Five Questions With: Kevin Tracy

Kevin Tracy is senior vice president and market executive at Bank of America Merrill Lynch.
Kevin Tracy is senior vice president and market executive at Bank of America Merrill Lynch.

Kevin Tracy is senior vice president and market executive at Bank of America Merrill Lynch.
He recently hosted a breakfast presentation at Quonset Development Corp. to talk with business owners about how they can grow through the import and export business, touching on subjects including tax implications, financing trade and how to leverage the supply chain in Rhode Island.
Tracy expounds on these topics with Providence Business News.

PBN: Can you tell our readers why businesses should consider growing their business through import and export commerce?
TRACY:
For many small and midsized businesses, globalization represents a significant growth opportunity. We are now seeing the range of initiatives to expand in new markets being explored by U.S. companies. Whether it is export trade, or establishing operations overseas, more than half of the Rhode Island businesses we serve are looking for ways to expand into new economies. They see opportunity in the changing middle class demographic worldwide and increasing demand for the same products and services available in the U.S. Also, technology advancements and expanded social networks make access to other markets much easier from a marketing and advertising perspective today and, more importantly, the increase in electronic payment solutions have made selling overseas a goal that can be achieved.

PBN: Does it make sense for all industries?
TRACY:
Manufacturers of durable goods that meet the needs of growing prosperity around the world (particularly South America, Asia-Pacific and Europe) have a great opportunity to expand their market opportunity. Consumers and businesses in many of these countries are looking for high-quality American-made products. A sampling of the exports we see from Rhode Island include primary metals, food, medical and sporting equipment, advanced machinery and computer equipment.

PBN: What type of advantages does Rhode Island have when it comes to import/export trade?
TRACY:
On the import side of trade, Rhode Island provides a great opportunity for companies as we have somewhat smaller-to-scale, but nimble, port facilities with intermodal connections (rail, highway) and proximity to the densely populated Northeastern U.S. In addition, another asset of our state for imports is the momentum we’ve gained in warehousing and freight transportation as part of the logistics industry, where we’ve seen double-digit growth with the economic recovery. You saw this in the recent Brookings Institute study to help develop an economic growth strategy for the state with the support of the R.I. Foundation and Governor Raimondo.
Some of the same advantages that exist on the import side are also helpful from an export perspective. The presence of a solid educational infrastructure with great universities has also enabled the state to continue to innovate with a cost structure significantly lower than some of our larger neighbors to the north and south.

- Advertisement -

PBN: What should businesses consider first if they want to expand to the global marketplace?
TRACY:
We encourage our clients to look at the bigger picture and develop a multidimensional strategy with early stage planning from a variety of trusted advisers. Currently, our survey of businesses indicates that only 42 percent of companies considering international expansion actually have a plan. This is definitely a concern. Not long ago, businesses were expanding into foreign markets for the tax advantages, but today technology is allowing companies to take a more holistic view of how to expand. For instance, you likely need visibility and access to local cash. You should also consider local, on-the-ground advice. Technology allows you to have full transparency in your global operations without needing multiple relationships, and allows you to manage cash in real time across multiple time zones.
Other details to consider are understanding payment terms with your customers or vendors overseas, the regulatory requirements of doing business in another country and the optimal legal and tax structure. In summary, visibility and control of cash and capital are paramount.

PBN: How would a financial institution, such as Bank of America Merrill Lynch, help in this process and what sets you apart from the competition?
TRACY:
For more than 200 years, we’ve been serving the financial needs of individuals and businesses to help them achieve their goals. At Bank of America Merrill Lynch, you have access to the full resources of a global bank in 35 states and 23 countries. We’re also a pioneer in financial supply chain management solutions, which enables us to help clients negotiate the best terms with their suppliers or customers overseas. Finally, we have local branch support in 30-plus Rhode Island locations. It all starts with understanding the client and their goals. What we bring is our local team’s commitment to work directly with the company on how best to use the range of global trade products. We’re here to help make the financial lives of our clients better, make interactions easier and make our expertise more accessible.

No posts to display