Why You Should Support the Ex-Im Bank
(A version of this blog post was originally printed in Supply Chain Management Review in March 2015)
Out of all the fantastic things I have done in my 25-year career, I think this event is in the top three or four best experiences.
This month, a group of 700 manufacturers from across America descended on Washington, D.C., for a “Fly In” day on Capitol Hill. The purpose of the day was to voice support for the reauthorization of the Export-Import (Ex-Im) Bank. I was invited to attend by the National Association of Manufacturers and spent two days talking with senior executives and legislators in support of reauthorization of the Bank.
The Ex-Im Bank supports manufacturers with low-cost loans to help finance export deals. About 75 percent of the money goes to large manufacturers such as Boeing and GE, however thousands of suppliers to these companies are also affected. About 6,000 small and medium-sized manufacturershave also received financing through the Ex-Im Bank which helps to keep American products competitive on the world market through low-cost loans. From 2007 to 2014, the Ex-Im Bank lending supported $25B dollars’ worth of export value for four manufacturing industries in California.
- Machinery Manufacturing and Sales
- Electrical Equipment Manufacturing and Sales
- Computer and Electronic Product Manufacturing and Sales
- Aerospace
Here’s why Fremont should care. During the same period, the Ex-Im Bank supported 17 Fremont manufacturers with loans, guaranteed credit, and insured shipments in the amount of $474M. The total value of the exports was $900M.
Clearly, the Ex-Im Bank is a significant resource for exporters. It has also returned nearly $7 billion in profits to the U.S. Treasury, while supporting jobs growth across America. It levels the playing field with more than 60 other countries that have their own export banks. This activity is directly supporting the reshoring of U.S. manufacturing.
The Ex-Im Bank comes up for a reauthorization vote in June and anyone involved with U.S. manufacturing should be watching closely.
About the Author
Ms. Coates is the Executive Director of the Reshoring Institute and the President of Blue Silk Consulting, a Global Supply Chain consulting firm. She is a best-selling author of: /em>42 Rules for Sourcing and Manufacturing in China and 42 Rules for Superior Field Service and The Reshoring Guidebook. Ms. Coates lives in Silicon Valley and has worked with over 80 clients worldwide. She is also an Expert Witness for legal cases involving global supply chain matters. She is passionate about Reshoring.