U.S. Chamber: South Carolina Businesses Rely on the Export-Import Bank

By Stefanie Holland
U.S. Chamber’s Director of International Policy

There’s a little-known agency that’s helped South Carolina in a big way. It has created jobs, supported the economy, and enabled many small businesses to grow larger than they ever could without it. This agency directly supported nearly 8,000 jobs in South Carolina over the last few years, and has enabled the state to export an additional $1.232 billion worth of goods.

So which government agency benefits South Carolina so much? The U.S. Export-Import Bank (Ex-Im). But absent congressional action, Ex-Im’s charter will expire on September 30, and it will be forced to cease operations.

Ex-Im provides export financing to companies in cases where the private market is unable or unwilling to lend. Through direct loans, loan guarantees and insurance policies, Ex-Im enables many small companies to export and helps large corporations compete in tough global markets. In turn, this creates the type of engineering and manufacturing jobs that South Carolinians desire.

One large provider of these jobs in South Carolina is Boeing, the world’s leading manufacturer of commercial airplanes. Boeing employs over 8,000 South Carolinians in North Charleston and relies on Ex-Im to keep its competitive edge. Without Ex-Im, Boeing would likely lose billions of dollars’ worth of deals and be forced to cut thousands of American jobs.

Big exporters support thousands of jobs at smaller, local suppliers. Boeing has 50 suppliers in South Carolina, mostly manufacturing firms such as Alpha Sheet Metal Works Inc. in Ladson and Santee Industrial Products Inc. in North Charleston. Ex-Im supports jobs at these companies whenever the bank finances products jointly created with Boeing.

Case New Holland Industrial (CNH Industrial), one of the world’s largest manufacturers of heavy-duty construction vehicles and agricultural equipment, has 22 suppliers in South Carolina, including AVM Industries LLC in Marion and Duer/Carolina Coil, Inc. in Reidville. Like Boeing, CNH uses Ex-Im to level the playing field against competition from abroad. If Ex-Im expires, CNH’s market share will shrink, its competitors’ will grow, and South Carolina will lose high-paying jobs.

Nearly 90% of Ex-Im transactions support small businesses such as Bridge to Life Solutions Ltd. in Columbia. Bridge to Life employs 25 people, and Ex-Im insurance let it export its Belzer UW® Cold Storage Solution. This product safely stores organs at room temperature, saving lives. Chief commercial officer John Bruens credits Ex-Im for Bridge to Life’s success: “Ex-Im allowed us to build an international presence.”

Ex-Im also assists small manufacturing firms like Morrison Textile Machinery Company in Fort Lawn. Morrison employs about 90 locals and 70 subcontractors and uses Ex-Im working capital guarantees to secure loans for its exports. President Jay White says, “Ex-Im is far from a ‘negligible benefit’ to our small company. It is allowing us to build back, reinvent, and diversify our capital machinery business.”

The bottom line is Ex-Im lets U.S. companies export American products instead of American jobs. But time is running out. Ex-Im will expire on September 30 unless Congress acts swiftly. For the sake of South Carolina’s exporting future, Congress needs to reauthorize Ex-Im immediately.

Support Ex-Im Bank Reauthorization & Send a Letter to Congress at: www.uschamber.com/exim