Minnesota Democratic-Farmer-Labor Party

ST. PAUL (September 6, 2010) - This afternoon, Tom Emmer will hold a press conference to discuss his "Jobs Agenda" at Permac Industries in Burnsville, Minnesota. There's just one problem - if Tom Emmer had had his way, there wouldn't be many workers left at Permac Industries.

Permac Industries makes precision-machined parts and experienced significant losses during the economic slowdown, losing 40 percent in sales in 2009. According to news reports, the business owners did not want to lay off their workers, but could not afford to keep them on. That is until they received funding from the federal Recovery and Reinvestment Act, which Tom Emmer has vehemently opposed.

With the Recovery Act funding, Permac Industries was able to keep its employees on and actually hire new workers during the economic downturn. Now, their business has recovered and the demand for their parts has returned. But if Tom Emmer had had his way, Permac Industries would not have received the necessary funding, could not have created jobs, and would not be a success story today.

Background:

Tom Emmer has been an outspoken opponent of federal funding, especially the Recovery Act, which created and saved jobs at Permac Industries.

"Putting out a bunch of empty buckets in hopes of catching dollars raining down from Washington; that isn't leadership, that's desperation because you have no new ideas of your own." [Emmer State House office press release, 01/22/2009]

"Our citizens, our taxpayers and especially our business owners deserve better..." [Emmer State House office press release, 01/22/2009]

"We will ask them how government hinders their efforts, and how government can help. Not through phony ‘stimulus,' but through enabling them where we can, and getting out of the way when we must." [Emmer press release, 07/05/10]

Permac Industries was struggling in 2009 until they received the Federal stimulus funding and were able to keep their workers employed.

"The move by manufacturers to do more work in-house has hurt some businesses that have been suppliers. Permac Industries, a Burnsville-based company that makes precision-machined parts for a variety of industries, saw its sales fall about 40 percent in 2009 partly because customers were doing more of that work themselves, said CEO Darlene Miller. She said she knows of other precision parts makers that experienced the same drop-off in business. At Permac it occurred mostly with customers that previously ordered parts for hydraulic systems used in construction and off-road equipment, she said." [Star Tribune, 08/07/10]

"Miller's customers told her they were taking the work in-house to keep their employees occupied at a time when the overall level of manufacturing activity was down. "They figured [the recession] would be short-term, and they didn't want to lay off people," she said. Much of that business has since come back to Permac, she said. So far this year Permac's sales are up about 30 percent from 2009." [Star Tribune, 08/07/10]

Because of Recovery Act funding, Permac Industries was able to keep its workers and actually hire additional employees.

"The subsidized jobs program has provided us with a wonderful way to identify dedicated and dependable workers like Royal," said Permac Industries President Darlene Miller. Permac Industries has hired five employees through the jobs program, expanding Miller's business while training candidates for unsubsidized positions. These employees, in turn, are developing the experience needed to increase their financial independence." [Center on Budget and Policy Priorities, 09/02/10]

"Based on positive reviews from his manager, Bissonette was offered another subsidized position at Permac Industries, a precision manufacturing company in Burnsville. Through participation in the subsidized transitional work program, Bissonette gained valuable job skills, paving the way to a more permanent position at Permac Industries." [Center on Budget and Policy Priorities, 09/02/10]

"Without additional funding, employers like Permac Industries will lose the support that has made hiring workers like Bissonette possible in the midst of a difficult economic climate." [Center on Budget and Policy Priorities, 09/02/10]