The SMPS Atlanta Chapter’s November program focused on international business and local A/E/C firms working abroad. The Panelists were Bill Griffin, Chairman of the Board, Rosser International; Helen Davis Hatch, FAIA, Principal and Vice President of Client Relations with Thompson, Ventulett, Stainback & Associates; Richard Taylor, a Partner with HLB Gross Collins, an accounting firm; and Danielle Fernandes, Project Manager of Business Engagement with the Atlanta Development Authority. The panel was moderated by Andrew Schutt, a Partner with Arnall Golden Gregory law firm.
What is attractive about Atlanta? What makes our city easy to sell?
Richard Taylor responded that our people are friendly. Other responses included: - A good labor supply particularly of technically savvy people aged 25-35
- Having the largest airport in the work in our back yard is very appealing to CEOs
- Top notch colleges and universities that actively partner with private industries
What would you change about Atlanta?
The response was unanimous…our highway system. While the city has a state-of-the-art system, it’s obviously too crowded, and the only solution would be to have a metro system that actually goes somewhere. Danielle Fernandes added that the only other negative she has heard recently about Atlanta is that there should be more focus on the public middle school and high school systems because they’re not as competitive as they should be.
How do you learn, early on, about business opportunities interested in moving into Georgia?
Danielle says that they partner with the state chamber and with Georgia Power, and also have connections within the booming life sciences industry. Richard says that the local chambers of commerce and the Georgia Economic Development office are good sources of information.
Have you been asked in recent years about water resources in Georgia in light of our recent drought conditions?
Neither one of them have been asked about it. They said they tend to focus on business services issues. Plus the city of Atlanta just bought the Vulcan quarry which will function as a water reservoir for the area.
What do you focus on when trying to bring business into the city?
Responses included:
- Understanding your client’s needs
- Maintaining confidentiality
- Learning to connect with the people
- Learn to adapt to cultural differences (the book “Kiss, Bow, or Shake Hands” was referenced)
What are some of the current and near future challenges?
Richard responded that the financial markets are certainly tight and there is definitely lower than normal activity. Danielle added that there are several domestic projects that are on hold until at least January. They both agreed that internationally, Europe is more affected than the Asian markets, and overall there is more activity in China and India.
Where should companies open offices?
Helen Hatch said that she feels the days of US companies working in China and the Middle East are numbered. Right now they need our expertise but that won’t last forever. China needs it more than Dubai for example. She stated that she thinks the Dubai bubble could burst at any moment. Bill Griffin added that India will keep going for a while, but overall it won’t be as strong as it has been.
What are some of the challenges working internationally?
Helen said that the most challenging place to work has been China and a large part of that has been because of cultural differences. First of all it’s not a democracy and it’s an insult to say no. As a result, most often they will tell you what you want to hear, which is not what is actually going to happen in the end. She also said that design competitions are really expensive and it’s a major investment you have to be prepared to make.
How did you enter the international markets?
Bill said that Rosser had employees on staff from the Middle East and wanted to work there, so the company made a commitment to put people on the ground there. Helen said that TVS’ work began with a retail client in Chile that they met through ICSC in the early 1990s. They are still doing work with that client, although they don’t have an office in Chile. Conversely, they wanted to sell their convention center expertise in China, and took one of their employees in Atlanta, who was of Chinese decent and wanted to go to back to China, specifically for that purpose. It took them 3-4 years of consistently selling to finally get work. With Dubai and India, they also had architects on staff that wanted to go to those countries to develop relationships. Additionally they also had contacts in the US through ULI that took them to the Middle East to work.
Some of the challenges that TVS and Rosser face working internationally include:
- Cultural differences
- Knowledge of the legal system (or lack thereof)
- Civil codes
- Local labor laws/labor pool
- Taxes and tariff issues (for instance there are double taxes in India)
Richard offered that he had assisted clients in both Russia and Algeria and found that official in those countries were, for the most part, corrupt. There were bribes required at every turn for one company that was trying to export a product out of the country.
Helen said the common denominator is relationships and it’s all about who you know. She said that TVS would never enter a design competition if they don’t know the owner and if the owner didn’t think highly of them. She also said they only decided to open international offices when clients demanded it, and that sometimes they still debate whether some offices should be representative offices or fully staffed offices, but it’s all based on what the client wants. She said they’re a very culturally diverse firm: there are 22 languages spoken by members of their Atlanta office.
How much time did it take for your firm to see a payoff for your efforts?
Helen said about 4 years in China and about 2-1/2 in Dubai. Rosser said it took about 3 years in the Middle East. Both agreed that firms should plan on about 4 or 5 years.
Take-aways from the panel members:
- There will be manufacturing and distribution centers moving into areas outside the city. Within the city, business services/human capital jobs will continue to move in, primarily those in the life sciences, telecom, engineering, and other high tech industries, because of opportunities to partner with local universities.
- A global economy is here to stay, and countries where there is still work, should you chose to open and office there, include Brazil, India, China, Mexico, and parts of the Middle East.
- One area that may see a lot of attention is the upgrading of infrastructure. Governments may pump money into infrastructure to get the economy moving again.
Lisa B. Roberson, CPSM
Newcomb & Boyd
EAC Member, SMPS Atlanta
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