THIS WEEK'S HEADLINES

Dan Pilcher

CACI Executive Vice President

and Chief Operating Officer

E-Mail: dpilcher@COchamber.com

www.COchamber.com

Friday, October 5, 2012

CACI Defends Colorado Manufacturers Who Expand Operations Abroad

Unless someone has been living under a rock this year, most people are aware that charges and countercharges fly fast and furious during the election season.

In 2012, for months criticism has been leveled at American manufacturers that have established operations abroad—either acquiring foreign companies or building their own manufacturing plants--for allegedly “shipping jobs overseas” and costing American workers their jobs.

“Stop exporting jobs overseas” is one of the political shout-outs from the AFL-CIO, for example.

This anti-business theme, which has been going on for decades, erupts during the election cycle, both at the state and national levels.  The 2012 election has featured plenty of charges that manufacturers outsource jobs abroad, harming American workers and that Federal and state governments should adopt policies to restrict and punish such behavior.

Moreover, such attacks on manufacturers are not limited to election-year, political opportunities.  For example, in Colorado, during most legislative sessions in recent memory, CACI has consistently opposed bills that have sought to punish companies that have operations abroad and that are doing business---or seek to do business--with the State of Colorado, usually through “purchasing preferences” provisions that favor companies that do not have operations abroad.

International trade, however, is critically important to Colorado as the business and economic development communities know well.  Last year, for example, Colorado exported $7.3 billion in goods and services, according to the U.S. Census Bureau.  The flip side of Colorado’s international trade story is foreign direct investment.  According to the U.S. Bureau of Economic Analysis, foreign-controlled companies employ 85,400 workers in Colorado.  These companies have invested about $30.5 billion in Colorado.

At the national level, the economic benefit to the U.S. economy of the operations of American companies abroad is clear.  According to the National Association of Manufacturing (NAM):

• With more than 95 percent of the world’s customers outside the United States, American companies establish operations abroad in order to penetrate foreign markets and add new customers.

• American companies with overseas operations support and create U.S. jobs.  An estimated 22 million people in the United States—including more than 53 percent of all manufacturing workers—are employed by companies with operations abroad.

Colorado’s most esteemed economist, Tucker Hart Adams, in September told the CACI Board of directors “the two most important factors driving manufacturing are increased productivity and globalization.  As low-value manufacturing moves overseas, those countries will increase their demand for U.S. products.”

CACI was created in the mid-1960s when Colorado’s business leaders merged the Colorado Chamber of Commerce with the Colorado Manufacturing Association.  Since then, CACI has consistently supported governmental policies designed to strengthen the manufacturing sector.

For example, CACI’s Colorado Manufacturing Initiative, launched earlier this year, is working with manufacturers to make it clear to state and federal policymakers that manufacturing is a critical foundation of the state’s economy and that its “multiplier effect” benefits Colorado through its purchases from the business-services sector (legal, marketing, health care, research, human resources, accounting, public relations, communications, financial services, etc.)

Overall, the Colorado Manufacturing Initiative offers focused support to CACI-member manufacturers and to the state’s manufacturing community.  Through the Initiative’s Manufacturer’s Leadership Group and CACI’s various policy councils, the Initiative suggests and supports specific policies and legislation that will strengthen manufacturing.  The Initiative also fosters collaboration, communication and business-to-business relationships between manufacturers through Initiative-sponsored events.

For more information on the Colorado Manufacturing Initiative, contact Angie Knepell, Program Manager, at 303.866.9657.

Five Days Away: CACI’s 47th Annual Meeting Luncheon

CACI’s 47th Annual Meeting Luncheon is set for next Wednesday, October 10^th.  The Luncheon’s keynote speaker will be Tim Pawlenty, former Governor of Minnesota and recently named CEO of the Financial Services Roundtable, who also served in the Minnesota legislature.

The Luncheon will be held at the Seawell Grand Ballroom at the Denver Center for the Performing Arts.  Registration will begin at 11:30 a.m., and the Luncheon program will begin at 12:00 noon and end at 1:30 p.m.

Using themes of his recent book, Courage to Stand, Governor Pawlenty will share his reflections on leadership, public service and public policy.  Drawing on his experiences as Minnesota’s governor, he will address the impact of government regulation on business, the importance of the business community to economic recovery and how government actions and regulation can restrict the ability of businesses to grow and survive.

Gold Sponsor:

Silver Sponsors:

For more information, contact Tricia Smith, CACI Vice President, Events and Political Fundraising, at 303.866.9629.

CACI Visits EVRAZ Rocky Mountain Steel in Pueblo

On Tuesday, CACI-member EVRAZ Rocky Mountain Steel hosted a visit to its Pueblo Mill by CACI Federal Affairs Representative Susan McGurkin and Colorado Manufacturing Initiative Program Manager, Angie Knepell.

Ben Lutze, Vice President and General Manager of EVRAZ’s Long Products Group, met with the pair to discuss federal and state affairs, energy and environment topics, and workforce development.  Angie and Susan were then given a tour of the plant.

A long-time, strong member of the CACI, the Pueblo steel mill has enjoyed a 140-year history and currently employees 1,200 workers.

Ben Lutze of EVRAZ and Sue McGurkin of CACI

EVRAZ North America is a leading steel manufacturer built on the pedigree of successful steel companies: Oregon Steel, Rocky Mountain Steel, Claymont Steel and IPSCO.

EVRAZ North America produces more than five million tons annually of flat, long, and tubular steel products for major markets including infrastructure, defense, energy and rail.

Federal Issues

The following was written by Susan McGurkin, CACI Federal Policy Representative, who can be reached at 303.966.9641.

Pro-Business Voter Information Released by U.S. Chamber of Commerce and National Association of Manufacturers

As part of CACI’s effort to keep its members informed on key sources of election information, please see the two announcements below from the U.S. Chamber of Commerce and the National Association of Manufacturers.  CACI is affiliated with both national business organizations.

NAM and the U.S. Chamber provide new Websites that contain important information regarding Federal candidates and their positions relative to jobs and the economy.

U.S. Chamber of Commerce

On Monday, the U.S. Chamber launched www.VoteForJobs2012.com, a new digital platform to help educate and mobilize voters.  The Website provides a comprehensive source of political information, including a breakdown of key House and Senate races and comparisons of the candidates’ records on issues critical to expanding the economy and creating jobs. This effort is a part of the U.S. Chamber’s largest voter-education campaign in its 100-year history.

“Voting is a right and a responsibility, and Americans need to know where the candidates stand,” said Thomas J. Donohue, U.S. Chamber President and CEO, “We are working harder than ever to make sure voters in every state, district, and precinct know which candidates have a record of fighting for pro-growth policies that will revitalize our economy and put Americans back to work.”

“Vote For Jobs” features such voter resources as registration forms, absentee ballots and polling-place locators to encourage the business community to participate in the elections. In addition to “Get-Out-The-Vote” (GOTV) efforts, the Web site features the most recent election and polling information, the U.S. Chamber’s “How They Voted” scorecards for elected officials, and details the Chamber’s pro-growth policy positions.

NAM

The NAM members’ “Key Vote Advisory Committee” (KVAC) completed its key-vote selection process and determined the recipients of the NAM Award for Manufacturing Legislative Excellence.  The NAM Award is given to those members of the U.S. House and Senate who have earned a 70 percent or higher rating on key manufacturing votes as recorded in the 2011-2012 NAM’s 112th Congressional Voting Record.  This award is not a political endorsement, but rather an opportunity for manufacturers to positively recognize those legislators who consistently support NAM’s agenda.

Four members of Colorado’s congressional delegation received the award: Congressmen Mike Coffman, Doug Lamborn, Cory Gardner and Scott Tipton.

To view a list of award recipients, visit www.nam.org/votingrecord.  There are 296 recipients of the award: 48 in the Senate and 248 in the House.  The voting record was based on 27 key votes in the House and 37 key votes in the Senate.  A listing of the key votes and the voting record for all members of Congress can also be found on the Web site.