Innovation and Technology

Washington, D.C. – Following the Senate’s passage of the CHIPS-Plus Act, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“The CHIPS-Plus Act will deliver a powerful boost to manufacturers’ competitiveness. Manufacturers across all sectors rely on access to chips, so this bill will help strengthen American supply chains thanks to its investments in domestic semiconductor production—as well as its funding for programs to support the STEM workforce, advanced technology development, excavation of critical minerals, clean energy and more. Manufacturers have worked with lawmakers for more than a year to advance many provisions of this bill, and we urge the House to pass it as quickly as possible and get it to President Biden’s desk.

“CHIPS-Plus should only be the beginning, however. We will continue advocating policies needed to beat back economic headwinds such as inflation and supply chain disruption. And we will work with Congress to move quickly on policies from the U.S. Innovation and Competition Act and the America COMPETES Act that were left out of CHIPS-Plus, such as anti-counterfeiting measures, important trade provisions and further investments in supply chain resilience and workforce development.

“It’s encouraging to see this Congress once again come together in a bipartisan way to make critical investments in our industry’s competitiveness and our country’s future. Manufacturers look forward to building on this progress. This and future China competition legislation will help us to innovate, create jobs, expand domestic operations and grow the U.S. economy for years to come.”

-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 $2.77 trillion to the U.S. economy annually and accounts for 58% 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

Washington, D.C. – The National Association of Manufacturers has launched a six-figure broadcast and cable television advertising campaign ahead of a potential reconciliation bill that threatens manufacturing innovation and competitiveness. The campaign calls on senators to oppose government price controls that would undermine the development of lifesaving medicines and the livelihoods of manufacturing workers across America who deliver them.

“Government price-setting schemes that undermine our ongoing work to develop lifesaving cures to diseases like cancer and Alzheimer’s and respond to health crises are never the answer,” said NAM President and CEO Jay Timmons. “At a time when manufacturers are already facing extraordinary economic pressures, the Senate should be focused on bolstering our industry’s competitiveness, not undermining it. We are calling on senators to vote ‘no’ on reconciliation and stand with manufacturers and the hardworking Americans who are integral to battling this pandemic and discovering future cures.”

To view the latest television ad, click 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 $2.77 trillion to the U.S. economy annually and accounts for 58% 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.

Washington, D.C. – Ahead of consideration of legislation to bolster U.S. semiconductor manufacturing, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“A vote for the CHIPS Act funding is a vote for a stronger, more competitive manufacturing industry in America. But if Congress fails to pass this investment in the coming days, they will hand other countries a competitive advantage and weaken our own economy at a precarious moment.

“Other provisions of the China competition bill still under negotiation also need to make it to the president’s desk, and manufacturers firmly support their inclusion in this package. We will continue our advocacy for the anti-counterfeiting measures, trade provisions, supply chain investments and more. Congress must get those done.

“This week, we can take a powerful step forward with chips funding and move toward a future where semiconductor shortages—and the disruptions they’ve created—are a thing of the past. Other nations are not waiting around to ramp up semiconductor manufacturing. America should be leading, not falling behind.”

Background:

According to the NAM’s latest Manufacturers’ Outlook Survey, more than 88% of respondents said it was important for the federal government to take steps to support the domestic manufacturing sector in the face of increased global competition for industrial investment, with nearly 58% saying “very important” and 30.7% saying “somewhat important.” When asked about what aspects of the China competition legislation were most important for supporting manufacturing activity, the top choices were addressing port congestion and competition issues in ocean shipping (70.9%), eliminating ill-conceived labor provisions that facilitate unionization campaigns (61.3%), strengthening U.S. leadership in energy innovation and competitiveness (58.2%), funding to increase domestic semiconductor production capacity (57.9%), investments to support the critical minerals supply chain (55.7%) and ensuring the tax code provides a full deduction for research expenses (48.3%), among others.

-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 $2.77 trillion to the U.S. economy annually and accounts for 58% 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.

As energy prices remain at their highest levels in more than a decade, there’s little sign that the U.S. is on a steady course toward energy security. That’s why the NAM is urging the federal government to pursue all available options—including nuclear.

The lowdown: Nuclear energy is a safe, reliable and the largest zero-emission source of energy in the U.S.

• At a time of pronounced supply chain challenges, oil-and-gas lease cancellations and costly shortages of critical minerals, nuclear energy could go a long way toward fortifying the grid.
• In addition, the technology has advanced enormously in recent years. Microreactors, small enough to be moved by truck, are poised to help solve the challenge of powering remote areas.
• The Department of Energy also recognizes the importance of nuclear energy, recently noting its relevance to energy security in the department’s Supply Chain Assessments.

What we’re saying: “The reality is that to meet our growing electricity needs and climate goals, nuclear-generated power must be part of the solution,” said NAM Director of Energy and Resources Policy Chris Morris. Here are his key policy recommendations:

• Encourage capital formation: The NAM secured a significant $6 billion investment in the Civilian Nuclear Credit Program through the recent infrastructure bill, but more robust investments will be needed to ensure operations continue at current nuclear projects, Morris said.
• Relicensing: Licensing and permitting processes should meet the highest standards, but the Nuclear Regulatory Commission often takes years to complete them. The NRC should use its position on the Federal Permitting Improvement Steering Council to make efficiency improvements in its licensing processes under the recently announced Permitting Action Plan.
• Fuel supply chain security: The U.S. imports uranium for civilian nuclear use from Russia, Kazakhstan, Uzbekistan, Canada and Australia, among others. Meanwhile, new advanced reactor concepts will utilize high-assay low-enriched uranium (HALEU) which is now solely produced by Russia and China. The NAM has been calling on policymakers to prioritize increasing domestic production.
• SMRs and microreactors: Small modular reactors use factory-built components to streamline construction, while microreactors are portable and self-sufficient. Both will be crucial for next-generation nuclear power—but the U.S. government must invest in their manufacturing and modernize regulations accordingly.
• Spent fuels: The NAM has long supported ongoing R&D into the storage and transportation of spent fuels—and progress is being made. Just yesterday, NRC staff recommended licensing a new storage project in New Mexico, “determining there would be largely minor environmental impacts from the project,” according to POLITICO (subscription).
• Public perception: Commercial nuclear power is sometimes viewed as dangerous or unstable based on historic misconceptions. In truth, the U.S. nuclear industry is leading the world in best practices, safety and accountability. Policymakers must engage with local communities to provide the facts and emphasize the importance of nuclear power for combating climate change.

The last word: “Our current fleet and the next generation of nuclear power must be a substantial part of a clear-eyed strategy to address climate and energy security,” Morris said.

How is digitization changing manufacturing? What can manufacturers do to stay competitive in a fast-shifting world? What does the future look like—and how can leaders prepare for success?

Those are the kinds of questions being asked and answered by the NAM’s Manufacturing Leadership Council—a member-driven global business leadership network focused on the intersection of manufacturing and technology. We spoke with David R. Brousell, MLC co-founder, vice president and executive director, who gave us more insight into what the MLC is, how it works and why it matters today more than ever.

An early start: The idea for the MLC was born nearly two decades ago, when manufacturers began turning to consumer technologies to strengthen their businesses.

• The convergence of these technologies with traditional operational technologies on factory floors sparked an idea. Brousell, who was running a publication called “Managing Automation,” recognized the trend—which he called “Progressive Manufacturing”—and founded an annual conference for manufacturers to discuss new approaches and best practices for the future.
• By 2008, that conference had given rise to a council designed to offer useful programming for manufacturers on the future of digitization. Ten years later, the council became a part of the NAM.
• “We realized that digitization was not a tactical or small change—it was a fundamental change in the industry,” said Brousell. “It was clear that manufacturers needed an informational resource or organization to bring them together to deal with what we now call Manufacturing 4.0 in a systematic way.”

A systematic approach: Today, the MLC represents what Brousell calls “the digital transformation arm of the NAM,” helping manufacturers meet future needs and address ongoing trends—through changes in technology, organization and leadership.

• “The transition to the digital model of manufacturing is only one part technical,” said Brousell. “The harder part is changing the organizational structure to be more collaborative and decentralized and making the leadership approach digital-first. We’re probably the only organization that has looked at it this way, in a systematic way, beyond technology alone.”

A critical focus: Every year, the MLC lays out a member-approved set of critical issues involved in the transition to Manufacturing 4.0 and offers resources and programming from thought leadership to plant tours to the Rethink Summit.

• This year’s critical issues include topics like factories of the future; transformative technologies, including AI and machine learning; augmented reality and virtual reality; Manufacturing 4.0 cultures; and cybersecurity.

A broad view: Digitization isn’t just an issue for individual manufacturers. Because manufacturing is so vital to economic and societal growth, it’s also important to the future of the United States and the world.

• “Manufacturing is one of the fundamental drivers of social and economic prosperity,” said Brousell. “Its growth will lead to a better life for people. No other industry can say that. And I believe that the countries whose companies are most successful in making the transition to the digital model are going to be the powers of this century. There’s a lot riding on this.”

Sign up: Come learn from leading manufacturers at the Rethink Summit, June 27–29, in Marco Island, Florida. It’s the premier event for senior operational executives and their teams as they continue to navigate disruption.

Supply chain disruption could continue for more than another year, according to the newest Resilient M4.0 Supply Chain survey conducted by the NAM’s Manufacturing Leadership Council. The MLC is the digital transformation arm of the NAM.

What’s the holdup? A combination of factors is causing fundamental shifts in supply chain approaches across the industry. These include pandemic lockdowns, blocked shipping lanes, container scarcity, material and component shortages, extreme weather events, rising prices and military conflict.

What manufacturers are doing about it: Supply chain organizations are reassessing traditional supply chain strategies, reducing network complexity and integrating key functions.

• They are also redesigning processes and harnessing the power of digital tools to transform their supply chain ecosystems.

Universal disruption: Even supply chain structures with some local or regional networks have been affected by recent events, according to the MLC’s survey.

• Ninety percent of respondents reported suffering either significant (52.5%) or partial (39%) disruption in the past two years. Just 0.5% said they had seen no disruption. 

Improving resilience: While many manufacturers have taken action to reduce supply vulnerabilities, 73% of companies said their current supply chains are not fully protected, and 12% said they believe their supply chains lack resilience.

Integrated supply chains: While today just 19% of companies said their supply chain structures are fully integrated, this proportion is set to more than double (to 47%) within the next two years.

• The number of companies that remain dependent on siloed operations is set to fall from 14% to 4% over the same period.

Digital opportunities: The race to fully digitize more supply chain operations is picking up speed.

• In nearly every supply chain function, companies said they are planning significant increases in digital adoption in the next two years to streamline their supply chain organizations.

Obstacles to progress: Many obstacles to future supply chain development involve issues with industry partners. Among the challenges cited by manufacturers in the survey were the following:

• Differences in digital maturity among partners (54%)
• A lack of common data platforms (53%)
• Problems transforming traditional supply chain processes (29%)
• Upgrading legacy equipment (26%)
• A lack of skilled employees (22%)

Review the data: Click here to review the data in detail and read manufacturer responses to survey questions.

Washington, D.C. – Following today’s Senate–House conference committee meeting on the China competition legislation, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Manufacturers are encouraged by efforts in Congress to reach a strong, bipartisan agreement that strengthens domestic manufacturing, increases our global competitiveness and provides new opportunities for the more than 12 million people who make things in America. The first meeting of the conference committee to finalize legislation reconciling the United States Innovation and Competition Act and the America COMPETES Act is an important step toward overcoming ongoing supply chain disruptions, countering inflation and supporting U.S. manufacturing in the face of major global competitors, namely China.

“Lawmakers must prioritize provisions that will streamline essential domestic supply chains and the production of key inputs, such as an investment of $52 billion to bolster domestic semiconductor manufacturing, the creation of a fund to strengthen supply chain resiliency and inclusion of the Ocean Shipping Reform Act. Manufacturers also support policies to advance and grow U.S. international trade and provisions that strengthen U.S. energy innovation leadership. The conference committee should also avoid labor provisions that would harm American manufacturers and workers alike as we look to fill more than 800,000 jobs in the sector.”

-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 12.7 million men and women, contributes $2.71 trillion to the U.S. economy annually and accounts for 58% 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.

As supply chain bottlenecks and materials shortages continue to challenge both the U.S. and the world, companies in the semiconductor industry are working hard to meet high-quality standards, achieve strong technological innovations and keep up with the growing demand.

To meet these goals, chip producers as well as all their suppliers are continuously investing time and funds into new products, technologies and facilities.

SGL Carbon, a global manufacturer of products derived from carbon and graphite, is part of this supply chain for chip producers.

Heavily invested: The company, which has its North American headquarters in Charlotte, North Carolina, has been investing significantly in its semiconductor-related production while working hard to meet demand and keep pace with the ever-shifting market.

• Over the past four years, SGL Carbon invested approximately €30 million into enhancing its production capacities and a modern clean-room environment in St. Marys, Pennsylvania, the home of its main North American operations related to the semiconductor industry.

Smaller size, bigger impact: The semiconductor market is a dynamic sector, and its applications are now more essential than ever to everyday life, according to SGL Carbon Vice President of Marketing and Sales Doug Garda. As chips get smaller, their efficiency and performance are getting bigger—and so is the global appetite for them.

• “We’re seeing more and more demand globally, and the infrastructure that exists in the industry isn’t sufficient to meet those demands,” Garda said. “Especially with the Internet of Things, e-mobility, LED lighting and automated production, there are so many more applications and high-performance variants of chips required for the future. We need to meet that very steep demand curve.”

Global shortages: While in development, semiconductor chips can cross international borders 70 times before the end product reaches a consumer, fueling significant complexity in the manufacturing process and supply chains.

• With the onset of the COVID-19 pandemic, labor challenges, shifts in consumer needs and general unpredictability have fed worldwide supply issues.

High demand: In the midst of these shortages, the market for silicon-based wafers, used for regular chips, is expected to grow by 5% annually over the next five years. However, the market for special silicon-carbide-based wafers, used for high-performance chips, is expected to grow by 30% or more annually over the same period.

A critical market: Sometimes described as the “brains” of electronic devices, from automobiles to home appliances to personal electronics and medical devices, semiconductors are critical components for all sorts of manufactured products. A shortage in semiconductors creates ripples all across the manufacturing industry.

• “The semiconductor market is a key component to any region’s manufacturing needs right now,” said SGL Carbon NA Network Operations Manager Tom Detsch. “It’s one of the most important opportunities of our time—and we’re of course also looking for funding options to further grow.”

Eye on Congress: The U.S. House of Representatives and Senate have both considered legislation designed to strengthen the U.S. semiconductor industry, but differing bills have left Congress with varying approaches.

• The House passed a bipartisan CHIPS Act in the National Defense Authorization Act authorization last year, but it lacked funding. The funds were instead included in subsequent legislation, the America COMPETES Act.
• Meanwhile, the Senate passed its CHIPS Act funding through the United States Innovation and Competition Act of 2021 (USICA).

“The question remains: what’s next?” said Detsch. “These markets are growing. How much is going to be in the United States, and how much will be outside? There’s government funding being looked at here in the U.S. and abroad. That’s something that would be interesting for us in the U.S. if something like that were to be available.”

Our take: The NAM is strongly supporting efforts to increase domestic chipmaking capacity here in the United States and is urging the federal government to help make that goal a reality.

The last word: “We’re a solutions provider, and demand for our graphite products has expanded rapidly,” said Garda. “Without graphite-based equipment, no semiconductors could be manufactured. Thus, this will be a growing market for us and for North America in general for a long time.”

Workforce inspiration, COVID-19 safety, sound legislative policy, tax reform and democracy—these were the main themes NAM President and CEO Jay Timmons discussed during the NAM’s State of Manufacturing address Thursday at Chandler-Gilbert Community College Williams Campus in Mesa, Arizona.

Inspiring the workforce of tomorrow: Manufacturing is a high-tech, fast-paced, well-paying place to work, Timmons told the audience as he stood before the Creators Wanted Tour Live mobile experience, an initiative of the NAM and its workforce development and education partner, The Manufacturing Institute. But, he said, the industry has not been immune to the labor shortage.

• “For each of the past nine months, manufacturers in America have had more than 800,000 open jobs in our industry—800,000 chances to launch a well-paying career,” Timmons told the audience of college students, teachers and staff, as well as local manufacturers. “In Arizona, there were more than 11,000 openings in just the first 45 days of 2022.”
• Yet the state of U.S. manufacturing is, Timmons announced, resilient. “There’s hardly ever been more opportunities for future manufacturing workers. Innovators. Designers. Technicians. Creators. We’re a $2.57 trillion industry, with more than 12.5 million workers and counting. And the vast majority of manufacturing leaders say they are optimistic about the future.”

 Getting policy right: Timmons also talked about the policy landscape and stressed the need for lawmakers to enact robust supply-chain, immigration-reform and competitiveness measures.

• “If we’re really going to outcompete China and other countries, then we need Congress to finish up the ‘global competitiveness bill’ they’re working on and get it to the president,” Timmons said.
• He added that coming legislation must include measures to bolster supply-chain resilience, combat goods counterfeiting and increase domestic semiconductor manufacturing.

 “Rocket fuel” required: Following the passage of tax reform in 2017—which Timmons called “rocket fuel for our economy”—manufacturers have “kept our promises to raise wages, hire more workers and invest in our communities,” he said.

• “For more than a year, some politicians have tried to raise taxes on manufacturers,” Timmons said. “They tried it with the COVID-19 relief bill. They tried it with infrastructure. They tried it with Build Back Better. And three times, manufacturers said don’t do it. And we won. The voices of moderation in the Senate prevailed.”
• “But if tax reform is repealed or punitive measures, such as the ‘book tax,’ are passed, the U.S. economy will suffer,” Timmons said.

Safeguarding values: America’s values and institutions are what have made manufacturing possible, Timmons said, and we must defend them from the threats they now face.

• “Today, America faces new threats to our democracy, including those threats from within,” Timmons said. “And once again, manufacturers stand proudly on the side of protecting and preserving American democracy and our constitutional republic.”

Media mentions: News of Timmons’ address was picked up by national outlets including POLITICO Pro’s Morning Trade and Fox Business, and an op-ed by Timmons ran on Cleveland.com.

Point of emphasis: “I’ve always believed, and the past two years have reinforced, that manufacturers are in the business of causes greater than self. From building the arsenal to win a world war decades ago, to pioneering the treatments to defeat today’s diseases and pandemics, we change the world,” Timmons underscored in the wrap-up of the address.

Read Timmons’ full remarks here. Learn more about the Creators Wanted campaign and encourage students in your networks to RSVP for its Scottsdale, Arizona, showcase on March 7 here.

The NAM is calling for a U.S. economic approach in the Indo-Pacific region that incorporates several key trade elements for manufacturers.

The background: Earlier this month, the White House unveiled a 12-page strategy overview focusing “on every corner of the region from South Asia to the Pacific Islands to strengthen its long-term position and commitment,” according to Reuters (subscription).

• In the document, the U.S. promises to strengthen partnerships, modernize alliances and invest in regional organizations.
• According to an action plan for the next one to two years, the U.S. will “‘meaningfully expand’ its diplomatic presence in Southeast Asia and the Pacific Islands.”

The NAM’s view: “As the administration continues to develop the framework, it must prioritize an approach that supports manufacturing and manufacturing jobs by opening markets, strengthening U.S. innovation and technology leadership, raising global standards to U.S. levels and putting in place best-in-class trade rules,” said NAM President and CEO Jay Timmons in a letter sent on Tuesday to Secretary of State Antony Blinken, Secretary of Commerce Gina Raimondo, U.S. Trade Representative Katherine Tai and National Security Adviser Jake Sullivan.

Key inclusions: The NAM is urging the administration to include several major elements in its new framework. These include but are not limited to:

• Prioritizing efforts to eliminate trade barriers in the region that hamper U.S. competitiveness;
• Instituting strong intellectual property rules that set high standards for IP protection and strengthen innovation;
• Securing regional or bilateral digital trade commitments; and
• Strengthening collaboration on standards, regulatory and conformity assessment with countries in the Indo-Pacific region.

The last word: “This approach is necessary so that manufacturers in the United States do not fall behind our competitors in the Indo-Pacific, such as China, that are actively negotiating and implementing new trade agreements to lock in opportunities for their manufacturers, not ours,” said Timmons.