MDCP Centerstate Corporation for Economic Development

MDCP Award Generates over $27 Million in Exports for Small Firms

U.S. Industries impacted by this MDCP partnership include:

• Digital electronic devices, especially for:
  • Environmental technologies
  • Avionics
  • Medical technologies
  • Communication
  • Measurement
• Exports Generated by September 2019: $27,202,496
• Exports Per Dollar of Award: $131 ($27,202,496/$207,379 of award spent)
• Markets Targeted: Singapore, Malaysia, Indonesia
• Period: 2014-2019

Key ITA Collaborators:

• Jonathan Alvear, Industry & Analysis, Office of Transportation & Machinery
• John Tracy, GM Commercial Service Buffalo
• Ng Haw Cheng, GM Commercial Service, Singapore

Huge Market for Small Firms

Before applying for MDCP financial assistance, CenterState CEO matched small firms with larger mentor firms. It performed an export audit for each firm to refer it to appropriate resources. CenterState studied regional surveys of Central New York businesses and found that Singapore, the epicenter of ASEAN, was one of the leading markets for Central New York products, including its electronic products. With a combined GDP of nearly $3 trillion, the ten Southeast Asian member nations of ASEAN would rank as the sixth largest economy in the world after Germany.

Some Firms Slow to Report Exports During Project Period But Results Come

Of those so assisted, ten ended up reporting exports during the MDCP project period. While the majority of firms served did not report exports during the project period, they are now better equipped to succeed. Preparing to compete in global markets takes time and preparation.

CenterState CEO noted that “many participating firms are dealing in high value added products, and therefore the sales cycle continue[s] over multiple years.” A prime example is the single biggest export sale of the project, part of the biggest spike evident on the graph. It started with a meeting arranged in 2014, a year when CenterState CEO reported zero exports. But the deal was not consummated until 2018.

For some cooperators post-project success is trackable. There are examples of projects where cooperators established a foothold outside the United States as part of the project. Many continue to produce exports well after the term of an MDCP cooperative agreement. But after a project period ends ITA cannot request export data from firms that had been participating in an MDCP project. While the data is not available to ITA, it is likely, based on results during the project period, that exports continue for some considerable time after the project period ends.