SCHUMER URGES COMMERCE DEPT. TO BOOST JOBS IN ONTARIO COUNTY & AT CROSMAN CORP BY APPROVING TWO CRITICAL FOREIGN TRADE ZONE APPLICATIONS – FINGER LAKES BUSINESSES & CROSMAN NEED KEY MANUFACTURING STATUS TO LEVEL PLAYING FIELD WITH FOREIGN COMPETITORS & MOVE JOBS BACK FROM CHINA TO U.S.
Schumer Vows to Fight for a Key Designation From the Foreign Trade Zone Board that Would Prevent Crosman Corporation and Businesses Throughout the Finger Lakes From Being Hit With High Duties On Imported Materials – Applications Have Been Pending for Over a Year
If FTZ Application is Approved, Crosman Plans to Bring Work & Up to 25 Full- Time Jobs Back From China to Ontario County Over Next 3 Years
Schumer: Each Week of Delay Puts Crosman’s Plans to Grow Jobs at Risk; Foreign Trade Zone Would Boost Upstate NY Commerce, Increase Competitiveness and Support Jobs in Finger Lakes Region
Late last week, at Crosman Corporation in Bloomfield, U.S. Senator Charles E. Schumer vowed to fight to win quick approval of two critical foreign trade zone (FTZ) applications in Ontario County, including one for Crosman Corporation to add at least 25 new jobs in the next three years. Specifically, Schumer will push for the long-awaited approval of Ontario County’s FTZ application – which will include Wayne, Seneca, Yates, Livingston and Steuben Counties – as well as the Crosman Corporation’s application for an FTZ subzone in a letter and call to Commerce Secretary Penny Pritzker. Delays in the approvals threaten Crosman’s ability to move forward with plans this year to relocate production and assembly work now done in China to Ontario County. This new work will create a minimum of 9 new full-time positions at Crosman in 2014, and has the potential to create up to 25 new full-time positions over the next three years if Crosman can increase the number of product lines it in-sources from Asia. Foreign-trade zones are designated sites in the United States, licensed by the FTZ Board, where companies can benefit from delayed or reduced customs duties in order to level the playing field with foreign competitors.
“Crosman Corporation is one of Ontario County’s largest employers, and it’s seeking to grow even more by bringing jobs back from China to Ontario County; but their plans hinge on a foreign trade zone application that has been stalled for over a year. That’s why I’m stepping up my efforts to get Crosman and Ontario County their long-awaited foreign trade zone designation, to level the playing field with China and other foreign competitors and boost job growth,” said Schumer. “With an FTZ in hand, Crosman and businesses throughout the Finger Lakes region will save thousands on import duties, money they can pour right back into their business in the form of expanded production and new hires. This is an opportunity to reverse the trend of losing manufacturing jobs to China and actually in-source jobs to Ontario County; it’s an opportunity that cannot be delayed any longer.”
Phil Dolci, CEO of Crosman Corporation said, “Establishment of the Foreign Trade Zone will help keep our company competitive globally, increase our US manufacturing capability, and create U.S. jobs. We appreciate Senator Schumer’s attention to this initiative that will maintain New York as a global economic leader and create jobs”
Ontario County Economic Development Corporation Executive Director Mike Manikowski said, “The Ontario County Board of Supervisors and the Ontario County Economic Development Corporation wants to thank Senator Schumer for his continued support of economic development in Ontario County and the Finger Lakes Region. The Senator’s support of our Foreign Trade Zone application is greatly appreciated. The FTZ will open up more Economic Development opportunity for manufacturers not only in Ontario County, but also our surrounding counties who are participating with us in this endeavor. Crosman Corporation is one of many throughout the region that will benefit through the availability of this important economic development tool.”
Schumer explained that Crosman, which produces air-powered pellet rifles and ammunition, has anticipated the approval of its FTZ subzone – which has been pending for over a year – and budgeted accordingly in the hopes of bringing new work and new jobs to Ontario County beginning in 2014. The timely establishment of the new FTZ at Crosman is a critical component of Crosman's supply chain strategy going forward, and it will support job growth at Crosman's Ontario County facilities. With the FTZ, Crosman will be able to import parts, components, and finished goods, now used to manufacture and assemble products in China, and instead bring those parts and finished goods to Ontario County, where newly-hired local workers will assemble the finished products for warehousing and distribution to retailers. Initially, Crosman intends to in-source the production of 30,000 – 50,000 air-powered pellet guns now made in Asia, and has plans to in-source more production over the coming three years. The FTZ allows Crosman to only pay duties on the finished product, instead of requiring them to pay duties on the component parts, thus giving incentive for Crosman to manufacture products domestically. With the benefit of the FTZ, Crosman estimates the cost to manufacture its products will be at, or close to, the cost it now pays to manufacture in China. Moreover, the additional product lines that Crosman plans to in-source from Asia will provide additional business for Crosman’s local suppliers who can now produce some of the component parts for the new product lines.
Each week of delay costs Crosman in high duties and delays their plans to hire local workers. Moreover, the Ontario County Economic Development Corporation (OCEDC) believes the FTZ status could benefit other Ontario County businesses like Constellation Brands or GW Lisk. In Ontario County alone there are 54 companies now importing goods and 15 companies that are exporting goods. Schumer was joined by Crosman Corporation President Phil Dolci, Crosman Director of Operations and Supply Chain Kevin Farrelly, Ontario County IDA Executive Director Mike Manikowski, and local officials.
The Foreign Trade Zone Board, which is under the jurisdiction of the Commerce Department, estimated it could take until June 2014 or beyond to finalize and approve the Ontario County FTZ and the Crosman FTZ subzone. The Ontario County FTZ application was docketed by the federal Foreign Trade Zone board of August 22, 2013 and the public comment period closed on October 22, 2013. It has now been nearly three months and the FTZ Board has yet to grant final approval. Schumer said that the given timeline is simply unacceptable and will cost local jobs. In order to expedite the approval of the Crosman FTZ subzone, Schumer is first pushing the Foreign Trade Zone Board to swiftly approve the Ontario County FTZ, which is a necessary first step before any individual company, such as Crosman, can be approved for an FTZ subzone, and secondly pushing to expedite final approval of the Crosman FTZ subzone. The Ontario County FTZ will actually encompass not only Ontario County, but several adjoining counties including Wayne, Seneca, Yates, Livingston, and portions of Steuben. Schumer highlighted that there are many companies throughout the Finger Lakes, and others in Ontario County that stand to benefit from reduced or delayed customs duties. Furthermore, Schumer noted that a FTZ status for those counties would only increase their ability to attract new companies and investment.
Crosman is an international designer, manufacturer, and marketer of Crosman pellet, BB rifles and pistols; Copperhead ammunition, high quality Benjamin pellet rifles and ammunition; Airsoft rifles and pistols; crossbows and precision optics. Crosman was founded in Rochester in 1923 and has been a vital manufacturer and employer in the region ever since and now employs over 300 in Ontario County. Its headquartered and primary manufacturing site is in East Bloomfield, Ontario County and it also has a distribution and warehouse facility in the Town of Farmington in Ontario County.
A copy of Senator Schumer’s letter to Commerce Secretary Penny Pritzker appears below:
Dear Secretary Pritzker,
I write in strong support of the Ontario County Economic Development Corporation’s (OCEDC) application to establish a new Foreign-Trade Zone. The creation of this new Foreign-Trade Zone (FTZ) would support local employers and economic development throughout Ontario County, New York and the surrounding region. The OCEDC plans to establish this new FTZ in collaboration with five adjacent counties including Wayne, Seneca, Yates, Livingston, and Steuben, all of which would be included within the FTZ’s service area. This letter follows a similar letter sent to Executive Secretary McGilvray regarding the same issue. I have yet to receive a response from Mr. McGilvray’s office.
This new regional FTZ will open the doors to new job opportunities, exports, and investment through the Finger Lakes region and assist existing companies to grow in this region. Specifically, the FTZ’s first planned user, Crosman Corporation, is requesting a Usage-Driven site within the OCEDC’s application and is planning to activate their operations immediately upon approval of the application. Crosman ranks as one of this region’s top manufacturing employers and is an integral part of the local economy since its founding in Rochester in 1923. Moreover, Ontario County EDC is currently investigating how the FTZ will benefit other large employers such as Constellation Brands or GW Lisk. As you well know, FTZs are intended to create and maintain employment by supporting manufacturing and value added in the United States which, for customs reasons, might otherwise be carried on abroad. Thus, this FTZ authority is critical to ensuring Crosman can remain competitive with foreign firms selling similar products overseas.
I believe that the OCEDC has demonstrated the need for this new FTZ and I respectfully urge the Board to expeditiously review and approve this application on behalf of this six-county region and its first user, Crosman Corporation. FTZ authority will allow Crosman to remain competitive with offshore producers of competing products and keep jobs in Ontario County, New York. The application to establish a new zone in Ontario County, New York was docketed by the FTZ Board on August 22, 2013 and the public comment period closed October 28, 2013. I ask for your timely consideration of this application and request that you please keep my office well-informed of developments as this evaluation continues.
Thank you for your attention to this important matter.
Sincerely,
Charles E. Schumer
United States Senator