On Tuesday, I visited Quality Electrodynamics (QED), a medical parts manufacturer located in Mayfield Village, Ohio. I toured QED with the company’s founder Dr. Hiroyuki Fujita and local elected officials, met some of QED’s employees, and discussed how the President’s American Jobs Act would encourage QED and companies like all across America to expand, hire new workers or give raises to existing employees, and invest in new equipment and facilities.
QED designs and manufactures radio frequency coils used in MRI machines all over the world. The company exports 90% of its products to every corner of the globe through companies like Toshiba, Siemens, and others. But they do all of their development, design, and assembly just outside Cleveland, OH. QED was founded just five years ago by Dr. Fujita, and an operation that began with just three employees now has 81 on full-time payroll. The company has doubled its workforce every 18 months since its founding, and expects the trajectory to continue. QED has received grants from the National Institute of Health, been recognized by Forbes as one of America’s Top 20 Most Promising Companies, and was recently featured in the Cleveland Plain-Dealer.
They’ve also recently expanded their portfolio by founding eQED, a partner company that will manufacture a crucial component for solar panels. eQED’s microinverters will increase energy yield from these panels, enhance reliability and lower maintenance costs.
These two great advanced manufacturing companies – QED and eQED – are making investments and hiring workers from the Cleveland area while sustainably expanding their business models. Advanced manufacturing can be a cornerstone of our country’s economic recovery, and QED is showing observers how it should be done. The American Jobs Act has several provisions that would help QED right away.
First, QED would receive a payroll tax cut on its first $5 million in payroll, saving the company valuable cash that can be used to hire new employees, buy new equipment, or expand their efforts in the green energy industry.
In the last year, QED has hired 20 new employees, and they hope to expand their payroll by up to 50 in the next year. Under the American Jobs Act, QED would receive a complete payroll tax holiday for each new employee hired, or any raise given to a current employee.
Finally, QED’s rapid and successful expansion has them looking to purchase new equipment and new space – potentially doubling their manufacturing capacity and opening the door for even more hires. Under the President’s Jobs Plan, QED could expense 100% of these capital investments in 2012.
Dr. Fujita, a Japanese immigrant who now calls Ohio home, recognizes that we can’t solve the problems of every business, but we can lay the foundation on which a great idea can grow into a thriving company. “The Government can’t start your business for you,” he said, “But they can help accelerate what you do.”
After meeting Dr. Fujita and the employees of QED, I couldn’t agree more. There are companies and small business owners like him all across the company who are ready to expand. They just need the incentive. That’s exactly why we need to pass the American Jobs Act – to help entrepreneurs like him energize this economy, get Americans across the country working again, and build the foundation for a sustainable, 21st century economy.