NAM highlighted the impact on Momentive, a specialty chemicals and materials producer with a presence in 21 states, including manufacturing facilities in New York, Ohio, West Virginia, Florida, North Carolina, Oregon, Indiana and California. Roger McCrary, Momentive’s Vice President for Global Trade Management, noted the trade-offs that companies must make when Congress fails to renew GSP:

“Our ability to remain an innovative, cutting-edge American company requires access to affordable raw materials. With the increase in tariffs resulting from GSP’s expiration, we need to cut from other parts of our budget, such as R&D. That has an impact on our bottom line and future products.”

These trade-offs are faced by all companies, not just manufacturers. Some companies cut R&D. Others reduce purchases (and limit future profit potential), while others still must lay off workers. In each of these cases, though, the result is clear: even a temporary GSP expiration can have a lasting impact.

Small businesses like this one must decide whether to raise prices (and risk sales) or absorb the costs and hope for the best – “essentially playing chicken” as Candace describes it:

It’s hard to compete when you don’t know the actual final cost of the goods. We’re essentially playing “chicken” either with our competitors or our year end profit – destabilizing situation for the whole market! We’ve suffered enough! Cut us a break already!

The end result of these decisions are often bad: Sophia Foods laid off 2 workers when GSP expired and profits plummeted in 2011, as we detailed at the time. Congress needs to cut small businesses a break already and renew GSP so these completely predictable – and avoidable – don’t start happening again.

(PS – If you haven’t filled out our survey, do it here! There’s an option to remain anonymous, so your details won’t show up on the site unless you give explicit permission.)

Nearly 340 organizations in 41 states (plus DC) have now joined the supporter list. You can see them all here. If you’re not on the list but want Congress to renew GSP, be sure to add your name here so we can keep highlighting the importance of GSP to the different states and congressional districts.

Yet despite their differences, both New York/St. Louis-based Macy‘s and Louisiana-based CorrPak BPS have called on Congress to renew the GSP program before it expires on July 31.  Why? Because big or small, retailer or industrial supplier, parade-sponsor or otherwise, companies need to meet customer demands for high-quality products at the lowest possible price – and GSP helps them do it.

But if Congress doesn’t act soon, both these companies (and many others) will face higher taxes starting on August 1.

New York companies imported an estimated $1.5 billion under GSP in 2011, saving them on average 4.1%. India was the most important source of GSP imports, accounting for about 24 percent of the tariff savings. Silver jewelry were New York’s top import under GSP in 2011 and would have faced average tariffs of 5.2% without GSP.

Yet GSP is set to expire on July 31, 2013, and companies could face tariffs higher tariffs starting on August 1 if Congress does not pass legislation renewing GSP. When GSP expired at the end of 2010, American companies paid nearly $2 million per day, every day, until Congress finally acted 11 months later!

This graphic shows just some of the negative impacts from the last GSP expiration. It also helps explain why more than 335 companies and associations – including at least 36 in New York – joined the 2011 GSP Supporter List urging renewal of the program when it last expired.

Are you a New York company that would be hurt by GSP expiration? If so, please take 30 seconds to let Congress know by adding your name to our free 2013 GSP Supporter List right now.