VALLEY GOES GLOBAL

By Don Shilling

In today’s economy, manufacturing success often is tied to exporting.

Ron Granato, who runs a small pipe distribution plant in Mineral Ridge, is getting accustomed to fielding calls from all over the world.

“I just got off the phone with someone from Colombia,” Granato, vice president of Specialty Pipe Tube, said as he explained an increasing volume of export shipments.

The plant, which employs 30, carries thick-walled pipe that is carried by only a few distributors. The pipe has special uses in building power plants, oil refineries and industrial equipment and is in demand in places such as China, Mexico and the Middle East.

As the rest of the world rushes to become industrialized, Specialty Pipe Tube is one of many local companies that is benefiting. Granato said about 20 percent of his shipments end up being used in foreign countries.

Exporting has been a key ingredient for many successful local companies because the domestic economy is struggling in many sectors, said Walt Good, director of economic development at the Regional Chamber.

“Companies that are embracing the global market are doing much better,” he said.

Starting about two years ago, chamber officials started to hear companies mention exports as a reason for expansion projects, Good said.

That was about the same time that the value of the dollar started falling. In the past two years, the value of the dollar against the euro has fallen 25 percent, for example.

A weak dollar makes U.S. goods more affordable overseas, which boost exports, Good said.

Recently, Good said has been working with two companies that are considering building new plants in the area, in large part to serve foreign markets.

One company already has a plant here but needs a larger location because of its growth in sales to Europe and Asia, he said. The other is a foreign-owned company that wants to put a plant in the U.S. because the low value of the dollar, he said.

Federal statistics show how the local area has benefited.

Exports from local companies totaled $1.34 billion in 2006, which was up 11 percent over 2005, the U.S. International Trade Administration said. For the first half of 2007, exports totaled $729 million, which put last year on a pace to top 2006. The statistics covered Mahoning and Trumbull counties in Ohio and Mercer County in Pennsylvania.

The statistics don’t capture all of the local products that are exported, however.

If an export product is produced locally but then shipped to another U.S. company for further processing or assembly, it usually would be counted under the export totals for the location of the second plant, said Seamus Kraft, a spokesman for the trade agency.

That would be the case for industrial machinery that is produced at Brilex Industries in Youngstown and later shipped overseas, said Brian Benyo, company president.

He said about 25 percent of his company’s work is sent to other countries. A growth in exports is one reason his company has been able to double its work force to 130 in the past three years.

Brilex doesn’t report exports to federal government, however. Its products are considered indirect exports because they are parts of a larger assembly that is produced elsewhere before being delivered to steel mills or other factories in places such as China and South America.

RTI Niles, which used to be known as RMI Titanium, is a local plant that is reporting increased exports.

It is part of RTI International Metals, which increased exports from $67 million, or 19 percent of overall business, in 2005 to $160 million, or 26 percent of overall business, last year.

Richard Leone, a company spokesman, said RTI doesn’t release export numbers for the Niles titanium mill but added that much of the company’s exported material would come from the plant. The company has more than 400 local workers.

RTI’s exports are expected to grow. It has signed two long-term deals to supply titanium to Airbus, a European aircraft maker. One started in 2006 but just reached full production this year, and another starts in 2010.

RTI also provides titanium for off-shore oil rigs that are used all over the world.

RTI is part of the second-largest category of area companies that are producing export products —primary metal manufacturers. These companies accounted for 20 percent of local exports in the first half of 2007.

The largest group of exporters locally were involved in transportation equipment, which includes cars and car parts. This group accounts for 58 percent of local exports.

Good said General Motors’ Lordstown complex ships cars to Canada that would be included in the total, and Delphi Packard Electric produces vehicle wiring components that also are exported to various car makers in Europe, Asia, South America and Mexico. The area has other auto suppliers that also ship products to other countries, he said.

shilling@vindy.com