Original Press Release
Exports Keep U.S. Economy Out of Recession
Press release date: June 2, 2008
Financing Plays Key Role in Enhancing Manufacturing Competitiveness
WASHINGTON, D.C., June 2, 2008 - Exports have accounted for early half (46 percent) of the growth in the U.S. economy over the past year and are supported by a robust financing sector, according to panelists in a roundtable discussion today hosted by the National Association of Manufacturers (NAM); its research, education and workforce affiliate The Manufacturing Institute; and the Equipment Leasing and Financing Association (ELFA).
"U.S. exports have kept the economy out of recession during the most recent two quarters," said NAM Chief Economist David Huether. "Capital goods exports -- including automotive vehicles and parts -- account for more than a third (34 percent) of total U.S. exports and nearly half (49 percent) of manufactured exports. These manufactured exports are the real bright spot in the U.S. economy and are supported by a robust financing sector. U.S. export growth will be a real shot in the arm for manufacturers in 2008.
"A recent survey of NAM members shows companies that anticipate exports will account for at least a quarter of their sales growth this year are more optimistic and expect to invest, grow and hire more in 2008 than companies that are not globally engaged," Huether added.
"Exports account for one out of every four jobs in our company," said Mary Andringa, President and CEO of Vermeer Corporation in Pella, Iowa. Vermeer employs 2,100 people in the United States who make specialized farm and construction equipment. "Our exports have increased by over 200 percent in dollar volume in just the past five years, and the external financing we offer our customers is a key component of our success. Our exports to Germany, Mexico and China will rise when we can establish a similar financing package for sales to these growing markets," she said.
"Emerging markets are growing at four times the rate of the U.S. gross domestic product and are in need of new infrastructure, energy and healthcare products and services. GE is well positioned to meet this demand and is actively integrating creative financial solutions into our industrial business offerings to address our global customer needs," said James J. Ambrose, President, Equipment Finance, GE Healthcare Financial Services and ELFA Chairman-Elect.
"With the right trade policies, we can continue to see the strong performance of manufactured goods exports supporting U.S. economic and job growth," noted Emily DeRocco, President of The Manufacturing Institute and Senior Vice President, NAM. "That is why we have to keep U.S. exports growing by implementing the remaining trade agreements with Columbia, Korea and Panama that will further open markets to American-made goods and services," she concluded.
The Equipment Leasing and Finance Association is the trade association that represents companies in the $600 billion equipment finance sector, which includes financial services companies and manufacturers engaged in financing the utilization and investment of and in capital goods. For more information, please visit www.elfaonline.org ELFA is also the premier source for statistics and analyses covering the equipment finance sector. To access ELFA's comprehensive industry information, please visit http://www.elfaonline.org/ind/research/
The National Association of Manufacturers is the nation's largest industrial trade association, representing small and large manufacturers in every industrial sector and in all 50 states. Headquartered in Washington, D.C., the NAM has 11 additional offices across the country. Visit the NAM's award-winning web site at www.nam.org for more information about manufacturing and the economy. The Manufacturing Institute is the research, education and workforce affiliate of the NAM. Visit its web site at www.nam.org/institute.