California is the fifth largest economy in the world. It is the number one state for food and agricultural exports. Our state "handles over $580 billion in exports and imports, relies on the skills and talents of 40 million residents, and leverages its leading position in the world to propel the economy forward," according to the California Governor's Office of Business and Economic Development (GO-Biz). GO-Biz reports that "California is a leader in the United States for two-way trade, agriculture exports, and foreign direct investment. These numbers translate to millions of jobs across the state."

International trade is also a vital component of the East Bay's economy. The International Trade & Investment Forum held by the East Bay Economic Development Alliance (EDA) last November discussed the importance of international trade to the region. "The East Bay story about international trade really begins with the Oakland Port," says Stephen Baiter, East Bay EDA Executive Director. "There's a lot of activity at the Port. The overall growth trajectory the past couple of years has been on an upward tick."

Port of Oakland Means Business

When people discuss international trade, they are often referring to the import and export of physical goods. In terms of traditional international trade, the Port of Oakland plays a critical role in the Northern California megaregion and for many companies at Hacienda. The Port of Oakland includes the Oakland Seaport, Oakland International Airport, and nearly 20 miles of waterfront, which includes Jack London Square. The Port's five-year strategic plan, called Growth with Care, pairs business expansion with community benefits, envisioning more jobs and economic stimulus as the Port grows. Together with its business partners, the Port supports more than 84,000 jobs.

That alone makes the Oakland Port a mighty economic force. The Oakland seaport is the fifth largest container port in the United States. In 2019, it handled the equivalent of 2.5 million 20-foot cargo containers. In 2020, the Port reported a year-over-year import volume increase. Exports rose 3.3% in January, up for the fourth straight month. The Port said consumer demand in both the United States and in Asia spurred cargo volume increases in imports and exports. Moreover, the Port's Oakland International Airport is nearing its all-time high in terms of passenger count. Outsiders may be surprised to learn that the Oakland airport has the largest share of air cargo of all Bay Area airports, coming in ahead of the San Francisco and San Jose airports.

Access to air, shipping, and trucking routes is important to Tri-Valley manufacturers who need access to local, regional, and international customers. Hacienda's ideal location at the intersection of two major Interstate freeways and near efficient goods-movement facilities makes it easy for tenants to deliver their products across the street or around the globe. Many successful companies at Hacienda thrive thanks to international trade and global connections.

Medical device manufacturer and developer NeoTract, for example, pioneered the UroLift System. This month the company, which is headquartered at Hacienda and a subsidiary of Teleflex Incorporated, announced that 100,000 patients have been treated globally with its UroLift System, a proven, minimally invasive technology for treating lower urinary tract symptoms due to benign prostatic hyperplasia. The technology is now available to patients in many European countries, Australia, Canada, Mexico, and South Korea, as well as the US.

Similarly, Roche Molecular Diagnostics (RMD), which is also headquartered at Hacienda, is a business area of Switzerland-based Roche Diagnostics. RMD develops, manufactures, and supplies a wide array of innovative medical diagnostic products, services, tests, platforms, and technologies around the world. Or consider IntegenX, which previously had its headquarters at Hacienda and was acquired by Thermo Fisher Scientific in 2018. IntegenX's technology is used in the government laboratories of more than 17 countries to generate forensic DNA profiles. Then there is ZEISS Microscopy, the world's only one-stop manufacturer of light, electron, X-ray and ion microscope systems. The Germany-based enterprise has a production and development office at Hacienda, which contributes to its customer base locally and abroad.

Global Digital Trade

Clearly, traditional international trade is key to the prosperity of many Tri-Valley enterprises. So, too, is global digital trade. Global digital trade is now worth an estimated $25 trillion, according to a recent article in ZDNet. There is no accepted definition of digital trade, according to the nonprofit Brookings Institution. But by any definition, global digital trade is a growing and an important part of the Tri-Valley economy.

Selectra offers one case study. The company is the leading energy price broker across France and Spain. In 2015 alone, Selectra was responsible for more than 200,000 utility company switches. Across offices in Istanbul, Madrid, Paris, Rome, and Vienna, Selectra employs 230 people who rely on Zoho cloud-based customer relationship management (CRM) tools to convert more leads, engage with customers, and grow company revenue.

Zoho, which has its US headquarters at Hacienda and offices in India, China, and Australia, offers one of many examples of the global digital trade that powers scores of Tri-Valley success stories. Currently Zoho CRM serves more than 150,000 businesses in 180 countries. Plex Systems, another Hacienda tenant, pioneered enterprise resource planning (ERP) software for manufacturers. Plex was one of the first cloud ERP companies in the world. The company's cloud solutions for the shop floor connect suppliers, machines, people, systems, and customers with capabilities that are easy to configure, deliver continuous innovation, and reduce information technology costs. Today Plex supports nearly 615 organizations and 2,089 production facilities in 22 countries around the world.

When it comes to international trade, Tri-Valley companies have not yet attracted as much foreign investment as some better known areas of the San Francisco Bay Area. Robert Sakai, Technology & Trade Director for the East Bay EDA, expects that to change as more foreign investors learn about the advantages and strengths of the Tri-Valley. He points to the rise of venture capital investments in the Tri-Valley as one important factor. He also notes a couple of unexpected elements that may lead to more foreign investment.

These surprising elements are the San Francisco Premium Outlets in Livermore as well as the Intermediate League World Series. The Outlets draw many foreign tourists every year. So does the Intermediate League World Series, a baseball tournament for children aged 11 to 13 years old, that is also held in Livermore. In 2019 the event drew 35,000 visitors, many of them from overseas. "Those types of things do a lot to raise the profile of the East Bay," says Sakai.

There are other Tri-Valley events as well with international appeal, thanks in part to the work of Visit Tri-Valley to attract such events. But regardless of foreign investment, international trade is an important part of the area's economy. Whether Tri-Valley companies are manufacturing goods or delivering cloud-based digital solutions, customers around the globe are eager to use their innovative products.

For more information about the Governor's Office of Business and Economic Development, please visit www.business.ca.gov.

For more information about the East Bay Economic Development Alliance, please visit www.eastbayeda.org.

For more information about Hacienda, please visit www.hacienda.org.