Manufacturers respond to Obama State of the Union
by Rich Vurva
Two major manufacturer groups welcome the attention that President Obama brought to the industry during his State of the Union speech this week.
But they differ with the administration concerning policies that affect manufacturers.
Much of Obama's message focused on the need to bring manufacturing jobs back to the U.S.
"We can't bring every job back that's left our shore. But right now, it's getting more expensive to do business in places like China. Meanwhile, America is more productive," the president said.
The speech also outlined a proposal to provide incentives to manufacturers that keep production in the U.S.
"If you're an American manufacturer, you should get a bigger tax cut. If you're a high-tech manufacturer, we should double the tax deduction you get for making your products here. And if you want to relocate in a community that was hit hard when a factory left town, you should get help financing a new plant, equipment, or training for new workers," he said. "So my message is simple. It is time to stop rewarding businesses that ship jobs overseas, and start rewarding companies that create jobs right here in America. Send me these tax reforms, and I will sign them right away."
Stephen Gold, president and CEO of the Manufacturers Alliance for Productivity and Innovation (MAPI), is pleased with the president's focus on manufacturing.
"After years of public officials ignoring or even writing manufacturing off, our national leaders are finally recognizing the critical role the factory sector continues to play in innovation, creating jobs, and raising living standards. MAPI applauds the president for shining a primetime spotlight on American manufacturing," said Gold.
He noted that Obama expressed a strong interest in devising ways to maintain and increase the domestic manufacturing base. "The key is to create policies that make U.S. investment and production more alluring – and, as our research has shown, nothing would do more to achieve this goal than reducing the rates and complexity of the current federal corporate tax code," Gold said.
He added that, considering the economic and financial challenges Americans still face, we do not have the luxury of waiting until after the 2012 elections. "MAPI encourages the president and Congress to set aside their differences and start working immediately to develop a federal tax code that encourages investment and production in this country," Gold said.
National Association of Manufacturers (NAM) president and CEO Jay Timmons agreed with the president that manufacturing is poised for a renaissance. But the group differs with the administration's approach to policy that negatively impacts the industry.
"The president focused on the need to create jobs, shore up our energy security through increased domestic production and revive manufacturing in America. Yet his decision last week to reject the Keystone XL killed the promise of nearly 20,000 manufacturing and construction jobs along with the 118,000 indirect jobs that would ripple across our economy," Timmons said.
He added that it is 20 percent more expensive to manufacture in the U.S. compared to our largest trading partners. "This cost gap is a barrier that must be eliminated. The existence of this gap is not the work of our competitors but rather is self-inflicted by Washington. We have the opportunity to fix it and to reaffirm the global leadership of manufacturing in the U.S.," he said.
along the route of motel rooms, food, welding supplies, safety equip. Also manufacturing of the 36" pipe. Sounds like a lot of work to me.
INDUSTRIAL SUPPLY MAGAZINE
The May/June issue of Industrial Supply magazine features an in-depth cover story about GHX Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
