Innovation and Technology

Policy and Legal

Senators Introduce R&D Bill

Get the Latest News

Sign up here

A coming tax change would make it more expensive for manufacturers to undertake cutting-edge innovation—but a bipartisan Senate bill championed by the NAM is set to change that.

Where we are: Right now, if you’re running a business and you invest in research and development, you can immediately deduct 100% of those expenses in the year in which they are incurred. However, beginning in 2022, businesses will be forced to spread their R&D deductions out over a period of years, making it more expensive for manufacturers to undertake R&D. If this change were to go into effect, the United States would also be the only industrialized country in the world with this policy, harming our ability to compete internationally and invest for growth.

The cavalry arrives: The American Innovation and Jobs Act, a bipartisan bill introduced on Tuesday by Sens. Maggie Hassan (D-NH) and Todd Young (R-IN) would repeal the looming change, allowing businesses to continue to deduct their R&D expenses immediately. The bill would also make the R&D tax credit more accessible and more generous for small businesses.

Why it matters: Manufacturers perform the vast majority—nearly two-thirds—of private-sector R&D in the United States. That work not only helps finance important new projects and technological advancements, but it also helps to create well-paying jobs and power economic growth. That’s why the NAM has been leading the business community in getting bipartisan legislation introduced in the House and now in the Senate to stop this harmful change from going into effect.

A word from the NAM: “Research and development is the lifeblood of manufacturing,” said NAM Senior Director of Tax Policy David Eiselsberg. “It is what drives innovation, competitiveness, economic growth and the creation of high-paying jobs. This legislation will ensure that the tax code continues to support the ability of manufacturers to undertake R&D that will help promote economic and job growth.”

Business Operations

Why America Is a Great Location for Manufacturers

Get the Latest News

Sign up here

Manufacturing is a key driver of the American economy—but how does manufacturing in the United States stack up against the rest of the world?

Recently, The Manufacturing Institute and KPMG—a professional services firms providing innovative business solutions and audit, tax, and advisory services—released a new assessment of the cost of doing business in the manufacturing sector for the United States and 16 other major manufacturing exporting nations around the globe.

High costs, but high value: The study found that primary costs (compensation, property, utilities, taxes and interest rates) in the U.S. are on average 16% higher than in the other markets—yet the U.S. ranks fairly high on the list overall at #5.

  • Another number bears that out: over the past decade, foreign direct investment in U.S. manufacturing has jumped from $569.3 billion in 2006 to a record $1,785.7 billion in 2019.

The benefits of tax reform: Tax reform made the U.S. a more desirable location for manufacturers, the study found. It compared how the U.S. would have ranked with its pre-reform corporate tax rate of 40% (the combined federal and state tax rate) instead of the post-reform corporate rate of 27%. With the old rate, the U.S. would have ranked only 11th.

The benefits of skilled workers: A major U.S. advantage is its supply of high-skilled workers. According to the study, the U.S. ranks at the top of the list for real value added per employee, along with Ireland and Switzerland. As manufacturing has become increasingly advanced, the need for sophisticated employees keeps growing.

While it’s true that American manufacturing requires more skilled workers, as The Manufacturing Institute has previously shown, the existing workforce is still a big draw due to its productivity.

The bottom line: The United States is an attractive location for manufacturers, despite relatively high costs, because of high worker productivity and the overall business environment.

The last word: “We need to continue to push the envelope of technological innovation and workforce development and recruitment in the manufacturing sector,” said Chad Moutray, chief economist for the National Association of Manufacturers and director of the Center for Manufacturing Research at The Manufacturing Institute. “These efforts will serve to strengthen the sector overall, but also help to maintain the nation’s global competitiveness.”

Business Operations

Manufacturing Leadership Awards Celebrate Innovative Manufacturers

Get the Latest News

sign up here

Last night, the 2020 Manufacturing Leadership Awards Gala recognized some of the most innovative manufacturers in the country, at a virtual event hosted by the NAM’s Manufacturing Leadership Council. The MLC is a global business leadership network dedicated to preparing manufacturers for the opportunities and challenges posed by digitization, automation and technical advancement.

The winners: Presented to individuals and companies in 12 categories, including Sustainability Leadership and Artificial Intelligence and Analytics Leadership, the awards honor world-class manufacturing achievements. You can find the full list of honorees here.

The word from the MLC: “Creativity. Innovation. Excellence. Enlightened leadership. These are the qualities that drive the people of manufacturing to create a better future,” said MLC Co-Founder and Executive Director David Brousell in his opening remarks. “In doing so, they help themselves, their companies and our collective industry improve the quality of life for everyone. . . . All across this country, innovation in manufacturing is on the march.”

Manufacturer of the Year: The MLC honored two manufacturers with Manufacturer of the Year awards: agricultural chemical and seed company Corteva Agriscience, and Humtown Products, which was honored for its work to popularize 3D printing in sand cores. You can check out our profile of Humtown here.

Manufacturing Leader of the Year: This award went to Gerald Johnson, executive vice president, global manufacturing at GM, for his leadership in GM’s pivot to ventilator production in a partnership with Ventec Life Systems, code named Project V.

High Achiever Award Winners: The judges also presented high achiever awards to one winner in each category. Here’s the list:

  • Lockheed Martin Corporation in the Artificial Intelligence and Advanced Analytics Leadership category for F-35 Augmented Reality Shop Floor Mobility
  • Merck & Co., Inc., in the Collaborative Innovation Leadership category for Digital Fingerprinting
  • Humtown Products in the Engineering and Production Technology Leadership category for Commercialization of 3D Printing in the Metal Casting Industry
  • IBM in the Enterprise Integration Technology Leadership category for Migrating Supply Chain Quality Workload to Cloud
  • Cooley Group in the Industrial Internet of Things Leadership category for Transforming Legacy Machinery into Smart Tech
  • Hologic Inc. in the Operational Excellence category for Building a Culture of Operational Excellence
  • Starkey Hearing Technologies in the Supply Chain Leadership category for Supply Chain Management Transformation
  • The Boeing Company in the Sustainability Leadership category for Diverting Waste to Landfill While Upcycling Excess Airplane Carbon Fiber
  • Nexteer Automotive in the Talent Management category for the Manufacturing Engineering Global Talent Management and Training Program
Press Releases

Government Mandates Will Not Lower Drug Costs

Timmons: “We should not import failed socialist price controls”

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on the administration’s proposed rules to address drug pricing.

“We should not import failed socialist price controls, and we are surprised that President Trump and Secretary Azar would consider such actions. Our battle with COVID-19 shows just how vital pharmaceutical innovation is to our health and survival, and we cannot afford to limit companies’ ability to develop lifesaving treatments for this or future medical crises.

“Importing drugs from foreign countries that don’t guarantee the same standards for drugs made for the U.S. market poses a serious health risk, especially considering the counterfeiting challenges we already face.

“If enacted, tying any portion of our system to a foreign government-run health care system, through International Price Indexing or other means, is an abdication of free market principles.

“Manufacturers of all sectors are committed to lowering health care costs, and we call on the administration to commit to better market-based solutions that won’t hand over private-sector decisions to foreign governments, potentially impacting Medicare recipients and impacting our ability to help provide lifesaving medicines.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 11.7 million men and women, contributes $2.37 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Policy and Legal

Report: U.S. Leads in Pharma Innovation, Thanks to Effective Policies

Get the Latest News

Sign up here

The new report from the ITI Foundation offers strategies to maintain U.S. strength, spur greater innovation and increase domestic production.

U.S. policies spur success: “America still leads in innovation and drug development, in large part due to effective life-science policies, including significant federal investment in life-sciences basic research, robust intellectual property (IP) protections, effective technology transfer policies, investment incentives, and, importantly, drug pricing policies that enable companies to invest in high-risk drug development.”

Recommendations for policymakers: The paper suggests U.S. policymakers should focus on four key areas:

  • Maintaining U.S. strength in pricing, tech transfer and intellectual property—and avoiding oppressive drug price control schemes that damage competitiveness;
  • Boosting innovation through investment and additional tax incentives that promote research and development;
  • Increasing domestic production, including via tax credits and additional funding for key research institutions; and
  • Combating foreign mercantilism by making sure that America’s trading partners pay their “fair share” for new drugs, treatments and other medical products.

Innovation in the time of COVID-19: At a time when U.S. pharmaceutical companies are central to the fight against a global pandemic, the ability to innovate successfully is of paramount importance. The U.S. House Committee on Energy and Commerce held a hearing on Tuesday that discussed the issue, titled “Pathway to a Vaccine: Efforts to Develop a Safe, Effective and Accessible COVID-19 Vaccine.”

The NAM says: “The research ecosystem we have in the United States supports a global leadership position of biopharmaceutical innovation,” said NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling. “Manufacturers are committed to building upon that innovation—but it’s clear that government-led pricing restrictions and importing bad health care policies used by our competitors is not the way forward.”

Related . . . The NAM has launched a new six-figure television and digital ad campaign aimed at potential rules to address drug pricing through International Price Indexing and drug importation.

Press Releases

NAM Launches Cyber Cover to Protect Manufacturers

AHT Insurance and underwriter Coalition partner with the NAM to deliver cybersecurity solution

Today, the National Association of Manufacturers announced the launch of NAM Cyber Cover, an exclusive cybersecurity and risk mitigation program for its member companies and organizations. This critically important and timely offering was developed in partnership with AHT Insurance and Coalition, which specializes in underwriting cyber and technology insurance.

“Modern manufacturers are deploying advanced technologies that are transforming what we make and how we make it. This rapid digitization and the workplace disruptions created by the COVID-19 pandemic have created new and unprecedented risks for our members,” said NAM President and CEO Jay Timmons. “Our partnership with AHT and Coalition will help protect our industry from cyberattacks and ensure we can continue to lead our economic recovery and renewal.”

According to a recent Wall Street Journal article, nearly two-thirds of manufacturers currently have no cyber insurance, and many manufacturers have no plans to invest in improved cybersecurity measures or data protection efforts. Recognizing the significant threat cyber vulnerabilities pose to its diverse membership, the NAM led the creation of Cyber Cover.

“The inimitable exposures manufacturers face, coupled with an unrelenting target on the industry, necessitates a pivot in how cyber programs are structured,” said AHT President and CEO David Schaefer. “We look forward to helping NAM members make that pivot to manage risks up front and protect themselves against cyberattacks.”

NAM Cyber Cover offers full support for responding to and recovering from potential risks and cyberattacks, differentiating it from traditional, standalone insurance.

“Manufacturers are more reliant on technology than ever before and more in need of a solution to survive catastrophic security failures and data breaches,” said Coalition Founder and CEO Joshua Motta. “We’re proud to partner with the NAM and AHT to revolutionize the way manufacturers mitigate cyber risk, providing security tools to prevent incidents and incident response support to mitigate losses, together with the safety of insurance.”

To learn more about NAM Cyber Cover, visit www.namcybercover.org

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 11.7 million men and women, contributes $2.37 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Twitter and Facebook, please visit www.nam.org.

About AHT Insurance

AHT Insurance is a brokerage and consulting firm offering property and casualty, employee benefits, retirement, personal and international services for a wide range of industriesnotably receiving national recognition for its practices in areas including technology, manufacturing, government contracting and nonprofits. https://www.ahtins.com

About Coalition

Coalition combines comprehensive insurance and free cybersecurity tools to help businesses manage and mitigate cyber risk. Backed by A+/A rated insurers Swiss Re Corporate Solutions and Argo Group, Coalition provides companies with up to $10 million of cyber and technology insurance coverage in all 50 states and the District of Columbia. https://www.coalitioninc.com

Press Releases

NAM Releases Agenda to Strengthen Manufacturing Supply Chain

Launches Seven-Figure National Advertising Campaign to Bolster Business in America

Washington, D.C. – The National Association of Manufacturers has released a detailed agenda of supply chain policy recommendations to help policymakers as Congress and the administration look at ways to boost long-term economic growth. Manufacturers are also launching a seven-figure national advertising campaign on the importance of U.S. supply chains in the wake of COVID-19. The national television and digital advertising campaign urges leaders to make smart policy decisions that incentivize job creation and investment in America, without closing off critical global supply chains. Such a constructive approach will enable manufacturers to lead America’s recovery and renewal while continuing to produce the vital supplies, medicines and essential products on which Americans’ health and safety depends.

The policies that we are proposing will allow manufacturers to lead our economic recovery by strengthening supply chains and accelerating onshoring, through incentives for creating the next job or investing the next dollar right here in America. We also cannot close off access to critical components or resources that our lifesaving and life-changing products require, said NAM President and CEO Jay Timmons. Manufacturers are working around the clock to create the protective equipment, cleaning supplies, medicines and other essential products in the wake of COVID-19, and we need the right policies so we can make even more here at home and lead a truly historic American renewal.

In April, the NAM released its “American Renewal Action Plan,” which provides a comprehensive list of policy recommendations to guide the country through the stages of response, recovery and renewal.

More information on the campaign can be found at www.nam.org/recovery.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 11.5 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for 63% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org

Press Releases

NAM’s Timmons Named to COVID-19 Great American Economic Revival Industry Groups

Timmons: Manufacturers Will Drive Next Phase of American Renewal

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on the NAM being included in President Trump’s Great American Economic Revival Industry Groups.

“Throughout this crisis, manufacturers have been leading the way. Much of the sector has been fully operational, making critical personal protective equipment, medical supplies and ventilators, in addition to producing food and household essentials. Manufacturers have many examples of safe and healthy practices to share.

“Throughout the past month, the NAM has provided the White House, FEMA, the Coronavirus Task Force, DHS and other agencies with our legislative solutions for economic stabilization and future growth, as well as a database of available PPE supply and connecting the supply chain with OEMs.

“Over the past three years, manufacturers have produced impressive gains in investment, job creation and wage growth here in the United States. As the nation prepares to move from relief to recovery and bringing our $22 trillion economy out of its ‘induced coma,’ I look forward to working with the Great American Economic Revival Industry Groups, including the 44 NAM member companies that were also named, to drive this next phase of American renewal, while putting the health and well-being of the American people first. Ultimately, manufacturers, the backbone of this economy, want to be able to invest, grow and hire—right where we left off.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.8 million men and women, contributes $2.37 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Twitter and Facebook, please visit www.nam.org.

Press Releases

Business Roundtable, NAM Combine COVID-19 Response Efforts to Address Critical Shortages

Partnership Brings Together Full Strength of U.S. Business and Manufacturing Communities

Washington, D.C. – The National Association of Manufacturers and Business Roundtable are joining forces to strengthen the business community’s response to the critical supplies shortage facing the nation’s medical community due to COVID-19. The partnership brings together the full strength of the U.S. business and manufacturing communities to help those on the front lines of the pandemic. NAM President and CEO Jay Timmons and Business Roundtable President & CEO Joshua Bolten will serve as co-chairs of this effort.

The NAM and Business Roundtable will help consolidate efforts across industry sectors in the United States and report the data to the federal government. The NAM and Business Roundtable are encouraging their members to share information on medical supplies and equipment, including personal protective equipment and test kits, through a co-developed online survey. The data will capture existing supplies as well as where new manufacturing capacity can be tapped to address shortages nationwide.

Upon announcement of this partnership, Vice President Mike Pence offered the following statement:

“Our nation’s job creators have embraced President Trump’s ‘whole-of-America’ response to the coronavirus outbreak and have quickly mobilized to find innovative solutions for the challenges ahead of us,” said Vice President Mike Pence. “From coast to coast, America’s businesses have brought a truly extraordinary response to this moment, and they should be commended for answering the call and being part of the solution.”

Upon announcement of this partnership, Bolten and Timmons released the following statements:

“Only through a concerted effort can this country address the current shortages of critical medical supplies and equipment,” said Bolten. “Working with our members to identify excess inventories as well as additional manufacturing bandwidth is one way we can help those on the front lines of the fight against COVID-19. Our goal is to keep all Americans healthier and safer.”

“Manufacturers in America are reigniting the ‘arsenal of democracy’ and mobilizing to help our nation overcome this historic crisis, and it is inspiring to see thousands of manufacturers stepping up to join the fight over just the past two weeks,” said Timmons. “By combining the NAM’s nationwide efforts with the work of Business Roundtable, we will be even more effective in our vital work. We are coordinating directly with the administration and manufacturing leaders to identify existing equipment and ramp up production of urgently needed health supplies. America’s creators will respond to this challenge, just as we have throughout history. We are all in this together as we fight to keep our country healthy and strong.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.8 million men and women, contributes $2.37 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Twitter and Facebook, please visit www.nam.org.

-BRT-

Business Roundtable CEO members lead companies with more than 15 million employees and $7.5 trillion in revenues. The combined market capitalization of Business Roundtable member companies is the equivalent of over 27 percent of total U.S. stock market capitalization, and Business Roundtable members invest nearly $147 billion in research and development – equal to over 40 percent of total U.S. private R&D spending. Our companies pay $296 billion in dividends to shareholders and generate $488 billion in revenues for small and medium-sized businesses. Business Roundtable companies also make more than $8 billion in charitable contributions.

Press Releases

Manufacturers’ Survey Reveals Current Industry Impact of COVID-19

Washington, D.C. – The National Association of Manufacturers released the findings of a survey of manufacturing leaders examining the economic and operational impacts of COVID-19. This survey informed the NAM’s “COVID-19 Policy Action Plan Recommendations” released earlier this week, which highlighted key policy areas where legislative and administration action would help combat COVID-19 and future public health emergencies successfully.

Survey highlights include the following:

  • 78.3% of manufacturers anticipate a financial impact
  • 53.1% of manufacturers anticipate a change in operations
  • 35.5% of manufacturers are facing supply chain disruptions

“Already, manufacturers are grappling with disruptions to their businesses due to the COVID-19 outbreak, with many anticipating financial and operational consequences—even before some of the developments of this week. The federal government can take steps to further equip manufacturers to deal with COVID-19 by implementing the NAM’s ‘COVID-19 Policy Action Plan Recommendations,’” said NAM President and CEO Jay Timmons. “Across the country, manufacturers are stepping up to keep their employees and their communities safe and healthy, and working closely with elected officials, we can ensure the resilience not only of our companies but also our country.”

Read the full survey results here.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.8 million men and women, contributes $2.37 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Twitter and Facebook, please visit www.nam.org.

View More