Dayton and Israel have close business ties; war with Hamas could be disruptive

Local leaders say the combat with Hamas after the horrific terrorist attacks undoubtedly will affect Israel’s economy, but it’s unclear to what extent that could interfere with business development efforts, relationships and deals with the Dayton region.

“Any kind of war — look at the war between Ukraine and Russia ... that is going to be highly disruptive, because resources are shifting,” said Dayton City Manager Shelley Dickstein. “I don’t imagine that it long-term will have an impact on DRITA, but we just don’t know at this point.”

The Dayton region has many connections to Israel through cultural programs with the Jewish Federation, visits from Israeli officers and their families at Wright-Patterson Air Force Base and many business relationships, said Tawana Jones, director of community and economic development for Montgomery County.

Sinclair College has strong links to the Holon Institute of Technology, she said, and the Jewish Federation’s Partnership2Gether program helps foster connections between the Dayton region and Israel.

Holon, Israel’s 10th largest city, is one of Dayton’s sister cities. Dayton also is a sister city with Salfit, Palestine.

Sinclair College partnered with an Israeli company for simulation systems at its National UAS Training and Certification Center.

DRITA

Deep ties were formed between the local region and Israel when DRITA was created in 2010 by the city of Dayton, Montgomery County and the Dayton Development Coalition.

Before that, a local delegation visited Israel in 2008 and the following year representatives from the city, county and coalition signed an agreement with Israeli government officials for a long-term technology exchange and business development relationship.

The trade alliance, a private-public partnership, creates opportunities for businesses in both communities, which have a lot of similarities, such as a background and focus on aerospace and defense, Jones said.

The Dayton region is a gateway for Israeli companies to get established in the United States, Jones said, and foreign companies view the local manufacturing sector as an asset.

Asked about the war between Israel and Hamas, Jones said this definitely will have an impact on the trade alliance. She said this looks to be another tough period for a country that has a long history of challenges with conflict.

“The images we see in Israel are horrific on their own. It hits even harder when you know people who are there,” she said. “They aren’t anonymous. They are people we have worked with for years. They are our friends. Our thoughts stay focused on their safety.”

Safe from danger

The Dayton Region Israel Trade Alliance has a representative named Hadas Bar-Or, who is based in Tel Aviv and works to facilitate business connections and identify new opportunities.

Bar-Or and her family thankfully are safe, according to Jones. Bar-Or often has been described as a business “match-maker.”

Late last year, Bar-Or gave an update to the Dayton City Commission about the trade alliance. She said more than 1,000 business agreements and documents have been signed between companies in the Dayton area and Israel in recent years.

An economic assessment report found that the trade alliance helped generate $54 million in revenue for local firms between 2017 and 2021.

The report said business partnerships between the local region and Israel created nearly 100 local jobs.

The last trade alliance visit to Israel was in early 2020, and business development was the focus, said Jeff Hoagland, president and CEO of the Dayton Development Coalition.

Local leaders and representatives met with companies that have a presence in the region and others that are interested in doing business in Ohio, he said.

Hoagland said local representatives also learned about what Israeli companies can offer businesses in Ohio.

Mutually beneficially

Dayton City Manager Dickstein said Israel is a hotbed of innovation, but Israeli companies struggle with access to markets.

Dickstein said the country has labor force challenges and limited manufacturing capabilities, partly because of its size.

“They are number two in innovation development on a per capita basis, only second to the United States,” she said. “And they are a country the size of New Jersey.”

Israel has a population of about 9.4 million people. The state of Ohio, by comparison, has nearly 11.8 million residents.

Israel is an entrepreneurial powerhouse that is known for pioneering technologies, profitable business opportunities and high investment returns, according to DeLoitte.

The nation in recent years had a booming economy, with a thriving technology sector. Israel is the start-up capital of the world, on a per capita basis, DeLoitte said.

Dickstein said the trade alliance has focused heavily on aerospace, but other areas of shared business interests include advanced manufacturing, the medical field and water resource management and technology innovations.

Israeli businesses can expand their manufacturing capabilities through joint ventures, partnerships and licensing agreements with local companies, Dickstein said.

On a personal note, Dickstein said she has friends and family in Israel and the violence that has broken out is horrific and “unimaginable.”

A good example

Lion, a local company that makes products for firefighters and other first-responders, partnered with Israeli-based Rotem on an advanced fire and rescue training center in Israel.

Lion designed the new national training center near Tel Aviv and delivered the training props and control systems for the center through its Dutch business unit, said Steve Schwartz, CEO of Lion, which serves emergency services, industrial safety and military markets.

The training center was finished in late 2019, and Schwartz said Lion benefitted from DRITA because the company was introduced to several Israeli firms that were interested in finding an industry partner.

Schwartz said he is appalled by Hamas’ brutality.

“Hamas has sworn in its charter to destroy Israel,” he said. “Their complete disregard for the well being of Palestinian people they claim to represent is a travesty of ‘resistance’ politics.”

Rick Carne, who served as the chief of staff for former Dayton congressman and U.S. Ambassador Tony Hall, was involved with the trade alliance since its inception.

He said the Dayton region and Israel have very similar economies and technology bases and they share some of the same kinds of practices and principles.

Israel has an incredible technology base, but there’s not a market for it in the Middle East, Carne said.

Dayton provides the perfect access point to the U.S. market for many types of Israeli technology companies, he said.

“And we can take advantage of advances in those similar technologies that occur in Israel through their extensive research and development,” he said. “And then you can come up with a better product and a better service by these two regions working together.”

Carne said Israel has faced conflict to varying degrees in its 75 years of existence and the country’s people and culture are very resilient.

He said he thinks there will be some disruptions to business trade in the short-term, but he believes these could be minor and there hopefully won’t be lasting harm.