|
|
Why Was Trade Adjustment Assistance (TAA) for Firms Created?
With the soaring U.S. trade deficit, small and medium-sized manufacturers face distinct challenges. Unlike many of their foreign counterparts, U.S. manufacturers must provide competitive wages, healthcare benefits, and comply with environmental laws and other regulatory issues, which all add to overhead and labor costs relative to their foreign competitors. These competitive pressures and increased imports have led to sales and employment declines for many U.S. manufacturers.
- Manufacturing peaked as a percentage of total employment in 1947 at 35%
- Since January 2001, 3.3 million manufacturing jobs have been lost, while productivity (output per hour) increased 21%
- The overall U.S. trade deficit has grown dramatically since 1997 from $107 billion to $764 billion in 2006
- For the full year 2006, the manufacturing trade deficit alone surpassed $526 billion.
TAA Works
The Urban Institute released a comprehensive study of the TAA program concluding that it was highly successful, producing more resilient firms and increasing sales and employment. It was also estimated that every federal dollar invested in this program offered a return on taxpayer's investment of over 300%.
Specifically, the study found that 5 years after certification TAA-assisted companies had:
- Survived at a higher rate (83.8%) than unassisted companies (70.7%)
- Added 4.2% more employees, while unassisted companies registered employment losses of 5.3%
- Demonstrated stronger sales growth (33.9%) compared with unassisted firms (16.2%)
TAA Helps U.S. Manufacturers
Level the Playing Field
In order to level the playing field against low-cost overseas competition, U.S. manufacturers must invest in new technology, efficiency upgrades, training and education, cost-control programs and new product development. Trade Adjustment Assistance (TAA) offers a non-confrontational alternative to more confrontational trade remedies such as trade restrictions, quotas, protectionism and embargos.
Increase Sales and Jobs
The Trade Adjustment Assistance (TAA) for Firms federal assistance program was authorized by the Trade Act of 1974 in an effort to alleviate the adverse effects on workers, employers and communities resulting from increases in foreign imports. Sponsored by the U.S. Department of Commerce, it pays a portion of consultants' or industry-specific experts' assistance for helping manufacturers increase sales and production, as well as promote job growth and retention.
Compete Globally
Companies can apply at no charge for program benefits in order to improve business efficiency, create jobs, and effectively compete with foreign competition. Those that qualify can use the TAA program to pay for half of the total cost of consulting services.
|
In the last 10 years, MATAAC has granted more than $9 million to over 200 manufacturers throughout the mid-Atlantic region. A recent annual survey of firms being assisted reported an aggregate increase in sales of 24% and sales per employee of 45% were reported.
Click Here to learn about what TAA funds can do for your firm.
Working with MATAAC has the potential to enable your firm to:
• Free up company resources for other expenses not covered by TAA, such as purchasing new equipment
• Realize faster bottom-line benefits by expediting important projects that would have been delayed due to financial or manpower constraints
• Access help you wouldn't otherwise have been able to obtain
• Upgrade basic business processes
• Decrease internal, direct product and/or overhead costs
• Improve business performance, strategic position and profits
• Increase value-added sophistication and quality of products and services
• Identify new markets and develop new offerings
• Increase and/or stabilize manufacturing employment and/or revenues
• Compete more effectively in a global economy
|
