By Chuck Cochran, President
Troy (OH) Development Council

Although Troy is not a major metropolitan area, our community of 30,000 is definitely major league in terms of business retention and recruitment! 

Since 1986, our city has competed globally, sending trade missions to the Far East every three years  – an accomplishment that equates well with much larger cities.  Delegations from Troy have made five Far East trade missions and a sixth trip is scheduled for 2003.  Even Europe has not been ignored.  Troy undertook its most recent European trade mission in 2002.

The trade missions were launched in response to a series of economic challenges that severely impacted our small community in western Ohio in the early 1980s.  Troy is the county seat of Miami County (population 100,000) and is situated 20 miles north of Dayton on Interstate 75 and 60 miles west of Columbus on Interstate 70.

A well-established manufacturing center, Troy was hit hard by consolidations and acquisitions in the early 1980s – just like many other industrial communities in the Northeast and Midwest. In 1982, our city lost the headquarters of Hobart Corporation and, later,  Hobart Brothers, two home-grown companies that were heavily involved in the community for nearly 100 years.  Both were acquired by other firms and headquarters were relocated, resulting in the loss of 3,000 good-paying manufacturing and headquarters jobs.

These losses had both an economic and psychological impact on the community, prompting a re-design of the economic development process in Troy.  The business community through the Troy Area Chamber of Commerce joined elected officials to create the Troy Development Council (TDC), a public/private partnership tasked with directing all economic development activities in cooperation with city government.

The goals of the TDC are familiar to any economic development organization:  retain local businesses, attract firms and create job opportunities for residents.  Our strategy in the mid-1980s, however, was decidedly different from most American communities, especially those of our size.  

A Global Learning Curve

We decided to go global.

It was our belief that we had to go directly to vibrant markets to find and attract growing companies. As it happened, our reasoning was correct – but our first target was not!

We initially focused on firms in Europe.  We felt that this was a logical target considering the large number of European companies that had established operations across Ohio and in neighboring Midwest states.  The first trade mission, however, revealed that the European economy was not very dynamic in the early 1980s and few companies were in an expansion mode.  Although we talked to many people, we came home empty-handed.

While other communities may have curtailed their efforts, we did not.  The European mission was an excellent experience.  We learned that trade missions demonstrate a community’s commitment to overseas firms and set a community apart from those that do not engage in trade trips.  Overseas travel opens doors that might not otherwise be open to a small town in the American Midwest.  An investment in a community’s future, trade missions take patience and are not suited for communities seeking instant gratification. 

Following the European trip, our search for vibrant economies took us to the other side of the world – to Japan whose economy at the time was the global leader.  In the mid-1980s,  Japanese firms were aggressively investing in the United States.  Just 60 miles away, Honda had established its first U.S. auto assembly plant in Marysville OH in 1982. 

It’s not a stretch to say that we wanted a piece of the action, especially after the loss of  two home-grown companies.  We felt that it was prudent to go there and directly pitch Japanese firms looking for U.S. locations.  Consequently, the City of Troy and the TDC shifted its focus from Europe to the burgeoning Japanese economy. 

We undertook our first Far East trade mission to Japan in 1986.  Unlike the earlier European trip, projects directly related to the Far East trade mission soon followed.

The first trip proved so successful that subsequent missions have been conducted every three years since then.  They now include regular stops in Hong Kong and China. 

Fast Forward.  Fast Results.

Fast forward to 2002 – just 16 years and five Far East trade missions later.  Our community has been gratified by the return on our investment in these trade excursions.

The first Far East trade mission deliberately focused on suppliers related to Honda’s Marysville OH facility.  Instead of attracting a supplier, we landed Honda’s training and international distribution center.  It opened in Troy in 1986 and now employs 350.

A second major project soon followed.  City and TDC officials partnered with state officials to attract Panasonic to Miami County in 1988.  The Panasonic facility –the largest television picture tube manufacturing facility in the U.S. – employs 1,600. 

These two projects ignited a steady stream of foreign-owned companies.  Today, the City of Troy is home to nine foreign-owned companies providing family-sustaining wages to over 3,000 residents.  There are another five foreign-owned companies in surrounding Miami County who employ another 1,000.  These 4,000 jobs plus an additional 3,000 jobs created through expansion of existing businesses and recruitment of domestic firms far eclipse the jobs lost in 1982.

These results are truly outstanding when one considers the size of our community!  Our business community is healthier and more diverse.  It now includes Japanese, French and German firms plus a Japanese-German joint venture.  One French firm just completed a major multi-million dollar investment in new equipment in 2001. 

It’s important to note that our business retention program works with all local  firms (whether home-grown or headquartered elsewhere in the U.S. or the world).  We work hard to secure expansion projects by connecting our businesses to the economic development services available from the City of Troy, the Troy Development Council, regional organizations and the State of Ohio.

Growing and Evolving

A global perspective has helped the Troy Development Council to refine and define its mission in a world where economic conditions continue to change rapidly.

One priority of the TDC is to retain and grow the companies that we already have.  During our trips abroad,  we always attempt to meet with the headquarters of Asian and European companies that have local operations.  We literally travel around the world to conduct business retention. 

Another priority is to target companies in specific industry clusters for recruitment opportunities.  Our targeted clusters are: plastics (Ohio is one of the top two plastics-producing states in the nation), automotive (I-75 is better known as “Automobile Alley”), aerospace (Goodrich employs 900 in Troy) and metal fabrication.  We’re also working to attract engineering and research jobs.

A third critical priority is building a trained, educated workforce to support our key industries.  During our trips, we’ve established links between the plastics program at Edison State Community College in Miami County with those at Hong Kong University and Warwick University in England, both of which have highly regarded research programs in plastics.  We’re exploring how the three schools can work together, from faculty and student exchanges to partnering on advanced research activities.

Lessons of a Globe Trotter

Obviously, we’ve learned a lot during our global travels over the past 16 years. Here are a few observations that should be of interest to other communities contemplating their own foreign trade missions.

• Recognize that a foreign trade mission takes commitment – specifically time, effort, human talent and money. 

We start the planning process about six months prior to departure.  Our trade missions typically run at least 12 to 14 days and sometimes longer.  And, it involves a considerable expense as well – our trips average approximately $30,000-$35,000 (and sometimes more).  

• Tap the expertise of the international trade department in your state government. 

For each of our trade missions, the Ohio Department of Development has been instrumental in targeting prospects and retaining existing firms.  We have also participated on state-sponsored trade missions usually led by the Governor.

• Use other international trade resources at your disposal.

In our case, the Columbus office of the Japanese Export Trade Organization (JETRO) provides valuable assistance in identifying potential prospects and making initial contacts when we’re planning our trade mission.  The Hong Kong Trade Council is also an excellent support organization.

• Add credibility to your trade mission by including the highest ranking local official.

Foreign-owned firms place great emphasis on the presence of high ranking officials like a mayor or governor.  That’s why the Troy mayor has traveled on every foreign trade mission that we’ve conducted.  Our team typically includes a representative from TDC, two to four from the City of Troy including the current mayor, Pete Jenkins, as well as  the development director  and one to two members of City Council.  

• Recognize that  foreign firms like to cluster in an area.

Japanese firms tend to select an area that is already home to other Japanese firms, all other factors being equal.  This is also true of European firms.  If your community lacks foreign investment, you may have to work harder to land your first firm – but it’s possible with persistence!

• Realize that Japanese and European cultures are relationship-based, more so than the American business culture.

At the TDC, we work hard to maintain and strengthen our relationships – both at home and during our foreign trade missions.  We take simple gifts – always with an Ohio theme – to symbolize our friendship and long-term commitment.  We want to be at the top of every company’s list for future expansion projects.

• Sustain the effort.  Be creative in selecting your targets.

Do not expect instant gratification.  Trade missions are a sales function and your trade team becomes a better sales team with experience.  Repeated trips to a market build the relationships that often lead to a subsequent decision by a firm  to locate in a community.  Do your homework and be willing to travel to other markets to find expansion-minded firms seeking a U.S. location.

The Numbers Tell The Story

While the events of the early 1980s could have been catastrophic to Troy, they were, in fact, the catalyst that propelled our small community onto the global stage.

Today,  Troy and Miami County are home to 14 companies from Japan, Germany and France that now provide well over 4,000 jobs.  Since 1989, Troy has benefited from over $1.3 billion in new investment from domestic and overseas firms.  Over $160 million was invested in 2001 alone – in a town of just 30,000 and in a year considered “down” in many communities.

Nearly 40% of our workforce is engaged in manufacturing – and this percentage is growing, not declining as it is in most places in the nation.

Chuck Cochran is President of the Troy (OH) Development Council.  
He can be reached at 937-339-8769 or at ccochran@troyohiochamber.com