Washington, D.C. – The leading organizations representing manufacturers and millions of manufacturing workers in the United States, Mexico and Canada released the following statement on the two-year anniversary of the United States–Mexico–Canada Agreement (USMCA/T-MEC/CUSMA):
“On this two-year anniversary, we recognize the substantial value that this agreement and the North American Free Trade Agreement have represented for our industry’s competitiveness, our economies and North American workers. Manufacturing is critical for the entire North American economy. Our closely integrated supply chains contribute more than $3 trillion annually to the North American economy, and more than $2 billion worth of manufactured goods cross our borders each day.
“The USMCA can only reach its full potential if it is fully implemented in a manner that upholds its letter and spirit. That is why manufacturers across North America continue to strongly and respectfully urge political leaders to work together to live up to the commitments of the agreement, which garnered broad support in all three countries. Full compliance with the agreement will provide certainty for the more than 23 million manufacturing workers in the United States, Mexico and Canada and boost our region’s ability to compete with the rest of the world.
“The Canadian Manufacturers & Exporters (CME), the Confederation of Industrial Chambers of Mexico (CONCAMIN) and the National Association of Manufacturers (NAM) reiterate our longstanding commitment to engage with the Canadian, Mexican and U.S. governments to ensure that the USMCA/T-MEC/CUSMA is fully implemented and that it supports our industry’s competitiveness and our workers at this critical time for our economies.”
Background: Earlier this week NAM President and CEO Jay Timmons wrote to President Biden about certain challenges in U.S.-Mexico trade relations.
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.
Canadian Manufacturers & Exporters (CME) is Canada’s largest trade and industry association, and the voice of manufacturing and global business in Canada. CME directly represents more than 10,000 leading companies nationwide. As Canada’s leading business network, CME – through various initiatives, including the establishment of the Canadian Manufacturing Coalition – touches more than 100,000 companies from coast to coast, engaged in manufacturing, global business, and service-related industries.
The Confederation of Industrial Chambers of the United Mexican States, CONCAMIN, established in 1918, is the main organization representing the different industrial sectors and activities of high importance for the economic development of Mexico. The National Confederation of Industrial Chambers, is by law a mandatory consultative body of the State since its creation 104 years ago, it represents 118 Chambers and Associations.
It generates 48 out of every 100 formal jobs in the country. Through 1.2 million Economic Units, we contribute 40% of the GDP and 90% of the country’s exports.
Washington, D.C. – Following the Supreme Court’s 6–3 decision in West Virginia vs. EPA, National Association of Manufacturers President and CEO Jay Timmons released the following statement:
“Manufacturers share a deep commitment to protecting our planet and our people, and manufacturing innovation holds the key to solving the generational challenge of climate change. The court’s decision affirms the Environmental Protection Agency’s authority to issue appropriate greenhouse gas regulations while providing a reminder that the agency must stay within the guardrails delegated by Congress. As some of the largest electricity consumers and as electricity generators, manufacturers are ready to work with the EPA to deliver innovative and balanced solutions that protect our environment and our competitiveness as it considers next steps.”
Background: Earlier this week, the NAM along with 42 state partners sent President Biden a letter highlighting the importance of affordable, reliable electricity for manufacturers to remain competitive. It signals manufacturers’ eagerness to work with policymakers on the important decisions and planning surrounding the future of the electrical grid and broader energy policy.
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
Washington, D.C. – As negotiations between the Pacific Maritime Association and International Longshore and Warehouse Union near a critical deadline, manufacturers are sounding the alarm about potential economic consequences of a port stoppage if disruption were to occur over two weeks at the ports of Los Angeles and Long Beach, the nation’s largest port complex. According to a study by Inforum Economics, a 15-day disruption would cost the U.S. economy nearly half a billion dollars a day—for a total of $7.5 billion—and destroy 41,000 jobs, including more than 6,100 in manufacturing.
As the industry continues to grapple with historic supply chain challenges, inflationary pressures and rising transportation and energy costs, manufacturers are calling on the parties to reach an agreement immediately to avoid this continued uncertainty.
“The ports of Los Angeles and Long Beach support a major share of cargo relied upon by American businesses and consumers, supporting supply chains across the entire country. With supply chains already stretched thin, inflation at its highest level in four decades and concerns of a recession rising, any disruption would mean a devastating hit to our economy and to manufacturers’ competitiveness,” said National Association of Manufacturers President and CEO Jay Timmons. “The disruption would be felt immediately. Manufacturing jobs will be lost if parts and supplies don’t arrive. New equipment, machinery and products can’t be built when ships are backed up and there is no one available to unload and process cargo. Our overseas customers won’t wait for us to fix these disruptions, either—they’ll simply find other suppliers, weakening U.S. manufacturing competitiveness in the process.
“This is why the Pacific Maritime Association and the International Longshore and Warehouse Union must not allow a disruption at these ports. Manufacturers, our millions of employees and the countless others whose lives and livelihoods depend on the products we make are counting on the PMA and the ILWU to reach a resolution and keep the ports running.”
Background: At the time of publication, the PMA and ILWU are engaged in labor negotiations. The NAM commissioned an analysis using the Inforum LIFT economic model to quantify the impacts of a 15-day closure at the Los Angeles and Long Beach ports. Specifically, it estimates how such a closure would impact U.S. employment, output and income. These ports have experienced historic disruptions and bottlenecks since late 2020, and nearly 84% of manufacturers now list freight and transportation costs as a key driver of inflation.
Washington, D.C. – Amid historic supply chain challenges and inflationary pressures, along with increasing energy costs, the National Association of Manufacturers is launching a six-figure ad campaign calling on Congress to protect manufacturing jobs by opposing new taxes on the industry, including those meant to punish the very energy manufacturers that are being asked to produce more. The print, radio and digital ads will run in Washington, D.C., and in key states across the country.
“Manufacturers have kept our promises—especially after the 2017 tax reforms—to create jobs, raise wages and benefits and invest in our communities. To keep up this winning record, we need Congress to enact policies consistent with our manufacturing competitiveness agenda. That’s how we’ll strengthen supply chains, expand access to affordable, reliable energy and tamp down inflation. Our industry is ready to keep solving problems and create well-paying jobs—but returning to outdated tax policies will impede our progress,” said NAM President and CEO Jay Timmons.
Background on manufacturing growth following the enactment of tax reform in 2017:
- In 2018, manufacturers added 260,000 new jobs. That was the best year for job creation in manufacturing in 21 years.
- In 2018, manufacturing wages increased 3.1% and continued going up—by 2.9% in 2019 and 3.0% in 2020. Those were the fastest rates of annual growth since 2003.
- Manufacturing capital spending grew 4.5% and 5.7% in 2018 and 2019, respectively.
- Overall, manufacturing production grew 3.2% in 2018, the best since 2010.
The NAM has published research on the impact of rolling back tax reform (study available here and click here for a summary of the study’s findings) and increasing the U.S. Global Intangible Low-Taxed Income (GILTI) tax burden (study available here).
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.”
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.”
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.”
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.”
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.”
- 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.
Washington, D.C. – Following the release of an analysis on the damaging effects of a proposed interest expense limitation under consideration by Congress, National Association of Manufacturers Managing Vice President of Tax and Domestic Economic Policy Chris Netram released the following statement.
“Manufacturers are already facing incredible economic headwinds due to increased input costs, labor shortages and strong inflationary pressures. This analysis shows that limiting tax deductions for interest on business loans disproportionately harm manufacturers at a perilous time—costing hundreds of thousands of jobs and billions of dollars in economic growth at a time when our industry is trying to drive our nation’s recovery.
“When Congress passed the Tax Cuts and Jobs Act, manufacturers raised wages, invested in U.S. operations and spurred growth. Congress should be considering proposals that double down on the TCJA’s winning record rather than considering tax increases that will sabotage our recovery.”
The analysis was prepared by EY’s Quantitative Economics and Statistics group.
The EBIT-based 163(j) and proposed163(n) interest expense limitations before market adjustments would cost:
- 623,000 Jobs
- $31.6 Billion in Employee Compensation Annually
- $60.1 billion in GDP Annually