PRECISION MACHINED SOLUTIONS | (262) 743-1700

U.S. Congressman Paul Ryan Visits Precision Plus in Elkhorn, Wisconsin on April 6, 2015

Michael Reader

On Monday, April 6, 2015, U.S. Congressman Paul Ryan (WI01) stopped at Precision Plus for a short informal visit with the company’s employees, to share some of the legislative efforts in Washington, D.C. A roundtable discussion with a number of area business leaders followed the meeting.

Mike Reader, President and Owner of Precision Plus, introduced Congressman Ryan to the employees. Congressman Ryan, who chairs the Ways and Means Committee, is in charge of reviewing and passing laws that affect issues such as healthcare, welfare, trade, tax and retirement.

During the Q&A with Precision Plus’ employees, Congressman Ryan compared the tax rates assessed on small to medium-sized businesses in the U.S., at an average of 44.6%, with similar taxes for same-sized companies around the world, which average 25%, and are as low as 12.5% in Ireland. Larger-sized companies, such as Anheuser Busch or Snap-On Tools, pay an average of 35%. Subsequently, their shareholders are taxed about 20% on dividends paid and capital gain.

This tax disparity with its global competitors places U.S. companies in hard-to-compete situations. Some companies are choosing to move their operations to other countries in order to be able to be competitive in the global arena. Others, have been purchased by foreign corporations, so that they can stay viable in the global market. Congressman Ryan pointed out the fact that 96% of all consumers are outside of the U.S. and that currently the U.S. is working, among other things, on trade agreements with eleven Asian nations to open up their markets. The U.S. is adamant that trade partners respect fair trade, do not allow unreasonable subsidies, and protect intellectual properties.

Congressman Ryan addressed also tax reform, and the initiatives that can be put in place—such as depreciation rules, etc., to lessen the tax burden levied on small to medium-sized companies, until this complex issue is resolved, allowing companies to be able to reinvest into their workforce and equipment.  “We need to get American manufacturers to be in a good position to sell overseas, make things here, get our tax fixed, so that we can be more competitive,” he added. “We are in a race to set the rules of the global economy,” he added.

Congressman Ryan was also asked about the status of Medicare reform. He reported on a new payment plan for doctors which is based on value, rather than on number of procedures, or quality versus quantity. Those who can account for healthier outcomes and higher patient satisfaction, will receive a larger payment that those who do not.

After the company meeting, the conversation continued with eleven local business executives about legislative issues, and what can be done to promote domestic manufacturing that will create even more good paying careers.

This visit follows in the footsteps of last year’s, where both Wisconsin Senators–Baldwin and Johnson—stopped in at Precision Plus for tours and conversation.  Mike Reader, President and Owner of Precision Plus said, “We will continue to engage our representatives on both sides of the aisle, at all levels, looking for common ground and a path forward.  Our goal is to promote domestic manufacturing legislation and help develop the next generation of manufacturing professionals.  People are our greatest asset and without them we are nothing but buildings filled with equipment.  We need a global level playing field to allow our team to compete and be successful.  This is why we must engage our representatives and we encourage others to get involved in the conversation.”

A Note From Mike Reader, President of Precision Plus

Michael Reader

As we enter the second half of the year I am happy to report we have many good things happening here at Precision Plus  All and all, it was a successful first half with sales surpassing those of last year, and the addition of our 4th Miyano ABX lathe.  Our customers remain optimistic and continue to ask us to take on more work from them.  It is a testament to the hard work of all our staff when I hear a long-standing customer ask me “we need to resource a package of parts, how much more can you take on?”.  Especially with existing customers, we have developed a trust that ensures them that we know what we are doing and that we will produce what they ask for.  As the degree of difficulty in developing and manufacturing new components continues to increase, we understand that the complexity of the part will make a difference in our customers’ profitability and efficiency.

We are continually improving “embedding” ourselves with our customers’ product engineering teams, so as to add more value and be in the best position to transition from prototype to production.  Our customers love this because they can understand cost and manufacturing challenges early on in a design project.  We love this because we want to make the entire process seamless. Bill Wells, our Sales and Engineering Manager, devotes much of his time working with these engineers.  It’s a time-consuming proposition, but an investment in both our futures.

Since the beginning of the year, we have taken on over 100 new jobs, not only from new customer-partners, but from our existing customer-partners from a variety of industries, including pneumatic and hydraulic, aerospace, industrial, automotive, medical and dental and movie and still motion product manufacturers.

This organic growth, coupled with new opportunities developed through our website and media efforts have us plenty busy.  As I mentioned earlier, we continue to reinvest in capital equipment and technology to support our customer’s needs, and remain committed to ongoing improvements.

However, while we can put all the new equipment we want on the floor, it is the difficulty in finding/developing skilled machinists that will constrain our growth moving forward.  This is a real problem for us, our industry and our country that requires a true Manufacturing Training Plan.  We are addressing this issue on many levels.  Locally, we are participating in trade school and college programs designed to instruct young and/or unemployed individuals in the crucial trade of manufacturing.  On a national level, with the PMPA, we are talking to Congress and Senate leaders in order to create a mind shift with respect to training younger people in the trades, so they can fill in the open spots that retiring Baby Boomers are leaving at a rapid pace.  The goal is to bring manufacturing back to the U.S.

Reach out to me with any questions, suggestions or comments you may have!  My door is always open.

Mike Reader
President