Page 91 - MetalForming Magazine June/July 2022 80th Anniversary Issue

Spotlight on
ADVOCACY
PMA Puts its Stamp on Washington, D.C.
by Omar S. Nashashibi
As the Precision Metalforming Asso- ciation (PMA) celebrates its 80th year, we should reflect on what the U.S. Congress and government have faced and how their actions affect our industry. In the decades since PMA began to actively lobby policy- makers in the nation’s capital, the federal government has recognized PMA as the voice of the industry.
Today, U.S. manufacturers face conflict in Europe and threats from Asia, and are challenged to invest in new technologies that promise to change the world forever. In the year of PMA’s founding, 1942, U.S. metal formers made parts to support war efforts in Europe, deter an expansion of the war in Asia and help usher in new technologies. The politics then differed from today. Then, Democrats held signif- icant advantages in both chambers on Capitol Hill, whereas today the Senate is evenly divided, and many predict a Repub- lican takeover of the U.S. House after this November’s elections.
However, the importance of U.S. man- ufacturing to America’s security and econ- omy remains as strong today as in 1942. During the eighteen months of this 117th U.S. Congress, lawmakers introduced 1036 bills mentioning the word manu- facturing, approaching the 1187 from the previous 2-yr. Congress covering 2019-2020. Compare that with 20 yr. ago when, during 2001 and 2002, law- makers put forward only 596 bills involving manufacturing.
This increased level of interest by law- makers did not occur overnight. It took years of active involvement by PMA staff, its members and a full-time advocacy team in Washington, D.C. This constant
activity positions PMA as a leading and trusted resource by politicians and poli- cymakers who make daily decisions affect- ing U.S. manufacturing.
In the past year alone, PMA has worked with its allies on Capitol Hill to block tax increases, raise spending on apprentice- ships and job training, and draft legislation to help U.S. manufacturers compete against China while improving domestic supply-chain resiliency.
Often, we define success in Washington, D.C., as what Congress does not do rather than by what it does. PMA and other groups have lobbied during the past year to block efforts to increase taxes on C- corporations and passthrough businesses. Had manufacturers not engaged in this active lobbying campaign, businesses would have begun paying the higher tax rates on January 1, forcing them to redirect critical resources during a time of rising raw-material and supply costs.
Also, after pressure from PMA and its allies, President Biden replaced the 25- percent tariff on steel and 10-percent tariff on aluminum from Europe with tariff rate quotas. This means that for most of those alloys used by metal formers coming from the European Union, the tax on imports is lifted until reaching a certain quota. The U.S. remains the highest-priced metals market in the world and PMA fought for American manufacturers to play on a more equal footing with its Euro- pean counterparts.
That equal footing, though, requires addressing continued threats from over- seas, specifically Russia and China. PMA is working with the U.S. Congress on bipar- tisan legislation to strengthen U.S. supply lines, incentivize domestic manufacturing of semiconductors and other new tech- nologies, and provide resources for STEM education and training.
Some reports estimate that Beijing invests as much as $150 billion annually on semiconductors and regularly updates its industrial policy. Many believe that this is a contributing factor to why the United States, and the world, became over-reliant on Chinese imports, a strategy supported by funding. Lawmakers in both parties have heard for years the voices of PMA and others calling upon the United States to develop a national industrial policy. Policymakers in Washington, D.C., have begun to move forward after hearing those calls.
PMA and its allies are lobbying law- makers to invest in American industry in a way not seen since World War II. Threats from overseas and challenges at home have led policymakers to look internally to America’s manufacturers—as an employ- er base and to also strengthen our supply lines.
In 1942, 42 charter member compa- nies, during a time of conflict around the world, founded what is now PMA. Today, 80 yr. later, with conflict around the world, the U.S. continues to rely on PMA, its member companies, and all manufacturers more than ever.
Omar Nashashibi is a founding partner with The Franklin Partnership, a bipartisan lobbying firm based in Washington, D.C., and a key component of PMA’s One Voice advocacy efforts launched in 2008 in partnership with the National Tooling & Machining Association.
Early in 2019, PMA activated its One Voice team as the U.S. Trade Representative initi- ated a Section 301 investigation to enforce its rights in sparing copper alloys from a list of products subject to tariffs emanating from a trade dispute between the United States and EU over government subsidies for the aviation industry. Shown here (l to r): John Guzik, The Franklin Partnership; Dan Kendall, president of ABC Metals; David Klotz, president of PMA; and Charles Bernard, president of Eagle Metals.
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