Manufacturers in America continue to face strong headwinds in trying to grow and create jobs. Despite this challenge, many of us are committed to thriving in a competitive global economy and conquering the obstacles we face day in and day out just to remain in business. Now that the elections are over and Congress is back in Washington, manufacturers across the nation are hoping our lawmakers will work with us to help get our economy back on track.
A great place to start would be passing a package of on-again/off-again tax provisions known as "tax extenders." This group of provisions, most of which expired at the end of 2013, includes investment incentives for manufacturers of all sizes. When these provisions are turned "on," they help companies like mine — Marlin Steel Wire Products in Baltimore — make the kinds of investments that allow us to hire more Marylanders for good-paying jobs.
These incentives are nothing new. Indeed, they were on the books for many years until they expired late last year. Essentially, these incentives enable businesses to immediately write off capital investments, improving cash flow and allowing manufacturers to invest in cutting-edge equipment and technologies. Because of these incentives, my business became the first company in the United States to purchase a revolutionary automated welding system. With this technology, Marlin's employees work with the finest equipment in the world, allowing us to make better products faster.
It's these kinds of innovations that lead to more customers and more orders, protecting current jobs and giving us the opportunity to expand our operations. Without these tax incentives, a firm our size simply wouldn't be able to make these types of major capital investments. In effect, the failure of Congress to extend these incentives amounts to a tax increase on businesses of all sizes at a time when our government should be encouraging, not discouraging, investments in the future of our manufacturing economy.
Unfortunately, the current uncertainty about these provisions has affected businesses small and large across the country, and fewer companies are making new capital investments. A survey released by the National Association of Manufacturers and IndustryWeek confirmed that the expiration of the on-again/off-again tax incentives has forced companies to postpone planned capital investments.
Earlier this year, the U.S. House of Representatives passed two bills to make these incentives permanent. Unfortunately, most of Maryland's delegation voted against them, and they never saw the light of day in the Senate. Instead, the Senate voted as one of its final actions of the year to renew them for 2014 — meaning businesses will be able to make decisions based on the certainty that these rules will be in effect for less than three weeks.
This is no time to be playing politics with jobs. In fact, this shouldn't even be a political issue. Marlin Steel wants to grow jobs in Baltimore City. Giving us more tools will enable us to buy more robots and automation so we can hire more talented employees to run these machines. Unemployed steel workers in our city need these opportunities now. Incentivizing businesses to make capital investments by lowering taxes on those investments that lead to job growth is simply smart policy that benefits businesses and their workers. Congress must take a serious look at the role manufacturing plays in communities across America and find a way to make these tax incentives permanent. We sincerely hope that Maryland's congressional delegation will play a leading role in this debate and help businesses like ours reach our full potential.
Drew Greenblatt is the president and owner of Marlin Steel Wire Products, LLC. He is a member of the National Association of Manufacturers' executive committee. His email DGreenblatt@marlinsteel.com.