Schumer Launches Push to Preserve Export-Import Bank, One of Plattsburgh & Clinton County's Most Important Fed Job-Creation Programs

Press Release

Today, at Swarovski Lighting in Plattsburgh, U.S. Senator Charles E. Schumer launched his push to re-authorize the Export-Import (Ex-Im) Bank, which helps support tens of millions of dollars in exports at two major companies in Plattsburgh, Swarovski Lighting and Plattco Corporation, and hundreds of jobs throughout Clinton County and the North Country. 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 Swarovski and Plattco in Plattsburgh, which in turn helps these companies grow and continue purchasing goods and services from various local suppliers and vendors. Unfortunately, however, the Ex-Im Bank is set to expire this month if Congress does not act, and Schumer said that this would be disastrous for the Plattsburgh economy and for these two companies who rely on the bank to export their products. Schumer noted that the Ex-Im Bank is a major driver of economic growth and manufacturing jobs in Plattsburgh and Clinton 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 Plattsburgh, Clinton County 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, including Swarovski and Plattco, which are key pieces of the local Plattsburgh economy. 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 Swarovski and Plattco, as well as 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 $26 million in export sales between both Swarovski and Plattco in Plattsburgh and the North Country area.

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 Swarovski and Plattco. 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, which 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 $26 million in Plattsburgh 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.

Swarovski employs approximately 353 area residents and relies on the Ex-Im Bank to export its finished products -- decorative lighting fixtures, crystal chandeliers, wall scones, and table lamps. Swarovski does most of its exporting to Europe, but also has a growing market share in South America. Plattco employs approximately 72 people and primarily exports double flap airlock valves and slide gates. According to Plattco, exports are between a quarter and a third of its total sales each year, about 30 percent of which come from Canada. Schumer noted that Plattco has grown from 50 employees to 72 over the past ten years, thanks in large part to its success in exporting goods.

In addition, Schumer noted that what is not captured in these employment and export 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. For example, Swarovski relies on local companies like Fastenal, Adirondack Hardware, Hulbert Brothers, Alix's True Value, Buck Supply, J&S Steel, Jefford's Steel, Hynes Electric, Curtis Lumber, Motion Electric, Blanchard Industrial, to make its products and these companies and their employees also benefit from the Ex-Im Bank as a result.

Schumer was joined by senior executives from Swarovski and Plattco, as well as Garry Douglas, President of the North Country Chamber of Commerce; Susan Matton, V.P. of Economic Development for the North Country Chamber of Commerce; Paul Grasso, President and CEO of the Development Corporation of Clinton County; Bill Murray, Executive Director of CITEC; Lawrence McGinn, Plant Director of Camoplast; Stephen Podd and Victor Podd of Powertex; Gerry Hopkins and Fran Wynnik of Delagar; and Bob Wellington of AgriMark.

"The Export-Import Bank is a vital tool in support of U.S. exports, helping North Country companies like Swarovski and Plattco to secure foreign business and in turn support local employment and growth," said Garry Douglas, President of the North Country Chamber of Commerce. "The reauthorization of the bank is a priority if we are to succeed as an export-driven economy, as is the general support of Senator Schumer and our other Washington partners behind the many opportunities for expanded exports from the North Country. Export growth is a regional priority and we thank the Senator for visiting Swarovski and meeting with us to discuss how, together, we can achieve that growth."

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 across New York State, include Swarovski and Plattco in Plattsburgh, 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 Clinton County and the rest of the state.

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