Energy
Message to Congress - Energy and Climate Change policy should not harm domestic manufacturers who compete globally.
Metalworking Manufacturers Need Sound Energy Policies
Energy costs have increased rapidly over the last two years, placing U.S. manufacturers at a significant disadvantage over foreign competition. Small business owners and middle market manufacturers in particular are not able to adjust the price of their goods and services enough to match steep energy cost increases or pass along the new expenditures onto their customers. Many of the nation’s metalworking industries require energy intensive processes and, as a result, the costs of production continue to increase.
Climate change policy is not just about the environment. It is about manufacturers’ global competitiveness and international trade. It is about the costs of manufacturing in America and most importantly, it is about our jobs here at home. Addressing climate change can and should be a part of our domestic industrial policy but it should not come at the expense of our jobs and our communities.
Some proposals will increase taxes on the domestic manufacturing process, place taxes on the raw materials manufacturers need, and raise companies’ transportation fees. This is a lethal combination that adds up to disaster for small middle market manufacturers throughout the country. U.S. companies must compete globally against businesses in China or India that already have an advantage because their governments’ policies support their domestic manufacturers.
When energy costs increase – whether the form is oil, coal, natural gas, electricity or otherwise – almost all manufacturing purchasing and transportation costs escalate. Policymakers in Washington should incentivize businesses, particularly small and middle-market manufacturers, as they struggle to control energy costs. Congress needs to act now to provide relief for companies manufacturing in America.