From global stock-market selldowns to travel warnings for U.S. citizens, the effects of the ongoing protests and unrest in the North African country are spreading to every region on the planet. Finding connections between your local economy and companies, markets, products and industries affected by Egypt-driven slowdowns will be of interest to audiences keeping abreast of developments around the globe. According to this Jerusalem Post report from June 2010, Egypt trade with the United States grew 55 percent in the first quarter of 2010, compared to the same period a year earlier.
Here’s a U.S. Commerce Department site on doing business with Egypt, and a link to the U.S. Department of State’s backgrounder on Egypt. The CIA World Factbook section on Egypt also has basic facts and background information.
For businesses and consumers, the spreading effect on already-rising oil prices is of immediate concern. (In part due to fears about the closure of the crucial Suez Canal shipping route, though reports vary about that possibility.) Clearly – even ifyou’re not in a big oil-producing region – you’ll want to contact local refiners, distributors, gas stations, heating oil suppliers, construction firms and other companies that operate heavy equipment, commercial real estate facilities managers – any entity that buys or sells transportation and heating fuel, for starters. (Keep in mind that larger firms may hedge on prices by advance purchasing for contracted pricing, so market price increases won’t affect every company.) The federal Energy Information Administration hasn’t updated its short-term forecast vis a vis Egypt yet, but its analysts generally are accessible and helpful. And according to this EIA profile of Egypt, the country also exports a great deal of liquified natural gas. Will slowdowns create any hardship or opportunity for players in your area?
Be sure to check for local trade ties to Egypt via this Census Bureau site, which sorts imports/exports by state by country of origin; check with your state’s commerce department, large manufacturers, trade groups and economic development authorities for other current or pending relationships. Don’t forget university business schools and African/Egypt studies departments at area colleges; they may be aware of other business/economy oriented programs. And speaking of academics, check on local study-abroad exchanges with Egypt; will the current strife jeopardize any summer or fall programs, and what’s the status for students currently enrolled or participating?Aside from energy, Egypt is an important tourism destination, increasingly popular with Americans. Here’s a PDF fact sheet noting that representatives from a number of U.S. travel organizations visited Egypt recently; you might glean sources from groups listed in the release. Or, find local travel groups (charter companies, senior citizen organizations, travel agencies, travel clubs like the Nomads) about how they’ll handle pending plans.
Textiles are another important source of trade; we’ve all heard of Egyptian cotton bedding, clothing and other housewares. Check with locally headquartered retail chains about supply concerns and alternative vendors. As we always say, Who benefits? If imported cotton becomes problematic, are domestic growers and suppliers likely to see any boost? What about purveyors of substitute products — synthetics, etc. The National Cotton Council may be another resource.
I’d check in with any defense contractors in your area, either OEMs like fighter jet maker Lockheed Martin, which is building F-16s for Egypt or parts suppliers – the federal Defense Security Cooperation Agency has oversight of these sales; might be worth a call to their Europe Africa Divison. The National Defense Industrial Association also offers a list and map of local chapters.
And here’s a timly just-out report from The Atlantic about Egypt’s lobbying ties to the U.S.
Shipping companies, supply chain logistics firms and airlines all are worth a check. Really, just about any key industry in your area may be feeling the effects of real or anticipated disruptions, the longer the unrest continues. Don’t feel shy about checking in with every company on your beat; you may uncover unexpected challenges or opportunities arising from protests half a globe away.
And one final, but important point: Check in with global firms about security risks to their personnel and operations; as this Wall Street Journal blog post notes, many multinational corporations already are working on safety and security processes to protect their overseas workers.
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