The Motor & Equipment Manufacturers Association (MEMA), in a letter to the Obama Administration and the Congress,has outlined measures it believes will help restore access to credit and promote technology development to in turn ensure a strong domestic motor vehicle parts manufacturing industry. The need for immediate help is urgent, according to the organization; in 2009, parts manufacturers have seen 50 reported bankruptcies and an estimated 200 liquidations in the industry.
Specifically, MEMA is calling on Congress and the Administration to:
- Help assure sufficient capital for restructuring, consolidating and diversification,
- Create technology funding programs that support long-term product and manufacturing technology innovation
- Pass legislation to expand the lending capacity of the SBA 7(a) program to $5 million.
“Parts manufacturers are the nation’s largest manufacturing sector, and this industry continues to feel the severe, negative effects of bankruptcies and rapid consolidations,” said Bob McKenna, MEMA president & CEO. “This country needs a strong and stable supply base to promote the financial health of families and communities nationwide. The economic impact of this industry is felt not only by motor vehicle manufacturers but in the millions of other jobs that are dependent on motor vehicle parts manufacturers.
“The magnitude of the nation’s job loss cannot be rectified without addressing the needs of supplier industry,” he noted. “Without access to credit, loans, grants, and other programs that promote technology development, domestic parts manufacturing will be severely limited, and products to advance the goal of a new, national green economy will quickly be filled by competitors outside our borders.” MEMA represents motor vehicle parts suppliers, the nation’s largest manufacturing sector, employing nearly 686,000 people across the country.