engaged get them to see
something differently and coming back with
a different experience. I think
there r — I think there are a lot of tools
and opportunities the general
background to the question we need to be much
more active than ever before.
BECKY FRANKIEWICZ Are interesting I was
with a panel of CEOs the topic asked was
decentralization of headquarters if you
will the question I ask is how do you
build culture when people aren’t
constantly together. I think that’s a
real defining question for all of us we
are seeing none wage benefit is telecom telecommuting we will see
consumers want to work where they choose to
work I think that’s insightful.
TOM ERIXON: I totally agree the cultural
aspect of the company is so important
today it goes with the purpose of what we
are doing. And I think the technology
transition we are in not only in the
digital area but also coming to the
renewable side and other things like that
the purpose of being involved in
supporting and driving that change is
fantastic glue for getting teams together.
We sey enormous exciting with youngsters
the 30 years olds. BECKY FRANKIEWICZ Youngsters I
like it Renato build on that what is
your company doing to retain talent.
RENATO HERSZ: You mentioned an important
point Becky culture. That is a difficult
challenge. The last two years we have
gone from 90 professionals to 400
professionals it’s a very sticky employee
base. What we tend to do, we tend to hire
by the attitude and not by the knowledge
like we hire very young people and we
train them internally it’s been successful
what we need. We need to have kids that
love what we do love every culture and
love making a change in the world. And
the U.S. we are successful so far. It’s
still the early days. We started back in
November of last year officially it was
the official launch after one year
researching. Today we have 15 people out
of our U.S. head quarter in Indiana the
end of the year we want 40, 50 people out
here. And one thing that was very
positive surprise was Purdue was set up
for U.S. headquarters inside the research
park which gives us access to great talent
both in agricultural science and
engineering these what we are doing as of
now. BECKY FRANKIEWICZ Great I love
to capture something Renato said we hire by
attitude versus knowledge. We are
increasingly saying skills are changing at
the space of — at the pace of technology what you
have done in the past is different than
what you can do in the future. We are
willing to hire people based on what they
can do versus what they have done I like
that. RENATO HERSZ: Data science get
somebody with ten years experience.
BECKY FRANKIEWICZ Good luck and it’s
changed seem. Boonchai I would love for
you to share with the group why you see
the U.S. adds a focused area of investment
for your company. BOONCHAI OPAS-IAM-LIKIT If I
look to investment we making in United
States, to me I am very convinced that U.S.
United States has a great ecosystem.
Business dine mism. It’s two prong. One
is super power means engine for the
economy, the economy in the U.S. and this
is big and robust. Where we are in silent
economy. The push from the GDP from the
largest demand of the con seup assume mer.
325 powerful spending power. And if I
shift this back to supply side, this is I
would say a whole value chain. In food
and agriculture space. Raw material is
one of the most critical things. In the
end if I look at a corn and grain corn and
soy bean in midwest this is one of the
most compatible material we have in the
U.S. that’s why we invest in U.S. here.
Yet you have another two core pillars one
of the most critical is also technology.
We all know that U.S. is one of the most advanced technology. In our
industry what we need most is biotechnology,
genomic is a gene sequencing gene selection
I would say talking about the digital
transformation AI, IOT, block chair.
Another core pillar is educational system.
No surprise when you see from the screen
day one, top 20 universities in the world
coming 15 from United States. And this
makes a lot of sense to bring these kinds
of skill for workforce which help the
organization very well. That is something
that we see this is best and great
ecosystem of the investment in the
United States. But yet, if I would love
that — since invest what kinds of
complimentary we could bring to the U.S.
great ecosystem. If I look at the demand
side, yes, size of the world biggest
consumer some of those products like
seafood especially shrimp Americans you
consume 4.4 pounds per person per year.
BECKY FRANKIEWICZ Of shrimp.
BOONCHAI OPAS-IAM-LIKIT If you multiply
325 million population you are talking
about 700,000 tons of shrimp you consume
per year. And I tell you one thing you
get, 95% of those consumption are
imported. Are imported. So you are
talking about trade deficit in U.S. only
for the shrimp product. We CP group we
are one of the world leading agriculture
company especially leading with the shrimp
in this business. What we need to do we
can create a sustainable shrimp culture
for United States. So, instead of you
import you can have self-sufficient, a
long-term sustainable business model, you
can also export it. And this is something
I need to wholeheartedly thank you
secretary Wilbur Ross. He visit our head
quarter and inspired us about this kind of
project. I have to tell him that we have
a firm commitment to this project. Why is
that? In the end it returns shrimp
culture in U.S. to be a very sustainable
with three bullet point. Any time in the
year because we use indoor system.
Temperature control, anywhere in
United States in the west in the east in
the north in the south and most
importantly, as we adhere to
sustainability context it’s a total way of
recycling. So, this is a whole ecosystem
we are — this is our firm commitment to
be responsible and benefit to the consumer
of the United States. BECKY FRANKIEWICZ
Perfect, thank you. Mathew I would love to hear what
your firm is doing why the U.S. is a
productive market of focus for you.
MATTHEW FURNER: Sure I am glad you spent
so much time saying it’s easy to do
business here. It is a reality but I
think over 20 years of my career was
outside the United States I only came back
about two years ago. I worked in some
really tough markets in Asia in
particular, and three different
assignments, I will tell you what you get
used to working in challenging markets,
and people become accustom to a certain
way of working. One of my hesitance sees
next opportunity in the United States was,
I am not so sure it’s going to be very
dynamic compared to living in China which
is where I was at the time. How wrong I
was. I then came to the United States,
and realized it’s so easy to make money,
so easy to contribute back to society
which is an important part of what of our
values that I recognized within the last
couple of years we made significant
progress because it is just easy to do
business. When you do business a case
review looking for a capital investment,
you don’t necessarily quantify what that
means in the business case. It might be a
soft factor regulatory environment,
intellectual property these are important
factors. If anybody knows how they are
want identifying you can convince the
board I love to talk to you about it it’s
a challenge. Actually there is enormous
amount of cost that you spend managing
those issues. So, maybe to move to
another kind of obvious reason of why we
are here. There are a lot of people interested in food and bev this
is where the global headquarters are and
where the big decision-makers are. Thes
important to be close to them. The global
headquarters is run owft of the United
States. One side you have that also
ecosystem supporting food appeared
beverage at the same time, what a great
country when it comes to innovation and
entrepreneurs. So, we also need to be
very closely working with people who are
actually working from their garage,
literally to create product. These are
how the buy products of the world is
created. The impossible meat it comes
from little ideas that grow really big
with support. We want to make sure we are
there understanding those trends because
at the end of the day we want to vrk very
carefully with them to understand where
the trends are going because we have a big
role to play in how that’s going to
evolve. BECKY FRANKIEWICZ It’s
interesting you talked about
entrepreneurism it ties into the rise of individual choice.
People are choosing to be contractors
freelancers et cetera at a faster rate a lot
of that is fan fess tinge that in
vepting your own solution a lot of people in
garages. MATTHEW FURNER: There are
barriers for entry. They don’t need assets
they need the ideas because it’s back to
what exists
in this country weu don’t need kitchens
pilot plants as long as you have partners
around you can bring the ideas to market
very fast. We have clients on the west
coast something is on the shelf within two
to three weeks of the idea when they come
meet with us that’s fast innovation.
BECKY FRANKIEWICZ Love that demomization
of innovation is what is happening. I
love companies that are partnering with
individuals around that thank you for
that. Tom I would like to come back to
you and change gears a little bit I would
love to hear how you state he can no,
ma’am organizations in your investment
decisions and if you have plans to
increase that collaboration?
TOM ERIXON: I must say I think there are
two countries in the world that stands out
when it comes to support for industrial
investments and activities. And in our
experience that is China and the U.S. in
both countries you meet with state
provincial representative who are
committed together with you to develop
something. Sadly to say in Europe you
often meet organizations that see
industrial permits as a problem and not an
asset. I think just the fact that you
work on the state level someone who
welcomes the business — I think clearly
to say, under strict sustainability
regulations and water conservation and
what not. I don’t think this is about
being relaxed about how we treat our
environment here in the U.S. or China for
that matter. But I think that has been
the most encouraging thing. We have done
a lot of since we have been here 30 years
it’s not that we are starting from scratch by any means you need to change
the foot frint conned solid date expand
sometimes move around, these type of
things. And we found that in places like
Oklahoma where we have done significant
investment over the last couple of years
Richmond, Virginia just around the corner
from here Houston we meet tremendous
partnerships and many are long-term. We have
been here for 30 years in Virginia we have
been in Houston even longer, and so, you
know, you become as you say you also
become part of the community. The bonding in
those communities is very strong they
are proud of us we are proud of them so we
think it’s fantastic.
BECKY FRANKIEWICZ Very nice p Boonchai
same question for you. BOONCHAI
OPAS-IAM-LIKIT We have very clothe collaboration from
federal and also state. I think we have two
different state before investment after
investment and future investment. In the
pre investment I was here last three
years and (inaudible) from federal EDO and
also the subnational EDO. We got very
great information and knowledge about
tax planning, tax incentives,
support of investor. So, in the end we can
calibrate where to invest. After we have
the investment what we need to do is
we — for example EDO in Ohio, they look
at the investments plan right after
accusation right after investment, we have
round about $150 million U.S. dollars
just to upgrade equipment. Just to
reskill employees retrain employee up
upscale the employee. And there is
workforce development we worked closely
hand in hand with EDO office in Ohio likewise
in California.
And in the future, we also need to work
with them. I cite examples about core
culture industry. We love to be somewhere
any time anywhere we need some state to
start first. I have to thank you
congressman on the third district Florida
he ran up all of the results from the
state the EDO and come back together and
go into the state make a site selection
you compare here there black and white.
Negotiate. So, this is something if we
work closely with EDO this is something we
can gain benefit as mutual benefit from
investor and also United States and this
is my experience. BECKY FRANKIEWICZ I love
Boonchai you mentioning the EDO’s partnership
around upscaling and rescaling. It is
critical in our country today that we are
constantly looking at not just people
skills today what is going to be in demand
tomorrow all of us public private
enterprise educational institution alike
need to partner so that brings us back to
purr cue which brings us back to you
Renato. I love to hear your take on this
question as well. RENATO HERSZ: Yes to get
opportunity for me to share a bit of the story
on how we got to the U.S. we first
presented U.S. opportunity to our board July
2017 in board meeting in off site. Well
the idea was scrutinized Brazil is huge
market we have a lot to go why go to U.S.
I came out in December, and I got back with
a plan under my arms saying we need to
do this. There is no one doing what we
are doing in the U.S. we got to go there. I
got approval of small budget we
started ramping up in the U.S. that was
December 2017. March 2018 we are out in
California and San Francisco, and we go out
pitching our idea to Kipp Tom is a big farmer
in Indiana relevant farmer he is
now the U.S. Ambassador with the the food and
agriculture organization. We pitch him he
brings in a lady Beth, he starts pushing
us like you are serious about the U.S. are
you going to diset up — set up operation
here where do you set up. We didn’t know
much U.S. geography. I said yeah here
there, Beth jumps in you got to come to
Indiana. You got to meet us. We are like
okay like we will go to Indiana. And Beth introduced us to the leadership
at purr cue we are there with Mitch
Daniels and Brian he had Dell man we get
very impressed whoa, we look around
Purdue all we see is corn and soy beans
this is good place for us. There is great
talent in ago eventual turl and
engineering. This is starting to make sense.
Then we got introduced to Elaine Biddel
and the IDC add Indiana development
corporation, economic development
corporation, and we get the grant from the
government to set up our operations out
there. Then we launch our operations in
November last year officially or
headquarters at (inaudible) Indiana we had
the governor giving a speech in the video
for us. This is beautiful. Like it’s
absolutely beautiful to see the
intersection that we have in the U.S.
between business, government, and
academia. It’s like amazing coming from
Brazil. Seeing interactions lively
interactions the willingness to make
things happen is just beautiful. Thank
you for all of the support.
BECKY FRANKIEWICZ Awesome. So I have a
question for all of the panelists Mathew I
will start with you as we look at — we
talked about the pace change of technology
and skills, as look outlet’ take
short-term horizon 3 to 5 years what you
are most excited about that you think will
change the industry you sit in.
MATTHEW FURNER: I will go a bit with the
wellness trend there are so many we can
pick up from I am sure right? In terms of
wellness it’s important to understand that
the diets of the world are moving to where
we want what? Less sugar less salt less
fat. It’s a great opportunity for us to
get involved. It requires new technology
and solutions. But I think what is
amazing about the space we can’t act by
ourselves to drive the right chises for
consumers. Today we are able to bring 35%
less sugar and particular it out of a
product because of technology that we have
been able to develop over the last few
years. That’s a great thing to be able
to talk about. But when you say 30 to
50% of sugar out of a formula talking
about dry breakfast serial which can tend
to have a lot of sugar you are taking a
lot of mass out of the product we can reduce
sugar we have to talk to others look we
need to put something else out there maybe
you are used to a breakfast cereal this
size you are not interested in seeing it
change too much. We have to
involve others saying we can do this what else can you
bring to healthy choice as well for the
consumers. Of course clients and everybody
gets excited about it but it’s tough
that’s why it’s fun is because there is the
opportunity. So I think when you see the
whole space you will be seeing a lot more
products are reducing shoeing are ga,
salt, fat, talked a little bit about
alternative proteins this is a different
way of working not just ourselves but many
players as well. BECKY FRANKIEWICZ One thing we
didn’t talk about back stage I managed the
quaker foods business for pep Cisco it
was more of a consumer challenge as you
reduce bulk you reduce size who wants to see
a cereal box in the United States thary
this size who wants to see a box this big
then you have a price value challenge I
am close to what you are facing very
interesting. The noble goal of making our food
healthier and hirer quality is worth
figuring it out. Renato looking at 3 to 5
years a little further out what are you
most excited about impacting your
industry. RENATO HERSZ: I think there are
two core trends. One is economy, if you
think through it’s probably much
easier to have full autonomy in in an
environment than full atone me in in a city
environment. That’s a core them — theme like the
way we see it we bring autonomy from a
(inaudible) pours tiff. We trigger
processes based on the real online conditions of
all of the different parameters. Bringing
more and more autonomy into the
conditions to — in the machines to a couple of
years have a full autonomous farm. That’s
one trend. One trend that relates a lot to
what Boonchai was saying and what
Matt was saying is this trend of
transparency. Like transparency
sustainability. Like we as consumers we demand to know
what we are eating. We demand to know what
the kids are eating. So, with technology
now we are able to trace with the block
chain one of the outputs is traceability.
Our core value add is operational
efficiency, but we are tracking everything that
is happening during the production
process, and we — we are now starting to
print this in a block chain. So rgs
that when you get to the farm gate you get
the food history of the produce, and then
you will bring this into the machines and
you will take it out to the protein from
CP when it gets to your home you scan the
product and you know the food history of the
produce. SPEAKER: Absolutely.
RENATO HERSZ: That’s a trend that will
happen in the near future.
BECKY FRANKIEWICZ Boonchai same question
for you a little further out horizon what
is most exciting to you.
BOONCHAI OPAS-IAM-LIKIT He is my partner
what he says. BECKY FRANKIEWICZ There is a
deal happening on stage here.
BOONCHAI OPAS-IAM-LIKIT Sustainability is
the center of everything what the business
has been doing in it might be three years
or five years but we have to start now.
In food business we talk about food security — secretary. We talk
about food safety traceability
sustainability. But it’s far away from where we
realize. Let me put something provocative
innovation but tangible for sustainability.
We have our research and development
innovation, talking about microwave
technology the industry scale. From the
past if we like to have a stable product
we need to use a chamber of the steam to
kill these microorganisms so it could be
put into stable room temperature. But
they also destroy the identity of the
color meat texture and whatever. What we.
VIVEK CHAAND SEHGAL: have is a micro
technology thermal assistance. What we need to do
is use these kinds of microwave
technology to sterilize the ready meal, the
ready meal that means everything is inside
carb protein it gives the same
identity, and yet these kinds of staryl liesed
microwave technology can keep into the
room temperature for one year.
If you calculate from the production to
the warehouse logistic, retailer, household, how much energy you
would save as sustainability. We save the earth.
But this is not something we can do within
a day or year. We have our product in
Europe but there might be something we
have to make a move to be a mass market to
benefit the consumer everywhere in the
world. BECKY FRANKIEWICZ We save the
earth wow. And Tom for our final thought on
that question.
TOM ERIXON: Well I think I will go a
little bit outside of the food and
beverage sector we have been focused on
here. In my view the most energetic issue
and promising issue is where renewable
energy is going. And particularly related
to energy storage. As you know, the issue we have
in the climate problems we are tackling
with renewables is it’s volatile.
Volatile supply is not a good thing for
consumers you want to control whether you
are using electricity or not. For large storage
it’s not efficient. It’s not
environmentally friendly you need to go to
thermal storage. And saving energy in any
abrasive solution is extremely corrosive
and problematic from many points of view.
Our technology in heat transfer
development is extremely important to find
energy storage solutions that work on the
large scale. And interestingly enough,
that technology development is happening
right now, I think it has a chance to be
commercial within five years we think
there are pilot plans within two to three.
And as opposed to the way we work with
technology in the past ourselves stopping
to look drawing up the systems we have
gone in partnership with a small start up
company in Boston. There we have the
right venture capitalist the right tart up
industrial partners we focused to get the
heart and lung of the system which is the
technology we control to function in this
type of environment. And I think if we
can break through on that project, then
the whole energy storage solution for the
world’s renewable energy sources will be
solved once and for all.
BECKY FRANKIEWICZ Wow. TOM ERIXON: See you in
five years. BECKY FRANKIEWICZ We are saving
the earth literately incredible. For our
final rapid fire question, what I
would like to ask the panelists to do leave us
with a tweetable message so everyone
here with take something out of the room
one final thought for the
audience what would it be Mathew we will start
again with you. MATTHEW FURNER: Sure. Just make
it happen right? I think you are leaving
money on the table that could definitely
be yours if you were playing in this
market. It’s really easy to do business, I
think by just making that leap, that
opportunity more likely than not you will be
very successful here and grow
business substantially I know some people
are thinking about this from my
experience just do it and I am sure you
will have a great experience.
BECKY FRANKIEWICZ Perfect Renato?
RENATO HERSZ: Action is the main thing.
Realtime actionable insights doing more
with less. BECKY FRANKIEWICZ Hmm. Do more
with less. Moon moon — Boonchai.
BOONCHAI OPAS-IAM-LIKIT Maybe a more than
a second just to thank you Becky and also
my fellow panelists I like to thank the
U.S. em bass dethailand to bring all of
the support to me me and CP. One important
message I want to echo again, he said for
all of the investor and this is something
just to represent one of those is also CP
we have to ensure the business and
investment we made has three benefit
principle that means what we invest must
first benefit the country we invest.
Secondly the community we engage. And
thirdly, giving back to the company and
shareholder. This make most sustainable
investment in business that is something
we are committed whatever the technology,
whatever sustainability we adhere to this
kind of contact anyway.
BECKY FRANKIEWICZ Thank you Tom?
TOM ERIXON: I think you heard from the
panel unrehearsed I might add that the
technology optimism is relatively big in
this group. And I think that doesn’t
match so well with part of the public
discussion going on today which is
robotics autonomous units and other things
lead to massive unemployment I actually
don’t believe that for a second. My belief is that technology is
hear to develop people to smarter people
products and services to better products
and services I think that is the
promise of what we are talking about today.
BECKY FRANKIEWICZ And the history of every
time we face technology by the way that we
have created new jobs not net new jobs
versus destroying job. I want to recap a
couple of things I heard from the panel as
we heard we first heard Boonchai talk
about the he ecosystem the United States has
to offer whether it’s from local
partnerships with states the demand that
the U.S. economy represents or the
education support that we actually heard
Renato and Boonchai talk about we have an
ecosystem ready for development. Mathew
added a couple of times if you heard him
it’s easy to do business here he has done
business in several other parts of the
world it’s easy to do business in the
United States of America. Tom talked
about the U.S. stands out along with China
for support of organizational growth and
the trend we see on decentralization of
head urt quakers kree it I can’ts an
opportunity actually for work life
balance. I appreciated so much hearing
several of our panelists not just talk
about the business side of what they do,
but the people side the human side of what
they do whether it’s work life balance or
community involvement that you heard
Boonchai talk about one of the three
pillars of his company. I appreciated
that. Of course we had Renato open us
with it’s a great time to be alive.
Boonchai says we are saving the earth.
And also, Renato talked about IOT meeting
AI. And then I loved Tom’s closing
comment when he said, by the way we know
this to be true, the story line has to
change from will robots take my job to
what’s the role in humans augmenting
technology and leveraging human capability
for higher order work and processing.
Technology is changing the way we work
around the world and right here in
Washington, DC and acks kro the
United States of America. The defining
challenge of our time will be harnessing
technology for improvement in quality
sustainability efficiency you heard many
of the panelists talk about today but also
harnessing technology for the rekailg
of — rescaling of our population.
Because the population growth is slowing
globally with a couple of exceptions the
defining challenge will ensure we have
people ready and able to do the work that
we have not just today, but tomorrow. So
the final thought that I leave you with is
something Renato introduced the future is more about what you can do
versus what you have done in your past. So,
with that I thank you all gentlemen it’s
been a real pleasure thank you for having us
have a great rest of your conference. (APPLAUSE).
(APPLAUSE) .
(Video plays) .
SPEAKER: I came to Portland from Thailand
I was drawn to the friendly people and
mega culture you can do anything in
Portland. Portland is known for food
culture. We have every type of food from
high end dining to other food. While here
in Portland you have to try the food from
the food carts there are 600 to choose
from this is mine I take Thai chicken and
rice. If you are downtown make sure to
stop by the for rest park. For a great
view of the city. There are so many
unique places you could only find in
Portland. It’s so much fun to explore the
shops here. And there is no sales tax.
Any style is in style in Portland as long
as you make it your own. Welcome to
Portland you are going to love it here. (Music).
(Video ends). ANNOUNCER: Ladies and gentlemen
please welcome back to the stage the
honorable Karen Dunn Kelley deputy deputy
secretary of the United States Department of
Commerce. (APPLAUSE). (APPLAUSE).
HON. KAREN DUNN KELLEY: Good morning.
I hope you are all enjoying the conference
as the days go by here. This morning I am
here and it is really a pleasure and an
honor to introduce the 14th United States
Secretary of Energy, Rick Perry. Prior to
joining the Trump Administration to lead
America’s main nuclear safety, traditional
energy, and alternative energy agency,
Secretary Perry served as the 47th
governor of of the State of Texas between
2000 and 2015. As governor, Secretary Perry led
the great State of Texas in an
unprecedented 14 consecutive years, that makes
him the 10th longest serving
governor in United States history.
After his first two terms in office, the
people of Texas elected Secretary Perry
for an unprecedented third term as
governor, why? The reason is simple. He
got things done. As governor, Secretary Perry
oversaw the rejeuf nation of Texas after the
Great Recession. Bringing down
unemployment rates from the peak of 8.3% in
2009 to 4.5% when he left office. While
keeping Texas’ unemployment at rates
below the national average. Aztecs as
economy grew enormously during his ten tour.
Annual GDP rates estimated for Texas
show $931 billion economy in 2000 to $1.49
trillion economy in 2015 that’s a growth
rate of over 6 60 — over 60%. At the
same time Texan as real per capita income
grew by 10,000 dollars or 23%. Far
higher than the national rate.
Secretary Perry can rightly take credit
for much of Texas’ economic growth during
his tenure. While governor, he pushed for
pro growth policies and tax reform, he
signed into law a $15.7 billion property
tax cut in 2006. Furthermore, he presided over a
profound period of foreign direct
investment in Texas. In 2016, foreign buyer
sales volume in Texas accounted for
15% of all sales in the state, wow, it is
up from 2% in 2008 quite a growth. What’s
more, Secretary Perry provided during
his time as governor that pro growth
economic agenda to go hand in hand with
prudent environmental policy. As the
state’s population and workforce grew my
millions Texas saw reduction in C02 and
improved air quality during his governor
ship. Secretary Perry is leading the
Department of Energy at an exciting time.
He is overseeing a revolution in
alternative energy sources, as the United
States is achieving energy independence
and becoming next exporter of fuel to markets
around the world. With this, ladies
and gentlemen, please welcome the
United States Secretary of Energy, Rick
Perry. (APPLAUSE). (APPLAUSE).
RICK PERRY: Thank you Karen I said golly
you gave it just like I wrote it down for
you. So, everybody ready to move to Texas
now, right? (LAUGHTER).
RICK PERRY: That’s awesome.
Be sure to tell now senator Scott and
former governor Scott we had the great
competition between the states, and that
still goes on I am sure but anyway deputy
secretary Kelley I am delighted to get to
be here and share with you again all of
you who I think this is our third time to
be at the SelectUSA Investment Summit, and
I want to say a special thanks to
secretary Ross, he is hung up at the White
House for a little bit he continues to be
incredibly valued part of the
administration and given great advice, we
have got some leadership from the country
of Poland in town today, so some great
opportunities there and our other
colleagues I know you heard from already
will including secretary Sonny Purdue at
the Department of Agriculture former
governor I might add. And then the
secretary Mnuchin as well. I don’t
know — I think they may have already
spoken today anyway you have had a great
group of people representing the
administration here. Some of you traveled
a long distance and I want to say thanks
for making the effort to come and to roll
into Washington, DC today. And it’s — I
think there is never been a time with more
possibilities and I am excited about all
of these possibilities that we see engage
a lot of opportunities around the globe.
And I assure you there is no better place
to do business than in the United States
of America. There is not a better country
to invest with than the United States. We
are home to more direct investment from abroad than any other nation on
this globe.
We got a total of $4 trillion in 2017.
Those investments support more than 7
million U.S. jobs and drive more than $60
billion in R&D investment. So, I think
the question is appropriate you know why
should you invest in the U.S.?
By investing in this nation, you are
investing in a place I might add in a
people, with an unmatched record of world
changing innovation. As Secretary of Energy I get to
see that firsthand. Particularly in the
area of energy production. Also in a
host of other areas as well. And it’s
thanks to innovation, we now are an energy
super power. You recall back 15 years
ago short period of time, we were told
that we had found all of the energy that
there was to find. That even if we found any
new sources of fossil fuel in
particular that it was going to be exorbitantly
expensive to develop and conventional
wisdom said that this was the new reality.
This was the new normal.
Fast forward with American technology,
American innovation, and we are in the
dawn of a new energy era in the world and
the United States is leading that.
Today those innovators, those energy
investors not only are enjoying this new
day, this dawn of the new energy era, but
we have a great friend in the White House.
Under the President’s leadership we are
now producing energy more abundantly more
afford blee we are using it more cleanly
and more efficiently. We are obtaining it
from a wider range of energy sources than
anyone ever thought possible. As a
result, jobs are back, prosperity is back
the economy is booming. And rather than
being energy dependent on in some cases
unfriendly nations we are now sharing our
energy bounty and our technology with
friends and allies around the globe.
Today, we are the number one oil and gas
produce producing country in the world.
And we expect to contribute to one half
of the entire world’s growth of oil and
gas production between now and the
year 2025. Think about it. I mean, that is
a stunning set of numbers and a
stunning turn around. Two years ago, the
United States became a net exporter of
liquefied natural gas for the first time
since 1957. And today we are shipping L and
G to 36 nations on five continents.
We are also making incredible progress in
reason newables like wind and solar. Over
the past two years our nation’s solar
energy production has expanded by an
astounding 85%. We expect that wind
generation will surpass hydro for the
first time this year. And that by next year
by 2020, renewables will produce almost 20% of the
total power in the United States. And we continue to lead the
world in reducing energy related carbon
emissions. You heard that right. In nearly
well I should say for nearly two
decades. The United States it has reduced
more of these emissions than any other
nation on earth.
And we have done it without surrendering
one single fuel one bit of growth one iota
of opportunity. We have done so by saying
no to these onerous regulations that some
would use. And, “yes” to innovation, much
of that innovation has come from places
like the Department of Energy’s national
labs. Over the years our scientists at
those labs — I tell people this is the
most interesting job I have ever had. Not
the best job I am still — I still believe
being the governor of Texas was the best
job I ever had. (LAUGHTER).
RICK PERRY: But this is the most
interesting job. (APPLAUSE).
RICK PERRY: When you think about these
national labs and the areas that they have
changed, the innovation the technology
that you have seen whether it was you know
the scientists and engineers over there that decoded DNA kick start the
development of the Internet brought safe
drinking water averaged the globe we
pioneered nuclear safety modeling assisted
in the shell gas revolution that’s going
on. They have ignited the LED revolution
in lighting that’s occurring.
They are powering spacecraft to other planets. That’s a fascinating
portfolio to say the least. Last year we
made direct investments of nearly $15
billion to the national lab system, and
I will tell you that is an incredible
value that we are receiving back as a
people and not just in the um states but
globally. According to a recent paper from
the National Institute of Standards
and Technology. Between 1996, and
2015, academic technology transfer
contributed up to 1.3 trillion dollars in
gross industrial product. Almost $600
billion in gross domestic product and
4.3 million jobs. Yet — I mean that’s a
great story. But I like to see more. And I’d
like to see a greater return on your
innovation portfolio as well as find new
ways to boost our economic
competitiveness and bolster our national security.
And one of the best ways we can do it is by
partnering with the private sector. And to make it happen we increased
the profile we have expanded the portfolio
of our office of technology transfer
and chief commercialization officer. And
we brought a number of innovative programs
under the stewardship of that program.
So, in addition to supporting industry
incubators like chain reaction innovations
at Argon national lab the psych Louisiana
tron road at Berkeley lab on the west
coast. Giving researchers entrepreneurers
access to our national labs helps further
develop their energy and science
technologies. So, in addition to that we
have also continued to hold a series of
innovation X labs. These are events that
are designed to cultivate engagement
between the Department of Energy and the
private sector. As a matter of fact I spoke at
our most recent X. lab summit in Oak
Ridge Tennessee at the oak Oak Ridge
national lab. We focused on advanced
manufacturing. As a matter of fact, last week
senator — excuse me, secretary Ben Carson
was on the mall, where he was — he is
showing manufactured housing but it’s 3D
manufactured housing that comes from this
type of technology that is coming out of
our national labs. He also drove a 3D
manufactured vehicle that Oak Ridge
national lab helped build. There is just
fascinating work gone on starting at our
national labs with private sector partners
that is then commercialized into things
that really matter to the citizens of this
country. And listen, I think you can see
firsthand I am pretty excited about the
work that is happening in our national
labs. And they are also home to the three
fastest super computers in the world five
of the ten fastest super computers reside
at the national labs operated by the
Department of Energy. And the next
generation X scale machines are just
now — well, very soon coming online. We
are going to be able to both in machine
learning and artificial intelligence start
making impacts in the world whether it’s
on medicine whether it’s on a host of
different areas. That are truly world
changing, a I is already been used to make
energy exploration more accurate. And
they optimize the security of our
electrical grid system.
Increasing energy efficiency. DOE fueled AI is also being used
to reduce traffic jambs. Strengthen our
cybersecurity. Predict extreme weather,
improving emergency response. And even
develop better treatments for cancer and
traumatic brain injury. Everyone, every one of us this
starts becoming very personal. It becomes
something that is not just some far away
idea that government is putting some money
in. What’s happening at our national
labs what is happening at the Department
of Energy working with our private sector
partners, is real impact on real people’s
lives. If you have a family member with
one of those maladies and the work being done
at your Department of Energy labs is
saving their lives literally or making their existence
better, then I hope you see that this
beginning, this dawn of this new energy
era if you will it’s not just about the
fuels that we have, but it’s a host of
different areas that artificial
intelligence and the revolution that that
is creating is fundamentally going to be
transformational, just as much as the
industrial revolution was before.
That’s why DOE will continue to build on
its global leadership, and high
performance computing. We are not just
benefiting this nation and our people but we are literally
benefiting the world.
Now, another way to promote public-private
partnership is through supporting domestic
energy projects expanding our L and G
export projects. As a matter of fact we
were just with our friends from Poland
signing a new memorandum of understanding
on the civil nuclear side of things as
well as an L and G contract, long-term
contract sending that L and G halfway
around the world. The bottom line is this: The
Department of Energy is and has been and will
continue to be your champion here at home.
That more than any other reason is why we
are gathered here today.
The world is very eager to engage with
America’s energy industry, I know that. I
stay on the road a lot. Back last week
from three different countries in Europe,
and the week before that, and to other
areas around the globe. And south
America. So, you know whether it’s
expanding the L and G infrastructure
opportunities in Europe, whether it’s
securing the import agreements for UScoal
to the near east or sharing promising
emission reducing technologies worldwide,
the American energy company represented
here in this room have a tireless advocate
at the Department of Energy and I especially appreciate your
interest in investing in this
nation. And I hope you will come a way with the sense
of the incredible work that’s going on
in energy, and technology, and innovation.
And you are figuring it out how you can
be a part of that. So, I think if the —
there is a big old open for business sign
right now in this country. And investing
in America. By doing that you are
investing in maker.
investing in Americans in the people in
the individuals. In this proudly
innovative energetic and free people.
And you are also investing in America’s
future and all of the tremendous promise
that that has, thank you.
(APPLAUSE). (APPLAUSE) .
(Video plays). SPEAKER: what makes us so unique
we have a wonderful blend of the culture
quee seen and out standing community
festivities I
am from sleefer port area. There is
always something to do, sometimes it’s a
big giant festival or parade or you are taking these intimate places to
eat downtown which is this bistro
you get a slice. Delicious taste and
sights and sounds all in one place. There
are some things that you can do at the
board walk enjoy all of the different
shops, and stores and restaurants. You
know one of the craziest experiences we can
have zip lining right there at gait tores
and friends that’s the craziest
thing to do. What makes it so special is our
culture diversity the people and the
various ethnicities that we
celebrate in our area. One of the places that I enjoy
going is right here at Southern
University Museum of Art here we where celebrate
African and African-American experiences
through art and artifacts. One last thing
that I want you to remember, no matter who
you are, no matter where you are from no
matter what you look like no matter who you
sound here we hear in Shreveport we want to give you
one big welcome. Pa. (Music).
(Video ends).
(Music). (Music).
(Video plays). SPEAKER: For a global business
coming to the U.S. market is not just a
good idea but a must. It makes no sense
to go anywhere else. If you want to
grow your company, yeah go to America.
SPEAKER: there is an he can key system it
starts with the educational institutions
that are among the top in the world.
SPEAKER: A proven track record of
innovation with excellent protection of
intellectual properties.
SPEAKER: Also the legal system in the U.S.
is very, very stable. Very, very well
understood. SPEAKER: There is a capital
system promoting entrepreneurs
business. SPEAKER: I had an incredible
experience with the work workers I have
employed in America.
SPEAKER: We have all kinds of faces our
factory it’s 40 nationalities 7 languages.
SPEAKER: This he can key system grows and
thrives and flourishes this has produced
some pretty tremendous success stories.
SPEAKER: The United States does offer a
level playing field it doesn’t matter
where you come from. SPEAKER: As time goes
on success breeds for success.
SPEAKER: It’s quite a daunting task taking
your business overseas into a New Market
into a country where I essentially didn’t
know a single person. SPEAKER: Part of that
challenge of coming to the United States was really
to understand how Toto a Japanese
company would go beyond just an
Asian-centric business model into a global
business model.
SPEAKER: SelectUSA is a point of contact.
SPEAKER: The access that companies have at
the summit to the highest level of the
federal government plus all of the state
and local agencies for us it was an
unparalleled opportunity to access all of
the people in one place that we need to
make our transition to the U.S. easier.
(Music). SPEAKER: That’s the biggest
mistake I made is I can do this myself.
SPEAKER: There are folks you can come talk
to that will give you a sense of
confidence that by putting a footprint
here on the ground you will find success.
SPEAKER: In New Zealand I have been in the
rock claiming — rock climbing market for
20 years and I got to three locations.
Here in America, I was open for one year,
and we were moving into the franchising
model. That is really what America does.
So quick. SPEAKER: As you think about the
innovation that you have in your company,
if you can bring the innovation and
integrate it into the entrepreneurial spirit of
the United States and grow your
business, you have the opportunity to really
gain some significant market share.
SPEAKER: This is the land of opportunity
and freedom. SPEAKER: Step into it engage,
you are going to find an feunt to find
success because if you can make it here,
you can make it anywhere.
(Music). (Video ends) .
SelectUSA. Wednesday, June 12, 2019 .
ANNOUNCER: Ladies and gentlemen please
welcome back to the stage the honorable
will bus Ross to moderate a discussion
with Ivanka Trump and Barbara Humpton on
workforce development. (APPLAUSE).
(APPLAUSE). HON. WILBUR ROSS: Thank you.
It’s me again. And a big thank you to
secretary Mnuchin for being with us a bit
earlier. I hope that you found his speech
as informative as I did.
Now we move to another really big priority
of this administration and of this
country, the American workforce.
As I have met with a lot of you
individually this week, biggest problem
most of you have come up with is the
workforce. And that’s what we are here
today to try to deal with. As every
industry is being revolutionized by
digital technologies there is a growing
need for highly skilled workers in every
enterprise. Companies throughout the country
are scouring community colleges,
universities, and technical training
institutes wherever they can find people. Employers
are creating apprenticeships and are
working with school systems to orient
education more toward the practical needs
of the workplace.
Today, with the lowest unemployment rate in 50 years, there are a million
jobs open than there are people
unemployed. Yet the labor force
participation rates remains stubbornly low and there
are pools of potential workers throughout
the country who may benefit from the
training they need to enter an exciting
career. Workforce development is core to
the President’s economic agenda,
along with tax reform, regulatory
reduction, and free and fair trade.
It has been part of the economic agenda
from day one. And that is largely thanks to
the person who is sitting next to me on
this stage, Ivanka Trump. Thank you Ivanka
for being here.
(APPLAUSE). (APPLAUSE).
HON. WILBUR ROSS: It’s my pleasure to
serve with you as co-chair of the national
council council of the American worker.
We are also joined on the stage by
Barbara Humpton, CEO of semiconductor —
of Siemens USA who thankfully has
also taken a leadership role in this issues
thee is a good soul in helping us.
(APPLAUSE). HON. WILBUR ROSS: Barbara’s
involvement has been driven in part by the
success she has had having her company adapt
this very successful German training and
apprenticeship leadership program. Before
we get going let me just say a few words
about our discussants. Ivanka as everyone
knows is an accomplished author who has
written two best sellers, a very tough
thing to accomplish once, much less twice.
And before devoting herself full-time to
public service as advisor to President
Trump, she was an accomplished business
woman with a popular line ever clothing,
hand booing bags, jewelry, shoes and
accessories. As a graduate of the Wharton
School at the University of Pennsylvania,
she has closed some very large real estate
deals. Including the wonderful Trump
hotel here in Washington.
She’s also been active in many, many
charities. However, most important of
all, she is the mother of three children
and we know how did — how hard that is in
and of itself. Ivanka is truly committed
to rebuilding the U.S. economy. She
understands how important manufacturing is
to local communities, and to the workers
that are the backbone of the country. We
are also fortunate that Barbara Humpton
has agreed to participate in this
discussion. Barbara is one of America’s
leading executives CEO of Siemens USA
which employs 50,000 Americans and has
more than $23 billion in revenue. The
company is an international power house
with more than $5 billion in in exports from
the U.S. alone. Prior to joining Siemens,
Barbara was Vice President at Booz Allen
am Milton and earlier was the
vice-president at Lockheed Martin. She is
passionate about workforce training
issues. And she is a member of the
president’s American workforce advisory
board, and is helping to develop and
implement a long needed national strategy
to train the next generation of skilled
workers. Barbara is providing the
National Council for the American worker with the
latest thinking and experiences from
business, education, our states and
cities, organized labor, and other
institutions that have a role in educating
and training American workers.
Thank you both for being at the SelectUSA
Investment Summit. So let’s get started.
This is a question for both Ivanka and
Barbara: Why has the workforce issue
risen to the highest level of importance
in industry and government?
IVANKA TRUMP: Thank you so much secretary
Ross it’s a great honor to be included in
what is a truly remarkable annual summit.
I think this is the 6th year this has been
ongoing. And the number of deals that
have been generated through this dialogue
is truly impressive. So, I know this year
is the biggest and most robust yet. So, I
applaud you for your leadership on that
front. The reason this room is full is
because the President has fulfilled his
promise of ensuring that we adopt
pro-growth policies and pique the interest
of investors not only locally but from
around the world. We worked very, very
hard together to ensure that tax reform,
long, long long overdue tax reform and tax
cuts were put into place not only to
benefit American families which our tax
cuts do evidenced by all of the data
showing that Americans are taking more
after tax pay home, their hard earned
dollars going back into their pockets
where we belong but cutting the corporate
rates to assure that American business can
compete with business everywhere else in
the world on a level playing field. So,
having passed through a massive tax reform
package in the last congress, coupled with
aggressive deregulatory agenda when when I
say that common sensory regulation.
For years we have had layers and layer and
layer sort of like the licensure issue
put into place that some cases is well
intended but doesn’t yield the ultimate end
goal or in some cases is just antiquated
and were put in place for a different
economy, and for different needs. So, we are
pulling that back very aggressively
maintaining the regulations that are important
for safety and wellness of obviously the
American worker, society at large, and
all of the other elements that are so
critical. But pulling back the layers that
have impeded business and thwarted growth
especially for small businesses and
entrepreneurs. So, today I am here doing
something that President Trump committed to
doing early on in the days when she was
campaigning which was really being a
cheerleader for this country. He made it very
easy because of what the
administration has been able to accomplish to make
sure that this room was brimming with
people who are interested in the opportunity
and investing their capital right
back into the United States of America.
So, I welcome you. I applaud you. I
think you are clearly making the right
decision. And we are going to ensure that
we are doing everything within our
power to rise to the occasion to make sure
that your investments have the pipeline of
talent coming out of our schools K
through 12 our apprenticeship programs which
are expanding rapidly and working in
collaboration with you and with the
private sector to ensure that mid and late
career workers have the opportunity to
continue continually be trained in the
skills that are relevant in this incredibly
fast moving digital economy. So, one
of the things that as a nation and
across the world we need to disrupt is the
fact that education happens during a
finite period of time in our lives. And this
is something through the
development of a national workforce strategy in
conjunction with the best and brightest
minds from across the country Barbara is on
our workforce advisory board that
informs that work. Tim kook Jenny Rameti
bipartisan governors and mayors from across
the country. We are vi thinking
about the development of a national
workforce strategy that is responsive to
the skills that are in high demand for the
lucrative high paying jobs that exist and
are being created every single day by
people like yourselves. So, I applaud you.
Thank you for being here. And thank you
for your commitment to the American
worker because today we will be announcing that
60 different companies representing
12 different countries will be
committing to reskilling close to 900,000
American workers through apprenticeship
opportunities and re-skilling over the
next five years so thank you.
(APPLAUSE). IVANKA TRUMP: Thank you for that
incredible commitment and Barbara knows as
a foreign-based company with substantial
investments here in the United States,
this is not only the right thing to do to
give back to the communities and the
communities from where your workforce come
and ensure that their skills remain sharp
and relevant for the jobs that are being
created by our companies but it’s also
good business. There is a positive return
on investment for this continual
investment in what is the best workforce
in the world so thank you for having me
here. And thank you all for coming.
HON. WILBUR ROSS: Barbara what are the
biggest challenges and opportunities your
company faces in the U.S. labor market?
BARBARA HUMPTON: You know first of saw
thank you secretary Ross and Ivanka
inviting me to be a part of the advisory
board and to be here today with all of
you. A year ago I began my role as the
CEO of Siemens USA and SelectUSA was one
of my very first official duties in my new role. It’s been a fantastic
year when I received the call from sec Ross
asking for my participation in the board he
said something very, very important
which is: This is a commitment to action.
We are going it get things done. And
that is absolute music to my ears. I
know use sick to the ears of business
people everywhere. As Ivanka mentioned
tax cuts and basically changing the
regulatory landscape so that we have the
conditions to advance our businesses that’s
incredibly powerful. Now the greatest
challenge we have is also the greatest
opportunity. I think with the record low
unemployment in the U.S. businesses are
looking in all kinds of new places for the
talent they will need for the future. And
drawing more people off the sidelines
into the workforce.
And so, we really suffer from I will call
it a stigma and a myth, the stigma is
manufacturing is that dark and dirty
business that you know of 50 years ago.
And in fact, what’s happening today is an
absolute revolution and evolution of
manufacturing to bring in new digital
tools. But that brings us to the myth
which is that robots are going to take
over our jobs I know you have been talking
about this with other panelists today.
Honestly the way we few it as Siemens is
the technology helps us to elevate the
role of the human. Technology helps us expand what
is humanly possible. What I look forward
to is working with others like us
Siemens here in the U.S. because as a
community what we are able to do is work
collaboratively to draw more people into the
workforce and teach them the skills of the
future. Ivanka just to expand on that a
moment if I may Barbara I am glad you
brought it up technology enables us to achieve
inclusive growth of populations that had
previously been marginalized or unable to
do certain types of work. So, today I am
very proud that in this country the
unemployment rate for Americans with disabilities
is the lowest in history. Technology is enabling
people to work with heavy machinery
augmented by robotics. So, it is — it is
just a remarkable thing. And we see this
in terms of the numbers you mentioned
people coming off the sidelines the fourth
quarter 2018, 73% of the Americans who got
jobs came from the sidelines of the
economy, not from unemployment. So,
people are coming back because there are
great opportunities. People who have been
out of the workforce. Women
disproportionally benefiting from the
Trump economy. 60% plus actually of all
new jobs created of the close to 6 million
new jobs created since the election have
been secured by women. So, it is an
incredible moment in time and it allows to
your point, employers and really forces
employers to get creative in the way they
should be getting creative about how they
are hiring open up the aperture of who
they are interviewing which is something
we are working closely in terms of the
council but we wanted the advisory council
we nt with ad this national workforce
council to be as Wilbur said action orient
the. I think the fact that we are now
sitting up on the stage having secured
close to 10 million new training
commitments, in less than a year. By the
private sector. To invest in American
workers is remarkable. That in and of
itself. But additionally we didn’t want
this incredible group of individuals to
come and give us a report that gets put on
a shelf with 30 other reports that looks
just like it and collects dust. What we
asked the advisory council to do for us in
addition to fueling the pledge and
encouraging their supply chain and their
friends to come along and sign it we gave
them four very specific tangible items we
wanted them to work on number one is to
create a campaign to promote multiple
pathways to career success. We know that
there are multiple pathways in milker ka.
Today we have the lowest unemployment rate
ever recorded of Americans without — with
some college but not a degree. Working in
the workforce. Incredibly low
unemployment rates. We know there are
many pathways to achieving career success
outside of a four-year college route.
They just haven’t been prioritized in the
same way. So, we love our university
ecosystem I argue easily it’s the best in
the world. But it is not the right path
for everyone. So, exposing people to the
different opportunities in the skills
trade that is high tech work that doesn’t
require a four-year college degree. The
second is ensuring data transparency.
Each employer knows when they say, each
job seeker knows what skills are required
to fill the job vacancy the 7.5 million
job vacancies and the employer knows where
they are there is a bet her match in items
of the data being generated by the private
sector and U.S. government to enable a
transparency that benefits all. The third
is around HR practices and modernizing
them to make sure that second chance
hiring becomes an opportunity jobs that
don’t require a college degree, HR
professionals aren’t inadvertently
disqualifying applicants because of the
queas they aring ask. Rethinking the
process. And then the fourth very
significantly, which Secretary Ross has
been such a cham champion for is making sure we
are quantifying the value of this
investment from an ROI perspective.
Because companies balance sheets play
games when it comes to workforce
development and workforce investmentings
this is an asset. This is an stop asset that’s
being created for the employer. It should
be categorized as such. We should have
real measurable metrics around what is
working, what constitutes investment in —
in their workforce and continual
education. And making sure we are sending
a clear and consistent message. We are
quite excited about all of these goals and
Barbara has been really leading the way on
this last one. HON. WILBUR ROSS: A number of
people here have asked how can businesses
best partner with government educational
institutions and other organizations to
develop a killed workforce? O.
BARBARA HUMPTON: I’d love to jump in on
this one. HON. WILBUR ROSS: Jump.
BARBARA HUMPTON: There is a cool thing
happening right now where communities
across the nation are really getting
active on this topic. You know, what we
will rear liesing is that no one business
can provide all of the skill training as
Ivanka said earlier we are not — we are
no longer in the period where you can go
to school for four years and get
everything that you need to know for the
rest of your life. We are looking to
educational institutions to prepare people
not for jobs but for careers. We are
looking tore businesses to join together
and help create ecosystems of skills
development I will give you an example of
one Siemens has gotten involved in we do a
lot of smart infrastructure the technology
that’s in buildings to make them more
comfortable and secure. Well, how many
building managers do you think are
graduating out of high school programs
today what we have needed is to help
create a pathway so folks can get
certified in the technologies for this
kind of work. We created a nonproprietary
skills training program we are making
available through community colleges.
Nonproprietary is important. Because what
we are finding is that helping our
competitors, helping our customers,
actually helps the whole community. So,
what is great about a venue like
SelectUSA, is the idea that you in one
place have access to all of these
departments of economic development for
the states. You have access to
secretaries of commerce from the state.
It’s one-stop shopping to find the right
communities for the kind of work that you
want to bring here to the U.S.
HON. WILBUR ROSS: Great there is another
question for you Barbara what factors do
you consider when you are contemplating a
new investment in the U.S.? And how do
you ensure that Siemens will have the
highly skilled workers that you need.
BARBARA HUMPTON: Great question. And
people don’t realize that the work that we
do here in the U.S. accounts for about a
quarter of all of Siemens’ business
globally this is our largest market by
far. Siemens is over 170 years old in
1847 when the business was started it
would have been a garage start up if
garages had been invented.
(LAUGHTER). BARBARA HUMPTON: What he did
very early in his business he chose to come to
the U.S. we have been here for 160 years.
And making investments all along the
way. Why? Well, because there is
such a rich customer base here. Right? We
can find people who need all of the
products and services that we provide as a
large infrastructure company.
But more than that, we have access to
talent we have access to this educational
system. My colleagues from
semiconductor — from Siemens around the
global want to take rotational assignments
in the U.S. because of the ability to
participate in the vibrant economy. One
of the most critical things is the rule of
law. And the regulatory framework that
allows us to own our intellectual
property, and know that we can propagate
that as we grow here in this very
fascinating market of ours.
Actually, one of the things that I want to
share is in addition to all of that, is
the idea of a rich research and
development community. Our university
system actually brings many of the best
and brightest what around the world into
contact with us. So we can do joint
collaborative development. And what we
have started doing at Siemens over the
last few years is then building out,
making investments in a business ecosystem
I have had colleagues at Siemens have a
fantastic idea spin it out into a small
business in which Siemens ourselves
invested because we think, this is
something that’s going to not only disrupt
us but advance us. So, the small business
ecosystem that exists here in the U.S. is
incredibly powerful. We figured out that
based on the work that Siemens does around the world,
we account for job creation of about
800,000 Americans. Think about that.
So, yes it’s more than the 50,000
Siemens employees it’s the work we do
for others on behalf of the corporation.
HON. WILBUR ROSS: Well that’s great. Well
to do either of you have any closing
thoughts because I am afraid we are
running out of time I know there are a
million topics to be discussed Ivanka do
you have a closing statement?
IVANKA TRUMP: Well I think everyone is
here because we very least piqued your
interest and the opportunity to invest in
the United States if you haven’t done so
already. But we would encourage exactly this action for all of the
reasons that we have mentioned. There is no
better place to exist today and tomorrow than
in the United States of America. And
we will ensure working in partnership
with each of you as with American educational
institutions whether they be community
colleges, our four-year universities, and
plus plus, to make sure you have the
workforce that you need, and to make sure
that the American workforce continues to
be the best and the brightest anywhere in
the world. HON. WILBUR ROSS: I just like to
make one closing thing, which is those of
you who have not filled out a pledge
there is still time, and so, my staff
will have the forms I will be very grateful if
we could sign up another couple hundred
thousand people before we leave this
conference. So, thank you for your
attendance here. IVANKA TRUMP: Also no pledge is
too small. We are really excited to be
working with small businesses. As they think
about reskilling their workforce. So,
we have had businesses come to the White
House website, sign the pledge to
reskill, three, four workers which is a
big commitment if you are a small
business. But they recognize that it’s the
right thing to do for their workforce
it’s the right thing to do for their
company and company’s future. However big
the pledge is whether it’s large like some
of you who have signed we have had two
pledges signed for a million reskilling
opportunities or whether it’s one worker that you
are offering apprenticeship to or
on-the-job training opportunity to we
encourage it all once again thank you for
your participation today.
HON. WILBUR ROSS: now that Ivanka hinted
there may be an opportunity for the White
House you really better sign up.
(LAUGHTER). HON. WILBUR ROSS: Thank you all
for listening.
IVANKA TRUMP: Thank you.
BARBARA HUMPTON: Thank you.
HON. WILBUR ROSS: Thank you panelists.
(APPLAUSE). (APPLAUSE) .
(Video plays).
SPEAKER: I am very pleased to witness
Jetton biotechnology’s announcement of its
plans to invest in the state of Idaho.
SPEAKER: This case really demonstrates
that small and small- and medium-sized companies
investment opportunity in the U.S. is
possible. SPEAKER: To the executives at
Jetton biotechnology you are going to
love being in Idaho it’s wide open Vistas,
the plen door of the snow capped
mountains with bluffs and canyon lands.
SPEAKER: We have such natural beauty. We
have high quality of living.
SPEAKER: The weather and the wilderness,
the lore and the culture of the Wild West.
SPEAKER: Our government at all levels
supports commerce and better jobs.
SPEAKER: Jetton’s investment in Idaho is
another example of Taiwan’s ability to
take advantage of investment opportunities
identified in this valuable initiative.
SPEAKER: Your investment in a
manufacturing facility Nampa creates more
than 25 jobs in southwestern Idaho.
SPEAKER: Thank you everyone and thank you
for coming. (Music).
(Video ends) . (Music).
(Video plays). SPEAKER: We have so much to do
here I want to welcome you to Wichita
Kansas. (Music).
SPEAKER: One of the most unique places
Wichita has to offer is old town museum
you can travel back in time to see what it
looked like in the 1800 another must see a
keeper of the place iconic landmark of
which Wichita we light the fire pot
it’s one of the most remarkable experiences.
Our restaurant scene is pretty great
too I bet we have more hummus per capita
than any city in the midwest if
you wanted to tried every hummus dish in town you
need to stay at least a month. Think of all
of the incredible things happening in
our city. I can’t wait to see you in
Wichita. (Music).
(Video plays) top stop.
(Video ends). (Music). (Music).
(Video plays). SPEAKER: One thing about
Richmond there is something to do every weekend
welcome to Richmond. (Music).
SPEAKER: We are going to get up and
definitely have coffee in the Manchester
area. The cultural diversity here in
Richmond again encompasses all of the
things that we have to offer. We will
probably hit the night life anywhere in
the — probably hit a lot of different
bars there because they are so loyal to
local we know we can get local wine and
craft beers at any of the bars in
Richmond. Virginia is for music lovers if
you know any artists from Virginia so many
different artists that are coming from
right here out of Richmond and getting
that exposure nationally. Being in
central Virginia, one of the good things is that it takes two hours to
get to the beach two hours to get to DC two
hours to get to the mountains you can
come to Richmond and explore the other
areas on other days and still come back
and see what else the city has to offer.
This is Richmond.
(Music) .
(Video ends) .
ANNOUNCER: Ladies and gentlemen please
welcome to the stage Nina Urban at Johns
Hopkins to moderate a discussion on biotechnology. NINA URBAN: Okay,
testing. Good morning. My sense is that we are getting
close to the end. So, thank you for
lingering. And I am very excited to be
moderating this panel. So, I am currently
associate director of Johns Hopkins
recently established fast forward and we
support start ups at Johns Hopkins
University just up the road in Baltimore. I
found and ran a platform biotechnology company
based on university intellectual company
worked for the governor of Georgia running
the state technology incubator in Atlanta
testified in Annapolis on behalf of Johns
Hopkins University start up ecosystem
and been active participant in economic
development initiatives in Baltimore I look
forward to hearing from the three bio tech
directors and governor of Michigan about
what the U.S. has to offer for foreign
direct investors. Directly to my left
is Duane Barnes president of UCB
incorporated and head of U.S. patient value
operations overseeing operational
activities in the U.S. he works cross functioning
across the healthcare ecosystem to improve
access and find new ways to deliver value
to patients. UCB is a global bio
pharmaceutical company focused on severe
diseases that have significant unmet needs
with a team of approximately 7500
employees and operations in nearly 40
countries. Global headquarters is brus
sell Belgium Atlanta Georgia clinical
development in Rolley Raleigh, North Carolina a
policy office here in Washington, DC and
research supporting UCB’s pipeline in
Boston, Massachusetts and Seattle,
Washington. UCB also have an office in
Durham North Carolina and a solution
accelerator on the campus of Atlanta.
And next in line we have Bruce Heugel is
senior vice-president chief financial
officer and member of the board of
directors of Le brown medical ink. They
developed manufacturers and markets
innovative medical products and services
to the healthcare industry. Their primary
manufacturing facilities are located in
Allen town pen va Irvine California Carol
ton Texas and the Dominican Republic.
Prior to joining the company Mr. Heugel
spent 22 years working in 19 countries
with fortune 100 companies.
Next is Mr. Lance Choi who serves as head
of CJ corporation bio business in North
America. VJ is — CJ is headed in Seoul,
Korea. Mr. Choi is overseeing CJ sales
team and manufacturing in Fort dodge eye I
Iowa it is a major contributor to
well-being in Fort dodge. And finally, we are
honored to have O Governor Gretchen
Whitmer. A lifelong Michigan-er I don’t say
it right I am sure elected to the House
of Representatives in 2000 elected
to the Michigan State senate in 2006
where she served as senate democratic
leader. In the 2018 election Governor
Whitmer won all 83 counties in the primary and
general election with 53% of the vote.
Extremely exciting. Since taking her oath
of office she has put together the most
diverse cabinet in Michigan’s history
and signed executive directives to cleanup
the drinking water, end
discrimination and state government based on sexual
orientation and gender identity. Secure
equal pay for equal work and expand
opportunities for small and disadvantaged
businesses. So without much more
introductions, I would like to really kick
off the conversation with a question that
I’d like all three company representatives
to address, we can start in order here.
Which is to tell us a little something
about your company yourself, rather than
it being me. And discuss why you chose to
invest in the U.S. and how it’s part of
your long-term growth strategy.
DUANE BARNES: Thank you Nina I work for
UCB a global bio pharmaceutical company
headquarters in Brussels Belgium U.S.
headquarters in Atlanta we extensive
footprint here in the United States we
began operations in the 90s here in the
U.S. why the question would be, because it
is a significantly important region if you
are in bio tech or biopharmaceuticals we
started with ultimately the original plan
was to bring special operations and sales
into the U.S. since then we have developed
a strong clinical development footprint
and new medicine and new med development
footprint as well. Some of that has been
through acquisition some of that has been
through organic growth but presently we
have 1300 employees located in the
United States represented through 8
different locations in the U.S.
We continue just to the last two years we
have acquired two companies in Seattle and
Boston, that have enabled us to really
look at a greater opportunity for new med
development through research.
BRUCE HEUGEL: First of all I want to say
thank you to the diplomatic corps they are
very professional and do an out standing
job. I have been working globally for 40
years and I have to say honestly the
period of the most optimism I have ever
seen been witnessed in my career. I tell
you there is so many optimistic executives
it’s not just the C suite but board rooms
and shop floor. Thank you to the
administration and thank you to the
secretary for all of that work. Three
years ago I was asked to testify in the
senate finance committee, and in
Washington, I did that I remember holding
up charts and because I am a CPA by trade
I am interested in taxes I held up a chart
to say United States you have to lower
your taxes your corporate tax rate is not
competitive. Well this administration
didn’t take very long time they lowered
the corporate tax rates by 40% now we are
world class competitive I want to say
thank you on our behalf of the company
what did we do with the money we gave it
to the employees invested in research
development made new products. B brown
from the 1830’s 180 year old company
family held not on the New York stock
exchange. We are based in north Hessen
Germany for the international folks forth
of Frankfurt all of the good values that
you think of when you think of a good
German company, we have those values.
We over engineer our products in medicine
we are in medical and ph arma are over
engineered high quality and very safe. We
support our workers. We support our
communities and we support the
environment. So, all of those good values
we took back to the United States and
professor Ludwig l brown took a chance on
the United States in 1977 he didn’t want
to be exporter he didn’t want to have a
sales office or distribution office he
said I want to have a manufacturing
facility and started in Bethlehem. That
business grown from 313 employees and $6
million to 7,000 North American workers
and sales of over $2 billion. Really a
success story. Well how many jobs were
lost in Germany and France you transferred
some of the jobs I can honestly say zero
jobs were lost. In fact because now we
have contracts with distributors with GPOs
we know the U.S. medical industry we are
able to actually bring in other products
and so 80% of your products are made in
the United States and we only import 1%.
NINA URBAN: Wanted to clarify you under store scored the corporate tax
rate as being primary in turms terms of
your incentives 1970s there was low
corporate tax rate that cat tal liesed the
investment. BRUCE HEUGEL: Thank you for the
add the add minute — administration —
NINA URBAN: In in terms of why you
invested in the U.S. it sounds like the
1970s that was the — BRUCE HEUGEL: A couple
of reasons. Good point. The investment you know
we have invested because of the success
story. We also reft invested because the
Americans love their medicine.
You know, the statistics are the Americans
pay on medicine 3.2 trillion dollars so
the market is here. The next largest
country pays $500 billion in fact there
is so much wealth here in interest
and technology in medicine, so you
have to be here. That’s why B brown chose
to be here if you add up the next 9
countries the next countries the total
investment is only 75% of what the Americans
pay in healthcare.
NINA URBAN: Thank you very much thrilled
with your enthusiasm and long-term
commitment we will just hear from the
next. LANCE CHOI: Hello I am from CJ
part of the global VJ group it has a four
different main business areas. Bio, food,
entertainment media, and logistics. And
we have annual global $35 million
the main target area is United States.
We want to gre our business in the United
States a lot. And you know currently we
have 13,000 employees in the 47
different states, we want to have
additional 4,000 employees during the next two
years. We are going to invest additional
$2 billion U.S. dollars yes that’s our
target. NINA URBAN: I learned from Lance
not only does he oversee what happens in
the U.S. but Canada and Mexico O. I
would like to after I have a question for the
governor I would like to loop back and
maybe you could ils Lewis date some of the
differences between those experiences.
LANCE CHOI: Yes. NINA URBAN: A slightly different
twist for governor Whitmer if you could
introduce your State of Michigan briefly
and talk a little bit about what your ideas
are around investment and direct
investment. HON. GRETCHEN WHITMER: Certainly
I am grateful to be here on the hon
derful panel I think it’s an
opportunity — upon teurnt for Michigan to show what
we are doing in the biomedical field.
People think about Michigan and
automotive which is legitimate we do have so much
innovation and advanced manufacturing and
research and development happening in the
automotive space where we continue to lead
and created the middle class. But we also
have this rich history on the biomedical
that a lot of people don’t appreciate with
this phenomenal college and university
system that we have and research
universities from the University of
Michigan to wane state to Michigan State.
We have this rich history over 150 years
in the biomedical space. You know park
Davis was located in Detroit. And the
discovery of new medications happened in
Michigan. AZT the first treatment HIV/AIDS
was discovered at wane State
University in Detroit. The leading
chemotherapy drug was discovered at Michigan State
University. And disblan in that case the
anti anxiety medication at the upjohn we
have a rich history and continue, I think
to have this concentration of talent and
research happening in the State of
Michigan that we are incredibly proud of
and eager to expand on this synergy is I
think makes us a state that is ripe for
continued leadership on all of these
fronts. And a place where business can
come and grow with our MEDC, a lot of the
phenomenal programs that we have in place
for business to assess the abilities to
succeed in our state but also to grow.
And that is something that we are
incredibly proud of and continue to lead
on and make Michigan a place where we come
and invest and grow. NINA URBAN: Thank you
very very interesting. Of course I will two topics
touched on in
terms of incentives and as well as the
university entrepreneurial ship ecosystem
which is something that I particularly
focus on maybe we could wrap around again
and talk a little bit starting with Duane
about maybe the relevance of the
university and entrepreneurial ecosystems
and then also feel free to expand into
sort of state regional incentives.
DUANE BARNES: Yes, so we have expanded as
I said our footprint in the U.S. it’s
largely around research and development
and innovation. Why is that? Because
when you look at the systems in the U.S.
we have significant talent we have
significant research institutions, and we
have actually hubs in the U.S. that are
very vibrant and there is a lot of strong
talent in the hubs. We are in research
try ng a gel park in Raleigh-Durham area
we have global clinical development site
there. I will give you a number just in
terms of innovation and R&D. We actually
one out of every five employees in our
company is focused on research and development. 25 cents of every
dollar we make our revenues are north of
five and a half billion dollars U.S.
globally, and the U.S. zoo significant portion
25 cents of every dollar of revenue we
make it reinvested back into research
and development. That isn’t just
over the last year. That is a number
where you are looking back over the last five
or six years as a run rate.
And so, we have relationships with the
innovation lab at George at Georgia Tech a lot of
work in neurology around identifying
opportunities through AI and machine
learning to understand subpop lakeses of
patients and what medications might be the
best for them to go to first. And the
reason for that is because patient value
principles is really what the bed rock of
our organization. The idea is for us to
go from development to delivery of a drug
we need to make sure that we have patient
insights that — that enable our science
to go after the right sort of solutions.
As a result of that, we have benefited
from working with Georgia Tech, working
with Duke and other universities in the
research triangle park in Raleigh-Durham
area we acquired a company in the last two
years that is a spin off from Duke. And
we also are in the Cambridge Boston area
Pacific Northwest and Seattle. The idea
is to go where there is collaboration
where there is innovation and talent. And
find those and leverage those and at the
same time we realize other people are
doing that there is a lot of competition
so, we have to present a unique
propization to people and institutions in
terms of what we are looking at what we
are studying the way we treat our
patient — employees, and the way that we
focus on specific patient populations.
NINA URBAN: Thank you.
BRUCE HEUGEL: I would comment most of the
leading educational institutions in the
United States P have hospitals that they
partner with they have different hospital
systems and they are all our customers we
work with them. We have contracts with
them to provide all of the services that
they need in prondz. That’s really how we
try to partner with education is in their
hospitals. NINA URBAN: Um-hmm, thank you.
Lance? LANCE CHOI: I am from a little
bit different area most of the
people they think bio means like medical
pharmacological. But I am from
biotechnology area. So, you know, U.S. is
kind of heart land of new technology
including biotechnology and the world of
I.T. so we have relationship and we
have — we are working with some companies
in east coast and the west coast to
develop new technology together. That’s
great chance for CJ also.
NINA URBAN: Just as I am thinking while
the centers are highly productive there is
a bit of a die as pore ra of folks and
that includes through the midwest and the
south and to to the extent Governor
Whitmer you are thinking about workforce
development or finding nice landing spots
for those opportunities.
HON. GRETCHEN WHITMER: Absolutely. I
think that I highlighted our university
system and how that’s contributed to many
so of the discoveries and innovations that
happened in the state of State of Michigan. There
are wonderful companies like the striker
company as we think about R&D and
innovation around devices, and
biotechnology, there are some wonderful
work that is continuing to happen in the
State of Michigan. I thinkin’ suring that
we have got the workforce that has you
know the skills, something that is a
leader of a state we are acutely focused
ensuring there are paths for everyone, or
think prosperity integrity for in work in
various fields. But this particular part
of our economy is incredibly important to
our future, to our ability to compete and
it’s one in which the Michigan economic
development corporation is honing in and
developing the infrastructure so that
companies can quickly assess what the —
how — what synergy is happening and how
we can continue to spin off and develop
products in Michigan that is something I
think that is incredibly important. We
have this wonderful concentration of
engineers in the State of Michigan. We
are making use of this great
private-public opportunity and
relationships that we have been really
focusing on building it’s something that
we are going to continue to do that.
NINA URBAN: Terrific thank you and to play
on some specifics I will break our pattern
and go to Lance and to the extent that you
might shed light on doing business in the
U.S., versus Canada or Mexico, and of
course the others can contribute
perspectives as well just to sort of focus
in on what makes the U.S. easier or hard.
LANCE CHOI: Yes, we manufacturing in the
United States and we covering the market
including Canada and Mexico. But we — we
manufacturing you know essentially with
the industry (inaudible) we have to have
sugar source. And you know, U.S. is the
great place to source the sugar source
corn is the main product from midwest we
have to have that we can’t find a good
sugar source from Canada and Mexico.
That’s the reason why we are located in
the midwest. NINA URBAN: We will take that.
(LAUGHTER) Bruce? BRUCE HEUGEL: I really
don’t have much comments except the United
States is complex in medicine. So, it’s
not easier to do business in the United
States than other countries we have to be
honest with that but it’s a way of how you
approach the complexity. And so the
complexity is there but you have expertise and
knowledge and you pay maybe a little bit
more money to ensure that you have proper
litigation control. Proper understand the
tax environment sore the FDA
regulatory environment. So the U.S. is
very, very complex, but you can work around
that by being here, have people here,
knowledgeable experts so it no longer
becomes a burden or hurdle.
NINA URBAN: It seems dynamic of late
particularly maybe you can comment on that
further Duane? DUANE BARNES: I would say first
when you think about the size of the U.S.
and the healthcare system that we have.
The healthcare system is very
complex but in many ways it enables people and
patients to get on therapies and
medicine. So we have large patient populations
in the U.S. we have great opportunities to
initiate trials with patients in the U.S.
because it’s the access to them is
favorable. Based upon certain policies
there are challenges that — there are
challenges today with folks being able to
get on the medicine that they need. And
the medicines that we deal with
immunological and neurological and bone health
disease states are therapies that are
disease modifying. They are not — they
are not just — they are not there to
just provide comfort. But they are there to
enhance or enhance life, create wellness
and modify the disease.
And because of that, we find it very
essential for us to be able to be in a
market where we have specific patient
populations that enable us to gain
insights from those patients and develop
more knowledge around how to treat
patients appropriately.
Today’s policies there are some that we —
that we are concerned about but I would
say from a policy perspective, we look at
the opportunity to enhance innovation, we
look at the opportunity to focus on
volume. Not focus on volume but focus on
value. And to the governor’s state, there
is actually a physician at Michigan Mark
Fenwick with a model value based insurance
design. The purpose of the model is to
assure the patient isn’t harmed or
prevented from getting on more expensive
therapies because their buy biology requires
it if they can’t afford it. So we believe
in patient affordability we believe in
models that demonstrate the drug works for
patients and where it works for patient
and where it doesn’t work for patients
they should be able to move to the next
one without hurdles and challenges through
the payer system. I also comment my father who is
not with us anymore is undergrad of Wayne
state and a graduate of Michigan both
engineer willing degrees when you said
engineering I thought I would comment on
that. NINA URBAN: I think we have a
good picture of the current commitment the
initial reasons and the current
commitments we are hearing sugar hospitals and
patients here. But what I’d love to explore a
little bit more with all four of you are
your future plans and whether you will
continue on the same trajectory or pivot or take
some different directions and I know
this is all just best guesses at this
point. So maybe we will start back with
you and — keep talking.
DUANE BARNES: So fortunate. We certainly
find every reason for us to continue to
compete intensely in the United States.
We look at the policy and legislative
issues that are occurring right now, much,
much resulting from the blueprint, and
analyze the impact on our business and
10-year strategic plan. That’s — I can’t
really comment on that because I don’t
know what’s going to happen in June July
September October. But every month I am
looking at what’s going on here and what
could that impact be to our business.
Irrespective of that impact we will
continue to serve the patients in the
United States with great energy and
excitement. We hope to continue to grow
our footprint. We have economic
investments presently at about $430
million a year in the U.S., and we look at
the opportunities because of the talent as
I said earlier, because of the talent
because of the research institutions and
hospitals, because of innovation, and the
ability to collaborate that this is a ripe
and robust geography and region to
participate in. We hope some of the
policies — any change in legislation or
policy would not hamper the ability for us
to continue to grow. NINA URBAN: Thank you
Bruce? BRUCE HEUGEL: Nina that’s a good
question here what the future is going to
be. Well, what we are trying to do
is really link closely with our customers
which is American healthcare all of the
hospitals we sell to them all. One of the
things that we have seen they are
trying to capture economies of scale and
buying out each other. You all remember
hospitals were a lot more of them they are
merging together and buying out. So as
a result we have to partner with them and
be able to offer the proper products to
them as they grow in size.
So, that’s very close. And in addition as
I mentioned because healthcare spending is
high in the United States there is a lot
of wealth but a lot of pressure, pressure
to have more competitive costs partnering
with hospitals to make sure our products
are very safe yet at a proper value. I
think that trend is going to continue for
a ng L time. NINA URBAN: Excellent. Lance?
LANCE CHOI: Our short-term goal is add
more product line in the United States.
Right now we are manufacturing (inaudible)
products we are going to add an — this is
a huge issue for the American farmers.
And still American farmers is using much
imported products. We want to replace all
of the imported products with our made in
the U.S. A. product that’s the short-term
goal. The average product is like come
mod advertised we want to go to value
added product and service market. We are
going to focus on the human side more
that’s the long-term goal. There is a new
technology like kind of you know general
net evaluation and all of the AI
technology. So, everybody you know can
use those kind of technologies to build
the smart factory. We are thinking about
to go to personalize that area.
NINA URBAN: Great thank you.
HON. GRETCHEN WHITMER: Well I have been
governor six months I was fortunate enough
to inherit wonderful things some — a
great biotechnology tech tore that
represents $20 billion investment annually
in my state. We boast being the home of
companies like striker and neo gen and
Pfizer we are incredibly proud of that
history and the growth that happened in
the sector recently. The Michigan economic
development corporation I think I would put
it up against any of the other 49
states as a–drn an agency that is devoted
to expanding on the strengths that
we have and pulling more investment into
the State of Michigan. And so, we are
going to keep our foot on the gas on those
areas. But I will recognize too that you know
not everything that I inherited is
perfect. And so there are areas that I am
focusing energy on to make sure that we
continue to have the best skilled workforce
around, creating opportunities for
adults to up skill and for graduates of high
school to move into an affordable path
into the four-year research institutions
that we get phenomenal ones that he woo
boast in Michigan as well as two-year
degrees we know in all of these industries
we need people with skills on all of
those fronts. Really boosting and shoring up
the talent that has been hallmark in the
State of Michigan is the challenge and
opportunity on the horizon as we continue to
make Michigan a place where
investments come to and people make their lives in
it’s a phenomenal state of course I am
biased we are home to 2– 21% of the fresh
water in and around the State of
Michigan. Incredible biodiediversity in
the agricultural sector that’s why
we have had such successes around innovating
and vaccines and medical devices,
and they have agricultural impact as well
as on people. So, this is something
that I think is a wonderful opportunity
for us as a state and one that I hope
anyone here paying attention to because I
think that Michigan is a wonderful place
for growth. NINA URBAN: Terrific at this
point I would like to thank all of the pan
panel — panelists I have learned a lot
and met interesting folks I hope you
enjoyed it as well and we will move on with
the day, so thank you.
(APPLAUSE). (APPLAUSE) .
SelectUSA. Wednesday, June 12, 2019 .
(Video plays) .
(Music). SPEAKER: When you look at the
value proposition in the United States
the size of the market alone is makes it
very attractive for companies that
aren’t selling here or aren’t doing
business here today. That is pretty much the
biggest reason I think companies are
drawn to consider the United States the ability to
collaborate with the best universities in
the world to drive innovation those
partnerships that companies whether they
are U.S. companies or overseas companies
those kinds of partnerships they can drive
with American educational institutions and
universities, can really power that next
generation of innovation that all
companies are really locked in on trying
to uncover. SPEAKER: I think too that we
have mastered that art of bringing together
universities and corporates from industry.
So, those are really great partnerships
that I particularly seen Europeans be
very, very interested in.
SPEAKER: It was a natural translation to
come to the U.S. the U.S. market
undeniable is the most important market in
the world I think we have had a great
experience including people who are
diverse, who don’t share maybe the same
culture as some of the people we have now.
But what we realize is they want to be
part of a collaborative culture where it’s
easy to work together and to share ideas
and to be efficient. SPEAKER: I really
enjoy working with the Americans, as people, they are
really personable.
SPEAKER: Knowing what everybody in the
world learns and believes it’s true that’s
cheaper to hire outside of the U.S. let’s
do that in the beginning we thought we had
to outsource everything to Brazil and
other countries not really true. The
quality of work here is way superior to
any additional cost that you may think you
would have. That makes our business more
profitable believe it or not. Because
it’s local. We have great brains and
still work ethics here so it’s a pressure.
Yes. (Music).
(Video ends). ANNOUNCER: Ladies and
gentlemen, this concludes the plenary session we
invite you to join us for lunch and
networking in the exhibition hall think time
thank you for attending 2019 SelectUSA Investment
Summit. (Music).
(Music)

Paul Whisler

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