d. Export-Import Bank A Critical Tool For Small, Medium & Large Manufacturers in Albany, Schenectady & Troy To Ship Products Abroad & Create Jobs At Home -- Ex-Im Bank Supports Dozens of Businesses in Area

Press Release

Today, at the GE Plant in Schenectady, U.S. Senator Charles E. Schumer pushed to preserve the Export-Import (Ex-Im) Bank, which helps support thousands of jobs and over $1 billion in sales for companies in the Capital Region. Schumer explained that the Ex-Im Bank provides financing to foreign companies in order to help them purchase U.S. goods, such as those produced at General Electric in Schenectady, as well as at many small- and medium-sized businesses in the Capital Region. Unfortunately, however, the Ex-Im Bank is set to expire in two months if Congress does not act, and Schumer said that this would be disastrous for the dozens of companies in the Capital Region who rely on the bank to export their products. Schumer said that the Ex-Im Bank is a major driver of economic growth and manufacturing jobs, and it is important that Congress does not let it expire.

"The Ex-Im Bank is one of the key tools we have in our toolbox for supporting and growing manufacturing jobs in the Capital Region and across New York State, which is why letting the Bank expire is simply not an option," said Schumer. "Dozens of companies throughout the Capital Region -- small, medium and large -- directly or indirectly benefit from the Ex-Im Bank and employ thousands of people as a result. Extending the Ex-Im Bank's charter will reassure these businesses that the federal government is on their side and make it clear that we will do all we can to help level the playing field for doing business abroad so these companies can support manufacturing jobs back home."

Schumer explained that The Ex-Im Bank is an independent federal government agency that plays an important role in the U.S. economy by helping foreign customers buy American-made products and equipment from companies like GE and numerous small- to mid-sized businesses across New York State. In some cases, the Ex-Im Bank also helps provide financing directly to U.S. companies that enables them to export manufactured goods and services, all with the objective of contributing to U.S. employment.

Schumer explained that authorization for the Ex-Im Bank will expire on September 30th, and if Congress does not reauthorize the bank, it could affect companies all across New York and the Capital region. According to Ex-Im Bank data, there are 270 businesses in the state of New York that directly benefited from Ex-Im Bank between 2007 and 2014; 163 of those are small businesses. This total includes 15 companies in the Capital Region, 7 of which are small businesses; all of these businesses utilize this bank to more easily sell products to overseas customers. This is a steady increase from the 236 overall exporters in New York recorded just five years ago in 2009. The bank has supported $6 billion in New York exports over the last five years, including approximately $1 billion in the Capital Region during that same time period. In fact, Ex-Im Bank supports more exports in the Capital Region than anywhere in New York outside of the New York City area.

In total, the bank supports over 200,000 jobs each year at no cost to the U.S. taxpayer, which means 1.2 million American jobs in the past five years. In FY2013, the Ex-Im Bank supported $37.4 billion in American exports, and small business accounted for nearly 90 percent of the bank's transactions. Schumer also noted that what is not captured in all of these statistics is the myriad local suppliers and vendors that also benefit from the Ex-Im Bank. Even though they are not the direct beneficiary of financing, they indirectly benefit because it helps keep companies they supply to strong and growing.

Schumer said that not only does is the Ex-Im Bank help support a major job-creation, but it also helps put American businesses on a level playing field; U.S. exporters are often met by competition from foreign companies overseas that have a clear leg up because they are backed or wholly-owned by foreign governments. Through direct loan, loan guarantee, and insurance programs, Ex-Im Bank helps lessen risk for foreign buyers so that they may more easily purchase U.S. products, helping U.S. companies expand their businesses and sell their products all over the world.

If the Ex-Im Bank is not reauthorized, Schumer said, many of these companies would have to find alternative means of leveling the playing field and selling products overseas. Because many of these companies face competition overseas from countries that sponsor and heavily subsidize assist their foreign exporters, U.S. companies would be at a severe disadvantage. Many of these New York companies could face a severe decline in business, which could lead to layoffs and fewer employment opportunities, particularly in the field of manufacturing for residents. Countries like China, Japan and Germany all have much larger export credit agencies that receive government backing, and failure to reauthorize this U.S. institution is projected to shave 1% off of U.S. GDP growth per year for the first few years. A shutdown of the Ex-Im Bank could then lead to even greater GDP decline going forward, as companies here in the U.S. might be forced to relocate production overseas as an alternative to competing with foreign markets.

Schumer was joined by Vic Abate, President and CEO, Power Generation Products, GE Power & Water; as well as GE employees and suppliers. He was also joined by Mike Tucker, President of Center of Economic Growth; Chuck Steiner, President and CEO of Schenectady Chamber of Commerce; Pete Bardunias, President/CEO, The Chamber of Southern Saratoga County; and David Gibson, founder of X-Ray Optical Systems.

"Many people in the Capital Region have never even heard of the Ex-Im Bank, but it is vitally important to companies from General Electric to Ross Valve and even to Imperial Pools," said F. Michael Tucker, President and CEO of the Center for Economic Growth. "So many of the companies that we know and rely on to provide jobs here in the region depend on the Ex-Im Bank, so I truly appreciate Senator Schumer's efforts to re-authorize it, because failure to do so would put Capital Region businesses at a competitive disadvantage with companies across the globe."

Currently, Congress is debating the reauthorization of the Charter that allows the Ex-Im Bank to operate and continue to help American businesses. Extending this charter will renew Ex-Im Bank's authority. Legislation was enacted in the 112th Congress to extend Ex-Im Bank's authority through the close of business on September 30, 2014. With August recess just around the corner, Schumer is urging both his Democrat and Republican colleagues to not wait on this reauthorization, as any lapse would be a detriment to businesses in the Capital Region and the rest of New York.

Source