Blockwise Engineering is a small privately held family business in Tempe, Arizona. It designs, builds and sells manufacturing equipment to customers worldwide. Its customers then use the equipment to manufacture medical devices such as angioplasty balloons and stents. All of Blockwise’s machines are made at their plant in Arizona. Customers range from small start-up companies to huge corporations.
Medical device manufacturing companies are located globally, not just in the United States. Therefore, about half of Blockwise revenue comes from the sale of machines to customers on all continents. Most its sales are to companies in China, Japan and Europe because many medical device manufacturers are located in those countries.
A Blockwise machine can cost $50,000 to $100,000 each, which is a costly piece of equipment. Thus, it prefers to have its customers pay for the machines before delivery, but in the global market, that’s not always customary. If Blockwise required all customers to pay before delivery, it could potentially decrease sales to its competitors that accepted open account terms.
The company turned to EXIM’s trade credit insurance as it covers 95% of its sales invoice if its customer does not pay. With an EXIM export credit insurance policy, Blockwise allows foreign customers to pay on open account credit terms, typically 30 to 90 days after delivery. This nonpayment protection enables the company to enter new markets as well as sell more to current customers.
Blockwise equipment is profitably making medical devices at over 400 companies worldwide. EXIM has supported more than $7 million of the company's export sales since 2014.