News & Insights

Activist shareholders from across the ideological spectrum have increasingly influenced public companies’ proxy ballots, and the Securities and Exchange Commission has unlawfully become their willing partner. That’s why the NAM has moved to intervene in a court case on the matter.

What’s going on: The NAM yesterday filed a motion to intervene in a case challenging the SEC’s authority to compel manufacturers to use their proxy ballots to speak about divisive social and political issues that are unrelated to a company’s business or long-term value.

• 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.

The background: An activist group that holds shares in Kroger Co. sought a shareholder vote on a proposal to have the grocery chain issue a public report concerning its equal opportunity employment policy.

• Kroger sought permission from the SEC to exclude the proposal from its proxy ballot, which the SEC granted. The group has sued the SEC, accusing the agency of acting in an inconsistent and politically motivated manner.

Why it’s important: Though the SEC rejected this proposal, the agency often requires companies to publish shareholder proposals it deems to have “broad societal impact.

• The NAM’s motion to intervene argues that the SEC’s requirement that companies publish and respond to these proposals is a violation of the First Amendment’s prohibition on government-compelled speech.
• Furthermore, federal securities law does not permit the SEC to dictate the content of company proxy statements, so the agency’s politicization of corporate governance has unlawfully federalized issues that have traditionally been governed under state corporate law.

Unnecessary—and increasing: Forcing manufacturers to take political positions on their proxy ballots drives up costs for the companies and draws needless and unwanted controversy, the NAM says. Yet, the number of activist proposals on proxy ballots is only growing.

• “In total, 682 shareholder proposals were filed for annual meetings being held through May 31,” The Wall Street Journal (subscription) reported.

How we got here: The NAM has been urging the SEC to prioritize the needs of long-term shareholders over activists’ agendas for many years.

• The NAM opposed the SEC’s guidance requiring companies to include most environmental and social proposals on their proxy ballots.
• It also urged the agency not to move forward with a proposed rule limiting companies’ ability to exclude activist proposals.

The last word: “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,” said NAM Chief Legal Officer Linda Kelly.

• “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.”

Manufacturers nationwide are taking steps to ensure a supportive and respectful workforce that values the varied talents and backgrounds of all employees. nVent—a manufacturer of electrical connection and protection solutions—believes that inclusion and diversity initiatives have the potential to positively impact every part of its business.

Inclusion and diversity have been a priority for nVent since it became a public company in 2018. By identifying strategic initiatives for its inclusion and diversity efforts, nVent has become a thought leader in the electrical manufacturing industry. Five years later, those initiatives have become a comprehensive strategy that is embedded in the company’s operations.

“We may not always have the answers,” said Chief Inclusion and Diversity Officer Laura Brock, “But we want to make sure we create an opportunity for progress and share the resources we have developed with our customers and partners to drive inclusion in our industry.”

A comprehensive strategy: nVent’s strategy is built around four pillars designed to promote inclusion and diversity throughout the company, according to Brock and Inclusion and Diversity Manager Jasmin Buckingham.

• Employees: From recruitment onward and throughout the employee lifecycle, nVent ensures that inclusion and diversity is part of every employee’s experience.
• Communities: nVent strives to be “a good citizen” in its community by promoting shared economic growth through multiple avenues—including philanthropy. It has made inclusion and diversity a central aim of these efforts.
• Customers: The company supports a diverse range of customers in the electrical industry and works to meet all customers where they are.
• Suppliers: nVent is focused on supplier diversity, which promotes engagement, growth and innovation through diverse business relationships.

Other initiatives: nVent runs several initiatives within its pillar strategy to drive inclusion and diversity across the company:

• ERGs: Employee Resource Groups are an important part of inclusion and diversity at nVent. These groups are “the hands and feet of creating an inclusive culture,” according to Brock. All employees are welcome to join ERGs, which create connections between peers across the globe. The ERGs allow employees to share experiences and discuss topics that are important to them, she added.
• Workshops: After the murder of George Floyd in 2020, nVent hosted workshops where people could ask questions and engage in discussion about race and injustice. Attendance sometimes topped 900 employees.
• Learning circles: nVent created a series of additional opportunities to bring employees together in inclusive spaces. These smaller groups allow employees to share stories and engage in open conversation.

Accountability for inclusion: Brock and Buckingham made it clear that the company’s inclusion and diversity work requires constant progress and accountability—making it essential to track metrics and promote improvements.

• Through an “inclusion index”—an employee pulse survey that sent out four times a year—nVent employees share their honest feedback. The data is then used to generate ESG scorecards for departments and leaders, which are a factor in compensation.
• “The choices we make and the behaviors we exhibit impact our culture at nVent. Everyone plays a role in creating an inclusive and respectful environment for all,” according to Brock.

Taking the pledge: nVent is also a proud signatory of the NAM’s Pledge for Action, which commits the industry “to taking 50,000 tangible actions to increase equity and parity for underrepresented communities, creating 300,000 pathways to job opportunities for Black people and all people of color” by 2025.

Advice for the industry: Companies should “get comfortable being uncomfortable,” according to Buckingham. “It can be uncomfortable having these open conversations … but it is important and impactful so that you can learn and understand one another better to make it a more inclusive workplace.”

It’s been more than two years since the Miscellaneous Tariff Bill expired—and the lack of renewal is harming manufacturers in the U.S.

What’s going on: Manufacturers have been operating without an MTB—legislation that temporarily eliminates or reduces tariffs on products not available in the U.S.—since January 2021, when MTB legislation that had been passed in 2018 expired.

• The MTB is typically renewed every few years. In June 2021, the Senate passed an MTB measure as part of the U.S. Innovation and Competition Act, and the House passed a different version in the America COMPETES Act, but Congress did not agree to trade provisions in the final China competition legislation.
• No MTB legislation has been introduced during this Congress in either chamber.

Why it’s important: The result of this inaction has been a direct economic hit to manufacturers, particularly small and medium-sized manufacturers that are paying more for product inputs.

• Since the MTB expired in December 2020, manufacturers and other businesses have paid more than $1 billion—or $1.3 million per day—in anticompetitive tariffs for goods they cannot source in the U.S., according to an NAM analysis.
• The added costs can create higher prices for consumers, making it harder for American families to buy goods from manufacturers in the U.S.
• Due in part to these tariffs, some manufacturers are having difficulty maintaining current staffing levels and expanding opportunities for existing workers.

Hurting the heartland—and Ukraine: Sukup Manufacturing Co., headquartered in Sheffield, Iowa, is a family-owned and -operated manufacturer of grain-storage and grain-handling products. It is paying tens of thousands of dollars in tariffs to import components from the Kyiv province of Ukraine.

• In 2022, the company paid nearly $40,000 in tariffs on imports from Ukraine.
• Ukraine’s export market is essential to its economic development as well as its ability to withstand Russia’s invasion. The lack of an MTB is creating barriers between companies in the U.S. and their Ukrainian partners at exactly the wrong time.

Hurting a local economy: For Element Electronics, the last remaining U.S. producer of LCD TVs, the absence of an MTB has created a highly uneven playing field—which has led to layoffs of employees at the Winnsboro, South Carolina, facility.

• Mexican producers of LCD TVs buy the same LCD panels as Element but are allowed to import them duty-free. They are then able to export the finished TVs to the U.S. duty-free, too, putting Element at an unfair disadvantage.
• Restoring the MTB would allow the company to compete fairly and return to full production and employment.

Creating jobs overseas instead of in the U.S.: Glen Raven, a 143-year-old global fabric manufacturer based in Burlington, North Carolina, uses the MTB for duty-free access to raw materials that haven’t been made in the U.S. in decades. When the previous MTB expired, the company was compelled to invest in operations outside of the U.S.

• During the pandemic, the business created more than 200 jobs, but because of the tariffs, it could not afford to locate the positions in the U.S. and instead expanded operations in Europe and elsewhere.
• “While we are committed to job creation and investment in the U.S., if we are unable to be competitive in this environment, we have a responsibility to invest where we have the greatest opportunity to achieve our growth objectives,” said Glen Raven President and CEO Leib Oehmig.

Losing customers: The family-owned Nation Ford Chemical, another South Carolina manufacturer, makes products used every day by the U.S. military. The absence of an MTB has cost the small company customers and is jeopardizing some of its 80 jobs.

• In 2022, to make just one of its products—a jet-engine lubricant additive called PANA—the Fort Mill–based company spent almost $500,000 on duties alone.
• Tariffs have cost NFC so dearly that it may soon be forced to close the smoke-dye component of its business. If it does, the company would have to lay off up to 10 workers, and the U.S. military would have to source the product from foreign markets.

Costing taxpayers: ICF Mercantile, a manufacturer based in New Jersey, purchases raw materials that are not available in the U.S. for products it sells to NASA and the Defense Department.

• The company is forced to pass the cost of the 10% tariff on to its government customers, which ultimately increases costs for American taxpayers.

What we’re doing: The NAM continues to lead the business community in urging Congress to pass the MTB.

• “If Congress is serious about supporting manufacturers and workers in the United States, they must prioritize the passage of the MTB as soon as possible this year,” said NAM Director of Trade Facilitation Policy Ali Aafedt.

Washington, D.C. – Today, the National Association of Manufacturers and Make UK hosted a meeting at NAM headquarters where they formalized manufacturers’ commitment to supporting close economic ties between the United States and United Kingdom. Make UK CEO Stephen Phipson and NAM President and CEO Jay Timmons signed an updated memorandum of understanding, which will serve as a roadmap to the cooperation between the two organizations and outlines the key goals and objectives for the partnership.

“The NAM and Make UK have such a strong, special relationship, just as the U.S. and the UK do, and we must continue to deepen that partnership and the commercial and economic ties between our countries,” said Timmons. “Cooperation between American and British companies not only makes our economies stronger, but also strengthens the transatlantic strategic alliances to support the rule of law, freedom and opportunity from those who threaten our shared values. Especially with Russia’s continued assault on Ukraine, it is critical that we unleash the power of commerce to preserve, protect and expand democracy.”

The MOU calls for Make UK and the NAM to work together to provide opportunities for their members to strengthen manufacturing through a number of avenues, including exploring potential trade delegations, trade fairs and business networks; facilitating visits and economic delegations between representatives of the two organizations for promoting trade, investment and commercial exchanges among member companies and organizations; and working together on joint meetings, conferences, seminars, reports, letters and mutually agreed advocacy on trade and investment-related issues.

“Make UK is delighted to have further strengthened our partnership agreement with our American counterpart, the National Association of Manufacturers, as we focus increasingly on boosting cross-Atlantic trade,” said Phipson. “In recent months, we have agreed to a process of even broader sharing of market intelligence, data and policy work, facilitating visits for economic delegations to visit on both sides of the Atlantic to unlock new trading opportunities.

“We will continue to work ever more closely as we look to cement commercial exchanges and opportunities for shared promotion as we build on the ties that have connected our two nations for generations. Relations with the U.S. are vital, and its market is the second-most important for UK goods. In a post-Brexit world, it is likely to assume ever greater importance as part of our efforts to boost global trade.”

Click here to view the full text of the MOU.

-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 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.

-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 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.

The NAM is a meeting place like no other, where manufacturers of all sizes and sectors gather to make the industry stronger. Recently, along with its partner CONNEX Marketplace, it invited manufacturing leaders to D.C. for high-level discussions about supply chain challenges.

The big picture: This meeting came at an exciting time for CONNEX. Formerly known as Manufacturers Marketplace, the program pivoted in 2022 to combine state-specific installations with the national platform and become a more powerful SaaS.

• Connecticut launched its own version of the CONNEX platform back in February, thanks to the support of the CBIA (a state business association and NAM partner) and the state’s chief manufacturing officer, Paul Lavoie—who discussed some early success stories at the D.C. event.
• “In the first two weeks, more than 200 companies joined, significantly more than the state’s most optimistic projections,” according to a Hartford Business Journal piece—and Lavoie told the paper he expects signups to blow past 750 in the first year.
• Meanwhile, Kentucky is also getting in on the action. The Kentucky Association of Manufacturers (also an NAM state partner) recently launched its own CONNEX Marketplace installation, which was announced by the governor. KAM CEO Frank Jemley also came to D.C. for the meeting, bringing his own success stories.

Talking the talk: The leaders in D.C. focused on how manufacturers can improve security and resiliency in the supply chain. They also discussed how local and state governments can ease supply chain challenges for businesses.

Security: As the participants observed, the key challenge is “illuminating risk” inside the supply chain, so that companies know what they’re facing.

• They discussed the many types of risks involved in supply chains, including cybersecurity, financial, business continuity, capacity and more.
• What’s next: CONNEX is working to integrate technology that will identify and highlight potential risks in a company’s specific supply chain.

Cooperation: The supply chain functions (or doesn’t) on the strength of manufacturers’ cooperation, from the largest companies to their smallest suppliers.

• Furthermore, competition is not company vs. company, but supply chain vs. supply chain, the participants agreed.
• Small manufacturers might benefit from a coach or guide to walk through the sourcing process so they understand how to remain resilient and competitive, one attendee recommended.
• What’s next: CONNEX is working on a playbook that entities such as manufacturing extension partnerships can use to help coach SMMs through the procurement process.

Progress: Executives from CONNEX reported more than 4,000 suppliers were connected to buyers in 2022, while the platform hosted 396 separate “postings” from manufacturers looking for specific parts or supplies.

The NAM will host another forum this fall where manufacturers will tackle supply chain issues. Contact NAM Senior Director of Member Business Services Anna Chongpinitchai for details. 

“Making a difference” might be the best description of what Mountaire Farms does. Founded in 1914, the fifth-generation family-owned chicken processing company has a long history of helping its communities thrive. 

Mountaire Cares: Through its Mountaire Cares program, the company’s employees are committed to changing lives for the better.

• “The Mountaire Cares program was created to fulfill three main core pillars: how are we faithful to our people, how are we faithful to our communities and how can we look to be faithful to the future,” said Mountaire Cares Director JR LaPearl.

Meals for thousands: One of Mountaire Farms’ biggest events during the year is its Meals for Thousands program, where the company partners with local churches, food banks and nonprofit organizations to provide meals for families in need at Easter, Thanksgiving and Christmas.

• The program had humble beginnings 28 years ago, with Roger Marino, who was PR and community relations director at Mountaire, leading the group to provide 300 meal boxes at Thanksgiving. The company has distributed more than 1 million boxes since then.
• For this year’s Easter event, the company’s employees and other volunteers packed 15,000 meal boxes, each of which contained a Mountaire roaster chicken; vegetables; macaroni and cheese; mashed potatoes and gravy; and brownies—enough food to feed a family of four.
• “Our employees really enjoy being a part of this effort to give back to the community,” LaPearl said. “What I love about these events is that they bring people together to share love and kindness to one another.”

Feeding all year long: But hunger doesn’t just exist during holidays. Mountaire Farms donates chicken to local food pantries every month so they can help fill the need all year long. And they partner with groups like nonprofit organizations, little leagues, fire companies and more that use chicken to help fundraise during the year.

And that’s not all . . .  Mountaire’s food programs are just one way the company gives back. It has partnered with Habitat for Humanity and several Boys & Girls Clubs on service projects, while also collaborating with local schools on renovations of playgrounds and basketball courts.

Why they do it: For LaPearl, it all starts with the company’s mantra “High Performance for a Higher Purpose,” striving to be a positive light to those around them.

• “Our people are the reason we’re able to do what we do and give back,” said LaPearl. “If it’s not volunteering, it’s the everyday work that we do that really helps to feed families here locally, around the region and around the world. It’s interesting when our employees are upset they were unable to volunteer on a particular day. I remind them that what you’re doing on a daily basis is making a major impact in the lives of people that you don’t even know because of your hard work and performance.”
• “When I have the opportunity to visit our processing plants and I see people smiling, singing in their respective cultural languages and just enjoying their job, that speaks volumes in today’s culture. I can tell they love being here. That’s the way we’re built.”

Mountaire cares about its employees: Through Mountaire Cares, the company offers leadership classes to help employees succeed in their roles and advance in their careers. It also provides scholarships to children and grandchildren of employees.

• In addition, the company built medical facilities at each of its processing plants, and recently established a chaplaincy program that offers employees guidance in times of crisis and high stress.

The last word: LaPearl has some advice for manufacturers who may want to start a program similar to Mountaire’s:

• “Clearly understand your strengths as a company and create an exceptional foundation to build off that. We weren’t able to do all of this overnight, so start small and really focus the first few years on going slow and being purposeful. And always show your employees you care.”

“Making a difference” might be the best description of what Mountaire Farms does. Founded in 1914, the fifth-generation family-owned chicken processing company has a long history of helping its communities thrive.

Mountaire Cares: Through its Mountaire Cares program, the company’s employees are committed to changing lives for the better.

• “The Mountaire Cares program was created to fulfill three main core pillars: how are we faithful to our people, how are we faithful to our communities and how can we look to be faithful to the future,” said Mountaire Cares Director JR LaPearl.

Meals for thousands:
One of Mountaire Farms’ biggest events during the year is its Meals for Thousands program, where the company partners with local churches, food banks and nonprofit organizations to provide meals for families in need at Easter, Thanksgiving and Christmas.

The program had humble beginnings 28 years ago, with Roger Marino, who was PR and community relations director at Mountaire, leading the group to provide 300 meal boxes at Thanksgiving. The company has distributed more than 1 million boxes since then.

• For this year’s Easter event, the company’s employees and other volunteers packed 15,000 meal boxes, each of which contained a Mountaire roaster chicken; vegetables; macaroni and cheese; mashed potatoes and gravy; and brownies—enough food to feed a family of four
• “Our employees really enjoy being a part of this effort to give back to the community,” LaPearl said. “What I love about these events is that they bring people together to share love and kindness to one another.”

Read the full story here. 

Washington, D.C. – The National Association of Manufacturers has launched a six-figure television and digital advertising campaign calling for reforms to ensure pharmacy benefit managers pass on prescription drug discounts directly to workers and employers. The campaign spotlights how these insurer-owned middlemen are contributing to skyrocketing health care costs and driving up the cost of medicines by pocketing big discounts from drugmakers instead of passing them on to America’s workforce.

“America’s manufacturing workforce has struggled with skyrocketing health care costs driven by insurer-owned PBM middlemen for far too long,” said NAM President and CEO Jay Timmons. “PBMs pocket big discounts from prescription drugmakers instead of passing them on to workers and employers. Manufacturers are committed to providing quality health care benefits to our employees, so we need reforms to stop insurer-owned PBMs from keeping discounts and driving up prescription drug costs.”

To view the latest television ad, click here.

-NAM- 

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs 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.

A plan to build a lithium mine in Nevada’s Thacker Pass moved forward this week, according to E&E News’ GREENWIRE (subscription).

What’s going on: “The Interior Department’s Bureau of Land Management announced on Tuesday that it had finished a court-ordered review of the government’s approval of Lithium Americas’ plan to build the mine and found evidence of ‘mineralization’ under areas where the company plans to store waste.”

• “The arcane issue of where and how mine waste is stored on federal land … was a remaining hurdle for the Thacker Pass project.”

The background: Lithium Americas, which owns multiple claims at the Nevada site, is building the mine with General Motors Co.

• As more automakers embrace electric vehicles, lithium—a crucial EV component—has become harder to get, leading car companies to start investing directly in mining.

What it means: The project will now be able to start construction and production at Thacker Pass.

The bigger picture: Interior’s announcement comes amid a larger debate about the need for legislation to address the Rosemont copper mine case.

• In that situation, a district court judge in Arizona vacated the U.S. government’s approval of a proposed copper mine outside of Tucson “after finding that regulators had failed to validate Canadian firm Hudbay Minerals Inc.’s unpatented mining claims on federal land, including the 2,447-acre site where the company planned to store 1.9 billion tons of mining waste.”
• In the past few weeks, bipartisan groups of lawmakers in the House and Senate have offered measures to address the issue of mine waste. One, the Senate’s Mining Regulatory Clarity Act, would allow entities with claims on public land to mine, process and discard waste prior to proving the presence of valuable underground minerals.