Since 1966, Ampal Inc. has been a leading producer of atomized aluminum powders for customers in the U.S. and abroad. With offices in New Jersey and Pennsylvania, the company works with major smelters across the country to melt down aluminum and, through a process called atomization, produce aluminum powders that are used in the manufacture of a variety of products in the automobile, aerospace, chemical and explosives industries, just to name a few.
Though only an estimated 15 percent of Ampal's customers are located overseas, the financial support provided by the Export-Import Bank enables the company to reach this burgeoning marketplace and provides the necessary capital to invest back into the firm. Through Ex-Im Bank's insurance program, the company is able to receive higher advance rates on their accounts receivable, helping to increase their cash flow. This has enabled Ampal to expand into an international marketplace where they might otherwise not have had the working capital to do so.
If Ex-Im is not reauthorized this fall, Ampal's corporate controller, Barry Schmutter believes it could have an effect on many facets of their operations. Schmutter said, "without Ex-Im reauthorization, there would be some decline in our working capital which could impact our supply chain, including our raw material suppliers, and our general ability to efficiently manage the ongoing costs of running the company."
The company already faces a myriad of challenges when trading overseas including the higher costs of shipping from the U.S. versus the lower costs their competitors in the Middle East and Asia enjoy. For a company with 40 - 45 employees, any increase in business expenses and shift in their available working capital could have a significant impact on Ampal's ability to continue to hire and to expand their services.
Despite the uncertainty surrounding the reauthorization of the Bank, Schmutter says Ampal will always do their best to continue to serve their long-time customers and their employees. It is this never-ending drive to succeed that defines America's small businesses and further proves why Congress should continue to support an organization that contributes to their success.