Everybody's trade office.

California companies are enjoying unprecedented demand for their goods and services as international trade barriers continue to fall. One of the agencies that helps companies capitalize on this demand is the California State World Trade Commission (WTC), the state's export development agency.

The commission, created by state legislation in 1983, is guided by a 15-member panel of industry experts appointed by the governor and the legislature. "Ours is a novel approach to government-business relations," explains executive director Gregory Mignano. "We stand shoulder-to-shoulder with industry rather than toe-to-toe."

Specialized services are provided by the commission's three units: The Office of Policy and Research based in its Sacramento headquarters; the Export Finance Office in Los Angeles; and the Office of Export Development in Long Beach. The Office of Policy and Research provides information such as trade and economic statistics and foreign country background briefs.

The offices of export development and the export finance office comprise the commission's field operations, helping small and medium-sized companies develop and finance international marketing plans.

Financing export sales

Getting the order is just the beginning for companies trying to enter exporting or increase export sales. "These firms often find that obtaining the financing on their own is next to impossible," explains Irene Fisher, director of the Export Finance Office.

Since its inception, finance office loan guarantees have supported over $500 million in export sales. The Los Angeles area holds the lion's share of the guarantees -- 57 percent -- which have gone to Los Angeles and Orange County companies, which translated to over $276 million worth of export sales. The firms range from ice cream producers to manufacturers of high-tech equipment. The Export Finance Office provides working capital loan guarantees to financial institutions on behalf of small and medium-sized California companies in support of export transactions.

Qualified companies can obtain short-term working capital loans for specific export orders. Financial assistance is provided in the form of bank guarantees (pre-shipment working capital, post-shipment accounts receivable, or combination loan guarantees) of up to 85 percent of the loan with a maximum guarantee of $500,000 per transaction. Basic eligibility requirements are one year in business and 51 percent California content on total shipments. When companies cannot find conventional trade financing, the Export Finance Office provides added support and expertise to secure export loans. Over 100 financial institutions currently participate in the program.

Trade shows

The commission's Office of Export Development organizes California group exhibits at leading foreign trade shows. In 1991 alone, OED coordinated specialized California booths at 24 international shows. Participants benefit from reduced costs for displays; volume discounts on travel accommodations and consolidated freight shipments; and assistance by commission trade specialists. The export development office also offers the Automated Trade Library Service (ATLS), a free on-line database containing foreign trade leads, country- and industry-specific research reports, announcements of foreign trade shows, descriptions of government programs, a trade reference index, and a calendar of export-related events. ATLS is available to all California companies, 24 hours a day, seven days a week. Additionally, the office coordinates the development of export directories, such as the California International Trade Register, which lists over 7,000 California companies involved in trade.

Exporting entertainment

Among the companies that have been assisted by the commission is Iwerks Entertainment Inc. Since its founding in 1985 by two ex-Disney executives, the Burbank-based company has established itself as a leading supplier of highly sophisticated entertainment products to parks and theaters around the world. The company is tapping the big demand for its high-tech theater systems and has greatly increased its export sales to Europe and Asia. Filling the many export orders meant finding new sources of pre-shipment working capital. The commission's Export Finance Office issued a loan guarantee that resulted in a loan that enabled the company to fill a major order to Korea.

"Backing from the State of California was critical in financing this million-dollar deal," said Eric Rodli, president of Iwerks, which currently employs 90 people in creative and technical positions at its studio.

Software profits

Gamma Productions, based in Santa Monica, has been in business for 10 years and decided to go international three years ago. The company sells a leading-edge multilingual word processing software package that enables PC users to freely mix any combination of over 60 languages within a single document.

Gamma Productions has traveled overseas with the Office of Export Development every year for the past three years and plans to continue involvement with the program. President Linda Brandt says the company "could never have gone overseas by ourselves. OED's turn-key trade show program has been fantastic because it cuts the costs and reduces the hassles of marketing overseas." She notes that trade shows sponsored by the office of export development have been crucial to Gamma Production's export success. Since its entrance into the export market, the company's sales have increased by approximately 30 percent per year and over half of its business is generated by exports.

Additional information is available from the California State World Trade Commission at [phone], the Export Finance Office at [phone] and the Office of Export Development at [phone].