User:1600wilson/Manufacturers' Alliance

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The Manufacturers' Alliance (MAPI) was conceived in the throes of the Great Depression—at a time when the severity of the economic downturn led to a disbelief in fundamental economic truths—the Machinery and Allied Products Institute assumed the task of re-educating the American people to the fact that only through production, in a society where men and women are given the incentives to produce, can we achieve economic progress. Thus, since its inception, the Manufacturers' Alliance has devoted a major part of its effort to educational work on the role of private investment in the economy.

The Machinery and Allied Products Institute (MAPI) was organized on July 20, 1933, with headquarters in Chicago, Illinois, and a "working branch" in Washington, DC. The name was an adaptation of the then-title for Standard Industrial Classification (SIC) 35, Machinery and Allied Products Industry, and described those industries MAPI was to represent under the rules of the National Recovery Administration (NRA). MAPl's founders were the following organizations:

• Compressed Air Institute • Diesel Engine Manufacturers Association • Heat Exchange Institute • Hoist Builders Association • Hydraulic Institute • National Machine Tool Builders Association • Rock and Ore Crusher Association • Steam Engine Manufacturers Association

This nucleus of eight trade associations grew rapidly to 58 trade associations.

The Manufacturers' Alliance has conducted original research in economics, law, and management and provided professional analysis of issues critical to the economic performance of the private sector. The results of this research include such pioneering studies as: Capital Goods and the American Enterprise System: This was one of the first studies issued by the Manufacturers' Alliance; the document summarized the economic and social principles underlying the American enterprise economy and the role played by the capital goods industries, and raised salient questions about savings and investment and obstructions to the flow of capital into employment making enterprises.

Over the years the Manufacturers' Alliance developed in the pattern of an enterprising corporation that constantly pioneers new lines congenial to its basic purposes. One of those innovations was the establishment and, over time, the strong development of the Manufacturers' Alliance Council Program. These groups have organized in response to the need for seminar-like peer groups to meet and discuss challenges and problems in such areas as strategic planning and development, financial management, engineering and technology, international operations, law, marketing, manufacturing, human resources, public affairs, government contracts, purchasing, information systems management, products liability, hazardous materials management, risk management, quality, and taxation. In addition, there are Councils for presidents of small- to mid-size companies, and for general managers of member companies.

The Manufacturers' Alliance's initial role in the early 1930s in representing the "machinery and allied products industry" meant that effective public education and government relations were essential from the start. While not a lobbying organization, the Manufacturers' Alliance has continued to serve as a national spokesman for policies which stimulate technological advancement and economic growth for the benefit of U.S. industry and the public interest.

In a general sense, the Manufacturers' Alliance's early work in educating the public on the critical role played by saving, investment, and capital goods in strengthening our economy has contributed to the productivity and high standard of living of the United States. More specifically, the Manufacturers' Alliance's leadership role in promoting the adoption of a sound depreciation and replacement policy by management and the recognition of it for tax purposes has been reflected both in the order books and profits of manufacturers and in federal tax laws. Through the years this work has continued in such tax matters as amortization, equipment leasing, the investment tax credit, and foreign-source income.

The original objectives of MAPI were as follows:

1. To promote the common interests of manufacturers of machinery and allied products; to represent its member organizations and any groups or subdivisions thereof in all matters of common interest included within the scope of the National Industrial Recovery Act and other law having a similar purpose thereafter enacted; to prepare and submit codes of fair competition as provided for in NIRA; and to assist its member organizations in preparing and submitting those codes.

2. To promote the common interests of manufacturers of machinery and allied products in manufacturing, engineering, marketing, safety, transportation, and other industrial problems.

3. To promote the interorganizational standardization of machinery and allied products.

4. To collect and disseminate information of value to member organizations and to their members or to the public in regard to machinery and allied products.

5. To adjust conflicts between two or more member organizations.

6. To organize and promote the organization of such trade associations as may be necessary or desirable to organize and classify properly the machinery and allied products industry, and to make effective any code or codes affecting the member organizations and their members.

7. To carry on such other activities as shall advance and promote the common interest and well-being of member organizations and their members.

8. To carry on for any individual member organization or for any member thereof special investigations and to render special services, the cost and expense of which shall be paid by the member organization or member thereof requesting the service.

MAPI's initial task was the administration of the NIRA codes for the industries it represented. More specifically, MAPI, acting upon a decision of its members, filed a basic Code with the NRA and then proceeded to perform the services necessary for the Code's operations. The National Industrial Recovery Act, however, was short-lived, brought to an abrupt end by the U.S. Supreme Court decision in Schechter Poultry Corporation v. United States (May 27, 1935) which declared the Act unconstitutional. The powers of NRA, a White House office, had not been adequately defined by Congress, resulting in an unconstitutional delegation of legislative authority to the executive branch.

In contrast, interest in other MAPI activities on the part of the membership continued high, and MAPI proceeded with a program (already under way) consisting of: the development and coordination of the activities of underlying associations; research; promotion; and communication and industry representation to government.

Once relieved of the time- and attention-consuming business of the National Industrial Recovery Act, the MAPI program evolved rapidly. In fact, the research and education program, the MAPI Council Program, the role of national spokesman, and the information exchange were soon well beyond the embryonic stage and formed the framework for MAPI activities that exists to this day.

To encapsulate the accomplishments of MAPI at the conclusion of its first years: MAPI had become a unique institution in U.S. business as it pursued its major purpose: the advancement of the public welfare and interests of industrial equipment producers through a better understanding of the role of capital goods in the U.S. economy. That claim rests on real ground, for MAPI has made a significant contribution to economic theory and practice in the United States and lifted the sights of individuals in terms of their expectations for the U.S. economy.

Over the past 35 years, technological change has accelerated restructuring within most segments of manufacturing as new industries emerged and some traditional industries were forced to downsize and respond to a more competitive environment. Extraordinarily rapid innovation has transformed the aerospace, computer, electronics, telecommunications, and chemical and pharmaceutical industries; these industries now represent the leading technological edge of the U.S. manufacturing sector.

As foreign competitors have acquired new technology and adopted state-of-the-art management techniques, dynamic change has transformed production processes in such U.S. industries as automobiles, steel, and industrial equipment. Most U.S. businesses in these industries have responded to the emerging global economy by investing in new capital equipment and by making productivity improvement and customer satisfaction the central goals of the enterprise.

In the longer run, the economic integration of European, Asian, and North American countries will provide companies affiliated with the Manufacturers' Alliance with significant investment and export opportunities. At the same time, this new global marketplace will pose a profound challenge for U.S. manufacturers. In this environment, the Manufacturers' Alliance's program will be designed to encourage management actions on the part of its members and public policies on the part of the U.S. govemment that facilitate the redeployment of resources to higher valued-added activities.