Policy and Legal

Press Releases

Manufacturers: President Trump Has Landed Historic Deal

Timmons: Agreement Will Protect Manufacturing Innovations and American Jobs

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement welcoming the trade announcement from the United States and China:

President Trump has landed an historic, enforceable deal that protects a broad range of U.S. intellectual property, such as trade secrets, and provides strong, new tools to tackle counterfeiting of our products. The agreement also ensures tough enforcement to protect manufacturing innovations and, most importantly, the jobs of American workers today and into the future. For two years, manufacturers have been the leading voice for an enforceable agreement to make China play by the rules and stop cheating once and for all. This is an enormous step forward to achieving that goal.

The NAM first called for the administration to pursue a bilateral trade agreement with China in a letter from Timmons to President Trump in January 2018. The NAM has released a full negotiating objectives framework for an agreement that will address China’s unfair trade practices and level the playing field for manufacturers in the United States.

Today’s announcement represents real progress, and manufacturers look forward to working with President Trump and U.S. Trade Representative Robert Lighthizer to achieve additional concrete outcomes on other key unfair trade practices that translate into a lasting, game-changing agreement.

-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 multiplier 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 Twitter and Facebook, please visit www.nam.org.

Press Releases

NAM Responds to Carbon Capture Report

Washington, D.C. – Carbon capture is one of the most promising tools to address climate change, especially for industrial sectors. Today’s release of “Meeting the Dual Challenge: A Roadmap to At-Scale Deployment of Carbon Capture, Use and Storage” will help policymakers prioritize solutions and drive innovation. NAM Senior Director of Energy and Resources Policy Rachel Jones had the following response:

Manufacturers in America continue to lead the charge on clean energy solutions. We can’t address climate change without carbon capture, but hurdles stand in the way of faster progress. This report maps out a plan; now we need policymakers to take swift, bold action.

The NAM applauds the hundreds of scientists, engineers, geologists and other experts who undertook this effort to understand what we need to fully benefit from carbon capture technologies. We’re dedicated to developing this technology here in the U.S. and to ensuring America continues to lead.

BACKGROUND: “Meeting the Dual Challenge: A Roadmap to At-Scale Deployment of Carbon Capture, Use and Storage” answers the Secretary of Energy’s request for advice on the actions needed to deploy carbon capture technologies at scale in the United States. Building on previous research and expertise, the report addresses the entire CCUS supply chain and recognizes that at-scale success requires economic and operational integration across industries, harmonized local/state/federal regulations and broad public acceptance.

Quotes from the carbon capture report:

“Carbon capture, use and storage (CCUS) is an essential element in the portfolio of solutions needed to take on the dual challenge of supplying energy while addressing the risks of climate change. This report describes the opportunity and maps out the actions needed to expand the application of CCUS in the United States.”

“To achieve CCUS deployment at scale, the U.S. government will need to reduce the uncertainty on existing incentives, establish adequate additional incentives and design a durable regulatory and legal environment that drives industry investment in CCUS.”

“At-scale deployment of CCUS will help the U.S. energy industry shape the energy transition by continuing to supply the growing world population with more energy in the decades to come, while reducing emissions to limit the risks of climate change.”

-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 multiplier 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 Twitter and Facebook, please visit www.nam.org.

Press Releases

Manufacturers Welcome Progress on USMCA Agreement

Timmons: “A Ratified USMCA Will Deliver Increased Certainty for Manufacturers”

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement welcoming the announced deal to move forward the U.S.–Mexico–Canada Agreement:

Manufacturers support the USMCA, and we are encouraged that the administration and House Democrats have forged a path forward, with the support of Canada and Mexico as well. To be sure, as with any agreement of this nature, not every objective that we sought was met. For instance, we are extremely disappointed that the agreement missed an opportunity to set the gold standard for the protection of American-made lifesaving innovations and inventions. Protection of intellectual property is a key principle and critical for the long-term vitality of the manufacturing industry and the men and women who work in our sector.

Nevertheless, a ratified USMCA will deliver increased certainty for manufacturers—especially for the 2 million manufacturing workers whose jobs depend on North American trade.

This has been a long process, and manufacturers will continue to work closely with the administration and both the House and Senate to approve the USMCA by the end of this year. We deeply appreciate the hard work of the Trump administration, particularly the United States Trade Representative, Ambassador Bob Lighthizer, as well as leaders of both parties in Congress who have brought us to this point and continue to listen to manufacturers.

-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 multiplier 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

Eli Lilly and Company Invests in Medicine Innovation and New Jobs

These developments were made possible due to tax reform.

In part enabled by the recent tax reform law, Indiana-based pharmaceutical manufacturer Eli Lilly and Company (“Lilly”) is investing $400 million in its Lilly Technology Center campus in Indianapolis. In addition to serving the growing demand for its current medicines, the investment will provide manufacturing capacity for future medicines through innovations like technology upgrades and new automated facilities that use robotics and data analytics to improve efficiency.

“Tax reform was a part of our decision to make this investment in our company and our employees because it allowed us to keep dollars here and invest them in the United States,” said Lilly Senior Vice President and President of Manufacturing Operations Myles O’Neill.

The investment is expected to create approximately 100 new jobs, including operators, engineers, chemists and biologists, and projects spurred by this large-scale investment will provide hundreds of additional jobs for men and women who will support the implementation of this new investment.

“These investments support our manufacturing capabilities in Indianapolis, including additional capacity and technology upgrades to our active ingredient, syringe filling, device assembly and packaging operations,” O’Neill said. “All of these projects support Lilly’s investment in next-generation manufacturing and feature high levels of automation, robotics, new technologies and advanced data analytics.”

Lilly has invested over $5 billion in the United States since 2012, with the majority of this investment in its Indiana facilities and nearly $2 billion in the manufacturing of diabetes medicines. One of the largest employers in the Indianapolis area, the company employs more than 30,000 people and sells products in approximately 125 countries.

“Lilly’s investment is a demonstration of the extraordinary opportunity that tax relief has given companies and communities across the United States,” said National Association of Manufacturers Vice President, Tax and Domestic Economic Policy Chris Netram. “We have seen stories like this one from large and small manufacturers nationwide. That’s why we advocated for tax reform, and that’s why we’ll keep fighting for the kind of smart, responsible tax policies that benefit millions of manufacturing employees and support effective growth.”

Policy and Legal

Small Manufacturers Highlight Ex-Im Bank’s Essential Role

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On Nov. 21, the President signed a stopgap funding bill. In addition to keeping the federal government funded through Dec. 20, the bill includes provisions to keep the Export-Import Bank of the United States open for another month while lawmakers debate its authorization moving forward. The Bank would have shuttered this week without congressional action, but what manufacturers ultimately need is a robust, long-term reauthorization of the Ex-Im Bank rather than repeated short-term extensions.

The House of Representatives recently passed a 10-year robust reauthorization of the Bank, and the Senate has introduced a bipartisan reauthorization bill that similarly extends the Bank’s charter for a decade. Both bills have received the NAM’s public support. Here’s why manufactures are urging Congress to act.

The Export-Import Bank is the “lender of last resort” for U.S. businesses competing for overseas contracts, supporting millions of American jobs since 2000. Without a fully functioning Ex-Im Bank, small and large manufacturers across the country could lose business opportunities that allow them to hire more workers and increase investment in their communities.

One such manufacturer, California-based energy equipment supplier FirmGreen, employs 11 workers and relies on the Ex-Im Bank to create a level playing field when competing for international business.

“Without the Ex-Im Bank to supply the necessary finances, potential clients have chosen to do business with South Korea, Europe and other countries with foreign agencies that could supply the finances,” said FirmGreen Chairman & CEO Steve Wilburn. “We lost many potential projects when Ex-Im was hobbled, and that’s had a direct impact on jobs.”

U.S. Bridge, an Ohio-based steel manufacturer with 75 employees, has relied on the Ex-Im Bank to develop strong trade relationships internationally and support jobs here at home. A third-generation family-owned business, U.S. Bridge highlights the important work of the agency in supporting small manufacturing companies.

“Ex-Im Bank has played a critical role in helping us make foreign sales in tough markets, doing everything possible to promote U.S. sales that support our manufacturing here. Without the Ex-Im Bank, we would have lost new opportunities and a critical trading relationship would be unsustainable,” said Richard Rogovin, Chairman of U.S. Bridge. “In addition to financial support, the staff is very knowledgeable about foreign trade, ready and willing to be helpful, and provides expertise that we could not afford to employ otherwise.”

“With more than 100 foreign export credit agencies seeking to help their industries at our expense, and more than 90% of the Ex-Im Bank’s transactions directly supporting small businesses, manufacturers see the bank as a key tool for maintaining a robust American workforce by helping manufacturers compete anywhere and everywhere,” said Linda Dempsey, Vice President of International Economic Affairs Policy at the National Association of Manufacturers.

Manufacturers are facing significant challenges—driven in part by global economic headwinds and trade uncertainty—and a long-term reauthorization of the Ex-Im Bank will strengthen America’s manufacturing industry. That’s why the NAM continues to call for a robust, long-term reauthorization.

Press Releases

NAM Supports EPA Rule Strengthening the Risk Management Program

Washington, D.C. – National Association of Manufacturers Vice President of Energy and Resources Policy Ross Eisenberg released the following statement after the U.S. Environmental Protection Agency issued a final rule that strengthens manufacturing facility safety and security.

Manufacturers believe strongly in safety as part of an ongoing commitment to the communities around them and those they serve. This is why NAM members make security investments and prudently engage in risk management planning, and that’s why we support the action the EPA is taking now, said Eisenberg. By further strengthening the integrity of the Risk Management Program, the EPA can help guarantee safety and security for facilities and communities by ensuring manufacturers are able to continue making safe, innovative and sustainable products while protecting human health and the environment.

-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 multiplier 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

Impending Health Care Taxes Loom Over Manufacturers

Manufacturers are committed to offering the highest quality healthcare to employees. But the cost of health insurance continues to rise, and three previously-delayed health care taxes are set to go into effect unless Congress acts. Catie Kawchak, National Association of Manufacturers Director of Infrastructure, Innovation and Human Resources, discusses the continued urgent fight against higher costs.  

What are the taxes manufacturers are fighting against?

Manufacturers are fighting against three major taxes on health care: the Health Insurance Tax (HIT), a multi-billion dollar tax imposed on health insurance premiums; the so-called Cadillac Tax, a 40 percent tax on more expensive health insurance plans; and the medical device tax, a tax on life-saving medical devices.

Why do these taxes matter for manufacturers?

All three would increase the cost of care and undermine employees’ wellbeing. According to Oliver Wyman global consulting, HIT could raise the cost of premiums by an additional $500 for the families of small business owners and their employees. The Cadillac Tax places a 40 percent tax on “high-cost” health insurance plans, making it difficult to provide high-quality insurance to employees. The medical device tax would cost manufacturers $2 billion annually, diverting resources from investment in life-saving equipment and making it harder for these businesses to expand.

What is the overall impact on manufacturers?

Manufacturers provide great benefits to their workers not only to attract or retain employees but because it’s the right thing to do. Tax proposals like these make it more difficult to provide the care that our employees depend on and to invest in life-saving medical innovations. Manufacturers employ about 13 million people across the country, and these taxes would harm them and their communities.

Why does this matter now?

Congress must move quickly to prevent these taxes from impacting manufacturers. HIT and the medical device tax are both set to go into effect on January 1, 2020, meaning Congress only has a few weeks to stop or delay these penalties. And even though the Cadillac Tax doesn’t go into effect until 2022, manufacturers have already begun to prepare for a 40 percent tax hike on high-cost health benefits. The only way to prevent these tax hikes from harming manufacturers is for Congress to repeal or delay them in the coming weeks. That’s why the NAM has been working so hard on this issue.

What’s next?

Manufacturers are united with bipartisan lawmakers to stop these harmful taxes. In November, bipartisan freshman congressmen urged their colleagues to address the HIT this year; with the NAM’s strong support, the House already passed Middle Class Health Benefits Tax Repeal Act of 2019 by a vote of 419-6 to repeal the Cadillac Tax; and legislation to repeal the medical device tax has the support of a majority of the House. On Wednesday, the NAM united with fellow advocacy leaders at the Business Roundtable and U.S. Chamber of Commerce to call for repeal of all three taxes this year. Congress should end them now.

Press Releases

Manufacturers Applaud House Passage of Long-Term Ex-Im Reauthorization Bill

“The members of Congress who cast their vote for reauthorizing the Export-Import Bank stood with America’s manufacturing workers today.”

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement after the House of Representatives passed the United States Export Finance Agency Act (H.R. 4863), legislation to reauthorize the Export-Import Bank for 10 years:

The members of Congress who cast their vote for reauthorizing the Export-Import Bank stood with America’s manufacturing workers today. The Ex-Im Bank is a vital tool for ensuring manufacturers in America can compete on a level playing field. Around the world, 100 other export credit agencies are in operation, so shutting down the Ex-Im Bank is akin to unilateral disarmament. It would hand a victory to China. That is why the Senate must now act. Manufacturers strongly support both the just-passed House bill and the bipartisan Senate Ex-Im Bank reauthorization bill introduced by Sen. Kevin Cramer (R-ND) and Sen. Kyrsten Sinema (D-AZ) that similarly provides for a 10-year robust reauthorization. Manufacturers urge the Senate to act on a long-term and robust reauthorization to provide certainty and improve American competitiveness.

Quick facts about the Ex-Im Bank:

  • The agency has supported 2.5 million jobs over the past 20 years.
  • On average, more than 90% of the Ex-Im Bank’s transactions directly support small businesses.
  • The agency has generated $9.6 billion for taxpayers since 1992.
  • Foreign competitors are stealing America’s competitive advantage by devoting hundreds of billions of dollars to official export credit agency financing for their domestic manufacturers.
  • The agency’s default rate is better than many commercial lenders and far below the 2% maximum rate set by Congress.

-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 multiplier 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

Manufacturers Urge Support for DACA Ahead of SCOTUS Decision

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The U.S. Supreme Court heard oral arguments today on the Deferred Action for Childhood Arrivals program, a case that will decide the future of more than 800,000 immigrants living in the United States and will have serious implications for America’s workforce. The National Association of Manufacturers filed an amicus brief with 143 companies calling for the Supreme Court to uphold DACA while outlining the importance of Dreamers to America’s workplaces and the American economy.

“Eliminating DACA will inflict serious harm on U.S. companies, all workers, and the American economy as a whole. Companies will lose valued employees. Workers will lose employers and co-workers,” the brief states. “Our national GDP will lose up to $460.3 billion, and tax revenues will be reduced by approximately $90 billion, over the next decade.”

Established in 2012, DACA allowed undocumented immigrants who had been brought to the United States as children to apply for protection from deportation and permission to work in the United States. In 2017, the Trump administration rescinded the program, leading to a series of lawsuits that has brought the case to the Supreme Court. DACA recipients, often called “Dreamers,” will lose their work authorization and face possible deportation if the program is rescinded.

“Dreamers have become an integral part of our society and our workforce and have the potential to offer so much more to our country if they can continue their pursuit of the American Dream,” said Linda Kelly, NAM senior vice president of legal, general counsel and corporate secretary. “The NAM supports DACA’s work authorization for more than 800,000 individuals to help meet the workforce challenges facing manufacturers and to allow those people to continue to contribute to their companies, communities and families—as well as this country, which for many is the only home they have ever known.”

Earlier this year, the NAM released “A Way Forward,” a comprehensive and practical proposal designed to fix our broken immigration system. The plan calls for a pathway to citizenship for DACA recipients as well as similar opportunities for the broader Dreamer community, which encompasses about 1.5 million people. Overall, “A Way Forward” highlights seven core areas of action that would bolster national security, uphold the rule of law and establish a modern, well-functioning system for welcoming new people to the United States. The uncertainty over the future of DACA recipients highlights the urgent need for Congress to pass bipartisan comprehensive immigration reform that achieves these goals.

The Supreme Court is expected to issue a decision on DACA by June 2020.

Policy and Legal

Manufacturers Score SEC Victory in Proxy Firm Oversight

This week, the Securities and Exchange Commission (SEC) unveiled two rule proposals to provide oversight of proxy advisory firms and make targeted reforms to the shareholder proposal process. The National Association of Manufacturers has led the effort to bring these reforms to the proxy process, which are intended to make the proxy process more responsible to Main Street investors and more reflective of business realities.

Proxy advisory firms make voting recommendations to the asset managers who oversee Americans’ retirement savings. As a result, the firms have enormous influence over the policies of publicly traded companies, impacting the direction of businesses they have no stake in as well as the life savings of millions of Main Street investors. Unfortunately, a lack of oversight means proxy advisory firms often operate with undisclosed conflicts of interest and inadequate transparency, implement one-size-fits-all decision-making and make errors that impose significant costs and damaging policies on manufacturers and workers.

The SEC’s first proposed rule would institute reforms to the process by which proxy firms make recommendations and engage with issuers and investors, including requirements that the firms disclose their conflicts of interest and allow companies to highlight potential errors and misleading methodologies.

“This is a significant victory for manufacturers, workers and middle-class Americans across the country,” said Charles Crain, Director of Tax and Domestic Economic Policy at the National Association of Manufacturers. “Americans deserve a proxy process that protects their hard-earned money and sets up reasonable guardrails for the firms that impact their retirement savings, and that’s exactly what this rule proposes.”

A second SEC rule proposal would modify the submission and resubmission thresholds for placing shareholder proposals on companies’ proxy ballots, streamlining and depoliticizing the process in order to focus company management on the issues that impact investors’ long-term savings. Combined with the proxy firm proposal, these reforms represent the capstone of many years of advocacy and hard work from manufacturers across the country. Going forward, the SEC will hear public comments on both proposals as the agency works to finalize and implement the new rules.

“These rules will help ensure that proxy voting decisions are made in the best interests of Americans saving for a secure retirement and manufacturers planning for long-term growth,” said Crain. “At the NAM, we intend to keep working with the SEC to ensure that both proposals are finalized and implemented appropriately in the weeks and months ahead.”

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