Manufacturers struggling to pay bills for Washington lobbyists

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Posted 8:11AM on Monday, January 28, 2002

WASHINGTON - It's a cruel paradox for struggling textile companies. Never have they been more in need of a Washington lobbying presence, yet never have they been less able to pay for it. Earlier this month, just days before Congress reconvened for what could be a make-or-break legislative period for the industry, the largest textile lobbying organization announced it would slash about a fifth of its already limited staff. The reason: Times are tough for the businesses represented by the American Textile Manufacturers Institute. Plant closings are commonplace across the South, and many companies are finding it difficult to pay both the utility bills and the lobbying fees. ``Many of our companies are just not able to fork up more dues,'' said Carlos Moore, executive vice president of ATMI, which is cutting four top positions, leaving it with 19. ``A number of them are in Chapter 11. The best way to serve our members is first of all to get our finances in order.'' Although perhaps best personified by textiles, which struggled even before the Sept. 11 terrorist attacks that plunged the nation deeper into recession, it's hardly an isolated case. Trade associations and lobbying groups across Washington are feeling the effects of the economic pain of their members, even though lobbyists might be best equipped to help resolve the trouble. ``It's perhaps the classic dilemma that faces industries when they go through negative cycles,'' said Nancy Gravatt, spokeswoman for the American Iron and Steel Institute. ``When you're in a down cycle, that's the worst time to cut back on lobbying activities because basically you're a mouthpiece to Washington.'' But inevitably, such times are exactly when the cutbacks happen. Few industries are hurting more than steel, which has seen a decline of about two-thirds of its work force since 1980, and 26 companies have filed for bankruptcy since 1998. Yet the Washington lobbying force for the American Iron and Steel Institute has shrunk from 75 a year and a half ago to about 50 now. Gravatt says the fact there haven't been even steeper cuts shows the importance companies place on lobbying. ``The industry has almost pushed aside other things to really focus on this because it's so critical to our survival,'' she said. During a meeting last week, representatives from several trade associations discussed how the recession was impacting lobbying. In addition to widespread job cuts, many firms are in merger talks, and some businesses have decided to lobby on their own to avoid paying for a costly Washington presence. ``Most people were singing the blues like we were,'' said Moore, who attended the brainstorming session. Stephen Gold, executive director of the Associations Council, which sponsored the meeting, said although the need for lobbyists is higher than ever, many companies are finding there's no choice but to cut back. ``Obviously it's important to have a presence in this town, but if the money is not there, the money is not there,'' Gold said. Although the American Farm Bureau recently lost two lobbyists, they were promoted to the Bush administration, not casualties of downsizing. In fact, the lobbying group has largely been immune to cutbacks, despite the recent farm crisis, because it is actually a federation of state organizations, which are federations of county organizations. ``The farmers recognize the impact of government on their daily lives and their ability to make a living,'' said Mark Maslyn, the organization's deputy executive director. Moore, who has announced he'll soon leave his current post to become a part-time ATMI consultant, said the organization is working harder than ever on a wish list that includes passage of an economic stimulus package and denial of reduced tariffs on Pakistani textiles. But ultimately, he says, lobbyists only serve as the megaphone. The voice has to come from the people they represent. ``The message has to come from the districts back home that people are hurting and that there is a need for action,'' Moore said. ``There is a stronger commitment from our members to send that message than ever because the problem is getting more acute.''