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Sheffield’s Muhlendorf: ‘Finish the Job’ on Death Tax
08/30/2005

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NFIB member David Muhlendorf, president and CEO of Paper and Chemical Supply Co., holds NFIB/Alabama’s sales force in high regard. “NFIB is my voice. I wish we could get everybody to be a member.”

Ask David Muhlendorf what he thinks about the death tax, and like most NFIB members he'll share his view candidly.

“It’s the most ridiculous thing – the phase-in and phase out,” said Muhlendorf, president and CEO of Paper and Chemical Supply Co. “The job needs to be finished.”

Muhlendorf said he recently spoke with U.S. Sen. Jeff Sessions about the death tax debate in Washington, D.C. NFIB is seeking full repeal of this egregious double tax, but Muhlendorf said he supports a compromise if it makes sense. A vote is expected when the Senate reconvenes for the fall session.

“Let’s get it done,” he said. “The clock is running.”

The likable Muhlendorf has been with the family business, which was started in 1949 by his father and grandfather, for 25 years. Shortly after the death of his father, he assumed the chief leadership role at the company, an industrial packaging business based in Sheffield with a distribution center in Leighton, in 1984.

There are plenty of challenges for his 55-person operation, he said.

His company’s single largest expense besides payroll is rapidly rising health insurance costs. He said the company’s minimum annual hike has been 10 percent, with a high a few years ago of 18 percent. Workforce development, specifically finding a solid work ethic in new employees, is also a concern, he said.

“The ability to get a trained workforce is getting much more difficult,” Muhlendorf said. “Replacing [some recent retirees] has been an eye-opening experience.”

Muhlendorf praises Alabama for “doing very well in changing its image as far as a state that’s open for business,” and notes NFIB has helped in this regard. He also is pleased that Alabama has gone from a “tort hell” to a place where cases are being decided on their merits.

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David Muhlendorf, shown here at NFIB’s Small-Business Summit in 2004 with NFIB/Alabama State Director Rosemary Elebash (right) and NFIB/Idaho State Director Suzi Schaefer (left), has become more politically involved in recent years. Muhlendorf said he prefers to have a seat at the table when he sees that public-policy discussions could affect his business.

Singing a familiar tune among NFIB members, Muhlendorf said he’s very concerned “the legislature is dominated by [Alabama’s] teacher’s union. They have a stranglehold on the state.”

Muhlendorf was appointed by the governor in 2003 to chair a task force to help solve the budget crisis in the state, and his committee submitted reduction recommendations of more than $400 million. A supporter of NFIB’s Leadership and SAFE Trusts and an NFIB/Alabama Leadership Council member, Muhlendorf said citizens must elect more pro–small-business legislators in order for balance and discipline to return to the budgeting process.

Up until a few years ago, Muhlendorf said he was idle politically but said he couldn't stand by without participating any longer.

“I at least wanted to be in the ball game,” he said in explaining his change in philosophy and willingness to fund NFIB’s political action committees. The gentleman businessman from Northwest Alabama also would like membership to continue to grow.

“I have a very, very high regard for [NFIB’s] field sales force because they have one of the toughest selling propositions – They're selling the invisible,” he said. “Without question, the sales force does not get the recognition they deserve.”

Muhlendorf probably doesn't, either. In addition to his role at NFIB, he is active in many civic organizations. Currently, he serves on the Foundation Board of Directors of Shoals Community College, the Region 1 Economic Development Advisory Committee, the Executive Board of Directors of the Business Council of Alabama, and the Advisory Board of Compass Bank of the Shoals. He has served as chairman of the Shoals Chamber of Commerce, the United Way of the Shoals, the Northwest Alabama Easter Seals Rehabilitation Center, Riverhill School and the Shoals Entrepreneurial Center, and he was president of the Sheffield Kiwanis Club. 

He’s on the President’s Cabinet at the University of Alabama and the Foundation Board at the University of North Alabama, as well as the following boards: the Northwest Alabama Advocacy Center, Rape Response, and the Advisory Center of the Alabama Technology Center at the Bevill Center in Muscle Shoals.

Somewhere among so much civic and business work, Muhlendorf finds time to relax and play golf. 

“David Muhlendorf is a tremendous activist for NFIB and Northwest Alabama,” NFIB/Alabama State Director Rosemary Elebash said. “His competitive spirit is a huge plus for small business in Alabama and for NFIB, and we count ourselves fortunate he’s on our team.”

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