What Should U.S. Do to Boost Domestic Fastener Manufacturing?
FEATURE
Beyond the statistics, here is a sampling of responses from the End of 2013 FIN Survey to the question on how to encourage manufacturing fasteners in the U.S.
The most frequent comment was some version of “lower taxes,” but participants also mentioned utility, labor and regulations costs too.
Respondents expressed a desire for a level playing field with Asian fastener manufacturing:
“Tariffs to match costs of meeting OSHA and EPA requirements in the U.S.”
“Tax on sea freight.”
“Higher taxes / tariffs on imported fasteners.”
“Pass the currency bill.”
“Recognize China as a currency manipulator.”
“Create more incentives for manufacturing. Increase the cost to import products across the board.”
“Duties on Chinese fasteners to account for currency manipulation.”
“Duties on certain fasteners.”
“Tax incentives to manufacture here in the USA.”
“Implement a more enlightened tax policy that accounts for the fact that 70%+ of all manufacturing businesses are held as pass-through entities and are now being taxed to the point that investment to support growth is extremely difficult.”
But one FIN Survey participant questioned new regulations to raise cost of imports: “How dumb is that?”
Taxes:
“Implement a more enlightened tax policy that accounts for the fact that 70%+ of all manufacturing businesses are held as pass-through entities and are now being taxed to the point that investment to support growth is extremely difficult.”
“Tax credits for technology improvements in capital machinery for manufacturers.”
“Stop creating burdensome taxes,” one said in reference to a “health care tax.”
Education:
“Set up header training centers.”
Regulations: There were numerous unspecified calls for reduced regulations.
“Lower the government impact on manufacturing.”
“Stop or reduce the new regulations every year.”
Customers:
“It’s a function of buyers making decisions strictly based on piece price and a bit of the herd mentality. Buyers need to truly evaluate total procured cost versus purchase price.”
“Buy more domestic products.”
“Buy American.”
“Buy quality product backed by exceptional service.”
Politics:
“Replace Congress in mid-term elections, re-vamp US business tax codes. allow for re-shoring of foreign revenues without double taxation if used in the investment and capital for US manufacturing.”
“Require domestic content on all government purchases.”
“Bring back U.S. parts requirements.”
“Stop letting legislation like Dodd Frank contain ill-conceived business bureaucracy.”
“Re-vamp U.S. business tax codes to allow for re-shoring.”
“Repeal ObamaCare.”
“Establish a national manufacturing policy.”
“Adopt a formal manufacturing growth agenda.”
“Boost the government.”
“Clarity and stability of government policy.”
“Keep the government out of the business. Let the industry stand on it’s own.”
“Continue with current agenda?”
The End of 2013 FIN Survey was published in the January 21, 2014 issue of Fastener Industry News. The full survey is available to FIN subscribers by clicking on FIN Survey on GlobalFastenerNews.com.
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