Friday
Oct092009
Manufacturing Industry Needs Credit Now Say Experts
Friday, October 9, 2009 at 2:33PM
By Leah Valencia, University of New Mexico/Talk Radio News Service
Several industry experts called on Congress to help restore credit to manufacturers in a Senate Banking, Housing and Urban Affairs Committee hearing Friday.
A few who testified said that current credit limits typically do not cover the amount that suppliers need to invest in employees, equipment and raw materials.
“In our industry, manufacturers are expected to deliver products just in time. Any delays can cause significant disruption in our nation's critical supply chain...thus stifling economic growth and risking national security,” said Robert Kiener, Director of Member Outreach at the Precision Machined Products Association. “If our customers can not acquire the products they need, due to the credit crisis, they will source from overseas and these lost jobs will never come back to the United States.”
The testimonies focused on the need for long-term programs that support manufacturing, technology and innovation initiatives in the U.S. The experts outlined the increased problems manufacturers have had in gaining access to greater capital during the current economic recession.
“The bank[s] need assurances that the federal regulators will not come down on them for making sound lending decisions, a return to the sound lending decisions will allow for available and affordable credit for manufacturers,” Kiener said. “I think it is crucial to the recovery of the economy to allow renewed capital expenditures... and in the end, increase hiring and employment to get things back and rolling.”
A Senate subcommittee will submit questions to the U.S. Department of Treasury and U.S. Department of Commerce in a continued effort to evaluate and resolve this issue.
Several industry experts called on Congress to help restore credit to manufacturers in a Senate Banking, Housing and Urban Affairs Committee hearing Friday.
A few who testified said that current credit limits typically do not cover the amount that suppliers need to invest in employees, equipment and raw materials.
“In our industry, manufacturers are expected to deliver products just in time. Any delays can cause significant disruption in our nation's critical supply chain...thus stifling economic growth and risking national security,” said Robert Kiener, Director of Member Outreach at the Precision Machined Products Association. “If our customers can not acquire the products they need, due to the credit crisis, they will source from overseas and these lost jobs will never come back to the United States.”
The testimonies focused on the need for long-term programs that support manufacturing, technology and innovation initiatives in the U.S. The experts outlined the increased problems manufacturers have had in gaining access to greater capital during the current economic recession.
“The bank[s] need assurances that the federal regulators will not come down on them for making sound lending decisions, a return to the sound lending decisions will allow for available and affordable credit for manufacturers,” Kiener said. “I think it is crucial to the recovery of the economy to allow renewed capital expenditures... and in the end, increase hiring and employment to get things back and rolling.”
A Senate subcommittee will submit questions to the U.S. Department of Treasury and U.S. Department of Commerce in a continued effort to evaluate and resolve this issue.
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