Cutting Edge Newsletter™ Special Edition ™ 2009 Washington Fly-In


Brilliant Sunshine, Serious Conversation:
Second Annual Woodworking Equipment and Wood Processing Public Policy Fly-In Attracts Members Who Visit
with Their Legislators

Wood Logo "The weather was spectacular. That helped all of our visits because bad weather can paralyze Washington," said Peter Perez, president of Carter Products Company, Grand Rapids, MI, past president of WMMA and an experienced hand at the annual Fly-Ins. During three balmy February days, members of Wood Machinery Manufacturers of America as well the Wood Machinery Industry Association and the Association of Woodworking and Furnishings Suppliers traveled to Washington to meet and talk with their senators and representatives. "But more unusual than the winter weather was our topic of discussion. We seized this opportunity to tell the real story of what is happening today in our companies - we need to get people back to work, free up frozen credit and make it easier for small- and medium-sized manufacturers to do business," Perez added.


Rep. John Kline (R-MN) and Greg Larson, Timesavers, Inc.
"Last year was the first year I attended the Fly-In," said WMMA member Greg Larson, president of Timesavers, Inc, Maple Grove, MN. "My visits this time were more interesting. I had a wide range experiences but it definitely helps to build on past experience." Larson met with Rep. John Kline, R-MN, Sen. Amy R. Klobuchar, D-MN, Rep. Michele Bachmann, R-MN, and Rep. Erik Paulsen, R-MN, or their staff members.

In fact, Larson's first meeting with Rep. Paulsen was a "walk and talk" as the congressman was unexpectedly called into a banking hearing. Regardless, Paulsen gave his constituent his attention as they talked about the WMMA issues. Later, in post meeting correspondence, Larson mentioned a business issue that was particularly affecting his company. To his surprise, a legislative aide followed up with a prospective solution. Paulsen is scheduled to visit a Timesavers factory in March.

Larson was impressed by the quality of the staff surrounding the elected officials. They questioned him closely before the appointments and were present during the meetings to take notes and provide more detailed information.

This view was echoed by WMMA board member Jamie Scott, corporate officer of Air Handling Systems By Manufacturer's Service Company, Inc., Woodbridge, CT. "I have had an ongoing dialogue with Rosa DeLauro, D-CT for four to five years to make sure she and her staff know the manufacturing point of view on the issues that affect my company and the industry." Well prepared and well versed in confirming meetings on his arrival in Washington, he arrived at DeLauro's office only to find that the senator had been pulled unexpectedly into a meeting with Speaker of the House Nancy Pelosi.

"I find that DeLauro will listen to what I have to say and often that information can mitigate the extremes of proposed legislation. It's all about finding common ground," said Scott, who chairs the newly formed WMMA Public Policy Committee's Industrial Dust Task Force which met for the first time during the Fly-In.

"The great thing about the timing of the Fly-In was that we were in the middle of the whole debate on the Stimulus Act, so the activity was fast-paced and challenging." Scott took the opportunity to contact the senator from Connecticut, Joseph Lieberman, and meet with a staff member who is the liaison to the issues that matter to WMMA members.

Peter Perez, fellow WMMA member Mark Chappell, vice president, Alexander Dodds Company, and Jim Scarlett, of Scarlett Machinery, all of Grand Rapids, met with Sen. Debbie Stabenow, D-MI. The senator was sympathetic to the WMMA issues of direct expensing, statute of repose and estate tax relief. She was undecided on the industrial dust question because it is so new.

Peter Perez, Carter Products; Jim Scarlett, Scarlett Machinery; Mark Chappell, Alexander Dodds, all of Grand Rapids, MI with Sen. Debbie A. Stabenow (D-MI)

 

Larson also reported that his meeting with Rep. Kline, who is the ranking Republican on the Education and Labor Committee and serves on the labor and workforce protection subcommittees went well. "He is very aware of the industrial dust issue and is keenly aware of the need to not over legislate."

 

How to Get the Longest Spin out of a Short Cycle


Kellogg's Wheaties box
The Carter Stabilizer in Sen. Stabenow's bookcase of Michigan products right next to the Kellogg's Wheaties box. Good company.
Perez comments that Washington runs on a very short cycle. For him, the Fly-In is the culmination of a year's worth of active business and political leadership in the Grand Rapids, MI area. His suggestions for a successful Fly-In follow:

I suggest that members begin a dialogue after the holidays and to be persistent. An important key is to talk to the right staff people. The "scheduler" in the Washington office is very important when trying to make your Fly-In appointment. Make sure that you copy the local staff in your emails because they should be in the loop, too. Then, routinely follow up two weeks before the meeting. Remind the office that you vote and pay taxes.

When I arrive in Washington, I call or email the office to confirm that I am in town. Often, meetings are changed at the last minute and that happened this year with Sen. Stabenow, who changed our meeting from Wednesday to Tuesday. And of course we dropped everything to make sure we had a face-to-face meeting with her.

I bring a folio that has a photo of my company or product along with the position papers that WMMA has developed and present it to the senator or representative. I ask that the photos be displayed in any exhibit case or cabinet that has reminders of the home district.

When I arrive home, I follow up with the appropriate thank you correspondence. I also make sure that I call, visit or have coffee with the local staff.

 

WMMA Participation Is High


Under the sponsorship of the WMMA Public Policy Committee and leadership of Chair Frank Kobilsek of Black Bros. Co., the Fly-In attracted over 30 percent of the membership. This clearly shows that members want to be involved and part of communicating with legislators. The goal is to initiate changes that will improve the business environment for small to mid-size manufacturing companies. This year, with a new administration, the interest was keener than ever.

 

The Issues: Public Policy Briefing


John Satagaj
John Satagaj, WMMA Legislative Counsel
John Satagaj, WMMA Legislative Counsel, was the featured luncheon speaker and he gave an up-to-the-minute briefing on the issues that members of the luncheon audience were soon to discuss with their senators, representatives and legislative staffs. The issues included:

After the Fly-In, Satagaj offered WMMA members a new service, The Washington Report which he emails directly to interested members. He has also made available to members the SBLC Weekly as well.

 

Newly Formed Industrial Dust Task Force Meets in Washington


Concerned WMMA members at the Fall 2008 Public Policy Committee in Philadelphia expressed their deep concern for future regulation of industrial dust as it pertains to combustible explosions and fires. Legislation in 2008 may affect customers of member companies. Under the sponsorship of the Public Policy Committee, the Industrial Task Force was created and is chaired by Jamie Scott and co-chaired by Dick Cowan, Rees-Memphis, Inc. The task force met in Washington during the Fly-In.

Proposed legislation in the House during 2008 required OSHA to establish a standard that shall, at a minimum, apply to manufacturing, processing, blending, conveying, repackaging, and handling of combustible particulate solids and their dusts, including organic dusts (such as sugar, candy, paper, soap, and dried blood), plastics, sulfur, wood, rubber, furniture, textiles, pesticides, pharmaceuticals, fibers, dyes, coal, metals (such as aluminum, chromium, iron, magnesium, and zinc), fossil fuels, and others determined by OSHA, but shall not apply to processes already covered by OSHA's standard on grain facilities.

The task force is monitoring events and gathering data to help ensure that any proposal addresses only those risks which have been clearly determined to be significant. More, the task force would like to see that where, in such cases when a need has been identified, that the proposal provides reasonable, specific standards and does not impose burdensome, expensive requirements upon businesses.

 

Emily Stover DeRocco, President of The Manufacturing Institute, Describes Scope of Manufacturing Woes and Offers a Way Forward


NAM


WMMA President Tom Onsrud of C.R. Onsrud introduced Tuesday night's featured speaker, Emily Stover DeRocco: In early 2008, Emily Stover DeRocco became president of The Manufacturing Institute and its National Center for the American Workforce and also senior vice president of the National Association of Manufacturers. She oversees NAM's education and research arm and the design and operations of the new national center dedicated to fostering a new generation of manufacturing workers for the 21st century.

Formerly she was assistant secretary of Labor for Employment and Training. Nominated by President George W. Bush and confirmed by the U.S. Senate in 2001, she was responsible for managing a $10 billion investment in the nation's workforce. She created and implemented regional economic development initiatives in 39 regions across the nation during her tenure, using talent development strategies to drive competitive advantage for America's businesses. Her responsibilities included implementation of Trade Adjustment Assistance for displaced workers, alternative educational pathways for the nation's youth, the permanent and temporary foreign labor certification programs for employment-based immigration, the national apprenticeship program, and workforce development programs nationwide. She created and led presidential initiatives to align education, economic development, and workforce development investments and to increase the capacity of the nation's community college system.

Of course we must wait - and we help where we can - as our country fights to "right its economic ship." But as we wait, business goes forward with all the residual problems that plague us. For example, we have to continue to adjust to the challenge of competing in the world market. We have come to understand that globalization means that we compete with everyone from everywhere, for everything - all the time.

Let's first agree that some of what drives our current situation is a lack of national confidence and some fear - driven by the failure of some of our most venerated institutions. The unimaginable disappearance of old established companies and financial institutions has stunned us and is probably driving some to question how we run our businesses and prepare our workforce. We remember the words of Franklin Delano Roosevelt when he addressed the nation following the Great Depression: "let me assert my firm belief that the only thing we have to fear is fear itself -- nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance." He was essentially saying, if we can't shake our pessimistic economic outlook, it will be tough to turn things around. Perhaps - along the lines of FDR's suggestion for the nation in the 1930s - we should remind ourselves of our strengths - specifically manufacturing strengths.

First, manufacturing remains - today- the bedrock of American business. Upon its shoulders we became the world's leading economic power. At this moment we remain the world's number one manufacturer. Our 286,000 manufacturers provide more than 18.8 million jobs: 13.2 million jobs directly within manufacturing and 5.6 million more jobs in support sectors.

We also continue to provide good family-supporting jobs with the highest average salary among the rest of the sectors overall. For a full time manufacturing worker the average compensation - including employer provided benefits - is $70,776 per-year (2007), and this is 20% above the average compensation of $59,058 in the rest of the workforce.

Manufacturing also performs more than 70 percent of private sector R&D - remaining the foundation of innovation.

Now… to be sure, I am not a "Pollyanna" when it comes to understanding what is happening to manufacturing in our country. Today, manufacturing is at a tipping-point, and the actions we take and the commitments we make - now - will write the next, or the last chapters of the great American manufacturing story. In short the following continue to be our major issues:

Click here for the complete remarks.

 

Ensuring Educated and Skilled Workers for 21st Century Careers


At the Fly-In Emily Stover DeRocco described the rationale for elevating both the status of manufacturing jobs and the skill levels to attain them. "A skilled, educated workforce is the single most critical element of innovation success - and the hardest asset to acquire. Based on a study recently conducted for The Manufacturing Institute by The Boston Consulting Group, the greatest driver for innovation performance experienced by companies, states and countries is the extent of education of the workforce."

Click here to read about The Manufacturing Institute's initiative, NAM-Endorsed Manufacturing Skills Certification System.

 

The Energy Star Program Shines a Light on Savings


Elizabeth Dutrow, Industrial Sector Partnerships, U.S. Environmental Protection Agency ENERGY STAR Program, spoke to the Wood Industry Leadership Forum which met during the Fly-In. Dutrow described ENERGY STAR, a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy that helps to save money and protect the environment through energy efficient products and practices. For industry, ENERGY STAR can help develop and refine a corporate energy management program. Over 3,000 companies have participated for a total of $16 billion saved as well as green house gas savings.

Detailed information can be found at www.Energystar.gov/industry.