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Satnews Daily
August 24th, 2015

EXIM De-Funding One Of The Major Reasons For Upcoming Boeing Satellite Manufacturing Job Reductions

[SatNews] Several hundred jobs at Boeing Company are expected to be slashed through 2015 and early 2016, due to a slowdown in the company's commercial satellite manufacturing business.

Much of the business downturn is attributed to recent launch vehicle failures, the havoc resultant of the slicing and dicing of military budgets and, playing a major role in the situation, the lack of financing available to interested firms from the now-defunded (by the US Congress) US Export-Import Bank (EXIM). One major contract with Asian satellite operator ABS was cancelled due to that company's inability to obtain funding from EXIM for a Boeing satellite. In order to remain competitive, according to company spokespersons, hundreds of position reductions are necessary, with most of those slices to be obtained from the commercial satellite divisions. Boeing's main concentrations will remain, as always, on their commercial aircraft business.

EXIM has been decried in some political quarters as "corporate welfare" for large companies—others believe the EXIM loan and trade guarantee processes drive revenues into US Government coffers and also equals the business field for companies who are competing with non-US firms that are receiving trade credits from their own governments.

Boeing is, apparently, continuing to work with ABS to uncover other means of financing for the new satellite. However, there are other financing avenues available to that firm with satellite manufacturers that do possess the ability to apply for trade credits with their own governments. Given the financial hit to Boeing, there is only so much the firm can offer in the way of lending processes for those wishing to own Boeing satellites.