Regulatory and Legal Reform

Washington, D.C. – Following the U.S. Supreme Court’s decision in Sackett vs. Environmental Protection Agency, National Association of Manufacturers Vice President of Energy and Resources Policy Brandon Farris released the following statement:

“The Supreme Court’s decision today will help put us on a path to regulatory certainty for manufacturers across the country as all the justices agreed that the EPA had overstepped its authority under the Clean Water Act. Manufacturers are committed to keeping our waters clean and demonstrating environmental stewardship, but Clean Water Act enforcement has been rife with ambiguities and inconsistencies, often allowing the EPA to overreach and attempt to regulate water—and even dry land—that is far beyond the scope of the law. This case demonstrates yet again why manufacturers and our economy need a sensible Waters of the United States proposal that provides clarity and certainty and allows the industry to continue leading the way on environmental protection. The EPA should heed the court’s ruling and revise its latest WOTUS proposal.”

Background:

Previously, the NAM submitted multiple sets of comments regarding the 2015 WOTUS rule to better inform policymakers. In addition, the NAM supported the 2017 executive order instructing the EPA to rescind the rule, and the NAM Legal Center had been in active litigation against the rule starting in 2015. The legal battle included a unanimous victory for the NAM at the U.S. Supreme Court on a key procedural issue, and in 2019, federal judges invalidated the rule.

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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 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 55% 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. – Today, the National Association of Manufacturers filed a motion to intervene in National Center for Public Policy Research v. SEC, a case about the Securities and Exchange Commission’s authority to dictate the content of public company proxy ballots and the topics on which shareholders are required to cast votes. If granted intervenor status, the NAM will argue that the SEC’s rules requiring companies to include activist proposals on the proxy ballot violate federal securities law and the First Amendment. Following the filing of the motion to intervene, NAM Chief Legal Officer Linda Kelly released the following statement:

“Manufacturers are facing an onslaught of activists seeking to hijack the proxy ballot to advance narrow political agendas, and the SEC has become a willing partner in the effort. The corporate proxy ballot is not the appropriate venue for policy decisions better made by America’s elected representatives, and manufacturers are regularly caught in the middle as activists on the left and the right bring fights from the political arena into the boardroom. The NAM Legal Center is standing up for manufacturers to ensure they can focus on growing their businesses, driving economic expansion and job creation and creating value for shareholders.”

Background:

• Under SEC Rule 14a-8, public companies are required to include most shareholder proposals on their proxy ballot—proposals that in recent years have skewed increasingly toward social or political topics unrelated from a company’s business and its long-term value.
• The SEC evaluates company requests to exclude certain proposals from the ballot and increasingly requires companies to include and take a position on these proposals. For example, the NAM strongly opposed recent SEC guidance preventing companies from excluding proposals on environmental, social and governance topics of “broad societal impact”—irrespective of whether the proposal has any connection to the company’s operations.
• As intervenor in National Center for Public Policy Research v. SEC, the NAM would argue that the SEC cannot compel corporate speech, in violation of the First Amendment and federal securities laws, by forcing companies to include activist proposals on their proxy ballots.

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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 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 55% 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.

Streamlining the nation’s permitting process, filling open manufacturing positions and reforming the U.S. immigration system—these are just a few of the actions the U.S. must take improve American lives and to bolster the economy, NAM President and CEO Jay Timmons said Tuesday.

America still works: Timmons was one of three panelists at “Building the Workforce of Tomorrow Today,” an event hosted by United For Infrastructure, a program of Accelerator for America Action. He told audience members that manufacturers have before them “a great opportunity.”

• “What really excites me the most is, when you look at [the] CHIPS and Science [Act], when you look at [the] Infrastructure Investment [and Jobs Act] and when you look at—hopefully—permitting reform, what you see is, America still works,” he said.
• “We have this moment in time where I think we have to prove again to the world that America is a beacon, it is a democracy that provides opportunities for everyone and allows individuals to succeed and to rise on that ladder of success. …. For manufacturers, this is a great opportunity.”

Workforce challenge: Timmons discussed the primary workforce challenge before the sector—a projected growth of unfilled jobs—and how the NAM is aiming to overcome it.

• “We have about 800,000 open jobs in the sector today and … we have to hire 4 million people before 2030,” he said, referring to the findings from a joint study by the NAM’s 501 workforce development and education affiliate, the Manufacturing Institute, and Deloitte.
• The NAM and MI are seeking to fill those jobs through the work of several initiatives, Timmons continued. These include perception-changing programs such as Creators Wanted, the Toyota-founded Federation for Advanced Manufacturing Education program (now operated by the MI), Women Make America and the promotion of second chance hiring (employment of individuals with previous, non-violent involvement in the criminal-justice system).

Education: The importance of reaching the next generation of manufacturers early cannot be overstated, Timmons told the audience.

• He talked about the high-tech donations—robotics, CNC machines and more—by manufacturers to schools such as Rankin Technical College in St. Louis, Missouri, and Palatine High School in Palatine, Illinois. This machinery is used in programs that aim to interest students in manufacturing careers.
• “I think we have obligation to” make this sort of investment, Timmons said. “I’m very proud of our manufacturers for stepping up to it.”

Immigration: Perhaps the most pressing issue before the U.S., however, is immigration, Timmons told the audience.

• “Today, more so than ever before, we have an economic reality that we have to address,” said Timmons, who referenced the NAM’s policy blueprint on immigration reform, “A Way Forward,” during his talk.
• “We have what, 13 million undocumented folks in this country? … We need to hold our officials accountable for coming up with a plan that is workable and humane and will actually help the economy.”

Washington, D.C. – Following the release of the Environmental Protection Agency’s new rule on power plant emissions, National Association of Manufacturers Vice President of Energy and Resources Policy Brandon Farris released the following statement:

“Manufacturing in America is cleaner and more sustainable than ever, and the power generation sector has been making historic strides in bringing zero-emissions sources online. Even as that trend continues, this proposed regulation will prove unfeasible. With nearly 60% of our nation’s energy generated from natural gas and coal, this will either require deployment of still nascent technologies at an impractical pace or force those plants to shut down entirely. With the many threats to global energy security, that is a grave risk to our economy and to our families. The U.S. cannot afford to shut down more than half of our power generation and grind our economy to a halt. The NAM looks forward to working with the administration to ensure emissions standards protect public health while allowing manufacturers to continue pioneering technologies to make our air even cleaner and our climate even healthier.”

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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 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 55% 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. –  A new report conducted by Oxford Economics and commissioned by the National Association of Manufacturers warns that the Environmental Protection Agency’s proposed air quality regulations for particulate matter (PM2.5) are projected to threaten $162.4 billion to $197.4 billion of economic activity and put 852,100 to 973,900 current jobs at risk, both directly from manufacturing and indirectly from supply chain spending. In addition, growth in restricted areas may be constrained, limiting investment and expansion over the coming years. Due to these limited opportunities for expansion or investment, these areas in nonattainment could lose out on an additional $138.4 billion in output and 501,000 jobs through 2027.

Overall, the regulations could make it extraordinarily difficult to create new manufacturing jobs and protect existing manufacturing jobs in areas out of attainment. The regulations could also prevent much needed infrastructure improvements in these areas. This is because compliance with the regulations could require restricting manufacturing operations, resulting in fewer jobs, less investment and higher costs for consumers and families.

“Improving air quality in the U.S. is a top priority for manufacturers, and we’ve worked for years to make progress in delivering some of the cleanest manufacturing processes in the world,” said NAM President and CEO Jay Timmons. “This analysis makes clear these new regulations will weaken our ability to invest in the technology and processes that would continue to reduce emissions—while jeopardizing high-paying manufacturing jobs. We need to let manufacturers do what they do best: innovate and deploy modern technologies to protect the environment, while creating jobs and strengthening the economy.”

Key Findings:

• The regulations create a total economic exposure of $87.4 billion for manufacturing economic activity, equal to 2.4% of the U.S. manufacturing sector’s gross value added.
• The number of manufacturing jobs associated with this exposed activity is 311,600, or 1.9% of all U.S. manufacturing employment.
• Manufacturing in the U.S. exposed to the proposed standard supports between $75 billion and $110 billion in GDP and between 540,500 and 662,300 jobs in the U.S. through supply chain spending.
• Due to limits on expansion and investment, the proposed rule would put at risk approximately $138.4 billion of gross value added (in 2021 prices) and 501,000 jobs in 2027 in areas of nonattainment.
• Under the proposed rule, 200 counties could be placed out of attainment.
• California’s manufacturing sector will be most exposed, followed by Michigan and Illinois.
• Manufacturing operations in the U.S. are environmentally cleaner than the global average.

Find the latest information on the NAM’s efforts to oppose top-down air regulations, including statements from manufacturing leaders, here.

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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 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 55% 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. – Following the Securities and Exchange Commission’s decision to finalize its costly and unnecessary stock buybacks rule, National Association of Manufacturers Managing Vice President of Tax and Domestic Economic Policy Chris Netram released the following statement:

“The NAM is disappointed that the SEC has chosen to unjustifiably punish manufacturers for returning capital to their shareholders. Manufacturers, investors, retirement plans and the entire economy benefit when companies can efficiently allocate capital via share repurchases. The NAM was successful in convincing the SEC to abandon the most damaging aspect of its initial proposal, but the commission’s attempt to discourage these commonplace, commonsense transactions via an overly complicated, expensive and unworkable disclosure mandate is nevertheless a departure from its mission to enhance capital formation and protect investors.”

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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 13 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% 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 announced Brandon Farris as its new vice president of energy and resources policy.

“Brandon joins the NAM at a pivotal time in our country and for our industry,” said NAM President and CEO Jay Timmons. “Manufacturers across the United States face regulatory challenges that affect their ability to do what they do best: transform and deploy modern technologies to protect the environment, while creating jobs and strengthening the economy. Commonsense regulatory and permitting reform, along with energy security, are needed now more than ever. Brandon’s experience and expertise will help manufacturers accomplish these critical goals.”

Before joining the NAM, Farris was the head of federal government relations for The Chemours Company, where he played an integral role in securing passage of the AIM Act, designed to phase out refrigerants that contribute to climate change. He worked closely with the NAM to help secure bipartisan ratification of the Kigali Amendment to the Montreal Protocol during the 117th Congress. Along with these and other major legislative accomplishments, he was honored as a 2022 top lobbyist by the National Institute for Lobbying & Ethics.

Previously, Farris served as assistant general counsel for Arkema as well as senior counsel for government relations for the Saudi Basic Industries Corporation. After serving in the Marine Corps Reserve, he began his career in Washington as a Bryce Harlow Foundation Fellow at the George Washington University School of Law while working on the U.S. House Agriculture Committee.

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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 13 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% 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, DC – In advance of today’s scheduled vote in the U.S. House of Representatives on H.R. 1, the Lower Energy Costs Act, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“America’s economy, our institutions and our values are being challenged by threats from around the world, which means now is the time to strengthen our energy security and expand domestic manufacturing—both to reduce our dependence on bad actors and to ensure we can support our allies. This bipartisan action to modernize permitting reform would help us achieve these goals by speeding up critical energy, infrastructure and manufacturing investments while we continue our commitment to environmental stewardship,” said Timmons. “I am in Europe right now, witnessing firsthand the consequences of being overly reliant on a country like Russia for energy. In the 21st century, there’s no excuse for letting job-creating projects languish for years to get bureaucratic approval. The Lower Energy Costs Act will bolster manufacturers’ competitiveness in America while also bringing relief to American families and businesses. We thank Speaker McCarthy, Majority Leader Scalise and Majority Whip Emmer for designating this bill as their top priority and for their focus on ensuring our industry can continue providing the leadership our country and our world need.”

Background: In the NAM’s latest Manufacturers’ Outlook Survey, more than 74% of respondents said that permitting reform—which would simplify and speed up the approval process for new projects—would be helpful to their manufacturing company, allowing them to hire more workers, expand their business or increase wages and benefits.

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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 13 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% 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

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

A draft rule to force federal contractors to make specific and detailed climate disclosures is burdensome, unrealistic and costly to manufacturers. It should be rescinded completely, the NAM told the Federal Acquisition Regulatory Council this week. 

The background: In November, the FAR Council—which is composed of the Defense Department, the General Services Administration and NASA—proposed a rule to require climate disclosures from federal contractors, many of whom are manufacturers. The proposed rule would require contractors with more than $50 million in annual federal contract obligations to:

• Disclose their greenhouse gas emissions, including so-called Scope 3 emissions (those attributable to the suppliers and customers throughout a company’s value chain);
• Set targets to reduce their greenhouse gas emissions within a decade (including Scope 3 emissions) based on standards set forth by a third-party nonprofit organization, the Science-Based Targets initiative, and get the targets validated by SBTi; and
• Disclose their climate-related financial risks pursuant to a framework written by a second nonprofit group, the Task Force on Climate-Related Financial Disclosures, and submit those risk disclosures to yet another nonprofit (CDP, formerly the Carbon Disclosure Project).

Why it’s a problem: Compliance with the proposed rule would be difficult, if not wholly unfeasible, prohibitively expensive and time-consuming, NAM Managing Vice President of Tax and Domestic Economic Policy Chris Netram told the FAR Council. It would also impact small businesses within federal contractors’ supply chains given the rule’s focus on Scope 3 disclosures and target setting.

• “The proposed rule would impose significant costs on manufacturers as they work to meet the complex—and in many cases impractical or impossible—requirements of the rule,” Netram said.
• “As a result, manufacturers providing critical goods and services to the federal government, as well as the businesses throughout their supply chains, will be directly and adversely impacted … The national security of the United States could likewise be harmed, as critical contractors could be disqualified from supplying the military, and the required disclosures could expose sensitive information to America’s adversaries.”

 What can be done: The FAR Council should rescind the proposed rule in its entirety, Netram said, but if it is intent on making changes, “it must re-propose a rule with substantial revisions to make its requirements more cost-effective and workable for federal contractors and more narrowly tailored to the actual climate-related risks to which the federal government is exposed.”