April 24, 2015

Boeing may relocate many of its operations overseas if Ex-Im Bank ceases

A number of conservative Republicans have targeted the Ex-Im Bank, which serves US exporters and the buyers of US goods, for closure in July when its funding runs out as they consider it usurps the role of the private sector and provides “welfare” for big business. Boeing however, which is a leading Ex-Im Bank beneficiary, supports multi-year renewal of the agency, stating that it helps to create jobs. Boeing’s Chief Executive, Jim McNerney, said that “Most of my engineering and manufacturing jobs are in the United States and I’d like to keep it that way. But without Ex-Im financing, you’d have to start asking the question.” He added, “Boeing can survive, for sure… but the competitiveness dislocation would be significant. If Ex-Im goes away, you’d have the ‘Wild West.'”
Boeing have indicated they may have to relocate US-based engineering and manufacturing jobs overseas if Congress decides to eliminate funding for the Bank. Boeing has approximately 165,000 engineering and manufacturing jobs in the US. Additionally, a number of the 1.5 million company jobs in the US supply chain could also be jeopardized if US credit support ceased, Boeing’s CEO, Jim McNerney intimated, also pointing out that the loss of export credit support would prove advantageous to Boeing’s overseas competitors, who can rely on backing from their home agencies. He made it very clear overseas competitors are already using the Ex-Im Bank uncertainty as a sales tool concerning the company’s potential lack of reliability, saying “That’s a very effective sales strategy for our competitors”
He said Boeing’s overseas competition is already using the Ex-Im Bank debate in Congress as a sales tool by telling prospective buyers that US export credit support is not dependable.” he told attendees at a US export credit agency sponsored conference. However McNerney had come under fire from the Republican chairman of the US House Financial Services Committee ahead of the conference, who lambasted McNerney for refusing to accept an invitation to testify about the Ex-Im Bank at a hearing anticipated for May or June.



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