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What kind of assistance is there for manufacturers?The manufacturing industry has seen some pretty hard times in the last decade.When manufacturers struggle, many other sectors of the economy struggle as well.In 2001 there was a significant recession that hit the manufacturing industry particularly hard.Since then, recovery from that recession has been slow in coming. The industry of manufacturing is different than other industries in the America's manufacturing companies are competing not only with each other but with a global market.Future growth and even national security depends largely on the success of American manufacturing.
When the average business experiences recessions or other hits to their businesses they must raise prices in order to compensate for their losses while still making a profit.Manufacturers to not have the luxury of being able to raise their prices as readily because if they do someone else (possibly not an American company) will take their place, making U.S. jobs even harder to come by and weakening our own abilities to manufacture goods that may be vital in wartime. The government does not want to see this resource weaken and has provided financial assistance to manufacturers in the past.However, as was previously mentioned, manufacturers are just coming out of a hard financial time as state and federal budget cuts over the past four years have eliminated nearly a third of the manufacturing staff in the state of Georgia alone (a leading state in manufacturing).Cost advantages were missed during this time because of insufficient staffing and resources. Of course the distribution of state and federal budget money is always highly debated and although the manufacturing industry is not as strong as it should be there have been improvements.Over the past few years Congress has continues to push the advocacy of American manufacturers and has granted fees to aid them.The Manufacturing Extension Partnership is one example of a program that has been widely praised by manufacturers and is supported strongly by Congress.This program pushes for manufacturing jobs to remain in the United States. Minimizing investments and maximizing results:Manufacturing companies pay only 50% of a project, but benefit fully from the results. Improvement strategies are no longer delayed by financial constraints.Progress and production are more efficient. Cash flow advantages: Funds given through this program do not need to be reimbursed.As long as the manufacturing company pays for their half of the project costs, TAA covers the remainder. The assistance programs mentioned above are by no means all of the programs that are available to manufacturers.Other government and state benefits exists as well as aid that comes from private non-profit and for-profit organizations. |
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