How to industry sign banking maryland presentation later
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Please stand by for captions. >> REBECCA BELLINGER: Good
evening, everyone, and welcome to the last installment of the
Center for Global Business distinguished speakers series in
international business for the academic year. Tonight's event is also
co-sponsored by the Ed Schneider for Enterprise in markets and
were he appreciate the their sposht for the event. My name is, I'm the sift tan
Director and I have the pleasure of welcoming and introducing our
even the this evening. As I mentioned tonight's event
is a part of our DSST the DSS is
supported in part by the Center for international business
education, this is a Title VI gran the provided by the U.S.
Department of Education. And we are 1 of 15 universities
across the country to have the grant which aims to foster
international understanding and promote the ability of U.S.
businesses to compete globally. We were rewarded this
recognition this past fall for the fifth time. And our DSS is intended to
address the latest trends in international business and bring
content to our students that supplement what they learn in
the classroom. While this is the last DSS of
the year the Center for global business will host their first annual Forum on
Tuesday, April 9th, where we will welcome Anne Bremmer the pressed the Eurasia
group to talk about his newest book. So
information on that can be found at our website and we hope to
see you there as well. So, this DSS tonight is
particularly special, as we welcome the newly appointed
Secretary of Commerce at Maryland, Kelly Shulz to the
Smith School of Business. Also a continuation of
celebrating women's month at the Smith School tonight's even the
will be an opportunity to learn about how
Secretary shuldz got to where she is today, understand the
priorities of the State of Maryland in terms of promoting
business development both in the state and globally, bringing
international investment to Maryland, and the skills
leaders, both women and men need in today's global economy.
Lastly, and perhaps most importantly tonight's even the is an
occasion to celebrate our continued partnership with the
Maryland Department of Commerce through this partnership
Maryland Smith has become a part of the global business ecosystem
of the state establishing us as a highly sought resource for
Maryland companies looking to solve their biggest business
challenges. A specific of outcome of our
partnership with commerce and in particular, the office of
international investment and trade is the ability to offer
our students both under-grafts and MBAs, an opportunity the to
consult with Maryland companies on their international business
challenges through the Maryland global consulting program.
And with that, before we get started, I'd leak to introduce
the Dean of the Business School here at Smith,
Alex. Who will introduce our honored
guest. (Applause.) >> Thank you very much, Marina,
we have -- I didn't realize this was the last. So we saved the
best to last. No pressure. But it is my great pleasure to
have Secretary Kelly shuldz with us
this evening and to introduce you briefly. As Marina
mentioned Secretary shuldz has just recently been appointed
over the last three months as the Secretary of Commerce for
the State of Maryland. She brings a wealth of knowledge to
the Maryland Department of Commerce from many years of
experience working in the government but also in the
private-sector tools and also being a small business owner as
well. She had previously served for
four years as the Secretary of the Maryland Department of
Labor, licensing and regulation, confirmed in February, 2015 and
also was a Member of the Maryland House of delegates
before that. At the Department of Labor, she
managed a very large much agency of over 2,000 employees and a
large Operating Budget and one of the things that I know you're
proud of because you mentioned it again when we met is the
apprenticeship program which grew to its highest level since 2008 with more than 10,000
apprenticeships statewide. I mentioned before that
Secretary shuldz has experience as a small business owner. She
was an owner of a cybersecurity firm which we know is an
important industry and growing industry in this great state.
Secretary shuldz received a Bachelor of Arts Degree in
Political Science from Hood College up in Frederick and
takes great pride in participating in community organizations such as
the Habitat for Humanity. Hosting our discussion is our
very own Executive Director for the Center for Global Business, Rebecca
Bellinger, so I will turn it over to you this evening.
>> REBECCA BELLINGER: Great. Thank you, Alex, and thank you,
Marina, for introducing this great event.
I'd also like to extend a warm welcome to you will a of you and
a good evening and not just all of you who are here but all of those who are joining us
via the live stream. I'd also like to welcome a couple of our
partners that we work with on a it Daly basis from the Maryland
Department of Commerce. The Managing Director of the office
of inter Nashly investment and
trade and her colleague. Thank you very much for being here
with us and certainly last but not least thank you so much,
Secretary Shulz for being here with us. I am honored and
delighted to be sharing the stage with such an esteemed
female leader in the state. >> KELLY SHULZ: Well, thank you
very much for having me, and Dean,
thank you for the very warm welcome. It's been wonderful
getting to know the group here over the last couple of hours.
I just want to preface for all of your undergraduates in the
room that I am in the first year of a four-year term. It means
I'm a freshman. So all of the questions should
be on a freshman level. That's all that I should say. You can -- and -- but I'm really
pleased to be able to be able to talk about not only what we do
at commerce but you know what we think about what's happening out
in the world globally and domestically, what we can do as
partnerships between the academic system and the
government as well. >> REBECCA BELLINGER:
Fantastic. So let's get started.
>> KELLY SHULZ: Of course. >> REBECCA BELLINGER: So Alex
already introduced you a little bit so we know a little bit
about your background but in terms of a freshman question I'd
like to start with asking you to tell us a little bit more about
your background and path to becoming the Secretary.
>> KELLY SHULZ: Well, there was no path, not a designed
path. I think it was all just taking
advantage of some opportunities that were presented to me and I
was a business owner. I worked in the department -- I
worked on defense contracting, worked
in Washington, DC, and decided on a
whim to run for the house of delegates.
And I won, I think I'd ever in a million years I would win that
position, but I did and I was a very proud
servant of my constituents in Frederick and Carol counties and
really got to grow and love that.
I ran for a second election in 2014 and I won that election to serve
those constituents again. Governor Hogan also won that
year his election. So after the election he came
toll and asked knee if I would be willing to serve in his
administration, and it's really hard to turn down a ziltion to
serve for the Governor had he is speciallily when you know good
things are going to happen. So I was honored to serve four
years as the Secretary of Department of Labor and the
secretary tar of commerce during that period of time he decided
that four years was enough. He was going back to the
private-sector tools and Secretary Gil served the state
honorably and exceptionally and so the Governor had asked me to
move over from the Department of Labor to commerce.
>> REBECCA BELLINGER: What a great path. Let's back up a
little bit though. >> KELLY SHULZ: Yeah.
>> REBECCA BELLINGER: So for the student audience in the room
can you tell us a little bit about what the role is of the
Secretary of Commerce in this state and more broadly, what
function the Department of Commerce serves in this state.
And maybe within that, what might be your goals for the next
four years. >> KELLY SHULZ: Oh, those are
good questions. So the Department of Commerce,
for those of you that do not know, we are the main leading
business developers of the State of Maryland. Our main goal is to be able to
grow, retain, expand, attract
businesses, both domestically and internationally, in any way,
shape or form that we can. Of so we have a dynamic team of
business professionals that are out every single day across the
entire state, looking to be able to not only see what the needs
of the businesses are, but to be able to provide
resources in ways in which they can benefit.
The other part of the Department of Commerce which is not --
well, technically business development related, we have a
very large much communications and marketing organization
within the department, where you see all of the open for business banners and the
advertisements, that all comes to the Department of Commerce.
These divisions and units of the office of tourism. We have an
office of the film. And office of the arts.
And so all of those organizations also fall within
commerce which also lead to economic development and growth.
>> REBECCA BELLINGER: Uh-huh. Great.
And what do you want to do over the next four years? Where do
you want to take Maryland? >> KELLY SHULZ: Bigger, better,
faster. >> REBECCA BELLINGER: Okay,
we'll quote you on that. >> KELLY SHULZ: That's really I
think our mission, I think over the
first four years in the Governor's administration we
have been able to build a great Foundation to be able to every
single day say that Maryland's goal is to be able to be open
for business. >> REBECCA BELLINGER: Uh-huh.
>> KELLY SHULZ: That is now becoming actual. And people all
across the country are starting to realize that, yes, Maryland's
motto is that we are open for business. And we've done it in
a lot of different ways, by going through and reducing
regulations, by reducing taxes and fees and different ways that
the businesses really know that we're there to support them.
Our customer service initiative has been second to none. It
should be a model for all government entities whether it
be at the Federal, state or local level, to make sure that
the Number 1 priority is to identify who your customer is. And when you're in government --
everybody is your customer and we are here to serve as opposed
to our customers serving us. And so building on that I think
is one of our greatest priorities, but expanding it a
little bit more, because we had that infrastructure, now it's
time to build on top. To be able to layer those successes
that we've had. Being able to go out to the different regions
of the state and understanding the different burdens and
hurdles that some regions have. But it's not just the Department
of Commerce initiative, it's a a
commerce in the little C, meaning of commerce initiative
which means that now more than ever we have a very formalized
process that we're putting together to bring in all of our
other agency part nertS, the Department of
Transportation, environment, planning. The Department of
Labor, all of the organizations that are responsible for
touching those businesses on an everyday level so that our
response to those needs is a joint response.
And then we're going to be able to itemize and really limit
licht miz our efforts in how we go back and we
strategically resolve those issues.
>> REBECCA BELLINGER: Collaboration is key.
>> KELLY SHULZ: Collaboration is the only way that we can get
success. >> REBECCA BELLINGER: That's
great. So to that point of collaboration and to some
earlier points you made about the Department of Commerce
really being there to support business development in the
state can you tell us a little bit about some of the specific
initiatives or outreach programs that promote business development in Maryland
or entrepreneur neural under prize
in the state. >> KELLY SHULZ: Sure, so part
of the tools that we have at the Department of Commerce are based
on what businesses can utilize in order to be able to give them
additional capital or make sure that they are going to get some
tax credits that's going to be to be
able -- for jobs to be created in their particular industry.
So the department has a series of incentive programs which
result in loans based on the number of jobs that are created,
your rate on those loans will be determined on your success of
those jobs that are created. And many of those loans could
turn into grants. So if a business takes out a
loan with the Department of Commerce, they fulfill their
commitment to a certain number of jobs. Then their loan is
forgiven and it's turned into a grant type process over the
course of a number of years that have been determined. But then
we also have very specific industry sector programs,
particularly cybersecurity. >> REBECCA BELLINGER: Uh-huh.
>> KELLY SHULZ: Biotechnology. Manufacturing,
those are areas that we've identified as growth areas in
the State of Maryland. So those businesses that want to grow,
expand or move into for the first time the State of Maryland
have tools that they are able to utilize, so
that they can get some relief from the expansion of their
business. >> REBECCA BELLINGER: I see.
>> KELLY SHULZ: Uh-huh. And being that I'm representing
this agency I would be remiss if I
didn't ask a follow-up question about programs, or initiatives
or support for small or medium enterprises in the state seeking
to go global or export or enter the global marketplace.
>> KELLY SHULZ: We're very, very for itch it in at the
department. As mentioned we have our international unit
within the department and their sole focus is to work with
businesses that want to increase their export potential so we're
very fortunate to be able to utilize some of our state
dollars but also to be able to receive Federal funds so that we
can take delegations of businesses that want to expand
but know that in order for them to expand they want to do that
on a global basis. So in one of our many global
offices around the country we design trade shows -- well, trade missions for
them, to be able to go overseas with the sift task and the
guidance of our very well trained staff so that they can
make those introductions to those global partners that our
businesses here in Maryland will be able to increase their export
potential and grow here in the State of Maryland.
>> REBECCA BELLINGER: Right. So you help Maryland companies
find distriters abroad or connect with potential customers
in the new mark thes. >> KELLY SHULZ: All of the
above and sometimes when we're out there we attract some of the
international businesses and bring them back to Maryland. T
a double duty. >> REBECCA BELLINGER: Soy a lot
of times we think about the other side or opposite side of
exporting is importing and for me I don't think that's what the other side is the other side is
F DI, foreign direct investment. >> KELLY SHULZ: Sure.
>> REBECCA BELLINGER: So what else does the state do to
attract direct investment here in the state and why is that
such an important the part of growing the economy in Maryland.
>> KELLY SHULZ: Well, I think it's a huge part because we
obviously live in a global world. Everybody who is here
understands we have a limited capacity for growth at some
point in time and to be able to diversify our portfolios is
extremely important important not only to us in the United
States but our global partners also know that they need to be
able to diversify. We work very closely with many members of the
embassies, we're very fortunate in Maryland that we are
geographically located toly and of the embassies, we understand
if there's events happening in Washington, DC we can be there
and have those conversations very, very quickly. And our
team does have a very good relationship with them.
But bringing international investment here means that our businesses
have a completely different model in which they can move
forward with. And to bring those businesses
here, we need to be able to utilize our
partners, and University of Maryland being one. Being able
to make sure that we have those soft landing spaces for those
international businesses. If they want to have a place in the
Mid-Atlantic region which many of them do, our proximity to Washington,
DC is very attractive to many of those global partners, and for
us to be able to set up that ecosystem so that they can come
here and have a soft landing and to be able to be helped with the
resources that they may need in order to be able to get started
here in the states. >> REBECCA BELLINGER: Right.
And specifically at the University we do have the
Maryland international incubator and that is one of those soft
landing spaces. >> KELLY SHULZ: I believe I met
the Director. >> REBECCA BELLINGER: I'm not
sure if he's still here. >> KELLY SHULZ: Maybe he's
watching as we are talking about him.
>> REBECCA BELLINGER: So, more about global markets.
So, given your perspective, your very broad perspective of the
state and industries and sectors that are thriving in the state,
do you think that there is a need for any specific industry
sector to expand into global trade? As a critical part of their
success in the state or their growth?
>> KELLY SHULZ: I think that there are several different
areas. Obviously when we look at Maryland's industries that I
had talked about earlier, our strategic industry
that is we're talking about, biohealth, the Life Sciences, cybersecurity, the
Aerospace and defense, and then, of course, advanced
manufacturing, each of those have particular areas around the
globe that can be very beneficial to their expansion
and I think need to be a part of that expansion.
We have a very close relationship with Israel.
Israel has said that they are the cyber capital of the world.
Well, Maryland has also kind of planted the flag and said we're
the cyber capital of the world so we're having a nice little
exchange, we'll give them that. We don't see them every day.
But we have been able to have trade missions to Israel and we
have them here very often as well to be able to share ideas
but not only to share ideas with us about business development
but so that our businesses locally can have that
opportunity to share best practices, to talk about the
different ways. Just the other day our office
met with the Ambassador of Estonia and if
you go back and you look at the history
of Estonia and what happened to their cyberworld, you know, a
couple decades ago, what they had to do in order to rebuild
the safety and security of their entire Network, that's all that
they are built on and the advancement of their government
entities is important for our businesses to understand what we
can do with that. Obviously, the Japanese economy,
they have an aging population. So
they will have a shortage of workers in the very near future.
They are already experiencing that now. So -- but what is the market in
Japan that could be helped and assisted with? That's the
healthcare industry, medical devices, you know, biohealth is
something that's very important for an Aging Committee to be
able to take advantage of so those are a couple examples.
>> REBECCA BELLINGER: That's great. There seems to be a lot
of opportunity for Maryland companies to go global.
>> KELLY SHULZ: I think that the opportunities are endless.
I think that it's a very big world. Of we're fortunate
enough to live very near to three major airports in
this region. And there is absolutely no reason why a
company once you get your feet on the ground here in the State
of Maryland, are comfortable to be able to have that inter-Nash
national experience. >> REBECCA BELLINGER: That's
what we believe, too, at the center and so we're really glad
to be partnering with you on some of these expansion
programs. >> KELLY SHULZ: Absolutely.
And to be able to know that you have the resources there to be
able to a sit you in that. >> REBECCA BELLINGER: That's
right. >> KELLY SHULZ: If accompany
decides that that's part of their business and growth model,
they are looking at a market that has not been completely
tapped into across the world we have the resources to be able to
research those markets, to be able to connect the them with
the partners, to be able to understand what the resources
are in those particular areas so that their exporting process is
as simple as it needs to be. >> REBECCA BELLINGER: That's
great. So one of the things you were talking about is as one of
the flagship industries in the state and in Israel is
cybersecurity. >> KELLY SHULZ: Yes.
>> REBECCA BELLINGER: And one of the research themes and one
of the real focus of the center as well as the school is the idea of AI, so
artificial intelligence and specifically for the center at
the intersection with digital trade, digital technologies.
So switching the conversation just a little bit how do you see
Maryland industry, Maryland businesses preparing for this disruption of AI and
new technologies in the workplace?
>> KELLY SHULZ: Well, first of all I think that the idea of
disruption is what every industry needs, what every
economy need once in a while in order to be able to tap into all
of the new innovative ideas and experiences that are coming from
students just like that are here at the University of Maryland.
I think it's healthy. I think it's up to us to look
broadly at what the total issue is and
to turn that flip side into an opportunity.
>> REBECCA BELLINGER: You will hum.
>> KELLY SHULZ: Which is what we are trying to focus on. But with -- with AI,
specifically, you have to look at that as an
opportunity to go back and what we have in our school systems,
in our K through 12 systems, in our Community Colleges and in
University systems to say: What are the common denominators?
What are those factors that all AI is going to need. So if
there's going to be misplaced workers and I don't know if
there's going to be as many as some people think that there
are, those displaced workers are going to be disrupted but they
are going to be disrupted into another industry.
So to make sure that our educational system has the tool
that is they need in order to be able to make those -- that digital process that that
digital imaging, that digital management, part of their fiber
because if they have that basic skill they will be able to move into the world of AI, doing the
same thing in the same industries, but in a different
way. >> REBECCA BELLINGER: Uh-huh.
So, would you imagine that we may need either in higher education or
the C through 12 system to adjust some of the content or
subject matter or skills training that we're provide to
go students so that they are ready for these changes in the
workplace? >> KELLY SHULZ: So now you
opened the door. You can take the girl out of labor but you
can't take the labor out of the Gil. Yes. I think we
absolutely do need to readjust what we think about our
educationally process when it comes to the new way of learning
workforce initiatives and advanced skills in order to be
able to fill those gaps of the future. Because we're seeing
those gaps right now. I mean, it's a reality. We have
thousands and thousands of jobs that are going unfilled because
of the lack of skills that are necessary to go into those types of
positions. So there was an amazing program
that was just unveiled business round
table in the greater Washington partnership last week which is a dual type of a
certification in digital management. And it's all of -- well, many
and I know the University of Maryland system was there so
their part of that collaboration, is to be able to
identify what universal Certification process looks
like. Not just for individual students
that are going into cybersecurity or
one of the STEM type fields but for everybody that may be going
into finance, liberal arts, teaching, because
everybody is going to need to be able to understand what that
digital footprint is in order to be able to manifest ourselves
into the new way of doing business no matter what the
industries are. >> REBECCA BELLINGER: Uh-huh.
So sounds like you have a lot of experience working with this
workforce development kind of training I think Alex mentioned
the apprenticeship program that you are spearheading as part of
the Department of Labor. Can you tell us maybe more about
either the apprenticeship program or other ways you would
Envision higher education and government agencies working
together to really close that skills gap.
>> KELLY SHULZ: So since you brought the topic up I'll talk
about apprenticeships for a moment. They are the greatest
workforce tool that we have. The idea of them going back a
couple hundred years in the United States specifically had
focused on trades and those occupations that dealt with
trades. And so we've done those types of
apprenticeships really well. They work.
And being able to look at that and expand it into all
industries, the idea of being able to get your education at
whichever education academic institution you choose, whether
it be a four-year University, a Community College or a Training
Center and then having that hands-on experience in an
environment and at a job in order to be able to increase the
skills grapple gradually over that period of time and get paid
for it, it's ideal for a four-year University, because
you can do an apprenticeship in two years or 3 years and bring
students into that work environment. I don't know about
how many students here in the audience work during
their College years but many do work part-time already. Why not
transfer them into an environment for that period of
time and connect the them with an industry that wants to be
able to teach those individual students how to be the employee
that they need in order to fill that specific gap?
So apprenticeship works for just about everybody involved. It
works for the student because they get lots of experience, job
offers at the end, obviously their academic training, they
get paid, which is very important. And the business
owner gets to be able to dedicate what that curriculum
looks like, what they are looking at
as far as the hands-on experience that workplace
experience that they need. The student learns how to work.
Some students don't know how to work yet.
>> REBECCA BELLINGER: Sure. >> KELLY SHULZ: And then the
community really gets the idea that there's going to be a
retention of those types of students particularly coming out
of our University systems in the State of Maryland, we're
developing an awful lot of talent here,
particularly at this University. And we want to make sure that we
retain them in the State of Maryland.
So how do we build those relationships and gain that
loyalty over a course of a period of years so those
students want to stay? And now we do have home-grown talent in
all of these great grown businesses.
>> REBECCA BELLINGER: So here at the Business School we have
under-grads and MBA and MS students who will go
into internship programs, how many students in the room have
had at least one internship over the course of their experience
here at Smith. >> KELLY SHULZ: Great. That's
great. >> REBECCA BELLINGER: Another
thing that we do to address this within higher education or a
four-year degree program is working with companies to bring
them into the classroom so either through consulting
programs like the joint initiative with commerce the
Maryland global consulting program as well as life cases
and other ways that we bring employers and companies seeking
to resolve their challenges into the classroom.
How many students have had an employer or a company or an
industry actually live in their classroom?
>> KELLY SHULZ: That's wonderful. That's great.
>> REBECCA BELLINGER: So while we may not yet be at the apprenticeship
stage we are at the same stage of bringing industry into the
classroom in the skills based training.
>> KELLY SHULZ: I have seen such an advancement with higher
ed over the last four years and I think that it's spreading and
it's going to spread fast. University of Maryland,
Baltimore -- or Baltimore County, had two
years ago now I guess time flies, they had
the first cybersecurity apprenticeship program at U MB
C. So it's kind of acting as a model. And then obviously the fort Mead
hiring directly from that program and it's growing and
expanding even more. It's coming, I know it.
>> REBECCA BELLINGER: Let's continue that conversation.
Moving the conversation back to the idea of the global economy,
if I can. So as Marina mentioned, this is
-- this talk that we're having now is part of a larger series. And last month we had Erik
Petersen of A.T. Kearney here where he was talking about and
really projecting the global economic outlook for 2019 so
we're three months in and if some of the students remember
that report from last month I'd like to ask you what it they
knowing about some of the things that Erik was talking about in
terms of the global economic outlook and how Maryland -- how
those trends might be affecting Maryland and how Maryland is
responding. >> KELLY SHULZ: So one of the
things or the first topic that came up in that report and that
conversation was this general over all slowing of the global
economy. From your perspective how do you
think we are feeling that and responding to in Maryland.
>> KELLY SHULZ: Well, I think that we're feeling it in some
areas but not in other areas so I'll give you
an example. Manufacturing is slowing down nationally. But in
the State of Maryland, because of some of the very direct
policies and incentives that we've had towards manufacturing
over the last four years, Maryland is one of the -- one of
the leading states on the East Coast for manufacturing growth.
So, in a sense, we saw manufacturing as a place where
we needed to be able to grow. Needed to be able to refill
those -- those jobs in certain parts of
the state. So, for example, everybody has
heard about the great manufacturing
climate in South Carolina. You turn on the news and hear they
have really great stats. Well, they are first on the East Coast
but Maryland is right behind South Carolina. By like not
even a percentage point. >> REBECCA BELLINGER: Uh-huh.
>> KELLY SHULZ: And I think that is very important to
understand that Maryland has had significant
growth in manufacturing over the last four years. So I think states have tools
like we have tools at the Department of Commerce in order
to be able to address those areas and try to attract
different businesses and being able to really super focus on
that. But I think diversification is
something that's a key factor. Also at the Department of
Commerce we do have a military unit that
focuses on Department of Defense contractors specifically and
other Federal type agencies. We know in the State of Maryland
that a big part of our economy comes
from the Federal Government. Just the proximity that we are
to Washington, DC. So at the state level we know we
have to diversify, but also helping our businesses whose major
contracts, major sources of revenue are with the Federal
Government, we know that we have to help them to diversify.
>> REBECCA BELLINGER: That's right.
>> KELLY SHULZ: So we put together very strong programs.
Just had one this week on Monday that any attended with our
military unit to make sure that those contractors know
diversification. And we can all take about
diversification and it sounds really great and it sounds easy,
particularly if you're -- you know, heavily into Federal
funding and that seems like an easy win, which, by the way,
it's not an easy win. >> REBECCA BELLINGER: Uh-huh.
>> KELLY SHULZ: But even getting I don't are self in a
commercial marketplace after that can be very, very
difficult. So when we look at our global
partners and what they're doing in some of the slow growth that
they are having or maybe even the decline in growth that they
are having, we have to make sure that our portfolio just like
they need to make sure their portfolio is diversified in
order to be able to survive the ups and downs of the markets.
>> REBECCA BELLINGER: Okay. The second topic that has come
up specifically within that report is growth in Asia. So, given that growth, despite
the economic downturn globally there is still a highlight
perhaps in Asia. Is there opportunity in Asian economies
for Maryland companies to engage and fined new markets?
>> KELLY SHULZ: Absolutely. I think the report said in Asia,
India is probably the fastest growing market.
>> REBECCA BELLINGER: Uh-huh. >> KELLY SHULZ: So I would
definitely think that there is certainly a potential for
Maryland companies. I know that we have had several trade shows
out in Asia. We will certainly go back with more trade missions
that are there. But even as importantly, helping
them to understand what the opportunities are here in Maryland for them,
because although the mark the that they are serving in their
particular region of the world may be very different than the
market that we're serving here in the States.
And so they are thinking of the same thing. They might want to
diversify their customer base, looking at the states as a a way
to diversify. Our job with that is to make
sure that they come to Maryland in order to be able to expand
their market in the United States and to be able to sell
them on many of the great reasons why Maryland is the best
place for business. >> REBECCA BELLINGER: And
Maryland is open for business. >> KELLY SHULZ: And Maryland
is open for business, yes. >> REBECCA BELLINGER: That's
right. >> KELLY SHULZ: And we have
Mountain the tans and bays and oceans and everything in
between. >> REBECCA BELLINGER: And crab
cakes. >> KELLY SHULZ: And crab cakes.
>> REBECCA BELLINGER: The last topic that I'll ask you for
your interpretation of is the unravelling of the global trade
system. What -- how is this affecting
Maryland? >> KELLY SHULZ: You know, I
think it's affecting each of the different states in very different ways. Again, it's -- if you were
heavily in invested at one point in time, if we had only auto
dealers or auto manufacturers in the State of Maryland it would
be difficult. Right? In order to be able to satisfy
those trade agreements. >> REBECCA BELLINGER: Uh-huh.
>> KELLY SHULZ: But I think Maryland has really come out of
this very, very well. If you look at our ports, the
port of Baltimore is one of the most highest achieving ports in
the entire nation. Certainly along the Eastern
seaboard. And being able to make sure that
our client base is ready to be able
to satisfy their needs in their market.
I think it will be tough for some industries, but to be able
to have that high-tech, that STEM focus in
the State of Maryland where we can build our home-grown product
and utilize our home-grown products.
It was an interesting concept when we met with -- this is just
an example about home-grown brothers in Maryland and to be
able to help them expand internally before they go and
export even outside of the state, is we
put incentives on for our cybersecurity companies, so
businesses that purchase cybersecurity products from
Maryland cybersecurity companies, they get a tax credit
to be able to purchase products made in Maryland and developed
in Maryland and the research in Maryland.
And I think that that has come a long way to be able to say: We
understand that the growth internally has to happen, and then we can help,
eternally. >> REBECCA BELLINGER: Okay. So all in all, not all is lost
for Maryland. >> KELLY SHULZ: I would say
we've gained 51,000 jobs since this
tile last year. >> REBECCA BELLINGER: That's
great. >> KELLY SHULZ: Our
unemployment insurance rate is three-tenths of a percentage
below the Nashly rate right now. We're below 4% and I think that
the future looks good, it looks positive in talking with our internal
economists. I think we see very positive
actions moving forward and that's both
with our international global partnerships and also our
home-grown partnerships. >> REBECCA BELLINGER: That's
great and this is really fantastic news for all of the
students in the room and joining us sir virtually who
will be on the job market in this region in the future.
>> KELLY SHULZ: Well, they need to know right now there are
more jobs in the State of Maryland than we can actually
fill. There are more jobs available
than there are workers out there today so do your due diligence
and do not close any door because behind every door is a
great opportunity. >> REBECCA BELLINGER: That's
great. Good. Unfortunately we can't end on that quote because
I do have some other questions but that's a good one.
So, Marina mentioned that we are celebrating women's history
month here at the 62ly. And I do want to ask you a
couple of questions as your, from your perspective.
>> KELLY SHULZ: Sure. >> REBECCA BELLINGER: As being
a female leader. You have been in public leadership positions
for quite some time, specifically within the House
and then two Secretary level positions and yet I think that it's still rare to
see women in C-Suite positions in industry as well.
So for all of the students and all of the both men and women in
the room, how is it that you make sure that your voice is
heard at the table? >> KELLY SHULZ: I talk loudly.
(Laughter.) >> KELLY SHULZ: I think you
come into a room with confidence, to be
able to understand that -- I mean, so I
get asked this question a lot, but I have to go back and I have to look, do
some like internal view of that. I've never felt that if I was
the only woman in the room that I was the only woman in the
room. That there was a deficiency somehow because I was
the only woman in the room. I never saw that as a hindrance
for some reason. So I would say the confidence in
yourself as a person, whether you're the only woman in the
room or the only purple person in the room, to
understand that your confidence is what is
going to make you succeed in what you
want to succeed in. >> REBECCA BELLINGER: That's
great. So confidence. >> KELLY SHULZ: Yeah.
>> REBECCA BELLINGER: Okay. Any other advice for the young
men and women, future global business leaders in the room in
terms of what they can do to help prepare for their
positions? >> KELLY SHULZ: I would say at
this point in time in your lives there's going to be so many
opportunities, there are going to be so many doors and people
that you're going to meet. And all of that is really, really
important. But there's also going to be periods of time in
your lives when you look at something and say: Wow, there's
no way that I could do that. Because that sounds like it's a
really big challenge. That looks like it's too hard.
And that thing that you look at and you say that's too hard, that's what
you should do. The thing that's too hard. Because you will
challenge yourself. You will rise to success.
In ever in a million years when I was -- I mean five years ago
even, never thought I was going to be a Secretary of labor, you
know, being in a Governor's cabinet. That was something
that was completely foreign to me. I never even really knew
how you did that, I don't even know if there's a book on how to
do it, but somehow you have to figure out how to do it. And the easiest thing for me to
have done would be to stay in the house of delegates, to stay
in my private career to continue to build the business that I was
building from the the hardest thing is to say I'm going to
take this challenge that nobody's ever taught me how to
do before and I'm going to find out a way to do it and that's
how I've been successful. >> REBECCA BELLINGER: I hope
everyone is taking notes. Before I turn it over to the
audience for questions I do have three
lightning round questions for you. The first one: Last week
was Spring Break so we're just back and maybe some of us are
still on Spring break mentally. Where would you like to go on
your next vacation. >> KELLY SHULZ: Anywhere warm.
>> REBECCA BELLINGER: Warm. If you could play golf with
anyone who would it be? >> KELLY SHULZ: It's going to
have to be Tiger Woods, right? But I don't play golf. So he'd
have to hit all my Balls for me. >> REBECCA BELLINGER: And my
favorite question from the lightning
round, it is basketball season, March madness, who is in your
final four. >> KELLY SHULZ: Okay so
disclosure, I grew up in Michigan, all right? But --
right. >> REBECCA BELLINGER: In case
you didn't hear, they were growns in the room.
>> KELLY SHULZ: There were growns, but I'm going to have to
go with anybody but Duke. How is that.
>> REBECCA BELLINGER: I will give you an applause on that.
(Applause. ) >> REBECCA BELLINGER: All
right. Let us please open the room to questions from the
audience. We do have a microphone that
will be passed around. And if you could introduce yourself and
your affiliation to the school or the event before asking your
question that would be great. And I think we have one here. >> Hi. My name is Scott. I'm an alumni and a professor in
the School of Architecture and planning, and I teach economic
development. If fact I'm going to have to
duck out here in just a moment because I have class tonight. But I also direct the EDA
sponsor sponsored University center here. And I do a lot of
research related to economic development. What can we do to help you? I
mean, we do a lot of research and a lot of applied research
here. How can we direct that research
in ways that could help the state?
>> KELLY SHULZ: Well, I will definitely give you my card
before you leave and go to the class or I'll track you down.
I think it's really important to get the perspectives and the
different types of research out there. Right now one of our big
incentives, our big Projects that we're doing obviously is
centered around the Federal opportunity zones and there has
not yet been a lot of research around them. What we are doing
in the State of Maryland is to do stackable state incentives on
top of the Federal incentive programs in those
specific Census tracks. So our stackable incentives, I
talked about earlier, the loan to grant programs, tax credit
programs, workforce development programs, specifically in those
areas, what does that look like and I think that's one area that
we would love to be able to say Maryland is right now leading
the effort in this. There's no other states that are
doing stackable incentives, no other states that are in the
four front of how much we have pushed these opportunity zones
out. So where does that get us in the end? At the end of the
game. >> One might be looking into
opportunities. >> KELLY SHULZ: We'll need to
meet him. >> Her.
>> KELLY SHULZ: Her. Even better.
>> Thank you. >> KELLY SHULZ: You're welcome. .
>> Thank you so much for being here. My question related to
start-ups and what you are doing to support them. So this is --
I don't know if it's consistent with your numbers but more than
one person told me that once they start going above a certain
threshold of funding, I don't remember if it
was 10 or $20 million, venture capitalists sort of pressure
them to move to the West Coast and move out of Maryland. And so these were both
successful start-ups in Maryland and Baltimore area.
Is that consistent with the department's numbers? And what are you doing to sort
of create enough of a sort of threshold of people here so that
people aren't pressured to leave the state when they become
successful? >> KELLY SHULZ: Well, part of
it is attracting those venture
capitalists and Angel funders who are out there to the East
Coast and letting them know that Maryland is the place where
Silicon Valley needs to come. We spent -- we always spend a
lot of time talking with our friends in Silicon Valley out in
the West Coast. And what we are hearing from them is that there
is more migration of those companies leaving the West Coast
and wanting to come to the East Coast.
Our job is to be able to get them to Maryland as their East
Coast headquarters or partner. And we've been successful a
couple of times very recently with that. But I think the investors in
general, they need to know that there's a -- there's a
substantial ecosystem in a place that's going to be able to
provide them support if the venture capital is not here. So Maryland has really been
working to build what we think is going to be a very strong resource-rich
ecosystem for those types of businesses to be here.
Part of that is working with all of our partners. And when we
talk about collaboration and collaboration is one of the key
parts, Ted Co. Which is a natural partner of the
Department of Commerce and deals more with those VC funded type
companies on the start-up side of it has been very instrumental
working with us, and over the last three months we're putting
together lots of plans in order to be able to increase that
structured support. But I think that what is
happening in the bay area out on the West
Coast is something that's about to head east. That's my general
perception. (Pause.) >> I have to ask the Amazon
question. So what are we doing as a state
to position ourselves to take advantage of any opportunities that might
come with H Q2? And. >> KELLY SHULZ: Well, we --
from the Governor on down, we're in constant communication with
those you know decision-makers, those site selection people at
Amazon to see if they are going to be able to -- if they want to
even change their course after what happened in New York.
We do know that they are still planning to move full steam
ahead in Crystal City, that's their plan right now.
But I think our perspective has been, you know, we have built a
great environment within our local partners. Many local partners, many
different regions across the State of Maryland have expressed interest in the
Amazon and have put their proposals in
for them. Maryland is here to help support our local economies
as well so we're not actually going to pick sides on
one of those local organizations or those local counties want to
do with that but we have to be able to provide the
infrastructure in order for that to happen.
However, the assumptions that we were working under with the original
H Q2 plan was -- it's obviously different now.
They did something it completely different than we had thought
that they were going to do. They split it up into two did it
sites and they didn't split it up into two different sites in
areas like we had thought that they were going to split it up
when they put out their descriptions of what they were
looking for. So I think everybody across the
country is saying: We're going to be prepared for anything that
Amazon wants to do. >> Yeah.
>> KELLY SHULZ: But nobody really knows what Amazon wants
to do. So we're trying to be flexible
and keeping our communications open.
>> REBECCA BELLINGER: Great question.
>> We've been very fortunate to have several large Amazon
distribution centers open up and we have a very good partnership;
I would say, with the company in general. And we've been very
good at being able to provide those locations around the state
where they have and will continue to be successful.
>> REBECCA BELLINGER: Great. Good. I think there was a
question here. Uh-huh. >> You mentioned that there are
more jobs than you can fill. And I'm wondering if you could
speak to what sorts of skillsets you'd like to see from our
students when they are going out into the workforce that could
make them really competitive for those jobs.
>> KELLY SHULZ: Well, the confidence part first, right, to
be able to have experience in a work environment is something
that we hear industry leaders talk about all the time. They
all it life skills or soft skills but I call it just
knowing how to be an employee skills. Right? Understanding
what it's like to go into a meeting, understanding what it's
like to go into an office environment if that's the type
of environment that you're going into. And I think you really
get that out of a series of experiences and in
your youth. There was interesting studies
that I had heard, I guess it's been a couple years now, the growing percentage of
individuals 26 years and younger, like over 30% that have never had a
job. For many reasons, right? I mean, we can all look.
>> (Inaudible). >> KELLY SHULZ: But you know
some parents, I mean, I was one of those parents when my oldest
son was in College. I didn't want him to work, I wanted him
to study. No. Don't be distracted but in hindsight you
really have to have some of those cross balances of
work-life experience in order to be successful. But obviously
now we're going into this digital workforce. And I think
no matter what a student is studying they have got to be
proficient or at least at the lowest levels in introductory
level of what that digital environment looks like moving
forward. And I think that the businesses
are looking for that. And the business roundtable
collectively, whether it was Lockheed Martin or, you know, a
banking institution, or hotel management institutions, all of
these great organizations kept coming together and saying
chrckt Tivoli no matter what industry you're going into we
need you to have this digital type of
experience. .
>> Hi. I am an exchange student. I'm from Italy but I'm studying
in Vienna and Austria and I'm
majoring international business so we talk a lot of
globalization, it's interesting to see it from another
perspective. And I think regarding terms of globalization
there's a lot going on and lately the US stepped out of a
few contracts, trade agreements, with several states. How far is
that influence? Is that affecting Maryland?
>> KELLY SHULZ: I would say that we're not seeing a huge
impact the on it right now in Maryland.
I think that we are diversifying enough in order to be able to
make sure that we're able to cover. We haven't seen a loss of
revenue -- revenues that is alarming.
We did see a loss of revenues a couple morning but that was
because the Federal Government shut down, thus, the need for
diversification. But I don't think that we have
seen yet that level of impact on the State of Maryland that some
of those additional trade agreements would have. Z and welcome, by the way.
(Pause.) >> I have a quick question. So
you talked a lot about the priorities of commerce. Coming into commerce in the past
few months what's the legacy that you want to leave behind? I
know Rebecca talked -- you had something about bigger, faster,
better, but in more detail I guess what would be the legacy
that you would hope to leave behind for commerce?
>> KELLY SHULZ: I think both of my two main priorities center
around collaboration, and the first is a Regionalism type of
approach. To be able to make sure what we
are doing within economic development, business development,
encompasses all of our State agency liaisons. So making sure that commerce in
general is being addressed. The -- in 2015, the commerce
subcabinet was created, and it was created in order for there
to be a collaboration amongst the Governor's cabinet level
colleagues, Department of Commerce, department of lane bore, department of
environment, Department of Transportation, department of
planning, going around the room, you know, so there's -- everyone
that's involved in kind of those initials.
So -- and we do. We said -- we have said for the last four
years and we talked about a lot of those major initiatives that
are happening around the state. The next step I think for that
and we've started this over the last couple weeks is bringing in
then each of those departments' liaisons within each of those
regions of the state to make sure that we have a formalized
process and individuals can be able to understand what -- what barriers there are
to businesses in general. And if we are bringing businesses
in, how are we going to collectively
be able to utilize our resources? And the disturbing part is, is
that many people don't know what type of resources the department
of environment has. People don't understand the resources
that Department of Commerce has. Sometimes the people in commerce
don't know the other units' resources.
So there's a large education that's going on at the state in
order to be able to satisfy a shared customer. So that's
Number 1. And then Number 2 is really
having an infrastructure for small businesses. And to make sure that all
Marylanders know that small businesses being you know roughly 85% of our hiring
employers, they need to be able to understand what type of
resources we have for them. It's not easy being a small
business. You don't have the resources.
And that's something that we talked about a little earlier, and with
the Dean as well, what can we do in order to be able to
ex-spanned even with our partnership here at Smith to
provide those resources to the small business? Again, utilizing liaisons in
small business professionals within each of our agencies
across the state, bringing them together because they would know
also how to be able to assist small businesses. We -- the Amazons are great, but
we can't rely on the Amazons. We are relying on those small
businesses that are home-grown here that, we're looking at
growing and expanding and they can't do that unless they know
that they have a good partnership with the state. And just making -- sometimes,
you know, saying it is saying it but plant the flag. Say
Maryland is open for business. Maryland is open for small
business. Right? We want to make sure that these small
businesses have what it takes in order to be able to be
successful. And then to create more jobs.
Because when you create more jobs you're helping somebody
out. And this is, I guess, if we're
going to have an end note, I don't know what time it is, I'm just going to assume,
Rebecca. It's very difficult at the
Department of Commerce coming from the Department of Labor.
In the Department of Labor you really focus on the human
element. It's all about humans and what they do and what their
potential is and what their growth factors are and being
able to provide those resources. We can do the same thing at
Department of Commerce. Right? We're learning growth potential,
how to be able to create and give resources to the business entity, but there's
a connection. The jobs that are being created
are being created for the human asset. For those individuals
that will have unlimited potential to be able
to create their own economic growth and
vitality and to have dignity and become those individuals in our
community that again will come back and recycle their talents
for the rest. So I think often times
Department of Commerce is seen as just the economic
development, business development out there in the
universe solely looking at trade agreements and what businesses
need as far as incentives and credits, when, in fact the sole
purpose of us doing that is for us to be able to satisfy the
members of our community. >> REBECCA BELLINGER: And we
will end on that. What a great sentiment. Thank you once again
so much for being here. Please join me in thanking
Secretary Shulz. (Applause.)
>> REBECCA BELLINGER: We do have one small parting gift for
you that I'm going to put you on the spot and ask you to open in
front of us. >> KELLY SHULZ: All right. All
right. How exciting. It's not even my birthday.
>> REBECCA BELLINGER: You can read the card later.
>> KELLY SHULZ: Oh my goodness, look at that. It's my very own t err a pin.
>> REBECCA BELLINGER: You are now an honorary one. So thank
you for being here. >> KELLY SHULZ: Of course.
It's been my pleasure. >> REBECCA BELLINGER: Thank
you. Were (meeting concluded.