Small manufacturers seek credit help
TEXT OF STORY
Steve Chiotakis: Believe it or not, U.S. manufacturers report orders are up. But smaller manufacturing firms report they still can’t get credit. As Marketplace’s Steve Henn reports, the industry’s in Washington today asking the Senate Banking committee for help.
Steve Henn: Russ Reschke makes machinery for car companies.
Russ Reschke: We are in Stevensville, Mich., and we have been in business since 1956.
Last year was brutal. Reshke had to lay off two-thirds of his employees. But now he has orders that he can’t fill, because…
Reshke: Our bank pulled our line of credit back in March.
HENN: How come?
Reshke: I wish I knew exactly. The best we can figure out is that they don’t want manufacturing and they especially don’t want automotive manufacturing.
Reshke says he could hire 3 more people tomorrow if he could just get a loan. But he can’t.
Rob Keiner, who represents Precision tool-makers, says the credit squeeze could kill the manufacturing industry’s comeback.
Rob Keiner: If they can’t purchase the raw materials, it’s a very good possibility that type of work could be off-shored.
So small and mid-sized manufacturers are asking Congress and the administration to offer the industry new loan guarantees.
In Washington, I’m Steve Henn for Marketplace.
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