For Smaller Manufacturers, Export-Import Bank Aid for Exports

By January 14, 2011Small Business, Trade

Jay Timmons, executive vice president of the National Association of Manufacturers, joined Commerce Secretary Locke, U.S. Trade Representative Ron Kirk, SBA Administrator Karen Mills and Tom Donohue of the U.S. Chamber of Commerce on Thursday in support of a new Export-Import Bank program that will provide market and financial support for smaller manufacturers, the Global Access for Small Business initiative. From the news release:

WASHINGTON, Jan. 13, 2011 /PRNewswire-USNewswire/ — Today, the Export-Import Bank of the United States (Ex-Im Bank) announced its Global Access for Small Business (Global Access) initiative, which will help more than 5,000 small companies export goods and services produced by U.S. workers. As an integral part of President Obama’s National Export Initiative (NEI) mission to double U.S. exports by 2015, Global Access is being supported by a wide variety of business, financial and government partners.

“For our economy to grow, we need more American small businesses to become exporters,” stated Ex-Im Bank Chairman and President Fred P. Hochberg. “The demand exists for their products and services, but many companies are wary of international sales. Global Access provides financing tools to minimize the risk of exporting so more American small businesses can grow their companies and create new jobs.”…

The other leading private-sector partner for Global Access is the National Association of Manufacturers (NAM), the nation’s largest manufacturing association. NAM has been a stalwart champion of increased U.S. exports and has built a strong relationship with Ex-Im Bank. “Exports are critical to the ability of manufacturers in America to succeed in a competitive world marketplace, grow and create jobs,” said Jay Timmons, executive vice president and incoming president of NAM. “Manufacturers account for two-thirds of U.S. exports of goods and services. The Global Access initiative provides the type of trade finance called for in the NAM’s ‘Blueprint to Double Exports in Five Years.’ It will enable more small and medium-sized manufacturers to begin or expand foreign sales – and lead to more jobs here at home.”

We’ve put a transcript of our soon-to-be NAM President Timmons’ remarks in the extended entry. Here’s the news coverage:

Jay Timmons remarks below:

Jay Timmons
Export-Import Bank event
January 13, 201
Washington, DC

I’m Jay Timmons, at least for two more days the Executive Vice President of the National Association of Manufacturers.
Tom [Donohue], thank you so much for the venue today, and thank you so much, Secretary Locke…Ambassador Kirk, Administrator Mills, for your commitment to the success sof American manufacturing.
Chairman Hochberg, manufacturers greatly appreciate the work you’re doing at the Export-Import Bank and all the new and creative efforts that you undertake to promote exports.
And I want to commend you, in particular Mr. Chairman, for your quick work this week in matching China’s export financing for a prospective locomotive deal in Pakistan. That’s exactly the kind of strong leadership that we need.
Ambassador Kirk just said we can’t be afraid to compete internationally if we want to grow our domestic economy. And a stronger and more robust and expanding manufacturing sector is key to our ability to be able to compete.
The launching of the Global Access for Small Business initiative is a great example of the government-private sector cooperation necessary to achieve President Obama’s five-year goal of doubling exports. Manufacturers enthusiastically support the goals of the National Export Initiative. Because, after all, manufactured goods account for two-thirds of total U.S. exports of goods and services.
And for it to succeed, smaller manufacturers must be an integral part, an active part, of this effort.
Many people would be surprised to learn that for every 100 U.S.-based companies that export, 95 are small- and medium-sized enterprises. Despite their small size, these companies pack a mighty punch and a huge economic impact: They account for one-third of all exports of manufactured goods.
Manufacturing means jobs, and small companies can lead the way in hiring to help bring down unemployment. That’s why small business was the key focus of our recent NAM report, “The Blueprint to Double Manufacturing Exports in Five Years.” To reach that goal, smaller manufacturers will have to be exporting $640 billion by 2014.
These companies are going to need help in finding customers overseas through U.S. export promotion programs – an area that Secretary Locke, the Commerce Department and the manufacturers association have been very closely working on together. But there’s more work to do.
Many times, we’ll be talking to small manufacturers about trade opportunities, and they’ll say: “That’s a good idea, but we really don’t export. We just sell directly to Boeing or to Caterpillar.”
Well, these companies obviously make products that are in demand in the global marketplace, and becoming more and more in demand throughout the world.
I think of these kinds of companies as the prime target for the Global Access initiative – especially the “Supply Chain Financing” portion.
The Export-Import Bank has traditionally financed only companies that export directly. Now, with the initiative, it will also make financing available to manufacturers that supply parts and components to our exporting companies.
And our goal is for these suppliers to some day become direct exporters themselves.
We also applaud the Ex-Im Bank for looking for ways to streamline its procedures and reduce the turnaround time for insurance and other transactions.
I’m not sure if anybody knows this, but the bank makes money. And these sound business practices will enable it to make even more.
The entire Global Access initiative provides important tools, new approaches and targeted assistance that our manufacturers will definitely take advantage of. The Manufacturers are looking forward to helping make this initiative a success.

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