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.
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 …
Election Day 2016 is not just about the presidential race between Hillary Clinton and Donald Trump. There are also races are happening across the country for seats in the House and Senate. So what is at stake for the 115th Congress?
Control of the House and Senate is particularly valuable in this election year. The next Congress may tackle tax reform, and many other issues critical to the manufacturing industry.
Here is the breakdown of our current Congress. Going into Election Day 2016, Republicans have a majority in both the Senate and the House.
Here is the latest data on how races are faring for these seats:
Current data seem to suggest that it is unlikely that the Democratic party will take back the House. Still, there are about forty races that remain incredibly close. For the Senate, who takes control is still too close to call, but Democrats are within four or five seats of retaking control. In any event, a newfound Democratic majority would by no means be commanding sinc…
A Metal Processor's Best Friend Guest Blogger: Mike Tieri Director of Sales & Marketing, Chemcoaters Scrap…What a problem! Are you having trouble with higher
scrap loss than you can understand or more importantly tolerate? It could be
the metal but perhaps it’s a problem in the processing itself. Have you looked
at dry-film lubricants (DFLs)? If it’s been a while, you should look again.
Largely used by the automotive and appliance industries, you surely know that
if it didn’t provide a tremendous benefit, they would never add that cost into
the process. When I asked why, I was shown all of the benefits it provided. CASE: One company
monitored costs of using oil against DFL. One item evaluated was worker gloves.
They said that bringing material in with oil showed that workers wore 5.6 pairs
of gloves per week. By going to DFL, the workers’ gloves didn’t get saturated
and usage was dropped to 2.4 pairs of gloves per week. It might not seem to
matter much but on 1800 workers the cos…