There is a lot of buzz and speculation about the introduction of the cap and trade laws.  Many speculate that it will be a job killer and open up the necessity for deep cuts in manufacturing, which in turn will impact the machining industry.  Here’s a recent article that may be of interest to you.  Is your machine shop at risk?

On June 26, the House passed a cap and trade bill that is expected to dramatically increase the cost of energy. The American Clean Energy and Security Act (H.R. 2454) establishes an economy-wide cap on carbon emissions and creates emissions credits. Companies would then buy and sell credits to emit more carbon. The goal is to force the economy to use renewable energy sources by increasing the cost of traditional sources. Many of the alternative sources have yet to be invented or discovered.

Manufacturers are concerned about the impact of skyrocketing energy prices in America. Many fear that the energy tax would force companies to outsource work to low-cost Asian countries such as China and India.

NTMA/PMA One Voice lobbied aggressively to prevent the passage of cap and trade, however, it passed by a narrow margin, with more than 40 Democrats voting against the bill. To see how members of Congress voted on this legislation, click here.

The Senate is expected to consider cap and trade this summer. One Voice will continue to lobby against this job-killing legislation. You can tell your Senators to vote against cap and trade by clicking here.

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On the average, there are 2,000 to 5,000 new government contracting opportunities
available each day in all industry categories.
A Small Business Set-Aside Program (SBSA) was developed to help assure that small
businesses are awarded a fair proportion of government contracts by reserving
certain government purchases exclusively for participation by small business
concerns.
Acquisitions of supplies or services that has an anticipated dollar value exceeding
$3000, but not over $100,000 is automatically reserved exclusively for small
businesses (This is a Federal Law) and shall be set aside for obtaining offers from
two or more responsible small businesses that are competitive in terms of market
prices, quality, and delivery. If the contracting officer receives only one acceptable
offer from a responsible small business in response to a set-aside, the contracting
officer should make an award to that firm.
Program 8(a) contracts awarded in Fiscal Year 2004 totaled over 5.3 million.
America’s 9.1 million women-owned businesses employ 27.5 million people and
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Ph: (800) 234-3035
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F.C.O. assists small business in completing the required registration process,
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Specialists are available to answer your questions.
FEDERAL CONTRACTING ONLINE
DUNS: 786847892
Cage Code: 4QAB5
Ph: (800) 234-3035
Fax: (727) 815-1140
E-mail: info@federalcontractingonline.com
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Agency For International Development
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Department of Army
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The following ads are 2 pages:
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you by any media including but not limited to mail, email, telephone or fax.
You may at any time revoke this permission by calling 800-234-3035
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Contact: John Smith • Phone: 555-555-5553 • Fax: 555-555-5555
Email: info@aaaades.com Website: www.aaaades.com
Cage Code: 33333 DUNS: 123456789
Bridging The Gap Between Government And Small Business
Keeping your company and product information current is important to buyers. Therefore, if there are any changes in your
company information, please feel free to call us with the changes. We will update them as soon as possible. Also, we
may contact you with other items of interest. Completing our listing application implies specific permission to contact
you by any media including but not limited to mail, email, telephone or fax.
You may at any time revoke this permission by calling 800-234-3035
Visit our website @ www.FEDERALCONTRACTINGONLINE.com
6611 US Highway 19, Suite 510 • New Port Richey, FL 34652

There is much debate swarming in virtual every circle concerning the bailout of big auto.  Some feel its time for business attrition and natural selection to deem the big auto dinosaur no longer suitable for life in the business evolutionary life change. There is a reason for survival of the fittest – let nature take its course. It served its purpose.  Have we not evolved passed big union bosses, endless inefficiencies of middle management and a business model lost in port and perks?  Have we not learned a lesson from Bethlehem Steel?  The company imploded from within.  The world changed, they didn’t evolve – extinction was inevitable.

On the other hand, many feel that a government bailout is necessary for the good of the country.  Not just a hand out with no strings, but a bail out, complete with a swift kick in the corporate butt for their complete irresponsibility.  Believe it or not the government can help in ways that are responsible.  As long as this administration understands they can’t mandate day to day operations or have in had in the lasted contour aesthetics of a corvette, it can work.  The government can should provide accountability and set standards that will make them squeal.  When Kennedy challenged US industry to put a man and the moon by the end or the decade, it was deemed impossible by many at the time.  Necessity was the mother of invention.  His vision became reality. The auto industry finds itself in a similar situation and to succeed it will have to create more fuel efficient cars that are affordable.  The government must hold their feet to the fire and insist on these results.  Personally, I think this could be a great moment for big auto.  We all need to be humbled from time to time.

And for the sake of us all, I hope I’m right.  Hundreds of Tier 1 and Tier 2 supplies depend on an optimistic scenario.  Our machine shop isn’t heavily vested in the automotive industry, but many are.  We are often left out of the mix.  The news will speak of the 80,000 GM workers loosing their jobs, but neglect to mention the thousands of other jobs that will be lost if there is a collapse in big auto.  Jobs like mine and yours.

The Precision Metalforming Association (PMA) and the National Tooling & Machining Association (NTMA) have raised their voice on this issue.

“Tier 1 and Tier 2 suppliers need relief and a crucial element is for the government and courts to provide a ’safe passage’ mechanism for our tooling receivables through the Tier 1 suppliers during this bankruptcy,” said NTMA Chief Operating Officer Rob Akers. “Bankruptcy protection for GM must not be confined to guarantees for GM and its Tier 1 suppliers. The fate of tens of thousands of workers spread throughout the supply chain – and throughout thousands of communities across the United States – depends on fair treatment by GM, the U.S. government and bankruptcy courts.”

“Tier 1 and Tier 2 suppliers need relief and a crucial element is for the government and courts to provide a ’safe passage’ mechanism for our tooling receivables through the Tier 1 suppliers during this bankruptcy,” said NTMA Chief Operating Officer Rob Akers. “Bankruptcy protection for GM must not be confined to guarantees for GM and its Tier 1 suppliers. The fate of tens of thousands of workers spread throughout the supply chain – and throughout thousands of communities across the United States – depends on fair treatment by GM, the U.S. government and bankruptcy courts.”

“The federal government has spent hundreds of billions of dollars extending support to financial institutions, General Motors, Chrysler and large Tier 1 companies, but the benefits have yet to trickle down to the Tier 2 and Tier 3 supply chain companies,” said PMA President William Gaskin. “We are not asking for a bailout. We are only asking that the government and the courts ensure that GM and its Tier 1 suppliers pay the money that is owed to Tier 2 and 3 companies.

Machine shops and small size manufactures are vital links for the recovery plan of GM.  They cannot succeed without us.  “A recovery plan for GM is simply not viable unless the entire automotive supply chain not just the Big 3 and the Tier 1 supplier’s is taken into account.” said Gaskin.

I don’t think anyone in the precision machining industry is looking for a “hand out,” but a well planned and implemented “hand up” is not only appropriate but the right thing to do.  Don’t’ you think?