2006 Legislative Summit: MEMA Members Discuss Issues with Members of Congress

Last week in Washington, D.C., the Motor & Equipment Manufacturers Association (MEMA) held its annual legislative summit. The association’s aim was to lobby in support of various issues that have heavily impacted the aftermarket and manufacturing industry. The two-day event began with a supplier fair, which featured manufacturers such as Delphi, Federal-Mogul and Bendix. The fair familiarized congressional officials with the companies’ products and upcoming initiatives. The opening day was also filled with strategic preparation for the next day’s congressional meetings. As MEMA President and CEO Robert McKenna explained, the association wanted to make the meetings more efficient than last year to allow members to thoroughly present their issues to members of Congress.

MEMA President and CEO Bob McKenna welcomes members to Washington.

by Michael V. Freeze
Managing Editor, Counterman

WASHINGTON, DC — Last week in Washington, D.C., the Motor & Equipment Manufacturers Association (MEMA) held its annual legislative summit. The association’s aim was to lobby in support of various issues that have heavily impacted the aftermarket and manufacturing industry.

The two-day event began with a supplier fair, which featured manufacturers such as Delphi, Federal-Mogul and Bendix. The fair familiarized congressional officials with the companies’ products and upcoming initiatives.

The opening day was also filled with strategic preparation for the next day’s congressional meetings. As MEMA President and CEO Robert McKenna explained, the association wanted to make the meetings more efficient than last year to allow members to thoroughly present their issues to members of Congress.

“Instead of putting teams of members together who were in the same market [aftermarket, for example], we broke the teams down into where they were located geographically,” said McKenna.

Although there were several issues to discuss during the summit, the following issues presented the most concern to MEMA members who attended the summit:

Health Care Reform:

Those in manufacturing, and most other industries for that matter, have been feeling the pinch when it comes to health care costs. Some companies are struggling to find ways to provide affordable health insurance for their employees. The association supports many areas of reform like improvements in electronic data sharing that would create less paperwork, expanding health insurance accounts and reducing the costs associated with chronic conditions such as heart disease, diabetes.

Raw Materials Costs and Availability:

The association’s members rely heavily on raw materials to compete in the global marketplace. The combination of rising material costs and unfavorable government policies have made it difficult for manufacturers to remedy the ongoing challenges of pricing and competition, especially from abroad. Legislation has been introduced by Rep. Joe Knollenberg (R-MI) to amend current restrictions giving the U.S. manufacturer — the industrial consumer — a better standing in reviews conducted by the Department of Commerce and the International Trade Commission.

Vehicle Technology:

Automotive suppliers spend billions of dollars every year on research and development of products to improve vehicle safety and performance. Although technology has advanced throughout the years, road fatalities in 2005 increased from the previous year. MEMA is supporting legislation to provide U.S. consumers a tax credit when purchasing a vehicle with safety equipment installed. The association is also in favor of tax incentives for manufacturers that create facilities to build more energy-efficient vehicles and components.

During the second day of the summit, keynote speaker Sen. Carl Levin (D-MI) expressed his concern for the nation’s manufacturers. He mentioned that U.S. manufacturers need to have a better positioning in the global marketplace, now more than ever. The Michigan senator also spoke of the importance of manufacturing jobs to the American economy and the direct correlation between the number of manufacturing jobs in the U.S. and the financial health of the average U.S. family.

Sen. Levin speaks to MEMA Members at the 2006 Legislative Summit in DC.

“When manufacturing jobs go down, so does the average family’s income. The stakes are huge, obviously [for the manufacturer], but also in terms of American wealth, American economy and American jobs,” said Sen. Levin.

As the summit neared its close, MEMA presented its annual Joseph M. Magliochetti Industry Champion award to Rep. Dave Camp (R-MI). The award is named after the late Joseph M. Magliochetti, who served as the chairman and CEO of Dana Corp. until his death in 2003. The award was created to recognize those who have worked diligently on behalf of automotive parts manufacturers in the U.S.

Rep. Camp is on the House Ways and Means Committee and is a member of its Health, Human Resources and Select Revenue Measures subcommittees. He has been instrumental in introducing a provision that provides tax incentives for the purchase of alternative fuel vehicles for the latest energy bill that was signed into law in last year. Rep. Camp also championed the issues of raw materials and tax credits for research and development costs.

“We [in Washington, D.C.] all got the wake-up call about manufacturing and we know we certainly have a lot of challenges in front of us,” said Rep. Camp while accepting the award. “I urge all of you to remain involved, because if you’re not, things will still get done but maybe not to your liking. I’m looking forward to working with you because we have a lot to accomplish. If you look around the world today, things are rapidly changing. We have to be in the game and be aggressive about it.”

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