Delaware Business Jan-Feb 2012

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ab m ac nd ue f fg acturing

The Delaware Manufacturing Association aims to keep the assembly line moving in the First State through strategy and legislative action.

Manufacturing in Delaware: A Blueprint to Continued Competitiveness By Jim Wolfe

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he Delaware Manufacturing Association (DMA) includes manufacturers of all sizes, up and down the state. An affiliate of the Delaware State Chamber of Commerce, it is also the state arm of the National Association of Manufacturers (NAM). Its mission is to keep Delaware manufacturers competitive and to be an advocate for the companies at the state and local level. The DMA is an active group, meeting several times throughout the year to share ideas, discuss manufacturing strategy as well as legislative ideas, resolve problems and assess the challenges of doing business in our state. The DMA’s year was truly launched in December 2010. The Board of Managers meeting was hosted by DMA Chair Michael Crawford at the AstraZeneca plant in Newark. The group discussed roadblocks manufacturers face doing business in Delaware with Gov. Jack Markell and Director of Economic Development Alan Levin. The governor made a commitment to work with manufacturers to create an environment in the state that will help existing plants operate more efficiently, and make Delaware more attractive to lure new manufacturers. As a result,

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DPPI director Mark Dimaio collaborated with state manufacturers to create a “blueprint” that focuses on five main points of concern: energy costs, taxation, regulation relating to the environment, infrastructure and land use and the development and education of the workforce. For many Delaware manufacturers, the increasing cost of energy along with its delivery is a major issue. A suggestion put forth by the DMA is to explore a statewide energy buying entity for manufacturers to consolidate energy purchasing power. The State Chamber has successfully advocated for a reduction in the public utility tax for manufacturers from 2.35 percent to 2 percent. Another burden to Delaware manufacturers is the gross receipts tax (GRT) that, by definition, does not allow any product discounts to be taken into account. The DMA proposed that GRT definitions allow the inclusion of these discounts. The blueprint also asked the administration to consider a new research and development tax credit that would become “manufacturing specific,” allowing Delaware manufacturers to become

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