Press Releases

Timmons: America Is Stronger Thanks to MacKie’s Leadership

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released this statement on the retirement of American Bakers Association’s longtime President and CEO Robb MacKie.

“Manufacturing in America today is stronger thanks to the exemplary leadership of Robb MacKie. For nearly two decades, I’ve known Robb as a true friend and a source of wise counsel. Through the years, I’ve learned from him and regularly drawn inspiration from his passion for manufacturing. He chaired the NAM’s Council of Manufacturing Associations during an incredibly consequential time—as our industry navigated and responded to the COVID-19 pandemic, social unrest and threats to our democracy. He poured his heart and energy into our cause, just as he always has at the ABA, and he has strengthened the association community with his years of leadership and advocacy for the industry. Throughout his association career, Robb has demonstrated an unshakeable dedication to the principles that have made America exceptional—free enterprise, competitiveness, individual liberty and equal opportunity—and has always worked to uphold those values through his tenure at ABA and his service on the CMA.

“The business association community will sorely miss working closely with Robb. We’re losing an important voice as he steps down. The NAM and his many friends and colleagues in the CMA are fortunate to have benefitted from his vision, support and leadership, and it is with a sense of deep gratitude that we wish him and his family nothing but the best.”

-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.

Press Releases

Manufacturers on Supreme Court Decision

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released this statement following the Supreme Court’s ruling in Dobbs v. Jackson Women’s Health Organization:

“America is at its best when we address difficult questions in a spirit of compassion and empathy, with respect for each other’s deeply held views. That is the example that we will strive to set at the NAM. Our mission is to uphold the values of free enterprise, competitiveness, individual liberty and equal opportunity, which we know have made America exceptional and kept manufacturing strong.

Even amid all positions and strongly held views, many businesses must now discern how best to support employees and families within the framework of the law. The NAM will work to connect our member companies with the legal, HR and health care information and resources they need to navigate the effects of the ruling.”

-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.

Business Operations

AlloSource Honors Tissue Donors, Heals the Living

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The supply chain of biotechnology company AlloSource looks a bit different from the supply chains of other manufacturers—mostly because it hinges on the donation of human tissue.

A different kind of manufacturing: For nearly three decades, Colorado-based AlloSource has transformed donated human tissue from deceased individuals into transplantable products, or “allografts,” that surgeons can use to heal living patients.

  • “Something that distinguishes AlloSource among manufacturers is [that] our base materials come from donated human tissue, which makes manufacturing very complex,” said AlloSource Chief Operating Officer Dean Elliott.
  • “Donors vary in age, size and many other factors, so a lot of planning takes place to ensure the gift of tissue donation is fully maximized. Each allograft takes a different amount of time to create through a variety of unique processes.”
  • Common tissue recovered for donation includes skin to treat burn victims and bones and ligaments for use in orthopedic procedures to restore mobility.

Meeting a need: AlloSource, which today is one of the largest providers of allografts in the world, was founded in 1994 by three organ procurement organizations “out of a need for expertise in transforming deceased human donor tissue into transplantable products,” Elliott said.

  • Today AlloSource produces approximately 200 different types of allografts, which are used in surgeries ranging from spinal fusion to shoulder rotator-cuff repair.
  • In 2021, the company used tissue from nearly 8,000 unique donors to place more than 200,000 allografts in all 50 states and in 25 countries.

How it works: Following the passing of a donor, a local tissue-recovery agency has just 24 hours to recover the tissue to be made into allografts.

  • “One of the miraculous things that happens when someone dies is their cells stay alive—and as long as the tissue is recovered and sent quickly, AlloSource can preserve the tissue while keeping the cells viable,” Elliott said.

Always innovating: AlloSource has made great strides in its field over the past few decades. The company recently patented a method of decellularizing skin, a process that lowers the risk that an allograft will be rejected by a recipient. The method was developed by its R&D and engineering teams.

  • This method “keeps our in-house cleanroom usage at a minimum while allowing for a higher volume of processing so that we have enough allografts available to help more patients,” Elliott said.

Meaningful work: At a time of record-high job openings, the biotech organization has a high level of employee retention—thanks to “our unique mission,” Elliott said.

  • “We offer competitive pay and benefits and the opportunity to grow in an evolving medical field,” Elliott said. “But we also look for people who are driven by a mission of helping others—and that culture is ingrained in our day-to-day operations.”
Press Releases

Manufacturers Warn Gas Tax Suspension Is a Step Backward

Washington, D.C. – Following the decision by President Biden to instruct Congress to suspend federal gasoline and diesel taxes for three months, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Our nation achieved historic progress with the Bipartisan Infrastructure Law, but this move is likely to derail its implementation by suddenly disrupting its funding, delaying critical projects that Americans desperately need and that are vital to manufacturers’ competitiveness. Our focus should be on increasing energy production here at home—to make manufacturers more competitive, to bring energy and gasoline prices down and to provide lasting relief for American families. We need the same smart, long-term approach that inspired the infrastructure bill to solve today’s energy challenges.

“Since the beginning of this administration, we have provided specific solutions and recommendations for improving energy security and taking an all-of-the-above approach: restarting and expanding oil and gas leasing on federal lands, prioritizing funding and expediting permitting for traditional and emerging energy options, expanding critical mineral mining and processing, strengthening and diversifying clean energy supply chains, promoting regulatory predictability by refraining from revising air standards until previous ones are met, upholding the infrastructure law’s One Federal Decision policy and more. We would be in a better position now if these and other actions had already been taken, and the need to act has only grown more urgent. Manufacturers will continue doing everything in our power to be part of the solution.”

-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.

Policy and Legal

NAM Lays Out Economic Recommendations

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To support the work of Congress’ Jobs and Economy Task Force, NAM President and CEO Jay Timmons laid out a series of recommendations designed to strengthen manufacturers’ competitiveness and the economy as a whole.

Supporting innovation: NAM opposes a new provision in the tax code that makes research and development expenses deductible over a period of years, rather than in the same year they are incurred. This change makes R&D more expensive in the US, threatening American innovation as well as manufacturing jobs that are directly or indirectly supported by R&D.

Financing growth: Timmons outlined NAM’s support for reversing the stricter interest deductibility limitation that went into effect this year. “The stricter limitation essentially acts as a tax on investment and makes the U.S. a global outlier,” said Timmons. “Permanently reversing this harmful change will help support future long-term job-creating investments.”

Protecting a level playing field: Timmons urged Congress to prevent several scheduled tax changes to the international tax regime from going into effect. He wrote, “Congress should ensure that manufacturers do not face a harsher tax regime than the rest of the world as it would disadvantage manufacturers and manufacturing workers in the US.”

Ensuring access to capital: Since manufacturing is a capital-intensive industry that requires significant investments in equipment, facilities and R&D, NAM encourages the federal government to help, rather than hinder, access to capital. Timmons urged the government to enable capital formation by publicly traded companies, avoids imposing undue restrictions on pro-competitive mergers and acquisitions, and provides support for small and medium sized manufacturers.

Other recommendations: Timmons further encouraged Congress to strengthen, streamline, and codify the regulatory system to improve regulatory outcomes and efficiency, improve workforce development by updating the Work Opportunity Tax Credit, and bolster supply chain resiliency through the creation of a federal fund that provides grants, loans, and loan guarantees.

The last word: “At this time of high inflation, snarled supply chains, workforce shortages and global instability, manufacturers need every available tool to continue driving economic growth and job creation in the United States,” said Timmons. “As has been abundantly clear in recent years, manufacturing in America is critical not just to our economic health but to public health—to our very lives and livelihoods.”

  • “The decisions policymakers make today will determine whether manufacturing in the United States—and therefore the entire American economy—will remain an engine of growth and opportunity. Manufacturers’ policy agenda provides a solid path forward.”

Read more: For more of the NAM’s policy agenda, check out Competing to Win.

Business Operations

World’s Largest Floating Wind Farm Could Become Reality

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Energy company Equinor, in partnership with ConocoPhillips, Shell and Total, is looking into the possibility of building the world’s largest floating offshore wind farm, according to POLITICO Pro’s CLIMATEWIRE (subscription).

What’s going on: Equinor said that “Trollvind,” which would be constructed off the coast of Bergen, Norway, “would have an installed capacity of about 1 gigawatt and would produce 4.3 terawatt-hours annually.”

  • “The companies are aiming to make the installation economically feasible by buying as much energy as it produces and are targeting a final investment decision next year to bring the installation online in 2027.”

Why it’s important: The announcement comes as many energy companies look increasingly to offshore wind, which is set “to develop rapidly through the end of the decade.”

  • Floating offshore installations such as the planned Trollvind allow for energy harvesting in deep waters where installing fixed-foundation turbines is not feasible, opening up many more areas of the water to wind capture.
  • “The Global Wind Energy Council (GWEC) forecasts that floating offshore wind capacity will reach 16.5 GW by 2030, according to a recent report published by GWEC and sponsored by Shell.”

A call to U.S. action? “This continued advancement begins unlocking the technology and supply chain to build the new industry,” Business Network for Offshore Wind Director of Coalitions and Strategic Partnerships Sam Salustro told the publication.

  • “[T]here is still a need for coordination between the states and federal government to ensure we have the infrastructure to support floating [wind] and can support our suppliers.”
  • The West Coast leads the U.S. in floating wind-farm development.

The NAM’s take: “This announcement is part of a much larger trend we are seeing in the U.S. and around the globe,” said NAM Director of Energy and Resources Policy Chris Morris. “The NAM has been a leader in ensuring all states that want to pursue offshore wind options can. Earlier this year, we urged policy makers to repeal the 10-year moratorium on offshore wind leasing off the coasts of North Carolina, South Carolina, Georgia and Florida. We will continue to push for policies that provide diverse, secure energy options for manufacturers.”

Press Releases

WTO TRIPS Decision Jeopardizes Pandemic Response, Manufacturing Competitiveness

Washington, D.C. – Following a decision by the World Trade Organization to lift intellectual property protections for COVID-19 products, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“This damaging decision will undermine American innovation, competitiveness and technology leadership—weakening manufacturing in America and threatening the jobs of manufacturing workers. Even worse, the agreement could exacerbate the supply chain and logistical hurdles that represent the biggest current challenges to global efforts to ensure access to critical COVID-19 products.

“It is alarming and disappointing that the United States would join other countries to give away manufacturers’ innovations to our commercial rivals. Our industry has been on the front lines of efforts to fight COVID-19—developing, manufacturing and distributing vaccines and other essential products needed to save lives and strengthen our economy. American innovation has been at the heart of the manufacturing response to the pandemic and will be just as critical for our ability to lead the world and respond to future global health crises.

“Manufacturers have been vocal supporters of effective solutions at the WTO that leverage trade to fight the pandemic—but this waiver is not one of them. Manufacturers call on the Biden administration to reverse course on this decision and take immediate action to protect this vital technology, American workers and global health.”

-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.

Business Operations

Rockwell CEO Blake Moret Talks Supply Chains

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Blake Moret thinks a lot about supply chains. The chairman and CEO of Rockwell Automation—the world’s largest company devoted exclusively to industrial automation and digital transformation—Moret is helping other manufacturers navigate the disruptions of the pandemic and the painful shortage of semiconductors.

On his way back from sharing his experiences and best practices at the World Economic Forum in Davos, Moret spoke with the NAM about the current state of the industry, his predictions for the future and what manufacturers should do to prepare.

What’s happening: Moret sees a few “overarching trends” in manufacturing:

  • First is the historically high levels of demand, which had been pent up during the pandemic and is also caused by businesses trying to expand their market share.
  • Second, there is also a historic shortage of components, especially the very disruptive shortage of semiconductor chips.
  • Last, of course, labor and material inflation is putting additional pressure on manufacturers’ operations.

The chip shortage: The shortage of semiconductors poses the biggest near-term problem for Rockwell and the industry, Moret notes. But the demand for chips isn’t just as simple as supply chain snarls and post-pandemic rebound; it is also caused by manufacturers working to make their products “smarter than ever before”—an industry trend that isn’t likely to change anytime in the future.

  • Rockwell’s solution, says Moret, is to reduce pressure on its customers by “strengthening long-term relationships and tightly aligning technology roadmaps with existing suppliers and deploying our engineering resources to find alternatives for the most severely constrained types of chips.”

When can manufacturers expect relief from this chip crunch?

  • Chip manufacturers are adding “incremental capacity,” says Moret, but “it will take a while for supply and demand to balance out.”
  • “Over the next year, the situation will improve,” he adds, though manufacturers may still be dealing with constraints.

Redundancy: To cope with supply chain disruptions, Rockwell has also been adding redundant capacity into its worldwide network.

  • The company is increasing the number of products that can be made in more than one facility around the world.
  • “Just-in-time principles are very efficient when every link in the supply chain is doing what is expected. But with disruptions like the pandemic and chip shortages, that sort of efficiency is not totally possible,” Moret says.
  • “Elements of redundancy that in the past were not able to attract funding will get funded now.”

The U.S. market is a top priority, Moret adds, and Rockwell has extensive operations here.

  • “Even in a high labor-cost market, the high-trained [U.S.] workforce, coupled with advanced technology, can make products that can successfully compete anywhere on earth,” he says.

After the pandemic: Now that COVID-19 restrictions are all but over, what’s in store for Rockwell?

  • Moret says that his company found that many of its jobs could be done from home. Its team buckled down during the pandemic, contributing to the production of essential products, such as packaged food and vaccines.
  • Now, as workplaces have returned to “normal,” Rockwell continues to embrace a flexible work culture. Moret says its next challenge is ensuring that a workforce with such flexibility stays engaged and able to form productive collaborations.

“Workforce is very near and dear to my heart,” explains Moret. A former chair of The Manufacturing Institute’s Board of Trustees (and a current member of the NAM Executive Committee), Moret is a big proponent of developing flexible, targeted training programs.

  • One such program at Rockwell, the Academy of Advanced Manufacturing, trains veterans for roles in manufacturing plants (much like the MI’s Heroes MAKE America program).
  • It provides “outcome-based training,” Moret says, offering a “quicker and more hard-hitting program” that is 12 weeks long and does not necessarily require two- or four-year degrees.

What should manufacturers do? Moret has some advice for other manufacturers seeking to build more resiliency into their operations.

  • He recommends developing a “product resiliency index,” which accounts for factors that affect production—the value of the product, its manufacturing complexity, how distributed the manufacturing needs to be, how many vendors are needed and more. Manufacturers should consider this right from the start of developing a product, Moret says.
  • It’s also important to talk to key suppliers “to understand what their roadmaps are.” You need to know when you are relying on suppliers for products that aren’t “strategic” for them, he explains—as that could pose a problem for you down the line.
  • Moret also recommends conducting this audit on both new and old products. “We’ve had to go back [to established products] to assess them with this resiliency index to make sure we’re not vulnerable.”

The last word: Collaboration with partners on supply chain issues and workforce development is key. “No one company can do it all. Being able to assemble the right team is maybe the most important starting point to emerging stronger than ever.”

For policy recommendations that address the supply chain and other challenges, and which can enhance U.S. manufacturing competitiveness, visit https://www.nam.org/competing-to-win/.

Policy and Legal

DACA Recipients Deserve Certainty

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As we mark a decade since the introduction of Deferred Action for Childhood Arrivals, millions of hardworking people—many of whom were essential workers during the pandemic—remain uncertain of their future, NAM President and CEO Jay Timmons said today, as he urged Congress to act.

What’s happening: The vast majority (94%) of those eligible for DACA, a program that provides two-year deportation deferments for some non-U.S.-born young people, are employed in the country’s workforce, Timmons noted in communication to Congress.

  • “More than three-quarters of DACA recipients were essential workers during the COVID-19 pandemic,” Timmons said. “In fact, DACA recipients are involved in work across the economy, from construction to hospitality to manufacturing.”

The manufacturing angle: The manufacturing sector, which has nearly 1 million job openings, can’t afford to lose skilled members of its labor pool, according to Timmons.

  • “Further disruptions to the legal status of this worker population would be devastating,” he said.

What can be done: Legislators should make moves before the scheduled July 6 Court of Appeals hearings on DACA’s legality, Timmons recommended.

“Congress should act ahead of the courts and legislate to ensure a stable future for this population. We look forward to engaging with [policymakers] as we work towards a solution for these deserving individuals.”

Press Releases

Manufacturers Remain Resilient as Recession Concerns Rise

Washington, D.C. – The National Association of Manufacturers released its Q2 2022 Manufacturers’ Outlook Survey, which shows manufacturers’ significant concerns around recession, inflation, hiring and China competition legislation. The NAM conducted the survey May 17–31, 2022.

“Through multiple crises, manufacturers have proven remarkably resilient, but there’s no mistaking there are darker clouds on the horizon. A majority of our surveyed members believe inflationary pressures are making a recession more likely within the next year,” said NAM President and CEO Jay Timmons.

“Russia’s war on Ukraine has undeniably exacerbated higher energy and food costs. This, along with record deficit spending since the pandemic began, has created the highest inflation since 1981. But actions here at home can help ease these pressures, including first and foremost harnessing every energy resource available to us domestically and quickly—and refraining from imposing new taxes on manufacturers or families. It also means acting on manufacturers’ solutions to our supply chain challenges and passing the China competition bill—or Bipartisan Innovation Act. Though it won’t solve every issue, this will give us many of the tools needed to ramp up domestic manufacturing and strengthen our supply chains. That’s why 88% of manufacturers in our survey see it as an important piece of legislation—and Congress needs to move swiftly to get it to President Biden’s desk.”

Key Findings:

  • In the survey, 59.3% of manufacturing leaders believed inflationary pressures would make a recession more likely in the next 12 months.
  • Increased raw material costs topped the list of primary business challenges in the second quarter, cited by 90.1% of respondents.
  • Three-quarters of manufacturers felt inflationary pressures were worse today than six months ago, with 53.7% noting that higher prices were making it harder to compete and remain profitable.
  • The top sources of inflation were increased raw material prices (97.2%), freight and transportation costs (83.9%), wages and salaries (79.5%) and energy costs (55.9%), with 49.4% also citing a shortage of available workers.
  • When asked about what aspects of the China competition legislation were most important for supporting manufacturing activity, 70.9% of respondents cited addressing port congestion and competition issues in ocean shipping.

Despite ongoing economic headwinds, manufacturers remain largely optimistic, with 82.6% of respondents maintaining a positive outlook for their company.

-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.

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