Export-Import bank means business for our region

By John Lummus

The Upstate’s economy is closely connected to the global economy. This is a real strength for our region and gives us more resilience in weathering economic slowdowns in the U.S. economy. We have companies with operations here from all over the world. Our Upstate counties include 372 international companies representing 31 countries including Germany, Japan, China, Italy, Korea and France, which means we are successfully competing globally from the Upstate.

We need every available tool that we can find to keep us competitive in the world market that includes emerging economies in China, India, Brazil and other places that are eager to welcome new businesses and the jobs that go with them. One of the tools available to Upstate companies is the Export-Import Bank of the United States (Ex-Im Bank).

This independent, self-sustaining agency of the U.S. government has the mission of helping large and small U.S companies have access to the financing they need to turn export opportunities into sales. It assumes credit and country risks that the private sector is unable or unwilling to accept. It also helps to level the playing field for U.S. exporters by matching the financing that other governments provide to their exporters. This is particularly true regarding helping Boeing compete with Airbus.

It does not compete with private institutions, but fills gaps in the trade finance market by working with lenders and brokers to ensure that U.S. businesses get what they need to sell abroad and be competitive in international markets.

The Ex-Im Bank provides working capital guarantees (pre-export financing); export credit insurance; and loan guarantees and direct loans (buyer financing). No transaction is too large or too small. On average, more than 85 percent of its transactions directly benefit U.S. small businesses.

Among the Upstate businesses listed as clients of the Ex-Im Bank are Sage Automotive in Greenville, Belton Industries in Honea Path, Carolina Cotton Works in Gaffney, Itron in West Union and Mt. Vernon Mills in Mauldin. GE does not use the Ex-Im bank, some of its customers do.

There are a total of 64,084 jobs in the Upstate that are supported by exports. The total value of exports from the Upstate is $12.15 billion dollars (up 65 percent since 2003), 23.4 percent of the Upstate’s total GDP of $52 billion. This Export Intensity of our region’s exports as a share of our total output is nearly twice the national average of 13.2 percent.

In late 2013, the Upstate region was accepted through a competitive application process to the five-year Global Cities Initiative, a joint project of the Brookings Institution and JP Morgan Chase. The first phase of the initiative, the development of a Regional Export Plan, is expected to be complete by the fourth quarter of 2014.

Over the course of the next five years, the Upstate SC Alliance will be guiding a core team through the process of moving our region forward in the areas of exports, innovation, leadership and workforce in order to elevate the Upstate from a global player to a recognized global leader.

So the Upstate is more competitive in the global market than most other places in the United States. By having the vision to establish our region as a participant in the global economy years ago, the leadership from an earlier time created a track record of success and credibility for the Upstate as a global player in the world economy. This early success makes it easier for us to continue to attract new companies from all over the world to enjoy and enhance our quality of life now.

Although the life of the Export-Import Bank was extended through June 30, 2015, this now leaves many small, medium and large companies who export and their workers in limbo for nine months. We need a long-term reauthorization to provide Upstate companies with a useful tool to remain effective against well-financed competitors for global sales.

Any tool that helps us preserve and grow this competitive advantage is worth jobs and capital investment to us. The Export-Import Bank is one such tool.

John Lummus is the president and chief executive officer of the Upstate SC Alliance, a non-profit organization made up of a public and private investors aimed at promoting economic growth in the Upstate. Additional information is available on the web at, www.upstateSCalliance.com.