Metalcasters attempt to mold U.S. policy: the metalcasting industry has descended upon Capitol Hill to lobby four of its most pressing issues.

Lawmakers in Washington occupy a world that most metalcasters don't think about as they're filling a mold on the shop floor. But during the coming Congressional session, four issues will be at stake that will affect the everyday workings of metalcasting facilities nationwide--Chinese currency manipulation, health care for small businesses, castings for defense and green sand recycling.

Chinese Currency Manipulation

Chinese exporters recently have expressed concern that strengthening the national currency would make their products less appealing in the international marketplace. Lobbyists for the metalcasting industry agree. However, they would welcome the change.

For years, the Chinese government has pegged the yuan to the U.S. dollar, undervaluing it considerably. As a result, Chinese metalcasting facilities can produce goods for lower costs, and foreign buyers can purchase their products at a reduced rate. According to the National Association of Manufacturers (NAM), the yuan has been undervalued by as much as 40%.

Currently, seven pieces of legislation are floating around Congress that could redress the undervaluation of Chinese currency--Schumer/Graham, Stabenow, Collins/Bayh, Lieberman, Sanders, English and Ryan/Hunter. Each of the bills would force negotiations with China concerning the value of the yuan. If the currency were not revalued, China would be penalized with tariffs or a removal of free trade relations. While action of any type would be welcomed, according to an American Foundry Society (AFS) spokesperson, the metalcasting industry has focused its support on the Ryan/Hunter bill.

Introduced last spring, the bill would combat currency manipulation by applying case to case penalties to imports from countries not adhering to World Trade Organization (WTO) requirements. The Chinese Currency Act (H.R. 1498), co-sponsored by Reps. Duncan Hunter (R-Calif.) and Tim Ryan (D-Ohio) specifically would allow U.S. manufacturers three advantages in international competition:

* U.S. industries would be able to file duties against China addressing import surges;

* manufacturers would be allowed to file currency complaints with the U.S. International Trade Commission (USITC) and seek sanctions on Chinese imports until currency manipulation is stopped;

* Chinese products would not be allowed to compete with American-made products that are intended for U.S. defense.

Prognosis: Negative

The Chinese Currency Act has come up against considerable resistance recently. With the Bush Administration declining to endorse sanctions on Chinese exporters, the prognosis took a considerable turn for the worse. But the issue is far from going away. There are a growing number of people who are concerned about the under-valuation of the yuan, and there's a good chance the issue will reach the senate floor for debate before this year's midterm elections.

Metalcasters can continue to put pressure on their congressmen. Thus far, what has been most helpful is letters that offer specific examples of how Chinese metalcasters have taken business away from U.S. manufacturers.

Health Care for Small Businesses

Many modern metalcasting facilities fall under the small business classification, and the passing of certain legislation would reduce their health care costs and improve coverage.

Senate bill 1955, sponsored by Sen. Michael B. Enzi (R-Wyo.), would allow small businesses to band together and operate like larger or unionized businesses. Small business health plans (SBHPs) currently do not fall under the jurisdiction of the Employer Retirement Income Security Act of 1974 (ERISA). For large businesses, ERISA provides a uniform, federal statute to govern health plans, alleviating the need to comply with state-to-state rules, regulations and benefit mandates. The Health Insurance Marketplace Modernization and Affordability Act would apply ERISA to small businesses and allow them to form interstate networks. The legislation would have three substantial benefits:

* small businesses would be able to join together through associations, earning them the same economies of scale, purchasing clout and administrative efficiencies enjoyed by unions and large companies;

* small businesses would save an estimated 10-15% on premiums and insure nearly one million uninsured workers;

* insurance companies would have more opportunities to serve small businesses.

Short-Term Prognosis: Negative

The small business health plan initiative most likely will not pass during this legislative session, but it has made some progress.

Over the past seven years, legislation similar to S. 1955 has been brought up in the Senate. However, this year was the first time that it has made it to the floor for debate. The bill did not make it to an up or down vote, though, owing to a Democratic filibuster. Supporters of the bill were able to get 55 of the necessary 60 votes to block the filibuster.

The long term prospects for the bill will depend largely on the upcoming midterm elections. With resounding support from Republicans but rejection by Democrats, the bill's future will depend on who takes control of the Senate. If the Republicans maintain control, it will be likely to pass--vice versa if the Democrats take over.

Castings for Defense

President George W. Bush has requested a base amount of $1.3 million for PROACT and $3.2 million for the Castings for Improved Defense Readiness (CIDR) program for FY2006, which provide for the purchase of metal castings for military use.

The multi-million dollar mark would represent a threefold increase over the $1 million that Congress approved for the program last year. CIDR is the result of a partnership between the Defense Logistics Agency and the U.S. metalcasting industry and has resulted in the forming of the American Metalcasting Consortium (AMC). The consortium represents a partnership between four trade associations, seven leading universities, members from more than 2,300 metalcasting facilities nationwide and a team of applications engineers. The goal of the AMC is to develop quality, cost-effective metalcasting components for military use.

The program effectively greases the supply chain between metalcasting producers and military end users, identifying domestic sources for such parts. The program, which has so far improved 1,500 military parts, saved taxpayers $5 million last year.

Prognosis: Positive

While the full $3.2 million for CIDR may not be a sure thing, the base amount for PROACT will very likely be appropriated. The budget item currently is being reviewed in subcommittee and will be going to a vote in the next two to three months. It is critical that metalcasters send their support to their congressmen, as the program has been very beneficial for metalcasting facilities thus far.

It can be helpful to reinforce for your congressman the successes of the program, both for casting producers and the DOD. When new casting technologies and processes are developed and casting orders are increased, the Defense Department is more likely to receive timely, cost-effective, high-quality castings. The program has identified 9,000 defense items with castings, improved 1,500 of those, trained 1,800 personnel in casting processes, benefited 65 military organizations and saved $5 million in material costs annually.

Green Sand Recycling

Metalcasting facilities do a lot to recycle the materials they use on a daily basis--both used sand and discarded metal head back into the process after going through the system. However, about 10% of the sand in molds and cores must be removed from a facility's system after several uses, which amounts to 8-10 million tons of discarded sand per year. Fortunately, excess metalcasting sand can be recycled outside the plant as well as within.

High quality industrial sand is an effective material in applications such as road base, structural fills and embankments and as a fine aggregate replacement in cement, concrete products and asphalt pavements.

Congress in 2005 passed the Innovative Pavement Research and Deployment Program as part of a bill renewing the federal highway program. The program directs the U.S. Secretary of Transportation to increase the nation's use of recycled materials, including metalcasting sand, in highway construction. But the program has not yet come to fruition. Owing to this lack of action, the metalcasting industry currently is lobbying members of Congress to write to the transportation secretary in support of the use of alternative materials in highway construction. While there is no bill on the table that would accelerate the recycling of metalcasting sand, convincing Secretary Norman Mineta to push the issue could have just that result.

Prognosis: Positive

The language in the federal highway program stipulating that more recycled goods be used in roadway production has only been on the books since last year, so it is no wonder that it has had no tangible effect as of yet so far, the move to put pressure on Mineta to follow through with the provision has been very successful. Several legislators have submitted letters to the secretary, and Sen. James Inhofe (R-Okla.), chairman of the Committee on Environment and Public Works, spoke with the secretary personally to press the issue.

The metalcasting industry has been working with the Federal Highway Administration for five years, researching the use of metalcasting sand for roadway applications. The relationship reportedly has been mutually beneficial, and the latest effort to recycle sand is merely another step in an already positive direction. The only roadblocks that remain in place are budgetary concerns.

Making the Industry's Voice Heard

Personally carrying the metalcasting industry's message to Congress is an important responsibility for every member of the industry. Federal lawmakers are constantly bombarded by special interest groups representing every industry imaginable. For casters to ensure their message is heard, it must be clear, concise and consistent.

On April 27, in more than 100 meetings with Congressmen and women, the metalcasting industry presented this message, which focused on the four priority issues outlined in the body of this article. Typically, these meetings last from 15-30 minutes and involve either a Congressperson and one of his or her staffers, or just a member of the staff that specializes in the issues being discussed. Based on the Congressperson's past voting record and public support for issues, the meeting is planned to focus on the topics with which there is the greatest opportunity to garner the Congressperson's support.

The key in each of these meetings is to make an impact. The future of our industry is tied as much to the support manufacturing receives from the federal government as to the quality of the castings produced.

For More Information

Visit thomas.loc.gov and input a bill number to find the exact text of any piece of legislation.