AMT Testifies Before the U.S. Senate Committee on Banking
The AMT represents America’s machine tool industry and other manufacturing technology companies that form the basis of manufacturing in the United States.
Addressing the committee, Haffely said that the manufacturing technology industry is critical to building and maintaining the strong and dependable defense industrial base that enables the military to protect U.S. citizens around the world. He testified that if nothing is done to get credit flowing again to America’s manufacturers, the country could lose its ability to create the new innovative defense systems that provide an advantage over adversaries throughout the world. Then, too, there is risk of dependence on foreign sources for U.S. defense needs and national security.
In his testimony, Haffely noted that for the past seven months, banks have been denying credit to even the most creditworthy manufacturing technology companies. This lack of bank credit is threatening to drive those companies out of business.
Haffely implored the committee to look to the Defense Production Act (DPA) as part of the solution. The DPA confers on the president the power to mobilize the domestic economy in order to best supply the military in the event of a wartime mobilization. It authorizes the president to direct certain industries to produce vital military products.
In order to advance America’s defense production needs, Title 3 of the DPA provides for federal loan guarantees to companies that play an important role in the nation’s defense industrial base-companies that would be important to mobilization efforts if it were necessary to move from a peacetime economy to a wartime economy.
Haffely suggested that the committee consider increasing the loan guarantee authority under Title 3 as it considers the DPA’s reauthorization this year, so that credit is available to the U.S. defense industrial base companies that are unable to get credit elsewhere in the current economic environment.