Pay More Attention

Last month, we discussed economic stimuli before the U.S. Congress. You were encouraged to "pay attention" and get involved in the debate through your representative(s).

Wellsir, another legislative matter looms for manufacturing, and its potential for long-term rewards (havoc?) might eclipse those discussed last month:

It's the 2-year extension of the Internet Tax Moratorium that was passed at the end of 2001.

"What's the problem, A.J.," you ask, "since they extended the moratorium for 2 years? Weve got time."

Well, as is usually the case, the debates surrounding anything involving the Internet—including behavior studies, tools and taxes—focus mostly on the most obvious (retail and consumer models, Internet access taxes, and so on), and ignore the unique business and purchasing methods of metalworking and manufacturing concerns.

What will be the effect on buying inserts or coolant online, and how will taxes be calculated for that sale, once the moratorium ends? What if you're in California, and a supplier is in Michigan? Or Taiwan?

Try calculating (or collecting on) that one.

Or, how will the parts and services you provide be addressed once the moratorium lapses at the end of 2003? Or, what about the services you buy? From different states or jurisdictions?

Don't think legislation can't capitalize on this confusion and significantly change tax rates for unique (such as manufacturing-related) transactions.

The fact is, the 2-year moratorium isn't breathing room—it's an opportunity for the manufacturing community to apply collective influence.

Use every bit of those 2 years you can. Pay attention now. Visit www.house.gov and www.senate.gov, and teach these people about what you do, why you're different, and how to consider manufacturing—fairly—in this legislation.

It's rarely only about what you make; it's how you make it, what you know, and how capable you are of making your products better. Marathon Mold (www.marathonmold.com) does a fantastic job of explaining the "whats, whys and hows" with its site and, by doing so, set it up effectively for growth. Areas are established to portray the company's capabilities in building prototype, pre-production and production molds, as well as its expertise in mold design, moldflow analysis and other ancillary operations.