Republican Senator Stan Bingham, considered a pro-business moderate of Denton, fell short of a majority with 40 percent of the vote and faces a runoff. Reps. Stephen LaRoque of Kinston, and Trudy Walend of Brevard will not return in 2013 nor will Rep. Dale Folwell who fell short in his race for GOP lieutenant governor. Voters in the 21 senatorial district rejected former Sen. Larry Shaw’s bid to replace Eric Mansfield.

But some old faces will be on the November ballot. Former House Speaker Richard Morgan is in a runoff for Insurance Commissioner and C. Robert Brawley of Iredell is likely to return to the House after an eight-year absence.

There was no sign of an anti-incumbent movement among voters. Many had not primary opponents and the leaders that did came through with huge majorities.

HOW SHORT?

Republican leaders have vowed to keep the short session…well, short. But battle lines are being drawn over the budget and other issues. The April “surprise” was about $250 million in tax collections over projections. Appropriations chairs warned this—and more—will be needed to cover shortfalls in Medicaid expenses. Gov. Perdue again will send a budget that proposes a three-fourths cent sales tax to support education. Tea Party factions in the GOP can be expected to fight this proposal…vigorously.

UL CERTIFICATION

Reps. Marilyn Avila of Wake and John Torbett of Gaston have pledged to help negotiate and exemption from UL certification requirements on equipment purchased by the Manufacturing Solutions Center and the Textile Technology Center. Textile Center Dean Joe Keith has revealed that as much as 10 percent has been added to the cost of equipment. Our efforts will center on an amendment to an appropriations bill.

JOIN THE CAMPAIGN

With tight revenues and political intensity, our campaign to preserve funds for our technology centers and their research and development services is going to require round-the-clock lobbying. You can contact your legislators to emphasize the value of the centers to the industry. And you can join the HTGAC. We need your support.

Click here to join or renew your membership.

Individual members of congress have been heard to lament that bureaucrats in regulatory agencies don’t return their telephone calls or emails. In the halls of the Legislature there is pent-up frustration. Agency chiefs often blame division heads. The passing-the-buck game goes on.

The HTGAC lobbying program now is focused more relief surrounding Underwriters Life (UL) certification requirements. Manufacturers from outside the United States are tacking 10 percent on to the cost of equipment acquired by the Textile Technology Center and the Manufacturing Solutions Center to cover UL certification. When the N.C. Department of Insurance was contacted, the response was: “Is this a big deal?” Answer: yes it is. State funds are often used to acquire equipment for research and development or testing industry fees have to be hiked.

In the last session of the North Carolina General Assembly, leaders of the House aggressively pushed back to the Department of Economic and Natural Resources (DENR). Businesses had complained that obtaining permits involving waste water or air pollution entailed costly delays. During a series of hearings across the state legislators heard horror stories from small and medium-sized businesses struggling in the challenging environment.

California is another state where regulations are barriers to start-up companies. Individual citizens can bring lawsuits over alleged environment issues. The result is that many companies settle to avoid costly court charges or just give up. Dan St. Louis of the MSC says that he gets calls frequently from entrepreneurs throughout the United States. “You get a picture of how over-regulations are hurting the economic recovery of America,” he recently reflected.

AND THE DAYS DWINDLE DOWN

The North Carolina primary is less than three weeks away. Republicans are expected to give former Charlotte Mayor Pat McCrory a big sendoff for the November gubernatorial contest. Leading Democrat contenders are Lt. Gov. Walter Dalton, former Congressman Bob Etheridge and four-term legislator Bill Faison. Dalton has the support of long-time party insiders having served as chairman of the Appropriations Committee in the Senate. Etheridge is appealing to the public education community, having served as State Superintendent. Faison is the pit bull, aggressively calling out Republicans for the partisan bills and emphasis on social issues. Some pundits see Etheridge as more statesman-like, and Dalton with more experience. All three Democrats oppose the proposed constitutional amendment to prohibit same-sex marriage. McCrory supports the amendment and this could be an issue in November.

Voters, however, will be focusing on jobs and the resurrection of the manufacturing sector. And who will offer management skills to put the state on the road to recovery.

MAY 15 IS COMING AND WE NEED YOUR HELP

The 2012 short session of the General Assembly convenes the week following the primary elections. It is expected to be a tense, eight-weeks gathering to craft another budget, consider veto overrides, and say farewell to some longtime representatives and senators.

Our lobbying efforts are a year-round undertaking. Please consider your membership renewals if you have not done so. Your support is appreciated.

Recent media reports dealing with the tribulations of injured employees and the failure of the N.C. Industrial Commission to oversee compliance are expected to result on arrests, stiff fines, and perhaps more regulations. Gov. Perdue has demanded that the problems be fixed immediately. Pamela Young, chair of the Industrial Commission, has promised fast action. Reportedly, the commission has judgments going back years that have not been resolved. Fines and assessments have not been collected. Injured employees have incurred medical bills that have not been collected.

The N.C. Department of Commerce counts 172,000 businesses with three or more employees operating in the state. According to a survey of insurance companies, 140,472 businesses are covered.

Rep. Dale Folwell, now running in the Republican primary for lieutenant governor, last year pushed a bill to re-write the state law on Worker Compensation, trimming the amounts paid to claimant and reducing the time of the payments. He says he was surprised by the number of businesses ignoring insurance coverage. “Our challenge is to make cheating less rewarding,” Folwell told reporters.

ENDORSEMENT SEASON

Candidates love to tout endorsements from successful or well-known political figures. The 7th District congressional GOP primary race is an example. State Sen. David Rouzer has picked up the endorsement of U.S. Rep. Rene Ellers from the nearby Second District. Rouzer also has been endorsed for former U.S. Senator Lauch Faircloth. Rouzer’s primary opponent, former Jacksonville police chief Illario Pantano, has been endorsed by former Defense Secretary Donald Rumsfeld. The primary winner will face U.S. Rep. Mike McIntyre in the general election. As expected, Rouzer also has the endorsements of the House and Senate leadership in the General Assembly.

Now both are going through a change. Positive change.

Recently, an official ceremony was held to break ground for a new $3 million home for the Manufacturing Solutions Center. U.S. Senator Kay Hagan, N.C. Commerce Secretary Keith Crisco, and U.S. Rep. Patrick McHenry headlined the list of dignitaries who played a role in securing funds. All referred to the tenacity of Director Dan St. Louis who has guided the center since its creation at Catawba Valley Community College in 1990. St. Louis personally lobbied in federal and state offices to secure funds for a center that also will become a small business incubator–or “business accelerator.”

Funds for the center have been awarded to the City of Conover which will lease the building at a nominal fee to Catawba Valley Community College. A November completion date is expected.

The Textile Technology Center this month will have a new director. Sam Buff assumes the position upon the retirement of John Anderson who six years ago re-invigorated a troubled program that was placed under the management of Gaston College. Buff has worked with Anderson during his tenure and the selection committee expressed confidence he can maintain the significant momentum created by Anderson.

SOME CHANGE, BUT …

Some 40 percent of the Senate seats will see no political party change. Republicans will hold 11 seats with no Democratic opposition. Nine seats are safe for Democrats. In the House the ratio of “safe” partisan seats is about the same.

Republicans and Democrats have primaries in most districts. But some, including Sen. Harry Brown, Sen. Rick Gunn, and Sen. Fletcher Hartsell, Republicans, and Democratic Senators Josh Stein, Floyd McKissick, and Dan Blue have a free pass with no opposition.

OUR MEMBERSHIP GOALS

The Hosiery and Textiles Governmental Affairs Council is dedicated to the preserving financial support for our centers. Our goal includes encouraging legislators to provide sufficient funds to protect the thousands of jobs and billions of dollars in sales generated by our companies. This involves constant contact with House and Senate leaders and appropriations decision-makers.

Your membership underwrites an ongoing lobbying and public information program extending throughout the 12 months of the year. If your company has not done so, we urge you to become a member. Your return on investment is access to testing, professional assistance in development of new products, research and development services, and marketing support.

Artist rendering of the MSC center at Conover Station

The City of Conover, in partnership with Catawba Valley Community College would like to invite you to a groundbreaking ceremony for the new home of the Manufacturing Solutions Center (MSC) at Conover Station.

MSC has been a leading creator of jobs in manufacturing for 22 years. In the past decade they are credited with creating or saving over 1,000 manufacturing jobs, and creating over $250,000,000 in total economic impact worldwide.

The objective of the new facility would include cultivating a new form of manufacturing. Manufacturing that is based in smaller and smarter factories that nourish innovation. The catalyst for the new manufacturing economy is MSC. Two thirds of the net jobs in the private sector originate among small firms or small business births. The smallest segment (1-19 associates) produces the most new jobs relative to its share of total employment.

MSC will become the business accelerator for worldwide product innovation and testing. When companies launch their businesses from this facility, our hope is they will plug into our local communities, use our available industrial properties and employ our skilled and able workforce. MSC provides new and existing companies with low cost testing, research and development, where resources are shared, and capabilities are inventoried to aid companies.

We have been very fortunate both North Carolina and Federal agencies agree with this vision and have stepped forward to partner thru grant funding and make this a reality for North Carolina and our nation. The new MSC facility will sit in the heart of one of the hardest hit regions in the nation. US News and World Report list the area as one of “The 10 Worst Cities for Finding a Job.” January 20, 2012. This is a bold step in the right direction to rebuilding manufacturing for the nation.

Because February is prone to inclement weather, the ground breaking event will take place indoors at the Conover Multi-Modal Center. Please join us on the 3rd floor of 403 Conover Station SE, refreshments will be served. If weather permits we will have a photo op with shovels outside, afterwards.

Please RSVP to: donald.duncan@conovernc.gov
Donald E. Duncan Jr.
City Manager
City of Conover

Arriving on I-40 from either direction: Take exit 130. Turn left at top of ramp, which is US Hwy 70-A (“Old 70″, 1st Street W). After approximately half a mile, turn right at the intersection of 70-A and NC 16 Business, Travel south on 16 Business (1st Avenue S) approximately 1000′. Turn left onto Conover Station SE (formerly 4th street Pl SE). Conover Station will be on the left.

Speaker Tillis was impressed. Within an hour he gained an understanding of the important role of the center as a research and development asset for the state’s 1,600 textile companies. During a meeting with area legislators, center board members, and Gaston College officials including President Pat Skinner, Tillis said he would arrange for presentations with the Education Appropriations Subcommittee to address funding issues.

Accompanying the Speaker was N.C. Rep. John Torbett. Senator Kathy Harrington and Representatives William Currence, Mike Hager, and Kelly Hastings attended the discussion session which included Paul Fogleman, director of the Hosiery and Textiles Governmental Affairs Council.

MONEY AND MANAGEMENT

House and Senate members of the Joint Appropriations Committee are meeting to have a budget draft in place when the short session of the General Assembly Convenes in May. The committee in January convened to hear presentations from the Legislative Fiscal Office. The meeting was to track progress on the 2011 – 2012 budget and monitor expenditures. Some state employees were criticized for avoiding the mandate to eliminate certain programs.

State revenue officials report that collections are running slightly above projections, but the majority of extra dollars are expected to be needed to cover Medicaid overruns. Still, most legislators are hopeful additional cuts to education—including community colleges—will not be required. Maintaining funds are the current level for the Manufacturing Solutions Center and the Textile Technology Center will be a priority.

NEW FACES

The official filing period for the fall elections is Feb. 13 – 29 and dozens of legislators are saying “no more.” Some 18 members in the Republican caucus have announced plans to leave and retirements and redistricting will impact a like number in the Democratic ranks. Some like Rep. Dale Folwell of Forsythe plan to seek higher office, in his case lieutenant governor. Four of the five Democrats who joined Republicans to overturn vetoes are leaving.

Among those leaving are lawmakers who have been staunch supporters of the hosiery and textile industries and their legislative priorities. They will be missed. Our Council will contact new members and candidates and explain the importance of our centers and their role in strengthening U.S. manufacturing.

HIGHLIGHTS

Number of hosiery and textile companies in North Carolina: 1,600; number of people employed in these plants: 48,000; annual sales: $20.6. Textiles and hosiery make up 11 percent of manufacturing in N.C.

TIME IS NOW!

We need memberships to continue our work. The pace has picked up and your support is important…no, critical. Corporations can join the Hosiery and Textiles Council. The council is not a political action committee (PAC).

Please contact us if your need more information: pfogleman@informinc.net

We wish you a prosperous New Year. Trends in early 2012 indicate a slow economic recovery during the next 12 months with increased demand for consumer products made in America.

We at the Hosiery and Textiles Governmental Affairs Council are optimistic.

There is growing appreciation for American manufacturers and the made-in-the-USA products they ship around the world. Political leaders of both parties are responding to our presentations on behalf of the Manufacturing Solutions (Hosiery) Center and the Textile Technology Center. Our legislators are learning that hosiery and textiles manufacturers still employ more than 100,000 people. And this number is growing as more retailers seek goods made here.

Additionally, North Carolina lawmakers are pushing a pro-business agenda…elimination of cumbersome regulations and holding bureaucrats accountable for adoption and implementation of business-related rules. Our industry efforts endorse this trend.

Our on-the-scene efforts with the General Assembly begin January 17 when the Appropriations Committees begin crafting the 2012-13 state budget. We will work to protect the appropriations for our centers and encourage continued support from the Department of Commerce, the North Carolina Manufacturing Extension Partnership, and other state agencies.

Candidates for the 2012 election will file during the month of February. Turnover will be extensive. Many leaving the House and Senate have been strong supporters. Other advocates for our programs are seeking re-election.

It’s going to be a challenging year. Thank you for your support. If your company has not renewed dues for this new year, your prompt response is appreciated.

Sincerely,

Paul Fogleman
Executive Director

We take this opportunity to wish you and your associates a joyous season of cheer, hope, and happiness. An interlude from the tensions of our professional schedules also renews us for the hurdles we will confront in the future.

We at the Hosiery and Textiles Governmental Affairs Council are optimistic. There is growing appreciation for American manufacturers and the made-in-the-USA products they ship around the world. Political leaders of both parties are responding to our presentations on behalf of the Manufacturing Solutions (Hosiery) Center and the Textile Technology Center. We believe North Carolina legislators will continue to provide state financial support for their operations.

Additionally, North Carolina lawmakers are pushing a pro-business agenda … elimination of cumbersome regulations and holding bureaucrats accountable for adoption and implementation of business-related rules. Our industry efforts parallel the trend.

We hope that the spirit of the season brings you peace and happiness and may you look forward to a New Year with confidence.

Sincerely,

Paul Fogleman
Executive Director

Rep. Mark Hilton, a close ally of U.S. Rep. Patrick McHenry, is bowing out after six terms. He was House Co-Chair of the Education Appropriations Committee. Hilton also received a large loan from a program administered by embattled Rep. of. Recently, Rep. was critically injured in an automobile collision and his return is doubtful. GOP Rep. Bill Current is leaving and GOP Sen. Jim Forrester died after a lingering illness. Unofficial reports include Democrat and Republican incumbents who are retiring, some of whom have put in districts with other members.

Redistricting Lawsuit

Democrats have filed lawsuits challenging the validity of new House, Senate and congressional districts drawn by Republican lawmakers in the General Assembly. The U.S. Justice Department has signed off on the districts. But the U.S. courts now must consider if the procedures last summer met constitutional requirements. In the past, the courts have forced new plans if counties were split unnecessarily. African American legislators have complained they have been packed in districts to dilute their impact. More recently, observers in Raleigh believe the courts will send GOP redistricting committees back to the drawing table.

Budget Outlook

Unless the economic climate in North Carolina takes a steep driveare not likely to push for more cuts in state education spending. House Speaker Thom Tillis is sending signals that the House will retreat from adding five days to the school calendar. He also has said cuts to the universities budget can be reviewed.

However, there is momentum to examine the community colleges $1 billion budget, including mergers and privatization of services.

The Appropriations Base Budget Committee has scheduled meetings in January, four months before the start of the official short session. Legislative leaders have said budget sessions will continue throughout the winter and early spring and a proposed budget will be ready for enactment shortly after the May session convenes.

John Anderson Retiring

John Anderson, who has led the Textile Technology Center in for six years as executive director, has announced his retirement, effective in March 2012. A former executive with Wellman Inc., John has applied business principals to the management and growth of the center. Today, earned income from services to textiles companies is over $1 million annually. His relationships with textiles companies in the supply chain have enabled the center to acquire more equipment to expand services in testing , research and development.

He leaves big shoes to fill.

Our Membership Campaign

With changes in the General Assembly on the horizon, our job of cultivating relationships and support from new leaders is going to require more time in the Legislature. Also, the council is in discussions with the American Manufacturing Trade Action Council in Raleigh in the interest of protecting domestic manufacturing companies – companies that make products in the U.S.

Protecting our support among Raleigh legislators will remain our top priority, as the Manufacturing Solutions (Hosiery) Center and the Textile Technology Center become more important resources for our manufacturers.

We urge you to join us for another important year—one that is going to include important challenges.

This has been true since the adoption of the Marshall Plan for post war European countries and it is still true in negotiations with “emerging countries” including China and India. The conclusion: manufacturers trying to keep their production in the U.S. are fighting with one hand tied behind their back.

Tantillo is executive director of the American Manufacturing Trade Action Coalition (AMTAC). Based in in Washington DC, AMTAC pushes an agenda to protect small and medium-sized companies in negotiations with federal bureaucrats and Capitol Hill staff people. In contrast, large U.S. manufacturers sourcing products in Asia prefer easy access for socks imported into the marketplace. Both interests were at the luncheon meeting last Thursday in High Point, however the concerns of the independent entrepreneurial companies predominated.

The meeting was sponsored by the Hosiery and Textiles Governmental Affairs Council in cooperation with Harriss & Covington Hosiery Mill. Among other firms were Slane Hosiery, Catawba Valley Finishing, N.C. Sock, Twin-City Knitting Mills, Huitt Mills, Holt Hosiery Mills and Century Hosiery.

HTGAC / AMTAC Partnership

Darrell Frye, chairman of the Hosiery Council, served as moderator for the event and announced discussions are taking place to work with AMTAC on issues that affect the business climate for independent manufacturers. The 2012 dues structure could be raised slightly to support federal activity and legislative lobbying in Raleigh. The goal is to make a presence in Raleigh and Washington affordable for mills.

AMTAC already enjoys support from leading hosiery manufacturers outside North Carolina, including Wigwam Mills in Sheboygan, WI. Those mills that have survived the turmoil since 2007 employ between 3,000 and 4,000 people.

SEAMS Also Moving Toward AMTAC

The Southeast Apparel Manufacturer organization recently invited Tantillo to speak at the fall networking meeting in Isle of Palms SC. According to Sarah Friedman, executive director, SEAMS also is seriously considering a partnership with Tantillo’s organization. SEAMS has a membership roster that includes large textile companies and numerous apparel companies that employ fewer than 30 people. She also works with Dan St. Louis and the Manufacturing Solutions Center.