Utah firms find links that will lead to business expansion in Mexico
Utah businesses increasingly see Mexico as a field ripe for business expansion and a governor-led trade mission to the country has given 27 companies and organizations a leg up in that quest. The five-day World Trade Center Utah-sponsored excursion to Mexico City and Baja returned last week.
“With approximately $850 million in Utah exports each year, Mexico was selected for a state-led trade mission because it is a growing trade hub for the Americas and provides an opportunity to attract foreign direct investment to Utah,” WTC Utah said in a release.
“Our state trade missions provide local companies with a unique opportunity: visit the sites of Utah companies and learn from key staff members how to successfully expand into the region,” said Derek Miller, president and CEO of WTC Utah. “Additionally, through networking and pitch events, Utah companies looking to expand into Latin America make connections with potential customers and partners which act as a catalyst in their own expansion.”
Ron Gibson, president of the Utah Farm Bureau Federation, was a delegate on the trade mission and said about the trip, “Utah’s Agricultural community is dependent on export sales of our products. This trip with the World Trade Center and Gov. Herbert has been a tremendous opportunity. We have been able to build relationships with Mexican business leaders and government officials that will benefit farmers and ranchers in our state for years to come.”
Many Utah companies already conduct business in Mexico, WTC Utah said. The organization cited doTerra, a Utah-based essential oils company founded in 2008 that opened a product center in Mexico City in 2015. Spire Ranges, another Utah company, recently opened a facility in Mexico City that will be used for training local law enforcement agencies. The facility is the result of a contract acquired by Spire Ranges’ attendance at the Defense and Security Equipment International (DSEI) trade show in 2017. With the encouragement of WTC Utah, Spire Ranges attended DSEI after applying for and receiving funds from a State Trade and Expansion Program (STEP) grant. The delegates of the trade mission visited the sites of these facilities and many others while in Mexico.
In an effort to further strengthen the relationship between Utah and Mexico, Herbert met with the president of Mexico, Enrique Peña Nieto, at the presidential residence Los Pinos during the trip. In addition to discussing NAFTA, the governor stressed the importance of Utah’s trade relationship with Mexico. Last year, trade between Utah and Mexico totaled $4 billion, the governor said.
“These trade missions are valuable to Utah businesses exploring international expansion because they open doors and provide numerous opportunities to participants,” said Vale Hale, executive director of the Governor’s Office of Economic Development. “While not all the benefits are realized immediately, the opportunities begin with participation on a trade mission and forming those face-to-face relationships. I’m confident that this mission will yield many benefits and lead to long-term success.”
Four of the companies that attended the trade mission —Innosys, Niivatech, Optisys and TaskEasy — participated in a pitch event in Mexico City. The pitch event was organized by the Utah Science Technology and Research Initiative (USTAR) as part of the trade mission’s innovation component, which also included a tour of Startup Mexico. The four Utah companies pitched for over $70 million to a group of over 40 investors, venture capitalists and entrepreneurs. Each of the companies is expected to receive some form of partnership or investment opportunity that will be announced once finalized.
The trade mission, which was supported by WTC Utah, GOED, U.S. Commercial Service, the U.S. Small Business Administration and Deseret Management Corp., involved private and public organizations from various industries. Participants were Arbinger Institute, Campbell Scientific Inc., The Church of Jesus Christ of Latter-day Saints, BomCom, Energy Network, ICON Health & Fitness, InnoSys Inc., Intermountain Farmers Association, Jimenez Consulting, Law Offices of Thomas N. Jacobson, Niivatech Inc., Optisys, Owlet Baby Care Inc., ParityPay Inc., Radiant Works, ROTA Science, Spire Ranges, Carbon 2 Fuel and Michael Best Strategies.