General

Manufacturers agree that the U.S. should address the potential national security and privacy risks associated with connected vehicles—those that use technologies to communicate with each other and other systems. But “[n]ational security, privacy and economic strength can be pursued in conjunction with one another,” the NAM told the Commerce Department this week.
 
What’s going on: In September, the Commerce Department’s Bureau of Industry and Security proposed rules to ban connected vehicles that integrate information and communications technology from China and Russia (POLITICO).

• While manufacturers support safeguarding efforts, “[o]ur competitiveness also requires national security challenges to be addressed through proportionate actions … [that] do not unduly hinder” American manufacturing, NAM Managing Vice President of Policy Chris Netram told BIS on Monday.
• The rule’s software prohibitions would go into effect for vehicles model year 2027, while the hardware regulations would take effect for vehicles model year 2030. The NAM is asking BIS to discuss with stakeholders whether they need more time to comply, given the length of the automotive design and development cycles.

What it could do: If finalized, the rule would require automotive manufacturers using Chinese or Russian technology to find new suppliers.
 
The problem: “Automotive supply chains are highly complex, with [information and communications technology and services] embedded in the products of many sub-suppliers who sell to automotive original equipment manufacturers,” Netram continued.

• What’s more, information and communications technology and services “are foundational technologies across the manufacturing ecosystem and wider economy. As such, the rule in its current form could generate unintended consequences both within the automotive industry and across the broader ICTS supply chain, violating the department’s obligation to engage in reasoned decision making and avoid arbitrary and capricious rulemaking.”   

What should happen: The NAM urged BIS to take several actions, including the following:

• Clearer definitions: Certain wording in the rule should be rephrased for clarity, including “Person Owned by, Controlled by or Subject to the Jurisdiction or Direction of a Foreign Adversary” and “Connected Vehicle.”
• Covered software: “[T]he NAM urges BIS to consider revising the proposed rule to ensure it does not require visibility into and control over the software code provided by an OEM’s tier 3 suppliers and beyond.”
• Specific authorizations: “[T]he NAM recommends that BIS issue clear guidance about what criteria the Office of Information and Communications Technology would use to review and approve the risk assessments and the measures proposed by the applicant to mitigate the risks.”
• Attestations of compliance: Allow companies “to attest to their compliance” rather than “document and demonstrate compliance” to safeguard trade secrets.

The final say: With the NAM’s recommended changes, the BIS’s draft rulemaking “will support national security and privacy while ensuring that a vibrant manufacturing industry can continue to innovate and power growth in America for years to come,” Netram concluded.

Washington, D.C. – Following news that Boeing machinists voted against a new labor deal, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“The broader impact of this ongoing work stoppage is being seen across the aerospace sector as manufacturers within the supply chain are being forced to furlough employees and shutter operations. That’s why we’re urging union leadership to head back to the table and find a solution to end this prolonged strike and why we thank Acting Secretary of Labor Julie Su for her continued engagement. We’re looking at a cost of more than $3.7 billion to the regional economy after 45 days, according to NAM calculations. It is critical that an agreement be reached so we can protect Americans from the consequences of supply chain disruptions and strengthen the manufacturing industry. Preventing even greater damage to the broader economy means ensuring that Boeing is strong and operational.”

-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 $2.91 trillion to the U.S. economy annually and accounts for 53% 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, DC – Following the news of the passing of Thomas J. Donohue, former president and CEO of the U.S. Chamber of Commerce, National Association of Manufacturers President and CEO Jay Timmons released this statement:

“Tom Donohue did more than change this world for the better. He showed others how to do the same—how they too could make a difference with their lives and leadership. Today, there are millions of Americans who enjoy meaningful employment and economic security because of the work that Tom undertook, most notably during his storied leadership of the U.S. Chamber of Commerce.

“Tom could command the attention of presidents and prime ministers, of CEOs and media moguls. When he spoke, they listened. But it was his actions outside of the spotlight that revealed his true character. His compassion and his care for his fellow human—that’s what distinguished him. There are countless individuals who have benefitted from Tom’s empathy and instinctive desire to help. My family are among them; we have been recipients of his care and concern on more than one occasion. He lent a hand before you’d even have a chance to ask.

“Tom was also a mentor. As he did for other association executives finding their footing, he invited me to lunch when I began my role. We sat down, and he laid out a game plan. He did that for so many because he believed that the business community is strongest when we all are at our best.

“For anyone who wants to make an impact on the world, look to the example of Tom Donohue, whose trademark combination of dogged determination and quiet kindness made him an institution.

“Our deepest condolences go out to his companion, Margot Wilson, his three sons and their families and all who loved him.”

-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 $2.91 trillion to the U.S. economy annually and accounts for 53% 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

After days of disruption, and sustained advocacy by the NAM to keep manufacturers’ concerns at the forefront, the East Coast and Gulf Coast ports strike has ended, allowing for the resumption of normal operations crucial to manufacturers and the broader supply chain.

Background on the strike: The strike, which began earlier this week, had halted operations at key shipping terminals stretching from Boston to Houston, exacerbating the backlog at some of the busiest ports in the U.S. (Reuters , subscription). NAM data on the effects of a prolonged strike—including a hit to the U.S. GDP by as much as $5 billion a day—was cited widely by supporters of a compromise that would keep ports open as negotiations continued.

• The tentative agreement is for a wage hike of around 62% over six years, Reuters reports, with the current Master Contract extending until January to allow for ports to remain open as a final contract is negotiated.

Impacts on manufacturing: NAM members voiced deep concerns over shipment delays and the effects on production timelines. The strike impacted everything from raw materials to finished goods, underscoring the interconnectedness of the global supply chain and domestic manufacturing.

• “Manufacturers are encouraged that cooler heads have prevailed and the ports will reopen,” NAM President and CEO Jay Timmons said in a statement . “This decision avoids the need for government intervention and invoking the Taft-Hartley Act, and it is a victory for all parties involved—preserving jobs, safeguarding supply chains and preventing further economic disruptions.”

Resolution and next steps: The resolution came after intense negotiations facilitated by federal mediators, with both parties agreeing to resume operations while finalizing contract details. The NAM will monitor developments and remain engaged with policymakers to support stable labor conditions at key ports.

“Manufacturers depend on the stability of our ports to continue building, innovating, delivering products to American families and supporting communities across the country,” Timmons continued. “Another strike would jeopardize $2.1 billion in trade daily… We cannot afford that level of economic destruction.”

Industrial production rose 0.8% in August after falling 0.9% in July. The decline in July was influenced by shutdowns due to Hurricane Beryl. Manufacturing output increased 0.9%, in part, due to a recovery in motor vehicles and parts production, which jumped nearly 10% in August. Meanwhile, manufacturing output excluding motor vehicles and parts production increased 0.3%. At 103.1% of its 2017 average, total industrial production in August was unchanged from the same month last year. Capacity utilization moved up to 78%, 1.7 percentage points below its long-term average from 1972 to 2023.

In August, the majority of major market groups saw gains. The consumer goods index rose 0.7%, with a 10.5% increase in automotive products making up for its loss in the previous month. The materials index grew 0.9%, with gains in all its subcomponents. Defense and space equipment posted a modest increase of 0.5%. The business equipment index rose 1.4%, supported by a 6.6% gain in the transit equipment index.

Durable goods manufacturing increased 2.1%. Apart from the large rebound in motor vehicles and parts, there were gains in primary metals (up 3.2%), electrical equipment, appliances and components (up 2.0%) and aerospace and miscellaneous transportation equipment (up 1.2%). Nondurable goods manufacturing, on the other hand, decreased 0.2% in August, with the largest losses in petroleum and coal products (down 2.3%) and apparel and leather (down 1.6%).

Manufacturing capacity utilization increased 0.6% to 77.2%, which is 1.1 percentage points below the long-term average.

Washington, D.C. – The National Association of Manufacturers announced that Victoria Bloom, who was most recently the economist for the Senate Commerce, Science and Transportation Committee minority staff, joined the NAM and its 501(c)3 workforce development and education affiliate, the Manufacturing Institute, this summer.

“Manufacturing in the U.S. is a life-changing force for good, providing well-paying jobs and career opportunities and products that improve the quality of life for everyone,” said NAM President and CEO Jay Timmons. “Victoria will help us tell this story with compelling data, which will demonstrate the real impact of policy decisions and illustrate the modern manufacturing resurgence.”

“With Victoria joining the MI team as the head of research, we can look forward to augmenting the MI’s insights and tailored solutions to manufacturers’ hiring and retention challenges. Victoria will helm the development of a portfolio of studies, aimed at exploring our industry’s workforce and competitiveness obstacles and opportunities. Her work will be instrumental toward helping manufacturers build the next-generation workforce of today and tomorrow,” said MI President and Executive Director Carolyn Lee.

Bloom, who holds a bachelor’s degree in economics from Louisiana State University and a master’s degree from George Mason University, previously worked for Sen. David Perdue (R-GA) and Rep. Gary Palmer (R-AL), in addition to her work on the Senate Commerce Committee. As Senate Commerce Committee economist, she served as lead economic and budgetary adviser to Ranking Member Ted Cruz (R-TX) and the minority committee staff. 

Bloom will work closely with NAM leadership to design and execute original research, including the NAM’s quarterly Manufacturers’ Outlook Survey. She will provide NAM members, policymakers and media with the latest economic analysis on trends impacting the manufacturing industry and workforce, as well as the broader economy.

-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 $2.87 trillion to the U.S. economy annually and accounts for 53% 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 Annual Meeting of the Members of the National Association of Manufacturers will be held Wednesday, September 25, 2024. The only agenda item to be considered during the annual meeting of the members will be the election of the NAM Board of Directors slate for the 2025–2026 term.

The meeting will begin at 9:00 a.m. ET and will conclude by 9:05 a.m. ET during the NAM Fall Board of Directors meeting. It will be a hybrid meeting taking place via Zoom and in-person for those attending the Fall Board meeting at the Salamander Washington DC.

Members who wish to vote on the Board slate must participate in the meeting, but you may designate a proxy who is able to participate. Proxies must be duly authorized by completing and returning this proxy form. No individual may serve as proxy for more than one person and no NAM employee may serve as your proxy.

To register, please contact Anne Marie Alaska, Director, Board Initiatives at [email protected].

Texas Instruments and HP are the latest recipients of CHIPS and Science Act funds meant to boost domestic semiconductor manufacturing (Bloomberg and Reuters, subscription).

What’s going on: Texas Instruments will receive $1.6 billion in grants and $3 billion in loans under the 2022 legislation (Bloomberg), while HP will get $50 million in grants (Reuters), the Biden administration announced last month.

• All the awards are pending finalization, and amounts could still change following due diligence by the Commerce Department.

Where it will go: The money will go to different undertakings at each company.

• At Texas Instruments, it “will help pay for one factory in Utah and two in Texas—projects that will cost about $18 billion through 2029—the Commerce Department said in a statement. The effort is expected to generate around 2,000 manufacturing jobs and thousands more in construction,” according to Bloomberg.
• The funding proposed for HP will go toward “projects that build on HP’s expertise in microfluidics and microelectromechanical systems with funding set to support manufacturing of silicon devices critical in life sciences lab equipment used in drug discovery, single-cell research and cell line development,” Reuters reports.
• The HP work is expected to create nearly 150 construction jobs and more than 100 manufacturing positions (MarketWatch).

Why it’s important: Most of the funds from the CHIPS and Science Act “is slated to support production of cutting-edge chips by companies such as Intel Corp. … But the law set aside a minimum of $2 billion for less advanced semiconductors—sometimes called legacy chips—like those produced by Texas Instruments. … Legacy chips are essential to the global economy, powering everything from smartphones to refrigerators to weapons systems. And it’s an area where China is increasing its ambitions,” according to Bloomberg.

• The majority of the measure’s funding has now been announced through more than a dozen proposed awards. Announcements are set to be wrapped up by the end of 2024.

Manufacturers are deluged by data. As companies adopt more advanced technologies, they are increasingly overwhelmed by the quantities of raw data that must be collected, analyzed and put to use.

Indeed, a new survey from the Manufacturing Leadership Council—the NAM’s digital transformation arm—reveals that 70% of manufacturers still collect data manually. Here are some highlights from the survey, which reveals where manufacturers need to improve, and how they’re planning to do it.

Exponential data growth: While the survey’s respondents report an explosion of new data, they also expect to keep on top of it over the next few years.

• Forty-four percent of manufacturing leaders have seen at least a doubling of the amount of data they collect in their organization today compared to two years ago.
• While many manufacturers still lack standardized data due to operating a mix of older equipment and systems along with newer technologies, more than half expect that their data will be in a standardized format by 2030.

Analytical improvements: How are manufacturers planning to use all this new data?

• Nearly 60% of respondents say they are focused on understanding their operations with an eye toward optimizing them in the future.
• While 30% of manufacturers say they are using manufacturing data to predict operational performance, another 60% say that predictivity will be a primary objective by 2030.

Better decisions: Manufacturers use data to make better, more proactive decisions, according to the survey. Today, these decisions are made at a relatively high level.

• Seventy-seven percent of respondents said that the responsibility to employ data in decision-making falls to plant leaders and managers.
• Only 33% said that factory floor employees held that responsibility—a percentage that might grow as manufacturers seek to empower frontline employees with greater decision-making ability.

Looking ahead: As artificial intelligence and other emerging digital technologies become more established, they will likely reshape many if not all aspects of manufacturing operations.

• Thanks to advanced sensors and robust data networks connecting equipment and machinery, manufacturers will collect copious data in real time and act on it almost as swiftly.

Read more: To get a deeper look at the current state of data mastery in manufacturing, download the full survey, Data Mastery: A Key to Industrial Competitiveness.

Washington, D.C. – Following the announcement that Vice President Kamala Harris and Minnesota Gov. Tim Walz will be the Democratic nominees for president and vice president, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“When manufacturing is strong, America is strong. We are the industry that strives every day to strengthen communities and unlock opportunity across this country. So the NAM is committed to engaging with the Harris–Walz campaign to hear their economic vision, find common ground and educate the candidates on the policies needed to advance a manufacturing competitiveness agenda—as we will with federal candidates and campaigns at all levels. We are counting on the next administration to champion the 13 million people who make their living in modern manufacturing.

“As a former teacher, Gov. Walz understands the importance of ensuring the next generation has the skills needed for promising careers in modern manufacturing. As a governor, he has been a champion of high-tech manufacturing across the North Star State and helped spur growth in the semiconductor industry following the passage of the CHIPS and Science Act. To drive growth across the United States, we must continue to push bipartisan policy like this and the Bipartisan Infrastructure Law achieved under the Biden–Harris administration.

“But even as we continue creating jobs in manufacturing, our economy faces strong headwinds, including a growing slate of unbalanced federal regulations and a looming wave of tax increases in 2025 that will significantly and negatively impede the ability of manufacturers to continue to invest, grow jobs and raise wages. The next administration must be a constant partner for manufacturers, spearheading legislation and policies that help businesses create jobs, invest in their communities and improve the quality of life for everyone.”

-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 $2.87 trillion to the U.S. economy annually and accounts for 53% 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.