WASHINGTON, D.C. - Precision Metalforming Association (PMA) President William Gaskin issued the following statement March 19, 2009, in response to the announcement of the Obama administration's proposed Auto Supplier Support Program:
"The Precision Metalforming Association is encouraged by today's announcement by the Obama administration that it would provide up to $5 billion in assistance to auto parts suppliers. The infusion of liquidity will help Tier 1 suppliers and should give them greater ability to satisfy the receivables of their Tier 2 and Tier 3 companies.
However, we are very concerned that this 'trickle down' of liquidity to lower Tier suppliers cannot be taken for granted because the financial situation of many Tier 1 companies – who need to shore up their balance sheets and reduce debt – is so substantial that meeting obligations of their lower Tier suppliers could be a low priority.
The recovery of the automotive industry will only succeed if the entire automotive supply chain is involved, including the many small and medium-sized businesses who are Tier 2 and Tier 3 suppliers. These companies are experiencing the same serious liquidity and cash flow problems that prompted the administration to help Tier 1 suppliers.
PMA will continue to work with the Obama administration and Congress to urge a method of providing loan guarantees on the receivables of Tier 2 and Tier 3 suppliers and increasing the availability of credit to these types of small businesses, which employ the vast majority of Americans. These small and medium sized manufacturers are the backbone of this economy and are essential to the recovery of the auto industry."
PMA is the full-service trade association representing the $91-billion metalforming industry of North America-the industry that creates precision metal products using stamping, fabricating, spinning, slide forming and roll forming technologies, and other value-added processes. Its nearly 1,200 member companies also include suppliers of equipment, materials and services to the industry. PMA leads innovative member companies toward superior competitiveness and profitability through advocacy, networking, statistics, the PMA Educational Foundation, METALFORM tradeshows and MetalForming magazine. Approximately one half of PMA’s manufacturing members are suppliers to the automotive industry.
Metalformers Applaud Auto Supplier Support Program
March 20, 2009