Celebrating Michigan Manufacturing During October’s Manufacturing Month

October is Manufacturing Month, a time to highlight the innovation and quality that defines U.S. manufacturing. This sector contributes $2.65 trillion to the U.S. economy, employs nearly 13 million workers, and makes up 10.3 percent of the nation’s GDP, according to the International Trade Association. In 2022 alone, U.S. manufactured goods exports reached nearly $1.6 trillion, representing 77 percent of total merchandise exports. Manufacturing Month not only recognizes the success of manufacturers who export but also encourages other manufacturers to expand their international sales.

Why Expand Globally?

Even if a business is thriving locally, international expansion opens doors to new possibilities. Here’s why exporting is an attractive growth strategy:

1. Access to a Larger Market: 95 percent of the world’s purchasing power lies outside the U.S. Tapping into global markets means access to a much broader customer base.
2. Diversifying Risks: Relying solely on domestic markets can be risky, especially when economic conditions change. Expanding internationally provides a cushion by diversifying revenue sources and reducing market-specific risks.
3. Strengthen Your Brand: Establishing a presence in multiple countries builds your global reputation. Becoming an international player can elevate your brand’s visibility and open doors to new partnerships and markets.

How EXIM Can Help Michigan Manufacturers Compete Globally

Through the Export-Import Bank of the United States (EXIM) Working Capital Loan Guarantee, manufacturers can secure the financial resources necessary to fulfill export orders, ensuring they’re not constrained by limited cash flow.
This guarantee allows manufacturers to:

1. Cover the costs of materials, labor, and supplies needed to fulfill international orders.
2. Post standby letters of credit as bid and performance bonds.
3. Purchase finished goods for export.

What Makes EXIM’s Working Capital Loan Guarantee Unique?

1. Flexible Financing: EXIM offers flexible terms designed for large contracts, giving businesses the capacity to pursue major international projects.
2. Better Advance Rates: With higher advance rates than traditional lenders, EXIM provides the cash flow you need to meet export demands.
3. Streamlined Access: Securing a line of credit from a qualified lender is faster, with fewer hurdles, allowing you to focus on growing your business.
4. Broader Collateral Use: EXIM’s guarantee allows businesses to include more types of collateral, helping them secure better financing terms.

Fueling Growth for Michigan Manufacturers

For Michigan manufacturers, exporting offers a pathway to long-term success and resilience. Michigan’s exports have grown from $44.9 billion in 2020 to $64.9 billion in 2023 — an increase of 45 percent. With financial support, including the Working Capital Loan Guarantee, companies can take on larger projects, win more bids and increase their global competitiveness.

As we celebrate Manufacturing Month, now is the time for Michigan manufacturers to consider global expansion. Learn more about available resources on the EXIM website.

About the Author

Mariel Huasanga is a Regional Director for the Export-Import Bank of the United States (EXIM), assisting Michigan business owners in their exporting journey. She may be reached at mariel.huasanga@exim.gov.

Export-Import Bank of the United States (EXIM) is an MMA Premium Associate Member and has been an MMA member company since January 2024. Visit online: exim.gov.