Policy and Legal

Why the Ex-Im Bank is Critical for Manufacturers

The Ex-Im Bank helps U.S. manufacturers compete for deals around the world.

cargo unloaded at port of Los Angeles

In May, the U.S. Senate voted to confirm President Donald Trump’s nominees to the Export-Import Bank board. The board now has a quorum for the first time in four years, allowing it once again to consider deals larger than $10 million. Manufacturers’ attention now turns to securing congressional reauthorization of the Ex-Im Bank.

NAM President and CEO Jay Timmons explains what’s at stake.

The NAM is leading the fight for Ex-Im Bank reauthorization. Start with the basics. What does that mean?

Later this year, Congress will have to vote on whether to keep the Ex-Im Bank open and authorize it to continue helping manufacturers in the United States compete for deals around the world.

Why does the Ex-Im Bank matter so much to manufacturers?

It’s a vital tool to support manufacturing jobs in the United States. The Ex-Im Bank has supported 2.5 million jobs since 2000. Typically, more than 90 percent of the Ex-Im Bank’s transactions directly support small businesses.

And here’s something that’s really impressive — the Ex-Im Bank has generated $9.6 billion for taxpayers since 1992. It’s a government agency that makes money!

Other countries are running nearly 100 other export credit agencies. So, if we don’t have the Ex-Im Bank, we are at a big disadvantage.

You mention “export credit agencies.” You mean other countries have their own versions of the Ex-Im Bank?

Exactly. And they use those agencies to lure manufacturers to their countries, support their own manufacturers and steal manufacturing jobs away from the United States. That’s not going to change. So, we can “disarm” ourselves here in the United States and let other countries like China have the advantage. Or we can support the Ex-Im Bank.

So this all comes back to China?

Definitely. It helps level the playing field for manufacturers in the United States to compete with China, as well as other countries.

Two of China’s export credit agencies provided $45 billion in medium- and long-term investment support for projects around the world, more than the rest of the world combined. That’s what we have to compete against.

What can manufacturing workers or manufacturing supporters do to make a difference?

Contact your senators and representatives. Tell them to support the Ex-Im Bank and reauthorize it. Let them know that supporting the Ex-Im Bank is supporting American manufacturing workers.

Business Operations

PepsiCo Invests in School Recycling Programs

Participating schools have collected more than 320 million plastic bottles and aluminum cans.

Children at a school hold up "Please Recycle" t-shirts at a PepsiCo Recycle Rally event.

With more than 100,000 employees in the U.S., PepsiCo makes an impact through sustainability initiatives that reach far beyond the brand’s products. Through its Recycle Rally program, PepsiCo offers more than 250 free online resources to students, faculty and school staff members across the country with the goal of increasing recycling rates at schools. Via those resources, Recycle Rally helps schools set recycling goals, track progress toward those goals, earn rewards and compete in contests for cash prizes.

Nearly 6,000 schools have participated in Recycle Rally over the past nine years, collecting more than 320 million plastic bottles and aluminum cans. In 2018, PepsiCo began open-sourcing all of their Recycle Rally resources to the general public which has enabled local communities to take advantage of the Recycle Rally tools, including how to start a green team and host a recycling collection drive. And by encouraging recycling, parents of children in the Recycle Rally program reported not only bringing their containers to the school drop off-site, but also increasing recycling of other materials in their homes.

PepsiCo hasn’t stopped there. In 2018, PepsiCo made a $10 million investment in The Recycling Partnership (TRP) to launch “All In On Recycling,” an industry-wide challenge to raise $25 million to improve recycling for 25 million families. By providing curbside carts to single-family homes, creating infrastructure to collect recyclables from multi-family housing and offering recycling education and operations, PepsiCo’s investment helps to simplify recycling and create stronger, cleaner communities. In Iowa City, for example, PepsiCo’s TRP investment will support the delivery of recycling carts to every household served by their recycling program—expanding curbside recycling to 16,000 households—along with a customized public education campaign designed to help residents recycle better.

“Recycling is an essential part of PepsiCo’s long-term approach to sustainable packaging for our food and beverage products,” said David Lapp, PepsiCo Beverages North America chief supply chain officer. “We work to support recycling wherever we do business, and as a U.S.-based company with significant operations, sales and local presence in cities and towns across the country, we have a special responsibility to do our part for U.S. recycling.”

As part of PepsiCo’s sustainability agenda, the company aims to build a world where plastics never need to become waste. In less than a decade, PepsiCo’s recycling efforts—through partnerships, pilots, large-scale programs and packaging innovation—have helped recycle more than 425 million bottles and cans.

“Sustainability is a real priority for the manufacturing industry as a whole,” said Laura Berkey-Ames, the National Association of Manufacturers’ director of energy and resources policy. “Companies like PepsiCo are doing outstanding work and making critical progress that should serve as an example for other industries looking to be proactive on the issue.”

Policy and Legal

Latest Move on Tariffs a ‘Molotov Cocktail’ of Policy

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National Association of Manufacturers President and CEO Jay Timmons warned today of the grave consequences of the administration’s plan to levy tariffs on Mexico, and ultimately manufacturing workers, to stem migration from Central America.

Saying that intertwining trade, tariffs and immigration creates a Molotov cocktail of policy, Timmons urged Congress and the administration to work together to find a comprehensive legislative solution on immigration, which manufacturers have offered in A Way Forward.

Click here to read Timmons’ full response.

Press Releases

NAM on Announced U.S. Tariffs on Mexico

Timmons: “These Proposed Tariffs Would Have Devastating Consequences on Manufacturers”

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on announced U.S. tariffs on Mexico:

Manufacturers, like so many Americans and like President Trump, are frustrated with our broken immigration system and by the inaction that has led to a true humanitarian crisis. The answer to our broken system is a comprehensive, legislative solution, which manufacturers have offered in ‘A Way Forward.’ We continue to urge the administration and Congress to work together to address this crisis because the problem will not be solved just by blaming other countries. Intertwining difficult trade, tariff and immigration issues creates a Molotov cocktail of policy, and America’s manufacturing workers should not be forced to suffer because of the failure to fix our immigration system.

These proposed tariffs would have devastating consequences on manufacturers in America and on American consumers. We have taken our concerns to the highest levels of the administration and strongly urge them to consider carefully the impact of this action on working families across this country. Manufacturers have been working hard to secure passage of the U.S.–Mexico–Canada Agreement, and the last thing we want to do is put that landmark deal—and the 2 million manufacturing jobs that depend on North American trade—in jeopardy.

We will continue to work with leaders on both sides of the aisle on immigration reform, just as we are working to continue our hard-won progress on the USMCA. We cannot afford to put the livelihoods of millions of Americans at risk at the same time.

-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 $2.38 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters 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 on USMCA Statement of Administrative Action

Timmons: “Manufacturers Are Firmly Behind The USMCA”

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons responded to the Trump Administration submitting the draft Statement of Administrative Action on the USMCA to Congress:

Manufacturers are firmly behind the USMCA, as is a growing chorus of state and local groups. The North American trading relationship is crucial to the success of manufacturing in America and more than 2 million manufacturing jobs. For manufacturers, the modernized agreement includes best-in-class intellectual property rules, sets new standards for innovation and the 21st-century digital economy, eliminates red tape at the border, improves transparency, ensures we can sell products duty free and much more.

After a promising ITC report, the end of North American steel and aluminum tariffs and real progress in Canada and Mexico, we are moving closer to making the USMCA a reality. Manufacturers want to see this momentum continue, including through constructive conversations between USTR and the Hill, so we can get USMCA across the finish line for the men and women who make things in America.

-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 $2.38 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters 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.

News

Bosch Pledges Carbon Neutrality by 2020

Bosch intends to achieve its carbon neutral goal through a four-pronged approach.

Two Bosch manufacturing workers look at a powercell.

Since Bosch first established a presence in North America in 1906, the company has been a manufacturing leader in the United States. With 410,000 employees worldwide—and 35,400 in North America—Bosch is keenly aware of their global impact and responsibility. Today, it’s leading on climate action and setting an aggressive target for a bold new initiative: On May 9, Bosch announced that the company will be carbon neutral by 2020.

“Climate action needs to be seen not just as a long-term aspiration—it needs to happen here and now,” said Dr. Volkmar Denner, chairman of the board of management of Robert Bosch GmbH. “As an innovation leader, we want to deliver technological solutions to ecological problems.”

As one of the largest privately-held companies and automotive suppliers in the world, Bosch is well-positioned to make an impact, both through its actions and as a model to other companies. With 400 locations across the globe, Bosch intends to achieve its carbon neutral goal through a four-pronged approach: increasing energy efficiency, expanding proportion of renewables, buying more green power and offsetting carbon emissions. By reaching this goal, Bosch will prevent 3.3 million tons of carbon emissions by 2020—and will be the first major industrial company to reach the carbon-neutral benchmark.

“Our commitment to reducing carbon emissions and climate action is not guided by short-term financial considerations,” said Prof. Stefan Asenkerschbaumer, CFO and deputy chairman of the Bosch board of management, “but takes a much longer-term view.”

As an engineering company, Bosch sees its work in terms of long-range objectives and seeks to understand how even small changes, taken together, can have a significant effect over time. This focus on long-range planning makes it easier to weather fluctuations in the economy and day-to-day business challenges with an eye on achieving larger objectives.

Bosch’s work uses tools that include low pollutant power train technology and artificial intelligence that predictively controls exhaust gas treatment. While most Americans are aware of Bosch through its leadership in consumer goods—from dishwashers to power tools—the company is also a force in sectors like mobility solutions, building technology and industrial equipment. And it is implementing a sustainable model across the board.

“Companies across the manufacturing sector are taking proactive steps to reduce emissions, improve the environment and address climate change,” said Laura Berkey-Ames, National Association of Manufacturers’ director of energy and resources policy. “Bosch’s work is an exciting part of that effort and will help inspire companies in other industries to do their part.”

Press Releases

NAM Notches Win Against 2015 WOTUS Rule in Federal Court

Ruling Protects Manufacturers’ Right to a Fair and Transparent Rulemaking Process for Major Regulations

Washington, D.C. – National Association of Manufacturers Vice President for Litigation and Deputy General Counsel Peter Tolsdorf released the following statement after the U.S. District Court for the Southern District of Texas ruled that the Environmental Protection Agency’s 2015 Waters of the United States rule violated the Administrative Procedure Act:

For nearly four years, the Manufacturers’ Center for Legal Action has battled the overreaching WOTUS rule in the courts, and manufacturers have claimed another important victory, said Tolsdorf. The court’s ruling protects manufacturers’ right to a fair and transparent rulemaking process for significant environmental rules with multibillion-dollar impacts.

This rule was unreasonable on its face—it was a water regulation that went so far as to attempt to regulate dry land. This made compliance nearly impossible and put manufacturing jobs at serious risk. Manufacturers will continue to fight for fair, clear regulations that empower us to be responsible stewards of the environment while continuing to grow the U.S. economy.

In October, the NAM filed a motion for summary judgment in the U.S. District Court for the Southern District of Texas to invalidate the 2015 WOTUS rule.

Specifically, the court found that the EPA did not provide the public with reasonable notice and an opportunity to comment on the final rule’s definition of jurisdictional “adjacent waters.” The court also concluded that the EPA violated the APA by releasing the technical basis for the proposed rule only after the public notice and comment period had closed.

The NAM’s legal arm, the Manufacturers’ Center for Legal Action, has been in active litigation against the rule since July 2015, helping lead a large coalition of business groups to sue the EPA. Arcane procedural obstacles prevented the courts from hearing the merits of our legal challenge for several years. In early 2018, however, the MCLA scored a significant legal victory before the U.S. Supreme Court, which resolved those issues and has allowed litigation against the substance of the rule to proceed. The MCLA is also challenging the rule in a separate federal court in Georgia and has filed supporting amicus briefs in other legal challenges to the rule. To learn more about the MCLA, 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 $2.38 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters 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.

Policy and Legal

Liquified Natural Gas Boom Impacts U.S. Manufacturers

U.S. Natural Gas Production Continues To Break Records

Cheniere Energy LNG export facility in Corpus Christi

Last month, the European Union announced that U.S. exports of liquified natural gas (LNG) to Europe had increased nearly 300% since 2016. This news came on the heels of a series of executive orders from President Trump designed to speed up energy infrastructure projects that enable manufacturers to carry natural gas to market.

Rachel Jones, the National Association of Manufacturers’ senior director of energy and resources policy, helps us break down what it all means.

Why is the U.S. experiencing a natural gas boom?

North America has more shale gas than any other place in the world. Technology is the other huge driver. The combination of horizontal drilling and hydraulic fracturing technologies is unlocking vast natural gas resources and changing the face of modern manufacturing in America.

This boom is set to keep growing. According to the Energy Information Administration, U.S. shale gas production is projected to more than double again over the next 25 years.

What is “liquified” natural gas (LNG)?

It’s really just natural gas that has been refrigerated until it turns into a liquid. When it comes out of the ground, natural gas is actually very thin and light. To make it easier to move around the world, it is turned into a liquid.

Why are investments in LNG export infrastructure so important for the U.S. manufacturing industry?

LNG terminals are massive infrastructure projects that create tens of thousands of jobs.

Golden Pass is a $10 billion investment in the Gulf Coast that will create jobs across the country for manufacturers who make compressors, heat exchangers, storage tanks, pipes, valves and other components of these state-of-the-art infrastructure projects. Golden Pass alone is projected to create 45,000 direct and indirect jobs during construction, plus several thousand more during operation. Cheniere’s Sabine Pass and Corpus Christi projects together represent an investment of approximately $30 billion in U.S. energy infrastructure. And the Driftwood project is poised to invest another $30 billion, creating nearly 50,000 direct and indirect jobs in at least 18 states.

How do President Trump’s recent executive orders promote LNG infrastructure development?

Manufacturers in the United States are ahead of their global competitors in the race to build the infrastructure needed to export LNG; however, an unnecessarily protracted regulatory process could cause a major disadvantage for these exporters.

In a big win for U.S. manufacturing workers, President Trump signed two long-anticipated executive orders intended to cut red tape and speed up the permitting process for energy infrastructure projects. These orders will promote badly-needed development of infrastructure to meet U.S. energy demand, create and support jobs for U.S. manufacturing workers, and provide reliable and affordable energy to U.S. consumers.

How does natural gas help manufacturers achieve sustainability goals? 

Climate Change is one of the biggest global challenges we face. Manufacturers understand this and are taking real action to protect our environment; natural gas is part of that story.

Modern natural-gas plants that replace aging power plants can mean an 80% reduction in carbon emissions. Further, because solar and wind can produce varying amounts of energy, having natural gas available on demand actually enables us to further invest in renewable resources.

Practical Insights

Future of Manufacturing Depends on Building Workforce

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In many ways, manufacturing has never been doing better. Record numbers of manufacturers are optimistic about the future. Many are growing, investing, and hiring. Yet, this success is also fueling a growing crisis: too many manufacturing jobs and not enough workers to fill them.

Carolyn Lee, executive director of The Manufacturing Institute (MI)—the education and workforce partner of the National Association of Manufacturers—helps explain manufacturing’s “skills gap” workforce crisis and what the MI is doing to help solve it.

Carolyn, just how bad is the problem currently?

There are more than half a million open jobs in manufacturing right now, and based on a study by The Manufacturing Institute and Deloitte, 2.4 million jobs could go unfilled and about $2.5 trillion worth of GDP could be at risk over the next decade if we don’t get this under control soon. So this is a problem for manufacturing, yes, but it’s also a problem for the economy overall.

What’s driving it?

There are three main drivers. Some don’t know these jobs exist, some don’t have the right skills to land them, and some just don’t see the point. That last challenge—the perception challenge—is particularly tricky. Many envision manufacturing jobs the way their grandparents remember them. But that really isn’t how modern manufacturing careers look today.

Well, how do they look?

Modern manufacturing careers are increasingly high-tech, high-skill, and high-pay. The possibilities in manufacturing will become even more exciting as Manufacturing 4.0 technology continues to revolutionize the industry. Tomorrow’s manufacturing jobs will increasingly rely upon irreplaceable human skills—things like creativity, critical thinking, design, innovation, engineering and finance—and, by the way, many of these careers don’t require a four-year degree or the debt that can come with it.

What is the Institute doing to address this challenge?

We have a variety of programs designed to excite, educate and empower the manufacturing workforce of today and tomorrow, with a particular focus in four key areas: women, veterans, youth and lifelong learning. We are empowering women already in the industry and giving them tools to inspire and mentor others (STEP Women’s Initiative), we are connecting transitioning service members and veterans to great careers in manufacturing plus arming them with the exact skills and qualifications needed to excel (Heroes MAKE America), we are helping excite the next generation by encouraging companies and educational institutions across the country to open their doors to the reality of modern manufacturing careers (MFG Day), and we are engaged in a variety of initiatives to help current manufacturing workers access training for newer technology-intensive jobs—among many other programs and initiatives.

What can others do to help be a part of the change the MI is trying to enact?

One thing I’d recommend, and something the Institute is working to facilitate, is for people to educate themselves, their families, and their friends on what jobs in manufacturing truly look like. It’s an exciting time to be a manufacturer and there are lots of great opportunities in the industry, so come join us.

Workforce

STEP Award Winner Leads Teams, Saves Lives

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Elaine Thibodeau accepts award at 2019 STEP Ahead Awards

As the North America Deliver Operations Lead at Johnson & Johnson, Elaine Thibodeau’s work helps ensure quality, continuity, preparedness and resiliency across the supply chain. She also serves as an advocate for women in the manufacturing industry and a voice of encouragement for millions of young women and girls who might enter the industry one day.

“I think we need to keep fighting the myth that a manufacturing career doesn’t marry well with having a family,” Thibodeau said. “We need to find opportunities to bring young women into our factories and give them early, positive experiences with the industry.”

Her 30 years of experience at Johnson & Johnson includes time in orthopedics, diagnostics, pharmaceutical manufacturing and consumer medical devices – roles that have come with all sorts of challenges. Earlier in her career, Thibodeau led a team that was tasked with taking over a third-party plant to continue producing an oncology medication that was on the FDAs drug shortage list. By making a deal with a supplier to take over a section of their plant, she kept production running.

Doctors in an advocacy group told Thibodeau how essential the medication was for their patients and how shortages caused them to make difficult decisions. “That always stuck with me – it motivated me every day to do my job well,” she said.

At times, Thibodeau faced immense challenges. After Hurricane Maria devastated Puerto Rico, she worked to get manufacturing up and running, bringing jobs back to the community that was deeply affected and providing vital products to enable employees to take care of themselves.

“Day-to-day life was just physically difficult,” she said. “We had to take care of the people first, making sure they had what they needed to be safe, whether that was a generator or medicines or water or diapers.” In collaboration with site leaders and other businesses in the area, she helped to rebuild the industry and begin the process of renewal.

Thibodeau’s interest in manufacturing began at a young age. As a young girl, she built furniture for her dolls with raisin boxes and pieces of wood she found in her family’s garage. When her father, an electrician, went to work, she would tag along, learning how to trouble shoot, which is a skill that has proven valuable.

“I had building blocks and I liked to sew,” Elaine remembered. “I was always interested in putting things together.” An enthusiasm for math and some encouraging teachers led her to an engineering degree, and after a few years, she was offered her first role at Johnson & Johnson – beginning an exciting career that continues to draw her out of her comfort zone.

“If the new job or the new project doesn’t scare you a little bit,” she said, “you’re probably going to be bored in six months.”

Elaine Thibodeau won a 2019 Manufacturing Institute STEP Ahead Award. This profile was adapted from an original interview for the Input, the NAM’s members-only e-newsletter.

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