Friday, September 24, 2004

Governor Taft returns to Japan to open doors



By John Byczkowski
Enquirer staff writer

[photo]
Ohio Gov. Bob Taft tours a Procter & Gamble office in Kobe, Japan, in 2000. With 86 people representing 60 companies or agencies, this fall's trip will be the largest of Taft's five foreign trade missions.
Associated Press file

When Ohio Gov. Bob Taft lands in Japan today, he will dust off the speech he gave twice a day for a week during his first trade mission there, in 2000.

At every reception and event on that mission, he told of the many trips his great-grandfather - President William Howard Taft - made to the islands more than a century ago. He recalled the exchange of Ohio dogwood trees for Japanese cherry trees, the ones that ring the Tidal Basin in Washington.

After making that four-generation link, Taft would jump into the future, telling of the billions of dollars that Japanese companies such as Honda Motor Co. have invested in Ohio, the 70,000 jobs created, and the billions in exports Ohio has sent back.

That groundwork laid - how the relationship has been mutually beneficial - the governor would end with an invitation: "So, if you are not doing business in Ohio, zehi Ohio ni kite kudasai." Please come to Ohio.

The speech is an oldie-but-goodie, and he's going to recycle it for this trip, Taft admitted this week. "We're freshening (it) up," he said.

TRIP HIGHLIGHTS
A typical day during Ohio's trade mission to Japan and Taiwan today through Oct. 3 contains an event in the morning, a reception in the evening, and business meetings sandwiched in between. Here are some highlights of the trip:

• Sunday and Monday: The Midwest U.S. Japan Association manufacturers' conference in Tokyo, which will take place in Cincinnati in 2005.

• Tuesday: An investment seminar sponsored by the Greater Cincinnati Chamber of Commerce, for companies interested in locating operations in Cincinnati and Northern Kentucky. Gov. Bob Taft will attend.

• Wednesday: The BioJapan 2004 trade show, a huge biotechnology show held every four years.

• Thursday: A reception in Taipei for alumni of Ohio colleges and universities.

The speech may be familiar, but much about this trade mission will be different. With 86 people representing 60 companies, institutions and economic development agencies, this trip will be the largest of Taft's five foreign trade missions, half again as big as the 2000 Japan mission.

This trip may also be more critical, more competitive and potentially productive than any other. Like other Midwestern states, Ohio has lost tens of thousands of manufacturing jobs over the past five years. When Taft attends the Midwest U.S.-Japan Association manufacturing trade show Sunday and Monday in Tokyo, he'll cross paths with at least three other Midwestern governors, all looking to land a few more Hondas for their states.

The Japanese economy, however, is in better shape today than it was in 2000, and there appears to be more interest by Japanese businesses in investing in the United States.

The Greater Cincinnati Chamber of Commerce, for instance, visits Japan annually.

On its trip last November, about 35 Japanese executives attended a seminar for businesses interested in investing in the region.

"This year we have 72," said Neil Hensley, the chamber's senior director of economic development.

Hensley and chamber president Michael Fisher will visit four companies that have expressed serious interest in coming to the region, compared with two a year ago.

Added credibility

Traveling with the governor makes it easier to open doors, say those on the mission. Sheila Spradlin of Fifth Third Bank's international division has been to Japan more than 20 times.

Having someone of Taft's stature along raises the importance of every event, she said.

"It's always great to have meetings with the governor," she said. "There are always very large receptions, and many of the people at those receptions are our customers. It adds a lot of credibility to our meetings, and it allows us to dig in deeper for new opportunities that are coming down the pipe."

Hensley said Japanese companies match the level of executive title for title. Bringing a governor "gets us access to higher level executives at the companies we're pursuing," he said. "If you're bringing the governor with you, you're likely to have the president or chairman in the meeting, so you're talking with the ultimate decision maker."

What that means for the mission is that at least a few of the meetings may involve closing deals that have long been in negotiation. Within months of the last mission to Japan, Warren County landed two big investments by Japanese companies - a $60 million expansion of an automotive brake plant, and a $27 million automotive electronics plant. The governor had his hand in both of those while in Japan in 2000.

The cost to taxpayers is about $130,000, or $10,000 for each of the 13 state employees on the mission. All others pay their own way.

Taft is confident these missions pay off. "It takes weeks, months, sometimes more than a year before some of the contacts and connections we make really bear fruit," he said. "It also demonstrates to our Japanese investors in Ohio, of which we have many, that we value their presence in Ohio, we're sensitive to their concerns. And, we're making the extra effort in coming to Japan to demonstrate that we're going to do everything we can to help them be successful in Ohio."

Taiwan stop

The mission will also hop to Taiwan for two days. One of the big events on that stop will be a reception for former Buckeyes - alumni of Ohio colleges and universities who live in Taiwan.

"We think it'll be a lot of fun, but we think there is benefit beyond the fun," said Kirk Merritt, deputy director of the Ohio Department of Development's international trade division. Many of those alumni are business executives, academics or government officials, and courting them might lead to investments down the road.

E-mail johnb@enquirer.com