By Sharon Ferguson
ATLANTA — GTMA: The Association of Georgia’s Textile, Carpet and Consumer Products Manufacturers enjoyed many successes in 2004 as it sought to represent its member companies and support an environment for business growth in the state.
GTMA’s most ambitious and involved effort during 2004 was its intervention in Georgia Power Company’s $328 million rate case. The six-month series of hearings before the Georgia Public Service Commission (PSC) on the rate hike request and negotiations with Georgia Power Company and the PSC Staff concluded with a settlement of the case on terms that were favorable to the GTMA membership.
Also on the energy front, GTMA was successful during the 2004 Session of the Georgia General Assembly in beating back legislation supported by Atlanta Gas Light Company to fund expansion of its system through imposition of a surcharge on industrial consumers of natural gas.
GTMA was supported in these efforts by the Coalition of Georgia Business for Sound Energy Policy, an affiliate organization of non-textile industrial power users with an interest in restraining their fixed energy costs. Membership in the coalition continued to grow as Industrial Class customers banded together to oppose Georgia Power’s excessive rate requests, with very tangible results. GTMA’s successful efforts in the energy arena during 2004 saved its member companies millions of dollars.
Additional bottom-line savings to GTMA member companies can be attributed to the association’s success at the General Assembly with legislation capping the surcharge on unemployment insurance taxes, and in resolving, with the Georgia Department of Revenue, the treatment of open sales tax audits.
2004 also saw significant expansion of GTMA’s Workers’ Compensation Self-Insurance Fund, as the outstanding performance and service of the Fund offered member companies another means of reducing their fixed costs while enhancing workplace safety.
“Textile and carpet manufacturers exist locally but compete globally. For that reason, it is crucial to keep our industry face-to-face with policymakers on both the state and national levels,” said Roy Bowen, president of GTMA. To accomplish this goal, the association held a series of dinners for legislators around the state following the 2004 elections, at which more than 200 legislators and their hosts in the textile and carpet industries spent time sharing both a meal and perspectives on issues of importance.
In addition, GTMA invited national leaders such as U.S. Representative Jim Marshall, Ambassador Philip Lader and Senator-elect Johnny Isakson to address the membership and open dialogue on such issues as trade, economic development and the war on terrorism.
GTMA also solicited legislative support for the industry’s lobbying campaign to win approval of the China safeguard petitions.
“When our Georgia legislators and state officials see the industry’s obstacles to maintaining a level playing field in global trade, and when they have a chance to meet the constituents who are directly affected by unfair and predatory practices, they are quick to offer their support,” Bowen said. “Commissioner of Labor Michael Thurmond, Commissioner of Agriculture Tommy Irvin, many of our state representatives and senators, heads of major Georgia industries — all have written to insist that the rules of fair trade be upheld. We have found that personal interaction with our membership is crucial to winning their understanding and response.”
Other initiatives
GTMA and its related organization, The Textile Education Foundation, continued to invest in the future of the industry by funding recruitment efforts and scholarships at the School of Polymer, Textile and Fiber Engineering (PTFE) at the Georgia Institute of Technology.
GTMA also provided support for the School’s Executive in Residence program, which brings seasoned textile and carpet executives to the school to teach classes and add a hands-on perspective to the curriculum.
Max Corner, the current Executive in Residence and a 45-year veteran of Coats & Clark, has introduced a multi-disciplinary approach, incorporating courses from Tech’s College of Management with the core PTFE requirements.
“These students are marvelous,” Corner said. “They’re so smart it’s hard to stay ahead of them. They will bring a lot of fresh ideas and energy to our industry.”
More fresh ideas will be coming from The Consortium on Competitiveness in the Apparel, Carpet and Textile Industries (CCACTI). This industry/public sector initiative leverages State funds to harness the resources of the University System of Georgia in addressing immediate competitiveness needs of the industry.
CCACTI-sponsored research, which is directed and approved by the GTMA Research Advisory Committee, is aimed at improving productivity, product quality and customer service, as well as addressing environmental challenges facing the industry. Continued funding for CCACTI in the State’s 2005-2006 budget will be a legislative priority for GTMA.
GTMA also worked to promote greater efficiency and quality in textile production by encouraging interaction from the field through the finished product. In concert with the Georgia Cotton Commission and the National Cotton Council, Bowen and his staff brought together cotton growers, researchers, ginners, buyers, spinners and mill managers to tour cotton production from ground to mill and seek areas of improvement.
Looking ahead
For 2005, Bowen said he anticipates continuing GTMA’s strategy of seeking out new opportunities to support Georgia’s carpet and textile manufacturers.
“Our members are constantly seeking innovation in product, in supply chain management and in market niches in order to compete effectively in the global environment”, he said. “GTMA must do the same. We don’t wait for opportunities to come knocking. We go out and find them.”
Bowen’s legislative and regulatory priorities for the year ahead include initiatives to restructure the state corporate income tax, reduce workers’ compensation costs and unemployment insurance taxes, obtain a favorable settlement to a pending $300 million Georgia Power Company fuel cost recovery case, encourage the State’s Environmental Protection Division to embrace the federal New Source Review standards and bring about meaningful civil justice reform.
Georgia’s political shift to Republican dominance also offers opportunities for reaching new members of the House and Senate.
“Taxes, insurance, energy, employment issues, trade, the environment — we’ll be involved on many legislative fronts this year,” Bowen said. “I’m looking forward to them all.”
Sharon Ferguson is director of Public Affairs for GTMA: The Association of Georgia’s Textile, Carpet and Consumer Products Manufacturers. She can be reached at sferguson@gtma.org.
