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Bay Area Tech Exports Poised for 20% Spike to $30 Billion by 2016, Says New Report***Business Leaders, Public Officials Discuss Impact of Global Trade & Technology Trends on Bay Area Economy at HSBC Made For Trade event***
18 June 2014
San Francisco - Projected U.S. trade growth and the growing importance of technology exports should lead to a significant spike in Bay Area technology export activity, according to new research out today from the Bay Area Council Economic Institute (BACEI), sponsored by HSBC. The report predicts a rise of as much as 20 percent to around $30 billion by the end of 2016, from almost $25 billion last year. The projected increase will provide increased expansion opportunities for businesses involved in this vital sector, with exports currently supporting some 378,000 jobs in the region.
According to the research, projected Bay Area growth is also linked to the rising importance of China's currency, the renminbi (RMB), in global commerce. American firms report becoming increasingly at ease with settling cross-border trades in RMB, with the Bay Area at the forefront of this trend due the region's strong Chinese business and cultural ties. In 2013, two-way trade between California and China totaled over $146 billion and the state currently attracts more Chinese investment in technology than any other, with over a third (35 percent) directed toward the Bay Area. For the U.S. as a whole, Chinese foreign direct investment has broken new records each year since 2009, increasing from $5.8 billion in 2010 to $6.7 billion in 2012.
"Innovation, ingenuity and risk-taking are the foundation of the Bay Area-Silicon Valley economy and position the region for tremendous growth as cutting-edge technology becomes the American export of the future," said Sean Randolph, President and CEO of the Bay Area Council Economic Institute and author of the report: Trade in the Bay Area: Investment and Global Financial Flows. "This, in combination with our close ties to China and the rest of Asia, as well as the internationalization of the Chinese currency, makes it an exciting time to live and work in the Bay Area."
The BACEI report will be discussed at today's HSBC Made For Trade1 Bay Area - 'Financing the Future' event. This is the third official stop of the Made For Trade tour, which launched in Los Angeles in March before moving on to Houston. It will make an additional stop next month in Chicago before culminating this October in Washington, D.C. Speakers at today's event include: San Francisco Mayor Edwin M. Lee, Deputy Assistant Secretary Ted Dean of the U.S. Department of Commerce, International Trade Administration, Bay Area Council CEO Jim Wunderman, Xia Xiang of the People's Republic of China's Consulate in San Francisco, Steve Bottomley, Head of Commercial Banking North America, HSBC Bank USA, N.A., and Marlon Young, Chief Executive Officer, HSBC Private Bank, Americas; plus senior representatives of LinkedIn, Matson, Inc., Levi Strauss & Co. and Cisco Systems, Inc.
"San Francisco is the Innovation Capital of the World and the gateway to the Pacific Rim, making our City a dynamic and thriving hub for international trade and commerce," said San Francisco Mayor Edwin M. Lee. "That's why I'm pleased to be a part of HSBC Made For Trade Bay Area to highlight San Francisco's important and leading role in the global market place, today and in the future."
HSBC has a rich history of supporting international commerce and is the largest trade financer in the world. The global bank first established a Bay Area presence in 1875 and since that time has maintained a strong interest in the region, connecting local businesses with growth opportunities in Asia, Europe and beyond.
"San Francisco is truly an international city, and the flow of goods throughout the Bay Area is a natural extension of its economic culture," said Arjan van den Berkmortel, Managing Director, Corporate Banking West Coast, HSBC Bank USA, N.A. "We opened our first U.S. office here nearly 150 years ago, and as we look at the future of global trade, it's exciting to see how well positioned San Francisco and the surrounding areas are for continued growth. As the leading bank for international trade, HSBC looks forward to helping Bay Area businesses continue to push the limits of borders."
For more information about HSBC Made For Trade and how HSBC is helping to make global connections, please visit: http://www.MadeForTrade.hsbc.com
Notes to editors:
1HSBC Made For Trade
HSBC Made For Trade is a national conversation with leaders in business, government, industry and academia about the role of global trade in today's economy. This national tour looks at the contribution of the international flow of goods, services and capital to the U.S. economy, and the opportunities for American businesses brought about by global trade. HSBC Made For Trade stops in four U.S. cities whose economies have been shaped by global trade, and concludes in Washington, DC, where voices from around the country are brought together with national officials and thought leaders to discuss policies to further promote the international flow of goods, services and capital.
About the Bay Area Council Economic Institute
Bay Area Council Economic Institute is a partnership of business with labor, government, higher education, and philanthropy that woks to support the economic vitality and competiveness of the Bay Area and California. Its work builds on the twenty-year record of fact-based economic analysis and policy leadership of the Bay Area Economic Forum, which merged with the Bay Area Council in January 2008.
The Association of Bay Area Governments (ABAG) is a founder and key institutional partner. The Economic Institute also supports and manages the Bay Area Science and Innovation Consortium (BASIC), a partnership of Northern California's leading scientific research universities and federal and private research laboratories.
Through its economic and policy research and its many partnerships, the Economic Institute addresses key issues impacting the competitiveness, economic development, and quality of life of the region and the state, including infrastructure, globalizations, science and innovation, energy, and governance. A public-private Board of Trustees oversees the development of its products and initiatives.
Founded in 1865 to finance trade between Asia and the West, today HSBC Group is one of the world's largest banking and financial services organizations. Headquartered in London, HSBC Group operates through long-established businesses and an international network of some 6,300 offices in 75 countries and territories. HSBC is the world's leading bank for international trade, financing approximately 10 percent of international trade flows in 2012.* Our global reach and expertise helps millions of customers - from small businesses to multinationals - unlock their potential.
In the U.S., HSBC serves 3 million customers through retail banking and wealth management, commercial banking, private banking, asset management, and global banking and markets segments, and operates more than 240 bank branches: over 155 in New York State as well as in California, Connecticut, Delaware, Washington, D.C., Florida, Maryland, New Jersey, Pennsylvania, Oregon, Virginia, and Washington State.
*Oliver Wyman Global Transaction Banking Survey 2012
- Neil Brazil
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