Timmons on Bloomberg: Manufacturers Need Stability, Action on Permitting and Infrastructure

Manufacturers are optimistic about the future as they see an uptick in orders, but cost pressures and trade uncertainty remain—and Congress still has important work ahead on permitting reform and surface transportation reauthorization, NAM President and CEO Jay Timmons told Bloomberg’s “Balance of Power.”

The number: Bloomberg host Joe Mathieu asked Timmons what is driving manufacturers’ optimism, with nearly 79% of manufacturers reporting a positive outlook for their companies, according to the NAM’s latest Manufacturers’ Outlook Survey.

• “Manufacturers are seeing an uptick in orders, and so they’re looking ahead. They’re looking down the road,” Timmons told Mathieu. “They are very optimistic about the future.”

On China, stability matters: The interview fell on the heels of President Trump and Chinese President Xi Jinping’s meeting last week. Timmons emphasized the importance of stability out of the meeting.

• “We need some stability in these trade relationships,” Timmons said. “We’re going to have to do business with China. China is a huge part of the world economy.”
• Timmons emphasized that China has failed to keep its trade commitments in the past, saying, “When you’re looking back on whether they’ve kept their commitments, I think past is prologue. So let’s hope there’s a change.”

On USMCA: When it comes to the U.S.–Mexico–Canada Agreement, “we would need to see that resolidified or renegotiated or renewed, whatever term you want, because manufacturers did what we were asked in 2019. We moved production from Asia to the North American continent. It was really important to integrate our regional economy, and that was one of the best outcomes of the first Trump administration. We want to see that agreement continue for sure.”

Get permitting and infrastructure done: Timmons urged Congress to deliver comprehensive permitting reform and act on surface transportation reauthorization before current infrastructure funding expires in December.

• “We’ve seen some improvements in federal policy that has encouraged investment and job creation, but permitting is holding us back,” Timmons emphasized. “It costs manufacturers $8 billion a year for permitting delays. And kind of related to that, it costs $40 billion to manufacturers because of delays and tie-ups in our infrastructure system.”
• “Those infrastructure dollars that expire in December, that’s critical. Permitting reform is critical. I am really optimistic actually. I know that there may be a delay in the vote, but I know it can get over the line.”

The bipartisan case: Timmons also thanked Sens. Sheldon Whitehouse (D-RI), Shelley Moore Capito (R-WV), Martin Heinrich (D-NM) and Mike Lee (R-UT) for being “true champions” for manufacturers, saying, “I know that we’re going to get something through.”

• “Because when you think about this, this applies to all types of energy production. And those projects are important to both sides of the political aisle, especially in an environment where we have the uncertainty of the Middle East conflict and the Iran war driving up the price of energy here in the United States. So we need some relief. Consumers need relief. Manufacturers need relief. Permitting reform will help get that done.”

The bottom line: “Both political parties want to see manufacturing succeed,” Timmons concluded. “There are some nuances on how to get there, but we are working very closely with both parties to try to advance our priorities and make sure that the 13 million men and women … in the manufacturing workforce [benefit] from good policy that occurs in Congress and the agencies, regardless of who occupies Congress or the White House.”

NAM advocacy: The NAM has been leading the push for comprehensive permitting reform and a strong, long-term surface transportation reauthorization to help manufacturers build, invest and move goods efficiently through its “Building to Win” campaign.