Price Pump, a small manufacturing company based in California, was initially established in 1932 to cater to a niche market as a manufacturer of agricultural pumps. Over time the company grew and so did its innovative vision, shifting from agricultural to industrial and special purpose pumps. From cooling lasers for medical use to purifying water through reverse osmosis, today the pumps are valued by a variety of different industries for use in several different ways, in the U.S. and abroad.
Price Pump’s annual sales now hover between nine and ten million dollars each year and foreign business accounts for about 10 percent of those sales. Bob Piazza and Karl Buder, Price Pump’s President and CFO, estimate that 25 percent of foreign sales wouldn’t be possible and at least two jobs would not exist without support from the Export-Import Bank of the United States (EXIM).
While some companies rely on EXIM Bank for financing credit to help foreign buyers purchase U.S. goods, Price Pump primarily depends on the Bank for export credit insurance in order to expand their business worldwide. The insurance reduces nonpayment risk enough to give the small manufacturer the confidence to sell its product overseas and expand to new markets.
Since Price Pump began its relationship with EXIM 15 years ago, the company has expanded its exports into Europe, South America, Southeast Asia and Africa. Just under a million dollars of Price Pump’s sales are overseas, but foreign competition is growing increasingly stiff. Piazza explained:
“There will always be manufacturers making products similar to Price Pump’s located in countries that don’t have the strict government constraints that the U.S. manufacturers do. The EXIM Bank is one of the only tools helping to level the playing field for American companies competing abroad.”
Piazza and Buder also make it clear that EXIM is not a handout to Price Pump. The company pays a fee for international shipment and coverage, but the assurance it provides is a necessity. Without the backing of the Export-Import Bank, growth and expansion will not be feasible for small businesses like Price Pump who want to enter into high risk countries.
EXIM Bank provides financing solutions to help your small business increase its foreign sales while mitigating the risk when dealing with foreign transactions. Here is another example of EXIM Bank support and how we helped a company export fruits and vegetables around the world. To learn more about EXIM policies and programs for small businesses, fill out the form below to speak to your local EXIM rep: