NMI has potential for regional sales/service

The CNMI has a huge potential to attract American companies that are eyeing the Asian market by establishing their regional sales, service and warehousing operations here, according to Richard Colfax, a business and marketing professor, University of Guam.

Such opportunity, he said, would be particularly attractive for firms that sell and service high-value technical items, such as large-scale computers, specialized medical equipment and certain types of manufacturing equipment. US-manufactured goods can be stored in warehouses in the CNMI while awaiting shipment to Asian markets.

Colfax warned that industries, with a few exceptions, take time to develop, thus they will not provide the immediate solution needed to mitigate the economic difficulties that the CNMI is facing.

When attracting new industries, Colfax said the CNMI must take sure that activities do not generate chemical by-products that will threaten the land or water resources of the island.

If the Northern Marianas is able to attract some high-tech industries such as electronics or pharmaceuticals, it can begin developing specialized high-end education. Since high-tech firms employ highly skilled educated personnel who could also serve as teachers in their respective fields, the CNMI could support the establishment of specialized curricula in those fields. Multinational firms can make use of the CNMI as a location for their Asian training programs.

Aviation training is another industry which has a potential as Guam is already taking advantage of this with its airframe mechanics school. Colfax said there may be even greater potential in becoming a training ground for overseas airline pilots.

“Pilots from Asian nations are faced with serious obstacles in gaining flight experience over open water, and airlines in Taiwan, Korea and China may be interested in establishing or utilizing a facility in Saipan or Tinian for this purpose if the infrastructure becomes available and the government assists in certification,” said Colfax.

While it is difficult to introduce new types of financial services, Colfax suggested the CNMI to specialize in trade financing whether between the Americas and Asia or among Asian trading firms because of the stability and controls of the US financial system.

Colfax also raised the possibility of instituting a captive insurance industry, but the CNMI must carefully analyze the insurance laws of Asian nations to determine what parameters would be most beneficial and attractive.

In the field of telecommunications, the Northern Marianas can be developed as a repository for Internet and other data services, capital intensive and creates high-paying jobs.