Government threatening future of manufacturing By Sandra Westlund-Deenihan As we kick off 2010, many manufacturers are cautiously treading water. Small- and medium-sized operations have lost the luxury of strategically operating on a five-year business model and have been forced to adopt a year-to-year approach. We can see the light in the distance, but do not want to forecast past the first quarter in fear of the unknown. As manufacturing continues to get back on course, there are several issues that threaten the success of our industry. It is essential to have resources available to help us grow, create jobs and stimulate economic growth. This means an investment in training programs, employer tax cuts, and a reduction in excessive mandates and overregulation by the government. The manufacturing industry will forge ahead if we wage a strategic line of attack. The best way to ensure our industry stays competitive moving forward is to dedicate resources to establish and invest in a well-trained and abundant workforce. Over the years, I have been consistent in advocating the importance of building a qualified pipeline of workers for the manufacturing sector. Of course, the economic recession and massive job loss plagues every industry, but if no money is spent on training, how will the unemployment numbers change? The current situation cannot improve without retraining dislocated workers in sustainable careers like manufacturing, a field that has long been the backbone of the U.S. economy. Stimulus funds dedicated to building jobs need to start funneling down to the education system. Further, as employers, we need to be prepared and take advantage of the opportunity to work with the education systems. In this way, we can establish employer-driven programs designed to train our workforce with the skills needed to compete successfully in the field of advanced manufacturing, allowing the U.S. to remain competitive in the global economy for years to come. It is imperative the government ensures these programs receive the funding allocated as part of the stimulus package to leverage opportunities to grow a strong manufacturing workforce. While government incentives are welcome, any “breaks” that may have been provided through the stimulus will take time to show on our balance sheets. Our incentives are focused on the long term. Many of us are being forced to close our doors and need an immediate gain to last until those long-term incentives begin to take shape. An immediate result could be realized with a cut to payroll taxes. This kind of tax relief for a pre-set period of months would produce a positive outcome for employers upon the first Friday payroll. All manufacturers would greatly benefit from a reduction in employer/employee taxes to help make ends meet as the industry recovers in 2010. As the government continues to explore new ways to spur economic growth, all options should be on the table. The government is at the forefront of making some important decisions that could have a grave impact on our industry and business as a whole. Part of protecting consumers has to include providing for business owners and employers. I fear the government’s favorite buzz word, reform, is merely an attempt to soften the blow of implementing a series of new and costly mandates which will ultimately place higher tax burdens and excessive fees on small business as we attempt to meet newly imposed requirements. The costs surrounding the proposed health care mandates will impact our ability to hire new employees. Proposed cap and trade climate change legislation will raise small business taxes, as well as lead to skyrocketing costs associated with energy and utilities. As a result, any profit margins will be gnawed away. The cost of doing business under excessive mandates and overregulation is far outpacing the rewards. Protecting the consumer at the expense of the producer will fail every time, as the costs will eventually trickle down to the end user. Many voices say the entrepreneurial spirit will be squashed in 2010. However, I tend to always take an optimistic, altruistic view on life, business and manufacturing. The door is wide open for manufacturing entrepreneurs if the government takes the approach of “less is more” with mandates and overregulation. Great opportunities still exist and manufacturing will stay competitive in 2010 if we are able to successfully navigate through the challenges lying ahead. Sandra Westlund-Deenihan is president of Quality Float Works, Inc., a Schaumburg-based family owned and operated manufacturing company that produces hollow metal float balls and float assemblies. Contact her at 847-781-8960.

Posted on Thursday, January 21, 2010 (Archive on Thursday, January 28, 2010) Posted by jstoltz  Contributed by jstoltz

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