urbanSTL

First two comments on STL Today:

buster1966 February 17, 2009 6:29AM CST

THAT'S THE TICKET, make it even more favorable for imports instead of domestic produced goods. I certainly hope not one penny of my tax money is spent on this type of garbage.

Scott_Simon February 17, 2009 6:48AM CST

I guess the Democrat genius Dooley didn't get the Dems memo - unions hate this. GOP for STLCO Exec in '10.

MattnSTL wrote:Which wouldn't necessarily exclude Cat or Deere replacement parts that are needed fast and are for some reason not available in China at that moment.

A couple subsequent points brought this up as well, and I think it could be very important for American manufacturing units in China already. Considering how many domestic & international firms utilize Just-In-Time Manufacturing practices, maintaining low overhead inventories at the base of operations, an air hub facility may be an ideal way to rapidly deliver quality parts from the original manufacturer, rather than one crafted secondhand. As we consider potential US exports to the Chinese market, Specialized Manufacturing Support (a term I just made up) could be very important.



Say you're a company with (or have clients with) your infrastructure or equipment in China, whether you run a parts machine on an assembly line or manage a fleet of heavy earth moving equipment. Should you have a part that breaks in Wuhan, and time is of the essence in your project, then direct air shipment is the best option. Sure beats the slow boat to Shanghai. An air hub in StL could be ideal for multiple companies to continue supporting their clients down the value chain; such a hub could actually allow firms to run JIT Management in China where they couldn't beforehand.



Expedited special orders such as these could be a huge component in a running air hub. Now, think of all the warehouses that may go in along the periphery of StL, from Earth City to the I-255 loop, to house spare parts for Chinese-based manufacturing, and (dare I say) actual manufacturing jobs in the middle US to support the Chinese economic machine. Man, the potential for this just gets cooler and cooler.

I like where this could lead. It's far sexier than my first thought...



That is 'Trash and Trinkets.' Or Happy Meal toys. You know, the freebies with purchase. Buy two cases of Pennzoil get a NASCAR/Pennzoil hat free.

All that stuff's made in China.



Working in the marketing/promotions biz, the one/two month shipping for these type of purchase incentive premiums - caps, tote bags, umbrellas, Bubba Kegs, etc. - kills flexibility in marketing programs. If it's LCL, youre really screwed. (i'm guessing, but 50K pen lights doesn't fill a 20 ft. container)



Yes, these items will cost more, but with 20K items that price can probably be easily amortized.



bottom line, I'd hate to think of St. Louis as the 'Giveaway Gateway' but it'll still be good...

Now if only we would act as a region on this project. If/when a major corporation decides to come to town as a result of this development you just know that Clayton/St. Louis City/Creve Coeur/Maryland Heights/Florrisant and others will throw out all the incentives they have to lure them in and thereby screwing the region once again!

goat314 wrote:http://www.kmox.com/topic/play_window.p ... Id=3516024



Aye Gone Corporate!

What is your business analysis on this FTZ expansion?

Even if the Chinese do not decide to set up a hub at Lambert, do you think that the expansion of the FTZs at Lambert and MidAmerica will still be beneficial to the region?

A few thoughts on the FTZ expansion:



1. Growing to well over 800 acres of FTZ at Lambert from only 11 rapidly expands utilization potential of StL as an Import/Export hub, particularly for the China deal but potentially for others just as well. That said, I don't care to think too heavily of deals with other major economies, such as the EU or anything potentially SAFTA-related, and am thinking predominantly of the opportunity with China. While others may develop at a future date, China is all we should think of right now.



2. The scale of the FTZ in proximity to Lambert tactically differenciates StL and Lambert from all other potential competitors and discourages potential competition. Say Indianapolis were to consider launching a competing campaign for the potential China hub (which I've never anticipated seeing). While StL already has the advantages of advanced negotiation and currently proceeding facilities and logistics studies, the amount of freshly available FTZ real estate to dedicate to Chinese international shipping now acts to separate the full & comparable utility of the StL deal from everyone else. The advanced preparation and dedication of the StL offer clearly distinguishes what we have compared to other cities' potential late-showing offers.



3. The declaration of the FTZ expansions shows the interest in the StL Business & Government communities, from our ability to develop such lands privately, to the organization of them in packages of available land through coordination with the RCGA, StL City, & StL County, and our elected leaders' lobbying of the Federal Government to make FTZ status available to such large tracts of developable land.



In essence, we're beyond any possible competitor to a US hub considering facilities and coordination.



Addendum: That Dr. Kim at the Boeing Institute says we have a 60% chance at getting the deal done is a great vote of confidence. It behooves him and the Boeing Institute to speak conservatively of such forecasts, and being above 50% is a great sign of faith. Plus, a statement from such a strong leader in StL for globalized business is wonderful commentary to the potentials of such a deal being made.

Opportunity Amidst Collapse



Both the US and China are suffering from the current economic collapse. Without going into the excessive details of it all, what separates and distinguishes this economic downturn, whether an extended recession or a full depression, is that it is the most significant downturn in the advent of globalized capitalist economics, the victory of the Cold War for the West and the advent of the “Flat World” business environment. Basically, everyone’s suffering from our shared globalized economy. While we can point to domestic housing as the impetus, the collapse of the credit markets is truly global.



Within the last year, China has already dedicated $585B USD to economic stimulus. While China remains communist in title, it is de facto capitalist in their economy and needs to reinvigorate their business environment. Economists have said that, for China to keep at its pace of growth (and keep its economy running), it needs to realize growth of 7% minimum in 2009; currently, they’re producing 6.8%.



To spur their economy, they want to increase trade and manufacturing. Funny, in that this is the US’ objective as well.



Tomorrow, Premier Wen will be pitching a new round of economic stimulus to the Chinese legislature, stating that the government needs to add on to the $585B already doled out.

Source: http://www.bloomberg.com/apps/news?pid= ... refer=home

It is assumed that the legislature will support this, as the needs for increased manufacturing will keep their economy going (and keep the provinces content, as many have seen rural unrest picking up). Increasing employment is a major goal, which can be created by supporting businesses in creating & selling product. And, top-down economic planning has been a fixture in the People’s Republic for decades, with the rest of the country following in step the calls to action from Beijing.



Meanwhile, the StL delegation is in Beijing right now, promoting a new port of trade at Lambert & MidAmerica, an opportunity for both of our countries to increase international commerce. The timing could hardly be more perfect.



As the world’s most dominant economies are seeking to expand and broaden their trade markets amidst an unprecedented economic collapse, to spur their businesses as demand has dwindled, the StL Big Idea is being furthered along. The needs for mutually increasing our market presences today most certainly will propel these efforts along at a quicker pace than if things were as they had been in the first half of 2007. It’s becoming less just a great way to capitalize off of each other, and spur development in StL, than it is part of both of our countries' solutions in the near term to reinvigorating our economies, as well as to strategically shore up our economies for the future.



While we all still need to remain patient as long-term strategic analyses & models are implemented & reviewed, the immediacy of our countries’ economic needs add urgency to these efforts. I expect more developmental news to be forthcoming on this subject in the near future.



Dark clouds, silver lining.

^ No idea, but my fortune cookie from the House of Wong yesterday read "big things come to your town". I kid you not.

Related News: Seminar held for real estate experts on the expanded FTZ at Lambert.

Monday, March 30, 2009, 3:59pm CDT

Expert details benefits of foreign trade zones

St. Louis Business Journal



More businesses will save on imports thanks to the expansion of the Foreign-Trade Zone around Lambert-St. Louis International Airport, according to an expert in foreign-trade zone law.



“The ability to defer, reduce or eliminate customs duties on certain imported goods are among the many cost-saving benefits to businesses,” Scott Taylor, a partner with Kansas City-based law firm Miller & Co., said in an address Monday.



About 100 real estate professionals, logistics firms and other companies attended a seminar hosted by the St. Louis County Economic Council and the St. Louis County Port Authority at the Hilton Garden Inn St. Louis Airport.



“These products can be admitted into zones for storage, exhibition, assembly, manufacturing or processing,” Taylor said.



The U.S. Department of Commerce recently approved an 820-acre expansion of the Foreign-Trade Zone around Lambert from 11 acres. The department also awarded a $1.7 million grant to the St. Louis County Economic Council to conduct market research, gauge local interest in the project and perform outreach to other Midwestern states.



In addition to Lambert, the FTZ expansion sites include developable land and leasable space at NorthPark, a 550-acre redevelopment located east of Lambert; Hazelwood Commerce Center, an industrial park on nearly 170 acres, directly northwest of Lambert and Interstates 70 and 170; and Lindbergh Distribution Center, a 528,000-square-foot distribution warehouse on 25 acres owned by Duke Realty LP, located southwest of the former Ford plant in Hazelwood.



Taylor’s presentation outlined the specifics of the FTZ program and the benefits of incentives located within one of these designated zones.



The expanded FTZ also is a step in establishing the St. Louis region as the Midwest air cargo hub for commercial trade with China. Local leaders recently visited China once again in an effort to continue fostering this partnership.



In January, Zhou Wenzhong, China’s ambassador to the United States, and local leaders announced the formation of a commission aimed at bringing Chinese air freight to Lambert. Michael Jones, chief policy adviser for St. Louis County, has been named chairman of the Midwest China Hub Commission.

Source: http://stlouis.bizjournals.com/stlouis/ ... rround=lfn