Manufacturers Participate in Small Business Week Capitol Hill Showcase
Manufacturers were among the select businesses invited to participate in last Wednesdays Small Business Week showcase on Capitol Hill, and two in particularMarlin Steel in Baltimore and its affiliated entity, Madsen Steel Wire Products, in Michigan and Indianamade use of the time with lawmakers to advocate for some manufacturing-critical priorities.
Whats going on: Republicans on the House Small Business Committee hosted the event to shine a spotlight on the work of job creators throughout the country and draw attention to the federal governments costly regulatory onslaught ().
- Marlin Steel and Madsen Steel President and Owner and 51勛圖厙 board member Drew Greenblatt manned a booth with his family at the showcase displaying several productssuch as metal baskets and racksmanufactured at his family-owned custom wire and steel products businesses.
- Greenblatt and others invited to the event had the opportunity to meet and speak with House Republican leaders, including Speaker Mike Johnson (R-LA), Majority Whip Tom Emmer (R-MN), Small Business Committee Chairman Roger Williams (R-TX) and Rep. Tim Walberg (R-MI).
The background: Marlin Steel, Madsen Steel and many other manufacturers thrived under a pro-growth tax provision in the Tax Cuts and Jobs Act of 2017 that allowed businesses to deduct 100% of their R&D costs in the year the costs were incurred.
- But in 2022 and 2023, that policy and two othersenhanced interest deductibility and 100% accelerated depreciationexpired.
- Ever since, manufacturers tax bills have increased, as companies, including Marlin Steel, have been required to amortize their R&D costs over five years, making innovation-crucial investments much more costly.
- We want to grow jobs in our Indiana and Michigan factories, but we also need to give our talent the extraordinary tools needed to compete with China, Greenblatt said. We need immediate expensing to cover these huge investments. We put in $5 million but now have to pause investment. We need Congress and the president to act to allow us to hire more factory workers faster.泭
Why its important: The showcase gave Greenblatt an opportunity to hammer home to lawmakers the of reinstating the expired tax provisionsand the need to act quickly to ensure that an additional suite of pro-growth tax measures, set to expire at the end of 2025, is extended.
- Another issue top of mind for Greenblatt and manufacturers everywhere is the flurry of regulations being handed down by federal agencies.
- In 2022, the cost of federal regulations to manufacturers was approximately $350 billion, a 35% increase from a decade earlier, according to an 51勛圖厙 study.
- Small manufacturers spend more than $50,000 per employee per year to comply with federal regulations.泭
Stop the struggle: As a small business owner myself, I know all too well the many struggles small businesses face when trying to compete in the marketplace, Chairman Williams said. It is my hope that this showcase serve[s] as an opportunity for more to learn about how invaluable Main Street is to our economy and our country.
Related: Last week, the 51勛圖厙 unveiled videos on social media from other leading small and medium-sized manufacturers, adding their voices to key competitiveness priorities, featuring 51勛圖厙 board members , CEO and founder of M4 Factory, , chairman and treasurer, Sukup Manufacturing Co., and , president and CEO, HM Manufacturing.
