Labor & Employment

A continuous regulatory onslaught is hamstringing the permitting process for U.S. energy and infrastructure projects—and thus reducing manufacturing competitiveness and harming the U.S. economy, NAM Vice President of Energy & Resources Policy Brandon Farris told Congress on Tuesday. 

What’s going on: By consolidating and cleaning up our infrastructure permitting regulations, the U.S. can advance multiple top policy priorities, Farris said at “The Next Fifty Years of the Clean Water Act: Examining the Law and Infrastructure Project Completion,” a hearing of the House Committee on Transportation & Infrastructure’s Subcommittee on Water Resources and Environment.

• “Streamlining and modernizing our nation’s permitting laws and procedures will help us advance many of our nation’s shared priorities, improving the quality of life for all communities; modernizing our infrastructure; achieving energy security; ramping up critical mineral production; enhancing manufacturing competitiveness and creating manufacturing jobs in the U.S.,” Farris said. “These are goals that all Americans can support.”

Why the wait? Current wait times for the approval of critical manufacturing facilities, roads, bridges and more are needlessly lengthy, and they’re forcing business overseas, Farris continued.

• “Why should we settle for a permitting process that can take 10 or 15 years to approve essential projects?” he asked, adding that in Australia, a country with similar environmental protections, approvals take about two to three years.
• One manufacturer of critical raw materials for semiconductors recently told the NAM that “because of the regulatory uncertainty in obtaining a Clean Water Act section 402 permit in a timely manner . . . they are going to build a facility in the E.U.” instead of the U.S.

Steps to success: Manufacturers are urging legislators to take several actions to rectify the broken system. These are:

• Consolidate permitting processes—with enforceable deadlines—for the siting of new energy projects and their infrastructure;
• Speed up the approval process for transportation-infrastructure projects;
• Commit to developing our resources to strengthen U.S. supply chains for the critical minerals vital to national security;
• Ensure that the Biden administration follows congressional intent on all streamlining efforts, including the One Federal Decision, a Transportation Department approach that seeks to expedite certain federal environmental reviews.

The last word: “Permitting reform will help us achieve more—more manufacturing, more domestic energy production, more inputs and raw materials and more jobs,” Farris concluded. “And our country and the world will be better off if we and our allies do not depend on our authoritarian rivals for energy and other natural resources.” 

“It is up to us to shape our future,” Rose Lee advises women in manufacturing.

Women should “take the opportunity to lead and do it in your own way with the outcomes you know you’ll be able to produce so others will see you as an example of diversity,” continued the President and CEO of North Carolina–based Cornerstone Building Brands and member of the NAM Executive Committee. “There is not just one way of doing it, even in the manufacturing environment.”

This year, Lee is serving as chair of the Manufacturing Institute’s Women MAKE Awards, which will honor more than 100 outstanding women working in the industry. We spoke to Lee ahead of the awards ceremony, and here’s what she had to say.

Finding your passion: Lee describes herself as someone who derives a lot of satisfaction from the work she does—and wants to ensure others can do the same.

• “In our company, we are part of creating things that are part of the most important things in your life: your home, your shelter,” said Lee, who holds degrees in aeronautical and mechanical engineering as well as an M.B.A. “I find that very meaningful.”
• But her focus extends beyond the tangible, too. “There’s the content of what is done, but then there’s the opportunity that can be created for others … [which] increases the probability that they can find passion and enjoyment … like I had the opportunity to do.”

Increasing diversity: When it comes to diversifying the job pipeline in manufacturing, candidates themselves can often play a bigger role in their own success than they may realize, Lee said.

• “It starts with awareness that there are these opportunities. Then, [candidates should seek] the training, exposure and knowledge that are critical for these roles.”
• Meanwhile, “those of us who have the opportunity [must] make our voices louder,” she added. “Reach out to help people understand more clearly what is required and how you can advance yourself.”
• “We should all think about what more we can do ourselves and what more we can do together to welcome more women into manufacturing.” she continued.

Workplace flexibility: The same goes for manufacturers seeking to increase the number of women in their workforce, Lee added.

• “There is no magic solution,” Lee said. “But it’s important for companies and organizations to have a supportive structure, whether by providing [varied] job content, time off or additional flexibility in the work environment that [allows women to] balance things better.”
• “Supporting great initiatives that prioritize recognition, mentoring, education, skills training and networking are powerful ways to build a much stronger pipeline of women in manufacturing.”

Letting it go: Lee also knows a lot about having a rewarding career in manufacturing while being a caregiver at home—because she’s learned it firsthand.

• “Just remember that you can’t be everything to everybody all the time,” said Lee, a mother of two daughters. “It’s OK; let it go. Your kid doesn’t have to look like they’re in their Sunday best all the time.”
• Nor does the parenting style or career path that works for someone else have to work for you, she added. “You’ve got to design [being a working parent] so it’s bespoke to your life.”

Making history: Last year, when Honeywell International added her to its board of directors, Lee became the first Korean American woman to sit on the board of a Fortune 100 company. She regards the position as an opportunity to accomplish even more.

• “The building materials space doesn’t live in isolation,” Lee said. “Having a connection to a broader space, under global dynamics, helps [create] connectivity. We are continually deepening our knowledge.”

The NAM is opposing the reintroduction of legislation that would institute “card check” and other labor policies harmful to manufacturers.

What’s going on: A coalition of nearly 100 organizations including the NAM urged Congress last week to reject the Protecting the Right to Organize Act, introduced in the House in February by Rep. Robert C. Scott (D-VA).

• “This bill would limit workers’ right to secret ballot elections, trample free speech and debate, jeopardize industrial stability, threaten vital supply chains, limit opportunities for small businesses and entrepreneurs, cost millions of American jobs and greatly hinder the economy,” they told Congress.

What’s in it: This legislation would significantly worsen—not improve—conditions for employees, the coalition argued. It would:

• Limit workers’ free speech and remove the right to vote via secret ballots.
• Hand confidential worker information over to unions without employee consent.
• Allow unions to choose bargaining units that maximize their chances of winning elections.
• Eliminate right-to-work laws.
• Allow intermittent strikes and remove bans on unions boycotting companies that do business with those engaged in an active labor dispute.

The cost: “The economic impact of the PRO Act would be catastrophic,” the coalition continued, citing one study which “found that the bill’s independent worker reclassification provision alone could cost as much as $57 billion nationwide, while the joint-employer changes would cost franchises up to $33.3 billion a year, lead to over 350,000 job losses, and increase lawsuits by 93%.”

In the spotlight: Many provisions of the PRO Act were raised during a hearing Wednesday of the Senate Health, Education, Labor and Pensions Committee chaired by Sen. Bernie Sanders (I-VT)—demonstrating that this issue and this legislation will remain a top priority for him and others in the Senate.

Leslie Cantu has an unusual but effective method of stress reduction: cuddling with bovines.

“You can’t stay stressed or frustrated when you have a cow licking you on the cheek,” laughed Toyotetsu’s assistant vice president of administration.

Ranch life: Living on a ranch south of San Antonio, Texas, with 13 dogs, 15 cats, five miniature horses, multiple sheep and three newborn lambs might sound to others like a lot of work, but to Cantu, it is indeed a method of decompression.

• “I have five children and two grandbabies, and spending time with them out on the ranch, just being able to take care of the animals and enjoy time with the kids, it’s rewarding, it’s relaxing,” said Cantu.
• Life on the ranch sounds busy, but it’s nothing compared to work life for Cantu, a 2023 Honoree of the Manufacturing Institute’s Women MAKE Awards, which recognize top female talent in the manufacturing industry. She’s involved in a dizzying array of workforce programs both at the company and outside of it.

Finding FAME: Cantu, the first woman to be named an assistant vice president at the global automotive parts manufacturer, spends a lot of time making a difference for the company’s workforce.

• In 2016, her first year on the job, she helped Toyotetsu open the Federation for Advanced Manufacturing Education’s first Texas chapter, TX FAME – Alamo. Today, she serves as the chapter president.
• “Through FAME, we’ve really been able to build that multiskilled-technician pipeline to make sure we can meet those critical skills needed for our business,” Cantu said of the workforce development initiative for high school graduates, which was founded by Toyota and is now operated by the MI (the NAM’s 501(c)3 workforce development and education affiliate).

Seeking diversity: Cantu also helped Toyotetsu form a partnership with the Texas Workforce Commission and the local workforce development board to create a 12-week manufacturing apprenticeship program—the first of its kind in Texas—for individuals with disabilities. The inaugural class graduated in January.

• “It’s programs like this and FAME that help us find unique ways to fill those skills gaps and focus on diversifying the workforce,” she said. “There’s a lot to be said for diversifying the workforce, [including] improved morale and retention.”

A second chance: In 2018, in another bid to deepen Toyotetsu’s talent pool, Cantu spearheaded the launch of a second chance hiring initiative in partnership with the local county’s economic development board. The project now consists of seven manufacturers, all of whom regularly hire formerly incarcerated individuals—with great results.

• “Toyotetsu alone has hired about 140 ex-offenders and had tremendous success with that,” said Cantu.
• “Analyzing our data and metrics, we’ve been able to see that our second chance population has better performance and better retention than those who come to us through traditional recruiting. [Second chance] has effectively become a go-to, best practices strategy for us.”

Playing to strengths: Cantu credits some of her success in strengthening Toyotetsu’s workforce to her natural ability to think creatively.

• “As we continue to work through the national skills-force gap, hiring and COVID-19, it’s become important to think outside the box … to see how we could build our talent pipeline,” Cantu said.
• “That’s one of my strengths, tapping into those resources. Part of that is knowing what resources are out there, and thankfully, I’ve got a great boss and corporate office that support community involvement,” she added.

And if that wasn’t enough … Cantu is the chair of Workforce Solutions Alamo, and she sits on the board of the Texas Workforce Commission’s Adult Education & Literacy Advisory Committee and on the advisory board of a local high school.

The last word: Cantu has some encouraging words for women looking to follow in her (very energetic) footsteps:

• “Oftentimes there’s an image of manufacturing [as being] for men, or [that] it’s dark, it’s dirty, it’s dangerous. And that’s not what manufacturing is. There’s a lot of opportunity to use the skills that women bring to the table: multitasking, transferable skills,” she says.
• “It’s incredibly important that we mentor women thinking about careers in manufacturing, tell our stories and share the journey so that we can encourage others following the same path.”

Fresh off International Women’s Day, which was March 8, there’s some encouraging news on the labor front: more women are coming back to the workforce, both in manufacturing and throughout the economy.

In manufacturing: Female employment in the industry reached its height this year, with a total of 3.77 million workers, according to NAM calculations based on BLS numbers.

• Women now account for 29% of the manufacturing workforce.
• A year ago this week, the Manufacturing Institute, the NAM’s 501(c)3 workforce development and education partner, launched its 35×30 campaign, an initiative that aims to boost women’s share of the manufacturing workforce to 35% by 2030.

The overall economy: “Women have gained more jobs than men for four straight months, including in January’s hiring surge, pushing them to hold more than 49.8% of all nonfarm jobs,” according to The Wall Street Journal (subscription).

• “Female workers last edged higher than men on U.S. payrolls in late 2019, before the pandemic sent nearly 12 million women out of jobs, compared with 10 million men.”

Why it’s happening: The child-care disruptions and health concerns that made many women leave the workforce during the pandemic are diminishing, while employers offer historically high pay and increasing numbers of remote positions.

Why it’s important: More women in the workforce could help ease both worker shortages and inflation.

• With January unemployment reaching a 53-year low, “[a] greater supply of labor could work to counter rising wages and align with the Federal Reserve’s goal of cooling inflation,” according to the Journal.
• More job seekers could also help U.S. manufacturers, whose job openings edged up to 803,0000 in January.

The last word: “In just a year, the 35×30 campaign has made great strides in increasing the number of women in manufacturing—and the latest data show as much,” said MI President Carolyn Lee. “We’re close to our goal. Together, we can get the rest of the way there and make it to 35% by 2030.”

Manufacturing has a leading role in the U.S. economy—but there is still a great deal more to do. That was the message at this year’s NAM State of Manufacturing Address from NAM President and CEO Jay Timmons.

Timmons spoke to a gathering of manufacturing team members and the media at Husco in Waukesha, Wisconsin. In his remarks, he laid out the NAM’s view of where the industry is and where it’s going.

The program: The event began with a message from Kurt Bauer, president and CEO of Wisconsin Manufacturers & Commerce, followed by an introduction from NAM board member Austin Ramirez, president and CEO of global engineering and manufacturing company Husco.

• “Wisconsin manufacturers contribute to the vitality of our state through their innovation, productivity and commitment to customer satisfaction,” said Bauer. “While we face many challenges, we are also in the enviable position of controlling our destiny—as long as we work together to create a shared vision of prosperity and an action plan to achieve it.”
• “We are here to shine a light on the amazing, life-changing work that manufacturers do every day,” said Ramirez. “We are the backbone of the American economy, and we are proud of it.”

The state of manufacturing: Timmons spoke about Russia’s invasion of Ukraine, the importance of the manufacturing industry’s support for the Ukrainian people and the larger struggle between freedom and tyranny.

• “Despite everything happening around us, like the threat of a recession and global conflict, manufacturers are still leading the way forward,” said Timmons.
• “And although our industry and our country will need to make audacious and sometimes uncomfortable changes to adapt to economic, political and global challenges … I’m confident in reporting that the state of manufacturing in America remains steadfast and resolute.”

Manufacturing solutions: Timmons cited a variety of manufacturing challenges, then detailed the NAM’s plans to fight for manufacturers across the United States.

• Supporting immigration: “For so many manufacturers in America right now, there are more open jobs than there are people to fill them,” said Timmons. “One of the many ways we fill those jobs and keep our economy moving is welcoming immigrants into our workforce … just like we have in the past to build a stronger, more prosperous America.”

• Promoting permitting reform: “Permitting reform means making it easier to get permission to build that new road or power plant, or for manufacturers to build new facilities,” said Timmons. “If Washington could just cut through the bureaucracy and streamline processes, like you do in your businesses every single day, we could do more for this country.”

• Fighting for tax fixes: “The NAM is determined to get Congress to restore incentives for R&D and get our business tax rates and structure back on track to enable us to compete globally,” he said. “And then, let’s lock in competitive rates for small businesses … so that you can plan confidently for the future.”

• Competing with China: “If we’re going to counter China, then we must hold China accountable for the trade commitments it has already made to the U.S.,” said Timmons. “And we have to forge ambitious, cutting-edge trade agreements with our allies. Other countries aren’t waiting around. So, let’s think big. And let’s be bold.”

• Pushing back on new EPA rules: “We’re going to tell the EPA that manufacturers are already leading [in cleaning] our air,” said Timmons. “The government shouldn’t enact rules that, however well-intentioned, would make it more difficult to achieve our environmental goals, slow our economic growth and push us closer toward recession.”

The last word: “History shows us that as long as manufacturers lead the way, America and our democracy will remain that beacon of freedom and hope for people around the world,” said Timmons. “Manufacturers have been, and always will be, in word and deed, the arsenal of democracy. And working together, I know we will keep making this a manufacturing decade.”

Presented by Jay Timmons, President and CEO of the National Association of Manufacturers, the 2023 State of Manufacturing Address was given from Husco International in Waukesha, Wisconsin. Special remarks were given by Kurt Bauer, President and CEO, Wisconsin Manufacturers & Commerce. Special thanks to Husco President and CEO Austin Ramirez and his team for hosting this year’s address.

Read the official remarks here.

We’re hitting the road. This year’s NAM State of Manufacturing Address officially kicked off the 2023 leg of the NAM’s Competing to Win Tour. The tour will continue to spotlight the industry’s rapid transformation, while also focusing on manufacturing’s well-paying careers, diverse workforce and real-world solutions for the industry’s continued growth.

Upcoming stops: Waukesha and Pewaukee, Wisconsin (Tue, Feb 21); Fishers, Indiana (Wed, Feb 22); Harahan and Avery Island, Louisiana (Thurs, Feb 23)

VISIT THE COMPETING TO WIN AGENDA

With one-in-four Americans possessing a criminal record, manufacturers who pursue “second chance hiring” are accessing a diverse and motivated talent pool. What do they need to know to begin?

At the Manufacturing Institute’s inaugural Workforce Summit, held in Cincinnati, Ohio, last October, panelists from manufacturers Saint-Gobain and JBM Packaging and from Envoy, a social impact advisory firm specializing in fair chance employment, shared tips on how to create such hiring programs.

Risk assessment: While safety is a concern, panelists emphasized that there is a difference between perceived risk and actual risk.

• “The data shows that second chance individuals are retained longer, have higher productivity and engage in more training than the average individual that you bring in,” said Cassi Zumbiel, managing director at Envoy.
• Saint-Gobain uses “a framework for background checks which we have developed in collaboration with our legal team. Candidates in the second chance hiring programs demonstrate higher level of commitment and a proactive approach to job searching, setting themselves up for success in future roles. We like to collaborate with our community partners in order to provide a good candidate experience and a seamless recruiting process,” explained Magda Dexter, senior vice president of communications and human resources at Saint-Gobain.
• For JBM Packaging, it’s about having honest and transparent conversations with candidates about their backgrounds. JBM also works with case managers to get referrals and assess candidates’ fit with the company.

How to get started: Dexter recommended that companies start with a pilot program, then scale it up, noting that it’s important to select a site that has the right culture, an engaged plant manager and HR support.

• Saint-Gobain has also tried out a variety of different support systems across their company, including hiring a part-time social worker as well as instituting a buddy system and a mentoring program.
• Zumbiel encouraged companies to do background checks only after a conditional offer has been made, recommending that companies should limit the look-back period to three to seven years. “That helps eliminate some of that bias and makes you really look at the candidate holistically.”
• Panelists also noted that it was important to review job descriptions to make sure they specify that second chance candidates are welcome.

From jobs to careers: Ninety percent of JBM’s second chance hires are entry-level production workers; the other 10% have mechanical or machinist skills and fill entry-level technical roles. However, Valerie Plis, director of human capital and culture at JBM, realized there was a lot of experience that the company wasn’t tapping into.

• Plis shared a story of a second chance hire who started as a machine operator. As Plis got to know her, she realized that the new hire had a background in training. The new hire progressed from an operator trainer to a lead trainer, then joined the HR team. In addition to leading training across the company, she now helms the second chance recruiting initiative, coming back full circle.
• Plis added, “At JBM, we started working on putting together some very defined career paths. It’s changed the way we conduct our performance reviews, so now we’re focused on growth and development.”

Succeed by partnering: While second chance hires come with a lot of benefits, there are also some challenges that are unique to this population. Partnering with community organizations can help, the panelists said.

• For Dexter, it’s about figuring out what the company will offer and what the community partners will offer. “We will support with on-the-job training. We will support with [providing] structure at work. We will rely on [our community partners] for job readiness and life skills training.”
• Zumbiel noted that “the community partner can advocate for the employer about the great opportunities and the benefits of working in manufacturing” and also prepare candidates to ace their interviews.

 The last word: “A lot of the things we implemented, we thought we were doing just for our second chance population, but they actually ended up becoming a huge benefit for our entire workforce,” Plis said.

NAM President and CEO Jay Timmons joined CBS Mornings today to discuss manufacturing’s number one challenge: finding enough skilled workers to fill available jobs.

With 200,000 people transitioning out of the military annually, in addition to veterans, reservists and military spouses, the military population represents a highly skilled talent pool that manufacturers are eager to tap. But how should they go about doing so?

At a recent roundtable, the Manufacturing Institute—the NAM’s 501(c)3 workforce development and education partner—brought together veterans who have transitioned successfully out of the military into manufacturing careers, as well as manufacturers who have prioritized attracting and retaining military talent. The panelists discussed how companies can leverage this talent, and here’s some of what they had to say.

A great fit: “If you look at manufacturing, a large part of the job is doing things well, day after day after day—and that’s essentially what happens in the military. It’s that military discipline. It’s one of the most compelling reasons why we should be aggressively hiring military veterans,” said Dow Global Business Director Greg Bunker.

• “We’ve got three principles in our organization that we call ROI: responsibility, operational excellence and innovation. We know that veterans bring each of these to the table,” said UnitedHealth Group Director of People Analytics Troy Vandenberg (formerly director of people analytics at Smithfield Foods).

Networking matters: Transitioning from the military to the civilian workforce can be difficult, but veterans who make direct connections with manufacturers often land excellent job offers. The MI’s Heroes MAKE America program facilitates those connections, offering veterans opportunities to meet manufacturers as well as support in the job search process.

• Nicole Rena, an Army veteran and now a shift operations manager at Smithfield Foods, applied to five jobs at Smithfield and didn’t hear back on any of them. But then the program manager at HMA contacted Smithfield’s talent acquisition department to ask if they could speak with Rena about why she wasn’t chosen, so she could be more successful moving forward.
• As Rena put it, “The first 15 minutes of the call was about what I could do better on my resume, but after talking about my background and what I was looking for, the talent acquisition lead said he was going to count this as my first interview.”
• She landed the job! In her 18 months at Smithfield, Rena has been promoted twice.

Language can be a barrier: Rena’s experience speaks to one of the disconnects identified by veterans and manufacturers alike—the language used in job descriptions and resumes. Veterans often do not know how to best describe their skills and experiences in a way that civilian employers can understand.

• To avoid missing out on great talent, the panelists advised, manufacturers should ensure that a leader with a military background is involved in the hiring process, to translate military lingo and skills into more familiar manufacturing terms.
• Manufacturers should also specify in their job descriptions whether they will accept military experience as equivalent to an associate’s or bachelor’s degree, Bunker advised.

Support is crucial: Once veterans have been hired, the company must ensure they are set up for success. “Transitioning is a really scary process for veterans. It’s very stressful. The support that a company can provide is huge,” said Meg Zehringer, a Coast Guard veteran and a corporate environmental engineer at National Gypsum.

• Employee resource groups are a great way to provide support to veterans while also serving as a platform to advocate for population-specific needs, the panelists agreed.
• To be most effective, ERGs should be run by employees, not human resources departments, noted Vandenberg. Bunker added that establishing connections between the ERG and company leaders is also key.

The last word: “Equally as important as the wording of your job descriptions and preferred skills is creating a culture that invites a diverse group of people. That’s going to play a huge factor in attracting veterans,” said Zehringer.

Get involved: If you are interested in learning more about HMA, its next Heroes Connect event will be a networking opportunity with Johnson & Johnson on Wednesday, Jan. 25.

• You can also tune in to (or share with interested veterans) this Veterans Learning Series workshop on how to use LinkedIn effectively, coming up on Thursday, Jan. 26.
• And last, HMA will be hosting a virtual hiring fair in late February. Keep an eye on the MI website for updates!