The MAI noted that the slowdown in the factories caused a sharp decline in local sales for 30% of the companies, while 40% of the factories said their exports efforts were damaged
The Manufacturers Association of Israel (MAI) said last week that Palestinian Kassam rockets fire from the Gaza strip to Israel over the last three years had caused damage of approximately NIS 40 million to factories in Sderot and surrounding areas, forcing dizens of workers out of their jobs.
In a press release issued by Manufacturers Association President Shraga Brosh, he said that "over 100 workers have already left the factories and approximately 14% of the businesses in the region are planning to relocate because of the daily attacks".
The MAI noted that the slowdown in the factories caused a sharp decline in local sales for 30% of the companies, while 40% of the factories said their exports efforts were damaged. Survey carried out by the MAI among factories in the Sderot region showed that 93% suffered from worker absenteeism because of the Kassam rocket attacks.
60% of the factories said they had suffered a slowdown in productivity and said that production mistakes were made due to the added strain on workers. The survey also revealed that 64% of the factories said customers were not arriving to Sderot because of the rocket attacks, while 57% were not dealing with suppliers and 54% had lost contact with service providers.
Brosh called upon the Finance Minister Avraham Hirchson and the Interior Minister Roni Bar-on to assist the companies by extending the 50% discount in municipal tax payments offered to Sderot factories and those in the Gaza region through 2007 and 2008.
The municipal tax discount, which has been in place for the last two years, is, according to published government policy, to be reduced to 25% in January 2007.
