[Congressional Record (Bound Edition), Volume 158 (2012), Part 10]
[Extensions of Remarks]
[Pages 14289-14290]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  RECOGNIZING RUMFORD INDUSTRIAL GROUP

                                 ______
                                 

                            HON. SAM GRAVES

                              of missouri

                    in the house of representatives

                       Friday, September 14, 2012

  Mr. GRAVES of Missouri. Mr. Speaker, on July 25, 2012, the Committee 
on Small Business held a hearing examining how, despite the harrowing 
recession and tough economy, some small business owners have grown by 
innovating and strategically adapting their business models in order to 
find success. In the days leading up to the hearing, the Rumford 
Industrial Group, a small firm in Centerville, Ohio, sent me a letter 
highlighting their successes as well as noting the tough choices their 
company must make every day. As our Nation's job creators, small 
businesses, continue to struggle with economic uncertainty, I rise 
today to submit the Rumford Industrial Group's statement as a testament 
to the perseverance, innovation, and hard work accomplished by 
America's small business men and women every day. Their commitment to 
their businesses, employees, and communities is critical to this 
nation's future success.


[[Page 14290]]




                                     Rumford Industrial Group,

                                   Centerville, OH, July 20, 2012.
     House of Representatives,
     House Small Business Committee,
     Washington, DC.
       Dear Chairman Graves: Thank you for the opportunity to 
     discuss our successes and our concerns during this 
     challenging time.
       Rumford Industrial Group is a small industrial distribution 
     company located in Dayton Ohio. Incorporated in 1980 by Jim 
     Rumford we are your typical sales organization. The economic 
     climate in 1980 wasn't very favorable for starting a company. 
     Interest rates were around 18% and banks just weren't lending 
     anyway.
       We've made investments over the years to stay ahead of the 
     competition and as our company grows, we hire. Our group 
     currently numbers 40 over a 5 state territory.
       As a sales organization it is our responsibility to provide 
     certain functions to support our sales staff. These include 
     but aren't limited to: Office/warehouse (of which we're about 
     to break ground on a new 8500 sq ft facility); accounting/
     bookkeeping department; shipping/receiving capabilities; 
     customer service; order taking; marketing department; 
     technical support; sales consultants; application company.
       By having a fully functional office to support our sales 
     field we are able to increase our presence in our industrial 
     accounts by making our sales staff more efficient. This 
     increases our sales and allows us to expand our internal and 
     external organizations.
       In 2009 when the economy tanked we lost 40% of our 
     business. We chose to use our savings accounts to keep people 
     employed instead of laying them off. We believe most small 
     businesses in this country would do the same if they had the 
     option. We were fortunate when in August of 2010 business 
     started picking up and we were able to gain back 25% of the 
     previous year's losses. Still down but not as far. In 2011 we 
     were up 25% over 2010 and so far for 2012 we are running at a 
     35% increase in business. How are we managing this? Well, we 
     went back to the basics. We started calling our customers, 
     knocking on doors and sending email newsletters to let the 
     customer base know about our capabilities. Basically we 
     implemented a great marketing campaign.
       Typically in economic downturns our business does very well 
     as we rebuild and salvage component equipment in the 
     industrial sector. This last downturn didn't just close 
     factories and facilities, they were torn down. Automotive 
     plants that covered hundreds of acres of land are gone. The 
     industries that support big business were just gone. We were 
     fortunate to survive and one of the main reasons for this is 
     that we carry no debt By not having debt to service we can 
     focus on our mission of effectively educating employees and 
     customers on providing reliable lasting solutions for the 
     repair and reclamation of buildings, structures, machinery 
     and equipment.
       I'd like to make an important note. Our success and our 
     survival as a small business is in no part due to the actions 
     of the government. Indeed, the government could have eased 
     lines of credit for small businesses and reduced the 
     paperwork burden to obtain temporary financing, but it either 
     did not happen or the bureaucracy was too burdensome.
       During the economic downturn between 2008 and 2011, we 
     tried to expand our business into the military, specifically 
     the Army. Our focus was to improve the preservation and 
     maintenance of Army equipment and we had numerous meetings 
     with Army officials. Unfortunately, the Army has little focus 
     on reducing the life cycle cost of their equipment and 
     focuses more on quick fixes, thus spending more on 
     maintenance and equipment over time. Indeed, there are few in 
     the government capable of making life cycle determinations 
     during acquisition decisions. After three years of trying to 
     have meaningful discussions and meetings to change the Army's 
     maintenance focus, we returned to our basic commercial roots 
     working with companies who are interested in saving money. We 
     are disappointed by a general lack of business acumen in the 
     government.
       The tax code needs to be completely abolished and rewritten 
     to either a fair or flat tax where everyone pays their fair 
     share, not just the wealthy.
       In discussions around our community here are some bullet 
     points that other small business owners would like to see us 
     share with you.
       1) Keystone Pipeline needs to be completed.
       2) Fracking needs to be allowed to move forward.
       3) SBA--Guarantees were put in place during the financial 
     crisis and then removed. We'd like to see them reinstated.
       4) Obamacare is proving to be burdensome, expensive and 
     doesn't solve the health care problems.
       5) Frustration with lack of federal budget and imbalance in 
     receipts vs. expenditures.
       6) Extend Bush tax cuts for all. This gives us the ability 
     to make plans.
       7) The unceasing attacks by the administration and certain 
     members of Congress on the hard won success of numerous small 
     business men and women who are the backbone of employment in 
     our nation is despicable. To call successful small persons 
     wealthy and to add additional tax burdens such as the Obama 
     Health Plan will hurt employment and investments.
       8) We would like the paperwork associated with small 
     business loans significantly reduced.
       Small businesses can grow and improve the nation's 
     unemployment situation if we have the same access to capital 
     at rates similar to large companies. There is a difference 
     between low risk and no risk and too many financial 
     institutions have taken the no risk approach.
       Rumford Industrial Group is proud of its accomplishments. 
     We have weathered poor economic conditions through hard work 
     and sacrifice, reducing debt, and by making prudent financial 
     decisions. It has not been easy and many of the government's 
     policy decisions have not improved conditions. We look for 
     actions the House Small Business Committee can take to reduce 
     burdensome rules and regulations that will help small 
     business gain faster access to credit, reduce bureaucratic 
     oversight, and promote a tax structure that encourages small 
     businesses to grow in both revenue and employment. Small 
     business is the cornerstone of the great American success 
     story where personal sacrifice can lead to a better life for 
     all the citizens of America.
           With Respect,
     Stephanie Rumford.

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