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OKGIT’s Chuck Mills: Export-Import Bank is vital to America’s heartland

Chuck Mills.

Chuck Mills.

As the deadline for renewal of the Export-Import Bank of the United States’ charter approaches at the end of June, some congressional representatives promise they’ll allow the vital American economic tool’s existence to lapse.

In an article by Andrew Taylor of the Associated Press, House Financial Services Committee Chairman Jeb Hensarling said he wants the bank’s charter to expire without a vote and said that “the momentum is in our favor.”

“This is going to be a critical vote, or hopefully a non-vote, on the future of the Republican Party and the future of our economy,” Hensarling said.

Despite pleas from House Speaker Jon Boehner that such a move would risk thousands of American manufacturing jobs for workers whose products are shipped abroad and guaranteed through the EXIM Bank’s export credit insurance, it appears Representative Hensarling’s move to kill the vital government program may succeed.

The OKGIT’s Chuck Mills, who is also the 2014-2015 Chairman of the Oklahoma Chamber of Commerce and a third generation small business owner and exporter, penned an op-ed in the Tulsa World countering claims that the EXIM Bank is government subsidized corporate welfare and a burden on Oklahoma’s small businesses.

According to Mills, “the bank is a government agency that has, in fact, returned $7 billion to the government since 1992, while enabling businesses like ours to enter to new markets through the safety net provided by the bank’s export credit insurance offerings.”

Randy Kellogg

Randy Kellogg

He also touched on the repercussions should the bank’s charter not be renewed, writing “Three generations of my family have been manufacturing quality earth drilling products worldwide for a range of drilling types, right here in Shawnee. We sell drill bits, augers, and other equipment overseas, with exports now accounting for about 20 percent of our business. The export-import bank enabled us to cultivate many of these overseas opportunities — which would ultimately be jeopardized if the bank lost its charter, along with our 20 employees.

“In the Sooner State alone, since 2007, over 115 businesses received export-import bank financing that supported over 7,000 jobs. Losing that financing and the bank’s credit insurance offerings would deliver a harsh blow to businesses throughout the state.”

The OKGIT’s Randy Kellogg, an approved lender with many years of experience in assisting Oklahoma firms do business with EXIM, also spoke in favor of the charter’s renewal at the group’s March 2015 meeting.

“Export-Import helps keep a level playing field for Oklahoma companies on international markets…it doesn’t help finance foreign governments as some critics suggest or only benefit big companies. Its financing helps smaller manufacturers who are indirect exporters when they supply firms like Boeing Company…”

Sawyer Manufacturing Co.

Sawyer Manufacturing Co.

The most obvious success story of EXIM’s support on Oklahoma-based businesses is Sawyer Manufacturing, which was just named the Small Business Administration’s National Exporter of the Year.

In an EXIM feature on the Tulsa-based small business‘ use of the banks financing, Sawyer Manufacturing’s Vice-President Dave Hembree said  that “the ability to extend credit on international sales allows us to grow our business in existing international markets and export our products to new countries by giving our international distributors more flexibility to invest and market our products. Credit terms provided to our international distributors in these markets allow them to better compete, so it makes our U.S. made products more competitive in the international markets.”

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Governor’s International Team well represented at 2015 Offshore Technology Conference

Dr. Jim Collard, John Curzon, Jennifer Springer and Ray Brown, Pipeline Equipment, Inc.

Dr. Jim Collard, John Curzon, Jennifer Springer and Ray Brown, Pipeline Equipment, Inc.

Among the estimated 94,000 attendees to this year’s Offshore Technology Conference in Houston, Texas were several representatives from the Lone Star State’s northern neighbor, including members of the Oklahoma Governor’s International Team.

Dr. Jim Collard of the Citizen Potawatomi Nation Economic Development Department, John Curzon of CCK Strategies and Jennifer Springer of the Oklahoma Department of Commerce were on hand as group representatives for an evening reception co-sponsored by the ODOC and OKGIT.

“Simply put, it was a great opportunity to showcase Oklahoma for companies from across the country and across the world,” said CPN’s Dr. Collard.

The annual offshore technology conference is an international affair with energy professionals from across the globe converging on Houston to meet and showcase new technologies, practices and ideas. While the conference is focused on energy industry issues, the diversity of industries represented by the 94,000 attendees offers opporunities to discuss issues as wide ranging as international trade, technological updates and financing for future projects.

If you’d like to learn more about the 2015 Offshore Technology Conference or future events like it, visit their website here. If you’d like to learn more about the Oklahoma Governor’s International Team’s participation in the 2015 event, please contact Dr. Jim Collard, John Curzon or Jennifer Springer for more information.

 

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Hong Kong trade delegation visits Oklahoma

Though the energy industry receives much of the coverage for its impact on Oklahoma, the state boasts a wide range of sectors and products that appeal to foreign markets.

Subrina Chow - Courtesy of www.norcalwtc.org

Subrina Chow – Courtesy of www.norcalwtc.org

The Journal Record’s Brian Brus chronicled the visit of a delegation from one such market who visited Oklahoma City this week. Subrina Chow, a representative at the Hong Kong Economic and Trade Office in San Fransisco met with a number of government and commercial representatives in a stop at the state capitol, including Governor Mary Fallin.

According to the article, Chow’s visit was to learn more about suppliers for Hong Kong’s growing need for food products, manufactured goods and computer equipment. The state’s aerospace and biotech sectors were also areas of interest for the former British colony, which since 1997 has been a part of the People’s Republic of China under the “One country, two systems” governing strategy.

Of $40 billion in U.S. exports to China in 2014, Oklahoma exports only accounted for $41 million, a drop  from the $43.7 million the state sent to the People’s Republic in 2002 when then-Oklahoma Governor Frank Keating visited the island as a member of a trade delegation.  However, Oklahoma’s solid agricultural base provides opportunities for the steady, if slowing, Chinese economy.

By Daniel Mayer - via Wikipedia Commons GDFL.

By Daniel Mayer – via Wikipedia Commons GDFL.

Though the American beef industry’s exports have been hard hit due to a rising U.S. dollar and overhang from last year’s West Coast port strikes,  there was growth in the U.S.’s 2014 beef exports to Hong Kong, which is now the third highest beef importer globally behind Japan and Mexico according to an article at Oklahoma Farm Report by Oklahoma State University’s Derrell S. Peel. While Peel notes that January beef exports to Hong Kong were down by 33 percent, the end of the port strikes and demand in Hong Kong will likely return exports to a positive output.

If you would like to read the full report from The Journal Record about Ms. Chow’s visit, please click here. If you or your business would like to learn more about doing business in Hong Kong, please visit the Hong Kong Economic and Trade Office’s website here.

 

 

 

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Oklahoma exporter profile: Electro Enterprises Inc.

Oklahoma City- based Electro Enterprises Inc. was recently awarded the Export Achievement Certificate from the U.S. Commercial Service. We sat down with Electro Enterprises’ Mitch Enright to discuss the military and aerospace company’s work in Oklahoma and the challenges and benefits of exporting from the Sooner State.

What does Electro Enterprises Inc. do?

“Electro Enterprises is stocking distributor of interconnect, electro-mechanical, wire and cable, and wire harness management products for the military and aerospace industries. For more than 40 years, Electro Enterprises has been providing superior electronic components at competitive prices to various markets around the world.”

Electro Enterprises recent 36,000 square foot factory extension.

Electro Enterprises recent 36,000 square foot factory extension.

How many employees do you have in Oklahoma? How many more are outside the state? 

“In Oklahoma we have 140 employees, with an additional 43 located outside the state.”

Can you give me an idea of how much Electro Enterprises Inc. relies on exporting its products outside the U.S.?

“Exports make up roughly 15 percent of Electro’s total sales, which amounts to over $13 million in sales. Beyond this, exporting our products to companies around the world allows us to expand our customer base, reach new markets, and create relationships with manufacturers that we otherwise wouldn’t have the opportunity to work with.”

What are some of the challenges Electro Enterprises Inc. faces in exporting from Oklahoma? Are there some benefits from exporting from Oklahoma as well?

“It is extremely important for us to ensure that we are exporting all of our products within the rules and regulations set forth by the U.S. Department of Commerce as well as the U.S. Department of Defense. Being heavily entrenched in the military and aerospace industries, some of the items we sell are ITAR controlled and, as a result, we must make sure to apply for export licenses whenever applicable. Over the years, we have a created an internal export control system that allows us to successfully manage the export of products to our international customers.”

Looking back to when Electro Enterprises Inc. first began producing items for export, is there any advice that the company would provide to fellow firms in Oklahoma who are considering forging international ties and exporting?

“It is imperative for companies new to exporting to reach out to your local Department of Commerce office and sign up for export training. There are numerous export seminars that companies and attend at minimal cost. These seminars will provide the basic information that all companies need to know in order to export within all of the rules and regulations set forth by the Government of United States.

“While Electro Enterprises has been exporting for many years, we still make it a point to attend these seminars yearly.”

 

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Oklahoma exporter spotlight: Tactical Electronics

Though the energy sector has slowed in recent months, business for many Sooner State firms continues to move along at a brisk pace. A diversified group of Oklahoma businesses was recently recognized at the 32nd annual Oklahoma World Trade Conference for their excellence in exporting. We had the opportunity to speak with Addie Ventris, Marketing Director for Tactical Electronics, a 2015 Oklahoma District Export Council Export Champion award winner based out of Broken Arrow, Okla.

What does Tactical Electronics do?

“Tactical Electronics provides advanced technology and training solutions for military and law enforcement agencies. Our extensive product line includes covert wireless camera systems and EOD equipment used by special operations teams around the world. Our training division provides Counter IED training courses and IED Training Aids for EOD technicians and tactical operators. All of our services are designed to prepare technicians for what they might encounter behind a closed door, in a suspect package, or unsecured area.

“Tactical Electronics designs, engineers and manufacturers all of our products in house at our headquarters in Broken Arrow, Oklahoma.”

How many employees do you have in Oklahoma? How many employees do you have worldwide?RIP KIT_0914

“We have 44 in Oklahoma and 22 worldwide in Virginia Beach, Va., Chattanooga, Tenn. and in United Kingdom.”

Can you give me an idea of how much Tactical Electronics relies on exporting its products outside the U.S.?

“Since 2011, Tactical Electronics has seen a significant increase in our international sales. We continue to see a demand for our products and services worldwide and will continue to fulfill those requests through export.”

What are some of the challenges Tactical Electronics faces in exporting from Oklahoma? Are there some benefits from exporting from Oklahoma as well?

“While working to expand our international markets, Tactical Electronics has dealt with common growing pains to ensure our manufacturing lead times protect us from payment risks. To mitigate any financial risks we have instated a few internal policies and procedures with regard to payment, the examples are as follows.

“When working with new international customers, for whom Tactical Electronics has not established an ongoing relationship, deposits are required before work begins. For those customers unwilling or able to fund the deposit up front, Export Letters of Credit are required. Additionally, in instances where large unit volume is ordered, Tactical Electronics has started offering multiple ship dates to alleviate some of the financial stress. Finally, for those customers unwilling or able to pay in U.S. currency, Tactical Electronics has started hedging the exchange rate with a premium to compensate for rate volatility.

“Tactical Electronics will continue to develop improved processes to advance and expand our export strategy and international markets.”

Looking back to when Tactical Electronics first began producing items for export, is there any advice that the company would provide to fellow firms in Oklahoma who are considering forging international ties and exporting?

“Ensure that internal and external policies and procedures (as described above) for all export activities are in place at your organization before your first export activity.”

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Oklahoma’s Sawyer Manufacturing Co. named SBA’s National Exporter of the Year

Oklahoma firms continue to show why they can compete with firms closer to the coasts through a spirit of innovation and determination to grow their businesses overseas. Several Oklahoma firms were recognized for their exporting achievements during last month’s Oklahoma World Trade Conference, while Tulsa-based Sawyer Manufacturing Co. recently received an honor from the U.S. Small Business Administration, as it was named the national Exporter of the Year.

Sawyer Manufacturing Co. specializes in designing and producing pipeline infrastructure construction equipment, and according to company spokesman Drew Martins, prides itself in taking on projects of all kind to meet the needs of customers around the globe.

“We actively try to partner with other manufacturers when there’s an unmet need,” Martins told the Journal Record’s Brian Brus. “One of the things I see in other big and small companies is that if a product isn’t in their catalog, they pretty much refuse to do it. We approach it differently, because with enough time and resources, we’ll do anything.”

According to a release from the SBA, the firm was founded by Red Sawyer and AB Jensen in 1948, and has since grown to a 40-person staff exporting to more than 50 countries. In 2013 it was named as one of Tulsa’s “Fast 40” of the metro area’s fastest growing companies.

Though primarily focused on the oil and gas sector, the firm’s emphasis on diversifying its customer base allows it to succeed in a state where energy-related work has fallen off.

Vice-President Dave Hembree told the Tulsa World‘s Casey Smith that Sawyer’s readiness to take on unique projects that involve a smaller or customized line of products has the Tulsa firm branching out to customers in the restaurant, fitness, and water utility fields.

“The more diversified we can get, the better,” he said.

Representatives from Sawyer Manufacturing will visit Washington D.C. and the White House during the U.S. Small Business Administration’s National Small Business Week from May 4-8.

Sawyer’s success, as well as other Oklahoma exporting firms like it, show that despite Oklahoma’s landlocked location, good business practices and better products will continue to have an appeal to customers around the globe.

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Governor Fallin recognizes Oklahoma exporters at OK World Trade Conference

While the focus of presenters at the 32nd annual Oklahoma World Trade Conference was raising Oklahoma companies’ online profile and protecting their digital assets once there, Oklahoma Governor Mary Fallin was on hand to present awards to six companies for their more traditional exporting work.

The 2015 Oklahoma Governor’s Award for Excellence in Exporting went to Broken Arrow, Okla.-based Control Devices Inc. The firm is a leading manufacturer of pipeline pig tracking and communication equipment for domestic and global customers. Its 48 employees each have specialties in a diverse set of skills, from electronics, mechanical design, software and firmware programming, machining and more.

The Oklahoma District Export Council’s Export Champion Awards went to:

The U.S. Commercial Service’s Export Achievement Certificate went to:

 

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Oklahoma exporters watch as Congress debates EXIM future

As the June 30, 2015 deadline approaches for the U.S. Congress to reauthorize the charter of the Export-Import Bank of the United States, Oklahoma businesses face an uncertain future as some in Congress balk at it’s continuation.

On April 15, EXIM President Fred Hochberg was grilled by some members of the House Financial Services Committee skeptical of his leadership and the bank’s mission in providing funding for American exporters. Critics of the bank accuse its mission of being little more than taxpayer-funded corporate welfare for large multinationals. Another point of contention by Congressional critics is that the U.S. Treasury Department officials have not negotiated with foreign governments to end subsidized exporting, a mandate in a 2012 re-authorization bill by Congress.

In Oklahoma, public support for fiscally conservative policies for taxpayer funded organizations like EXIM can run in contrast to the positives international exporting can have on local, small businesses. The bank helps underwrite loans for American products sold abroad, meaning Oklahoman exporting companies can acquire a guarantee for their investments in personnel and infrastructure.

According to EXIM:

  • Oklahoma has 125 exporters whose total export value is $1 billion.
  • Of that $1 billion, $804 million is insured or financed through the bank.
  • The state’s top three export destinations are Mexico, Columbia and Australia.

In an EXIM feature on an Oklahoma Success Story, Tulsa, Okla.-based Sawyer Manufacturing Co. Vice-President Dave Hembree explains the bank’s impact on his firm’s business.

“The ability to extend credit on international sales allows us to grow our business in existing international markets and export our products to new countries by giving our international distributors more flexibility to invest and market our products. Credit terms provided to our international distributors in these markets allow them to better compete, so it makes our U.S. made products more competitive in the international markets. ”

Sawyer Manufacturing Co. also credits these financial assurances for its expanded business in Africa, Russia, Australia and the Middle East and the creation of 10 new jobs.

At the March 24, 2015 OKGIT meeting, group member and F&M Bank’s Randy Kellogg provided his take on the importance of the Export-Import Bank to Oklahoma companies.

“Export-Import helps keep a level playing field for Oklahoma companies on international markets…it doesn’t help finance foreign governments as some critics suggest or only benefit big companies. Its financing helps smaller manufacturers who are indirect exporters when they supply firms like Boeing Company…”

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University of Central Oklahoma named a top destination for international students

For many undergraduates hailing from the state that is the namesake of the University of Central Oklahoma, their time on campus is often a first chance to interact with fellow students from across the globe. At first glance, Edmond, Okla. does not appear to be a hotbed of international culture, but the presence of international students and faculty at one of the state’s oldest higher learning institutions fosters an inviting atmosphere for learning and cultural exchanges.

According to an article in the Edmond Sun, UCO’s international students hail from 84 countries and make up nine percent of the student body a total of 1,525 international students; 67 percent of those come from Saudi Arabia, China, Korea, Nepal and Vietnam.

From the Edmond Sun:

“UCO is a great place for international students — it stands out as a first class university in a growing metropolitan area. In addition to the amenities Central’s location offers, it is the only university in the state with an International House, which focuses on bringing American students and international students together for understanding and friendship,” said Dennis Dunham, Ph.D., executive director of the Office of Global Affairs at Central.“

The university’s ranks thirteenth in the latest Open Doors Institute of International Education Report, is the only institution in the state to be ranked in the top 40.

According to Open Doors latest data from 2014 on Oklahoma, the state is ranked twenty seventh out of fifty one (including the District of Columbia) in terms of the number of international students, a total of 8,913 persons. Oklahoma State University (2,324 students), the University of Oklahoma (1,985 students), the University of Tulsa (1,291 students) and Oklahoma City University (401 students) are the state’s other top institutions for international students. Chinese nationals make up the largest contingent of those studying in the Sooner State at 23.6 percent.

To read the full article about UCO’s ranking as a top destination for international students in Oklahoma, please click here.

Old North at UCO – Photo courtesy DrinkOmega at Wikipedia Commons.

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2015-16 OKGIT Chair Ian Ogilve on what the group does for Oklahoma

Ian

2014-15 OKGIT Chair Ian Ogilve

As Governor Mary Fallin said during our February 2015 gavel ceremony at the state capitol, one of the key tenets of the Oklahoma Governor’s International Team is to attract people to Oklahoma. Those of us already living and doing business here know that Oklahoma is an attractive place, and we want the rest of the world to know it too.

The OKGIT brings together volunteers from private industry, education, nonprofits, and government. Each of us is involved because we care about Oklahoma’s standing in the world.

We set out to encourage trade between companies in Oklahoma and the rest of the world, as well as foreign direct investment in the state. That international business is important to Oklahoma. If you think of your state companies as akin to a portfolio of stocks, you want to have companies in there that are benefiting from stronger economies elsewhere around the world. We want to sell to countries that are booming and get them to invest here. That diversification allows us to do better overall when our economy is not as strong at home.

The OKGIT’s diverse set of members each bring an expertise that can help your company, city or academic institution find those international connections and succeed. To the extent that your districts and towns may have interest from international companies, let us know. The Oklahoma Governor’s International Team can help.

If you have questions or would like to learn more about the Oklahoma Governor’s International Team, please email info@okgit.com.

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