ICYMI: U.S. Jobs At GE, Boeing, And U.S. Small Businesses Put On The Line Due To Lapse Of Ex-Im Bank
Another day has passed and more jobs are in jeopardy because Congress has failed to reauthorize the Export-Import (Ex-Im) Bank. Just yesterday, General Electric announced that it will have to move 500 U.S. manufacturing jobs abroad in order to compete for ongoing projects.
Additionally, Boeing had to forfeit its second potential satellite deal because it did not have Ex-Im backed financing. Boeing’s satellite division faces severe hurdles without access to Ex-Im.
Please see below for further details on the consequences of failing to renew the Ex-Im Bank.
GE Vice Chairman John Rice Says GE Was Left With “No Choice” But To Move Production To Countries That Support High-Tech Exports.”‘In a competitive world, we are left with no choice but to invest in non-U.S. manufacturing and move production to countries that support high-tech exports,’ said John Rice, vice chairman at GE, in a statement on Tuesday.” (Nick Timiraos, “General Electric Says to Move 500 U.S. Jobs Overseas Blaming Ex-Im Bank Closure,” Wall Street Journal, 9/15/15)
Small U.S. Businesses Will Be Hit The Hardest By Ex-Im Bank Lapse According To GE Vice Chairman John Rice. “‘This is not just about big companies like GE and Boeing,’ Rice said. ‘That’s what the opponents of Ex-Im would want you to believe. It’s about the little companies that don’t have options. We can move production to France, but they can’t necessarily.’” (Rick Clough, “GE to Move 500 U.S. Jobs Overseas Following Ex-Im Bank’s Lapse,” Bloomberg Business, 9/15/15)
Lack Of Access To Financing From Ex-Im Bank Causes Boeing To Lose Another Potential Satellite Deal. “Boeing Co on Tuesday said Singapore-based satellite operator Kacific had decided it would not consider a bid on a satellite contract from Boeing without financing from the U.S. Export-Import https://exportersforexim.org/files/2015/09/bank, whose charter expired in june. this marks the second signed or potential satellite deal boeing has forfeited due to the congressional wrangling over ex-im’s future, following a decision by privately held abs, based in bermuda and hong kong, to cancel an order in july.” (“Boeing Loses Second Potential Satellite Deal Over Ex-Im Lapse,” Reuters, 9/15/15)
Boeing’s Growth Will Be Hurt If Uncertainty Around Ex-Im Bank Persists. “Boeing announced last month that it will cut as many as several hundred employees in its satellite business, citing the uncertainty regarding Ex-Im financing as a contributing factor. ‘Many of Boeing’s international customers rely on Ex-Im and the uncertainty surrounding the bank does affect our ability to grow our business with new orders and could affect future workforce decisions,’ Keller said.” (“Boeing Loses Second Potential Satellite Deal Over Ex-Im Lapse,” Reuters, 9/15/15)