As an S-corporation that pays income taxes at the individual rate along with two-thirds of manufacturers, HUSCO International is subject to the tax increases set to take place on January 1. As with two-thirds of manufacturers, those dollars that would be used to grow the company will instead be sent to Washington. Combined with the economic catastrophe of another recession and the elimination of market opportunities, the fiscal cliff represents a major threat. HUSCO President and CEO Austin Ramirez is exploring all options to ensure his company is optimally positioned. However, at the end of the day, like countless other manufacturers, his company is in dire need of a responsible solution from Washington.
Unfortunately, Mr. Ramirez says that his confidence in Washington’s ability to find a bipartisan, workable solution to the fiscal cliff is waning. “My story is the story of manufacturers across the United States: just as we started to lift ourselves out of this economic hole, we are in danger of being dragged right back down again. If the people at the negotiating table in Washington can’t put an end to the political posturing and come to a productive answer that will keep America from going over the cliff, the impact on my company will be severe. During the ‘Great Recession,’ we had to cut nearly half of our employees. We are now back to our pre-recession employment level and poised for record growth in 2013. However, if we go over the cliff and into another recession, all bets are off, and we will be looking at a much different scenario next year.”
Mr. Ramirez continued, “Compared to the beginning of the year, my attitude about the economic future of this country has pulled a 180-degree turn. The saddest part is that I truly believe that if we can solve this fiscal cliff soon and in a productive manner, there is serious opportunity for growth. I see a lot of pent-up demand in the marketplace that, with the burden of uncertainty removed, could be a tremendous boost to the economy. But without action and with massive tax hikes looming, this opportunity for success will vanish completely.”
After becoming an independent company in 1985, HUSCO flourished as a leading manufacturer of hydraulic components for off-highway and automotive applications. It invested heavily in the development of fuel-efficiency technology. Today, vehicles all around the globe contain parts from HUSCO that enable reduced fuel consumption. Mr. Ramirez took the reins from his father in 2011 and is set to lead the company to even greater heights. With a worldwide workforce of 1,268 men and women (696 of those in the United States), HUSCO is well positioned to succeed if we can avoid going over the fiscal cliff.