A new piece of manufacturing legislation was recently introduced in the House of Representatives that could potentially save jobs and increase the competitiveness of the United States in the global market, according to the National Law Review. Under manufacturing compliance with the new law, called the Miscellaneous Tariff Bill (MTB), manufacturers benefit from tariffs that are reduced or eliminated on products that are imported from other countries.
Importance of the Miscellaneous Tariff Bill
Previous versions of the MTB have been passed, but since since tariff suspensions under laws like the MTB expire after a certain period, they must be renewed. Not passing the MTB could mean hurting domestic manufacturing, the National Association of Manufacturers said in a press release.
"I applaud [House Ways and Means Committee]Chairman Rep. Dave Camp [R-Mich.] for introduction of the MTB. It is commonsense legislation Congress can act on to keep manufacturing in the United States strong," Linda Dempsey, vice president of international economic affairs at NAM, said. "Each day that passes without an MTB hurts manufacturing in the United States and threatens jobs. Failure to act will result in a whopping $748 million tax on manufacturing in the United States and economic losses amounting to $1.857 billion over the next three years."
Impact of new manufacturing legislation
By being able to operate their business without tariffs on the raw materials or other resources that are only available outside of the U.S., manufacturers save on costs for production, which could in turn provide more money to hire future workers.
"Unfortunately, manufacturers have been operating without an MTB for nearly 200 days, which has meant higher costs and, in some cases, a reduction in employees' hours and even layoffs," Dempsey said.
The NAM argues that without renewing the MTB, American jobs and factories are in danger of being cut down because of unmanageable production costs and increasing competition around the world.
Manage manufacturing processes with software
While workers wait for a decision of whether the bill passes, manufacturers can start saving money by using manufacturing management software. This type of software can improve the efficiency of manufacturing workflows while helping to execute maintenance procedures, such as providing workers with a checklist of the tools needed to install or repair parts. Manufacturing software can also be used in conjunction with machine controls in order to automate safety features such as shutting down equipment if it becomes overheated.