A pact with China could be a sweet deal
The world's most populous nation is rapidly absorbing more of the world's output of steel, building materials, crude oil and other materials, and Baker was one of 50 attending a seminar in Latrobe on Wednesday, looking for ways to become part of the giant's import feast.
"We compete with the three candy giants, (Hershey Foods, Nestle and Mars), but we have the production capacity to do this," Baker said, prior to listening to a presentation by Steven Zou, the director Pennsylvania's trade office in Beijing. "We are trying to keep the factory open and keep the employees, many of which have been with Boyer for 25 or more years, working."
A year ago, production resumed at Boyer Candy -- the Mallo Cup company -- after a 10-month shutdown caused by a battle over control of the company. Now, Baker said she is working to put a distribution network in place, and candy production has settled at four days a week.
The seminar on business opportunities in China was sponsored by the St. Vincent College Small Business Development Center and Center for Global Competitiveness, and co-sponsored by the state Office of International Business Development and the Southwestern Pennsylvania Commission.
Exporting is nothing new to Jim Burger. His company, Helsel Lumber Mill Inc., of Duncansville -- a fifth-generation sawmill midway between Johnstown and Altoona -- is exporting rough-cut and finished lumber products to Spain, Germany, the United Kingdom and Portugal.
Helsel Lumber also has sold unfinished lumber to China through a broker. Even so, Burger said he attended the seminar to see if there is additional potential for business in China that warrants his company dropping the middleman and adding the expense of working through an agent/distributor.
Baker, Burger and others at the seminar heard that substantial growth in China will continue for the next two decades.
"Fast growth is expected in terms of two factors," Zou said. "The world's largest population, 1.3 billion, and competitive labor costs." Typical workers in China's major cities right now are making roughly $10 per day, he said.
According to Zou, in 2003 the total volume of Chinese-American trade was $126.3 billion, up 30 percent, including $33.9 billion in imports and $92.5 billion in exports to the United States. Through the first half of this year, trade volume hit $76.9 billion, including $22.8 billion in imports, and $54.2 billion in Chinese exports to this country.
While some believe the Chinese economy is overheating, Zou emphasized there remains plenty of room for new export-import partners.
"We've already met with three Chinese companies through the Hardwood Development Council," Burger said. "There is a market for our rough-cut product there."
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