Forging Industry Association members
continued their education of policymakers April 17, when FIA’s annual Lobby Day
was held in Washington, D.C. On that day, more than two dozen FIA members
representing North American forging operations and suppliers to the industry
converged on the Capitol to meet with individual Senators, Representatives and
their staffs to discuss issues of concern to the forging industry. Members from
Connecticut, Indiana, Illinois, Ohio, Michigan, Pennsylvania, Texas and
Wisconsin participated.
Among the top-priority issues discussed this year were:
energy policy, overreach by the National Labor Relations Board (NLRB), the
possibility of comprehensive tax reform and the looming crisis in workforce
development. Other issues included the impact of defense budget cuts on the
forging industry, continuing concerns about healthcare costs and the burdensome
cumulative effects of regulations.
On energy policy, FIA members pointed out that forging is
energy intensive and relies on adequate supplies of affordable natural gas and
electricity. At the same time, forging is critical to the development of
alternative-energy sources, such as wind, solar and nuclear power, because many
of the components of those facilities are forged.
Regarding the NLRB, Lobby Day participants argued that
recent rulings by the Board, if not reversed or substantially amended, will
upset the balance of employee-employer relations, making it much more difficult
for employers to communicate with their employees regarding union
representation. FIA is made up of both union and non-union forge shops and
suppliers, and FIA members believe that respecting employees, regardless of
union affiliation, is the key to success in today’s global marketplace.
The prospect for comprehensive tax reform was also high on
FIA’s agenda. In general, FIA members argue for tax reform that makes U.S. manufacturing
more competitive, but they point out that many forging companies are
pass-through entities that, due to their business structure, pay taxes at
individual rates. In addition, many are small and medium-sized enterprises that
currently utilize various tax credits and deductions – such as the Research and
Development tax credit, bonus depreciation, Section 199 domestic production
credit and Section 179 expensing – as ways to reduce their overall tax burden
and remain globally competitive. The impact of these and other tax provisions
affecting forgers must be carefully evaluated in developing comprehensive tax
reform to avoid unintended negative consequences.
Workplace development is a growing concern for U.S.
manufacturers, and the forging industry is no exception. Manufacturers find it increasingly
difficult to replace skilled workers who retire and are seeking
employer-focused, demand-driven workforce development programs that focus on
the needs of manufacturers and combine vocational training with on-the-job
training. Accordingly, FIA supports public/private partnerships to provide better coordination among
educators, government and the private sector in recruiting employees into
manufacturing and providing them the basic educational foundation and job
training to fill high-skill positions.
More details will be available
in August’s issue.
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