Innovation and Technology

California’s new sweeping data privacy law will go into effect in the New Year, highlighting the need for Congress to act quickly on federal legislation to provide certainty for the manufacturing industry. While manufacturers work to comply with the California Consumer Privacy Act, the industry is also concerned that other states will pursue their own privacy legislation, creating a patchwork of laws. Complying with conflicting state privacy laws will be costly for manufacturers, but a national approach to data privacy will strengthen manufacturers and support consumers.

Congress recently examined various approaches to federal consumer data privacy legislation at a hearing before the Senate Committee on Commerce, Science & Transportation. Industry took the opportunity to call for swift action.

“U.S. privacy law has generally failed to keep pace with advances in technology and to provide Americans with the protections they want and need in this digital age,” said Julie Brill, Microsoft’s Corporate Vice President, Deputy General Counsel, and Chief Privacy Officer. “Today more than ever, there is an urgent need for a comprehensive U.S. privacy law that provides strong protections for all consumers in the United States within a framework that enables human ingenuity and American innovation to continue to thrive.”

Echoing Microsoft’s call, the National Association of Manufacturers underscored the need for congressional action to support manufacturers in a letter to the Committee. Manufacturers are developing innovative products and transforming the manufacturing process with the latest technologies, and data is an important source and by product of these breakthroughs. Manufacturers use data to improve efficiency, safeguard plant security and improve customer experience.

State-by-state privacy requirements would create burdensome regulations that hinder the development of new technologies and products. According to NAM’s Director of Innovation Policy Stephanie Hall, federal legislation would streamline the compliance picture for manufacturers while advancing individuals’ privacy and promoting U.S. industrial competitiveness.

“Manufacturers support a data privacy policy that provides flexibility for innovation, addresses domestic and global inconsistencies in privacy regulations and advances U.S. economic growth and technological leadership,” Hall said.  “Without clarity from federal law, uncertainty will continue for our industry, causing manufacturers to sort through conflicting state privacy laws across the country.”

The U.S. is facing a data-intensive future, and manufacturers are leading the development and application of emerging technologies, including automation and artificial intelligence. Congress must act quickly to pass comprehensive legislation that provides uniform privacy rules and helps prepare the U.S. for the next generation of innovative technologies.

The NAM’s Makers Series is an exclusive interview series featuring creators, innovators and trailblazers in the industry sharing their insights and advice. Each month, we ask founders, executives and leaders of innovative firms what it takes to be a leader for manufacturers and makers in America.

Meet Rick Schostek, Executive Vice President of Honda North America, Inc. In this edition of NAM’s Makers Series, he explains why focusing on the customer is the key to manufacturers’ success.

The United States has a long history of medical and pharmaceutical innovation and leads the world in the development of new treatments and cures. Yet, some policymakers have suggested imposing top-down regulations such as unproven drug importation and index pricing to reduce drug prices. Those actions would put this innovation at risk. The gains were are making today in COVID treatments and vaccines now shine a spotlight on the importance of a market-oriented health care ecosystem that can respond to new and emerging health threats in real-time.

National Association of Manufacturers Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling explains drug price controls and how they could impact everyday Americans.

What’s the problem with price controls?

Everyone agrees with the goal of reducing the costs of health care—and prescriptions in particular. The question is how to get there. One way we know will not work is via government-imposed price controls or other arbitrary measures. Non-market-based approaches like this are antithetical to the free enterprise system that forms the bedrock of our economy and way of life. Once we allow the government to run negotiations on our medicines, the government will have an even stronger incentive to run our health care—and that is exactly what many who support price controls like this would like to see.

Why is this important now? 

We are in a period of tremendous breakthroughs and medical discovery, led by pharmaceutical manufacturers in partnership with the National Institutes of Health, universities and other private groups. Pharmaceutical manufacturers spend more on research and development than any other industry, creating new treatments and cures that have the potential to save and improve millions of lives. In addition to funding R&D up front, pharmaceutical manufacturers also put a sizeable share of their revenue back into R&D so that today’s treatments can help fund tomorrow’s cures. Imposing arbitrary price controls will threaten those investments and undermine a system that is working to save millions of vulnerable people.

How should the new Congress and Administration approach high drug prices?

There’s no doubt that health care costs have been rising too quickly for far too long for American families. Those costs have contributed to wage stagnation for workers and discouraged other investments in the workplace. But we need to address inefficiency, affordability, improved outcomes and flexibility to drive down health care costs without abandoning market-based approaches. Any solutions should be guided by the four pillars that have made America exceptional: free enterprise, competitiveness, individual liberty and equal opportunity.

That will require a comprehensive approach to the various forces that strain the system, recognizing the importance of innovation as a tool to reduce costs and improve health outcomes. Congress and the White House should support patient access to lifesaving medicines—and the American manufacturers and researchers that deliver them—instead of upending American health care in favor of an uncertain future.