EXIM's Working Capital Loan Guarantee Enabled Ohio Small Business to Export $52 Million in Past Five Years
Media Contact: Office of Communications (202-565-3203)
For Immediate Release: September 11, 2020
WASHINGTON - Consolidated Metal Products, Inc., (CMP) a small business in Cincinnati, Ohio, that manufactures suspension parts for trucks and trailers, has been named an Exporter of the Year by the Export-Import Bank of the United States (EXIM). The company, which has used a working capital loan guarantee since 2006, will be honored during EXIM's 2020 Annual Conference, the largest conference in the agency's history, which is being held virtually September 9-11.
Founded in 1945 in Cincinnati, Ohio, CMP is a family-owned business owned by Hugh M. Gallagher, Jr., who pioneered CMP's unique, patented process for manufacturing u-bolts and other suspension parts for use in light-, medium-, and heavy-duty trucks and trailers. With approximately 150 employees, the company maintains sales representatives in North America, Europe, South America, and Southeast Asia.
"I am honored to recognize Consolidated Metal Products on behalf of EXIM for its outstanding contributions to fulfilling our agency's mission of supporting American jobs by facilitating U.S. exports," said EXIM President and Chairman Kimberly A. Reed. "The winners of EXIM's Exporter of the Year award come from every region of our country and many different industries, but all represent American ingenuity and success. Approximately 90 percent of EXIM's authorizations directly support small businesses like the exporters being awarded today, and at EXIM we are proud to help in the success of these small businesses as they compete in the global marketplace and support American jobs."
Since 2006, CMP has maintained a $2.4 million EXIM guaranteed line of credit, specifically to support its export business, from The Huntington National Bank, a regional lender headquartered in Columbus, Ohio. The working capital loan guarantee has enabled the company to increase revenue from international markets by allowing accounts receivables to be used as collateral. That has made it possible for the small business to expand its borrowing base and borrow more with the same collateral, which has allowed it to offer its customers open account terms and warehouse inventory outside the United States. CMP exports to assembly plants in 16 countries, with international sales generating approximately 25 percent of annual revenues. Since 2015, EXIM has supported exports valued at approximately $52 million.
"EXIM has enhanced CMP's ability to compete for business around the world due to the seamless financing of our working capital requirements with non-U.S. customers," said John R. Bernloehr, CMP's President.
Since 2014, EXIM has supported exports valued at $5 billion from 209 companies - including 149 small businesses like Consolidated Metal Products - across Ohio.
U.S. companies, particularly small businesses, can utilize EXIM's financing tools and resources to increase their international sales, showcase their "Made in the USA" products, and sustain American jobs. By partnering with EXIM, exporters can mitigate the risk of nonpayment on international sales, offer credit terms to foreign buyers, and access working capital loan guarantees. In addition, EXIM has implemented several COVID-19 (coronavirus) relief measures for U.S. exporters and financial institutions to enhance the agency's existing programs.
EXIM is an independent federal agency that promotes and supports American jobs by providing competitive and necessary export credit to support sales of U.S. goods and services to international buyers. A robust EXIM can level the global playing field for U.S. exporters when they compete against foreign companies that receive support from their governments. EXIM also contributes to U.S. economic growth by helping to create and sustain hundreds of thousands of jobs in exporting businesses and their supply chains across the United States. In recent years, approximately 90 percent of the total number of the agency's authorizations has directly supported small businesses. Since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of U.S. debt.
For more information about EXIM, please visit www.exim.gov.