International companies headquartered in Upstate New York have performed significantly better than their domestic peers over the past five years, according to a new report commissioned by HSBC Bank USA, N.A. (HSBC) and the World Trade Center Buffalo Niagara. ‘HSBC Spotlight on U.S. Trade,’ the first in a series of U.S. reports and analyses of publicly-traded companies in key regions around the U.S., shows that between 2007-2011, global businesses based in Upstate New York achieved almost three times the growth rates and earned over 10 per cent more in revenue than domestic businesses in the area.
The inaugural HSBC Spotlight on U.S. Trade report was conducted to investigate the impact of international trade on the top 30 publicly-held companies in Upstate New York (Rochester, Syracuse, Buffalo-Niagara Falls, and the Capital District) based on historical revenue data. Key findings from the report show that Upstate New York businesses operating internationally are:
- Growing revenue faster: Global companies in Upstate New York saw revenue grow at an average rate of 4.59 per cent from 2010 to 2011, while their domestic peers expanded by only 1.69 per cent over the same period.
- Earning more: In 2011, global businesses earned $2.67 billion more in revenue than domestic businesses in the region.
- Increasing the revenue gap: The gap between global and domestic companies has been widening since 2008, with global companies earning 13 per cent more in revenue on average over the last five years.
Kevin Quinn, HSBC’s Head of Corporate Banking for Upstate New York, said, “The report’s findings are consistent with what we fundamentally believe at HSBC, which is that an overseas customer base can insulate you from domestic market fluctuations and helps harness the potential and growth of emerging global economies.”
Chris Johnston, President, World Trade Center Buffalo Niagara said, “Upstate New York has a rich history and connection with international trade, dating back to the construction of the Erie Canal. We advocate a continuation of that tradition, which opens doors and allows our local business community to flourish.”