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It was an internship in modern manufacturing that changed Bobi Simonsen’s view of the industry—and gave her a sense of how many different kinds of opportunities were available.

“I remember school projects where I would just picture an engineer with a hard hat doing calculations,” said Simonsen. “I didn’t realize how much creativity and collaboration is involved in engineering. There is way more complexity than I had ever realized.”

A new path: Shortly after that internship, Simonsen got connected with ExxonMobil through the University of Texas—and she hasn’t looked back since.

• Today, she’s a technical supervisor at the largest polyethylene site in the world, leading teams of engineers, chemists and technicians who perform experimental commercial-scale trials and improvement projects on the tough synthetic resin used in bags, containers and other packaging.

A sense of purpose: Simonsen is particularly interested in opportunities to support sustainability and sees manufacturing as the perfect place to make an impact.

• “I know young people are really passionate about sustainability, making a difference and having a purpose, and all of those are things you can do in manufacturing, especially at a place like ExxonMobil,” said Simonsen. “We are global, we are integrated and we have the resources and scale to impact an entire industry. That’s the reason I came to work here.”

A push for parity: Simonsen also sees how the lack of women in science, technology, engineering and math feeds into a shortage of women in manufacturing, and she’s eager to see more young women find their way into the field.

• That’s why she leads industry meet-and-greet events on behalf of ExxonMobil at the University of Texas, volunteers at “Introduce a Girl to Engineering Day” events for K-12 students in Austin and Houston and hosts lunch-and-learn sessions with UT’s Society of Women Engineers and the American Institute of Chemical Engineers.
• She also leads ExxonMobil’s SWE conference team, who recruit, share sessions and lead “Invent It Build It” outreach activities through SWE.
• “We do a good job of recruiting candidates who reflect the diversity of the pipeline; my classes in college were 30% women, and that’s translating to the same 30% who make their way into ExxonMobil manufacturing,” said Simonsen. “But that’s not 50%, which is why it’s vital to engage women and minorities to get interested in STEM so we can bring them into classes and then the workforce as they graduate.”

New visibility: Recently, Simonsen was named an Emerging Leader in Manufacturing by the 2024 Women MAKE Awards, a distinction for a select few women under the age of 30 who have achieved rare accomplishments at the start of their careers in manufacturing. 

Advice for women: While most workers in the industry are still men, Simonsen encourages women to consider the broad range of opportunities available in manufacturing.

• “I would say, ‘Try it,’” said Simonsen. “Consider trying it, even for a short period like an internship. Because if you step in, and you like it, you can find yourself working on the biggest challenges in the world.”

Earlier this year, the House passed the Tax Relief for American Families and Workers Act, and the bill is now with the Senate to consider. NAM Vice President of Domestic Policy Charles Crain discusses what’s included in the bill, why the provisions matter to small and medium-sized manufacturers, other tax policies the NAM is focusing its advocacy efforts on and how SMMs can get involved. 

Q: There is a major tax package moving through Congress. Can you explain what is included in the legislation?

Crain: “The Tax Relief for American Families and Workers Act includes three of the NAM’s top tax priorities: the ability to immediately deduct domestic R&D expenses, enhanced interest deductibility on business loans and the ability to fully deduct the cost of capital investments in the year acquired (full expensing). All three of these provisions were implemented by the 2017 Tax Cuts and Jobs Act.”

Q: What exactly are these provisions and why do they matter to SMMs?

Crain: R&D – “For almost 70 years, the U.S. tax code allowed businesses to fully deduct their R&D expenses in the same year they were incurred. But starting in 2022, businesses were required to deduct those expenses over a period of years, making it more costly to conduct R&D in the U.S.” 

Interest Deductibility – “Many manufacturers need to borrow funds to finance long-term investments in equipment and facilities. The interest that businesses pay on these loans is generally tax deductible, subject to a cap. Prior to 2022, the cap was based on a company’s earnings before interest, tax, depreciation and amortization (EBITDA); now, it’s based on a company’s earnings before interest and tax (EBIT). Lowering the cap limits the amount of interest that companies can deduct—effectively imposing a tax hike on manufacturers that finance job-creating capital projects.”

Full Expensing – “Manufacturing is a capital-intensive industry. The TCJA allowed companies to immediately deduct 100% of the cost of equipment and machinery in the year purchased—called ‘full expensing.’ But full expensing began to phase out in 2023; it’s currently down to 60% and will be completely eliminated by 2027. That significantly increases the after-tax cost of capital equipment purchases.”

Q: Why is it important for Congress to restore these tax provisions for SMMs?

Crain: “These are provisions that manufacturers, especially SMMs, use to grow their businesses and compete globally. The tax code must be fair and consistent. The first step is addressing these crucial issues.”

Q: What other tax policies is the NAM focusing its advocacy efforts on?

Crain: “We are in the middle of a three-part story. If the TCJA was the first part of the trilogy, the second act is the Tax Relief for American Families and Workers Act—and the grand finale will come in 2025, when many other TCJA provisions expire. Changes that will impact SMMs at the end of 2025 include the expiration of the 20% pass-through deduction, increases in individual income tax rates and a reduction of the estate tax exemption threshold. Without congressional action, this would affect the laws in effect for tax year 2026 and beyond. For SMMs organized as corporations, the corporate tax rate could also be at risk. The NAM is already pushing back, and we know manufacturers are ready to pull out all the stops to prevent them from taking effect in 2026.”

Q: Where can SMMs find more information, and how can they get involved?

Crain: “The NAM has created online action centers for R&D, interest deductibility and full expensing with information on why these issues remain important. NAM members are encouraged to check out these action centers for tools and resources they can use to contact lawmakers on these issues. They need to hear from you! You can also reach out directly to NAM Senior Director of Tax Policy Alex Monié.”

Q: What else do SMMs need to know?

Crain: “There is an old saying in D.C.: ‘Tax bills are hard.’ We have gotten the Tax Relief for American Families and Workers Act through the House, but more work needs to be done in the Senate. And the next 20 months will be an all-out sprint to prevent damaging tax increases from taking effect at the end of 2025. The NAM was successful with the TCJA in 2017—and, I believe, will be successful both this year and next—thanks to our members. Your stories are absolutely crucial to showing that manufacturers kept our promises following tax reform’s passage—and illustrating the economic damage that will happen if R&D expensing, interest deductibility and full expensing aren’t revived this year, or if tax increases are allowed to hit SMMs in 2026. Please reach out to your membership adviser, or to Alex, to share any stories, feedback or ideas as we continue to advocate for pro-growth tax policies for manufacturers in America.”

The U.S. will award Intel up to $8.5 billion in grants and as much as $11 billion in loans to expand chipmaking capacity and capabilities in four states, The Wall Street Journal (subscription) reports.

What’s going on: The funds, set aside under the NAM-backed 2022 CHIPS and Science Act to bolster domestic semiconductor production, “will go toward new factories and expansion projects in Arizona, New Mexico, Ohio and Oregon, the Commerce Department said.”

• Spurred by the federal funding, “Intel’s total investment in U.S. projects in the next five years is expected to exceed $100 billion,” according to the Journal, and to create more than 10,000 manufacturing jobs and about 20,000 construction jobs, according to the Commerce Department.

Largest award: The grant to Intel, the largest American chipmaker by revenue, is also the largest CHIPS Act award. It follows a February announcement of a $1.5 billion award to GlobalFoundries Inc.

• The award will support the reshoring of production of leading-edge logic chips, which are “essential to the world’s most advanced technologies like artificial intelligence,” the Commerce Department said.
• President Biden was in Chandler, Arizona, Wednesday to visit Intel’s Ocotillo chip-manufacturing campus.

Why it’s important: “We can’t just design chips; we have to make them in America,” Commerce Secretary Gina Raimondo told reporters on Tuesday, the Journal reports. “It’s an economic security problem. It’s a national security problem. And we’re going to change that.”

How it will work: The funding will be doled out in stages, “according to construction and manufacturing milestones,” the Journal said.

• “In Chandler, Arizona, the money will help to build two new chip plants and modernize an existing one,” CBS News reports. “The funding will establish two advanced plants in New Albany, Ohio, [and] … [t]he company will also turn two of its plants in Rio Rancho, New Mexico, into advanced packaging facilities. And Intel will also modernize facilities in Hillsboro, Oregon.”

The NAM weighs in: Wednesday’s “record, multibillion-dollar award is great news for [Intel] and U.S. manufacturing competitiveness,” the NAM wrote in a social post. “The NAM was a vocal supporter of the CHIPS and Science Act, and we will continue to champion policies that support the expansion of chip production in America.”

Gilster-Mary Lee Corporation has discovered a way to interest students in manufacturing: through their stomachs.

With support from the Illinois Manufacturers’ Association, the Chester, Illinois–based private-label food manufacturer recently chose the winner of its second annual “Create A Crunch” cereal-design contest for local high schoolers.

• “It’s critically important for our nation’s future that we attract the next generation of creators and makers, dreamers and doers who want to make our world a better place to live,” said IMA President and CEO Mark Denzler. “‘Create A Crunch’ is a fun and innovative way to encourage kids to explore all facets of manufacturing.”

A winner of an idea: The contest, which each year poses an essay-writing question on a manufacturing-related topic, came about when Gilster-Mary Lee was brainstorming ways to participate in National Manufacturing Month, which is October.

• “We were looking for a way to participate that would be meaningful and get kids—students—excited” about manufacturing, said President and CEO Tom Welge, a direct descendant of the company’s founding Gilster family, which started the firm in the late 19th century as the Gilster Milling Company.
• “We’d done a lot of celebrity cereals [such as a recent one featuring college basketball star Caitlin Clark], and they’re really popular. So I thought, why not involve students in the creation of a product and turn it into a way to educate them about manufacturing, maybe focusing on a particular topic in the industry we believe is important?”

An educational opportunity: “Create A Crunch” was born and is already off to a roaring start. In 2022, the contest garnered more than 300 entries from students throughout Illinois and Missouri. In 2023, it received more than 400.

• In addition to getting to choose the type of cereal, name and box design for their limited-run branded breakfast food, each year’s winner gets 2,500 boxes for their school, which “they can sell in a fundraiser, donate, whatever they want,” Welge said.
• The most recent winner, a senior at Notre Dame Regional High School in Cape Girardeau, Missouri, chose a blue, fruit-flavored ring-shaped cereal, which will be called “Bulldog Bites” in honor of her school’s mascot. The cereal boxes are slated for delivery in April.
• The 2023 writing prompt: What are the best things artificial intelligence can do for manufacturing, and do you think there are any things we should be concerned about?

Tough choices: Once the entry deadline has passed, a panel from Gilster-Mary Lee reads and rates every submission, then develops a short list of finalists. It sends these 10 names to the IMA for winner selection.

• The IMA has a difficult task before it in choosing the best submission, Welge added.
• “It’s not easy, but an understanding of the question is key, as is originality,” Welge continued. “The best essays [are] the ones that do the research and really put some thought behind it.”

More than a contest: Gilster-Mary Lee and the IMA are hoping that thought will transcend the contest and translate to participation in the manufacturing industry, which is in serious need of talent nationwide.

• In Illinois, the industry employs more than 650,000 people, Denzler said, making it “the single largest share of our economy.”

Perception change: “Create A Crunch” seems to be opening kids’ eyes to modern manufacturing, Welge said.

• “I think we have more visibility [now] into what we do,” he told us. “We produce for wholesalers across the U.S. and outside as well. So this is a way for us to pull back the curtain a bit and let people know there’s pretty big-sized manufacturer in this rural area, and we’re looking for talent.”

Up next: The contest may have started with cereal, but don’t be surprised if other foods come into play, said Welge, whose company also makes pancake mix, macaroni and cheese and many other convenience foods.

• “Should we do ‘Make A Mac’ next year? We’re not ruling anything out.”

Americans overwhelmingly support exporting U.S. natural gas, a new NAM poll reveals.

What’s going on: In addition to wanting continued exports of LNG, respondents believe the U.S. must boost its production of oil and natural gas, build more energy infrastructure and reform the broken permitting system, according to the findings of an NAM survey of 1,000 registered voters conducted March 15–18.

• In January, the Biden administration announced a moratorium on LNG export permits.
• Europe is the primary destination of exported U.S. LNG.

The details: Among the survey’s key findings:

• Some 87% believe the U.S. should continue exporting natural gas.
• About 86% say the permitting system must be changed so energy projects are approved and online in less time.
• Approximately 76% say the U.S. needs more energy infrastructure, such as port terminals.
• About 74% say the U.S. needs to increase domestic oil and natural gas production.
• And 72% would like to see the U.S. use an all-of-the-above energy approach that includes both traditional and renewable energy sources.

The last word: “The American public agrees: LNG exports are critical to U.S. energy security, creating well-paying jobs and supporting our allies in Europe and Asia,” said NAM President and CEO Jay Timmons.

• “This poll underscores the need for President Biden to immediately direct the Department of Energy to roll back this misguided and counterproductive policy.”

Manufacturers are committed to providing employer-sponsored health insurance to their workers, the NAM told Congress late last week—and that’s why any changes made to the Employee Retirement Income Security Act of 1974 should facilitate rather than hamper those offerings.

What’s going on: “ERISA underpins manufacturers’ ability to provide health insurance to their employees,” NAM Vice President of Domestic Policy Charles Crain said in response to a call by the House Committee on Education and the Workforce majority for comments on how to improve ERISA as the law’s 50th anniversary nears.

• “The law allows manufacturers to provide uniform benefits to workers located across multiple states, and to tailor those benefits to meet the unique needs of their workforces.”

​​​​​​​Why it’s important: Manufacturers have continued to offer high-quality health care plans to their employees—even absorbing cost increases in recent years to keep premiums affordable—but they “increasingly find their efforts to be responsible stewards of their health plans undermined by the complexities, bureaucracy and ineffective design of the broader health care system,” Crain told the committee.

What should be done: It is ERISA’s federal preemption of state and local laws that allows manufacturers to offer uniform health benefits, Crain continued, and that preemption must be preserved.

• “Eroding or eliminating preemption would make it significantly more difficult for manufacturers operating in multiple states to offer their employees health insurance because the manufacturer would be forced to comply with cumbersome and potentially conflicting state-based rules, a costly and untenable situation,” he said.
• In addition to maintaining ERISA preemption, Congress should seek to “make health care data more accessible and user-friendly for employer plan sponsors,” and reduce regulatory burdens on employers.
• Given that pharmacy benefit managers contribute to the increasing costs of providing employer-sponsored health care, the NAM also continues to call for PBM reform to increase transparency into these underregulated actors.

In 2024, factories will just keep getting smarter. From product design to supply chain management, the sophistication of Manufacturing 4.0 (the current wave of technological evolution) will keep on growing. Here’s what manufacturers should know about these advances and how the NAM can help.

What manufacturers should do: Manufacturers looking to make their factories smarter are focusing on four key strategies:

• Creating efficiencies to improve the bottom line with automation and other M4.0 technologies
• Leveraging smart factories to overcome challenges, such as the workforce crisis and supply disruptions
• Ensuring connectivity on the factory floor to allow for use of plant data to create new business models and revenue streams
• Using M4.0 technologies to improve quality control, speed time to market, enhance safety, boost profits, contribute to sustainability goals and engage employees

Expert opinion: Companies are increasingly investing in industrial connectivity, according to PTC Vice President of Market Development of IoT James Zhang.

• “Rather than approaching industrial connectivity with point-to-point integrations, companies are developing holistic, enterprise-wide strategies,” he explained.
• “This approach streamlines and standardizes data from heterogenous manufacturing environments to a single industrial connectivity platform to provide secure, reliable data for OT systems, including MES and SCADA, and IT systems, including data analytics and industrial IoT.”

Resources for you: Check out these NAM resources that will help guide you through these technological changes:

• The Manufacturing Leadership Council, the NAM’s digital transformation division, offers extensive advice and expertise on Manufacturing 4.0 technologies and how to use them.
• NAM Cyber Cover can help you protect your smart factories, as the increase in digitization also opens new avenues for cyber criminals.
• Check out this podcast from the Innovation Research Interchange (the NAM’s innovation division), which covers current research into the adoption of cutting-edge technologies.

Read the full 2024 trends report here.

Pharmacy benefit managers—entities that increase health care costs for both manufacturers and manufacturing workers—are long overdue for reform, the NAM said yesterday.

What’s going on: Senate Finance Committee Chairman Ron Wyden (D-OR) and Ranking Member Mike Crapo (R-ID) announced at a Thursday press conference that they will ask Senate leadership to include in a government funding bill at the end of March legislation to rein in PBMs.

• The NAM, which has been vocal for years about the need for PBM reform , immediately joined the senators’ call for action.
• “Manufacturers stand with Chairman Wyden and Ranking Member Crapo in their calls for PBM reform as soon as possible,” said NAM Managing Vice President of Policy Chris Netram. “Manufacturers are committed to providing health benefits—with 93% of manufacturing workers eligible for employer-sponsored health insurance—even as PBMs continue to drive an increase in health care costs.”

Why it’s important: PBMs make health care more expensive for manufacturers and manufacturing workers by putting upward pressure on the list prices of medicines. Additionally, the three largest PBMs control 80% of the market, giving them tremendous leverage when negotiating contracts with manufacturing employers.

• What’s more, they operate with very little federal oversight and offer minimal transparency into their business models.

What should be done: An overhaul of the PBM framework should include solutions that effectively address rebate, fee and contract structures.

• “PBM reform, including in the commercial health insurance market, must increase transparency, ensure PBMs do not pocket manufacturer rebates and delink PBM compensation from the list price of medications,” said Netram.

If manufacturing is a team sport, the rules of the game are the U.S. tax code—and to ensure a level playing field for everyone, that code must remain constant, Ketchie President and Owner and NAM Small and Medium Manufacturers Group Chair Courtney Silver told the Senate Finance Committee Tuesday.

The main way to do it, she said, is by restoring three key tax policies: immediate expensing for domestic R&D, enhanced interest deductibility and full expensing.

What’s going on: Thanks to the 2017 Tax Cuts and Jobs Act, Silver’s family-owned, North Carolina–based precision machining company and many other manufacturers were able to grow their companies, invest in workers and give back to their communities, Silver said in testimony during the “American Made: Growing U.S. Manufacturing Through the Tax Code” hearing.

• But two years ago, “the rules of the game began to change, making it more difficult for manufacturers to thrive in America,” she went on. “Crucial policies began to expire.”

Why it’s important: If Congress does not act soon, additional pro-growth tax cuts will expire, further harming manufacturing in the U.S.

• And “more tax increases are on the way,” Silver told committee members, referring to the additional TCJA provisions scheduled to expire next year. “Other critical provisions expire at the end of 2025, which will have a direct impact on the manufacturing sector. Ketchie will be directly harmed by the loss of the pass-through deduction, the increases in our tax rates and the reduced protection from the estate tax.” 

Unstoppable combination: The 2017 tax reforms, “paired with pro-growth policies like immediate expensing of capital investments, drove historic growth in the manufacturing sector,” Senate Finance Committee Ranking Member Mike Crapo (R-ID) said during the hearing, citing NAM data on the significant, positive impact of the cuts.

• Indeed, “Ketchie might not be here today if we did not have the economic boom caused by tax reform in the years prior to the pandemic,” said Silver, who called immediate expensing for domestic R&D expensing, enhanced interest deductibility and full expensing “a game-changer for the manufacturing industry.” 

Team players: Congress must restore these three provisions and other critical provisions that are set to expire next year.

• “Manufacturing truly is a team sport, and you are all on that team,” Silver told the committee. “Small companies like mine are counting on you to play with us rather than against us, and to ensure that our tax code does the same.”
• The NAM has called on the Senate to advance the House-passed Tax Relief for American Families and Workers Act, which would restore the three key tax policies.

The NAM was host to multiple representatives and dignitaries from Germany and Mexico last week for a series of meetings aimed at strengthening the ties between the two countries and the U.S.

What’s going on: On different days last week, the NAM met with German Ambassador to the U.S. Andreas Michaelis; the leadership of the Mexican Business Coordinating Council; the presidents of the Federation of German Industries and the Germany-based Mechanical Engineering Industry Association; and a delegation from the Germany-based Transatlantic Business Initiative.

• A discussion common to all the gatherings: improving international cooperation to support closer economic partnerships between our countries.

The U.S.–Europe relationship: In a meeting with Michaelis, Germany’s ambassador to the U.S. since August 2023, the NAM expressed the importance of a continued, positive economic relationship between the U.S. and Europe—especially now, given Russia’s continued war against Ukraine.

• “Great to meet with German Ambassador to the U.S. Andreas Michaelis to discuss the importance of strengthening our economic ties and our shared democratic values,” NAM President and CEO Jay Timmons wrote in a social post.
• Germany, the fourth-largest economy in the world, is a vital U.S. trade and investment partner. In 2022, it contributed $196 billion of manufacturing trade and $218 billion of manufacturing investment.

Challenges remain: However, some proposed and expected European Union regulations present a hurdle to future collaboration, a matter the NAM raised in its meetings.

A key partner: In their discussion with Mexican Business Coordinating Council President Francisco Cervantes—with whom Timmons met last summer ahead of the third United States–Mexico–Canada Agreement “Free Trade Commission” in Cancun, Mexico—NAM leaders underscored the significance of the increasingly close trade ties between the U.S. and Mexico.

• In 2023, for the first time in two decades, Mexico became the leading source of goods imported into the U.S., and in 2022, the value of the U.S. products and services trade with Mexico was $855 billion.
• The CCE is Mexico’s broadest business federation.

Concerning disruptions: Last year, in a move that worried both the NAM and the CCE, the U.S. twice suspended the processing of commercial imports from Mexico so it could redirect U.S. Customs and Border Protection personnel to handle an influx of migrants at the U.S.–Mexico border.

• These temporary closures cost manufacturers in the U.S. hundreds of millions of dollars each day. 

USMCA: The groups also discussed the USMCA, underscoring the importance of maintaining this critical agreement while also continuing to spotlight commercial challenges in Mexico:

• Its energy policies, which favor Mexican energy firms and have denied and revoked permits to major U.S. energy investors
• Its de facto ban on genetically modified corn, as well as some of its telecommunications-sector policies and its treatment of state-owned enterprises