MITC post to attract foreign capital
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Janine Bisaillon-Cary, executive director of MITC, says the return of a foreign investment attache position will promote economic growth in Maine
Last week, a group of Norway executives from WindSea, an international company interested in renewable energy, took a tour through Harbor Technologies to assess a potential business relationship with the Brunswick-based composites manufacturer.
Martin Grimnes, president and CEO of Harbor Technologies, was happy to play host as the WindSea delegation considered investing in a prototype for the University of Maine’s offshore wind center near Monhegan Island. Harbor Technologies could receive a manufacturing contract for wind turbine components from the Norwegian firm.
“It’s still very early in the process, but they are looking at taking their technology and establishing it here,” says Grimnes. “They’ll need a composites manufacturer to do that.”
While the possibility of the collaboration excites him, Grimnes is realistic about how much time and effort it will require to develop that relationship, especially for a product that wouldn’t likely start producing revenue for his company for another five years or so.
“It’s all about priorities,” he says. “This is the kind of thing that often falls by the wayside.”
For that reason, he says he’s glad the Maine International Trade Center has re-established its foreign investment attaché position. The post, eliminated six years ago in a round of budget cuts, has been revived with a mix of public and private money to give Maine a leg up in attracting foreign companies to invest here.
“I would not have the capacity to create and develop that relationship myself,” says Grimnes. “The position will be a driver … that individual will understand what [foreign] industries want to look at; understand the individual companies, then what complements the industries here in Maine, both in technology and funding.”
Earlier this month, MITC hired Annette Bossler as its foreign investment attaché, making her managing director of its Invest in Maine initiative. The initiative to attract foreign direct investment got a push in June at the MITC annual Trade Day when Gov. John Baldacci emphasized the need to expand the state’s ability to attract overseas investment. According to MITC data, global investors are looking at the United States for manufacturing and other opportunities. Already more than 27,000 Maine workers are employed by 100 foreign firms, which hold $6.2 billion in property and equipment. Canada has the greatest investment, followed by Germany, Switzerland and the U.K.
“We see this as a tremendous asset to encourage foreign direct investment to promote Maine’s long-term growth and economic stability,” says Janine Bisaillon-Cary, MITC executive director. The attaché will be responsible for recruiting foreign investment, promoting Maine’s assets and developing relationships between overseas companies and their Maine counterparts.
Bisaillon-Cary says Bossler will focus on three primary industries: renewable energy, especially wind and tidal; composites; and advanced materials, such as textiles. She will also focus primarily on developing investments from western Europe, which, according to Ernst & Young data, funds 75% of all investments in the U.S. renewable energy market.
“I’ve had more inquiries [from investors] in the last year than in the 10 previous years combined,” says Bisaillon-Cary, noting a recent visit by a group of potential investors from Germany interested in using Maine ports and potentially manufacturing wind turbines here. “It’s mostly regarding wind and renewable energy.”
In addition to capturing and directing foreign investment to the three targeted industries, the Invest in Maine initiative also will attempt to direct foreign capital to enhance logistics within those industry clusters and to supplement R&D at Maine’s universities through new collaborations and opportunities for research students.
Bossler has 20 years of international business experience, which has taken her throughout Europe and Asia. A consultant based in Bremen, she is fluent in German and Japanese, and has served French, Taiwanese, Japanese and American clients in renewable energy development.
Bisaillon-Cary expects Bossler will initially focus on recruiting investments from Spain, Germany and the U.K., where interest was sparked following trade missions from Maine. That interest was heightened when the federal Department of Energy chose UMaine as one of three universities in the country to receive up to $8 million to fund its offshore wind test center off Monhegan Island. The university plans to design and deploy two 10-kilowatt and one 100-kW floating turbine prototypes. That is positioning Maine in the vanguard of renewable energy innovation, says Bisaillon-Cary, one of the opportunities the Invest in Maine initiative wants to capitalize on.
“This is realistically a very different skill set than what we’ve had on staff previously,” says Wade Merritt, MITC vice president. “Our focus has mostly been promoting exports for Maine companies and working primarily with them. Now we’re turning that around and marketing the state as a place to invest.”
Bisaillon-Cary says MITC has been working with other partners to revive the post since November. “We stopped having a proactive presence [six years ago] and it hurt us,” she says. By establishing Invest in Maine and the attaché position, Maine will be able to better handle international inquiries, she says.
The attaché post has funding for three years, says Bisaillon-Cary. Joining MITC as partners are the Maine Technology Institute, the University of Maine System and the Maine Composites Alliance. Bisaillon-Cary says the length of the financial commitment will allow the MITC some stability in recruiting foreign investments and the chance to develop a comprehensive strategy around international capital.
“We’re trying to find the best ROI, without having a lot of budget outlay,” she says.
Investments from afar
A new program and staff position established within the Maine International Trade Center is part of an effort to capture more foreign direct investment for Maine’s emerging renewable energy, composites and advanced materials industries. Here’s where some of that foreign investment goes nationally, according to the U.S. Department of Commerce:
$316 billion The amount of foreign direct investment in the U.S. in 2008
$55 billion The amount of money reinvested into the U.S. economy from foreign firms in 2008
$404 billion Wages paid to U.S. employees of foreign affiliates in 2007
5.5 million The number of American workers employed by foreign firm affiliates in 2008
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