General

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.”

Key Findings:

• 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.

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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.

As the Securities and Exchange Commission considers a prescriptive rule that imposes significant and burdensome climate-related disclosure obligations on public companies, the NAM is pushing back. It is fighting for critical changes that will support manufacturers’ leadership on climate change.

The background: Manufacturers have long been leaders on climate solutions, working to create the technologies and processes needed to combat climate change while also providing material information about their climate-related efforts to investors.

• But a recent rule proposed by the SEC would mandate that companies, large and small, report reams of complex climate-related information, even when that information may not have any impact on their financial performance or operations. 

The rule: The proposed rule, which the SEC released in March, would require qualitative descriptions of companies’ climate-related risks and strategies as well as quantitative reporting of their greenhouse gas emissions and any climate-related impacts on their financial statements.

• The result would be an unworkable framework that does not align with current practices—imposing an enormous burden on manufacturers across the country.
• Additional information can be found about the rule here and about the NAM’s engagement with the SEC on climate disclosures here.

The response: The NAM has laid out a series of necessary changes that the SEC must make to reduce the compliance costs and liability risks associated with the rule’s requirements. Our recommendations will align the rule more closely with current climate reporting practices—decreasing burdens on public companies and increasing information utility for investors. Specifically, the NAM is calling on the SEC to:

• Delay annual GHG emissions reporting, granting manufacturers time to collect and verify data for a midyear report (rather than the proposed February deadline).
• Strike disclosure of Scope 3 emissions, which requires tracking emissions data through the supply chain. While some manufacturers are already working to understand these emissions, the data collection, estimation and reporting methodologies are still evolving. At a minimum, the SEC should provide more flexibility for companies subject to the Scope 3 requirement.
• Rescind accounting changes that would require climate impact analyses of companies’ consolidated financial statements on a line-by-line basis.
• Adjust the climate-related risk disclosures and Scope 1 and Scope 2 emissions reporting requirements to make the provisions less prescriptive and more aligned with existing company practices.
• Fine-tune the guidelines for reporting on climate-related goals to avoid penalizing companies that set ambitious targets.
• Remove requirements that companies disclose competitively sensitive information about the internal tools they use to understand and plan for climate risks, scenarios and activities.

The last word: “The SEC’s climate rule as written would be harmful for both large and small manufacturers and unhelpful for investors,” said NAM Senior Director of Tax and Domestic Economic Policy Charles Crain. “The NAM is committed to supporting our members in their efforts to combat climate change and inform investors about this critical work, and the recommendations we’ve offered present an important step toward that goal.”

Policymakers can help alleviate the pain Americans are feeling at the pump and elsewhere—but by increasing domestic energy production, not through ill-conceived legislation, the NAM told U.S. House leadership this week.

Missing the mark: On Thursday, the House narrowly approved a measure that “gives the President the power to issue a declaration making it unlawful for energy companies to increase prices that are ‘unconsciously excessive,’ and authorizes the FTC to enforce those violating the act,” according to CNN.

• “[M]anufacturers oppose H.R. 7688, the Consumer Fuel Price Gouging Prevention Act; it misses the mark,” NAM Vice President of Energy and Resources Policy Rachel Jones wrote to the House leadership on Thursday. She added that price gouging is already illegal in most states and comes under Federal Trade Commission investigation.
• The new measure “does nothing to address the real drivers of rising energy costs and only adds additional regulatory red tape that could drive prices even higher,” Jones continued.

What will work: Instead, legislators should focus on increasing production of energy here at home, which will lower inflation and pump prices, as well as make the U.S. more competitive globally, Jones wrote.

• “That starts with opening our diverse resources on federal lands, approving responsible exploration and production, supporting sustainable permitting and quickly building out more energy infrastructure.”

Washington, D.C. – The National Association of Manufacturers released its Q1 2022 Manufacturers’ Outlook Survey, which shows manufacturers’ significant concerns around inflation, hiring and potential tax increases. The NAM conducted the survey Feb. 11–25, 2022.

Key Findings:

• 88.1% of respondents cited supply chain challenges as a primary business challenge in the first quarter, 85.7% cited increased raw material costs, and 79.0% cited the inability to attract and retain a quality workforce.
• 88.6% of respondents said their company would find it more difficult to expand their workforce, invest in new equipment or expand facilities if the tax burden on income from manufacturing activities increased.
• 89.4% had unfilled positions within their companies for which they were struggling to find qualified applicants.

“The humanitarian crisis and economic disruptions of Russia’s war on Ukraine, as well as the resulting sanctions that manufacturers fully support, will exacerbate these supply chain challenges and could impact energy costs even more as we move into the second quarter. We’re looking to policymakers to take bold action, while manufacturers do everything in our power to help the nation and world persevere through another crisis,” said NAM President and CEO Jay Timmons.

“Federal leaders should give energy manufacturers the tools to ramp up production here at home and improve our energy security. At the same time, we need Congress to finish the China competition bill to increase domestic semiconductor production and bolster supply chains, among other manufacturing priorities. Any discussion of raising taxes on manufacturers will create uncertainty and make it difficult to invest, hire and expand, hurting the broader economy.

“Although job growth last year rose at the best pace since 1994, and wage growth is now at a 40-year high, the survey shows workforce shortages are still a major challenge. That’s why the NAM and The Manufacturing Institute continue leading our industry-wide Creators Wanted campaign—to inspire, educate and empower the manufacturing workforce of today and tomorrow.”

While manufacturers remain mostly optimistic in their economic outlook (88.8%, up from 86.8% in Q4), the survey was conducted prior to the Russian invasion of Ukraine.

-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 12.5 million men and women, contributes $2.57 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector 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. – In the wake of the Russian invasion of Ukraine, the National Association of Manufacturers Board of Directors unanimously voted to denounce Russia’s invasion of Ukraine and to stand with the people of Ukraine in their fight to preserve freedom and independence. The resolution expressed support for the economic and financial sanctions implemented against Russia and called for the removal of the Russian Federation from the World Trade Organization and termination of permanent normalized trading relationship status with the United States.

“Manufacturers have a proud history of standing firm in support of democracy, and we stand with the Ukrainian people. The free world must come together to denounce the unprovoked Russian aggression, save lives and end the humanitarian crisis unfolding before our eyes,” said NAM President and CEO Jay Timmons. “Ending the conflict is also critical to protecting livelihoods in America and around the world. Manufacturers are already feeling the serious economic disruption, which jeopardizes the jobs of America’s manufacturing workers.

“The NAM supports the efforts of the Biden administration and bipartisan congressional leaders to sanction Russia, and we support further economic sanctions.

“The NAM Board is speaking clearly today to support the bipartisan effort to hold Russia accountable and bring peace to Ukraine, while reaffirming our commitment to safeguarding democracy and democratic institutions not only here at home, but also abroad.”

Resolution: Whereas Ukraine is a sovereign democracy and constitutional republic that was invaded in an unprovoked act of aggression ordered by Russian President Vladimir Putin;

Whereas the unrelenting attacks on humanity have caused needless loss of life, unacceptable human suffering, a devastating refugee crisis, widespread destruction and significant economic disruption;

Whereas manufacturers in America have a proud history of supporting and defending democracy, including serving as the “Arsenal of Democracy” and mobilizing to free the world from tyranny and fascism in two world wars;

Whereas the Ukrainian people are standing strong against a violent aggressor, and their future is directly dependent upon the united actions of the free world and those who revere democracy;

Whereas the failure to end this aggression could have profound global ramifications, including further attacks on other democracies and destabilizing effects in Europe and around the world, as Russia continues its ambitious expansionism;

Whereas the continued disruption of global commerce harms manufacturers in America and the industry’s stability, threatens our ability to deliver essential products for the American people and the world and thereby jeopardizes the jobs of American manufacturing workers; and

Whereas the National Association of Manufacturers advances the values of free enterprise, competitiveness, individual liberty and equal opportunity, as enshrined by this board in our policy documents, and those values cannot flourish in the absence of democracy;

Be it resolved that the Board of Directors of the National Association of Manufacturers, at its March 8, 2022, meeting, joins world leaders in denouncing Russia’s invasion of Ukraine; stands with the people of Ukraine in their fight to preserve freedom and independence; supports the economic and financial sanctions implemented against Russia; supports additional economic sanctions, including a ban on the importation of energy products, removal of the Russian Federation from the World Trade Organization and termination of permanent normalized trading relationship status; supports the efforts of U.S. leaders and the international community to reestablish peace; and reaffirms the commitment of this association and our industry to sustaining and safeguarding democracy and democratic institutions not only here at home, but also abroad.

-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 12.5 million men and women, contributes $2.57 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector 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.

Scottsdale, AZ –– The National Association of Manufacturers today honored NAM board member and Nephron Pharmaceuticals CEO and Owner Lou Kennedy with the Manufacturing Icon Award during the NAM’s spring board meeting in Scottsdale, Arizona. The award recognizes leaders who inspire Americans to promote, perpetuate and preserve manufacturing in America.

“Lou Kennedy embodies the spirit of manufacturing, possessing a fearless commitment to solving some of our nation’s and the world’s most pressing challenges,” said NAM President and CEO Jay Timmons. “With trademark enthusiasm, Lou inspires those around her and brings together people from all sorts of backgrounds around a common purpose. In channeling her drive and dedication toward the NAM and The Manufacturing Institute’s Creators Wanted campaign, she is changing lives not just in South Carolina but across America. Her support has been game changing, and her passion for building the manufacturing workforce has helped us see our own vision for Creators Wanted more clearly. We’re honored to present this award to Lou in recognition of her exceptional leadership.”

Kennedy serves as co-chair of Creators Wanted. Last year, Nephron Pharmaceuticals hosted the Creators Wanted Tour Live in West Columbia, South Carolina.

The NAM and the MI’s “Creators Wanted” campaign is a member-driven initiative to inspire, educate and empower more Americans to pursue careers in modern manufacturing and to shift perceptions about careers in the industry. The campaign supports MI initiatives for students, women, veterans and other underrepresented communities and features a first-of-its-kind mobile experience and tour. It seeks to cut the skills gap by 600,000 workers by 2025 and increase the number of students enrolling in technical schools, vocational schools and apprenticeships by 25%. The campaign also seeks to increase the percentage of parents who would encourage their children to pursue a career in modern manufacturing to 50% from 27%.

In 2019, Kennedy was named a STEP Ahead Award Honoree. The MI’s STEP Ahead Awards honor women in science, technology, engineering and production careers who have demonstrated excellence and leadership across all levels of the manufacturing industry. Kennedy continues to work with the MI to help increase women’s representation in manufacturing and support the next generation of female talent.

-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 12.5 million men and women, contributes $2.57 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector 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. – The National Association of Manufacturers announced the Executive Committee of its Board of Directors has elected Dow Inc. Chairman and CEO Jim Fitterling as board chair and appointed Johnson & Johnson Executive Vice President and Chief Global Supply Chain Officer Kathy Wengel as vice chair.

With the industry on the front lines of an ongoing pandemic, supply chain disruptions, a persistent worker shortage and critical policy debates, these manufacturing leaders will take charge at a particularly consequential time.

“Jim and Kathy have well-earned reputations as respected and visionary leaders of renowned global brands. We have many challenges to confront, and they will ensure our industry continues to lead our recovery and leverage new innovations to raise standards of living in America and around the world,” said NAM President and CEO Jay Timmons. “And no matter what comes our way, our association and industry remain steadfastly committed to policies that uphold the values that make America exceptional: free enterprise, competitiveness, individual liberty and equal opportunity.”

“Manufacturing is vital to the long-term sustainability and prosperity of our citizens and our economy and continues to play an increasing role in solving some of the greatest challenges facing society,” said Fitterling. “It is a privilege to represent such a critical sector as board chair of the NAM, which is committed to continually advancing our collaboration across business, government, academia and all stakeholders for the betterment of all people and our planet.”

“The NAM is widely respected for its unique ability to convene key stakeholders and address important challenges across the manufacturing industry,” said Wengel. “Now more than ever, market dynamics and the acceleration of the Fourth Industrial Revolution are providing important opportunities to advance policies that foster growth, promote sustainable manufacturing and ensure readiness and diversity of the workforce of the future. I look forward to continuing to work with fellow members and the incredible staff that make up this organization to confront the challenges of today, while addressing our industry’s needs for tomorrow.”

The NAM Board of Directors guides the association’s leadership in policy advocacy, workforce solutions, legal action, operational excellence and news and insights. More than 200 manufacturing leaders serve on the NAM Board, helping the industry advance an agenda that promotes growth and prosperity for all Americans.

The new board chair was elected at the December meeting of the Executive Committee of the NAM Board. Additionally, the NAM announced significant promotions for key staff members effective Jan. 1, 2022.

-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 12.5 million men and women, contributes $2.52 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector 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. – The National Association of Manufacturers announced new 2022 leadership for its Council of Manufacturing Associations at the CMA 2022 Winter Leadership Conference. Philip Bell, president of the Steel Manufacturers Association, will serve as chair, and Melissa Hockstad, president and CEO of the American Cleaning Institute, will serve as vice chair. Made up of 220 industry-specific manufacturing associations representing 130,000 companies worldwide, the CMA creates powerful partnerships across the industry and ensures manufacturers have the strongest possible voice.

“Steelmakers and manufacturers are a force for good in the world. We support innovation, efficiency and sustainability. We help our employees build their lives, our customers build their businesses and the communities where we operate build their futures,” said Bell. “During this very dynamic time in our country, I am honored to articulate the important role manufacturing plays in America’s economic success and national security.

“Americans are counting on manufacturers to lead our economic recovery, deliver promising career opportunities and solve our global health crises, and the collaboration made possible through the CMA empowers our entire industry to rise to the challenge,” said NAM President and CEO Jay Timmons. “Philip and Melissa are trusted and tested leaders who will continue to cultivate the collaborative, cooperative spirit that has made the CMA such a consequential organization for our industry and country. I look forward to working with them to advance policies and plans that uphold the values that have made America exceptional and keep manufacturing strong: free enterprise, competitiveness, individual liberty and equal opportunity.”

The CMA’s mission is focused on bolstering the industry’s nationwide grassroots mobilization efforts and improving the competitiveness of manufacturers in the United States. CMA members work with the NAM to unite the manufacturing association community, and ultimately the broader business community, around strategies for increased manufacturing job creation, investment and innovation in America.

Bell is a 25-year industry veteran. Prior to leading the SMA, Bell served as director of external communications and public affairs for Gerdau Long Steel North America based in Tampa, Florida. Bell previously served as CMA vice chair.

Newly appointed 2022 CMA board members include the following:

• Alison Bodor, president and CEO, American Frozen Food Institute

• Nicole Harris, president and CEO, National Glass Association

• David Loftus, president and CEO, Electronic Components Industry Association

-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 12.5 million men and women, contributes $2.52 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector 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. – The National Association of Manufacturers released its Manufacturers’ Outlook Survey for the fourth quarter of 2021, showing manufacturers remain mostly optimistic in their economic outlook (86.8%, down from 87.5% in Q3) but are significantly concerned with issues like inflation, hiring and potential tax increases targeting manufacturers.

“Manufacturers are working overtime to fill more than 1 million open jobs, including through our nationwide Creators Wanted workforce campaign,” said NAM President and CEO Jay Timmons. “On top of that, we’re grappling with a supply chain crisis. Despite the challenges confronting us, manufacturers remain bullish on the future. But if Congress passes legislation with taxes that hit manufacturers harder than other industries, our entire recovery will be thrown off course. If new taxes land on our shoulders, it will undo all the progress we’ve made since the 2017 tax reform law.”

“Manufacturers have kept our promise to hire more workers, raise wages and benefits and invest in our communities. Our question to Congress—the message of this survey—is, do we want to weaken our recovery by undermining manufacturers’ competitiveness? Raising taxes on manufacturers will not help us build back better. It will tear down what we’ve achieved.”

Key survey highlights:

• Top issues:
  • Increased raw material costs (87.1%), the number-one issue for the fourth straight quarter
  • Supply chain challenges (84.5%)
  • Attracting and retaining a quality workforce (82.7%)

• 87.8% of respondents said an increased tax burden on income from manufacturing activities would make it more difficult to expand their workforce, invest in new equipment or expand their facilities
• 85.2% said they have open positions they cannot fill.
• 73.6% of respondents said supply chain bottlenecks negatively impacted their company’s outlook for production, hiring and overall business activity.

Read the full Q4 2021 Manufacturers’ Outlook Survey results here.

Background on manufacturing growth following the enactment of 2017 tax reform:

• In 2018, manufacturers added 263,000 new jobs. That was the best year for job creation in manufacturing in 21 years.
• In 2018, manufacturing wages increased 3% and continued going up—by 2.8% in 2019 and 3% 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 2.7% in 2018, with December 2018 being the best month for manufacturing output since May 2008.

-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 12.5 million men and women, contributes $2.52 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector 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. – The Association of Home Appliance Manufacturers announced the retirement of President and CEO Joe McGuire. Joe is a former National Association of Manufacturers board member and former chair of the Council of Manufacturing Associations. Following the announcement, NAM President and CEO Jay Timmons released this statement:

“For more than two decades, Joe ably steered AHAM, setting a high standard for other manufacturing association executives. I have been fortunate to call him a colleague and close friend, from whom I have learned so much about leading by example. As a leader of the NAM’s Council of Manufacturing Associations, a past CMA chair and former NAM board member, Joe demonstrated a collaborative spirit and a dedication to the success of the entire industry. As he grew AHAM’s sphere of influence, he established himself and his association as influential players not only on the national stage but also on the world stage. He is a passionate defender of democracy and the values that make our country exceptional and keep manufacturing strong: free enterprise, competitiveness, individual liberty and equal opportunity.

“Through his service as the voice of home appliance manufacturers, Joe has touched the lives of all Americans—though most will never know it. His advocacy has helped ensure that manufacturers could continue to deliver the machines that make modern life possible and on which our families depend—all while driving innovation to make those appliances even more efficient and enhance their capabilities.

“We will miss Joe’s leadership in the association community, and we look forward to celebrating with him and his wife Mary over the coming months. He has certainly earned his retirement, even if the rest of us wish we could continue serving alongside him for years to come.”

-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 12.4 million men and women, contributes $2.52 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector 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.