As published in Toledo Business Journal - September 1, 2015
Members of the food product manufacturing roundtable held in early August
Portman focused on jobs
and economy
Regulation out of Washington
thwarting growth
In early August, US Senator Rob Portman gathered a group of food product manufacturing leaders from around northwest Ohio for a roundtable session hosted by the Center for Innovative Food Technology (CIFT) and Hirzel Canning Co.
The roundtable included representatives from third and fourth generation family-owned agricultural manufacturing businesses headquartered in northwest Ohio. Most of the participants on the roundtable were the presidents and CEOs of these companies. Portman and the company representatives discussed job training, regulations, permitting, exports, and other issues aimed at improving business performance and advancing the regional economy.
Roundtable members included US Senator Rob Portman; US Representative Bob Latta; David Beck, president and CEO, CIFT; Brian Reis, president and CEO, Ballreich’s Potato Chips; Don Mennel, chairman of the board, The Mennel Milling Co.; Bill Martin, president and CFO, Spangler Candy Co.; Steve Hirzel, president and CEO, Hirzel Canning Co.; and Jeff Davis, director of supply chain, Rudolph Foods.
The group of CEOs traveled to the Toledo area from around northwest Ohio to share their views on major issues.
“There is so much that Washington is not doing right. With better policy out of Washington, we could create so many more higher paying jobs,” stated Portman as he addressed the roundtable members and the audience in attendance. He then explained that he regularly meets with business leaders around the state to gain an understanding of the issues that are impacting business and the economy.
Ballreich’s Brian Reis explained, ”It is almost as if we have lost respect for the people that go out and work hard to build businesses. We have to do what it takes so that people can be proud of America. We appreciate the opportunity to be competitive.”
Hirzel Canning Co.’s Steve Hirzel shared similar thoughts. “There is a lot of risk taking (in food products manufacturing) vs. other industries. There is a lot of work to get products from the field to the table. We do not need any more (regulatory) challenges thrown in front of us. We are competing worldwide. As a small business, we have to be different. We are not large scale processors. Innovation starts with small business. Our ideas become new products and services.”
Representative Latta shared his thoughts with the roundtable members. “I represent 60,000 manufacturing jobs in my district. $1.9 trillion of government regulations have been placed on businesses. It is a struggle to try to meet these. Companies have to have their people dealing with government regulations instead of addressing production issues.”
Steve McNally, finance director/controller, Campbell Soup Company, raised an issue to Portman and Latta. Food labeling requirements can vary by state and manufacturing companies can be faced with producing products and having to label differently for states having their own requirements. He used the example of GMO labeling (genetically modified organisms) that is being required in Vermont beginning January 1. The company will incur millions of dollars of cost to comply with such labeling and millions of dollars of higher costs if they are forced to manage inventory for different states.
Portman explained that there is legislation in Congress requiring uniformity in labeling. The US House of Representatives has already passed H.R. 1599 which is the Safe and Accurate Food Labeling Act of 2015. Portman advised that in the fall, this legislation will be introduced in the Senate. McNally emphasized the importance of getting guidelines for uniform labeling in place before state legislation goes into effect and the high cost that businesses will face if this is delayed.
Portman followed this issue with a number of comments. “It is a competitive world. The last thing that business needs is to make it more difficult. Regulation from Washington makes it more difficult and reduces jobs.
“We must get back to a better work ethic if we are going to get back to where we need to be. Our schools have to help instill work ethic.
“There are new regulations coming down in terms of the environment and the EPA. These regulations are resulting in significant job loss. 34 power plants will be closing by 2020. This will raise electricity costs. More regulations from the top down are a real problem for our businesses,” concluded Portman.
