This past Tuesday was National Golf Day, making this a fitting week to bring you the story of PING and how policies in Washington, particularly the miscellaneous tariff bill, are impacting golf equipment manufacturers.

In 1959, Karsten Solheim, a Norwegian immigrant and engineer, designed and manufactured a putter in his garage to address his frustration with putting, dubbing the new putter the PING putter because of the unique sound made when it struck the ball. A local golf professional was so impressed by the accuracy of the putter that he suggested Karsten make his invention available to other golfers.  Soon after, Karsten transformed the family garage into a miniature manufacturing and assembly facility.

By 1966, Karsten Manufacturing Corporation became his full time job. Karsten pioneered the idea of custom fitting each golfer for golf clubs with specifications to fit each golfer’s characteristics and swing. Now PING manufactures and delivers premium, custom fit golf clubs to its customers within 48 hours of receiving an order.

Manufacturing workers assemble golf equipment at a PING facility in Arizona

Karsten’s youngest son, John Solheim, assumed leadership of the company in 1995 and has overseen its growth while building on the foundation of innovation, quality and integrity established by his father over 50 years ago. (continue reading…)

The clock continues to tick and we are now more than three months pas the expiration of the Miscellaneous Tariff Bill (MTB) at the end of the 112th Congress and as a result, manufacturers both large and small have seen their costs spike substantially this year.  The 113th Congress must act quickly in order to reverse this tax increase on manufacturers in the United States.

Fans are assembled on the shopfloor at Lasko Products

Companies of all sizes benefit from the MTB to help level the playing field for manufacturers in the U.S. The MTB cuts costs by reducing or eliminating tariffs on critical manufacturing inputs that are not available in the United States. The lack of action by Congress on an MTB is hurting manufacturers’ cost-competitiveness, thereby threatening jobs and economic growth.

For Lasko Products in Pennsylvania, the MTB is a critical tool that helps them compete. In a challenging global market, the MTB helps Lasko stay competitive by reducing their costs.

“There are 675 American workers at Lasko facilities benefiting from the MTB program,” said Ed McAssey, Chief Operating Officer at Lasko. “The MTB allows Lasko to compete against low-cost imports of household electric fans from China. We are the last American producer of portable oscillating fans and have been able to stay in this business with the MTB program and heavy investment in capital equipment and tooling. If Congress fails to act quickly and renew the MTB, it will put American jobs in our factories at risk. We hope Congress will act expeditiously to preserve American jobs and our investment.”

Each day that passes without the MTB means higher tariffs for manufacturers in the United States – like Lasko. For three decades, Congress has acted in a bipartisan, bicameral fashion to pass this common-sense legislation.  The time for them to act on the MTB is now.

As the last Miscellaneous Tariff Bill (MTB) package expired at the end of the 112th Congress, manufacturers began to see their costs go up. Congress failed to pass a new package which lead to the expiration of duty suspensions on more than 600 products critical to manufacturers in the United States.

Ron Eva Speaks During an NAM Shopfloor Event on the MTB

The MTB provides manufacturers a duty suspension on inputs not available in the U.S. that are critical to the manufacturing process. In its simplest terms, it helps to level the playing field for manufacturers and supports jobs. Currently, it is 20 percent more expensive to manufacture in the U.S. compared to our major trading partners, this is why a tool like the MTB, which lowers costs, is critical to our competitiveness.

One company that sees the MTB as essential to competitiveness is BASF. BASF is the world’s leading chemical company – The Chemical Company. Its portfolio ranges from chemicals, plastics,  and performance products to crop protection products.  BASF has more than 100 facilities in 31 states across the country and more than 15,000 employees in the U.S. alone. The MTB is critical to BASF’s competitiveness in the automotive, printing, packaging, telecommunications and agriculture markets.

“The MTB helps BASF remain competitive in the agriculture market which continues to see increased competition and more choices for customers,” said Ron Eva, BASF global sourcing and contracting manager. (continue reading…)

The Miscellaneous Tariff Bill (MTB) expired on December 31, 2012, causing taxes to increase on more than 600 products critical to manufacturers. Today a group of manufacturing CEOs and senior executives sent a letter to congressional leaders urging action on a new MTB package to boost manufacturers’ competitiveness. The MTB is a tariff suspension on hundreds of inputs and products that are essential to the manufacturing process but not available in the United States.

Every day that passes without congressional action on a new MTB results in manufacturers costs going up, making it more expensive to manufacture in the United States. The longer we go without an MTB, the further it sets us back and puts manufacturing jobs at risk. The MTB levels the playing field for manufacturers and helps spur innovation and development of new products.

It’s time for the House and Senate to move forward with a new MTB.  Manufacturers in America can’t afford to wait any longer.

Jessica Lemos is director of international trade policy, National Association of Manufacturers.

This morning on Capitol Hill the National Association of Manufacturers (NAM) hosted a Shopfloor event to provide Congressional staff with additional information on the importance of the miscellaneous tariff bill (MTB). The current MTB expired at the end of 2012 and manufacturers have faced higher tariffs on products critical to their operations that are not available here in the United States.

The participants in today’s Shopfloor event included Linda Dempsey, vice president of international economic affairs for the NAM; Jessica Lemos, director of international trade policy; House Ways and Means Committee Chairman Dave Camp, Senator Bob Casey; Ron Eva, global sourcing and contracting manager for BASF Corporation and Ed McAssey, COO of Lasko Products, Inc.

Chairman Camp and Sen. Casey both discussed the importance of passing a bill as soon as possible. The MTB has bicameral and bipartisan support and helps support and create jobs.

Lasko Products produces desktop and oscillating fans at facilities in Pennsylvania, Tennessee and Texas and they employee 900 people. Mr. McAssey discussed how important the MTB is to the competitiveness of the company. Without the MTB they will see costs rise, making it more expensive to manufacture fans, putting jobs at risk. The failure to move an MTB will also resonate throughout the supply chain for manufacturers like Lasko, impacting even more jobs.

Mr. Eva from BASF talked about the importance of the MTB to help maintain competitiveness in markets such as automotive, printing, packaging, telecommunications and agriculture. BASF has more than 100 facilities in 31 states in the United States and employ more than 15,000 people. The global market is becoming increasingly more competitive and the MTB helps BASF better compete against this growing competition.

Following the Shopfloor event dozens of manufacturers met with members of Congress and staff in the House and Senate to drive home the importance of moving an MTB as soon as possible. “There is a lot of talk about growing manufacturing jobs and this is an easy step Congress can take to do just that,” said the NAM’s Jessica Lemos. With manufacturers already facing a 20 percent cost disadvantage compared to our major trading partners it’s important Congress gives manufacturers the tools they need to compete.

As the 112th Congress came to a close in early January they failed to pass a new miscellaneous tariff bill (MTB) package that would prevent taxes from increasing on manufacturers in the United States.  The MTB provides tariff relief to manufacturers on critical inputs that are not available in the United States, helping manufacturers better compete and create jobs.

Exxel sleeeping bag inspector examining a bag on the conveyor belt.

Exxel Outdoors is a manufacturer that would benefit from a new MTB package. Exxel makes outdoor products such as sleeping bags, tents and hunting and fishing apparel. They are the only company that produces mass-market sleeping bags domestically, at their factory in Haleyville, Alabama. Exxel Alabama manufacturers over two million family-style sleeping bags annually.

Exxel’s sleeping bag production requires the use of materials and inputs that aren’t available domestically. The MTB would help Exxel lower costs, enabling the company to better compete against growing global competition.

“We depend on raw materials that just cannot be sourced here in the U.S. to manufacture our sleeping bags domestically,” said Harry Kazazian, founder and CEO of Exxel Outdoors. “We have approximately 100 employees at our Haleyville facility, and we have plans to expand our operations and add more jobs here.  Passage of the MTB would help us keep costs down, allowing us to be more competitive with other countries and to expand faster.”

Kazazian is hopeful that Congress will act as quickly as possible to pass the MTB to help manufacturers create jobs.  Exxel faces competition from all over the world, and is already 20 percent more expensive to manufacture in the United States compared to our largest trading partners. The MTB would help to bring those costs to manufacture in the U.S. down.

Kazazian stated, “We need Congress to act expeditiously to help create American manufacturing jobs at a critical time for our economy.”

The 112^th Congress has officially ended and the 113th has begun. It is deeply disappointing that Congress failed to act on bipartisan jobs legislation– the Miscellaneous Tariff Bill (MTB). As a result, duty suspensions on over 600 products have lapsed, meaning costs have gone up for companies that manufacture in the United States. Another roughly 700 new bill requests were not considered; as a result, manufacturers did not see the costs of their inputs reduced.

It is already 20 percent more expensive to manufacture in the United States than in the markets of our trading partners. The failure of Congress to pass the MTB by December 31, 2012 means higher costs for manufacturers throughout the United States, putting them at a competitive disadvantage in the global marketplace. Manufacturers simply cannot afford this tax increase; they are already facing numerous challenges in a difficult global economy. This legislation would have cut their costs, enabling them to retain and grow critical manufacturing jobs here in the United States.

The MTB legislation has enjoyed bipartisan support in both chambers of Congress for decades, and the 112th Congress had the opportunity to pass this jobs-supporting, competitiveness-enhancing bill, but failed to do so. Manufacturers urge the 113^th Congress to pass this critical, job-supporting bill as quickly as possible and to ensure full retroactive relief on these tariff-cutting measures.

Jessica Lemos is director of international trade policy, National Association of Manufacturers.

Congress has a number of important issues it needs to address in a short amount of time.  While the Fiscal Cliff is the focal point of this lame duck session, another critical piece of legislation is awaiting consideration – the Miscellaneous Tariff Bill (MTB).   This vital package is a competitiveness bill that has been supporting and growing jobs for thirty years, and it is particularly important right now, given the major challenges manufacturers are facing in a difficult global economy.

The MTB reduces or eliminates import duties on essential manufacturing inputs and products that are not produced in the United States.  Manufacturers rely on these products for their manufacturing processes and can’t make their products without them.  The duty suspensions currently in place will expire on December 31st and if Congress fails to act it will increase costs on job creators, damaging their competitiveness in a challenging global economy and threatening manufacturing jobs in this country.

It is 20 percent more expensive to manufacture in the United States than to manufacture in the home markets of our trading partners.  Failure to pass the MTB will increase costs for manufacturers here, putting manufacturers in the United States at a disadvantage.  Manufacturers simply cannot afford another tax increase or more uncertainty. The MTB legislation has enjoyed bipartisan support in both chambers of Congress for decades, and now Congress has the opportunity to pass this jobs-supporting, competitiveness-enhancing bill before the end of the year.

Of all the challenging issues facing Congress right now and with our economy showing signs of a slow recovery, the MTB should be seen for what is – a jobs bill. Manufacturers all over the United States urge Congress to identify a path to passage for this critical legislation.  We simply can’t afford not to act on this bill.

Jessica Lemos is director of international trade policy, National Association of Manufacturers.

With May’s disappointing jobs numbers and stubborn unemployment rate, its absolutely critical that Congress continue moving forward on pro-growth bills that support jobs and enhance competitiveness for manufacturers in the U.S.  There are numerous legislative proposals on how to do just that, and among them is a package strongly supported by the NAM – the Miscellaneous Tariff Bill (MTB).

The MTB is a package of bills that reduce import duties on manufacturing inputs that aren’t available in the U.S.   The vast majority of these inputs are used by manufacturers in their manufacturing process.  Since these bills only apply to tariffs on products not produced domestically, the tariffs don’t protect any domestic manufacturers. 

In fact, they hurt the manufacturers who rely on these inputs in order to make their goods.  The MTB is about removing these costly import duties on products that are needed in the manufacturing process here in the U.S.  Keeping costs low for our companies enhances their competitiveness in the global market.   

With our economy still facing challenges we need Congress to work towards passage of the MTB by the end of this year to give manufacturers in the U.S. the low costs and certainty they need to stay competitive in the global market. 

Jessica Lemos is director of international trade policy, National Association of Manufacturers. 

Recent news stories illustrate some confusion surrounding the Miscellaneous Tariff Bill (MTB) and whether the duty suspension bills contained therein are earmarks or not.  The National Association of Manufacturers believes that the MTBs are not limited tariff benefits or earmarks and in fact they are actually a tax cut to keep manufacturers competitive with our global competition. 

Once these bills are enacted, the reduced duties can be enjoyed by any manufacturer or importer who wishes to take advantage of them.  The duty suspensions are in fact widely available and not limited at all.   They result in lower costs for manufacturers in the U.S. and do not direct spending in a specific Congressional district, making them extremely different than an earmark.

The facts are that these bills only apply to import duties on products not produced domestically – so the tariffs don’t serve to protect any domestic manufacturers.  In fact, they hurt the manufacturers who rely on these inputs in order to produce their goods.  Unlike earmarks, the MTB is about removing burdensome import duties on products not available domestically that are essential to the manufacturing process in the U.S.   It’s about enhancing the competitiveness of manufacturers by keeping their costs low.   

It’s simple:  if Congress fails to act on an MTB package this year, then taxes will go up on manufacturers in the U.S. who rely on duty suspensions to keep their costs low. 

With our economy still struggling to get back on track, and we need the tools from Washington to help level the playing field. Congress should work towards passage of the MTB by year’s end to give businesses the certainty and the low costs they need to stay competitive in the global market. 

Jessica Lemos is director of international trade policy, National Association of Manufacturers.