Rep. Kaptur Ex-Im Lake Erie Coastal Tour Highlights N. Ohio Jobs, Growth
Tour includes visits to local manufacturers from Port Clinton to Cleveland
WASHINGTON, D.C.— Congresswoman Marcy Kaptur (OH-9) completed a whirlwind tour of businesses along the Northern Ohio Manufacturing Corridor today as part of her #ExIm4Ohio jobs tour. Rep. Kaptur toured each site to learn about how the loss of U.S. Export-Import Bank services would impact these local businesses and their surrounding communities. The tour included visits to Port Clinton Manufacturing in Port Clinton, A.J. Rose Manufacturing in Avon, and MAGNET and Cleveland Whiskey in Cleveland.
“Today was about supporting job creation and building globally competitive industries in Northern Ohio’s manufacturing corridor,”said Rep. Kaptur. “Meeting with business owners and workers today made this absolutely clear: local manufacturing in our region has extraordinary potential. The U.S. Export-Import Bank is an important source of support that can, and does, help these hard working Ohioans reach for that potential.”
“Whether it was a company with a century of local history or one whose products are just hitting the shelves, these business owners and their workers recognize the importance of growing our region’s exports,” Kaptur added. “I urge my colleagues in Congress, especially my fellow Ohioans, to support local economic growth and opportunity and reauthorize the Export-Import Bank without further delay.”
Rep. Kaptur’s tour began at Port Clinton Manufacturing in Port Clinton, Ohio. The company started as a marine fabrication and repair shop in 1929. They currently serve as a tier I original equipment manufacturer (OEM) parts supplier for engine builders engaged in rail transportation and gas & oil mining businesses. The company maintains 30 full time tradesmen, operators, and staff in Port Clinton, Ohio. According to owner Dan Stotts, all of the company’s major customers use the U.S. Export-Import Bank extensively. If those customers, including General Electric, move operations outside the U.S., it would have major negative implications for this company.
From Dan Stott, President and Owner of Port Clinton Manufacturing: “Thank you to Congresswoman Kaptur and her team for visiting our plant this week. We feel very honored. While we don’t use the services of the Export-Import Bank directly, it provides a major service to many of our customers. Without the bank, Port Clinton Manufacturing’s business would surely suffer and that could mean fewer jobs and less opportunity in our community.”
After her stop in Port Clinton, Rep. Kaptur traveled to A.J. Rose Manufacturing in Avon, Ohio. A.J. Rose was founded in 1922 as a tool shop on the west side of Cleveland. Today they manufacture and assemble precision-formed metal products for cars, trucks, and farm equipment. Their products are exported to markets in Germany, Mexico, Canada, Brazil and China, a fact made possible thanks to Ex-Im Bank’s Lender Loan Guarantee. Using this service made it possible for PNC Bank to provide A.J. Rose Manufacturing with a three-year revolving $1.5 million working capital loan. The company is nowlisted as an Export-Import Bank Success Story.
From Douglas E. Krzywicki, CFO of A.J. Rose Manufacturing Co.: “As a global supplier, it is imperative that our business be able to supply parts to our customers’ facilities around the world. With U.S. banks unwilling to lend against foreign receivables, more than 20 percent of our collateral would be lost without the guarantee provided by the Ex-Im Bank. This loss of credit would directly impact our ability to grow based on our current customer mix. Our industry, like many others, is competing globally. The uncertainty of the Ex-Im Bank causes concern to businesses such as ours as we try to make long term plans to grow, hire, and invest in capital.”
For her final stop on the tour, Rep. Kaptur traveled to Cleveland to tour Cleveland Whiskey and meet with President and CEO Tom Lix as well as Ethan Karp, President and CEO of The Manufacturing Advocacy and Growth Network (MAGNET). Cleveland Whiskey was founded in July 2009 as a start-up in MAGNET’s incubator, allowing the company to make use of the Cuyahoga County New Product Development Loan Fund, administered by MAGNET, as well as MAGNET's Product Design & Development (PDD) engineering team.
From Ethan Karp, President and CEO of MAGNET: “MAGNET’s sole mission is to grow manufacturing companies throughout Northeast Ohio, because a growing manufacturing sector means more jobs, stronger communities, and a more vibrant regional economy. The Export Import Bank is an important asset to small- and medium-sized manufacturers, and even catalyzes their growth and new job creation. For that reason, we support the Bank’s reauthorization.”
Cleveland Whiskey uses a patented and proprietary method to accelerate the maturation of whiskey and bourbon, taking only six months to achieve the level of aging that is typical after 8 to 12 years through conventional means. Their branded whiskey hit store shelves in March of 2013. Foreign demand for U.S.-made whiskey and bourbon, especially in Japan and India, far exceeds what can be supplied currently. Because their innovative technology allows them to age their product in a fraction of a time, Cleveland Whiskey is able to manufacture and supply at rates far greater than their competitors. The company is an excellent candidate to grow with Ex-Im Bank support. However, the Bank’s Congressional authorization is currently expired, meaning it is only allowed to service existing agreements.
From Tom Lix, President and CEO of Cleveland Whiskey: “It’s simple, the Export Import Bank would help us reduce financial risk, open new markets and allow us to hire new people. We started exporting to Germany last year and we’re working hard at opening new markets in Asia. Having the bank reauthorized would give us a big boost and certainly accelerate our growth.”
Facts about Ex-Im:
- From 2007-2015, Ex-Im Bank services supported 362 Ohio exporters, 237 Ohio small businesses, and at least $3,036,260,888 in Ohio exports. 89.9% of all beneficiaries in Ohio are manufacturers.
- In Ohio’s 9th Congressional District from 2007-2015, Ex-Im supported 17 exporters, 13 small businesses, 14 manufacturers, and $35,813,019 value of exports.
- The Bank more than pays for itself. Last year Ex-Im Bank contributed $675 million to the U.S. Treasury and nearly $7 billion over the past 20 years. It also has an extremely low default rate on its loans: 0.175%
- More than 90 percent of Ex-Im Bank transactions last year directly supported U.S. small businesses. They also make up the largest share of total financing support - just under 40 percent, or $10.7 billion.
- More than 50 countries have an export-import bank including China, Japan, Germany, India, Korea, France, Brazil, and Canada.
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