The NAM released a new analysis assessing the impact of the U.S. Export-Import (Ex-Im) Bank’s lapse on manufacturers—and the consequences are dire for their competitiveness.
“This white paper shows the tangible impacts manufacturers are facing every day due to the Ex-Im Bank’s lapse,” NAM President and CEO Jay Timmons said upon the release of the white paper. “Our country’s export numbers continue to lag behind our foreign competitors. Meanwhile, dozens of foreign export credit agencies continue to close deals worth billions of dollars.”
The NAM held a media roundtable discussion moderated by NAM Vice President of International Economic Affairs Linda Dempsey and NAM Chief Economist Chad Moutray. BTE Technologies President Charles Wetherington, International Green Structures COO Bill Britt and Orbital ATK Space Systems Group President Frank Culbertson participated in the call.
The expiration of the Ex-Im Bank’s charter on June 30 has left several thousand manufacturers, many of them small and medium-sized exporters, without adequate access to capital and the financing they need to compete with foreign manufacturers. Orbital ATK lost a satellite deal because it could not offer Ex-Im financing to its customer overseas, for example, and International Green Structures has a deal in a holding pattern until the Ex-Im Bank’s charter is renewed.
There are 83 official export credit agencies across the globe, many of which continue to close on deals worth tens of billions of dollars, according to the white paper. The Ex-Im Bank’s lapse has created a credit and liquidity crunch for small and medium-sized businesses. The NAM white paper estimates that more than 500 U.S. exporters will lose their credit insurance policies betweenSeptember 1 and December 1 this year, meaning that they will be unable to insure their foreign receivables and acquire financing for new exporters. In addition, users of Ex-Im’s multi-buyer credit insurance cannot add new foreign customers to their policies, thereby reducing their opportunities to expand in overseas markets.
Next week, the House of Representatives will likely vote on a long-term reauthorization of the Ex-Im Bank. The NAM sent a Key Vote letter yesterday urging support for the reauthorization. Congressional supporters of Ex-Im’s reauthorization recently circulated a discharge petition and gathered the required 218 signatures to give this critical legislation a vote on the House floor. Urge members of Congress to vote in favor of Ex-Im Bank reauthorization next week by taking action through the NAM’s advocacy portal.
For more information about the importance of the Ex-Im Bank to U.S. manufacturing growth and jobs, visit the NAM’s Ex-Im webpage.
Associated Industries of Missouri is the sole official designated partner of the National Association of Manufacturers in Missouri.