Sponsor Forum for Small Businesses to Increase Foreign Sales and Move State Economy Forward
FOR IMMEDIATE RELEASE November 17, 2011
Adrian Gianforti: 202-565-3200
Novi, MI -- Today, Fred P. Hochberg, the chairman and president of the Export-Import Bank of the United States (Ex-Im Bank), and Governor Rick Snyder outlined to Michigan small business owners why it is critical to export at a Global Access forum in Novi. The event, which drew more than 100 local business representatives, was hosted by Ex-Im Bank and the Michigan Economic Development Corporation (MEDC).
During these tough economic times, exporting is a powerful way for businesses to increase their bottom line, said Chairman Hochberg. Michigan ranks eighth nationally for exporting, but we can - and must, do better. Ex-Im's goal is to encourage more American companies to sell more products to more customers around the world.
In Fiscal Year 2011, Ex-Im Bank authorized more than $147 million for Michigan businesses, 52% of the funding going to small businesses. However, nearly half of all Michigan's exports are only to Canada, and it is vital for these businesses to reach more markets. Michigan exports - both manufacturing and agricultural products - are expanding rapidly, bringing new business and job opportunities to Michiganders, Governor Rick Snyder said. The Export-Import Bank's commitment to increasing its deals here and spreading the word about new opportunities should help deliver the benefits of exporting to a growing number of Michigan companies.
Attendees heard from a panel of Michigan small businesses that have successfully boosted their exports. Companies featured were American Broach and Machine Co. in Ypsilanti, Acme Manufacturing in Auburn Hills, B&P Equipment and Systems in Saginaw, and Tooling and Equipment International (TEI) in Livonia. They also had the opportunity to engage in one-on-one consultations with representatives from the U.S. Small Business Administration and the U.S. Department of Commerce.
Highlighted Transaction (TEI - Livonia, MI):
TEI recently was approved for a $20 million single-buyer insurance policy by Ex-Im Bank's board of directors. TEI is a manufacturer of molds and core boxes used to produce castings. The financing is in support of a purchase from Nemak, S.A., a Mexican company based in Villa de García, Nuevo León. TEI has received financing from Ex-Im Bank for previous transactions between the two companies supporting 48 jobs since 2009 and increasing export sales to 80% of the company's overall sales.
We have had excellent support from the Ex-Im Bank from our first requirement to offer extended payment terms in 2009 through to the current renewal of our policy, stated Clifford Rothwell, the company's founder and CEO. Ex-Im's solid support enabled us to compete against our foreign competition and to weather the storm during the recession in 2009 - 2010 by enabling us to increase our level of exports. We look forward to working closely with Ex-Im over the coming years and to adding more jobs as a direct result of their financing.
TEI was in need of Ex-Im support financing to compete with foreign companies and be able to offer longer repayment terms to international buyers. The insurance policy enabled the company to offer terms up to 270 days to Nemak, eliminating concerns of European company competition. Currently, TEI employs 143 people. With the reapproved $20 million insurance policy, TEI expects to increase sales by 10%-15% and support an additional 2 jobs. The recent transaction was brokered by Johnstone Downey Klein, Inc./dba/International Risk Consultants of Columbus, Ohio.
MEDC is a public-private partnership serving as the state's marketing arm and lead agency for business, talent and jobs. It focuses on helping Michigan's economy.
About Export-Import Bank
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.
Ex-Im Bank approved $32.7 billion in total authorizations in FY 2011 -- an all-time Ex-Im record. This total includes more than $6 billion directly supporting small-business export sales -- also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $41 billion in U.S. export sales and approximately 290,000 American jobs in communities across the country. For more information, visit www.exim.gov.