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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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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’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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