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.
Blogger: Kathy Kiernan Senior
Vice President & Managing Partner, APPI Energy Retail electricity prices are largely driven
by natural gas prices. Even though your
system operator (PJM, ERCOT, MISO, NEPOOL) is procuring power from a variety of
sources—hydroelectric, wind, solar, nuclear, coal, gas—the way system operators
pay generating plants is based on the last fuel used to meet demand, which is
almost always natural gas. Therefore, the amount you pay per kWh is determined
primarily by the current price of natural gas in your region. Retail electricity prices tend to follow
trends in natural gas prices. Gas prices, however, are significantly more
volatile than electricity prices. For example, when we see gas prices
fluctuate by as much as 70% in a single month, corresponding electricity prices
will generally move in the same direction, but by only around 10%. The change
in electricity prices will also typically lag behind gas prices by a couple of
the financial secto…
Guest Blog: Laurie Harbour President and CEO, Harbour Results, Inc.
In 2016 the U.S. manufacturing industry was relatively stable with overall production slightly up from previous years. Specifically, the automotive tool and die industry was predicted to be busy with forecasted tooling spend on the rise. However, taking a closer look, the year proved to be a bit more challenging. Data collected through the Harbour Results’ Harbour IQ pulse survey (a business intelligence tool for performance, financial, operational, trend and market data), which was completed by more than 100 tool shops globally in the second quarter of 2016, has shown that capacity reached a low of 81 percent among die shops in late 2015 and early 2016, but was expected to rebound to 78 and 86 percent respectively by year end.
So what caused the slow down? Program delays—on average, just over 20 percent of vehicle launches were delayed in 2015 and 2016. Work on hold—in early 2016, 18 percent of all work that had been …