Chairman's Quarterly Newsletter - Volume 8 - April 2012

Chairman's Update, Export-Import Bank of the U. S. and photo of Fred P Hochberg
Volume 8
April 2012
 

IN THIS ISSUE

Message from the Chairman

Key Media Coverage on Reauthorization

Ex-Im Bank 2nd Quarter Highlights

On the Road Supporting Small Business

Ex-Im Bank Adds New Staff in Four U.S. Cities

Small Business Outreach Pushes Forward at Global Access for Small Business Forums

Transaction Highlights

One of Nine: Spotlight on Vietnam

Upcoming Travel

Export-Import Bank Annual Conference Highlights U.S. Export Growth, Need for Financing

Ex-Im Bank Annual Conference Award Recipients

 

 Message from the Chairman

Friends,

Fred P HochbergAs you know, the Ex-Im Bank charter expires on May 31st, and we are close to our exposure limit of $100 billion. Our efforts to achieve the President’s request for a four-year reauthorization with a $140 billion lending cap have been steady over these past few months.  But an effort in March to pass such a measure in the Senate fell short on procedural grounds.

Ex-Im Bank increases U.S. jobs, pays for itself and earns money for the U.S. Treasury -- $1.9 billion over the past five years. That is why we continue to enjoy strong, broad support. Members on both sides of the aisle, along with the U.S. Chamber of Commerce, the Small Business Exporters Association, National Association of Manufacturers, Machinists and Aerospace Workers Unions, and others have been advocating for our reauthorization.

The world wants to buy what America makes, and this is no time to back away from export financing of United States equipment and services. In particular, our Nation’s small business owners are operating in a brutally competitive marketplace, and we need to be there so our companies and workers can conduct business on a level playing field. Ex-Im FY’11 financing supported 290,000 jobs, more than 1,000 jobs per working day.

Government-backed credit from other nations to help their companies export is growing, especially in emerging markets. Therefore, Ex-Im Bank plays a key role when foreign buyers are in need of high-quality products or services. We increase the opportunities for U.S. businesses to win the deals.

The next few weeks are critical. We are continuing to work with the House and Senate for support for our reauthorization, and we urge them to act promptly before serious damage is done to American competitiveness.

At our recent 37th annual conference, Ex-Im’s reauthorization received tremendous support.  This newsletter includes highlights from the very successful two-day event.  

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Key Media Coverage on Reauthorization

Over the past few months, Ex-Im Bank has been receiving a lot of coverage on the reauthorization of our charter. Below are a few examples.

Andrea Mitchell Reports on MSNBC – “Bank Battle”
Chairman Hochberg interviewed with Andrea Mitchell of MSNBC to discuss the benefits of reauthorizing Ex-Im Bank’s charter to support U.S. jobs and competitiveness in the global marketplace.  


 andrea mitchel and fred hochberg

Chairman Hochberg with Andrea Mitchell on MSNBC


Wall Street Journal
– “The Ex-Im Bank Keeps Americans in Business”

Robert Rubin and Vin Weber of Wall Street Journal argue for bipartisan support for Ex-Im Bank since the Bank increases U.S. jobs and earns money for the Treasury.


Washington Post – “Export-Import Bank’s aid isn’t ‘corporate welfare’”
Chairman Hochberg responds to George F. Will’s March 18 column, “High-flying corporate welfare.”


Bloomberg Television – “Hochberg on Benefits of U.S. Export-Import Bank”
Peter Cook of Bloomberg Television’s Bottom Line interviews Chairman Hochberg on the Bank’s outlook for reauthorization and how Ex-Im Bank supports American jobs, operates at no cost to the American tax-payer, and generates a profit. 

bloomberg interview

Peter Cook with Chairman Hochberg on Bloomberg Television


Bloomberg View Editorial – “Export-Import Bank Is U.S. Engine That Can Do More”
Bloomberg’s View explains how U.S. exports have been a rare bright spot in an otherwise sluggish economy. Ex-Im Bank’s sole purpose is to help strengthen the economy and create jobs by supporting the nation’s exporters.


The Hill - “Ex-Im Bank Punches Back at Critics as Fight to Renew Charter Drags On”
Kevin Bogardus of The Hill discusses Chairman Hochberg’s effort for a long-term renewal of Ex-Im Bank’s charter.
 
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Ex-Im Bank 2nd Quarter Highlights

2 q graph

During the first half of fiscal year 2012, Ex-Im Bank approved $10.7 billion in authorizations. This financing is supporting approximately 96,000 American jobs. Although total authorizations decreased by 18% when compared to the first half of fiscal year 2011 ($13.1 billion in FY’11 and $10.7 billion in FY’12), small business transactions went up. Ex-Im authorizations during this period included $2.1 billion for small business, which was, as a percentage of total authorizations, an increase over last year’s performance, bringing this portfolio slightly below 20% of overall activity. Additionally, we added 273 new small companies to our ranks in the first half of fiscal year 2012. Working capital loan guarantees, which primarily support small business, were the highest volume of transactions in the second quarter.

Pending our reauthorization, long-term transactions in our pipeline put Ex-Im on track for another record-setting year. In addition, small business authorizations are expected to exceed the historic high of $6 billion achieved in fiscal year 2011.

Our pipeline contains a large number of Structured/Project Finance transactions, which have longer lead times. These are primarily located in Australia, the Middle East, and North Africa with concentrations in the manufacturing and power industries.

Ex-Im transactions contributed to the increase in overall U.S. goods and services exported in February, valued at $181.2 billion. The Commerce Department reported that over the last twelve months, the U.S. exports totaled $2.134 trillion, which is the largest amount the U.S. has ever exported in one year. In support of the National Export Initiative, we are still on track to doubling exports by 2015. 

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On the Road Supporting Small Business

President Obama Announces New Small Business Products at The Boeing Company
obama with dreamliner

President Obama with Dreamliner

In February, Chairman Hochberg accompanied President Obama to Boeing’s manufacturing facility in Everett, Washington, to announce Boeing’s participation in the Bank’s Supply-Chain Finance Guarantee program. The program provides competitively priced working capital financing to suppliers of goods and services to U.S. exporters.
 

At the event, President Obama stated, “I will go anywhere in the world to open up new markets for American products. And by the way, I will not stand by when our competitors don’t play by the rules. That’s why I directed my administration to create a Trade Enforcement Unit that just has one job: investigating unfair trade practices in countries like China, or places like Europe.”


He went on to say, “That’s why it’s so important for Congress to reauthorize the Export-Import Bank…The [Bank] helps companies like this one sell its products. It also helps thousands of small businesses.”


Chairman Hochberg also outlined the details of Global Credit Express for small business, giving small business exporters greater access to revolving credit.


"Global Credit Express is an innovative product that will help small business exporters obtain the financing they need to improve their bottom line and succeed in a highly competitive global economy," said Chairman Hochberg. "This new product will provide additional liquidity for eligible American exporters and access to financing at a reasonable cost."


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Ex-Im Bank Adds New Staff in
Four U.S. Cities

Speaking to the Detroit Economic Club in March, Chairman detroit economic clubHochberg announced that Ex-Im Bank will have a new presence in Atlanta, Detroit, Minneapolis, and Seattle. This will provide local small business exporters with enhanced access to Ex-Im Bank products and services.

Fred P. Hochberg at the Detroit Economic
Club (Ex-Im Bank photo)

"More Michigan exports mean more Michigan jobs," said U.S. Senator Debbie Stabenow, a member of the President's Export Council under both Presidents Bush and Obama. "Helping Michigan small businesses reach new markets is absolutely one of the best ways to strengthen our economy. There is still a lot of work to be done, but with our auto industry coming back, Detroit welcoming the country's first-ever satellite patent office and now this new export center, good news is happening in Michigan." 

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Small Business Outreach Pushes Forward at Global Access for Small Business Forums

slaughter
 

Chairman Hochberg in Rochester, NY with Congresswoman Louise Slaughter (Ex-Im Bank photo)

In the second quarter, Ex-Im Bank hosted four Global Access forums. They were held in Tampa, Florida with Sen. Bill Nelson; Little Rock, Arkansas with Rep. Rick Crawford; Greensboro, North Carolina with Sen. Kay Hagan; and Rochester, New York with Rep. Louise Slaughter. More than a hundred small business owners attended each of the events to learn how to improve their bottom line by increasing export opportunities.

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Transaction Highlights

Iron Ore Company of Canada

iron ore oc canada locomotive

Iron Ore Company of Canada bought six SD 70 Ace locomotives from Electro-Motive Diesel, Inc. of LaGrange, Illinois (Photo courtesy of Electro-Motive Diesel, Inc.)


Ex-Im Bank’s board of directors approved an $83.1 million loan guarantee to support the sale of six American-made  railroad cars, locomotive parts, and mining equipment to the Iron Ore Company of Canada (IOC). According to IOC executives, this transaction supported 500 U.S. jobs across a range of American businesses in six states (Arkansas, Illinois, Missouri, Tennessee, Virginia and Wisconsin).  

Xamax Industries - 200th Express Insurance Policy

xamax

Xamax Industries is a manufacturer of raw materials including rolled goods such as paper, plastic, and nonwoven fabrics (Photo courtesy of Xamax Industries)

 
Xamax Industries was the 200th small business to be approved for an Ex-Im Bank Express Insurance policy. After attending a Global Access for Small Business forum hosted by Rep. Rosa DeLauro in New Haven, Conn., Martin Weinberg, president of the company, was convinced. He learned that with this new Ex-Im Bank insurance product, his company could increase foreign sales overseas without elevating the risk. The company manufactures rolled paper and plastic as well as nonwoven fabric goods for beauty and skin care, dental, lens cleaning, and personal hygiene products. According to Weinberg, Xamax will expand its workforce as business grows overseas.

Auburn Leather Company 
Auburn Leather Company is a manufacturer of leather laces for footwear and sporting equipment. Since its first year when it had 12 employees and $900,000 in sales, the company has grown to over 110 employees and does over $11 million in sales annually. The company  recently  experienced an increase auburn leatherin foreign demand for their laces leading to an upswing in sales. This sales increase is in part due to the small business insurance policy the company received from Ex-Im Bank. This is an example of how Ex-Im Bank is keeping Kentucky employees working.



Kentucky Lace Company Boosts
Sales and Increases Workforce
with Ex-Im Bank Financing (Photo
courtesy of Auburn Leather Company)


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One of Nine: Spotlight on Vietnam

Chairman in Vietnam Leads Business Development Team in Vietnam to Promote Closure of Nearly $1.5 Billion in Critical Infrastructure Projects

Hochberg and Lui with Vietnam PM

Ex-Im Bank Chairman Fred P. Hochberg following talks with Ex-Im Director Pat Loui and Vietnam's Prime Minister Nguyen Tan Dung to discuss the timetable for finalizing decisions on several of the nation's critical infrastructure projects (Ex-Im Bank photo)


In early February, Chairman Hochberg led a business development team with Ex-Im Director Patricia Loui in both Ho Chi Minh and Hanoi to boost commercial ties and business opportunities between the United States and Vietnam. Vietnam is one of nine key markets where Ex-Im Bank is focusing its business development efforts because of the country's infrastructure and development needs. Ex-Im Bank's current exposure to Vietnam is $175.8 million.


Asia is Ex-Im's largest regional market, representing nearly a quarter of the Bank's portfolio. Ex-Im Bank’s current exposure in Asia is approximately $27 billion. And Vietnam is a country with a great deal of untapped potential for U.S. exporters. Currently, over 500 U.S. American businesses have a presence in Vietnam. This country is speeding up implementation of economic and financial sectors restructuring. Ex-Im Bank is looking for projects that will create good jobs and economic opportunities in both countries while also meeting Vietnam’s power and infrastructure needs. Ex-Im Bank's business development team currently has three infrastructure projects in the pipeline and is continuing to hold discussions with business leaders on additional export opportunities for U.S. exporters.

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Upcoming Travel

Chairman Hochberg will be seeking more opportunities for U.S. exporters in China, the Middle East and Australia in the coming months.

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Export-Import Bank Annual Conference Highlights U.S. Export Growth,
Need for Financing



President Bill Clinton, Founder, William J. Clinton Foundation and 42nd President of the United States (Ex-Im Bank photo)


The significance of U.S. export growth to America’s economy and the need for continued availability of export financing were key themes highlighted at the Bank's 37th annual conference held in Washington, D.C., April 12-13.

The conference drew more than 1,200 participants from 40 countries and featured keynote speeches and panel presentations by world business, finance and political leaders. 

President Bill Clinton, founder of the William J. Clinton Foundation and the 42nd president of the United States, gave the keynote address on Thursday, April 12, focusing on the critical role of trade in global development. He also called for Ex-Im’s reauthorization and an increase in the Bank’s exposure cap.

Conference presenters on Friday, April 13, included Commerce Secretary John Bryson, Mayor of Chicago Rahm Emanuel and Jeffrey Sachs, director of the Earth Institute at Columbia University. A full list of participants at Friday’s conference session and other conference highlights are available online at http://www.exim.gov/news/annualconf/2012/index.cfm.


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Ex-Im Bank Annual Conference
Award Recipients

Congratulations to the Annual Conference award recipients for their exemplary work in the export community.

Hispasat Canarias S.L.U. Communications Satellite Transaction

Ex-Im Bank Deal of the Year: Hispasat Canarias S.L.U.  Communications Satellite Transaction (left to right: Ex-Im Bank Chairman Fred P. Hochberg, Ex-Im Bank Project and Structured Finance Loan Officer Michelle Miller, and Luis Julve, Treasury Responsible, Hispasat Canarias S.L.U. | Ex-Im Bank photo)


Ceilings Plus

Small Business Exporter of the Year: Ceilings Plus (Los Angeles, California) (left to right: Ex-Im Bank Chairman Fred P. Hochberg, Ex-Im Bank Business Credit Division Relationship Manager Smaro Karakatsanis, and Nancy Mercolino, CEO, Ceilings Plus | Ex-Im Bank photo)


Northern Power Systems

Clean-Energy Exporter of the Year: Northern Power Systems (Barre, Vermont) (left to right: Ex-Im Bank Chairman Fred P. Hochberg, Ex-Im Bank Renewable Energy & Environmental Exports Director Craig O'Connor, and Reinout Oussoren, Managing Director, Europe, Northern Power Systems | Ex-Im Bank photo)


Black & Veatch

Sub-Saharan Africa Exporter of the Year: Black & Veatch (Overland Park, Kansas) (left to right: Ex-Im Bank Chairman Fred P. Hochberg, Ex-Im Bank Regional Director for Africa Rick Angiuoni, and Dean Oskvig, President & CEO, Black & Veatch | Ex-Im Bank photo)


Trade Acceptance Group

Broker of the Year: Trade Acceptance Group (Minneapolis, Minnesota) (left to right: Ex-Im Bank Chairman Fred P. Hochberg, Leslie Bergland, Principal, Trade Acceptance Group, and Ex-Im Bank Small Business Marketing Director of Broker Relations Amy Shinkman | Ex-Im Bank photo)


Wells Fargo

Lender of the Year: Wells Fargo & Company
(left to right: Ex-Im Bank Chairman Fred P. Hochberg, Ex-Im Bank Business Credit Division Relationship Manager Smaro Karakatsanis, and Derek Fried, Sr. VP & Sales Manager, Working Capital Group, Wells Fargo & Company | Ex-Im Bank photo)


Export Finance Assistance Center of Washington

Ex-Im Bank City-State Partner of the Year: Export Finance Assistance Center of Washington (Seattle, Washington) (left to right: Ex-Im Bank Chairman Fred P. Hochberg, Ex-Im Bank City/State & Trade Association Partners Director Michael Jackson, and John Brislin, President & CEO, Export Finance Assistance Center of Washington | Ex-Im Bank photo)


Brookings Institute for the Metropolitan Policy Program

Chairman’s Award: Brookings Institution for the Metropolitan Policy Program (left to right: Ex-Im Bank Chairman Fred P. Hochberg and Amy Liu, Sr. Fellow & Co-Director, Metropolitan Policy Program, Brookings Institution | Ex-Im Bank photo)

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