What advice would you offer President Obama and Congress on how to stimulate the manufacturing sector and lubricant sales?

TLT Sounding Board March 2010

 

Based on their insightful answers, you might think the 120 TLT readers answering this month’s questions were economists, not lubricant suppliers. The No. 1 answer cited by members was cutting taxes, either for corporations, individuals or both. Several readers suggested using taxes to reward positive corporate behavior such as upgrading equipment and punish negative behavior such as outsourcing jobs. Reducing government regulation was often cited, and many readers said they believe government is the cause of, not the solution to, many economic problems. Other suggestions included more funding for public works projects, developing a consistent energy policy that includes alternate fuels and leveling the playing field between the U.S. and its trading partners.

Develop meaningful public works projects. Enforce federal mandates on such things as alternate fuel sources.

Our country should look closely at allowing goods that have been manufactured in countries where (1.) employees are paid slave wages, (2.) there are little to no health and safety standards (workers are considered disposable) and (3.) the environment is treated as a waste dump. These are the factors that have created the problems in our manufacturing sector.

Address protectionist legislation being put in place in the European Union (such as REACH) and China.

Cut taxes, utilize our own crude oil and gas reserves, increase cost initiatives for small business.

Get the government out of the controlling-the-economy business. Reduce taxes, and stop spending money on bogus stimulus programs. 

Subsidize robotic manufacturing plants.

North American auto manufacturers must have an equal footing selling in all countries as the imports have in selling here!



Create manufacturing tax incentives and stop subsidizing foreign manufacturing.

U.S. manufacturing cannot currently compete with foreign manufacturers due to high labor costs. It is or will be a reversal of fortunes for the haves and have nots.

Lubricant sales can generally be broken into two groups: the first is those lubes used in equipment overhaul or during a plant shutdown, and the second is those used routinely during production. Typically in a downturn we see more sales of the former and less sales of the latter. Perhaps one of the better ways to stimulate the manufacturing sector is to provide an incentive to improve or upgrade equipment, particularly if it is labor-intensive during a downturn so that as the business comes back we can be in a better position to grow and maintain any competitive edge we may be able to gain through process or facility improvement.

Reduce the corporate and business tax rates. Drill for oil and gas on and off shore in the U.S., including the Arctic National Wildlife Reserve.

Reduce governmental regulations, lower or eliminate corporate income taxes and reduce the size and cost of the federal government.

Create a demand for green products such as biodegradable lubricant fluids. Executive order is a way to go. This will stir up the market in this sector and result in creating new biodegradable base fluids and additives and complete competing formulations.

Mr. President, millions of dollars are wasted every year due to (1.) misspent funds purchasing the cheapest vs. the best value lubricants, (2.) premature equipment failure caused by poor lubrication practices, (3.) energy loss due to friction and wear, (4.) lost productivity due to equipment downtime and (5.) loss due to environmental issues. What tax incentives would you offer to industry to improve its ways? In addition, what funding will you put into training our youth to encourage them to follow in the footsteps of those in the demographic group about to retire?

In an effort to control the price of crude oil, let us use the oil that is in the U.S. and don’t sell any oil to other countries. When the price of crude drops, everything else will follow.

More tax incentives for domestic production.

Get serious about developing all our energy sources. Five of the last six recessions have come about due to high energy costs. Then remove the speculative trading of round-trip energy contracts. Estimates are that speculators add up to $1/gallon to the price of refined fuels. This may add as much as $600 billion to annual energy costs. If this overpayment can be redirected back to the middle class, we could work our way out of this mess in five years.

Lower taxes and stop spending money the government does not have.

Offer incentives for buying U.S. products.

Keep taxes low and forget cap and trade legislation.

Invest stimulus money on internal infrastructure programs only, not politically motivated handouts to special interests.

What the government needs to do is get out of the way!

Which statement best describes your feeling on the state of lubricant sales today?
They’ve turned around and we are definitely heading in the right direction. 4%
They’re a little better than a year ago but nothing to write home about. 50%
They’re about the same as they were a year ago—unfortunately. 27%
They’re a little worse than a year ago. 14%
They’re much worse than a year ago. 5%
Based on responses from 120 TLT readers.

Lower taxes reduce the size of government, control entitlements by encouraging, not punishing, people for finding work. Lower energy costs by opening more areas to oil and gas drilling and exploration. In general, study what Ronald Reagan did to move us beyond the stagflation of the ’70s.

Create incentives to improve efficiency, reduce waste and extend the service lives of machines. This means better products.

Leave it alone; let the big companies crumble, and let better and more efficient companies rise from the rubble. Let capitalism work.

I would tell them to give money to the public so that they have dollars to spend on goods.

Suspend personal income tax for two years and then slowly re-implement 70% of the original amount over a four-year period.

Give smaller businesses bigger tax cuts and make it easier to meet credit demands for extra cash flow.

Invest in and encourage students to attend trade schools, and change tax laws to encourage long-term ownership and investment in manufacturing.

Provide export incentives and low interest rates to small businesses involved in exporting. The country cannot grow simply selling to ourselves.

Stop worrying about healthcare and fix the economy first. Additionally, before the president starts another government boondoggle of universal healthcare, he should fix the Medicare system.

Promote infrastructure construction projects that generate immediate economic activity and employment.

Stop the gross waste of resources and concentrate on strengthening our basic industrial sector.



Place a fair tax on consumption, not production.

Reduce business taxes or offer manufacturing incentives.

Apply high taxes on goods imported from Asia. Rebuild North American industry, which will eventually lead to the increase of all sales, including lubricants.

Maintain pricing levels and improve products.

Limit the number of jobs that can be outsourced from the U.S. This is not just an issue for manufacturing or employment but for national security. Where is a Patriot Act for this?

Lower taxes stop cap and trade and get out of the way of business.

Make sure the U.S. is on an even playing field when it comes to exporting our manufactured goods with foreign countries.

Support research and development first, as only new products, new skills, new knowledge will give us a sustainable advantage. Avoid supporting any industry that is just producing more of the same but cheaper, because this type of work inevitably moves to countries with lower labor costs, lower environmental criteria, etc. The key? Innovation, innovation, innovation!

Lower capital gains taxes.



What is your forecast for when the U.S. economy will begin showing significant signs of improvement?
Six months to a year 19%
1-2 years 46%
3-4 years 23%
4-5 years 6%
More than five years 6%
Based on responses from 120 TLT readers.

Someone needs to figure out how to make our goods more competitively priced in the world market. Give more incentives to corporations to keep production in the U.S. Wages, benefits and environmental costs must be corrected to make us competitive.

(1.) Cut federal and possibly state taxes on small businesses. (2.) Create an incentive for hiring and training new employees. (3.) Give companies an incentive for capital investment and include upgrades on existing equipment and facilities.

I would suggest giving tax incentives to companies that utilize U.S. raw materials and services.

Provide an incentive to train or retrain current employees such as educational funding for college degrees or vocational training in their specific trade or for becoming certified in a job-related task or duty. Pay for membership in a professional association, institute or society.

In many cases profits are going to U. S. companies that manufacture overseas. I would suggest investing in decisions that will turn that around. More manufacturing inside of the U.S. means more jobs in the U.S. and more money to be spent here as well. It’s a win-win.

Give an individual tax incentive for the purchase of automobiles and durable goods. This would then trickle through the economy to the automakers, home appliance makers, parts suppliers, steel industry, coal industry, etc. This would eventually lead to increased lubricant demand in all of those industries.

Under no condition raise taxes on American business, and scrap the current healthcare plan. No one will add employees under the current conditions.

Impose fewer restrictions and taxes on the manufacturing sector without sacrificing safety and the environment.

Create energy policy consistency, and hold off on tax increases that will affect employers. Be thoughtful about cap and trade—do not attempt to remake the economy overnight.

Provide tax breaks and incentives to manufacturers that make products in the U.S. using legal workers.

No.1: Remove NAFTA! No. 2: Remove the inventory tax. No. 3: Tax all foreign goods and use the money collected to pay for U.S. health insurance. No. 4: Remove all illegal aliens.

Introduce select manufacturing subsidies to offset market price differentials from products manufactured in North America, including Mexico.

I would definitely suggest giving tax incentives to those companies that increase their manufacturing base and sales to U.S. customers. I would also like to see incentives continue and expand for research and development of new technologies and green technologies.

Our leaders should better understand how to compete in the global labor market where costs are much less than in the U.S. 

Stop going into debt Start cutting government programs across the board. Start reducing regulations and restrictions.

Keep the Bush tax cuts Send the Troubled Asset Relief Program money to small businesses, not to support government jobs.

Proceed within the direction it is going. Invest more money in the lubricants field, thus improving it. This will cause lubricant sales to increase.

Use taxes—both breaks and penalties—to discourage outsourcing.

Publish a list of military specifications that need additional suppliers. Also, publish the qualified products list for these specifications.

Institute a corporate tax freeze for six months. If successful, extend for another six months.

Insist that goods be made in North America as much as possible so the manufacturing base can grow and not be farmed out to offshore locations. Increased lubricant sales is a direct result of running at capacity and adding new capacity.

Set minimum industry standards in respect to energy saving and environmental impact. Have Congress set time frames to implement these new standards.

Stop this world economy concept. We should look after our manufacturing as a precious natural resource and get government off our backs.

I recommend they provide incentives, financial or through some other means, to companies willing to innovate the production of new lubricants to meet the challenges we are certain to face in the future.

Create disincentives for those companies moving manufacturing outside the U.S. in order to take advantage of lower hourly wages. Keep the wage earners here to support the local economies.

Stop avoiding the inevitability of the financial sector meltdown and focus efforts on supporting the sustainable manufacturing industry with leading technology.

Overcome trade disadvantages. That will put the U.S. in a more favorable export position. Encourage tax breaks for buying American goods.

Put more investment in manufacturing-related fields rather than banking.
Editor’s Note: Sounding Board is based on an e-mail survey of 13,000 TLT readers. Views expressed are those of the respondents and do not reflect the opinions of the Society of Tribologists and Lubrication Engineers. STLE does not vouch for the technical accuracy of opinions expressed in Sounding Board, nor does inclusion of a comment represent an endorsement of the technology by STLE.