Export-Import Bank Archives - Page 2 of 5 - Shopfloor

Ex-Im Bank Generates $1 Billion in Profits

By | Economy | No Comments

Earlier this week, the U.S. Ex-Im Bank announced that it was transferring more than $1 billion to the U.S. Treasury’s General Fund for FY2013. The Bank transferred the revenue – primarily generated from the fees from its customers for loan guarantees, export credit insurance and other services – after covering its own operating costs and contributing to loan loss reserves. In 2012, Ex-Im Bank’s authorizations supported about $50 billion in U.S. export sales and approximately 255,000 American jobs. The Bank has been consistently profitable since 1992, returning billions of dollars in profits to taxpayers over the years and contributing to federal deficit reduction.

The ability of U.S. companies to export has always been a critical issue for the NAM, and exports are increasingly important to the U.S. economy and to the success of domestic manufacturing. Ex-Im Bank as one of the most important tools the U.S. government has to help grow U.S. exports and jobs, and the only tool that American manufacturers have to counter the approximately $1 trillion in export financing that other governments provide their exporters.

Ex-Im Report Grades Competitiveness, Identifies Challenges for U.S. Exporters

By | Economy | No Comments

Earlier today, Ex-Im Bank Chairman Fred Hochberg outlined the unprecedented challenges facing U.S. exporters and released the annual competitiveness report that stacks Ex-Im Bank up against other major export credit agencies (ECAs) around the world.

Chairman Hochberg said, in his remarks, “American products are the best in the world.  And on a level playing field, they often come out on top. But today more than ever, foreign governments are willing to do whatever it takes to close a sale – putting massive resources behind their chosen exporters, which are often state-owned enterprises.”  U.S. exporters often face head-to-head competition with competitors backed by foreign governments that offer attractive financing terms, sometimes tipping the scale for their own domestic manufacturers.

Chairman Hochberg also identified opportunities for U.S. exporters in diverse areas, from nuclear power to broader infrastructure demands, citing huge projected growth in the global middle class over the next two decades. This growth, he said, will create “massive new markets, new opportunities and, most important, a lot of jobs.” That middle class will likely demand unprecedented amounts of infrastructure – from power and water projects to airports.

While opportunities are growing overseas, exporters from the United States continue to face challenges. The Ex-Im Bank’s 2012 Competitiveness Report found that commercial bank capacity has declined since the global financial crisis, making ECAs an increasingly important tool.  Many Asian countries have ambitious export plans to gain market share, and the report finds China, Korea, Japan and others are ramping up government export support.

The members of the Bank’s 2013 Advisory Committee, including former NAM Chairman and Vermeer CEO Mary Andringa, commended the Bank for its continued success in filling commercial financing gaps in support of U.S. exports. The Advisory Committee also noted that certain public policy issues – unique domestic content requirements, extensive economic impact studies and MARAD shipping requirements – continue to be a concern.  The NAM has urged the Bank to address these policy issues, and is looking closely at both existing and newer U.S. policies that constrain the ability of manufacturers in the United States from utilizing Ex-Im financing to level the playing field internationally.

As the official export credit agency of the United States, Ex-Im Bank helps to fill the gaps in private export financing. In the past five years, Ex-Im was able to pay its own costs and return nearly $1.6 billion to the U.S. Treasury. In FY 2012, Ex-Im Bank approved nearly $35.8 billion in total authorizations that supported more than $50 billion in U.S. export sales and about 255,000 American jobs. The Bank provided more than than $6 billion directly in support of small-business export sales, setting an Ex-Im record. The NAM led a coalition effort in 2012 to reauthorize Ex-Im Bank through September 2014, and we will continue to make it a priority to support a strong Ex-Im Bank that will help ensure that manufacturers have access to competitive export financing that will help create and sustain U.S. jobs.

Senate Confirms Ex-Im Bank Chairman, Ensures Continued Support for Exports

By | Economy, Small Business | No Comments

Today, more than 80 U.S. Senators joined together to confirm Fred Hochberg for a second term as President of the Export-Import Bank. This bipartisan expression of support comes as no surprise as the Bank, under Mr. Hochberg’s leadership, has been a champion of job creation during a period of economic turmoil.

The Ex-Im Bank’s focus on supporting exports has allowed manufacturers in the United States to reach new markets and continue to do what they do best – create jobs, grow the economy, and increase our global competitiveness.  Last year alone, the Bank authorized more than $35 billion in financing for U.S. exports, which supported more than 255,000 American jobs and 3,400 U.S. companies, 85% of which were small businesses.

While President Hochberg’s confirmation ensures job creators will continue to have a steady ally at the Ex-Im Bank, the vote more importantly ensures the Bank’s Board of Directors will have the necessary quorum to approve transactions and operate effectively.

The NAM commends the Senate on this important vote and looks forward to working with Ex-Im Bank as it continues working to keep U.S. manufacturers competitive in global markets.

Do the Right Thing – Confirm Hochberg

By | Trade | No Comments

The Senate will have an opportunity next week to the right thing by confirming Fred Hochberg for a second term as the Export Import Bank’s president. This isn’t a small ball vote – it’s a vote for the more than 255,000 jobs in the United States that depend on financing from the Ex-Im Bank and for the $6 billion in small business support that the Ex-Im Bank was responsible for last year alone.

This vote is especially important to manufacturers because Mr. Hochberg has been a champion for the manufacturing community and recognizes the importance of role we play in the economy. In March, Mr. Hochberg told the NAM’s Member Focus magazine that “creating and supporting jobs through exports is our mission and our passion”. Because the Ex-Im Bank needs to maintain a quorum for its Board of Directors, waiting to confirm Mr. Hochberg is a dangerous game that would mean a backup in Ex-Im Bank approvals – putting jobs at risk.

Manufacturers want to reach new markets, grow jobs and increase our global competitiveness – and they want the Senate to confirm Mr. Hochberg.

President Obama Signs Ex-Im Reauthorization into Law

By | Trade | No Comments

Today President Obama signed the Export-Import Bank reauthorization legislation into law during a ceremony at the White House. This marks the end of a long road with a great amount of uncertainty over the Bank’s reauthorization.

The legislation signed by the President today reauthorizes the Bank for three years and increases its lending cap to $140 billion. Small and medium-sized manufacturers will greatly benefit, helping them reach new markets with their exports and create jobs. Last year alone the Bank supported nearly 290,000 jobs and we know that will continue to grow.

Majority Leader Cantor and Minority Whip Hoyer deserve credit for coming to a bipartisan agreement that was able to swiftly pass the House and Senate.

As our competitors overseas continue to increase export financing it was absolutely vital that we reauthorize Ex-Im or risk falling behind, costing us jobs and damaging our competitiveness.

Manufacturers are leading our nation in innovation and job creation but we also need help from Washington to help level the playing field. With 95 percent of the world’s consumers living outside our borders we need to do more to increase exports, resulting in more jobs here at home for manufacturing workers.

Lauren Airey is director of trade facilitation policy, National Association of Manufacturers.

Senate Expected to Vote on Ex-Im Bank Today

By | Trade | No Comments

Today the Senate is expected to consider H.R. 2072 to reauthorize the Ex-Im Bank along with several amendments. The NAM has sent a Key Vote letter to senators urging support for the Bank which is so critical to small and medium-sized manufacturers.

Below is an excerpt from the Key Vote letter:

The Ex-Im Bank levels the playing field for U.S. exporters by matching credit support other nations provide, ensuring that our nation’s manufacturers can compete based upon the price and performance features of their products. It also enables small and medium-sized manufacturers to capture new markets in emerging economies abroad. In FY2011, the Bank supported more than $41 billion in export sales from more than 3,600 companies, supporting approximately 290,000 export-related American jobs.

Manufacturers are urging all senators to support H.R. 2072 to reauthorize the Ex-Im Bank and to increase its lending authority.



House to Vote on Ex-Im Bank Reauthorization this Week

By | Trade | No Comments

This week the House is expected to vote on the reauthorization of the Export-Import Bank. Late last week Majority Leader Cantor and Minority Whip Hoyer came to an agreement on a deal that will extend the Bank’s lending limit to $140 billion through 2014.

This is great news for manufactures and we are urging all members of the House to support this commone sense reauthorization that will support jobs and exports. Today, NAM Senior Vice President for Policy and Government Relations sent a Key Vote letter to members of the House urging support.

From the letter:

The Ex-Im Bank levels the playing field for U.S. exporters by matching credit support other nations provide, ensuring that our nation’s manufacturers can compete based upon the price and performance features of their products. It also enables small and medium-sized manufacturers to capture new markets in emerging economies abroad. In FY2011, the Bank supported more than $41 billion in export sales from more than 3,600 companies, supporting approximately 290,000 export-related American jobs.

Denying Ex-Im reauthorization will hurt manufacturers of every size and threaten thousands of U.S. manufacturing jobs. Small and medium-sized companies are particularly vulnerable – both those that receive direct Ex-Im Bank support as well as those that supply larger companies.

On Ex-Im Bank the Facts are Clear

By | Trade | No Comments

Yesterday a post on National Review’s The Corner blog contains some clear inaccuracies regarding the Export-Import Bank and what it means to manufacturers, both large and small.

This post would have you believe that the Bank only helps large companies when in fact the Bank is doing more and more every year for small manufacturers. In fact, more than 85 percent of the Bank’s transactions in 2011 were in direct support of small businesses. Thousands of small and medium-sized manufacturer rely heavily on the Ex-Im Bank to be able to compete globally. Without the Bank many of these companies will lose out on deals to overseas competitors, costing jobs here at home.

The Corner post also misses a key fact that Ex-Im Bank actually makes money for the taxpayers. It’s difficult to make the argument that Ex-Im is a costly program when over the past five years the Bank has returned more than $3.4 billion to the Treasury. The numbers show the facts loud and clear. And if the Bank isn’t reauthorized it would actually increase the deficit, and an offset would be needed to fill the void left from the money Ex-Im returns to Treasury. 

The bottom line is our competitors overseas are outpacing us when it comes to export financing. Our competitiveness, jobs and ability to grow exports will be hurt if the Bank is not reauthorized. The Bank is essential to the engine that drives our economy, small businesses. Just click here to read first-hand testimonials about what the Bank means to these businesses.

Senate to Vote on Export-Import Bank Reauthorization

By | Trade | No Comments

Shortly the Senate will vote on an amendment to reauthorize the Export-Import Bank which is critical to the goal of doubling exports and jobs. The Bank assists thousands of small and medium-sized manufacturers reach new markets and sell their products around the globe that might otherwise not be possible.

If Congress fails to act and reauthorize the Bank we will be left in the dust by our competitors who are providing hundreds of billions more in export financing. Just in 2010 alone the export credit agencies in Brazil and China provided 10 times more financing to their exporters, as a share of GDP. Washington needs to act to put manufacturers in the United States on a level playing field.

We hope that senators will vote for exports and jobs today and approve the reauthorization of the Ex-Im Bank.

Export-Import Bank Means Jobs for Small Businesses

By | Trade | One Comment

Tomorrow the Senate is expected to vote on an amendment which will reauthorize the Export-Import Bank. Last week the NAM issued a Key Vote letter on the amendment.

The facts are crystal clear that the Ex-Im Bank supports jobs and helps small and medium-sized manufacturers in the U.S. grow exports. More than 85 percent of the Ex-Im Bank’s transactions directly support small business.

The Washington Post’s Olga Khazan reports on what the Bank means to Patton Electronics based in Gaithersburg, MD:

Bobby Patton is the embodiment of the idea that increasing exports can help grow jobs. His Gaithersburg telecom company, Patton Electronics, first began selling routers and other devices to overseas customers during the 1990s. As exports began to comprise a greater percentage of his revenue, his bank began to take notice.

“Our local bank didn’t want to lend against those international receivables the way they lend against domestic receivables,” he said.

The threat of Congress failing to reauthorize the Bank has caused Mr. Patton to put on hold expansion plans:

Meanwhile, Patton said, his local bank has already put the brakes on his plan to expand to a new manufacturing facility.

“We have a contract to acquire a new building and move into a new manufacturing facility, and the bank is saying they don’t want to add more debt if Ex-Im is going to be changing what they’re doing on international borrowing,” he said. “They don’t want to add more risk.”

Also, CBS Evening News ran a segment this past weekend featuring small manufacturers Air Tractor based in Olney, Texas. Air Tractor uses the Ex-Im Bank to help export their products all over the world and if the Bank is failed to be reauthorized it could negatively impact their business.

Manufacturers urge senators to stand up for jobs and exports tomorrow and vote for the reauthorization of the Ex-Im Bank.