Machine Tool Industry Revitalization Recommendations Presented to Obama Administration

Manufacturing industry leaders recently conveyed ideas for revitalizing American industry to vice president Joe Biden and other administration officials at a recent meeting of Biden's Middle Class Task Force. The group included representatives of Harley-Davidson, Spirit AeroSystems, Honeywell, Dow Corning, International Paper, Goodyear and others at a meeting with the vice president, commerce secretary Locke, labor secretary Solis, National Economic Council director Larry Summers, manufacturing czar Ron Bloom, and other top industry and administration staff.

"The meeting established a forum for manufacturing representatives to convey their ideas on what the government can do to support growth and revitalization of U.S. manufacturing," said Dan Janka, president of MAG (Erlanger, KY). "Our most pressing interests are extension of the current R&D tax credit and the 50 percent bonus depreciation for capital spending on equipment and plant infrastructure. Government can also encourage innovation through federal manufacturing R&D programs. In addition, we emphasized the urgent need for reform of U.S. export controls and business VISA requirements."

According to Janka, U.S. export controls put the domestic machine tool industry at a significant competitive disadvantage by forbidding export of certain products. "These same products, such as 5-axis machine tools, are freely produced and exported by our European and Asian competitors," he explained.

?Secretary Locke expressed his commitment to support export control reform and business VISA reform," added Janka. ?I stressed the need for quick action because our industry's inability to export is costing many high-paying jobs.?

During the task force meeting, the Vice President announced the Administration?s support for expansion of the Advanced Energy Manufacturing Tax Credit (MTC) by $5 billion from its initial $2.3 billion funding. The goal of the MTC is to stimulate clean-energy manufacturing in the U.S.

The meeting attendees were among the first to see the Obama administration?s ?A Framework for Revitalizing American Manufacturing,? released to the public after the task force meeting. The report attempts to analyze the cost drivers in each step of the manufacturing process and suggests a framework for designing appropriate government support. To read the Obama Administration?s manufacturing framework, go to AMT?s website.

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www.AMTonline.org