TRADE ADJUSTMENT ASSISTANCE PROGRAM
Imports continue to challenge many manufacturing and producing firms in the US, resulting in declines in sales to existing customers, inability to attract new customers and decreases in employment levels. The Trade Adjustment Assistance (TAA) Program, sponsored by the US Department of Commerce, has proven to be highly effective in addressing the challenges of import impacted manufacturing and producing firms.
The Arizona Department of Commerce is working with the Western Trade Adjustment Assistance Center (WTAAC). WTAAC offers qualified companies an opportunity to improve their competitive position in the global marketplace. The WTAAC is located at the University of Southern California and assists firms located in Arizona, California, Nevada, and Hawaii.
Specifically, the Program provides grants to manufacturing and producing companies which have experienced declines in sales and employment partially due to foreign competition. The grants are tailored to the specific needs of the company.
The grants may cover complex operational issues based on the company's particular interests, and examples include solutions for the following operational areas:
Quality registration (ISO, AS, QS, etc.)
Quality management systems
Cost reduction
Plant layout and material handling systems
Production control and inventory systems
E-Business implementation
Sales network organization and training
Sales strategy and implementation
Product diversification and promotion
And many more… |
Product development
Re-engineering
CAD/CAM Systems
Enterprise systems
Network Improvement
Functional applications and implementation
- Management
Strategic and tactical planning
Business plan development |
BENEFITS: The TAA program can pay up to 75% of the cost of outside consulting or technical services. These services can relate to any projects that increase the company’s competitiveness. Services are provided by independent consultants of the firm’s choosing. This includes:
- Quality certification
- Lean manufacturing
- Market research
- Export development
- New product development
- CE Marking and all other industry standards
- Any service, performed by a non-employee with a predetermined scope and duration, and not an ongoing cost of business may qualify.
PROCESS: There is no cost associated with qualifying for the program. Thereafter, the costs are shared by the firm and WTAAC. The benefit is a project(s) totaling $30,000, of which the company pays only 25% of the consultant costs. There are three stages:
1. Application: In the first stage, WTAAC works with the company to gather the information necessary for the development of the application and forwards the completed packet to Washington. There is no charge for the company. The approval process is about 60 days.
2. Plan: After application approval, the second stage consists of an analysis of the company, detailing strengths and weaknesses, threats and opportunities; and a plan for utilizing outside services that would improve the company’s competitive position. The company share for this step is $1,250.
3. Implementation: The projects outlined in the approved plan will be implemented and the consultants are selected by the firm. The consultants complete the project and send part of the bills to each party accordingly. Based on the total project(s) cost of $30,000, the company does not have to pay the entire amount, but only 25% of the consultant costs involved.
PREREQUISITES AND REQUIREMENTS:
The firm must be an autonomous legal entity, have US operations, and have been in business for at least two years. Based on two 12-month periods that ended within the last 120 days, a company must show that total net sales and monthly employee headcount have declined as a result of imports. To apply, please click here.
Note: The Trade Adjustment Assistance Program is sponsored by the US Department of Commerce and administered by the Western Trade Adjustment Assistance Center located at the University of Southern California. |