The U.S. aerospace industry is on track for maintaining last year’s record export sales, but the lack of a fully functioning Export-Import (Ex-Im) Bank remains “a source of great frustration,” Aerospace Industries Association president and CEO David Melcher said late last week.
In his final AIA annual media luncheon address at the helm of the association, Melcher noted the U.S. aerospace industry reached a record $90 billion in civil aircraft, space systems and military systems export sales in 2016, adding that this year appears on par with those numbers. Further, gross exports have increased 52 percent over the past five years.
But he cautioned success of sales doesn’t give the complete picture. At the same time, the U.S. industry is facing growing and fierce competition, he said. “It is hard to believe that the U.S. still doesn’t have a fully functioning Export-Import Bank.”
The bank is still lacking a full complement of directors and is unable to sign off on export deals valued at more than $10 million. This has had a tangible impact, Melcher said, pointing out that in the five years from 2011 to 2015 when Ex-Im was fully operating, the bank supported an average of $9.5 billion in export sales a year. That figure is now just 0.6 percent of that total—$57 million annually.
“Think about the deals we are leaving on the table for our competitors to take unopposed,” he said. “Why do some in Congress consider this state of affairs acceptable?”
He estimated that $30 billion worth of deals are being held up. “That’s $30 billion worth of jobs.” He also wondered about opposition to the Ex-Im Bank, given 86 countries have similar entities.
While pushing for a quorum, Melcher continued to express reservation about the nomination of former Rep. Scott Garrett (R-New Jersey) to head the Ex-Im, given his past opposition to the bank. He questioned how someone could “lead an organization you don’t believe in.”