Overview

The Trade Adjustment Assistance for Firms (TAAF) program was established by Congress in 1974 and placed under the direction of the U.S. Department of Commerce to help American manufacturers who have been hurt by direct import competition.

Benefits

Working closely with company management, Great Lakes TAAC staff will identify your firm's strengths and weaknesses, and develop a customized adjustment plan designed to stimulate recovery and growth.

Eligibility

A firm must first be certified as "trade impacted" by the U.S. Department of Commerce, before it can receive assistance from Great Lakes TAAC.

Must be a manufacturer with wholly owned subsidiary status in Michigan, Indiana or Ohio and have been in business at least two years.

As evidence of distress caused by imports, the US Department of Commerce requires:

• A 5% decline in sales dollars or production units in the past 12 months when compared with the preceding 12 months. Alternatively, a firm can show a sales decline for a period of less than 12 months, but at least 6 months, compared to the same period a year prior.
• A loss of 5% (or 50 employees if a very large firm) of its work force during the same time period used for the sales decline.
• Some customers of the manufacturer are purchasing imported products in direct replacement of products produced by the firm, and the customers are willing to state this to the Great Lakes TAA Center staff.
• U. S. Department of Commerce import statistics support the claim that the importation of this product has increased during the past year. (The Trade Adjustment Assistance Center will determine this.)

Rates/Terms

The cost of the program is shared between the company and the U.S. Department of Commerce Economic Development Administration. There is no money given directly to the company. The funds are used to subsidize the cost of a consultant to implement approved project(s).

The cost to the firm is 25% of the cost of the diagnostic analysis and adjustment plan, and usually 50% of the cost of implementation. The total amount of implementation assistance is based on the number of employees or sales revenue, with the government share of $75,000 maximum. Certification assistance is provided free of charge.

Additional Information

Diagnostic Analysis: Once certified, your firm will begin working with Great Lakes TAAC staff on a thorough diagnostic analysis, which will serve as the basis for the adjustment plan.

This will include:

• An in-depth examination of the firm's operations including its internal and external environments.
• Specific attention to short-term problems, including financial need, that are essential to completing an adequate survey and realistic adjustment plan.
• Assistance to the firm in defining technical and financial needs that are necessary to implement an adjustment strategy.

Adjustment Plan: The adjustment plan presents the firm's strengths, weaknesses and potential problems, and includes a logical and practical strategy for recovery. Technical assistance projects that the firm wishes to undertake with the help of an outside consultant are also outlined in the plan.

Most firms choose projects in the following areas:

• Accounting Systems
• Lean Processes and Cost Reduction
• Marketing
• Production Technology
• Management Information and Control Systems
• ISO 9000, ISO 14000 and QS 9000 Certification
• Product Development

Each plan is completely customized based on the firm, its industry, and its situation. Technical assistance projects are prioritized according to the immediate needs of the company. The plan must be submitted to the Department of Commerce for approval. Once it has been approved, the implementation of the projects may begin.

Implementation:  After the approval of the adjustment plan, the firm may then proceed to the implementation phase. During this phase, the firm will work with private or public sector consultants on the projects outlined in the Adjustment Plan.

Bidding Process: The Great Lakes TAAC staff will assist in finding a consultant by aiding the firm in the following processes:

• Preparing requests for proposals (RFPs) for consulting projects;
• Selecting consultants to whom RFPs will be sent;
• Reviewing and rating of consultant responses;
• Negotiating contracts;
• Monitoring the consultants' performance and final report.

Examples of Technical Assistance The following are just a sampling of the projects that can be undertaken by your company with TAA funds.

MARKETING AND SALES:
web site development
research and development
product planning and diversification
market definition
competitor analysis
distribution and merchandising strategies
review of sales organization
product pricing
customer service audit
customer quoting
export assistance

MANUFACTURING:
quality certifications
employee training
facility and equipment layout
material handling
inventory control and scheduling
cost identification and reduction
productivity improvement
work measurement and standards
lean manufacturing
six sigma
total quality systems

MANAGEMENT AND SYSTEMS:
financial planning and restructuring
cost accounting
organizational analysis
human resource planning
MRP II system analysis and design
software selection and application

Contact

Youngstown/Warren Regional Chamber at 330.392.6140