Louisiana-Based Custom Dredge Manufacturer Ships to Emerging Markets With Ex-Im Support
DSC Dredge LLC – Reserve, Louisiana
DSC Dredge LLC. (DSC), based in Reserve, Louisiana, manufactures made-to-order dredges, machines that that move large quantities of earthen material, that are used in a wide a variety of applications. From the maintenance of harbors and rivers in cities like New Orleans to large-scale infrastructure projects in emerging markets like Nigeria, DSC does its best to meet the requirements of its customers.
“Our goal is to give you exactly what you need,” said Kevin Dolan, Vice President of Finance and Chief Financial Officer of the 140-employee company. DSC makes every dredge to order, offering them for $300,000 all the way up to $10 million for larger, more complex projects. The price depends upon the sophistication of the dredge and the customers’ application
A key part of meeting their customers’ needs is providing financing for their dredge manufacturing operations, and that’s where the Export-Import Bank comes in, according to Mr. Dolan. Ex-Im support can be in the form of working capital and/or direct loan support to DSC customers
Depending on the year, 50-70 percent of DSC’s sales are international, and the Ex-Im Bank is often a necessary part of completing those deals. To export to Bangladesh, for example, DSC needs official export credit assistance from Ex-Im because Bangladesh’s central bank demands that advance payments made to DSC be supported by standby letters of credit. In other cases “customers require Ex-Im letter of credit support for advance payments,” said Mr. Dolan.
Mr. Dolan adds that even when Ex-Im support isn’t a prerequisite for a sale, it helps DSC compete with dredge manufacturers in other countries. “We’re not the only ones with an export-import https://exportersforexim.org/files/2014/11/program,” he said.
He’s right. There are more than 50 Ex-Im counterparts all around the world. Many support their own companies more aggressively than the U.S. Ex-Im Bank.
Mr. Dolan feels frustrated that Congress seems to be overlooking small businesses like his when talking about closing the Bank. “They don’t talk about the small businesses that provide jobs with Ex-Im support,” he said.
Losing the Ex-Im Bank would be a painful blow to DSC, which usually has between $5 and $10 million worth of open dredge sales using Ex-Im. Mr. Dolan said that closing the Bank would cost his company sales, jobs, and access to markets.