GlobalScot, Bob Dewar, explains why the USA continues to be an attractive destination for Scottish business.
As we enter a new political landscape, both in the United States and back home, you may be wondering how future trading relationships will shape up. Should your business continue or begin trading with the US?
The USA continues to be Scotland’s top international trading partner, worth £4.6 billion and representing 15.9% of Scotland’s total exports.
Demand is out there for quality Scottish products and services. And here’s why you should be too.
Sector opportunities favour Scotland’s strengths
First, and perhaps most importantly, the economy in this US is continuing its recovery. Both consumers and businesses have money to spend and there are opportunities for foreign goods and services. In particular, the tech industry, oil and gas sectors and healthcare offer particular opportunities.
While many of the media headlines may cause concern, business activity is gaining momentum and growth is expected to continue.
With a population of 350 million, the US represents a significant market for Scottish companies. A clear and consistent message has been, and continues to be a welcome to companies operating in the US and creating as many jobs as possible.
Reduction in regulatory requirements
Second, the new administration has promoted an agenda to free up business regulations in the US. On a large scale, there’s talk of rolling back legislation such as the Dodd-Frank Act, which imposed oversight on financial companies in the wake of the 2008 financial crisis. For smaller businesses, the new administration aims to reduce regulatory requirements applicable to US businesses by two thirds.
In recent months, there’s not yet been a paradigm shift in the business environment for Scottish businesses in the US. Scottish companies are still viewed as honest, entrepreneurial and trustworthy trading partners in the US and are well received throughout the country.
Think global, act local
Scottish companies need to ‘think global and act local’ to capture the hearts of American consumers and businesses.
Creating a subsidiary in the US with a US trading address, phone number and US styled officer titles creates the perception for your trading partners that they are dealing with an American entity, even when all of your resources may be located back in Scotland.
Especially in ‘beauty contests’, where your products and services may be competing with those of a local vendor, the ability to ’look’ the same as your competitor prevents US purchasers from discriminating on the basis of national prejudice.
The process of creating a US entity is quick, relatively cheap to complete and provides a gateway to bank accounts, tax ID numbers and immigration routes for employees.
GlobalScot could be your greatest asset
Scottish companies that do pursue opportunities in the US, should capitalise on the GlobalScot network for assistance.
GlobalScot members come from diverse backgrounds including business organisations, Fortune 500 companies, investment banks and professional firms.
Besides providing mentoring and advice on all aspects of doing business in the US, the network can generate contacts and introductions in specific industries and organisations that can be critical for Scottish companies entering or expanding their business in the US.
Partnering opportunities
Technology companies and traditional businesses will find a smart, motivated workforce in the US that share your vision of building businesses that serve the population and embody the American Dream.
You will find that they will partner with you to create a bright future.
Find out how GlobalScots can help your business