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Supply Chain Resiliency and the Role of Small Manufacturers (House Small Business subcommittee hearing, April 29, 2021)

Summary

The printed record of a hearing, Supply Chain Resiliency and the Role of Small Manufacturers, held April 29, 2021 by the Subcommittee on Economic Growth, Tax, and Capital Access of the House Committee on Small Business, Small Business Committee Document Number 117–010. Hon. Sharice Davids and Hon. Dan Meuser gave opening statements. Four witnesses testified: Claudio Dente, President of DenTec Safety Specialists, Lenexa, KS; Wes Hampp, Co-Founder and Managing Partner of Holleway Capital Partners, LLC, Overland Park, KS; Kimberly Glas, President and CEO of the National Council of Textile Organizations; and David Taylor, President and CEO of the Pennsylvania Manufacturers' Association. Additional material came from the Alliance for American Manufacturing, CATO, the Job Creators Network and others.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Supply Chain Resiliency and the Role of Small Manufacturers (House Small Business subcommittee hearing, April 29, 2021).” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/supply-chain-resiliency-and-the-role-of-small-manufacturers-house-smal-ebe0d84c02/, SHA-256 c32b92ca8b9670270cefbdcf93c215837c605e5bc4defc9d871e91c402c6e6dc.

Full text

                                                                   SUPPLY CHAIN RESILIENCY AND THE ROLE OF
                                                                            SMALL MANUFACTURERS


                                                                                                  HEARING
                                                                                                         BEFORE THE


                                                              SUBCOMMITTEE ON ECONOMIC GROWTH,
                                                                   TAX, AND CAPITAL ACCESS
                                                                                                            OF THE


                                                                       COMMITTEE ON SMALL BUSINESS
                                                                              UNITED STATES
                                                                        HOUSE OF REPRESENTATIVES
                                                                             ONE HUNDRED SEVENTEENTH CONGRESS
                                                                                                       FIRST SESSION


                                                                                                       HEARING HELD
                                                                                                       APRIL 29, 2021




                                                                                Small Business Committee Document Number 117–010
                                                                                  Available via the GPO Website: www.govinfo.gov



                                                                                           U.S. GOVERNMENT PUBLISHING OFFICE
                                                                    44–563                             WASHINGTON : 2021




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                                                                                    HOUSE COMMITTEE ON SMALL BUSINESS
                                                                                       NYDIA VELÁZQUEZ, New York, Chairwoman
                                                                                                JARED GOLDEN, Maine
                                                                                                JASON CROW, Colorado
                                                                                               SHARICE DAVIDS, Kansas
                                                                                              KWEISI MFUME, Maryland
                                                                                              DEAN PHILLIPS, Minnesota
                                                                                               MARIE NEWMAN, Illinois
                                                                                           CAROLYN BOURDEAUX, Georgia
                                                                                                 JUDY CHU, California
                                                                                            DWIGHT EVANS, Pennsylvania
                                                                                            ANTONIO DELGADO, New York
                                                                                          CHRISSY HOULAHAN, Pennsylvania
                                                                                                ANDY KIM, New Jersey
                                                                                               ANGIE CRAIG, Minnesota
                                                                                    BLAINE LUETKEMEYER, Missouri, Ranking Member
                                                                                               ROGER WILLIAMS, Texas
                                                                                              JIM HAGEDORN, Minnesota
                                                                                              PETE STAUBER, Minnesota
                                                                                              DAN MEUSER, Pennsylvania
                                                                                             CLAUDIE TENNEY, New York
                                                                                           ANDREW GARBARINO, New York
                                                                                                YOUNG KIM, California
                                                                                               BETH VAN DUYNE, Texas
                                                                                               BYRON DONALDS, Florida
                                                                                               MARIA SALAZAR, Florida
                                                                                            SCOTT FITZGERALD, Wisconsin

                                                                                          MELISSA JUNG, Majority Staff Director
                                                                                     ELLEN HARRINGTON, Majority Deputy Staff Director
                                                                                             DAVID PLANNING, Staff Director




                                                                                                                  (II)




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                                                                                                             CONTENTS
                                                                                                          OPENING STATEMENTS
                                                                                                                                                                                           Page
                                                              Hon. Sharice Davids ................................................................................................           1
                                                              Hon. Dan Meuser .....................................................................................................          3

                                                                                                                     WITNESSES
                                                              Mr. Claudio Dente, President, DenTec Safety Specialists, Lenexa, KS ..............                                             6
                                                              Mr. Wes Hampp, Co-Founder & Managing Partner, Holleway Capital Part-
                                                               ners, LLC, Overland Park, KS ............................................................................                     7
                                                              Ms. Kimberly Glas, President & CEO, National Council of Textile Organiza-
                                                               tions, Washington, DC .........................................................................................               9
                                                              Mr. David Taylor, President & CEO, Pennsylvania Manufacturers’ Associa-
                                                               tion, Harrisburg, PA ............................................................................................            10

                                                                                                                      APPENDIX
                                                              Prepared Statements:
                                                                  Mr. Claudio Dente, President, DenTec Safety Specialists, Lenexa, KS .......                                               21
                                                                  Mr. Wes Hampp, Co-Founder & Managing Partner, Holleway Capital
                                                                    Partners, LLC, Overland Park, KS .............................................................                          26
                                                                  Ms. Kimberly Glas, President & CEO, National Council of Textile Organi-
                                                                    zations, Washington, DC ..............................................................................                  34
                                                                  Mr. David Taylor, President & CEO, Pennsylvania Manufacturers’ Asso-
                                                                    ciation, Harrisburg, PA ................................................................................                43
                                                              Questions for the Record:
                                                                  None.
                                                              Answers for the Record:
                                                                  None.
                                                              Additional Material for the Record:
                                                                  Alliance for American Manufacturing ............................................................                          47
                                                                  American Fashion Network (AFN) .................................................................                          50
                                                                  CATO .................................................................................................................    53
                                                                  Job Creators Network (JCN) Statement of Carlos Ruiz ...............................                                      120
                                                                  Job Creators Network (JCN) Statement of Guy Berkebile ...........................                                        121
                                                                  Manufactured Housing Institute (MHI) .........................................................                           123
                                                                  National Waste & Recycling Association ........................................................                          125




                                                                                                                            (III)




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                                                                   SUPPLY CHAIN RESILIENCY AND THE ROLE
                                                                         OF SMALL MANUFACTURERS


                                                                                           THURSDAY, APRIL 29, 2021

                                                                                  HOUSE OF REPRESENTATIVES,
                                                                                   COMMITTEE ON SMALL BUSINESS,
                                                                                 SUBCOMMITTEE ON ECONOMIC GROWTH,
                                                                                                  TAX, AND CAPITAL ACCESS,
                                                                                                                Washington, DC.
                                                                 The Subcommittee met, pursuant to call, at 1:00 p.m., via Zoom
                                                              platform. Hon. Sharice Davids [chairwoman of the Subcommittee]
                                                              presiding.
                                                                 Present: Representatives Davids, Newman, Evans, Andy Kim,
                                                              Meuser, Van Duyne, and Donalds.
                                                                 Chairwoman DAVIDS. Good afternoon, everybody. I call this
                                                              hearing to order.
                                                                 Without objection, the Chair is authorized to declare a recess at
                                                              any time.
                                                                 I want to thank everyone, especially our witnesses for joining us
                                                              today for our Subcommittee’s remote hearing. I want to make sure
                                                              to note some important requirements.
                                                                 Let me begin by saying that the standing House and Committee
                                                              rules and practice will continue to apply during remote pro-
                                                              ceedings. All members are reminded that they are expected to ad-
                                                              here to these standing rules including decorum when they are par-
                                                              ticipating in any remote event.
                                                                 With that said, the technology we are utilizing today requires us
                                                              to make some small modifications to ensure that the members can
                                                              fully participate in these proceedings. House regulations require
                                                              members to be visible through a video connection throughout the
                                                              proceeding, so please keep your cameras on. Also, if you participate
                                                              in another proceeding, please exit and log back in later.
                                                                 In the event a member encounters technical issues that prevent
                                                              them from being recognized for their questioning, I will move to the
                                                              next available member of the same party. I will recognize that
                                                              member at the next appropriate time slot provided they have re-
                                                              turned to the proceeding.
                                                                 Should a member’s time be interrupted by technical issues, I will
                                                              recognize that member for the next appropriate spot for the re-
                                                              mainder of their time once their issues have been resolved. In the
                                                              event a witness loses connectivity during testimony or questioning,
                                                              I will preserve their time as the staff addresses the technical issue.
                                                              I may need to recess the proceedings to provide time for the wit-
                                                              ness to reconnect.
                                                                                                                  (1)




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                                                                 And finally, remember to remain muted until you are recognized
                                                              to minimize background noise.
                                                                 In accordance with the rules established under H.R. 965, staff
                                                              have been advised to mute participants only in the event that there
                                                              is inadvertent background noise. Should a member wish to be rec-
                                                              ognized, they must unmute themselves and seek recognition at the
                                                              appropriate time.
                                                                 All right. Well, the COVID-19 pandemic has exposed long-
                                                              standing weaknesses in global supply chains. As countries around
                                                              the world shut down to slow the spread of the virus, entire sections
                                                              of the domestic and global economies were brought to a standstill.
                                                              In the United States, businesses across every sector suffered supply
                                                              shortages. Gaps in supply chain had a substantial impact on our
                                                              fight against COVID. The scarcity of personal protective equipment
                                                              forced medical professionals on the frontlines to fight the virus
                                                              with garbage bags as gowns and coffee filters as masks.
                                                                 At the same time, we saw insufficient supply in critical indus-
                                                              tries like clothing manufacturing, electronic components, and agri-
                                                              culture. In total, nearly 80 percent of U.S. businesses experienced
                                                              a disruption in their supply chain. These disruptions often hit
                                                              small businesses the hardest. Small firms regularly have limited
                                                              inventory, depend on lower costs from overseas suppliers, and do
                                                              not have the margins to sustain extended product shortages.
                                                                 While small businesses are uniquely vulnerable to disruptions,
                                                              they also play a pivotal role in building more resilient supply
                                                              chains. Small firms are agile and adapt to changing market condi-
                                                              tions more quickly than large corporations. Small manufacturers
                                                              can also quickly adapt their business models to meet changing de-
                                                              mands. As we saw last year when small distillers began producing
                                                              hand sanitizer, independent manufacturers can shift operations to
                                                              meet the needs of their communities. These small domestic manu-
                                                              facturers will play a critical role as we seek to strengthen our sup-
                                                              ply chains and prepare for future economic disruption.
                                                                 That is why we have to recognize the significant obstacles that
                                                              these enterprises face in a post-COVID world and work to address
                                                              those. The overall manufacturing sector could take longer than 5
                                                              years to recover to the pre-crisis GDP levels. To return to pre-pan-
                                                              demic output, factories are going to need to address various chal-
                                                              lenges related to meeting new health and sanitation requirements.
                                                              This will require the implementation of new systems, the adoption
                                                              of digital technologies to protect their workers, and modernization
                                                              in the wake of the pandemic.
                                                                 To meet these challenges, small manufacturers will need reliable
                                                              access to affordable capital. Unfortunately, these firms traditionally
                                                              have a much harder time obtaining funding than their larger coun-
                                                              terparts. This leads many to rely on antiquated equipment and fa-
                                                              cilities with lower productivity. Without increased access to afford-
                                                              able capital, small manufacturers will find it difficult to find the
                                                              upgrades necessitated by the pandemic further weakening Amer-
                                                              ica’s manufacturing base.
                                                                 Fortunately, the Small Business Administration has several pro-
                                                              grams in place that small manufacturers can take advantage of.
                                                              Every year, the 7(a) loan guarantee program, the 504/CDC loan
                                                              guarantee program, and the Small Business Investment Company




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                                                              Program supply small manufacturers with billions of dollars in cap-
                                                              ital on favorable terms. This money helps these businesses pay for
                                                              fixed assets, purchase new equipment, access venture capital, and
                                                              finance a variety of other expenditures. We must utilize these pro-
                                                              grams and others to strengthen our manufacturing base and avoid
                                                              future supply chain disruptions.
                                                                 That is why I fought to secure $10 billion for the Defense Produc-
                                                              tion Act in the American Rescue Plan, to ramp up domestic produc-
                                                              tion of critical supplies. It is also why I recently introduced the
                                                              Supplies Act, a bill that would create $100 million grant program
                                                              to increase domestic manufacturing of medical supplies by our
                                                              small businesses. I hope that today’s hearing gives us a chance to
                                                              find more ways to empower small manufacturers and improve the
                                                              SBA lending program to serve them.
                                                                 I now yield to the Ranking Member for his opening statement.
                                                                 Mr. MEUSER. Thank you, Madam Chairwoman. I appreciate it
                                                              very much. I certainly appreciate our witnesses appearing with us
                                                              today.
                                                                 Am I coming through okay, Madam Chair? Okay, great.
                                                                 Coming from a manufacturing background, I am very much look-
                                                              ing forward to this hearing and hearing from all on some ideas,
                                                              suggestions that the Federal Government and the U.S. Congress
                                                              can engage in to improve our strength and ability for small manu-
                                                              facturers, and all manufacturers for that matter. And I thank you,
                                                              Madam Chairwoman. I appreciate your convening today’s hearing
                                                              on this very important topic. Given the great influence these busi-
                                                              nesses have on our national economy, I think it is particularly ap-
                                                              propriate that we dedicate the Subcommittee’s first hearing for one
                                                              of America’s most vital industries. In fact, it is difficult to overstate
                                                              the importance of manufacturing to our economy. At a microlevel,
                                                              manufacturing is a significant job creator, reaching higher than av-
                                                              erage salaries, raising the standard of living for millions of Ameri-
                                                              cans across the country. Pennsylvania manufacturers account for
                                                              over 12 percent of the total output in the state, employing nearly
                                                              600,000 individuals directly and 10 percent of our workforce. Penn-
                                                              sylvania manufacturers help sustain millions of additional jobs up
                                                              and down the supply change. Prior to the pandemic, total manufac-
                                                              turing was almost $100 billion in 2019.
                                                                 Manufacturing is also a most significant of a multiplier effect. It
                                                              generates more economic activity than any other economic sector.
                                                              For every dollar spent in manufacturing from the private sector,
                                                              another $1.89 is added to the overall economy. At a microlevel,
                                                              manufacturing drives productivity growth which drives R&D
                                                              growth.
                                                                 Productivity growth is the lifeblood of technological development.
                                                              The bulk of innovation happens in manufacturing growth from
                                                              other sectors and springs from innovation within the sector. Given
                                                              its significance, this hearing should help us understand top con-
                                                              cerns threatening the industry. The workforce crisis in manufac-
                                                              turing in Pennsylvania, and I am sure in most states, is exas-
                                                              perated by the gradual retirement of an aging workforce and nega-
                                                              tive perception of manufacturing by the younger generation. That
                                                              is why we need more tours and more career technical investments
                                                              because these manufacturing facilities are far cleaner and they are




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                                                              not the traditional manufacturing of our fathers’ days. A skills gap
                                                              resulting from declining science, technology engineering in the U.S.
                                                              and the inability to recruit qualified candidates in skilled produc-
                                                              tion line positions. These struggles are only one piece of the broad-
                                                              er picture.
                                                                 Outsourcing of U.S. manufacturing to foreign nations, from
                                                              China, most of Southeast Asia and down the list, we have driven
                                                              supply chains vulnerable to failure and exploitation by foreign ac-
                                                              tors weakening our national position in defense, health, and all
                                                              other sectors. The aggressive economic tactics by competitive Na-
                                                              tions creating global market distortions which will depress competi-
                                                              tion.
                                                                 On top of all this, the maze of Federal acquisition processes, like
                                                              the contract timelines and emergency clearances and accounting re-
                                                              quirements creates significant hurdlers for U.S. manufacturers and
                                                              all businesses for that matter seem to grow and thrive in the Fed-
                                                              eral marketplace, as well as a tendency for the U.S. not to create
                                                              the most competitive atmosphere and truly appreciate that is what
                                                              draws manufacturing to the U.S. from other countries who compete
                                                              on a global scale. All manufacturers in particular hit hardest by
                                                              such challenges.
                                                                 Even though the overall picture might seem quite challenging,
                                                              the silver lining in this is the power of the small manufacturers
                                                              will reshape our Nation. Many small manufacturers do not make
                                                              finished products but are a source for many domestic manufactur-
                                                              ers of finished products. From my business career in manufac-
                                                              turing, close to 25 years, I know firsthand the importance of reli-
                                                              able, quality, cost-effective, financially solvent supply chain.
                                                                 Given any impact to small manufacturers, positive or negative
                                                              that can cause a significant ripple throughout the rest of our econ-
                                                              omy, we as members of Congress need to consider carefully our
                                                              policies and their impact on these essential businesses, especially
                                                              now as we are recovering from the pandemic. In short, manufac-
                                                              turing matters. I look forward to the testimony of the witnesses
                                                              today and I yield back. Thank you.
                                                                 Chairwoman DAVIDS. Thank you, Mr. Meuser. The gentleman
                                                              yields back.
                                                                 I would like to take a moment to explain how this remote hear-
                                                              ing will proceed. Each witness will have 5 minutes to provide a
                                                              statement, and each Committee member will have 5 minutes for
                                                              questions. Please ensure that your microphone is on when you
                                                              begin speaking and that you return to mute when you have fin-
                                                              ished.
                                                                 I would now like to introduce our witnesses.
                                                                 Our first witness is Mr. Claudio Dente. Mr. Dente is the presi-
                                                              dent of Dentec Safety Specialists, a manufacturer of personal pro-
                                                              tective equipment located in Lenexa, Kansas, which is in my home
                                                              district. His business had to pivot at the height of the pandemic in
                                                              order to meet the sharp increase in demand for PPE and face se-
                                                              vere supply chain management challenges. I am looking forward to
                                                              hearing about how Dentec adapted to the market conditions
                                                              brought on by the pandemic. Welcome, Mr. Dente.
                                                                 Our second witness is Mr. Wes Hampp. Mr. Hampp is the co-
                                                              founder and managing partner of Holleway Capital Partners, an




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                                                              SBA-licensed small business investment company (SBIC) located in
                                                              my district that targets small manufacturers in the Greater Mid-
                                                              west and Southern U.S. His insights are critical for us to learn how
                                                              SBA’s capital programs, such as SBIC, can play a role in helping
                                                              finance the future of our domestic manufacturing base. Welcome,
                                                              Mr. Hampp.
                                                                 And then our third witness today is Ms. Kimberly Glas, presi-
                                                              dent and CEO of the National Council of Textile Organizations.
                                                              NCTO represents and advocates for domestic textile manufactur-
                                                              ers, the vast majority of whom are small businesses. Prior to join-
                                                              ing NCTO, Ms. Glass held positions at the Department of Com-
                                                              merce as the deputy assistant secretary for textiles, consumer
                                                              goods and materials, and led the Blue Green Alliance. Your long
                                                              history and expertise in this industry will certainly help us craft
                                                              a path forward for small business manufacturers. Welcome, Ms.
                                                              Glass.
                                                                 And I would like to now yield to our Ranking Member, Mr.
                                                              Meuser, to introduce our final witness.
                                                                 Mr. MEUSER. I thank you, Madam Chairwoman, very much.
                                                                 I would like to welcome our final witness who is from the great
                                                              Commonwealth of Pennsylvania, Mr. David Taylor. Mr. Taylor is
                                                              the president and chief executive officer of the Pennsylvania Manu-
                                                              facturers’ Association (PMA), the century-old statewide trade orga-
                                                              nization representing the hardworking manufacturers throughout
                                                              the Commonwealth. PMA is the official Pennsylvania state partner
                                                              of the National Association of Manufacturers (MAN), the Nation’s
                                                              foremost advocate for manufacturers representing 14,000 member
                                                              companies across the country in every industrial sector. Mr. Taylor
                                                              brings with him a wealth of knowledge and experience having
                                                              spent over 2 decades with PMA as its spokesman in the state cap-
                                                              itol and as a leader. Mr. Taylor is a frequently sought-after guest
                                                              and commentator by media outlets across the Commonwealth, and
                                                              we are fortunate to have him here with us today.
                                                                 In addition to his role at PMA, Mr. Taylor serves as Chairman
                                                              of the Pennsylvania Leadership Council. He is a member of the
                                                              American Institute’s Leadership Network. He currently serves as a
                                                              member of the Executive Committee of the Conference of State
                                                              Manufacturers’ Association. He is on the Board of Directors of the
                                                              Pennsylvania Steel Alliance, Foundation for Free Enterprise Edu-
                                                              cation, Business Industry Political Action Committee, the Lincoln
                                                              Institute for Public Opinion Research. He serves as the board presi-
                                                              dent of REACH cyber charter school, an online public school pro-
                                                              viding a broad range of science, technology, engineering, and math
                                                              enrichment of students. Prior to joining PMA, Mr. Taylor worked
                                                              for the United States Senate and the Senate of Pennsylvania. He
                                                              is a native of Huntington, Pennsylvania where I was just last
                                                              weekend and a graduate of Dickinson College.
                                                                 Mr. Taylor, thank you for all that you do for Pennsylvania and
                                                              for your participation today. We look forward to your testimony
                                                              and I yield back.
                                                                 Chairwoman DAVIDS. Thank you for doing that introduction.
                                                                 Mr. Dente, we are going to go ahead and get started. You are
                                                              recognized for 5 minutes.




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                                                              STATEMENTS OF CLAUDIO DENTE, PRESIDENT, DENTEC SAFE-
                                                               TY SPECIALISTS; WES HAMPP, CO-FOUNDER & MANAGING
                                                               PARTNER, HOLLEWAY CAPITAL PARTNERS, LLC; KIMBERLY
                                                               GLAS, PRESIDENT & CEO, NATIONAL COUNCIL OF TEXTILE
                                                               ORGANIZATIONS; DAVID TAYLOR, PRESIDENT & CEO, PENN-
                                                               SYLVANIA MANUFACTURERS’ ASSOCIATION
                                                                                      STATEMENT OF CLAUDIO DENTE
                                                                 Mr. DENTE. Sorry about that. Wrong button.
                                                                 I appreciate it very much, Madam Chair. I appreciate the oppor-
                                                              tunity to participate in this conversation.
                                                                 I would like to let you know first that I am a 41-year veteran
                                                              of personal protective equipment and manufacturing, distribution,
                                                              and design. I know nothing but this industry. I am going to share
                                                              with you my journey through this experience.
                                                                 I purchased a respirator manufacturing operation located in the
                                                              Kansas City, Kansas area called U.S. Safety. That company had
                                                              been manufacturing reusable respirators, filters, and cartridges for
                                                              some 40-plus odd years. My interest in the business was because
                                                              respiratory protection is a critical product in our industry and be-
                                                              cause I have been through all the viruses, and I wanted to be able
                                                              to bring a product to market that was manufactured and assem-
                                                              bled in the United States.
                                                                 The effect of COVID, what happened, I was in New York when
                                                              it first hit. I was traveling on business. It was in February. The
                                                              news started to spread. From New York I went to Kansas and
                                                              then, of course, COVID blew up. It was like something I have never
                                                              seen or experienced, all of us have. Quickly, the supply or dispos-
                                                              able N95 respirators, surgical masks from overseas, and also from
                                                              domestic supply completely collapsed. Nothing was available.
                                                                 Fortunately for us and our business, we manufacture reusable
                                                              rubber half masks and an N95 filter in our facility. We quickly de-
                                                              ployed a marketing campaign to the marketplace, and it became an
                                                              incredible success because we were able to help not only healthcare
                                                              workers but general industry for those that could keep working.
                                                              However, folks, the orders were overwhelming for a company of our
                                                              size. They were massive. They continued to hit us with orders
                                                              every single day.
                                                                 My team worked 6-, 7-day weeks, 2 shifts, 10-12 hour days. I do
                                                              not know how they did it and I do not know how they still do it.
                                                              God bless them. We experienced everything that you could imag-
                                                              ine—raw material shortages, equipment breakdowns, employees
                                                              coming and going. Very, very difficult. So, in summary, surge de-
                                                              mand orders, which I had been through in the past unlike what I
                                                              have seen here during COVID, are absolutely enormous. Not only
                                                              for a small business but also for a big business.
                                                                 And the challenges that when you have to set up and get going
                                                              are equipment, which are molds. Everything I make is plastic or
                                                              rubber, so we are dependent on molds and injection molding ma-
                                                              chines. We are dependent on cycle time. My product has a lot of
                                                              hand assembly to it. So, you have to make arrangements to acquire
                                                              those goods in a fashionable time. Fortunately, we received a grant
                                                              and funding from the CARE/SPARKS program, and we have mod-
                                                              ernized our facility in a manner that I did not dream was possible




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                                                              in the next 10 years. The next time you come, Ms. Davids, I think
                                                              you will be quite impressed.
                                                                We also had enormous space challenges, as you can appreciate.
                                                              When you have to make product of this magnitude, it is absolutely
                                                              incredible. So, all of these are expenses that we have to incur. And
                                                              as an entrepreneur and an owner of a business, you are fearful of
                                                              committing yourself beyond when the pandemic resides.
                                                                So, a couple of recommendations that I would like to pose to the
                                                              Committee are that instead of not only subsidizing people during
                                                              a time, critical businesses like ours, help us hire people by sub-
                                                              sidizing an additional wage to them, an hourly wage. Rather, this
                                                              would create tax income as well and not just debt.
                                                                Staffing, of course, was a challenge to hire people. What I ask,
                                                              when you identify critical businesses such as ours, perhaps we
                                                              could have access to some military personnel to help us ramp up.
                                                              They are process oriented, great workers, wonderful personalities,
                                                              and if we could have access to people like that for a short period
                                                              of time while we ramp up it would make an enormous difference
                                                              for us as a business.
                                                                And then finally, financing. We want to be careful again as an
                                                              entrepreneur and an owner, I do not want to extend myself beyond
                                                              because it as quickly as COVID came upon us, all of a sudden it
                                                              will stop and then you are stuck with the overhead, capital invest-
                                                              ment and so forth and loans. So, my suggestion would be to—of
                                                              course, grants are fantastic for those that are worthy of it, but also
                                                              loans in a manner that are not as challenging and maybe recognize
                                                              the concerns of when the event subsides. Thank you very much.
                                                                Chairwoman DAVIDS. Mr. Hampp, you are now recognized for
                                                              5 minutes.
                                                                                           STATEMENT OF WES HAMPP
                                                                 Mr. HAMPP. Thank you, Chair Davids, Ranking Member
                                                              Meuser, and members of the Subcommittee. Thank you for inviting
                                                              me to testify at this important hearing.
                                                                 My name is Wes Hampp. As Chair Davids said, I am a cofounder
                                                              and managing partner of Holloway Capital Partners. We are a
                                                              small business investment company (SBIC). We are headquartered
                                                              in St. Louis but we have an office in Overland Park, Kansas where
                                                              I sit. We focus on investing in small manufacturers throughout the
                                                              Midwest.
                                                                 I am going to highlight several challenges with the U.S. supply
                                                              chain we are experiencing in our portfolio companies and suggest
                                                              a few solutions.
                                                                 Challenge 1. COVID-19 exposed our country’s massive reliance
                                                              on China and our supply chain across nearly all industry sectors.
                                                              While U.S. businesses compete successfully in a global economic
                                                              environment, there are positive economic arguments for global sup-
                                                              ply chains but COVID-19 exposed an urgent need for more domes-
                                                              tic manufacturing to reduce our reliance on imports.
                                                                 Manufacturing is an interconnected ecosystem where the impacts
                                                              on any one business can affect other associated businesses. The
                                                              Paycheck Protection Program (PPP) was a lifesaver and helped sta-
                                                              bilize the financial uncertainty many small businesses faced in the
                                                              early days of the pandemic. Today, however, domestic supply




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                                                              chains are in a state of chaos. Prices are rising, in some cases 25
                                                              percent week to week, and lead times have been extended in some
                                                              cases four times longer than pre-pandemic levels. PPP allowed
                                                              many small businesses to surge back but many of their larger com-
                                                              pany suppliers lost their workforces and were unable to quickly re-
                                                              start and return to pre-pandemic production levels which has led
                                                              to domestic supply chain disruptions.
                                                                 After COVID-19 hit last year, some large companies that supply
                                                              products to smaller manufacturers stopped making growth invest-
                                                              ments, shuttered capacity, and even laid off employees. As demand
                                                              rebounded in late 2020 and so far this year, these larger suppliers
                                                              are now struggling to hire and train employees to ramp output to
                                                              meet demand. In some cases, it appears that supply chain disrup-
                                                              tions may have been an unintended consequence of limiting PPP to
                                                              small businesses.
                                                                 Challenge 3, our biggest challenge facing small manufacturers is
                                                              labor supply. Small manufacturers are unable to find employees to
                                                              fill open positions which is hindering our growth. In some cases,
                                                              our companies have raised starting wages 20 percent but positions
                                                              remain unfulfilled. This issue is currently more acute for unskilled
                                                              entry-level positions but is a challenge for skilled labor as well.
                                                                 These are the key challenges. Let me offer a few solutions.
                                                                 Solution 1. Access to patient capital is critical for domestic small
                                                              businesses in order to keep the U.S. competitive and strengthen
                                                              supply chains. Since SBICs invest exclusively in domestic compa-
                                                              nies, and heavily in manufacturing, they are an excellent vehicle
                                                              to get capital to small manufacturers. Congress should support
                                                              policies that reward and encourage SBIC investments and not do
                                                              anything to hinder the program’s success. Particularly, lawmakers
                                                              should support more equity investing in U.S. small businesses that
                                                              otherwise need to rely on debt financing where in some cases eq-
                                                              uity is more appropriate.
                                                                 Congress should write tax policies that encourage, not discour-
                                                              age, long-term investing in America’s small businesses. Before Con-
                                                              gress doubles the capital gains rate, I would implore you to con-
                                                              sider what doing so would do to small business owners across the
                                                              country, especially older entrepreneurs that are beginning to ex-
                                                              plore retirement. Small business owners build their businesses over
                                                              years, even the majority of a lifetime. They typically get to sell that
                                                              investment once. And when the entrepreneur sells their business
                                                              it is commonly going to generate more than $1 million in income
                                                              but that nest egg kind of becomes what they expect to live on for
                                                              the rest of their lives. If capital gains taxes are raised, there should
                                                              be serious consideration given to investments in American small
                                                              businesses.
                                                                 Solution 3. Our leaders in government, business, and education
                                                              should work together to promote and provide opportunities to learn
                                                              skilled trades through apprenticeships and technical education.
                                                              Finding workers is one of the biggest problems in the manufac-
                                                              turing sector and it is holding back small business growth and na-
                                                              tional economic growth. Four-year college degrees are not for every-
                                                              one and people can make good livings working in the trades and
                                                              support manufacturing. And these types of careers should be sup-
                                                              ported and encouraged.




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                                                                Thank you again for the opportunity to testify before the Sub-
                                                              committee, and I welcome your questions.
                                                                Chairwoman DAVIDS. Thank you, Mr. Hampp.
                                                                Ms. Glas, you are now recognized for 5 minutes.

                                                                                      STATEMENT OF KIMBERLY GLAS
                                                                 Ms. GLAS. Thank you so much for the opportunity to testify be-
                                                              fore you today. I am the president and CEO of the National Coun-
                                                              cil of Textile Organizations and I represent the domestic textile in-
                                                              dustry and the 539,000 workers it employs. We are predominantly
                                                              comprised of small businesses.
                                                                 Today’s focus on supply chains and bolstering our small busi-
                                                              nesses is an incredible opportunity. There are immense challenges
                                                              faced by our industry as a result of this pandemic. Literally, over-
                                                              night, billions of orders were canceled. And I was looking out at an
                                                              industry that was really confronting bankruptcy.
                                                                 In the spring of last year when PPE shortages were hitting every
                                                              front line, and workers were wearing garbage bags as gowns or
                                                              reusing N95 masks, our industry really stepped up. But it is impor-
                                                              tant for me to highlight that the reason that these supply chains
                                                              broke down was that our predominant supply for these items was
                                                              in China. And Chinese subsidies, coupled with significant global
                                                              demand, exacerbated by export controls placed by the Chinese on
                                                              certain products and raw materials, had a cascading impact that
                                                              we were reading on the front pages.
                                                                 Simply put, it was like fighting a fire with a garden hose on
                                                              every front. U.S. textile manufacturers quickly mobilized. Virtually
                                                              overnight, our members were able to retool supply chains to make
                                                              over a billion face masks, isolation gowns, and other textile compo-
                                                              nents. In fact, I am in New York’s garment district right now and
                                                              this garment district played a significant role in retooling their
                                                              supply chain.
                                                                 In order to help the Nation’s PPE crisis, manufacturers retooled
                                                              overnight, but they had to purchase expensive equipment at a time
                                                              when capital was really uncertain and at a considerable expense.
                                                              In addition, industry needed to expend significant resources to en-
                                                              sure safe workplaces to get workers back to work and purchase the
                                                              raw materials necessary to making lifesaving PPE. Please note
                                                              that while PPE was important for our frontline workers, it did not
                                                              make up for the significant loss of orders of normal business in our
                                                              industry. Industrial expenses were vast and wide-ranging, includ-
                                                              ing everything from health and safety measures, to thermometers,
                                                              to more pay for workers, to bringing them back on the job. We ap-
                                                              preciate that there are many solutions necessary for small textile
                                                              manufacturers to weather the challenges of the pandemic and the
                                                              crisis that we are still confronting.
                                                                 For many of our small businesses, SBS programs serve an impor-
                                                              tant role. Many of our companies take advantage of everything
                                                              from the Paycheck Protection Program to Main Street lending, 7(a)
                                                              loans and 504 loans. Our members really appreciate the aspect of
                                                              the SBA loans, including the lower down payment and extended
                                                              payment term. These advantages, however, are sometimes offset by
                                                              other factors that disincentivize their use. And I have several key




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                                                              solutions to project for the Committee, and for you all to consider
                                                              moving forward.
                                                                First, we think that we need to reform our domestic procurement
                                                              rules for federal purchases of PPE. Right now, we need to extend
                                                              the Berry Amendment rules for our military for PPE items that are
                                                              purchased by other agencies across the Federal Government. We
                                                              appreciate the president’s ‘‘Build Back Better’’ initiative to
                                                              strengthen our supply chains, but we need legislation to move for-
                                                              ward. We want to highlight that Congressman McHenry from
                                                              North Carolina and Congressman Bill Pascrell from New Jersey
                                                              have co-sponsored the American PPE Supply Chain Integrity Act
                                                              which does just that.
                                                                In addition, we believe that there needs to be more tools and in-
                                                              vestments in small businesses to manufacture these products mov-
                                                              ing forward. We appreciate the support for the Defense Production
                                                              Act, but we also need Federal protection grants and tax credits to
                                                              ensure manufacturing capacity.
                                                                Chairwoman Davids, I want to highlight your bill as well. The
                                                              $100 million fund set aside for small businesses is an important
                                                              tool moving forward, but we need more tools moving ahead.
                                                                Further, private sector investment is important to U.S. supply
                                                              chains and can be bolstered by contracting reforms that promote
                                                              long-term contracts for U.S. suppliers. We need a demand signal.
                                                              In fact, our industry is starting to see orders dry up for PPE. We
                                                              have had 60-day contracts and 90-day contracts. We need certain
                                                              set-asides for small businesses, but we should ensure that when we
                                                              are providing contracts to small businesses, those companies can
                                                              deliver and have the capital necessary to help the U.S. Govern-
                                                              ment.
                                                                And the last recommendation I had is to ensure that the SBA
                                                              loan process is streamlined and that communication is better with
                                                              borrowers. During the height of the pandemic, it was difficult for
                                                              some of our manufacturers to tap into the resources because they
                                                              simply did not know where the paperwork trail would eventually
                                                              begin.
                                                                Our industry is ready to work with this Committee. I want to
                                                              amplify the comments made about workforce. We really do need
                                                              more funding to help bring workers back on the job, and our indus-
                                                              try stands ready to help this Committee in any way possible.
                                                                Chairwoman DAVIDS. Thank you, Ms. Glas.
                                                                And Mr. Taylor, you are recognized for 5 minutes.
                                                                                       STATEMENT OF DAVID TAYLOR
                                                                Mr. TAYLOR. Thank you, Chairwoman Davids and Ranking
                                                              Member Meuser and members of the Subcommittee, thank you for
                                                              the privilege of testifying today.
                                                                As Congressman Meuser was so kind to introduce me, I am
                                                              David Taylor. I am the president and CEO of the Pennsylvania
                                                              Manufacturers’ Association. We are the statewide not-for-profit
                                                              group representing the people who make things and Pennsylvania’s
                                                              public policy sector. I also want to thank Congressman Evans from
                                                              Philadelphia, my great friend. It is good to see you, sir.
                                                                I want to express three important points. First, the workforce cri-
                                                              sis is real and is a hard cap on America’s economic growth. Second,




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                                                              the Federal Government becomes a competitor to employers when
                                                              it pays people more to stay home than they would earn at work.
                                                              And third, Congress can help address the workforce crisis by work-
                                                              ing with the states to reinvent the existing tangle of taxpayer-fund-
                                                              ed workforce development and job training programs. And I will ex-
                                                              pand on each of those points as I go on.
                                                                 Manufacturing is the sector of our economy that adds the most
                                                              value, pays the highest wages and benefits, and has the strongest
                                                              multiplier effect on job creation. No matter what product is being
                                                              made, manufacturing takes raw materials or component parts and
                                                              goes through a multi-stage process to yield a finished good, almost
                                                              always consuming a large amount of energy and usually deploying
                                                              some kind of chemical process. Because of that multi-stage process
                                                              of adding value, manufacturing sustains not only the jobs on the
                                                              plant floor but also jobs through supply chains, distribution net-
                                                              works, and vendors of industrial services. In that way, the major
                                                              manufacturer is often the small business owner’s best customer.
                                                                 I know the Subcommittee is looking to examine the supply
                                                              chains for small business, however the most critical input that is
                                                              lacking for manufacturers today is the supply of qualified workers.
                                                              Nationally, manufacturers are facing an alarming problem: our
                                                              workforce is aging and retiring and there is a shortage of skilled
                                                              hands to succeed them. Pennsylvania is no exception to this prob-
                                                              lem. According to our sources at the Manufacturing Institute, at
                                                              any given point in time there are about 6,000 open manufacturing
                                                              positions in Pennsylvania. When you couple the current shortage
                                                              with the fact that some companies have more than half of their
                                                              current workforce within just a few years of retirement, then we
                                                              could consider this workforce problem a workforce crisis. The man-
                                                              ufacturing sector and the workforce at large face an increasingly
                                                              pressing problem: the glut of unfilled jobs due to a skills gap. As
                                                              a result of employers’ inability to find enough qualified new hires,
                                                              businesses are not able to grow to meet current levels of customer
                                                              demand. Those employers are ‘‘leaving money on the table’’ because
                                                              they cannot find the quality employees they need to increase pro-
                                                              duction capacity to be able to bid on new work, which is available.
                                                              This is what I am trying to express when I say that the workforce
                                                              crisis is a hard cap on growth.
                                                                 Of course, to get people into the workforce, they first have to
                                                              want to work. This is one of the problems of the current moment
                                                              because of Congress’s policy of subsidizing state unemployment
                                                              compensation payments. The Federal Government was correct to
                                                              respond to the needs of our citizens caused by the economic shut-
                                                              down triggered by the pandemic. Many people are still dealing with
                                                              both the health crisis and the economic consequences of the shut-
                                                              down. The impulse to be generous is understandable, but regret-
                                                              tably, the Federal taxpayer subsidy to state unemployment benefits
                                                              is keeping many employees out of the workforce.
                                                                 One final thought that I want to share with you concerns the ef-
                                                              ficacy of the Nation’s job training and workforce development pro-
                                                              grams. In Pennsylvania, roughly $2 billion dollars in state and
                                                              Federal taxpayer money is spent annually on more than four dozen
                                                              programs that run through at least five different state cabinet
                                                              agencies. Following a 2019 audit of the state’s workforce develop-




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                                                              ment system, Pennsylvania’s Auditor General at the time, Demo-
                                                              crat Eugene DePasquale said, and I quote, ‘‘I think it needs to be
                                                              restructured entirely. You have to envision nothing exists right
                                                              now and how you would create it. None of us would have it look
                                                              the way it does today.’’
                                                                 I am convinced that there are hundreds of millions of dollars in
                                                              efficiencies that could be realized if Pennsylvania, working in part-
                                                              nership with Congress and the respective Federal departments,
                                                              could realign, rework, and move dollars between programs. The ex-
                                                              isting waiver process has been used to great effect by the state of
                                                              Indiana, and I would recommend using their experience as a model
                                                              for future reforms.
                                                                 So thanks again for the great honor of speaking with you and I
                                                              will do my best to answer your questions.
                                                                 Chairwoman DAVIDS. Thank you, Mr. Taylor. And thank you to
                                                              all our witnesses. We appreciate your expertise and everything you
                                                              have shared today.
                                                                 We will go ahead and get started with the questions. I will begin
                                                              by recognizing myself for 5 minutes.
                                                                 Mr. Dente, in your testimony you gave both recommendations
                                                              and a bit about the story of the difficulty that you faced in pivoting
                                                              and transitioning. I am wondering if you could speak specifically to
                                                              the challenges that Dentec faced while searching for capital to
                                                              produce the N95s during the height of their shortage here domesti-
                                                              cally.
                                                                 Mr. DENTE. Thank you. Please understand, I do not manufac-
                                                              ture disposable N95s. We manufacture reusable product. Right? So
                                                              again, when the volume of orders which were massive came to us,
                                                              right now I am self-funded but I was at a point where I was saying,
                                                              what the heck am I going to do? We were fortunate when the
                                                              CARES Act grant program came out, we qualified for that. We also
                                                              qualified for a loan from the Department of Commerce for Kansas
                                                              as well. Had I not qualified for those programs I would have had
                                                              to go to the street, but the problem is the speed, trying to get
                                                              things accomplished during a chaotic time like that, I do not know
                                                              how we would have done it. Do not know how we would have done
                                                              it. I hope that answers.
                                                                 Chairwoman DAVIDS. Thank you, Mr. Dente.
                                                                 I am going to switch over. Mr. Hampp, I know that a lot of man-
                                                              ufacturers had to reassess their supply chains following the pan-
                                                              demic-related disruptions and realized that there was a lot of risk
                                                              and vulnerability in the supply chains that they were making use
                                                              of. I am wondering if you could tell us a little bit about the role
                                                              that SBICs can play in establishing a more stable supply chain for
                                                              our small and mid-size domestic manufacturers.
                                                                 Mr. HAMPP. Sure. I will talk about, you know, we focus on man-
                                                              ufacturing. And you know, as the supply chain stretched out and
                                                              it became very difficult, prices are increasing regularly. Sometimes
                                                              products that we would get come just in time basis were not even
                                                              available. What we did was we encouraged our portfolio companies
                                                              to invest in inventory. To take down as much inventory as they
                                                              could as quickly as they could to get through what was an uncer-
                                                              tain time. Again, the PPP program helped. But what happens in
                                                              those situations where we have a company that needs capital to ad-




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                                                              dress a short-term issue, the SBICs would typically stand behind
                                                              those portfolio companies and inject capital if needed. But all of our
                                                              companies were able to, through the PPP loan, keep employees em-
                                                              ployed and then they had capacity to buy the inventory more than
                                                              they would normally hold to get through the situation. But know-
                                                              ing that you have got a financial partner in an SBIC makes mak-
                                                              ing that investment easier unlike Claudio. You know, it is not all
                                                              on the individual to source that capital when you have an institu-
                                                              tional investor alongside as an investor.
                                                                 Chairwoman DAVIDS. I appreciate that.
                                                                 I guess in the remaining time, Ms. Glas, I would love to hear
                                                              from you. You mentioned quite a bit in your testimony, and as you
                                                              know, last year I introduced the Supplies Act which would provide
                                                              grant funding to small manufacturers who are able to produce PPE
                                                              and other emergency medical items during the crisis. I am curious
                                                              if you see a role for the SBA and other Federal agencies to support
                                                              domestic PPE manufacturing in the long term.
                                                                 Ms. GLAS. Absolutely. In fact, our industry collectively is really
                                                              seeking a long-term Federal Government plan associated with
                                                              onshoring PPE production. Our industry responded, provided mate-
                                                              rials for the Strategic National Stockpile, FEMA, and Defense Lo-
                                                              gistics Agency. And with the kind of investment that you are talk-
                                                              ing about in your bill—about people being able to invest in manu-
                                                              facturing equipment—we can be a globally competitive industry.
                                                              There is no doubt our industry has become much more efficient
                                                              since March of last year when they were making products for the
                                                              first time. They want to invest in equipment in their manufac-
                                                              turing facilities to be more globally competitive, but they also want
                                                              a strong demand signal. We think working with the Small Business
                                                              Committee here; the SBA leveraging those loans or grant opportu-
                                                              nities; and working with your agency partners across the Federal
                                                              Government on procurement policies and long-term contracts will
                                                              ensure that this small business community is supported in the long
                                                              term, so that we are bringing these supply chains home and re-
                                                              shoring essential production like PPE.
                                                                 Chairwoman DAVIDS. Thank you, Ms. Glas.
                                                                 And thank you to everyone who answered my questions. My time
                                                              is now expired.
                                                                 The Ranking Member, Mr. Meuser, is now recognized for 5 min-
                                                              utes.
                                                                 Mr. MEUSER. Thank you again, Madam Chair.
                                                                 Pennsylvania, my home state, the great Commonwealth of Penn-
                                                              sylvania, is known as a manufacturing state. We have a long his-
                                                              tory of coal, steel, garments is mentioned. Concrete, masonry, fab-
                                                              ricators, candy, beer, crayons, guitars, batteries, airplanes to name
                                                              a few. We have, however, suffered over the last several years or
                                                              over the last we will say 40 years and for the last several years
                                                              we made somewhat of a comeback.
                                                                 Mr. Taylor, you and I both know well the statewide burdens that
                                                              exist in Pennsylvania related to taxes and regulations. Can you
                                                              speak about the importance of natural gas on how natural gas cre-
                                                              ates competitiveness for our small and large manufacturers?
                                                                 Mr. TAYLOR. Yes, sir. I will be glad to.




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                                                                 Mr. MEUSER. As well as provides what is necessary for manu-
                                                              facturing?
                                                                 Mr. TAYLOR. Yes, sir. I will be glad to do my best with that.
                                                                 So in 2005, the Marcellus Shale Play was discovered and starting
                                                              2008, production began in earnest. And the discovery really is
                                                              world historic. We are talking about trillions of recoverable feet of
                                                              natural gas. And so this has helped very much to power our econ-
                                                              omy, but in thinking about what the other testifier said about the
                                                              need to reshore supply chains, that Pennsylvania, along with hav-
                                                              ing the methane, the natural gas that is used for fuel and for elec-
                                                              tricity generation and industrial furnaces, that we also have abun-
                                                              dant natural gas that comes with natural gas byproducts—ethane,
                                                              butane, pentane, propane, and natural gasoline and that there has
                                                              been an $8 billion investment by Royal Dutch Shell in Western
                                                              Pennsylvania for a facility to produce polyethylene, which again is
                                                              at the top of a value chain that can derive every kind of plastic,
                                                              Styrofoam and rubber and every kind of coating in the market-
                                                              place. So that domestic source of this industrial input I think is
                                                              critical to making our supply chains resilient and price competitive
                                                              domestically.
                                                                 Chairwoman DAVIDS. Thank you, Mr. Taylor. It appears as
                                                              though our Ranking Member might have had a technical difficulty
                                                              and dropped off. I think that we will probably come back with ap-
                                                              proximately 2 minutes 40 seconds remaining for the Ranking Mem-
                                                              ber’s questioning and then hopefully he will get to get back on this
                                                              so he can finish his questions.
                                                                 So I think what we will do is go next to Rep. Marie Newman
                                                              from Illinois. You are recognized for 5 minutes.
                                                                 Ms. NEWMAN. well, thank you, Chairwoman. And thank you,
                                                              Ranking Member. I hope you come back soon.
                                                                 So thank you to all our guests this afternoon. It has been great
                                                              hearing your testimony. And thank you for offering solutions. We
                                                              love it when guests come with both problem and solution, so thank
                                                              you for that.
                                                                 I am going to I think start with Ms. Glas because I think she
                                                              is the logical person to ask this question. But I would open it to
                                                              others if they have commentary.
                                                                 In Illinois 3, we have an unusually high concentration of manu-
                                                              facturers, and I work with a partner organization called IMEC here
                                                              in Illinois. And I think it is well-known in the industrial Midwest,
                                                              we have a lot of micromanufacturers. So in my district, about 70
                                                              percent of all manufacturers are under 20 employees. And what
                                                              that means is that that is a huge employment base but we are par-
                                                              ticularly productive. And so with that I have a couple of questions
                                                              around that.
                                                                 Those are the types of manufacturers that have kind of suffered
                                                              the most around things like reshoring. What I mean by that is that
                                                              I am a fan of bringing everything back here and making sure our
                                                              workforce and our production process, our supply chain and our
                                                              partners stay here. Some of the things that I think are helpful in
                                                              that mix are incentivizing business partners. And so I guess I
                                                              wanted to hear what your thoughts are on incentivizing the cus-
                                                              tomers of our micromanufacturers so that they buy here, stay here,




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                                                              workforce is here, all of those good things. So I will put myself on
                                                              pause and I would love for you to give us your thoughts.
                                                                 Ms. GLAS. Congressman, thank you so much for that question.
                                                              You know, it is clear to me that you are very proud of the work
                                                              that is being done in your congressional district and the ingenuity
                                                              that exists with a lot of those small manufacturers in a really dy-
                                                              namic period of time.
                                                                 When you look at the customers for PPE, the biggest buyer is not
                                                              the U.S. Government. It is an important buyer, okay, and we need
                                                              to make sure we get all those roles right and help reshore produc-
                                                              tion. But I think a lot of our manufacturers, similar to yours, are
                                                              looking to sell their products in the private marketplace—to hos-
                                                              pitals, to other kinds of customers. And are there ways that Con-
                                                              gress can incentivize the customers or even incentivize the actual
                                                              manufacturers to produce these products or purchase these prod-
                                                              ucts. We, as an industry, have all collectively been talking about
                                                              the fact that there may be unique arrangements that can be made
                                                              with hospitals and nursing homes and others that would get an in-
                                                              centive for buying Made in the USA product or get a better Medi-
                                                              care-Medicaid reimbursement rate as a result. I think this is a
                                                              time for creative thinking, similar to the micro-manufacturers in
                                                              your district who all probably came together in unique partner-
                                                              ships during this period; to think about what it would take to actu-
                                                              ally bring some of these production teams on shore and how to
                                                              incentivize the private marketplace.
                                                                 Ms. NEWMAN. And if any of our other guests have any sugges-
                                                              tions, I am all ears.
                                                                 If you would like to go, Claudio, that would be great to hear from
                                                              you.
                                                                 Mr. DENTE. I am sorry; I keep pressing the button up there, not
                                                              down there. I apologize for that, Representative Newman, thank
                                                              you. Great comments there, Kim.
                                                                 The issue is not the end user. And I hope there are no distribu-
                                                              tors on this call. Distribution is what I sell through, and they are
                                                              the people, the carrier to move product to the end-user. The dis-
                                                              tributors are the challenge because they are the ones that do not
                                                              want to disrupt their current supply chain which may be overseas.
                                                              Right? So, your idea, Kim, about incentivizing the end-user is
                                                              great.
                                                                 So, think about it like this: in our industries, in all industries,
                                                              there are buying groups. And buying groups create and collect re-
                                                              bates. So why not create some type of rebate program, some type
                                                              of funds that go back to the end-user that rewards them for work-
                                                              ing with American made manufacturers. That is my comment.
                                                                 Ms. NEWMAN. Great. Any of our other guests like to share any
                                                              thoughts?
                                                                 Mr. TAYLOR. Yes, if I may.
                                                                 Ms. NEWMAN. David.
                                                                 Mr. TAYLOR. Thank you very much.
                                                                 The kind of smaller companies that you are describing, very im-
                                                              portant job creators, very important part of the overall ecosystem
                                                              of manufacturing. The smaller companies are more vulnerable to
                                                              disruptions and to pitfalls. One of the things about the pandemic
                                                              that has been hard to see is that you had companies that really




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                                                              stuck their necks out by retooling to go from the product that they
                                                              knew to do something different that was needed to cope with the
                                                              pandemic, whether it was the distillers putting out hand sanitizer
                                                              or there was a company in Pennsylvania that would make airplane
                                                              parts and they converted over to make ventilator parts. These com-
                                                              panies took a risk and one of the things that they really need from
                                                              Congress is some kind of safe harbor for protection against preda-
                                                              tory lawsuits. And that is something that in good faith I would like
                                                              to see Congress take up.
                                                                Ms. NEWMAN. When you say ‘‘predatory lawsuits,’’ give me an
                                                              example, David.
                                                                Mr. TAYLOR. Well, I mean, just being exploited——
                                                                Chairwoman DAVIDS. The gentlelady’s time has expired.
                                                                Ms. NEWMAN. Oh, okay.
                                                                Mr. TAYLOR. Okay. Well, I will do my best to respond just to
                                                              say that opportunistic, inevitably when you are doing something
                                                              new you do not get it 100 percent right the first time.
                                                                Chairwoman DAVIDS. Mr. Taylor, thank you for the follow up.
                                                              Thank you.
                                                                Ms. NEWMAN. Thank you, Chairwoman. Thank you, Chair-
                                                              woman.
                                                                Chairwoman DAVIDS. Thank you. And we are actually going to
                                                              go back to Ranking Member Meuser who has returned. I believe
                                                              you had about 2 minutes and 45 seconds left.
                                                                Mr. MEUSER. Thank you, Madam Chair. I apologize about that
                                                              operational difficulty.
                                                                So Mr. Taylor, thanks for your answer related to natural gas.
                                                              Obviously, very important from a competitive standpoint as well as
                                                              manufacturing via the packer plants.
                                                                At the Federal level, what can we do? You brought up workforce
                                                              development. On a Federal level, what are your suggestions pro-
                                                              viding for a stronger, more available workforce availability, as well
                                                              as comment on do you believe that manufacturers who are not
                                                              being able to bring their workforce into their operation today will
                                                              invest in robotics and other machines so as those manufacturing
                                                              jobs could be done forever if they do not get fulfilled within the
                                                              next year?
                                                                Mr. TAYLOR. Okay, Congressman, I will try to respond to that.
                                                              Certainly, the trend towards automation continues at pace. And
                                                              new technologies enable manufacturers to innovate and increase
                                                              their operational tempo. And so as a result of those technology effi-
                                                              ciencies that you see the manufacturing workforce tighten but that
                                                              those jobs that remain become much more valuable. You know, cer-
                                                              tainly to have a pro-growth, pro-production agenda for American
                                                              manufacturing, valuing the way that manufacturing is a positive
                                                              dynamic for the quality of life for our citizens, certainly in the com-
                                                              munities where a manufacturing entity is located, they are also,
                                                              along with being major employers they are also major taxpayers
                                                              which makes them important to state and local government as
                                                              well. So it is just the whole spectrum of competitiveness and hav-
                                                              ing our Federal Government recognize the contribution of domestic
                                                              manufacturing and to support it through all of those competitive
                                                              fundamentals. As for the workforce issue, I have got to say it is the
                                                              phoniest most multifaceted challenge that we face. I do think that




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                                                              the one opportunity that is before us as I mentioned, is working to
                                                              reinvent our highly fragmented job training and workforce develop-
                                                              ment system. If Congress would partner with the states to help to
                                                              rationalize that, and I am not just asking for the feds to block
                                                              grants although that would be awesome, but to work in partner-
                                                              ship to allow the state authorities to realign the program, to move
                                                              money between the silos, I think that there are huge savings that
                                                              could be realized. And again, we could get more bang out of what
                                                              is being spent without having to increase expenditures.
                                                                 Mr. MEUSER. Thank you.
                                                                 The plan to increase corporate net income tax, income taxes, cap-
                                                              ital gains tax, what effect will that have on U.S. manufacturing?
                                                                 Mr. TAYLOR. It is very negative. And I would say that there
                                                              were two really positive things from the previous administration’s
                                                              tax changes. Number one, bringing the rate down to just slightly
                                                              below the OECD average, that that greatly improved competitive-
                                                              ness. And also, that there was an existing penalty as it were for
                                                              U.S. companies that earned profits overseas that prevented them
                                                              from bringing that money back to the U.S. I actually know of one
                                                              instance where a company in Minnesota, it was easier for them to
                                                              invert and become a foreign company to be able to reinvest their
                                                              overseas earnings back in the U.S. and that is just perverse. We
                                                              do not want that. We want American global corporate leadership.
                                                              And so I would argue very strongly against changing the improve-
                                                              ments that were recently made.
                                                                 Mr. MEUSER. Thank you. I yield back, Madam Chair.
                                                                 Chairwoman DAVIDS. Thank you. The Ranking Member yields
                                                              back.
                                                                 And next I would like to recognize Rep. Evans for 5 minutes.
                                                                 Mr. EVANS. Thank you. Thank you, Madam Chair. Thank the
                                                              Ranking Member. It is good to see Mr. Taylor. It is a pleasure.
                                                                 Ms. Glas, you stated that the U.S. needed stronger workforce
                                                              training programs. What percentage of textile manufacturing busi-
                                                              nesses provide on-the-job training? Would on-the-job training be
                                                              more flexible with government assistance? And what tools do tex-
                                                              tile manufacturers need to do more recruiting?
                                                                 Ms. GLAS. This is a quintessential and timely question, Con-
                                                              gressman Evans. You know, actually, business is starting to come
                                                              back but we simply do not have the workforce to fulfill the orders,
                                                              which is a missed opportunity for our industry. Our industry does
                                                              provide onsite worker training. We do heavy recruitment at tech-
                                                              nical colleges. A lot of our manufacturers do not have 4-year de-
                                                              grees. There is a pathway forward for good paying jobs in our field,
                                                              but we are having a hard time retaining a workforce in this envi-
                                                              ronment. And so if there are incentives or ways to help bolster the
                                                              domestic supply chain in clusters for textile manufacturers to re-
                                                              cruit additional workers, or ways to incentivize small manufactur-
                                                              ers to actually help pay some of their workforce an additional
                                                              bonus to work during this time, those are all important tools in the
                                                              toolbox. But right now it is a real challenge across our industry to
                                                              retain a workforce in this environment. And part of it is because
                                                              COVID has impacted manufacturers’ ability. People are staying at
                                                              home with their children. I mean, lives have been disrupted incred-
                                                              ibly and it has been really hard to recruit people back into the




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                                                              workforce because they have other things that are pulling at them
                                                              at this time.
                                                                 Mr. EVANS. Thank you.
                                                                 I yield back the balance of my time, Madam Chair.
                                                                 Chairwoman DAVIDS. Thank you. The gentleman yields back.
                                                                 Next, I would like to recognize Rep. Van Duyne for 5 minutes.
                                                                 Ms. VAN DUYNE. Great. Thank you.
                                                                 I think all the panelists today have hit on issues with the work-
                                                              force. Mr. Taylor, you made a point in your testimony that small
                                                              employers are having to compete with the Federal Government for
                                                              workers thanks to the luxurious unemployment benefits that are
                                                              being offered currently. So not only is the Federal Government
                                                              hurting employers with extended benefits, but they are also stag-
                                                              nating the workforce on learning skills that they will eventually
                                                              need to return to work. Can you elaborate on how the extended un-
                                                              employment benefits have affected hiring and the workforce? And
                                                              can you also explain a little bit about your concern with workers
                                                              not having the skills needed when they do return to work?
                                                                 Mr. TAYLOR. Yes. I will do my best to respond to that. And
                                                              again, it is an unintended consequence I am sure, but that impulse
                                                              to be generous of raising unemployment benefits beyond what peo-
                                                              ple would earn if they returned to work, it is keeping people on the
                                                              sidelines. It is essentially making the government a competitive
                                                              employer, like you are outbidding the market. Surely there is a
                                                              precedent in history with the New Deal three letter agencies to
                                                              give unemployed people work. But at least in those instances they
                                                              were actually engaging the program participants. That they were
                                                              doing work. They were hopefully upgrading their skills. They were
                                                              at least keeping current and would have something that they could
                                                              list on a resume that employers know the longer somebody is on
                                                              the sidelines the more their skills degrade, the longer that gap
                                                              comes on their resume and the more difficult it is for somebody to
                                                              reenter the workforce.
                                                                 Ms. VAN DUYNE. I appreciate that.
                                                                 It is also evident by the testimony we have heard today that
                                                              small manufacturers, while agile and highly resilient, has faced a
                                                              tough time during COVID-19. President Biden has proposed in-
                                                              creasing corporate taxes among other tax hikes.
                                                                 So Mr. Taylor, how would increased taxes affect small manufac-
                                                              turers?
                                                                 Mr. TAYLOR. Well, I mean, in Pennsylvania, about 80 percent
                                                              of our manufacturing employers, they are not C corporations. They
                                                              are S corps or LLCs or partnerships. So the higher corporate tax
                                                              rate again would hurt the big fish in the ocean but because of sup-
                                                              ply chains and distribution networks, those smaller companies that
                                                              are suppliers or vendors or part of the distribution for the major
                                                              manufacturers, they would see less business.
                                                                 In my lifetime, the example, it would be when Bethlehem Steel
                                                              left Johnstown. And that not only do you lose that major employer,
                                                              but because so many of the smaller businesses were part of that
                                                              ecosystem as suppliers, they were part of logistics, you know, fork-
                                                              lift and warehouse jobs, you know, people who do payroll or HR or
                                                              legal services or any of those things, if you lose what happens on
                                                              the plant floor, all the rest of it goes away. And so with our eye




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                                                              to competitiveness, especially with reshoring in a very demanding
                                                              global marketplace, I would recommend strongly against raising
                                                              the U.S. tax rates.
                                                                 Ms. VAN DUYNE. I appreciate that also.
                                                                 Also in your testimony you mentioned the potential to cast a
                                                              wider hiring net, including those that had been incarcerated before.
                                                              Are there any regulatory burdens that make it difficult to hire
                                                              these types of workers and can they be changed to allow employers
                                                              to cast that wider net?
                                                                 Mr. TAYLOR. Well, that is a great question and I really believe
                                                              it is the question of our time. I want to stay in my lane here. I am
                                                              an advocate in Pennsylvania on state public policy but I would ask
                                                              our Nation’s leaders to look to Pennsylvania because we have made
                                                              a lot of progress. And that in particular, our secretary of correc-
                                                              tions, John Wetzel, has been a real leader with corrections reform.
                                                              Secretary Wetzel is, himself, a former corrections officer so he has
                                                              walked the block. He was the only African American in Governor
                                                              Corbett’s cabinet. He is now the only Republican in Governor Tom
                                                              Wolf’s cabinet. And so there really is a bipartisan consensus on
                                                              this. And that is the upswing.
                                                                 I remember being at a company out in Allegheny County and
                                                              most of their workforce is ex-military. They have very tough stand-
                                                              ards and that they were one of those companies leaving work on
                                                              the table because they could not find enough new people. And it
                                                              was the owners there who said we are going to have to cast the
                                                              net wider. We are going to have to do better. And so this is a mo-
                                                              ment where everybody needs to level up. But if we do it, we can
                                                              have real social progress because the jobs in manufacturing that go
                                                              wanting are really good paying, family sustaining jobs with great
                                                              wages and benefits and pensions. And so I do not have all of the
                                                              answers to know how we can make that happen. Maybe Represent-
                                                              ative Evans and I need to work on this together because we need
                                                              to find a way to get those citizens who have been outside the work-
                                                              force, who have not succeeded in our society. This gravitational pull
                                                              of demography, because there are more jobs available than people
                                                              looking for work, this should be the time when we help to bring
                                                              those marginalized folks back into the workforce, into productive
                                                              living, and into the dignity of work and the real sense of identity
                                                              that can come from having a profession and still trade.
                                                                 Ms. VAN DUYNE. Thank you very much.
                                                                 Chairwoman, I appreciate that you extended time.
                                                                 Chairwoman DAVIDS. Thank you, Rep. Van Duyne. The
                                                              gentlelady yields back.
                                                                 First of all, I would like to say thank you to all our witnesses
                                                              for taking the time, for joining us today and sharing your expertise.
                                                              Your testimony has certainly given the Subcommittee members
                                                              valuable insight into the problems that have been created because
                                                              of the pandemic. And particularly for our small manufacturers and
                                                              the challenges that they are facing moving forward. The pandemic
                                                              has taught us a hard lesson in the value of domestic manufacturing
                                                              and a robust supply chain. Today, we continue to feel the effects
                                                              of supply chain disruptions and shortages on our economy. And we
                                                              obviously want to avoid a repeat of this situation which means we
                                                              have to find ways to empower small manufacturers. One of the




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                                                              most common sense ways to do that is by ensuring that they have
                                                              ample access to affordable capital, and I hope today’s hearing has
                                                              shed light on critical SBA lending programs. And I am looking for-
                                                              ward to working with all of you to find ways to improve them.
                                                                I would ask unanimous consent that members have 5 legislative
                                                              days to submit statements and supporting materials for the record.
                                                                Without objection, so ordered. And if there is no further business
                                                              to come before the Committee, we are adjourned. Thank you very
                                                              much.
                                                                [Whereupon, at 2:03 p.m., the subcommittee was adjourned.]




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                                                                                                   APPENDIX




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                                                                                                                                                           Insert offset folio 53 here 44563.0033
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00057   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              54




                                                                                                                                                           Insert offset folio 54 here 44563.0034
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00058   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              55




                                                                                                                                                           Insert offset folio 55 here 44563.0035
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00059   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              56




                                                                                                                                                           Insert offset folio 56 here 44563.0036
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00060   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              57




                                                                                                                                                           Insert offset folio 57 here 44563.0037
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00061   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              58




                                                                                                                                                           Insert offset folio 58 here 44563.0038
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00062   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              59




                                                                                                                                                           Insert offset folio 59 here 44563.0039
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00063   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              60




                                                                                                                                                           Insert offset folio 60 here 44563.0040
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00064   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              61




                                                                                                                                                           Insert offset folio 61 here 44563.0041
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00065   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              62




                                                                                                                                                           Insert offset folio 62 here 44563.0042
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00066   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              63




                                                                                                                                                           Insert offset folio 63 here 44563.0043
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00067   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              64




                                                                                                                                                           Insert offset folio 64 here 44563.0044
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00068   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              65




                                                                                                                                                           Insert offset folio 65 here 44563.0045
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00069   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              66




                                                                                                                                                           Insert offset folio 66 here 44563.0046
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00070   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              67




                                                                                                                                                           Insert offset folio 67 here 44563.0047
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00071   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              68




                                                                                                                                                           Insert offset folio 68 here 44563.0048
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00072   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              69




                                                                                                                                                           Insert offset folio 69 here 44563.0049
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00073   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              70




                                                                                                                                                           Insert offset folio 70 here 44563.0050
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00074   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              71




                                                                                                                                                           Insert offset folio 71 here 44563.0051
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00075   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              72




                                                                                                                                                           Insert offset folio 72 here 44563.0052
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00076   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              73




                                                                                                                                                           Insert offset folio 73 here 44563.0053
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00077   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              74




                                                                                                                                                           Insert offset folio 74 here 44563.0054
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00078   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              75




                                                                                                                                                           Insert offset folio 75 here 44563.0055
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00079   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              76




                                                                                                                                                           Insert offset folio 76 here 44563.0056
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00080   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              77




                                                                                                                                                           Insert offset folio 77 here 44563.0057
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00081   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              78




                                                                                                                                                           Insert offset folio 78 here 44563.0058
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00082   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              79




                                                                                                                                                           Insert offset folio 79 here 44563.0059
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00083   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              80




                                                                                                                                                           Insert offset folio 80 here 44563.0060
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00084   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              81




                                                                                                                                                           Insert offset folio 81 here 44563.0061
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00085   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              82




                                                                                                                                                           Insert offset folio 82 here 44563.0062
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00086   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              83




                                                                                                                                                           Insert offset folio 83 here 44563.0063
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00087   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              84




                                                                                                                                                           Insert offset folio 84 here 44563.0064
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00088   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              85




                                                                                                                                                           Insert offset folio 85 here 44563.0065
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00089   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              86




                                                                                                                                                           Insert offset folio 86 here 44563.0066
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00090   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              87




                                                                                                                                                           Insert offset folio 87 here 44563.0067
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00091   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              88




                                                                                                                                                           Insert offset folio 88 here 44563.0068
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00092   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              89




                                                                                                                                                           Insert offset folio 89 here 44563.0069
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00093   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              90




                                                                                                                                                           Insert offset folio 90 here 44563.0070
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00094   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              91




                                                                                                                                                           Insert offset folio 91 here 44563.0071
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00095   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              92




                                                                                                                                                           Insert offset folio 92 here 44563.0072
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00096   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              93




                                                                                                                                                           Insert offset folio 93 here 44563.0073
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00097   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              94




                                                                                                                                                           Insert offset folio 94 here 44563.0074
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00098   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              95




                                                                                                                                                           Insert offset folio 95 here 44563.0075
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00099   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              96




                                                                                                                                                           Insert offset folio 96 here 44563.0076
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00100   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              97




                                                                                                                                                           Insert offset folio 97 here 44563.0077
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00101   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              98




                                                                                                                                                           Insert offset folio 98 here 44563.0078
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00102   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              99




                                                                                                                                                           Insert offset folio 99 here 44563.0079
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00103   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              100




                                                                                                                                                           Insert offset folio 100 here 44563.0080
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00104   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              101




                                                                                                                                                           Insert offset folio 101 here 44563.0081
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00105   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              102




                                                                                                                                                           Insert offset folio 102 here 44563.0082
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00106   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              103




                                                                                                                                                           Insert offset folio 103 here 44563.0083
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00107   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              104




                                                                                                                                                           Insert offset folio 104 here 44563.0084
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00108   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              105




                                                                                                                                                           Insert offset folio 105 here 44563.0085
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00109   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              106




                                                                                                                                                           Insert offset folio 106 here 44563.0086
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00110   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              107




                                                                                                                                                           Insert offset folio 107 here 44563.0087
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00111   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              108




                                                                                                                                                           Insert offset folio 108 here 44563.0088
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00112   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              109




                                                                                                                                                           Insert offset folio 109 here 44563.0089
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00113   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              110




                                                                                                                                                           Insert offset folio 110 here 44563.0090
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00114   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              111




                                                                                                                                                           Insert offset folio 111 here 44563.0091
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00115   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              112




                                                                                                                                                           Insert offset folio 112 here 44563.0092
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00116   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              113




                                                                                                                                                           Insert offset folio 113 here 44563.0093
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00117   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              114




                                                                                                                                                           Insert offset folio 114 here 44563.0094
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00118   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              115




                                                                                                                                                           Insert offset folio 115 here 44563.0095
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00119   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              116




                                                                                                                                                           Insert offset folio 116 here 44563.0096
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00120   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              117




                                                                                                                                                           Insert offset folio 117 here 44563.0097
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00121   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              118




                                                                                                                                                           Insert offset folio 118 here 44563.0098
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00122   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              119




                                                                                                                                                           Insert offset folio 119 here 44563.0099
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00123   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              120




                                                                                                                                                           Insert offset folio 120 here 44563.0100
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00124   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              121




                                                                                                                                                           Insert offset folio 121 here 44563.0101
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00125   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              122




                                                                                                                                                           Insert offset folio 122 here 44563.0102
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00126   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              123




                                                                                                                                                           Insert offset folio 123 here 44563.0103
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00127   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              124




                                                                                                                                                           Insert offset folio 124 here 44563.0104
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00128   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              125




                                                                                                                                                           Insert offset folio 125 here 44563.0105
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00129   Fmt 6602   Sfmt 6602   F:\DOCS\44563.TXT   DEBBIE
                                                                                                              126




                                                                                                                  Æ




                                                                                                                                                           Insert offset folio 126 here 44563.0106
SBD026 with DISTILLER

                        VerDate Mar 15 2010   13:11 Aug 17, 2021   Jkt 000000   PO 00000   Frm 00130   Fmt 6602   Sfmt 6011   F:\DOCS\44563.TXT   DEBBIE


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CHRG-117hhrg44563.pdf
Size
66,340,484 bytes
SHA-256
c32b92ca8b9670270cefbdcf93c215837c605e5bc4defc9d871e91c402c6e6dc
Our copy
CHRG-117hhrg44563.pdf
Original
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