Innovation and Technology

A great mentor can make all the difference to your career—especially if you’re in an industry where you may find yourself in the minority. To help women in manufacturing reach their full potential in a male-dominated industry, the Manufacturing Institute’s Women MAKE America program has created a mentorship program, generously supported by its 35×30 Campaign supporters, Dow, General Motors, Arconic Foundation, Alcoa Foundation and Ketchie.

• The program has an ambitious goal: to train more than 1,000 female mentors by 2030 and connect them with younger women in the industry as well as students in colleges, high schools and middle schools.

One year into the program, the participants are already seeing an impact. In a recent Women MAKE webinar, attendees got to hear from one successful and happy mentee, while also receiving guidance on building their own slate of mentors.

Making a difference: “I was especially thankful for the Women MAKE Mentorship Program because it filled a gap in my support system and allowed me to have a mentor who was really dedicated to my professional development,” said Zen Saunders, a 2022 Women MAKE mentee and diversity, equity, inclusion and employee experience leader at Dow.

• Saunders explained that her mentor shared examples of how she built her career, which inspired Saunders to map out her own next steps more creatively. Through regular meetings with her mentor, Saunders learned to find common interests with colleagues and earn their buy-in on new projects.
• “[My mentor has] been an active listener and committed to my success, creating a safe space for me to learn from the challenges that I’ve faced while offering a refreshing perspective that’s uplifting and encouraging,” said Saunders.

Support from Women MAKE: After hearing from Saunders, participants in the webinar were asked to design a personal “board of directors” to mentor them in their own careers. Women MAKE hosts many such activities, which are designed to forge connections between participants and encourage them to think ambitiously about their career paths.

• The board members could be people from participants’ personal or professional lives, instructed MI Director of Women’s Engagement Sarah Shields. An ideal board of directors should include a sponsor, an innovator, an expert, a truth teller and a safe space.
• After they brainstormed a list of people who could fit these roles, Shields encouraged participants to ask these people to act as mentors and to schedule regular times to discuss their career plans.

The last word: “I’m thankful to the Manufacturing Institute for this opportunity and the amazing Women MAKE Mentorship Program. It’s really been a life-changing and transformative experience for me. I highly recommend this program for women and girls currently in or interested in the industry,” Saunders said.

Get involved: In addition to young and senior manufacturing professionals, this year Women MAKE is inviting young women and girls ages 13+ who are interested in STEM, as well as refugees seeking opportunities in the U.S., to join the Women MAKE Mentorship Program.

• If you are interested in joining the Women MAKE Mentorship Program as a mentor, or know of someone who would benefit from becoming a mentee, check out the application. The deadline for applying is Tuesday, Feb. 28.
• You can also tune in to the next Women Connect webinar on “Building Your Personal Brand” on Thursday, Feb. 16.
• And last, if you have questions, please contact the Women MAKE team at [email protected].

Manufacturers have long led the way in efforts to reduce air pollution and improve air quality. Yet, new proposed regulations from the federal government will work against these efforts instead of bolstering them, stymying critical progress and destabilizing economic growth at a time when both are more important than ever.

The challenge: The Environmental Protection Agency is considering a new rule that would impose stricter air standards on particulate matter known as PM2.5 (i.e., particles that measure two and a half micrometers or less in diameter). This rule would enact significant top-down restrictions, forcing manufacturers to change their operations abruptly and without any support.

The reality: For years, manufacturers across all sectors have been developing smart, innovative ways to use energy, water and other resources more sustainably—all while boosting economic growth and creating good jobs at the same time.

• Today, manufacturing in the U.S. is cleaner and greener than at any other time in history, largely due to a revolution in how manufacturers produce, use and recycle energy and resources.
• Across the board, levels of major pollutants have declined dramatically over the past few decades. Thanks to existing regulations and a culture of innovation, the U.S. is far outpacing global competitors in environmental stewardship.

By the numbers: According to the EPA, the U.S. reduced six common pollutants covered by National Ambient Air Quality Standards, including PM2.5, by 78% between 1970 and 2020. In fact, PM2.5 levels alone have dropped a full 44% since 2000.

The impact: These new regulations could be devastating for manufacturers and for the climate. Here are just a few of the negative repercussions:

• An additional regulatory burden on businesses will drain resources from innovative manufacturers, posing additional hurdles to the investment in research and development that fuels progress in energy efficiency and climate action.
• Making permitting harder could also jeopardize new clean energy projects that America needs to address climate change.
• The standards will hinder onshoring, resulting in continued manufacturing abroad—which is less clean than manufacturing in the U.S. The EPA’s proposal undercuts U.S. competitiveness and will not further the goal of global emissions reduction.
• New regulations could damage an already-slowing economy, increasing costs and constraining job growth at a time when Americans are grappling with record inflation.

Our view: Rather than imposing new and unnecessary obligations on manufacturers, the federal government should focus on enforcing the strong regulations that are already in place and give manufacturers the space to find better solutions.

• “The EPA’s announcement . . . [about reconsidering] the PM 2.5 standard will only further weaken an already slowing economy,” said NAM President and CEO Jay Timmons. “Let manufacturers do what they do best: innovate and deploy modern technologies to protect the environment, while creating jobs and strengthening the economy.”

NAM in action: The NAM is rallying manufacturers to speak out against the EPA’s proposal and calling on Congress to oppose these harmful regulations.

• Manufacturers can show their support by sending an email to decision makers in Washington, explaining the real impact of this damaging proposal and urging them to stand up against unnecessary regulations.

Join in: There is an EPA hearing to discuss the proposal on Feb. 21. To participate, be sure to sign up soon—the registration deadline is Feb. 16.

About 30 million people in the United States have a rare disease, according to the National Institutes of Health, which equates to about one in every 10 individuals. Approximately 95% of these rare diseases have no treatment at all—and Ultragenyx, a biopharmaceutical company focused on new and effective therapies for patients with rare and ultra-rare diseases, is working to change that.

• “In the aggregate, rare is not that rare,” said Ultragenyx Executive Director of Public Policy and Public Affairs Lisa Kahlman. “Half of those 30 million people are children. It’s a huge unmet medical need.”

Founded in 2010, Ultragenyx has four commercial products, with about 20 more in pre-clinical and clinical development. But a new change in tax policy poses a very real threat to Ultragenyx’s ability to develop as many treatments for rare diseases as possible.

The issue: Until a year ago, businesses could deduct 100% of their R&D expenses in the same year they incurred the expenses. Starting in 2022, however, a tax policy change requires businesses to spread their R&D deductions out over a period of five years, making it more expensive to invest in growth and innovation. For research-heavy companies like Ultragenyx, that change could divert funds intended for the development of therapies toward tax obligations.

• “Ultragenyx is different,” said Kahlman. “There are a lot of companies that do some work in rare diseases, but usually that’s only a fraction of what they do. We’re exclusively built to focus on rare and ultra-rare diseases, and that requires research.”

The impact: As a small, largely precommercial start-up company that focuses on research, Ultragenyx spends about 70% of its total operating expenses on R&D. In 2021, Ultragenyx spent approximately $497 million on R&D—nearly $150 million more than it earned in revenue.

• If the tax change stands, the company’s financial statement losses, which approximate decreases in the company’s cash reserves, will be adjusted for tax purposes to reflect significant taxable income, resulting in very large tax liabilities over a short period of years.
• This will occur during late stages of the company’s development programs just when costs escalate quickly. Altogether, money will be diverted to taxes and away from critical development programs at precisely the wrong time.

The human cost: If Ultragenyx and other research-heavy biotech companies that are focused on developing treatments for rare diseases must divert funds away from development and toward covering tax obligations, patients living with rare diseases will have even more limited options.

The bottom line: “The therapies we’re developing are really transformational, but in some cases, there might be only about 200 patients in the developed world with one of these diseases—so if we don’t have the money for R&D, there won’t be any incentive for anyone else to develop treatments,” said Kahlman. “For these patients, there is no alternative.”

Our move: At the NAM, we’re pushing Congress to reverse this change and allow manufacturers to invest in jobs, communities and innovation. Learn more and take action at www.nam.org/protect-innovation.

Innovation is getting more expensive—and that should worry all of us.

Until recently, businesses could deduct 100% of their R&D expenses in the same year they incurred those costs. But a tax law that took effect at the beginning of 2022 requires businesses to spread their deductions out over five years instead, driving up the cost of the innovations that keep our economy strong.

At International Paper—an American supplier of renewable fiber-based recyclable packaging and pulp products—that change is causing serious challenges. We spoke to Vice President of Finance and Corporate Controller Holly Goughnour and Senior Director for Government Affairs Kaitlin Sighinolfi to learn more.

Why it matters: “Our company invests in R&D for two main reasons: making better products for our customers and creating safer, more efficient and sustainable manufacturing processes,” said Goughnour.

• “We spend a lot of time and money working to make a better performing, more sustainable and more durable product, but innovation is about more than the product—it’s also about improving the safety and efficiency, and reducing the environmental impact, of our operations.”

The scale: International Paper devotes a significant portion of its resources to innovation, and as a result, the change in tax law has an outsized impact.

• “Much of our free cash flow goes to R&D activities,” said Goughnour. “The change in tax law has resulted in a significant amount of additional cash taxes in this first year, reducing the amount of capital available to invest back into our business, including additional R&D.”

The competition: Goughnour and Sighinolfi also emphasized the need for a tax system that helps manufacturers in the U.S. to compete with companies abroad. According to Goughnour, the new tax change does the opposite.

• “The new tax law enables European and Chinese competitors to accelerate their R&D faster than us,” said Goughnour. “We’re in a global marketplace, and the new tax law puts U.S. manufacturers at a competitive disadvantage.”
• “Almost nobody else in the world has this policy,” said Goughnour. “R&D is an absolute growth engine for the U.S. economy. Why would we have a tax policy that discourages investment in R&D? It makes no sense.”

The last word: “Ours is a supply chain story,” said Sighinolfi. “Innovation should be part of the overall manufacturing value chain, but the new law reduces the value of innovation, slowing investment in innovation and ultimately hurts American businesses, employees and consumers.”

As part of the Creators Wanted campaign, the NAM and the Manufacturing Institute have partnered with FactoryFix, a leading one-stop solution for manufacturing recruitment, to launch Creators Connect.

The digital career-resources platform aims to address the skills gap and misconceptions about the manufacturing industry, providing manufacturers with a powerful new tool to help build their workforce.

What it is: The platform, which is housed on Creatorswanted.org and powered by FactoryFix, is free to use. It is the first and only unified platform where users can search and explore job openings, career pathways and job training programs across the entire manufacturing sector.

• With more than 400,000 listed job openings, Creators Connect builds on the success of its parent initiative, Creators Wanted.
• It is also working to boost the number of students enrolling in technical and vocational schools or reskilling programs by 25% and to increase the positive perception of the manufacturing industry among parents and career influencers.

Learn more about how to get the most out of Creators Connect by visiting the FAQ page here or reading an article on the launch here. Questions? Contact the Creators Wanted team here.

How does an expert in one facility guide an engineer halfway across the country through implementing a new technology? Food and beverage packaging manufacturer Crown Holdings found an innovative answer during the pandemic, when its employees couldn’t travel freely: it equipped them with smart glasses.

This pilot program, the subject of a new case study by the Innovation Research Interchange (the NAM’s innovation division), has shown a great deal of promise. Here’s some of what the company has learned so far.

How it worked: The glasses make it possible for experts to connect with on-site workers in real time, thanks to their built-in cameras, microphones, speakers and high-resolution display. The glasses can even be integrated with Microsoft Teams.

• “When the pandemic started, we were trying to coordinate commissioning activities through email and WhatsApp messaging,” said Crown Holdings Project Industrial Engineer Leon Azzi. “Tasks that normally took two to three days were taking weeks.”
• But with the glasses, “[The workers] could share with each other the PLC (programmable logic controllers) electrical diagrams and pictures using the glasses viewer, and the remote experts could point them to areas to focus on in real time,” said Crown Holdings Digital Optimization Team Head Alberto Rodriguez.

Working out the kinks: The company is still perfecting its use of the glasses, which do need some optimization for a manufacturing environment.

• One issue is with the Wi-Fi, since the glasses need a consistent connection that is sometimes hard to find in a manufacturing facility.
• In addition, the integrated noise cancellation headphones that come with the glasses need some upgrades, as the workplace can be incredibly loud and impede easy communication.
• Workers also found the weight of the glasses on their heads to be uncomfortable at times, especially as they were already wearing other safety equipment.
• And last, the screen in the smart glasses is relatively small, which can make it difficult for workers to read.

The path ahead: Crown Holdings considers the program to be a success and plans to expand its use of smart glasses in other areas, including worker training and the mapping of visual data onto equipment. It also hopes the glasses can improve worker interactions with machines via their voice recognition technology, which could allow remote workers to zoom in or capture photos from afar through voice commands.

Learn more: Read more about Crown Holdings’ experience at the IRI Learning Center.

Washington, D.C. – This week, the National Association of Manufacturers and the Ukrainian League of Industrialists and Entrepreneurs co-hosted “Rebuilding Ukraine: Inaugural Conference of Manufacturers in the U.S. and Ukraine.” The conference was led by NAM President and CEO Jay Timmons and ULIE President Anatolii Kinakh.

“Manufacturers have demonstrated their unwavering support for Ukraine and denounced Russian aggression,” said Timmons. “Manufacturers in the U.S. have a long and proud history of standing firm in support of democracy, the rule of law, transparency, freedom and opportunity. We stand with President Zelenskyy, the Ukrainian government and the Ukrainian people as they defend those values and as they work to rebuild their country in the years ahead.”

Also participating were senior Ukrainian government officials and manufacturers, as well as NAM member companies with a presence in Ukraine and the U.S. During the meeting, Kinakh thanked the U.S. for its comprehensive support of Ukraine, including through the providing of defense arms, funding and other aspects.

“This is the first business conference of Ukraine and the U.S. on such a scale,” said Kinakh. “In our view, it will enable our partners in the U.S. to learn about the true situation in Ukraine, the business climate and our priorities. It will be the basis to shape direct ties, common interests and business plans that will boost economic activities of Ukraine.”

Kinakh stressed that a stable economy, new jobs and welfare growth for the Ukrainian people were crucial to achieve victory over Russia. Furthermore, he invited American businesses that are not currently operating in Ukraine to invest in the promising sectors in the country, including information technology, energy, infrastructure, industry renovation and education.

To formalize manufacturers’ commitment to supporting Ukraine, the NAM and the ULIE signed a Memorandum of Understanding at the meeting yesterday. This MOU will serve as a roadmap to the cooperation between the two organizations and outlines the key goals and objectives for the partnership.

In March 2022, in the wake of the Russian invasion of Ukraine, the NAM 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 U.S.

-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 www.nam.org.

ULIE

Ukrainian League of Industrialists and Entrepreneurs (ULIE) is a strong non-governmental association uniting large enterprises and SMEs, which produce 80% of Ukrainian GDP. The League has 28 representative offices abroad and 39 committees for various sectors. ULIE is an observer organization in business at OECD and cooperates with BusinessEurope. It established several bilateral business councils (with Lithuania, Latvia and others).

For more information, please visit https://uspp.ua/en/.

The NAM recently released its Top 8 Manufacturing Trends for 2023—a guide to the opportunities ahead and the resources that the NAM can offer. Here is what to look out for this year and beyond.  

Advanced and emerging technology: Manufacturers are investing in a multitude of new technologies, including artificial intelligence, virtual reality, machine learning and more. Automation and robotics are enhancing workers’ abilities but will also require many more high-skilled employees. Though the workforce shortage is a challenge, digital technologies will help manufacturers become more resilient, efficient and profitable.

• NAM resources: How do you maximize these opportunities? The NAM has resources for you, including the Manufacturing Leadership Council (the NAM’s digital transformation arm), the Innovation Research Interchange (the NAM’s innovation division) and the MLC’s Manufacturing in 2030 Project.

Supply chain resilience: As manufacturers face long lead times, increased costs and a scarcity of raw materials, they are taking steps to boost supply chain resilience through reshoring, cybersecurity, increased supplier pools and more.

• NAM resources: Manufacturers can benefit from resources like CONNEX Marketplace, which helps connect nearby manufacturers and suppliers; the NAM’s Supply Chain Hub—a continually updated collection of webinars and policy documents focusing on supply chain issues; and useful case studies highlighting best practices.

Talent disruptions and opportunities: Manufacturers are confronting a range of challenges around the workforce, including labor shortages and skills gaps, while also figuring out how to take advantage of previously untapped talent pools. 

• NAM resources: If you are searching for ways to enhance your employee benefits, The NAM Manufacturers Retirement 401(k) and Savings Plan offers manufacturing employees secure benefits for the future, while Innovation Management Workshops give manufacturing leaders the skills to build innovative and creative teams. Meanwhile, the Manufacturing Institute—the 501(c)3 nonprofit workforce development and education partner of the NAM—promotes a range of events and initiatives designed to expand and diversify the manufacturing workforce as a whole. 

Cybersecurity: The threat from bad actors is real, and strong cybersecurity has become critical to manufacturing operations up and down the supply chain. At the same time, manufacturers will have to be on the lookout for new cybersecurity reporting requirements.

• NAM resources: The NAM can help, with support like the NAM’s complimentary Cyber Risk Assessment. NAM Cyber Cover offers cyber insurance and risk mitigation, and you can check out these videos from manufacturing executives laying out best practices for cybersecurity defenses. 

Post-pandemic growth and expansion: Long-term goals shouldn’t be downgraded, despite an uncertain economy. Manufacturers should keep pursuing technological advances, navigate government incentives and stay open to mergers, acquisitions and other investments.

• NAM resources: The NAM Incentives Locator helps manufacturers find funds and tax credits to help their business, while the MLC offers networking opportunities for manufacturing leaders.

Tough economic outlook: There’s no doubt that manufacturers face economic headwinds. That means manufacturers need to look for ways to be nimble and responsive to changing realities and able to work more efficiently than ever. 

• NAM resources: Tools like NAM Shipping & Logistics give manufacturers discounts on shipping and freight, while NAM Energy offers conversations with energy advisers who can help adjust energy use strategies. IRI Coffee Houses promote virtual conversations with innovation leaders to discuss new developments and opportunities.

Sustainability: Manufacturers are committed to strengthening operations and maintaining a healthy planet at the same time. More than ever, manufacturing companies are looking for ways to reduce carbon emissions.

• NAM resources: The NAM provides resources that can help manufacturers with innovating for sustainability, as well as rethinking end-of-life technology value. Manufacturers can also learn about how digital solutions drive sustainability in manufacturing. 

Looking ahead to 2030: Changes in the manufacturing industry and in the world around us—from population growth to the rise of a new middle class to increased interconnectivity—have manufacturers planning for big changes in the next decade. 

• NAM resources: The IRI offers a forum for manufacturers to connect with R&D leaders, while the MLC’s Next Phase of Digital Evolution report shows how manufacturing leaders can plan their long-term futures.

 Learn more: Take a look at the full guide for more details and to find out more about the NAM resources that will help manufacturers deal with these key trends.

Washington, D.C. – The National Association of Manufacturers’ Council of Manufacturing Associations announced new 2023 leadership at the CMA 2023 Winter Leadership Conference. Melissa Hockstad, president and CEO of the American Cleaning Institute and the 2023 Association Executive of the Year as named by Association TRENDS and CEO Update, will serve as chair of the CMA Board of Advisers. Jennifer Abril, president and CEO of the Society of Chemical Manufacturers & Affiliates (SOCMA), will serve as vice chair. Made up of more than 200 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.

“The Council of Manufacturing Associations is a positive force for collective advocacy, industry thought leadership and association operations. We strive to be the group industry associations choose,” said Hockstad. “The country depends on our leadership, and I look forward to collaborating with the manufacturing association community to strengthen our voice and advance our competitiveness agenda in this new year.”

“Melissa and Jennifer are experienced and accomplished leaders who are well-positioned to continue the cooperative spirit that has made the CMA such an influential organization for our industry. To add to her long list of achievements, Melissa was just named 2023 Association Executive of the Year by Association TRENDS and CEO Update,” said NAM President and CEO Jay Timmons. “I look forward to working with them to promote plans and policies that keep manufacturing resilient and uphold the values that have made America exceptional: free enterprise, competitiveness, individual liberty and equal opportunity.”

Prior to leading the ACI, Hockstad held senior leadership positions at American Fuel & Petrochemical Manufacturers and SOCMA. Hockstad previously served as CMA vice chair.

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.

Newly appointed 2023 CMA board members include the following:

• Holly Alfano, CEO of the Independent Lubricant Manufacturers Association
• Kerwin Brown, president and CEO of the Bakery Equipment Manufacturers and Allieds
• Charles Johnson, president and CEO of The Aluminum Association
• Heather Rhoderick, president of the Valve Manufacturers Association of America
• Corey Rosenbusch, president and CEO of The Fertilizer Institute
• Leslie Sarasin, president and CEO of FMI – The Food 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 12.9 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 www.nam.org.

With supply chains in flux across the country and around the world, manufacturers frequently face obstructions that can hold up their operations and delay critical deliveries.

That’s where CONNEX Marketplace can help.

What it is: Built in collaboration with the NAM, manufacturers and other manufacturing associations, CONNEX Marketplace is a one-stop shop that brings together U.S. manufacturers and suppliers in one clear, verified and searchable database—offering a full picture of the supply chain and helping manufacturers and suppliers find the partners they need.

Why it matters: Especially at a time when supply chains are increasingly complex and constantly under strain, it’s important for manufacturers to understand the full journey of their products.

• By providing manufacturers with detailed data visualization tools as well as blacklist verification, CONNEX helps manufacturers reduce risks in their supply chains and avoid problematic routes and purchases.

How it works: Comprehensive local and national search tools offer manufacturers the opportunity to post their needs and to connect easily and quickly with suppliers using criteria including capabilities, equipment, processes and materials.

• By matching needs with available supplies, the site also helps manufacturers find alternate suppliers when necessary and improve the diversity and resiliency of their supply chains to guard against shocks and snags.

Governors support it: State leaders across the country are speaking up about the power of CONNEX, laying out the value of the program and urging manufacturers to get involved.

• “I think what you’re hearing here with CONNEX … you’re hearing the doors opening on great opportunities for Wyoming,” said Wyoming Gov. Mark Gordon. “It’s gonna expand our footprint regionally, nationally and globally.”
• CONNEX “better connects the Utah manufacturing industry, shortens and reduces supply chain costs and provides new business opportunities to Utah manufacturers and suppliers,” said Utah Gov. Spencer Cox.
• “CONNEX is hugely important,” said Oklahoma Gov. Kevin Stitt. “We’re trying to get everyone to look on this CONNEX website.… If you’re not on that and you’re a manufacturer in Oklahoma, we encourage you to engage with that.”

What we’re saying: “This one-of-a-kind tool empowers manufacturers of all sizes, both buyers and sellers, to be found, increase supply chain optimization and mitigate risk,” said NAM President and CEO Jay Timmons. “It’s a game-changer for U.S. manufacturers.”