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Market Trends

Public Policy Initiatives

PTDA relies on its memberships in the National Association of Wholesaler-Distributors (NAW) and National Association of Manufacturers (NAM) to fulfill all public policy and government relations functions.

Through these organizations, PTDA is active in supporting efforts to pass or amend legislation to address the following priority issues.  Visit the Government Relations section of the NAW Web site or the Policy Issue Information section of the NAM Web site.  For direct links to their sites for a particular issue, click a link below:

Energy Independence and Security Act of 2007
Hiring Incentive to Restore Employment (HIRE) Act
Energy Independence and Security Act of 2007
Employee Free Choice Act (EFCA)
PCI Compliance
Cap & Trade Legislation
Research and development credit 
Health care issues 
LIFO Repeal
Selling Counterfeit Goods

EU Monitoring Reports

In addition, through our partnership with EPTDA, we provide members with access to up-to-date news and reports on the developments in key European Union policy areas for the PT/MC industry.  If you're doing business in the European Union, policy areas--such as environment, energy, trade and consumer protection--can affect your competitiveness and profitability.

Click here Image to access the exclusive PTDA member logon and learn more about pending EU legislation.

Hiring Incentive to Restore Employment (HIRE) Act

On March 18, President Obama signed into law H.R. 2847, the Hiring Incentives to Restore Employment (HIRE) Act.  The two most important provisions of the HIRE Act are a tax credit provision and a limited payroll tax holiday provision, both of which encourage companies to hire unemployed workers in 2010. Other provisions enhance expense treatment for new equipment placed into service in 2010, extend eligibility for tax credit bond issuers, increase funding to highway and transit programs, create new anti-offshore tax abuse measures, and delay the implementation of worldwide allocation of interest.

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Energy Independence and Security Act of 2007

The U.S. Energy Independence and Security Act of 2007 (EISA) takes effect on December 19, 2010, changing mandatory efficiency levels for 3-phase electric motors up to 600 volts, which are manufactured or imported into the U.S. Under the EISA regulation, electric motors previously required to meet EPAct efficiency levels must move up to NEMA Premium  standards. These include general purpose motors from 1 to 200 horsepower. In addition, products not previously covered by EPAct will be required to meet EPAct levels. There are nine new product categories impacted by the new.  The motors in these categories will be required to meet the energy efficiency levels by December 18, 2010. 

These include the following types of motors:

  1. U- Frame Motors                   
  2. Design C Motors
  3. Close Coupled Pump Motors
  4. Footless Motors
  5. Pole Motors (900 RPM)
  6. Vertical Solid Shaft Normal Thrust Motors (tested in horizontal configuration)
  7. All Polyphase Motors with Voltages up to 600 volts other than 230/260 volts
  8. Horsepowers from 201to 500 General Purpose Design B per (NEMA MG1 12-11)
  9. Firepump Labeled Motors per (NEMA MG1 12-11)

EISA will also maintain the IEEE12 method B or CSA 390 test methods.  Motors imported as a motor or as a component of a piece of equipment will also be covered by this new act.

For more information, read a summary of the act's provisions.

PCI Compliance

It is no secret that identity theft is becoming a growing concern among businesses and consumers alike.  Every day, there are new reports of the devastating effects a breach of personal information can have on its victims.  Recognizing this burgeoning threat, the United States government passed federal laws called the Fair and Accurate Credit Transactions Act of 2003 (FACTA).  This detailed act tackles many issues that revolve around identity theft from prevention and credit history restoration to credit report access.  

 

Since that time, identity theft has continued to pose a major threat to consumers.  In response to this growing problem, the major credit card brands came together to put into place a set of standards that all businesses are required to follow in order to maintain a secure environment for their customers' credit card information.  These standards, now known as PCI Compliance (Payment Card Industry Compliance), require all businesses to be compliant by July 2010.

 

If your business takes credit cards, this may leave you with the obvious question, "How do I know if I am PCI Compliant?"

Learn more with the five-step guide prepared for PTDA members by Solveras, PTDA's credit card processing member benefit provider. 

Employee Free Choice Act (EFCA)

The Employee Free Choice Act (EFCA) (H.R. 1409, S. 560) is pending legislation in the United States which aims to "amend the National Labor Relations Act to establish an easier system to enable employees to form, join, or assist labor organizations, to provide for mandatory injunctions for unfair labor practices during organizing efforts, and for other purposes." 

PTDA opposes the legislation as detrimental to both manufacturers and distributors and urges its members to actively pursue its defeat.

Status:  The latest version was introduced into both chambers of the U.S. Congress on March 10, 2009.  

Distributors: 
For more information, visit the National Association of Wholesaler-Distributors (NAW) Web site and use their "Tell Congress" link at the top right corner of the Web page to send a message directly to your Member of Congress.  Click here for an update from NAW.

Manufacturers:  For more information, visit the National Association of Manufacturers (NAM) Web site to access resources from NAM's Web-based EFCA Tool Kit.  Click here for an update from NAM.

Cap & Trade Legislation

A cap and trade system is a method for managing pollution, with the end goal of reducing the overall pollution in a nation, region, or industry.   Under a cap and trade system, a government authority first sets a cap, deciding how much pollution in total will be allowed. Next, companies are issued credits, based on how large they are, what industries they work in, and so forth. If a company comes in below its cap, it has extra credits which it may trade with other companies.

Status:  The House of Representatives passed a sweeping cap & trade bill on June 26, 2009 by a very narrow margin, 219-212.  Notable about this vote was the large number of Democratic Representatives – 44 – who voted against their Leadership's bill.  Also notable is the immediate fall-out from the vote, with reports that some moderate Democrats and/or Representatives from fossil-fuel-dependent states are already finding it necessary to defend their votes.

Click here for more information about cap & trade legislation.

Research and Development Credit

Congress passed legislation that was signed into law October 3, 2008, that extended retroactively the R&D tax credit from January 1, 2008, through December 31, 2009, and strengthened the credit by increasing the Alternative Simplified Credit rate to 14% effective in 2009.  Prior to the renewal in 2008, the credit was expired for 9 months through September 2008.  Nearly 18,000 companies of all sizes use the credit that was renewed for the 13th time since its original enactment into law in 1981. 

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Health Care Issues

Health care spending continues to grow beyond the rate of the rest of the U.S. economy. Health coverage has increasingly become a burden for the very manufacturers who helped to invent employer-provided coverage during World War II.

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LIFO Repeal

The U.S. Senate Finance Committee recently has threatened to repeal the last-in, first-out (LIFO) inventory and accounting method.  The repeal would change a 70-year old GAAP approved accounting procedure that dominates the distribution industry.

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Selling Counterfeit Goods

The U.S. federal criminal laws that prohibit any person from trafficking in counterfeit goods and services apply not only to the counterfeiter; the law applies with equal force to any individual or company that knowingly sells a counterfeit product. (18 U.S.C. 2320). This law, known as the Trademark Counterfeiting Act of 1984, carries substantial monetary fines (up to $5 million) and prison time (up to 20 years imprisonment or in some cases life) for individuals and companies who violate the Act.In addition to the above liability exposure, a wholesaler-distributor selling a counterfeit product (with or without knowledge that it is counterfeit) faces legal action by injured parties if the product is defective and causes death, personal injury, property damage, interruption of business operations or other losses.

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