Regions Bank, while Alabama based, enables businesses to succeed in international trade. A particular team at Regions has been involved in global trade for more than 100 years through its predecessor banks: Global Trade Finance. That legacy was recognized earlier this year in a historic way in receiving the U.S. Department of Commerce’s “E” Award for Export Service – virtually a once-in-a-lifetime honor – for the second time.
Head of Global Trade Finance at Regions, Carson Strickland, spoke with Yellowhammer News about the bank’s work supporting companies in its backyard throughout Alabama — as well as the factors that might guide international trade for businesses worldwide in the coming years.
“Alabama has seen incredible success in providing made-in-Alabama products to the global marketplace. That is a testament to the strong business climate our state has created over the years. At Regions, our focus is simply to live out our bank’s mission—to make life better in the communities we serve,” Strickland said.
“Exports are an important component to a strong and vibrant local economy. They create jobs, help expand business reach and support long-term community growth.”
That impact on the visible economic success in Alabama flows the other way as well in assisting American companies expand their business internationally.
“The most common question I receive from clients who want to export is “where do I start?” With so many government programs and small-business assistance, it can be confusing and difficult to get started. Our team has been involved in export support for decades, so we can help clients get started,” Strickland said.
“Beyond that, for the specific resources that business leaders need, we offer a diverse suite of modern global trade finance options. One of the most important is our Treasury Management solutions that help improve cash flow and strategically manage liquidity, streamline payables and mitigate unnecessary risk exposure.
“From there, Regions has specific solutions that help clients with their export needs, like export financing, payment risk mitigation, foreign exchange and financial available to exporters’ international buyers. We work one-on-one with clients to provide the right solution to meet their needs.”
When asked about the biggest opportunities and challenges for global trade in the next few years, Strickland pointed to several factors on which he counsels his business clients.
“The geopolitical piece is the biggest influence on the international trade markets – and always has been. Geopolitical tensions continue to affect global trade in terms of costs, logistics and supply chain,” he said. “Our team is seeing more companies move out of China due to production risks and rising costs. They are shifting their supply chain to other parts of Asia, and it means finding new vendors, figuring out transportation, and other logistics, making the financial aspect challenging.”
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Strickland added that inflation continues to be a challenge as companies are borrowing for working capital and interest rates are impacting prices. “As interest rates eventually begin to come down and inflation risk decreases, we expect higher economic growth in international trade,” he said.
“On the opportunities side, companies here in Alabama and beyond are largely feeling more positive about the outlook for the remainder of 2024 and into 2025.”
While it’s important to pay attention to trade policy preferences, Strickland says, the number one most important thing for business clients to know is this: “Control the things you can control.”
As businesses continue to navigate the evolving landscape of international trade, one factor that remains crucial is the potential impact of political shifts. With the upcoming 2024 U.S. election on the horizon, many business leaders are closely monitoring how changes in administration and policy could influence global trade dynamics.
“If now is the right time to add exports to a business strategy, there are solutions to make it happen. If next year is the preferred desire for expansion into global markets, then have a conversation with your banker now so they are ready with solutions to help.”
