Schumer: Re-Authorizing Ex-Im Bank Means Job Growth for Allegany County

Press Release

Today, at Dresser Rand in Wellsville, U.S. Senator Charles E. Schumer launched his push to re-authorize the Export-Import (Ex-Im) Bank, which helps preserve jobs at Dresser Rand in Wellsville as well as thousands of other jobs at companies across the Southern Tier and Western New York. In total, Ex-Im Bank supports over $54 million in sales throughout the 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 Dresser Rand at their facilities throughout the Southern Tier, as well as those produced at many small- and medium-sized businesses in the 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 many companies in the Southern Tier and Western New York, including Dresser Rand, 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 in Allegany County, 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 Wellsville, Western New York, the Southern Tier and throughout New York State, which is why letting the Bank expire is simply not an option," said Schumer. "Companies of all sizes throughout the state 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 Dresser Rand 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. The Ex-Im Bank supports over $16 million in export sales at Dresser Rand's three facilities in Wellsville, Painted Post and Olean.

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, including Dresser Rand. 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 11 companies in the Southern Tier; 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 $54 million in Western New York and the Southern Tier during that same time period.

In total, the bank supports over 200,000 jobs each year at no cost to the U.S. taxpayer. 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 was joined by local elected officials, including Curt Crandall, Chair of the Allegany County Legislature; Mitch Alger, Allegany County Administrator; Peter Cook, Deputy Mayor of Wellsville; Gretchen Hanchett, Director of the Allegany County Chamber of Commerce; and other legislators and representatives from Allegany County. Schumer was also joined by representatives from Dresser Rand, including Mike Stahl, Director of Operations; Dale Smith, General Manager of the Government Business Unit; David Scarr, Human Resources Manager; and Dave Nye, Vice President of Technology and R&D.

"Over the years, Dresser-Rand along with our clients have benefited through access to U.S. EXIM programs," said Dale Smith, GM Dresser-Rand's Government Business Unit. "It has helped level the playing filed against overseas competitors, and provided a means to keep clients engaged and focused on Dresser-Rand product offerings. We thank Senator Schumer for his support and efforts to preserve this important program."

Schumer said that not only does the Ex-Im Bank help support local 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 and 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. Countries like China, Japan and Germany all have much larger export credit agencies that receive government backing, and failure to reauthorize the Ex-Im Bank is projected to shave 1 percent 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.

Currently, Congress is debating the reauthorization of the Charter that allows the Ex-Im Bank to operate and continue to help American businesses. Schumer has co-sponsored legislation that would re-authorize the bank for five additional years and is urging his Colleagues in the Senate to take up the bill and pass it. Extending this charter will renew the 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. 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 Southern Tier, Western New York and the rest of the state.

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