Innovation and Technology

G7 leaders are focusing on “de-risking,” but not “decoupling” from China, they said in a joint statement covered by CNBC.

The details: “We are not decoupling or turning inwards,” the statement said. However, “we recognize that economic resilience requires de-risking and diversifying.”

• “We will seek to address the challenges posed by China’s non-market policies and practices, which distort the global economy,” the leaders continued. “We will counter malign practices, such as illegitimate technology transfer or data disclosure.”

Biden concurs: President Biden echoed these sentiments at a press conference on Sunday, emphasizing the need to “diversify” supply chains so that no one country has a monopoly on any essential product.

• “It means resisting economic coercion together and countering harmful practices that hurt our workers,” he continued. “It means protecting a narrow set of advanced technologies critical for our national security.”

In sum: “We stand prepared to build constructive and stable relations with China, recognizing the importance of engaging candidly with and expressing our concerns directly to China. We act in our national interest,” the G7 statement said.

NAM in action: As exemplified by its recent Competing to Win Tour in Europe, the NAM is working to bring business and government leaders together to strengthen the resilience of manufacturers in the United States and our democratic allies in the face of greater uncertainty with respect to China.

The last word: “Manufacturers have consistently called for a rethink of the U.S.–China relationship to boost competitiveness globally,” says NAM Vice President of International Economic Affairs Ken Monahan.

• “The strategy requires collaborating with allies for supply chain resilience, addressing discriminatory Chinese policies and creating trade openings through robust agreements. Yesterday’s announcement highlights the path ahead.”

The energy and enthusiasm of the night were fittingly high for the occasion: a gala to honor 130 standout women in manufacturing.

What went on: The Manufacturing Institute’s 2023 Women MAKE Awards—formerly the STEP Ahead Awards—took place Thursday evening at the National Building Museum in Washington, D.C., following the two-day Women MAKE Leadership Conference. (The MI is the NAM’s 501(c)3 workforce development and education affiliate.)

• The gala—which featured a live performance by violinist Ezinma and was sponsored this year by BASF, Trane Technologies, Amazon and others—is held each year to honor women in manufacturing who exemplify leadership in their careers.
• This year the awards recognized 100 honorees and 30 “emerging leaders,” women under the age of 30 who have achieved unique accomplishments.

What was said: MI President and Executive Director Carolyn Lee delivered the night’s opening remarks, telling audience members she was humbled to be in their midst.

• “We have women who have launched entire product lines,” she said. “Women with dozens of patents to their name. Women who oversee the production and distribution of millions of products every day … women who constantly exceed expectations.”
• Carolyn Lee touched on the MI’s year-old 35×30 campaign, which aims to raise the percentage of women in manufacturing from 29% to 35% by 2030, and said the women honored at the gala serve as inspiration to young women considering manufacturing careers. “Because if you can see it, you can be it,” she said.

“The opportunity”: WMA Chair and Cornerstone Building Brands President and CEO Rose Lee underscored the importance of filling the current shortfall of manufacturing workers.

• If the shortage continues unchecked, the number of missing workers could exceed 2 million by 2030, she said, citing a study by the MI and Deloitte.
• “Therein lies the opportunity to engage an untapped, underutilized pool of women talent in the vitally important manufacturing sector,” Lee continued. “This is the collective work we need to pursue, and the honorees and emerging leaders here tonight are advancing this work by demonstrating the myriad ways in which women can achieve professional success in the manufacturing industry.”

Thank you: MI Board Chair and NAM President and CEO Jay Timmons thanked the honorees for showing the next generation what’s possible.

• “Thank you for being role models—including for my daughters and my son, the many families we have in this room and the people you impact every day,” Timmons said. “The ripple effect you can have is incalculable.”

From one to many: Rounding out the night’s lineup was event Vice Chair and Caterpillar Inc. Group President of Resource Industries Denise Johnson, who told the audience it was “remarkable” to be in a room with so many other women in manufacturing.

• “There have been many times throughout my career when I’ve been the only woman in a room, the only woman on a project,” she said. “What an incredible change of pace this is. I … am overwhelmed with gratitude and pride for how far we’ve come. Congratulations to all of you.”

The Manufacturing Leadership Council—the NAM’s digital transformation division—has announced the finalists for the 2023 Manufacturing Leadership Awards, the industry’s premier awards program for achievements in digital manufacturing. You can read the complete list of finalists here.

The ceremony: The finalists will be honored at the Manufacturing Leadership Awards Gala in Marco Island, Florida, on June 28.

• Also announced at the gala will be winners for all project and individual categories, winners of the Manufacturing in 2030 Award, the Manufacturing Leader of the Year, the Small/Medium Enterprise Manufacturer of the Year and the Large Enterprise Manufacturer of the Year.

Rethink: Certain award winners will also present at Rethink, the industry’s leading event for exploring manufacturing’s digital era, which will also take place in Marco Island on June 26–28.

The categories: The awards are divided into nine project categories to recognize company achievements:

• Artificial Intelligence and Machine Learning
• Collaborative Ecosystems
• Digital Network Connectivity
• Digital Supply Chains
• Engineering and Production Technology
• Enterprise Technology Integration
• Operational Excellence
• Sustainability and the Circular Economy
• Transformational Business Cultures

Additionally, individual leaders are recognized in the Digital Transformation Leadership and Next-Generation Leadership categories.

The last word: “As more manufacturers extend digital’s reach onto the factory floor and throughout their operations, we are witnessing transformative performance improvements that would have been unthinkable just a few short years ago—and that are improving life for employees and customers alike,” said MLC Co-Founder, Vice President and Executive Director David R. Brousell.

A bipartisan Senate duo introduced legislation on Thursday that would both allow businesses to once again fully deduct R&D expenses in the year they are made and expand the refundable R&D tax credit.

What’s going on: The American Innovation and Jobs Act, sponsored by Sens. Maggie Hassan (D-NH) and Todd Young (R-IN), would restore the immediate deductibility of R&D expenses. Last year, a tax change went into effect requiring companies to amortize or deduct their R&D investments over a period of years, making R&D more costly.

Why it’s important: According to a recent NAM analysis, the sector would lose nearly 60,000 jobs and face an output decline of more than $31 billion this year alone if the change is not reversed.

• The U.S. has now become a global outlier, joining Belgium as the only other developed country requiring the amortization of R&D expenses.
• Meanwhile, China provides a 200% “super deduction”—20 times the amount allowed in the U.S. tax code—for its manufacturers’ research.

The NAM says: “Manufacturers applaud the introduction of the American Innovation and Jobs Act, which will help the U.S. out-compete China,” said NAM Managing Vice President of Tax and Domestic Economic Policy Chris Netram.

• “Across the country, manufacturers are hiring workers, investing in communities and creating the products, materials and processes that drive us forward. Congress should approve the American Innovation and Jobs Act quickly to support critical research that allows manufacturers to improve lives in America and for people around the world.”

Learn more: Read our stories on how the 2022 expensing requirement is impacting International Paper, Marlin Steel Wire Products, Ultragenyx, Miltec UV and  Brewer Science (whose story was also covered today by The Wall Street Journal, subscription).

Washington, D.C. – Following the introduction of the American Innovation and Jobs Act by Sens. Maggie Hassan (D-NH) and Todd Young (R-IN), National Association of Manufacturers Managing Vice President of Tax and Domestic Economic Policy Chris Netram released the following statement:

“Manufacturers are hiring workers, investing in communities across the United States and creating the products, materials and processes that drive America forward. Manufacturers applaud the introduction of the bipartisan American Innovation and Jobs Act, which restores full deductions for research, helping the American industry out-compete China, which provides a 200% super deduction for manufacturers’ research—20 times the amount in the U.S. tax code,” said Netram. “Manufacturers, the vast majority of which are quite small, perform 55% of private-sector research and development. These investments in innovation spur economic growth and support the creation of high-paying jobs across the country. Congress should approve the American Innovation and Jobs Act quickly to support critical research that allows manufacturers to improve lives in America and for people around the world.”

Background: As of 2022, manufacturers can no longer immediately deduct their R&D expenses in the year in which they are incurred. Instead, manufacturers must deduct or amortize their expenses over a number of years, which makes R&D much more expensive to undertake. The American Innovation and Jobs Act would restore the immediate deductibility of R&D expenses, a policy that was in place for nearly 70 years. In the 117th Congress, the American Innovation and Jobs Act garnered 35 cosponsors: 17 Democrats and 18 Republicans. A recent analysis released by the NAM finds that the industry would lose 59,392 jobs and face a decline in output of $31.69 billion this year if Congress does not act.

-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 $2.81 trillion to the U.S. economy annually and accounts for 55% 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.

On February 16, the Manufacturing Institute held a professional development virtual event on building your personal brand, presented by branding expert Cat O’Shaughnessy Coffrin, Founder and CEO of CaptivatingCo.

View the recording here and the slide deck here.

TOPLINE TAKEAWAYS 

Your personal brand consists of:

• Proposition: The value you create
• Persona: Your X factor
• Purpose: What drives you

Steps you can take to start building your personal brand:

• Self-Reflect: What role do you play on your team? What skills do you bring? Look for patterns in your career on how you approach your job and get things done.
• Ask For Feedback: Connect with your colleagues and friends and ask how they would describe the attributes, attitudes and skills you bring to the table. This external perspective is valuable for shaping your narrative.
• Connect and Reconnect: Remember that teacher who had a profound impact on you? Or a former colleague who you lost touch with? Reach out to them and schedule a coffee to catch up and remind yourself how many people are in your corner wanting you to succeed.
• Revisit Your LinkedIn: There are two simple step you can take right now to enhance your online presence; make sure your ‘About’ section is drafted in the first person (LinkedIn is a social platform!) and identify, follow and engage with leaders of topics that interest you.

Manufacturers across the United States have long been leading the way on sustainability. From outpacing international competitors on emission reductions to making investments in clean technologies, the industry has implemented best practices for others to use and blazed a trail for them to follow.

NAM Director of Energy and Resources Policy Chris Morris emphasized manufacturers’ track record during a hearing before the Environmental Protection Agency last week, where he explained to policymakers that their proposed air quality rules would stifle rather than enhance manufacturers’ efforts. Here’s what he had to say.

A record of leadership: “Our industry has championed environmental stewardship at every turn, and our members have invested heavily in new processes and technologies that have made manufacturing in the U.S. cleaner and more sustainable than ever,” said Morris.

• “This innovation in the manufacturing sector has played a key role in the reduction of air pollution we have seen over the last 50 years.”

Manufacturers’ impact: “Across the board, levels of major pollutants have declined dramatically, and we are outpacing our global competitors in air quality improvements,” said Morris.

• “According to the EPA, the U.S. has reduced six common NAAQS pollutants, including PM2.5, by 78% between 1970 and 2020.”
• “Additionally, EPA data shows that PM2.5 air quality has improved 44% since 2000. Manufacturers are committed to ensuring that progress continues.”

The challenge: New proposed regulations from the EPA would have a number of negative effects, Morris noted.

• Tighter air quality standards would make permitting more difficult, raise compliance costs and make it harder for manufacturers in the United States to compete with companies abroad—especially at a time when manufacturers are concerned about the country’s economic outlook.

The path forward: Morris urged policymakers to ensure that current regulations are fully implemented before they propose new ones, and to work together with innovative manufacturers on smart solutions.

• “The U.S. has some of the best environmental standards in the world, and American manufacturers are consistently reducing emissions, conserving critical resources, protecting biodiversity, limiting waste and providing safe products and solutions so others in our country can do the same,” said Morris.
• “But in order to maintain our environmental leadership, we need better regulations.”

The last word: “In our view, environmental protection and a thriving economy are not mutually exclusive,” said Morris. “We can have both—but it requires working together toward a constructive solution. Manufacturers are committed to smart, strong environmental safeguards and improving the lives of all Americans so that no one—and no community—is left behind.”

Boca Raton, FL—The National Association of Manufacturers today honored NAM board member and Snap-on Chairman and CEO Nick Pinchuk with the Manufacturing Icon Award during the NAM’s spring board meeting in Boca Raton, Florida. The award recognizes leaders who inspire Americans to promote, perpetuate and preserve manufacturing in America.

“Across the industry and across the business community, executives and employees alike look up to Nick Pinchuk. His storied career is a source of inspiration, and he is a wealth of knowledge, a wise counselor and a tireless advocate for the rewarding careers found in modern manufacturing. He has been a tremendous supporter of the NAM and the Manufacturing Institute’s Creators Wanted campaign to build the manufacturing workforce of today and tomorrow, and his policy advocacy on behalf of the industry is best-in-class,” said NAM President and CEO Jay Timmons.

“His presence on television and in the public eye as a principled manufacturing leader, as well as his unwavering service to the NAM and to our industry, makes Nick a true model for business leaders in America. In whatever he does, he demonstrates an unshakeable commitment to the values that have made our country exceptional and keep manufacturing strong: free enterprise, competitiveness, individual liberty and equal opportunity. We’re honored to present this award to Nick in recognition of his outstanding leadership.”

Pinchuk serves on the NAM Executive Committee as the NAM tax, domestic economic and regulatory reform policy vice chair and on the board of directors of the Manufacturing Institute, the workforce development and education partner of the NAM.

-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 13 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% 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. – With the number of manufacturing job openings in the United States averaging 830,000 per month over the past year, the National Association of Manufacturers and the Manufacturing Institute have partnered with FactoryFix to launch and power Creators Connect, a new digital career resources platform designed to help students, parents, career influencers and job seekers easily explore and pursue the wide range of pathways available in modern manufacturing.

“Addressing the workforce crisis is among the top concerns for manufacturers across the country,” said NAM President and CEO and Manufacturing Institute Board Chair Jay Timmons. “While we cannot fully solve this challenge without immigration reform, manufacturers are determined to lift up more people in the United States with the promise and reward of modern manufacturing careers—and Creators Wanted’s new digital career resources platform is another way that manufacturers are leading with solutions.”

Creators Connect is the first and only unified platform to search and explore career pathways, job openings and job training programs across the entire manufacturing industry while making it easier for manufacturing professionals to attract and identify talent to fill the skills gap.

“We’ve made tremendous strides in inspiring a new generation of manufacturers at the Manufacturing Institute and across the industry, but what’s been missing is a single resource for manufacturing jobs and pathways opportunities,” said MI President Carolyn Lee. “Today, we bring an unmatched tool—in terms of volume and quality of jobs—to help us close the skills gap and change more misperceptions about modern manufacturing.”

Creators Connect is live on CreatorsWanted.org, home of the NAM and MI’s Creators Wanted campaign, which is the largest industry campaign to build the workforce of today and tomorrow. Since 2021, Creators Wanted has built an email network of more than 1 million students, early career entrants and potential career influencers. FactoryFix is already the leading manufacturing recruitment platform in the U.S., hosting more than 400,000 job openings and having its own talent network of more than 650,000 manufacturing workers. The partnership is the first of its kind for the industry’s largest and oldest manufacturing trade association.

“It’s an incredibly exciting opportunity for FactoryFix to be the engine behind Creators Connect and a part of the Creators Wanted campaign,” said FactoryFix CEO and Founder Patrick O’Rahilly. “As a one-stop recruiting solution for manufacturers to find qualified and engaged candidates, we’re looking forward to increasing our impact in addressing the labor shortage and helping more Americans create their future in modern manufacturing.”

By powering Creators Connect, FactoryFix representatives will join the NAM and the MI’s Creators Wanted workforce campaign as it continues its roadshow in 2023 and expands its digital campaign across the United States. By 2025, Creators Wanted aims to recruit 600,000 new manufacturing team members; increase the number of students enrolling in technical and vocational schools or reskilling programs by 25%; and increase the positive perception of the industry among parents and career influencers to 50% from 27%.

To explore Creators Connect, visit CreatorsWanted.org.

-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 12.9 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% 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 nam.org.

-Manufacturing Institute-

The MI grows and supports the manufacturing industry’s skilled workers for the advancement of modern manufacturing. The MI’s diverse initiatives support all workers in America, including women, veterans and students, through skills training programs, community building and the advancement of their career in manufacturing. As the workforce development and education partner of the NAM, the MI is a trusted adviser to manufacturers, equipping them with resources necessary to solve the industry’s toughest challenges. For more information on the MI, please visit https://www.themanufacturinginstitute.org.

-FactoryFix-

FactoryFix is the leading recruitment automation solution for manufacturing companies, combining the power of a talent network with specialized recruitment technology. Our platform helps HR manufacturing teams save time and budget by automating tedious tasks, streamlining recruitment efforts and providing a consistent flow of engaged candidates.

Founded in 2017 in Chicago, Illinois, FactoryFix has nearly 650,000 manufacturing professionals in its talent network and is the exclusive recruiting partner of the National Association of Manufacturers, Manufacturing Institute and Creators Wanted. Hundreds of the top manufacturing companies in the country trust FactoryFix to help meet their hiring goals. For more information, please visit https://www.factoryfix.com.

Marlin Steel Wire Products spent its first 30 years making bagel baskets. When Drew Greenblatt bought the custom wire and metal fabrication company in 1998, he thought it would be making bagel baskets for the next 30 years as well—but soon, international competition changed the math.

“Suddenly, China started manufacturing bagel baskets and shipping them to New York City for cheaper than I could get the steel,” said Greenblatt, Marlin’s president and owner. “But then, we got a phone call from an engineer at Boeing who needed an innovative, customizable basket. And that was the eureka moment.”

The shift: Greenblatt recognized that innovation would help him outcompete foreign companies that could manufacture products more cheaply.

• “We realized we couldn’t thrive in a commodities market,” said Greenblatt. “We had to come up with novel ways to make a basket so that it would make no financial sense to buy from China or Mexico.”
• “We wanted to be able to say to buyers, you must buy from the American innovative company, because we’re coming up with such slick ideas that our product blows the competition away.”

The growth: Today, Marlin Steel is nearly 30 times larger than it was when Greenblatt bought it and heavily invested in research and development.

• “Today, Marlin is 15% degreed mechanical engineers,” said Greenblatt. “We have chemical engineers. We’re coming up with the most innovative racks and systems out there.”
• “People are showing us their operations and asking us to reverse-engineer solutions that will work for them. And we’re doing it.”

However . . . A recent tax change threatens to throttle the company’s progress. Until about a year ago, businesses could deduct 100% of their R&D costs in the same year they incurred those expenses.

• But since last year, a tax policy change now requires businesses to spread their R&D deductions out over a period of five years, making it much more expensive to invest in innovation.

The impact: “Our taxes will be $600,000 higher than they should have been this year—we’ll pay four and a half times more on taxes,” said Greenblatt.

• “What that means is that it makes sense for us not to hire six more engineers. Not to buy three more press brakes [machines for bending metal parts] or hire people to work them. It’s incredibly shortsighted, a horrible policy screwup, and the ripple effects are massive.”

The scope: Greenblatt also emphasizes that the tax change will harm many small businesses.

• “People tend to focus on the bigger companies and how it will hurt them—and it will hurt them—but it will also hurt the little guy,” said Greenblatt. “And the little guy is the job creator in America.”

The last word: “American innovation—that’s our secret sauce,” said Greenblatt. “That’s how we’re going to grow jobs and pay people well and give good benefits and steady employment without layoffs. That’s how we’re going to beat a recession. We need to have the coolest, most innovative products in the world. For us, innovation is key.”