CHEMUNG - Vulcraft Group hosted Rep. Tom Reed Tuesday for a roundtable event at its manufacturing plant in Chemung to discuss tax reform’s impact on the manufacturing industry.
“There’s a lot of activity here (at Vulcraft), there’s a lot of opportunity coming down the pipeline,” Reed said.
Although federal tax reform overhaul has been controversial, business leaders with Vulcraft and its owner, Nucor Corporation, said the legislation will benefit manufacturing.
“The new tax bill is going to unleash and allow companies like Nucor to make significant investments in their business. And that’s the bottom line,” said Chad Utermark, Executive Vice President of Nucor.
The Tax Cut and Jobs Act cut the corporate tax rate to 21 percent on Jan. 1, saving companies money in the long run that can be reinvested into other areas.
“As we get that capital, we can reinvest it back into our businesses. This is going to create new jobs and it’s going to create new opportunities for our existing teammates,” Utermark said.
Vulcraft Vice President and General Manager Tom Batterbee said employees will begin to see higher returns from the legislation eventually, through the company’s annual profit sharing program in March.
“Eventually, as it supports our profitability,” he said. “The more successful the company, the more successful our teammates are.”
“I know a lot of these small businesses, I know the folks making these decisions; they’re going to invest in their people; they’re going to invest in their businesses,” Reed said.
One of the criticisms over tax reform is its reliance on trickle-down economics. Critics say the policy doesn’t work and the majority of money saved from tax breaks goes toward executives and shareholders.
Vulcraft of New York employs approximately 300 people at its plant in Chemung. The company manufactures steel joists and decks for construction purposes.