KOTRA Supports Government and Automotive·Heavy Equipment Entry into US Supply Chain

September 9-11: 2024 Global Partnership USA Held in Chicago, USA

KOTRA held a partnership event in the United States with the government to help automobile and heavy equipment companies enter the U.S. supply chain. The event provided opportunities to communicate about management difficulties by matching finished vehicle companies like General Motors (GM) with global automobile and heavy equipment gear buyers.

Exterior view of KOTRA headquarters in Yeomgok-dong, Seocho-gu, Seoul. [Photo by KOTRA]

KOTRA announced on the 11th that it dispatched a trade delegation to Chicago, USA, for three days starting on the 9th (local time) in cooperation with the Ministry of Trade, Industry and Energy to hold the '2024 Global Partnership USA.' The event was organized as part of the 'Top 10 Promising Market Trade Delegations,' which aims to achieve the highest export volume ever this year. It was conducted to support domestic material, parts, and equipment (MPE) companies in entering the global supply chain. The event consisted of one-on-one export consultations, a U.S. market entry strategy seminar, and a visit to the Chicago International Manufacturing Technology Show (IMTS).

First, at the one-on-one business consultation held on the 10th, more than 20 companies including finished vehicle companies like GM and global automobile and heavy equipment buyers participated, conducting about 150 consultations with 53 domestic companies. A GM representative who participated in the consultation said, "We joined the event to meet Korean battery material and equipment companies leading the secondary battery field," adding, "We had practical consultations by connecting with Korean companies that meet GM’s demand."

As a side event, a seminar held on the 9th featured speakers from Caterpillar, a leading U.S. heavy equipment company, and IMEC, a manufacturing support organization, who explained trends in U.S. manufacturing and global companies’ supply chain entry strategies.

David Bowley, chairman of IMEC, said, "Cooperation between the two countries in supply chain management and technological innovation is important for the development of the manufacturing industry." A Caterpillar representative stated, "The current trade environment in the U.S. is favorable for Korean companies," emphasizing, "It is important to utilize the tariff benefits of the Korea-U.S. Free Trade Agreement (FTA), establish professional networks with buyers, and build continuous cooperative relationships."

The U.S. government plans to invest $1.2 trillion (approximately 1,615 trillion KRW) by 2030 through the Infrastructure Investment and Jobs Act (IIJA), which took effect in May 2022, for large-scale infrastructure projects such as bridges, railroads, ports, water and sewage systems, and broadband networks. Demand for construction equipment is expected to increase. The trend of reshoring production bases of major U.S. manufacturing companies and establishing new manufacturing lines is continuing, leading to increased demand for automation machinery and equipment due to the digitalization of manufacturing processes.

Kim Rak-gon, head of KOTRA Chicago Trade Center, said, "The rapidly changing trade environment in the U.S. is creating new opportunities for Korean companies amid the global companies’ supply chain diversification movement," adding, "KOTRA will continuously identify opportunities for global companies’ supply chain transitions and help our MPE companies export to the U.S."

Meanwhile, the Ministry of Trade, Industry and Energy plans to solidify export growth momentum by dispatching trade delegations to Germany (future mobility), Japan (digital transformation-related manufacturing industry), and other countries following this event, starting with the first trade delegation to the United Arab Emirates (UAE) in March.