PMA urges support for small and medium-sized manufacturers.
Press Release Summary:
In a letter to Committee Chairmen, CEOs - members of the Board of Directors, Government Relations Committee, and Past Chairmen of PMA urged support for provisions that promote competitiveness of U.S. manufacturers, including addressing illegal currency manipulation, giving manufacturers who use raw materials ability to testify before ITC, and rejecting practice of zeroing. Members asked that legislation to reform trade laws help small and medium-sized manufacturers compete in global marketplace.
Original Press Release:
PMA Urges Congressional Support for Small and Medium-Sized Manufacturers in Upcoming Trade Legislation
WASHINGTON, D.C.-January 29, 2008-Leading CEOs of small and medium-sized manufacturing companies appealed today to Senate Finance Committee Chairman Max Baucus and House Ways & Means Committee Chairman Charles Rangel for Congress to ensure that any legislation to reform and strengthen U.S. trade laws helps small and medium-sized manufacturers compete in the global marketplace.
In a letter to the Committee Chairmen submitted today, the CEOs - members of the Board of Directors, Government Relations Committee, and Past Chairmen of the Precision Metalforming Association - specifically urged support for provisions that promote the competitiveness of U.S. manufacturers, including addressing illegal currency manipulation, giving manufacturers who use raw materials the ability to testify before the International Trade Commission, and rejecting the practice of "zeroing."
"PMA members sent this letter to alert Congress that small and medium-sized steel-using manufacturers across the country need their help," said PMA President William Gaskin. "Our members have been hit hard by the rising price of steel and other raw materials while at the same time losing market share to Chinese companies that receive illegal subsidies. Let me be clear: we are advocating for updates to U.S. trade law that promote trade - our members need access to raw materials at globally competitive prices - but we also must ensure that our trading partners abide by international trade obligations."
The letter cites a case of a PMA member in Indiana that manufactures components for livestock and travel trailers. A Chinese company is selling a particular part in the United States for $5.62; the cost of steel alone for the U.S. manufacturer is $5.95 for the same part. "This resulted in the loss of the product line for the company - a product line that shipped 150,000 parts per year," wrote the CEOs. "When the cost of this completed part is less than the raw material cost alone SMMs are at a significant global disadvantage."
Excerpts of the CEOs' letter follow:
"Small middle-market manufacturers are facing challenges at home and abroad. Illegal subsidies to companies such as those in China are creating a surge in imports of inexpensive metal-containing components such as automotive parts. In addition, the cost of manufacturing in America continues to increase significantly. Supplies of raw materials are decreasing while the prices for those raw materials, especially steel, are increasing."
"We encourage you to continue working with the Administration on a solution to illegal currency manipulation and provide them with additional tools to strengthen their enforcement abilities. SMMs are also at a disadvantage due to our own outdated trade laws. Domestic industrial consumers, including PMA members, are currently barred from participating in trade cases involving imports of raw materials such as steel. Unless granted standing, these businesses and their employees cannot present data and information the ITC needs to make a proper decision before applying tariffs on essential raw materials. Increased restrictions on the domestic raw material supply, coupled with the practice of zeroing, which further increases the cost for U.S. manufacturers, results in additional advantage foreign competitors have over SMMs."
PMA is the full-service trade association representing the $91-billion metalforming industry of North America - the industry that creates precision metal products using stamping, fabricating and other value-added processes. Its nearly 1,200 member companies include metal stampers, hot-rolled fabricators, spinners, slide formers and roll formers as well as suppliers of equipment, materials and services to the industry. Members are located in 30 countries, with the majority found in North America (in 41 states of the U.S.) as well as Canada and Mexico.
A copy of the letter and additional information on PMA can be found at www.metalformingadvocate.org or by contacting Amanda Lahan at 202-466-6210 or Amanda.Lahan@pbnco.com
Contact:
Amanda Lahan
Phone: 202-466-6210
E-mail: amanda.lahan@pbnco.com
