Print
E-mail
Comment
Rate
West Texas District Export Council works to find new director, increase awareness
by Kathleen Thurber
Midland Reporter-Telegram
West Texas District Export Council works to find new director, increase awareness
By Kathleen Thurber
Staff Writer
Though Mark Nicholas and Pat Hanlon both are involved in the oil industry in Midland, their paths first crossed in China.
Hanlon, co-owner of New Tech Systems, has exported about eight pipe inspection systems to China and currently is building three more, he said.
With a weakening U.S. dollar and climbing oil prices, these two are part of a large group in the Permian Basin who've learned knowing the logistics of globalization can be key to a successful business.
"It's a good time to get our foot in the door," said Nicholas, who is the chair of the West Texas District Export Council (DEC) that met Wednesday.
China currently is developing its oil fields, Nicholas said, and successfully building a petroleum industry often means relying on places like West Texas for the necessary technologies.
The state's total exports are up more than 10 percent from about this time last year, according to the Federal Reserve Bank of Dallas. And while Texas still depends on Mexico for about a third of its exports, the percentage of goods shipped to other parts of South America increased more than 20 percent in the first quarter of 2008 and exports to China and other countries increased more than 4 percent, according to the Dallas Federal Reserve.
Much of the state's $160 billion in exports comes from larger cities. But, for the size of its communities, said West Texas DEC Vice Chair Larry Richards, a substantial number of area companies generate 50 percent or more of their revenue from international markets. Last year, those efforts in the Permian Basin totaled about $250 million.
Some businesses, Richards said, are involved in just one country, and others, like many of the members of the West Texas DEC operate in between 25 to 70 or more other countries.
However, as businesses' interest piques in the international arena, knowing the ins and outs of the system will become increasingly important, said DEC member Mark Merritt, who said he has talked to several people who export to just one country and don't know a lot of the details behind the trades they're making.
For people who fall in this category, said Dan Swart, director of the North Texas U.S. Export Assistance Center who is serving the West Texas area after its director left about three months ago, export council members can be a great source for learning export compliance rules and other information.
"This is a good place to come and get expertise," Richards said.
There are more than 40 district export councils nationwide, Swart said, including four in Texas. Each is made up of a group of volunteers -- like those from various industries in Midland, Odessa, Lubbock and other areas who are on the West Texas District Export Council -- who give their time to provide professional advice and education about exporting locally.
"You all have real world experience and are willing to share," Swart said of the council members at Wednesday's meeting who can offer tips about their business dealings that include everything from the right kind of visas to obtain to the necessary currency when traveling.
Some export councils hold short education sessions or send representatives to speak at various events, Swart said. The West Texas DEC holds an annual two-day conference each April that already is being organized for next year.
And while international demand may have increased, Nicholas said, domestic demand is up as well, especially for those in the oil industry, and many companies have shifted to doing 50 percent of their business domestically rather than the 40 percent or less that may have been the case in recent years.
Even if domestic demand continues to increase, he said, keeping a certain amount of business dedicated to exports can help build a company's stability as oil-related equipment always is needed in Middle Eastern countries even if oil prices drop.
Kathleen Thurber can be reached at kthurber@mrt.com.
By Kathleen Thurber
Staff Writer
Though Mark Nicholas and Pat Hanlon both are involved in the oil industry in Midland, their paths first crossed in China.
Hanlon, co-owner of New Tech Systems, has exported about eight pipe inspection systems to China and currently is building three more, he said.
With a weakening U.S. dollar and climbing oil prices, these two are part of a large group in the Permian Basin who've learned knowing the logistics of globalization can be key to a successful business.
"It's a good time to get our foot in the door," said Nicholas, who is the chair of the West Texas District Export Council (DEC) that met Wednesday.
China currently is developing its oil fields, Nicholas said, and successfully building a petroleum industry often means relying on places like West Texas for the necessary technologies.
The state's total exports are up more than 10 percent from about this time last year, according to the Federal Reserve Bank of Dallas. And while Texas still depends on Mexico for about a third of its exports, the percentage of goods shipped to other parts of South America increased more than 20 percent in the first quarter of 2008 and exports to China and other countries increased more than 4 percent, according to the Dallas Federal Reserve.
Much of the state's $160 billion in exports comes from larger cities. But, for the size of its communities, said West Texas DEC Vice Chair Larry Richards, a substantial number of area companies generate 50 percent or more of their revenue from international markets. Last year, those efforts in the Permian Basin totaled about $250 million.
Some businesses, Richards said, are involved in just one country, and others, like many of the members of the West Texas DEC operate in between 25 to 70 or more other countries.
However, as businesses' interest piques in the international arena, knowing the ins and outs of the system will become increasingly important, said DEC member Mark Merritt, who said he has talked to several people who export to just one country and don't know a lot of the details behind the trades they're making.
For people who fall in this category, said Dan Swart, director of the North Texas U.S. Export Assistance Center who is serving the West Texas area after its director left about three months ago, export council members can be a great source for learning export compliance rules and other information.
"This is a good place to come and get expertise," Richards said.
There are more than 40 district export councils nationwide, Swart said, including four in Texas. Each is made up of a group of volunteers -- like those from various industries in Midland, Odessa, Lubbock and other areas who are on the West Texas District Export Council -- who give their time to provide professional advice and education about exporting locally.
"You all have real world experience and are willing to share," Swart said of the council members at Wednesday's meeting who can offer tips about their business dealings that include everything from the right kind of visas to obtain to the necessary currency when traveling.
Some export councils hold short education sessions or send representatives to speak at various events, Swart said. The West Texas DEC holds an annual two-day conference each April that already is being organized for next year.
And while international demand may have increased, Nicholas said, domestic demand is up as well, especially for those in the oil industry, and many companies have shifted to doing 50 percent of their business domestically rather than the 40 percent or less that may have been the case in recent years.
Even if domestic demand continues to increase, he said, keeping a certain amount of business dedicated to exports can help build a company's stability as oil-related equipment always is needed in Middle Eastern countries even if oil prices drop.
Kathleen Thurber can be reached at kthurber@mrt.com.
 |
 |
|
| (Video) WHAT WOULD THE CANDIDATES DO? | Midland College bond projects progressing |
Article Rating
Reader Comments
The following are comments from the readers. In no way do they represent the view of mywesttexas.com.
Submit a Comment
We encourage your feedback and dialog, however we reserve the right to delete any post we see that may be considered slanderous, excessive and/or foul language, or any post that we may deem inappropriate.
You must register with a valid email to post comments. Only your Member ID will be posted with the comments.
Registered users sign in here: |
Become a Registered User |
News
Sports
Business
Entertain
Life
