U.S. Commerce secretary visits Wabash Valley

By Sue Loughlin
The Tribune-Star

TERRE HAUTE Sun, May 18 2008

— At a time when the economy is facing a possible recession, Clabber Girl in Terre Haute has been expanding, adding jobs and increasing export markets.
That’s why U.S. Commerce Secretary Carlos M. Gutierrez visited Clabber Girl Friday, describing it as a model for other companies to follow.
“Companies like you prove that the way to grow is to compete, to be engaged, to open up markets, to export, to innovate, to launch new products,” he said. “You’re a great example of that. The fact you’ve been around for 150 years and you’re still growing is incredibly impressive.”
While at Clabber Girl, Gutierrez advocated for President Bush’s economic stimulus package, and he also urged Congress to encourage more exports by approving free trade agreements (FTAs) with Colombia, Panama and South Korea.
The FTAs would help open up new markets to companies such as Clabber Girl, which already exports to more than 40 countries, Gutierrez said. Ten to 15 percent of the company’s total sales come from exports.
Also, Clabber Girl has doubled the number of countries it exports to over the past six or seven years.
The FTAs make sense, Gutierrez told Clabber Girl employees and community leaders.
“We give these countries preferences to export into our country. They export to the U.S. pretty much duty-free,” he said. “Our products pay a duty [import tax] going into to Colombia, Panama and South Korea.”
The agreements will even the playing field by eliminating most export duties “and also give us preference going into their markets,” Gutierrez said. “It’s going to help us grow and help companies like you access some new markets.”
He also took the opportunity to advocate for President Bush’s economic stimulus package. Earlier Friday, the U.S. Labor Department reported that employers cut 17,000 jobs in January — the first such reduction in more than four years and yet another sign the economy may be headed toward recession.
“We take that very seriously,” Gutierrez said.
The economy grew at a slower rate the last quarter, and he expects the slower growth rate to continue for the next two quarters as the country goes through what he described as “a housing correction.”
The second half of the year, “We should be back to the kind of growth rates that we’ve had over the last four or five years, which are very solid, very strong,” Gutierrez said.
To get through the current economic slowdown, Bush has proposed a $150 billion economic stimulus package “that gives people a tax cut and sends you a check for that tax cut as soon as possible,” he said.
Of the total, $100 billion would go to the American people in the form of a check — $300 to $600 for individuals with incomes up to $75,000, and $600 to $1,200 for married couples with income of up to $150,000.
“We’re talking about a good amount of money being placed in the American people’s hands so they can go out and spend it and continue to stimulate the economy while we get through the housing correction,” Gutierrez said.
The federal package has been approved by the House and is now in the hands of the Senate.
Gutierrez noted that there are those who would like more protectionist policies that discourage imports and call for less reliance on overseas markets.
“We think that’s a big mistake. Every time we we’ve tried that in the past, we’ve suffered because of it,” Gutierrez said. “If anything, we should be jumping in full speed ahead — approving trade agreements and allowing companies like yours to continue to grow, to compete and create jobs.”
Gary Morris, Clabber Girl president and chief operating officer, said that increased free trade agreements would benefit the company. Right now, Clabber Girl is negotiating with distributors in Colombia to sell products there. A free trade agreement would make the company’s products even more competitive there by eliminating duties (import taxes).
Morris said it was “amazing” to have the company recognized by the U.S. Commerce secretary. Gutierrez visited one other Indiana company Friday, Cummins Fuel Systems plant in Columbus.
Teresa Shaffer, Clabber Girl public relations manager, said Clabber Girl had a positive story to tell that illustrates many of the points Gutierrez wanted to make. “We’ve been adding jobs and expanding and we also do a lot of business with trade and export,” she said.
“We’re very excited. As far as I know, it [a visit by a sitting Cabinet member] is something pretty unprecedented here in our area,” she said.
More than a decade ago, then-U.S. Secretary of Education Richard Riley visited Sarah Scott Middle School.
Clabber Girl makes baking powder, corn starch, mixes and numerous other products.
It recently expanded, building a new manufacturing facility. In the past year, Clabber Girl has added about 24 jobs, and Shaffer said she expects that growth trend to continue.
Sue Loughlin can be reached at (812) 231-4235 or sue.loughlin@tribstar.com.

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