This blog is powered the Precision Metalforming Association (PMA). Metalforming is a $137-billion industry in North America, creating precision metal products for sectors from aerospace to medicine. We hope you'll check back often for the latest in industry news because...Metalforming Matters.
Talking Tax Reform: How You Can Participate in Decisions that Impact Your Business
The 2014 elections ushered in yet another wave of change in Congress - one that allowed Republicans to take control of the U.S. Senate and install Sen. Mitch McConnell as the new Majority Leader. In 2015, Congress is expected to tackle some tough issues. One item on the agenda? Tax reform.
Purchasing and building new machines is the lifeblood of the manufacturing industry. And many PMA members depend on valuable tax benefits to keep their facilities humming.
This year, 40% of One Voice members reported using the Section 199 domestic production activities tax deduction. At the same time, 45% reported using the R&D tax credit, 89% reported using bonus/accelerated depreciation, and a full 91% reported using Section 179 expensing.
PMA has consistently been among the leaders in Washington urging lawmakers to extend these business investment provisions. In fact, in 2014, the PMA advocacy program was instrumental in extending several key expired tax credits.
For example, in a November briefing at the House of Representatives, PMA Member Wes Smith, President and CEO of E&E Manufacturing in Plymouth, MI, testified that companies like his rely on key tax provisions to have the resources available to make investments and hire more employees.
“We just spent $10 million on a new set of machines, but that equipment takes over two years to place into service,” Smith said. “How can I plan and finance a two-year, $10 million project when I don’t even know what Congress will do two months from now? We can’t just purchase a machine on December 31st by midnight based on a vote Congress took that day.”
But the fight is far from over. The tax provisions most relied upon by PMA members will be on the chopping block again this year as the extension passed in 2014 will only last for one year.
And, of couse, tax incentives for growth are not the only issue weighing on manufacturers' minds.
Unfortunately, some in Washington want to lower the tax rate for C-Corporations
to 28%, while leaving the top 39.6% rate intact for most small businesses. The majority of One Voice members - 61% - are pass-through businesses, paying over 40% in total
federal taxes. Under some plans being discussed, policymakers would not include
these companies in tax relief. As part of PMA's advocacy efforts, it is important to work with members of Congress to
reform the tax code for all business, regardless of structure and type.
There’s a lot at stake for manufacturers this year, and to make a difference in Washington, those who know the industry best have to participate in the process.
You can join your One Voice colleagues in bringing some common-sense solutions to Washington during the seventh-annual PMA/NTMA One Voice Legislative Conference in Washington, D.C., April 21-22, 2015.
The conference is a unique opportunity to meet with members of Congress and the integral staff members whose decisions impact your business. In these meetings, you'll be able to address the issues most important to the industry and, even more importantly, share your own story. It is vitally important to remind Washington of the real-world implications of manufacturing policy in facilities across the country.
Never participated in a legislative conference? No problem! The One Voice Washington Office will offer a pre-conference webinar on April 9 at 2:00 p.m. Eastern to brief participants on the latest policy developments and what to expect during the congressional visits.
This is your chance to have your voice heard directly by the policymakers who are creating the laws of the nation. Register today.
President Trump yesterday signed a proclamation placing tariffs of 25 percent on steel imports and 10 percent on aluminum imports. Mexico and Canada are exempted from the tariffs for now. The tariffs take effect at 12:01 a.m. on March 23. The President’s action is the result of recommendations from two Section 232 (national security) investigations conducted by the U.S. Commerce Department.
According to the proclamation, within 10 days, the Commerce Department will announce the process for filing a request for an exclusion for steel and aluminum products not available in the U.S.
These tariffs will place at risk the jobs of millions of Americans who are employed in the metalforming, metal stamping and other U.S. industries that use steel. Restricted availability and increased costs for raw materials will likely lead to current customers sourcing finished products from overseas competitors, who will produce them with foreign steel or aluminum and import them tariff-free.
Guest Blogger: Bill Frahm
President, 4M Partners, LLC
Sheetmetal forming has many challenges and opportunities to offer students and new employees. New metals, new forming technologies, and evolving information and simulation technologies offer opportunities for engaged employees to shape the future. Adapting to change and leading the industry discussion requires the experience of seasoned employees, along with the energy and new ideas of knowledgeable young employees.
The market for talent is competitive. Your competition includes other manufacturers, Silicon Valley, Wall Street and government. Successful recruiting and retention involves attracting students to the industry and building a rewarding work environment. Unfortunately, manufacturing has to overcome negative perceptions.
The old Johnny Paycheck song, “Take This Job and Shove It,” has been around for 40 years. It’s been a standard of American blue-collar culture. The song’s sentiment counts among the reasons smart, young t…
We can generally sort Manufacturing Business processes into three groups: Make to Order, Assemble to Order, and Make to Stock. Make to Order is also known as custom build. Assemble to Order is used in repetitive manufacturing. And Make to Stock covers mass production of end products.
Let’s look at each one and see where to apply scheduling and planning tools for the best order to fulfillment timing.
Make to Order
Make to Order is the manufacturing process in which a large group of components can be made into very specific end products.
A printer may carry stock of many types and grades of paper and have the ability to create thousands of Ink colors. Skilled workers can use the tools and materials to create any item a customer may want printed. Then they can mass produce that Item into as many copies as the customer would like.
A die maker has large billets of steel in stock and with tools and produces very detailed dies to the c…