Innovation and Technology

Policy and Legal

“March-In” Rights Would Harm Manufacturing, Economy

a person sitting at a table using a laptop

So-called “march-in” rights that would enable the federal government to seize manufacturers’ intellectual property are “a major threat to manufacturers in America,” according to a new seven-figure ad campaign launched by the NAM.

What’s going on: Last month, the Biden administration issued a proposal that would allow the government to take over privately held patents if those patents had been developed in part with federal research dollars.

The problem: Undermining companies’ IP rights would roll back the progress made under the Bayh-Dole Act, which allowed for commercialization of federally funded research and “unlocked all the inventions and discoveries that had been made in laboratories throughout the United States with the help of taxpayers’ money,” according to a recent op-ed in The Hill.

  • Because the government is “inviting march-in petitions on every patented technology that benefited from even modest federal grants,” the proposal could “decimate American innovation [and] … stifle investment in climate change, sustainable agriculture, advanced computing, energy, medicines” and more, according to the op-ed writers, two former undersecretaries of commerce for intellectual property.
  • In addition, the proposal is “putting American jobs at risk,” according to the NAM’s new ad.

The NAM says: “This radical new proposal is a major threat to manufacturers in America and counter to the president’s goals of growing the sector,” NAM President and CEO Jay Timmons said.

  • “Empowering the government to march in and seize the rights to private-sector patents and technologies threatens American innovation and R&D, putting millions of well-paying manufacturing jobs at risk. Policymakers must protect manufacturers’ intellectual property rights and stop this government overreach.”
Research, Innovation and Technology

Manufacturers Launch Seven-Figure Ad Campaign Opposing Biden Administration’s March-In Proposal

Washington, D.C. – The National Association of Manufacturers has launched a seven-figure television and digital advertising campaign opposing the Biden Administration’s new proposal that would allow the government to march in and seize the rights to groundbreaking innovations developed by manufacturers.

“This radical new proposal is a major threat to manufacturers in America and counter to the president’s goals of growing the sector,” said NAM President and CEO Jay Timmons. “Empowering the government to march in and seize the rights to private-sector patents and technologies threatens American innovation and R&D, putting millions of well-paying manufacturing jobs at risk. Policymakers must protect manufacturers’ intellectual property rights and stop this government overreach.”

To view the latest television ad, click here.

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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 nearly 13 million men and women, contributes $2.75 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Press Releases

NAM Announces New Board Leadership

Seasoned Executives Take Helm at NAM as Policymakers Debate Competitiveness Issues for Manufacturing Industry

Washington, D.C. – The National Association of Manufacturers announced its Board of Directors has elected Johnson & Johnson Executive Vice President and Chief Technical Operations and Risk Officer Kathy Wengel as board chair and Rockwell Automation Chairman and CEO Blake Moret as vice chair.

“Building on the solid foundation left by Immediate Past Chair Jim Fitterling, chair and CEO of Dow, the NAM enters 2024 with continued successful results for our members, strong financial growth and forward momentum with Kathy as chair and Blake as vice chair. Their companies are at the forefront of modern manufacturing, representing the future of what our industry can accomplish,” said NAM President and CEO Jay Timmons. “Over the past often turbulent and unpredictable years, they both have used their platforms to champion our industry and help secure landmark legislation. In addition to being a strong global voice on supply chain reliability and manufacturing for the future, Kathy is a committed force for bringing more diversity into the industry through her support of the Manufacturing Institute’s Women MAKE America Initiative, in addition to her service on the MI Board.

“Blake represents some of the most exciting, high-tech elements of manufacturing, as a leader in the industrial automation and digital innovation space. His commitment to building the next-generation manufacturing workforce was evident when he worked to bring the NAM and MI’s Creators Wanted campaign to Rockwell’s Automation Fair in Chicago. Kathy and Blake’s counsel has been instrumental in shaping the NAM’s policy agenda and elevating the values that make America exceptional and keep manufacturing strong: free enterprise, competitiveness, individual liberty and equal opportunity.”

“The NAM is best in class for its ability to address important challenges facing the manufacturing industry—from bolstering supply chains to harnessing the power of new technology,” said Wengel. “It is a true privilege to take on this new responsibility as NAM board chair. As the association looks to the future, we will seize opportunities to advance policies that foster growth, promote sustainability and ensure the readiness and diversity of the modern workforce.”

“As our industry looks to the future, manufacturing plays a critical role in solving some of the greatest challenges facing society and is at the vital core of the American economy,” said Moret. “It is an honor to represent manufacturing across America as board vice chair of the NAM. I look forward to working with this influential and well-respected association to move our industry forward.”

Wengel serves on the Board of Directors of the MI, the workforce development and education affiliate of the NAM, and has been instrumental in bringing more women into manufacturing through the MI’s Women MAKE America Initiative. Moret has worked closely with Creators Wanted, the industry’s largest campaign to build the workforce of tomorrow and is a past chair of the MI.

The two leaders take on their new roles at a time when manufacturers are confronting growing regulatory hurdles from Washington, D.C., geopolitical instability and policy uncertainty; answering significant questions about the role of advanced technologies, such as artificial intelligence; and working to ramp up implementation of historic legislation like the Bipartisan Infrastructure Law and the CHIPS and Science Act.

The NAM Board of Directors guides the association’s leadership in policy advocacy, legal action, operational excellence, workforce development and news and insights. More than 200 manufacturing leaders serve on the NAM Board, helping advance an agenda that enhances manufacturing competitiveness and the industry’s ability to improve lives in the United States and around the world.

The new board leadership was elected at the September meeting of the NAM Board of Directors.

-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 $2.85 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Business Operations

From Moonshot to Reality: Syzygy Plasmonics’ Emissions-Free Reactor

Syzygy Plasmonics is out to disrupt the $1 trillion chemical-manufacturing value chain.

The Houston-based startup, which bills itself as a “deep decarbonization company,” builds fully electric chemical reactors that are powered by light rather than traditional combustion.

That difference, CEO Trevor Best told us, is what will lead to disruption.

The big picture: “Chemical manufacturing is a foundation of modern human society,” Best pointed out. “With petroleum, natural gas and air, [companies] are able to create a wide variety of critical products,” from fuels and fertilizers to textiles and pharmaceuticals.

  • “But today, it’s difficult to abate carbon emissions in chemical manufacturing,” he added. “That’s the problem Syzygy is working to solve.”

The backstory: In 2016, Best and Syzygy co-founder Dr. Suman Khatiwada “were looking for something disruptive” to invest in, Best said. “We reviewed lots of publications from major universities, and one day we happened to read about something happening at Rice University. This [idea] just would not die. We could not find a reason why it wouldn’t work, but no one else saw it.”

  • After three decades of research, Rice researchers Naomi Halas and Peter Nordlander had developed a new kind of photocatalyst—a material that uses light to speed a chemical reaction—capable of “substantially lower[ing] the temperatures required for industrial-scale hydrogen production,” according to the university.
  • “We quickly realized no one had ever made an industrial chemical reactor that could do that,” Best continued. He and Khatiwada contacted the researchers and eventually purchased the rights to the technology.
  • Soon after, Syzygy was born.

Breaking records: In 2018, Syzygy successfully duplicated the Rice researchers’ experiment with a microreactor—but the result wasn’t as efficient at creating hydrogen as Best and Khatiwada wanted.

  • They continued to scale up their testing, and by 2022, thanks to an advanced, large-cell reactor, the technology could produce hydrogen at 75% efficiency, surpassing the efficiency of traditional industrial chemical reactors.
  • “We’re now on par with best-in-class electrolyzers” in terms of hydrogen production, Best said.

Affordable and emissions-free: One of the best things about Syzygy’s reactor? It produces no emissions, a characteristic the company believes will help it reach its goal of removing one gigaton of carbon dioxide emissions from the atmosphere by 2040.

  • Another selling point is that the reactor is made with low-cost, readily available materials. Earlier this year, Syzygy unveiled a six-foot-tall reactor—made of “low-cost steel and glass,” according to Best—at its industrial demonstration plant just outside Houston, where it runs every day.
  • Capable of multiple types of chemical reactions, the reactor has drawn interest from multiple companies wanting to deploy the technology in their own operations. Syzygy already has signed several contracts.

Up next: The company plans to bring three separate reactions to market at once in the near future.

  • In addition to being emissions-free, the three reactions cost less than their traditional-combustion-powered counterparts, by between 20% and 45%, according to Syzygy.

The last word: Syzygy doesn’t envision many limits in its future, said Best.

  • “We see this thing going global,” Best said. “We’re talking to customers all over the world. … [In the beginning,] I thought I was crazy. This was a moonshot. But it has exceeded all our expectations.”
Press Releases

New Study: “Right-to-Repair” Stifles Innovation, Threatens Consumer Safety

Washington, D.C. – The National Association of Manufacturers released a new study, “The Economic Downsides of Right-to-Repair,” which highlights the cost to the environment, consumer safety and manufacturing innovation of providing unfettered access to complex software and components in manufactured goods. The study analyzes the wide range of unintended and potentially harmful consequences of “right-to-repair” legislation.

The study finds that instituting “right-to-repair” polices directly counteracts many federal laws put in place to protect both manufactures and consumers. The study states that, “bypassing the proper channels for repair will come at a steep cost to quality, performance, consumer safety, the environment and the broader U.S. economy.”

Notably, “right-to-repair” policies could seriously disrupt original equipment manufacturers’ supply chains, which would leave many consumers—especially in rural communities—without a reliable and efficient place to get a repair. “This could increase costs for customers significantly, as delays in placing equipment back in service directly affect a business’s bottom line,” the study warns. The study further highlights an Environmental Protection Agency estimate that more than 500,000 tons of excess emissions have entered the atmosphere since 2009 due to operators disabling or modifying emission controls in vehicles across multiple industries.

“For decades, manufacturing innovation has created new products and technologies that improve modern life,” said NAM Managing Vice President of Policy Chris Netram. “Unfortunately, so called ‘right-to-repair’ policies would threaten these programs, resulting in harm to the environment and putting American’s data and safety at risk.”

Background: In 2021, President Joe Biden signed an executive order encouraging the Federal Trade Commission to enact policies limiting OEMs’ ability to prevent nonauthorized entities from performing certain repairs. The NAM submitted comments to the FTC, calling “right-to-repair” legislation a, “solution in search of a problem.” As of 2023, New York, Minnesota and Colorado have enacted “right-to-repair” legislation, and 23 other states have also considered legislation that would force manufacturers to provide direct access to replacement parts, grant unfettered access to the central processor and further limit their ability to constrain what consumers can do with their product.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Business Operations

How Manufacturing Leaders Are Bolstering Their Cyber Defenses

Cybersecurity threats are increasing, while budgets are getting tighter—so what are C-suites doing about it? The NAM, in partnership with PwC, recently conducted a survey of cyber leaders at manufacturing companies to reveal how they think about their operational security and where they aim to make progress.

Why they do it: When asked why their companies are reinforcing the security of their operational technology, cyber leaders showed that they are thinking deeply about their firms’ long-term development.

  • Nearly 50% of respondents said they aimed to defend against ransomware—a smart response, given that 2022 saw almost double the number of ransomware attacks on industrial environments as 2021. Worse yet, 70% of those attacks targeted manufacturers.
  • The second most popular answer, however, was the companies’ own internal roadmaps outlining their priorities and technology requirements. This shows how integrated cyber defenses are into companies’ long-term plans; they know that as their operations grow more sophisticated and complex, their cyber defenses have to do so as well.
  • Last, cyber leaders also cited the evolution of “Manufacturing 4.0,” as they recognize that the rising sophistication of factories and “smart” technology increases attack surfaces and vectors, therefore requiring smarter and more extensive cybersecurity.

Another positive sign: One of the key indicators of success for cyber leaders is whether their IT teams—which traditionally handle cyber defenses—are in sync with their teams handling operational technology.

  • On that score, the survey had good news: more than 30% of respondents said those teams were fully integrated at their companies, and almost 40% said they were partially integrated.

Reporting back: A cyber chief needs to keep the rest of the C-suite and the board informed, but not overwhelmed. So what do they tell other company leaders?

  • Nearly 80% of respondents said they give updates on what you might expect: the deployment of technical controls or countermeasures to attacks, as well as progress in implementing their roadmaps.
  • About 50% of respondents also said they give updates on security audits, and almost 40% provide reports on compliance with regulations.

In their own words: Several CISOs who reviewed these findings for the NAM explained the reasoning in greater detail:

  • One CISO said that “getting into quantitative discussion with boards around risk is hard, so the easier route is to do implementation updates, which provide measurable results.”
  • Another CISO said “it’s better to share about what is being done, including patches and roadmaps [than overloading boards with background information].”

Get involved: Are you interested in finding out firsthand how companies handle real cyber challenges? Tell your CISO about the Manufacturing Cybersecurity Advisory Council, a group of CISOs from around the industry who gather every other month for a confidential discussion moderated by the NAM’s COO, Todd Boppell.

  • The meetings feature guest speakers, feedback on important issues and discussions of current trends, with a focus on how CISOs at large manufacturers should handle threats throughout the supply chain.

Weigh in: If you’d like to share your company’s own approach to operational technology security, you can take the NAM and PwC’s survey yourself! 

Further reading: Lastly, check out PwC’s list of tips for companies looking to beef up their cyber defenses.

Press Releases

NAM Bolsters Government Relations Leadership

Washington, D.C. The National Association of Manufacturers named Stef Webb as its new Managing Vice President of Government Relations. Webb joins the NAM from Gopuff, the fast-growing $15 billion global consumer goods and food delivery company, where she served as director of corporate affairs, helping to establish its federal affairs program and spearhead public and government affairs during key market entries globally.

“Whether she’s bringing together lawmakers and line workers in Midwest manufacturing facilities or building relationships on Capitol Hill or in world capitals, Stef has built a sterling reputation as an effective and collaborative advocate who does not relent until the policies or priorities she’s fighting for are across the finish line,” said NAM President and CEO Jay Timmons.

Reporting to NAM Executive Vice President Erin Streeter and working alongside the organization’s broader advocacy leaders, Managing Vice Presidents Jamie Hennigan (Communications and Public Affairs), Chris Netram (Policy) and Chrys Kefalas (Brand Strategy), Webb will lead the association’s government relations strategy to advance the competitiveness of manufacturers in the United States.

“In this unpredictable and fast-changing political environment, it’s never been more important to have a government relations team that is steps ahead of where the policy opportunities and challenges could go,” said Streeter. “With Stef helping to lead our team, we’ll build on our track record of preparing for tomorrow, anticipating future needs and being a credible and trusted go-to voice and resource for manufacturers and our nation’s leaders.”

Webb brings proven experience in many areas critical to continuing to drive unapparelled results for the industry. She has held leadership roles in government relations, policy, political fundraising, political affairs, communications, membership, finance and operations. Prior to Gopuff, Webb served as director of federal government affairs at NAM member company Anheuser-Busch, showcasing her ability to bridge divides, winning support for key manufacturing priorities in the United States and creating initiatives—like Brew Across America—that brought policymakers together. During this part of her career, Webb’s successful and effective advocacy work first came to the attention of Timmons and Streeter.

“Manufacturing is the backbone of the American economy and the foundation of business in America, impacting nearly every industry and person,” said Webb. “The NAM has built a reputation as the most trusted voice and resource for manufacturers in the United States, and I’m excited to join this team to create an even better environment for manufacturers to compete, to create more jobs and to improve lives.”

Webb also serves her country as an officer in the United States Navy Reserve.

-NAM- 

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Workforce

Thermo Fisher Scientific Opens Doors—and Career Paths—to Students on MFG Day

If you’re a jobseeker, Thermo Fisher Scientific wants you to know there are a plethora of job opportunities available at the company whether you have a science or engineering background or not.

At a well-attended MFG Day event for college students at its Frederick, Maryland, campus in October, both attendees and current employees said they were amazed to learn of the wide array of positions available at Thermo Fisher, a maker of life-sciences solutions and equipment.

Choose your own (career) adventure: “There’s a lot of opportunities here,” said Jude Ankrah, a cyber security engineer at the company’s Frederick location and one of the MFG Day’s event ambassadors, who helped lead student tours. “You can … make your own opportunities. There’s so much [internal] career movement. And it’s so flexible.”

  • The MFG Day event drew about 60 students from four local colleges. It consisted of tours of the site’s distribution center, research-and-development cell biology building and corporate infrastructure and security center.
  • Juan Argueta, who is working toward a cybersecurity degree at Frederick Community College, said he hadn’t expected the life-sciences giant to need people with his expertise.
  • “I found out about it at school. I checked [the website], and there are actually a lot of openings in cybersecurity here,” Argueta told the NAM. “So I decided to come. There are so many great benefits [at Thermo Fisher]—including tuition reimbursement—for employees.”

Science not required: It’s a widely held misconception that people working at Thermo Fisher are all scientists and engineers, said Lisa Sweeney-Walker, senior executive assistant to Chief Scientific Officer Dr. Karen Nelson. 

  • “You don’t have to have a Ph.D. [or even] a science background” to get hired at Thermo Fisher, she said. “We have human resources, we have warehousing positions, we have other things.”
  • In fact, the Frederick campus’s largest number of job openings is in manufacturing and distribution, said Frederick Site Leader and Senior Director of Manufacturing Operations Keith Howell, who spoke before the site tour. “We need both college-educated and non [degree-holding] hires,” he said.

Great strides: Thermo Fisher is doing some amazing things in science—and MFG Day attendees were able to watch some of its operations through interior windows at the R&D cell biology building.

  • There, chemists are working to create “shells” for the next mRNA vaccines, Thermo Fisher Director of R&D David Kuninger told event attendees.
  • Scientists at the company—who developed many of the tools involved in CAR T-cell therapy, a cell-based treatment technique in which a patient’s own T-cells are “programmed” in a lab to find and fight cancer cells—are now engineering an immune cell to fight cancer, he continued.

A path at Thermo Fisher: Regardless of your career interests, you’re likely to be able to pursue them at Thermo Fisher, said Shayne Boucher, a staff scientist in cell and gene therapy at the company.

  • “Everyone has their own unique path,” he told the students. “There is an opportunity here to find out what works for you.”
Press Releases

Manufacturers: AI Represents a Tremendous Opportunity for Modern Manufacturing

Washington, D.C. – Today, following the release of President Joe Biden’s Executive Order on Artificial Intelligence, National Association of Manufacturers Managing Vice President of Policy Chris Netram released this statement:

“Artificial intelligence represents a tremendous opportunity for modern manufacturing. AI is already helping manufacturers improve safety and training and empower workers to be even more innovative. It is unlocking incredible opportunities for predictive maintenance and product development, and manufacturers are continuing to develop further applications for AI. Manufacturers look forward to working with the administration following the executive order to ensure that any AI standards adopted at the federal level are developed with strong industry participation, support innovation and R&D, remain scaled based on the guardrails necessary for a particular technology or application, protect companies from unnecessary liability and bolster U.S. competitiveness and leadership in AI. Manufacturers also support strong data privacy and cybersecurity protections as well as robust investments in workforce development and prioritizing workforce needs through reforms to our immigration system.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 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.

Policy and Legal

Refrigerator Manufacturers Call for a Regulatory Freeze

If you’ve ever found yourself grateful for a cold beverage on a hot day, chances are you’ve got Hoshizaki America to thank. The company was established in Los Angeles, California, in 1981 and is one of the leaders in commercial refrigeration, manufacturing refrigerators and icemakers that are used in hotels, hospitals, arenas, schools and more.

Its manufacturing facility was completed in Peachtree, Georgia, in 1986, and it proudly makes its products in America—but in recent years, that commitment has become much more costly.

The problem: Manufacturers like Hoshizaki America are meticulous in adhering to the energy and environmental standards put forth by federal agencies, including the Environmental Protection Agency and the Department of Energy. However, the increased pace of regulation and a lack of coordination between agencies are making it impossible to keep up, according to Hoshizaki America Compliance Engineer Stephen Schaefer.

  • “We have many agencies that we have to talk to and be in compliance with, and right now, we’ve got a lot of things coming to a head all at the same time,” said Schaefer.
  • “The Department of Energy is setting minimum energy-efficiency standards, the EPA is saying what refrigerants we’re allowed to use, and we’ve got safety standards being updated. That’s a lot of testing and evaluation.”

The timeline: It isn’t just the volume of work that needs to be done; it’s also the short timelines. Appraisals of the industry’s products used to come every six or seven years, allowing companies to develop new technologies to meet new regulations.

  • But now, as different agencies offer different rules on overlapping and shorter timelines, companies are finding it impossible to research, build and test new products in time.
  • “We fully agree that there are things we want to do environmentally, but there needs to be time given,” said Schaefer.

The scope: Hoshizaki isn’t alone. Schaefer is chair of the Technical Liaison Committee for the North American Association of Food Equipment Manufacturers, and much of the organization’s membership is experiencing the same challenge.

  • According to a recent NAFEM survey of its membership, 66% of the companies indicated that their biggest challenges are the volume of regulations and cost of compliance.

The tradeoff: Schaefer argues that meeting these overlapping and pressing deadlines requires diverting funds that would otherwise be used for innovation. If companies are forced to spend more money figuring out how to meet requirements using existing products, they will have less money to spend on developing new products.

  • “When different standards like this go into place, you’re taking away from ingenuity for new products and just making sure that existing products can be sold,” said Schaefer. “It becomes very tough to have newer innovation.”
  • In the NAFEM survey, respondents said that if the regulatory burden was eased, they would be able to redirect funds to purchase new equipment, hire more employees, increase wages and benefits and reinvest in their manufacturing business.

The bottom line: “We want to help environmentally in every way possible—to be a good steward for energy efficiency and environmental concerns,” said Schaefer. “But we also want agencies to work together for the same goals, in a fair way that doesn’t impede ingenuity or increase the cost to the end user.”

Read more: Federal regulations are burdening manufacturers disproportionately—costing small companies an average of $50,100 per employee, according to a new NAM-commissioned study.

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