.
Looking at the economy of the United States, more than 28% of U.S. gross domestic product (GDP) is tied to trade and the expectation of many economists is that this figure will continue to grow in the years and decades to come. It is estimated that more than 38 million Americans jobs, or 1 in 5 jobs in the United States, depend on trade. And with 95% of the world’s consumers living beyond the borders of the U.S., it is evident that there is a great deal of opportunity for American businesses of all sizes to reach new markets for their products and services. The fact is we live in a global economy. It is hard to imagine the development known as economic globalization being reversed as international trade and the movement of merchandise, commodities, people and capital further integrate economies in both developed and developing countries around the world. Threats posed by slow economic growth, protectionism, health crises, criminal and terrorist organizations, and others may cause setbacks and, at times, even intimate a retreat from an interconnected world economy. But despite these challenges and an occasional glitch, the reality is that a global economy supported by a global supply chain, which provides a global marketplace for businesses to compete and consumers with greater choice, is here to stay. The real challenge is how to further develop and enhance the system to fuel economic growth and, through increased global trade, broaden and extend the path to prosperity. While possible new trade agreements intended to level the playing field for American companies tend to generate a great deal of media attention, there are other important ways to also advance the competitiveness of the United States in the global economy. Supply chain, customs, and trade facilitation issues provide an opportunity to accomplish just that. Increasing efficiency and predictability in the global supply chain by modernizing processes, eliminating bottlenecks and enhancing security will make the U.S. economy more attractive and American companies more competitive. For example, transportation and logistics represent 7.7% of U.S. GDP; by comparison, logistics costs represent 16% of China’s GDP, giving the Unites States a valuable comparative advantage over a top competitor. In fact, studies show that countries with efficient logistics systems experience an additional 1% in GDP growth and a 2% increase in trade. At the 2015 Global Supply Chain Summit, U.S. Commerce Secretary Penny Prtizker, stressed, “We need to work together as businesses and government to ensure our supply chains are more innovative, more streamlined and more efficient. This is critical to our nation's economic competiveness and to the expansion of America's private sector which is the driver of employment in our country and the back bone to our economic success.”   Ann Beauchesne, the U.S. Chamber of Commerce's vice president for National Security and Emergency Preparedness, asserted, “For our small and medium sized businesses, efficient supply chains allow them access to 95% of the world's GDP in less than three days. For our manufacturers, global supply chains are a competitive necessity that allows them to operate in a just-in-time production environment. But major barriers at the border that inhibit the free flow of these supply chains exist. Whether it is global customs, security, regulatory, infrastructure or other issues, these barriers hold back economic growth.” There is widespread recognition that reducing barriers and boosting efficiencies and security in the supply chain will lower transaction costs and make America more competitive. While there are many aspects of the supply chain that can be examined, an important place to start is America’s ports. The United States is served by some 360 commercial ports that provide approximately 3,200 cargo and passenger handling facilities. According to the American Association of Port Authorities, there are more than 150 deep draft seaports accommodating ocean-going vessels, which move over 99% of U.S. overseas trade by weight and 65% by value. The Department of Transportation projects that total freight moved through U.S. ports will increase by more than 50% by 2020, and the volume of international container traffic will more than double. To support a growing economy and ensure America remains competitive, public investments in our marine transportation and shipping systems are essential. Such investments will apply technological advances to modernize systems which will produce gains in efficiency, safety and expand capacities. The construction of a state-of-the-art, non-intrusive, cargo inspection facility at the Port of Boston is an example of government authorities working with the private sector to utilize an important innovative technology to achieve greater efficiencies as well as enhance security. The Massachusetts Port Authority (Massport) has turned to Passport Systems, Inc. to deploy its SmartScan 3D™ Automated Cargo Inspection System there to keep cargo processing smooth and efficient while more effectively detecting and identifying contraband. SmartScan 3D™ integrates Passport’s proprietary technologies with conventional high-resolution imaging and intelligent passive radiation detection to automatically clear or detect threat objects in less than two minutes. Dr. Robert J. Ledoux, President & CEO of Passport Systems, affirmed, “Passport Systems uses a range of revolutionary technologies, designed to protect people, borders and economies from growing forms of threats. Upon delivery, the SmartScan 3D™ scanner is expected to increase the effectiveness by which cargo coming through the Port of Boston is assessed by providing automated materials identification. Our mission is to provide advanced technology and solutions for enhanced safety, security, and contraband detection. We look forward to advancing this capability and seeing that mission to completion.” The global economy is here to stay. In order to remain competitive and take full advantage of the global marketplace, it is imperative that the private and public sectors in the United States work in collaboration to support a dynamic and efficient supply chain. And critical to achieving this objective is ensuring our seaports have modern infrastructures and the latest technologies to securely and efficiently handle the higher volumes of cargo anticipated as we move further into the 21st century. Joy Lutes is the founder and president of Meridian 77 Consulting, LLC, a public relations firm based in Alexandria, VA.    

About
Joy Lutes
:
The views presented in this article are the author’s own and do not necessarily represent the views of any other organization.

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Meeting Growing Global Trade Opportunities by Modernizing Infrastructures

City Infrastructure Planning with Roads and Buildings
November 19, 2015

Looking at the economy of the United States, more than 28% of U.S. gross domestic product (GDP) is tied to trade and the expectation of many economists is that this figure will continue to grow in the years and decades to come. It is estimated that more than 38 million Americans jobs, or 1 in 5 jobs in the United States, depend on trade. And with 95% of the world’s consumers living beyond the borders of the U.S., it is evident that there is a great deal of opportunity for American businesses of all sizes to reach new markets for their products and services. The fact is we live in a global economy. It is hard to imagine the development known as economic globalization being reversed as international trade and the movement of merchandise, commodities, people and capital further integrate economies in both developed and developing countries around the world. Threats posed by slow economic growth, protectionism, health crises, criminal and terrorist organizations, and others may cause setbacks and, at times, even intimate a retreat from an interconnected world economy. But despite these challenges and an occasional glitch, the reality is that a global economy supported by a global supply chain, which provides a global marketplace for businesses to compete and consumers with greater choice, is here to stay. The real challenge is how to further develop and enhance the system to fuel economic growth and, through increased global trade, broaden and extend the path to prosperity. While possible new trade agreements intended to level the playing field for American companies tend to generate a great deal of media attention, there are other important ways to also advance the competitiveness of the United States in the global economy. Supply chain, customs, and trade facilitation issues provide an opportunity to accomplish just that. Increasing efficiency and predictability in the global supply chain by modernizing processes, eliminating bottlenecks and enhancing security will make the U.S. economy more attractive and American companies more competitive. For example, transportation and logistics represent 7.7% of U.S. GDP; by comparison, logistics costs represent 16% of China’s GDP, giving the Unites States a valuable comparative advantage over a top competitor. In fact, studies show that countries with efficient logistics systems experience an additional 1% in GDP growth and a 2% increase in trade. At the 2015 Global Supply Chain Summit, U.S. Commerce Secretary Penny Prtizker, stressed, “We need to work together as businesses and government to ensure our supply chains are more innovative, more streamlined and more efficient. This is critical to our nation's economic competiveness and to the expansion of America's private sector which is the driver of employment in our country and the back bone to our economic success.”   Ann Beauchesne, the U.S. Chamber of Commerce's vice president for National Security and Emergency Preparedness, asserted, “For our small and medium sized businesses, efficient supply chains allow them access to 95% of the world's GDP in less than three days. For our manufacturers, global supply chains are a competitive necessity that allows them to operate in a just-in-time production environment. But major barriers at the border that inhibit the free flow of these supply chains exist. Whether it is global customs, security, regulatory, infrastructure or other issues, these barriers hold back economic growth.” There is widespread recognition that reducing barriers and boosting efficiencies and security in the supply chain will lower transaction costs and make America more competitive. While there are many aspects of the supply chain that can be examined, an important place to start is America’s ports. The United States is served by some 360 commercial ports that provide approximately 3,200 cargo and passenger handling facilities. According to the American Association of Port Authorities, there are more than 150 deep draft seaports accommodating ocean-going vessels, which move over 99% of U.S. overseas trade by weight and 65% by value. The Department of Transportation projects that total freight moved through U.S. ports will increase by more than 50% by 2020, and the volume of international container traffic will more than double. To support a growing economy and ensure America remains competitive, public investments in our marine transportation and shipping systems are essential. Such investments will apply technological advances to modernize systems which will produce gains in efficiency, safety and expand capacities. The construction of a state-of-the-art, non-intrusive, cargo inspection facility at the Port of Boston is an example of government authorities working with the private sector to utilize an important innovative technology to achieve greater efficiencies as well as enhance security. The Massachusetts Port Authority (Massport) has turned to Passport Systems, Inc. to deploy its SmartScan 3D™ Automated Cargo Inspection System there to keep cargo processing smooth and efficient while more effectively detecting and identifying contraband. SmartScan 3D™ integrates Passport’s proprietary technologies with conventional high-resolution imaging and intelligent passive radiation detection to automatically clear or detect threat objects in less than two minutes. Dr. Robert J. Ledoux, President & CEO of Passport Systems, affirmed, “Passport Systems uses a range of revolutionary technologies, designed to protect people, borders and economies from growing forms of threats. Upon delivery, the SmartScan 3D™ scanner is expected to increase the effectiveness by which cargo coming through the Port of Boston is assessed by providing automated materials identification. Our mission is to provide advanced technology and solutions for enhanced safety, security, and contraband detection. We look forward to advancing this capability and seeing that mission to completion.” The global economy is here to stay. In order to remain competitive and take full advantage of the global marketplace, it is imperative that the private and public sectors in the United States work in collaboration to support a dynamic and efficient supply chain. And critical to achieving this objective is ensuring our seaports have modern infrastructures and the latest technologies to securely and efficiently handle the higher volumes of cargo anticipated as we move further into the 21st century. Joy Lutes is the founder and president of Meridian 77 Consulting, LLC, a public relations firm based in Alexandria, VA.    

About
Joy Lutes
:
The views presented in this article are the author’s own and do not necessarily represent the views of any other organization.