Research, Innovation and Technology

The NAM wrapped up its “Competing to Win” Tour in Europe with key meetings in Brussels and Paris, cementing important partnerships and building consensus on the imperative to strengthen U.S. alliances with European nations. It also advocated policies that will enable manufacturers to withstand geopolitical risks and threats to global stability.

Brussels power meetings: In Brussels, the epicenter of EU political activity, NAM President and CEO Jay Timmons met with a who’s who of experts deeply involved in trade and economic policy. He touched on a wide range of priorities including free trade agreements, permitting reform in the United States, IP, energy security and regulatory certainty.

• Timmons met with top trade policy leaders in the EU, including Tomas Baert, a trade adviser to European Commissioner Ursula von der Leyen, and Member of European Parliament and Chairman of the Trade Committee Bernd Lange.
• The team also met with BusinessEurope, led by Director General Markus Beyrer and Deputy Director General Luisa Santos, and participated in a roundtable organized by BDI Brussels Head of Office Heiko Willems. The roundtable also included some of BDI’s leading German member companies.

Evening event: The finale of the day in Brussels was a reception co-hosted by NAM Council of Manufacturing Associations member Distilled Spirits Council at the residence of U.S. Ambassador to the EU Mark Gitenstein.

• Timmons and NAM Vice President for International Economic Affairs Ken Monahan discussed the U.S.-EU relationship and the NAM’s priorities with key EU leaders on trade, including European Parliament members Reinhard Hans Bütikofer and Radek Sikorski.

French connection: In France, Timmons met with the ardent champion of manufacturing Benoit Bazin, chief executive officer of Saint-Gobain, one of the world’s largest building materials companies and the manufacturer of innovative material solutions. In North America, Saint-Gobain has approximately 150 locations and more than 15,000 employees.

• The NAM also visited AmCham France. Managing director Eglé de Richemont said following the meeting: “Today, AmCham France had the privilege to welcome three top representatives from the [NAM] to discuss over key themes, including the importance of close economic partnership between the U.S. and France, the criticality of resilient manufacturing in the U.S., France and across Europe and the importance for manufacturers of standing with Ukraine now and tomorrow for the rebuilding of the country.”

The final word: After meeting with other manufacturers on the final leg of his tour, Timmons remarked “We’ve been hard-charging now for almost two weeks, and it’s truly inspiring how unified our partners across the Atlantic are in their solidarity with Ukraine and in meeting this moment with not just talk but also action. We’re just getting started.”

Alison Holland was almost predestined to be an engineer at General Motors. Born to an electrical engineer mother and a mechanical engineer father, both of whom work at GM, she grew up entirely familiar with the discipline and the company.

Today, she’s working to establish GM’s first-ever assembly operations for a new EV battery platform at Factory ZERO in Detroit-Hamtramck, Michigan. Recently named an Emerging Leader by the Manufacturing Institute’s 2023 Women MAKE Awards, which honor outstanding women in the industry, Holland spoke to us about her career, her work helping other young women find their footing and her goals for the future. 

Not your mother’s industry: As the daughter of a female engineer, Holland has a unique perspective on the role of women in the industry. How was her mother’s experience different from her own?

• Women were much more in the minority back then, Holland said, and her mother “had to work even harder to earn her way to the top.”
• Holland learned a great deal about managing her own career from her mother, a kind, patient parent who never missed her four children’s activities or let the pressures of work invade her home life.

Choosing manufacturing: While her parents’ example set her on the path toward manufacturing, Holland also attributes her comfort in the industry to her competitive nature.

• The former college soccer player says manufacturing has a similar feel to sports and is rewarding for those who want to excel in a “high-paced” environment.
• “I wanted a career where I could be challenged and see my efforts pay off with real-time results”—just as she did on the field.

A sustainable career: At GM, Holland is part of an exciting project: launching GM’s first battery assembly plant under the same roof as EV truck assembly at Factory ZERO. The battery, or Rechargeable Energy Storage System, is based on GM’s Ultium battery platform, which will increase the range, power and performance of a number of different vehicle types. She works with coordinators and engineers at different sites, making sure best practices are codified and shared throughout the company.

• Holland loves her work because “it’s a new challenge every day. I’m helping to reinvent the wheel when it comes to battery production. The small decisions we make will have a long-lasting impact.”

A young leader: Holland considers herself lucky to have had excellent female mentors, who helped her learn to “make her opinions heard.” Today, she helps other people, including many women, find support for their own goals.

• As part of GM’s early career development program for manufacturing engineers, Holland organized events like lunch-and-learns so that young workers could hone their professional skills together and build productive relationships. She also helped participants find and benefit from mentors who previously went through the program.
• Holland also provides coaching to women who are experiencing professional “firsts”—such as the first time they work on the production line, or encounter a new process, or lead teammates with unique backgrounds. Holland began this work while serving as a mentor in the early career development program and has kept it up as she leads her own team.

What’s next? When Holland looks ahead, all she sees are opportunities. “I am super interested in sustainability. I want more experience in other production departments, so I can understand all the other sides of the business. I want to have more cross-functional experiences, so I can better understand what people are asking of me.” 

The last word: Holland has simple but important advice for young women starting out in the industry. “Learn as much as you can. Take any opportunity to learn about the industry. That will boost your confidence. It takes some time and you’ll make some mistakes, but all of those experiences matter.”

Solid international relationships will see us through any crisis, and artificial intelligence will add jobs to manufacturing, not remove them. Those were just two of the messages driven home by NAM President and CEO Jay Timmons during a Yahoo! Finance interview this week.

• Timmons gave the interview after a busy few days in London as part of the Competing to Win Tour in Europe, where he met with U.K. leaders and the U.S. ambassador to discuss strengthening the U.S.–U.K. alliance.

Trade deal needed: To ensure future manufacturing competitiveness, the U.S. needs a “robust agenda” from the Biden administration—now, said Timmons.

• “We haven’t seen a trade deal negotiated in our country or with our country for four presidencies,” continued Timmons. “We’re growing manufacturing in the United States thanks to the 2017 tax reforms, thanks to the infrastructure investment legislation, thanks to the CHIPS and Science Act.”
• “But … 95% of the world’s customers live outside of the United States. And we can strengthen our supply chains and we can also sell our products if we have the right trade agreements in place.”

Uniting to solve problems: Reinvigorating historic alliances is crucial to overcoming “any obstacle,” said Timmons.

• “[W]e want to make sure that our allies are … able to work together to solve some of these big macroeconomic issues, whether it’s a banking crisis or whether it’s increasing trade opportunities,” Timmons said.

AI: Meanwhile, AI will only expand and improve workers’ jobs, not replace human beings, Timmons said.

• AI is “going to [have] an incredibly positive impact on the sector because it is going to enhance manufacturing capability and output and it’s going to be a supplement to jobs all across the world,” Timmons said.
• “Think about all the technological advances we’ve had over the course of the last few decades, but especially the last five to 10 years. All of these advances have given additional capabilities to the workers.”

Filling jobs: Also needed is a strong workforce. Timmons discussed some of the findings of the NAM’s test Manufacturers Survey, in which nearly 75% of manufacturers cited attracting and retaining quality employees as a top challenge.

• He touched on some of the many initiatives of the Manufacturing Institute, the NAM’s 501(c)3 workforce development and education affiliate, to shore up labor force participation. These include second chance hiring, Creators Wanted—which seeks to inspire tomorrow’s workforce—and more.

The last word: “And that takes this full circle,” Timmons said. “Young people are learning new skills when it comes to technology. Robotics, artificial intelligence, augmented reality, all of those things are what modern manufacturing is all about. And the next generation are the ones that are going to deliver for us.”

As part of the Competing to Win Tour in Europe, NAM President and CEO Jay Timmons visited the world’s largest integrated chemical complex and the headquarters of BASF in Ludwigshafen, Germany, this week. The visit highlighted how BASF is addressing global challenges and providing a powerful example of manufacturers’ leadership.

BASF in North America: BASF employs more than 16,000 workers in North America. Its facilities include large, integrated, production-energy flow-logistics operations in Geismar, Louisiana, and Freeport, Texas.

• Led by BASF North America President and NAM board member Tobias Dratt, the company has been a strong supporter of the initiatives of the Manufacturing Institute, the NAM’s 501(c)3 workforce development and education affiliate, to build the workforce of the future.
• This includes the Creators Wanted campaign, which aims to inspire the next generation of manufacturers and help companies source talent.
• BASF was among the first companies to advance the NAM and MI’s “This Is Our Shot” Project to increase awareness about COVID-19 vaccinations.

The visit: Timmons met with company leaders forging a path to the future.

• These included BASF Global Business Services President Marc Ehrhardt and Chief Technology Officer and Board of Executive Directors member Dr. Melanie Maas-Brunner.
• Timmons also had the opportunity to take part in a BASF immersive experience, one of the company’s innovative approaches to building community awareness about its impact and the promise of the chemistry industry.

The last word: “To fortify the global economy and strengthen the values of free enterprise, competitiveness, individual liberty and equal opportunity—as well as the capacity for democracy to raise standards of living here at home and around the globe—it’s going to take action in the U.S. and Europe,” Timmons said after the visit.

• “Policymakers must continue boosting supply chain resiliency, energy security and regulatory certainty. The decisions that leaders on both sides of the Atlantic make will determine whether companies like BASF can continue to grow, invest and innovate for a better life for all.”

On the first two days of the NAM’s Competing to Win Tour in Europe, Timmons took part in “frank and engaging” discussions with global leaders in Geneva. The conversations focused on reinforcing transatlantic partnerships, bolstering democracy, addressing trade challenges and emphasizing the crucial role manufacturers play in promoting global stability.

The details: Timmons met with influential figures including WTO Director-General Dr. Ngozi Okonjo-Iweala, WTO Deputy Director General Angela Ellard, U.S. Ambassador to Switzerland and Lichtenstein Scott Miller and U.S. Deputy Chief of Mission in Geneva David Bisbee.

• NAM representatives also participated in an event on intellectual property co-hosted by the NAM and the International Federation of Pharmaceutical Manufacturers and Associations.

The substance: In the meetings, Timmons delved into the negative impact of the WTO/TRIPS waiver expansion, the need to restore the WTO dispute settlement system’s functionality and the crucial role of manufacturers in supporting democracies and global institutions.

• ‘“Frank & engaging discussion w/ @JayTimmonsNAM CEO of the US National Association of Manufacturers & his delegation. Focused on geopolitical tensions & impact of @wto, challenges w/ the TRIPS waiver extension to therapeutics & diagnostics, dispute settlement system & road to #MC13 [the WTO’s next ministerial conference in early 2024],” tweeted Okonjo-Iweala following the meeting.

Speech in brief: At the IFPMA event, first covered by Politico, Timmons stressed the significance of IP protections in driving innovation and developing new treatments, reinforcing the NAM’s opposition to an expansion of the TRIPS waiver to cover diagnostics and therapeutics. Attendees included Geneva-based government delegations, the WTO secretariat and NAM member companies.

• “In America, our industry works to advance the values of free enterprise, competitiveness, individual liberty and equal opportunity—the values that keep our industry strong,” said Timmons. “But increasingly, we find these values, which so many of us share, under attack—in particular from authoritarian regimes that have little regard for free markets and little respect for an individual’s right to determine their own destiny. That’s why our transatlantic relationship matters more than at any time in recent memory.”
• “[O]ne of the most important ingredients for innovation is how a country protects intellectual property. IP enshrines the understanding that years or even decades of hard work and sleepless nights, millions and millions of dollars and so much more will be rewarded,” he continued.
• “Expanding this [WTO/TRIPS waiver of IP] would set a precedent that would spiral across the manufacturing sector,” he concluded. “Some voices—here in Geneva and around the world—are already expressing desires to implement similar waivers for renewable and green energy technologies, or to automatically trigger an IP waiver for any future pandemic. If we don’t draw the line now, the outcome is obvious: an anti-innovation domino effect that destroys jobs, livelihoods and lifechanging products.”

The big picture: More than a worldwide center for diplomacy, Switzerland is the seventh largest investor in the U.S. Timmons’s visit comes at a critical inflection point for the country and amid heightened stresses on global institutions, due to COVID-19, Russia’s unprovoked war in Ukraine and competition with China, among other geopolitical challenges.

News coverage: Politico’s Morning Trade newsletter spotlighted Timmons’s trip, while The Wall Street Journal (subscription) quoted him on the importance of new U.S. trade agreements.

Next up: The tour will continue in Frankfurt, Germany, where the NAM will further demonstrate manufacturers’ leadership and the potential for a more robust transatlantic alliance.

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).

Ukrainian President Volodymyr Zelenskyy’s speech at the recent NAM board meeting highlighted the importance of manufacturers in the U.S. to the world at large. But it also made another, implicit point—that the NAM has a robust platform for engaging global leaders on issues critical to the industry.

NAM President and CEO Jay Timmons heads across the Atlantic next week to bolster these strategic alliances, as well as advance key competitiveness priorities and elevate manufacturers’ role as the “Arsenal of Democracy.” While there, he will affirm the values shared by Americans and Europeans alike, including free enterprise, competitiveness, individual liberty and equal opportunity.

The itinerary: The trip will take Timmons to Switzerland, Germany, Poland, Belgium, France and the United Kingdom, during a critical inflection point for U.S.–European Union and U.S.–U.K. partnerships.

• Timmons will take part in high-level meetings with government officials, international intergovernmental organizations like the World Trade Organization, U.S. embassies and European trade association counterparts.
• He will also meet with global manufacturing leaders, visit sites vital to the U.S.–European alliance and draw attention to the support manufacturers are providing in key countries like Poland.

The trade theme: Ahead of this trip, Timmons recently urged President Biden to resume forging trade agreements with our international partners, both in Europe and around the globe.

• As Timmons put it, “By advancing an ambitious trade agreement agenda, we can ensure that the U.S.—and not competitors like China—writes the rules for the global economy and trading system.”
• “At a time when democracy and free enterprise are under attack from forces around the world, America, as it has done in decades past, can provide the leadership needed to defend our values, our institutions and our way of life.”

The bigger picture: Timmons’ Europe trip follows many other NAM efforts to engage with international partners, which include recent meetings with Danny McCoy, CEO of the Irish Business Employers Confederation, and Goldy Hyder, president and CEO of the Business Council of Canada.

• It also follows Timmons’ trip to Mexico as a part of the U.S.–Mexico–Canada business delegation meetings at the North American Leaders’ Summit.
• Among other key moments, he communicated directly to new Mexican Economy Minister Raquel Buenrostro the myriad of regulatory and trade policies that violate the spirit, if not the letter, of the United States–Mexico–Canada Agreement.

The last word: “The NAM’s competitiveness agenda isn’t just something we can achieve here at home,” said NAM Executive Vice President Erin Streeter.

• “It requires action and partnership abroad, particularly in Europe. Russia’s aggression in Ukraine and COVID-19 are just two examples of why the resilience and strength of the transatlantic alliance is so important.”
• “We’re looking forward to the impact we’ll make for manufacturers in the U.S. and in defense of our shared values.”  

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.

Rashmi Vadlakonda is a woman with a voice, and she’s not afraid to use it.

As a manufacturing engineer at Trane Technologies—a company focused on sustainable climate innovations—Vadlakonda is making advancements in engineering and paving the way for more women of color to join her. That’s why she was recently recognized by the Manufacturing Institute’s 2023 Women MAKE Awards as an Emerging Leader.

The award: The Women MAKE Awards, formerly known as the STEP Ahead Awards, honor top female talent in the industry while providing honorees with a platform to inspire other future industry leaders. Vadlakonda sees the honor as an opportunity to keep speaking up for people who are underrepresented.

• “I believe that for young women in manufacturing, especially for me as an immigrant young woman of color … a title helps,” said Vadlakonda. “This award gives me that title [and] the courage that I need to speak up and say, ‘Hey, I have something to share, and I want you to listen to me. There’s a reason I was recognized.’”

Starting out: Vadlakonda wasn’t immediately drawn to engineering, but when she was growing up in India, it was typical for young people to pursue engineering or medicine.

• Once she “fell into it,” she loved it, and took an especially strong interest in 3D printing while in graduate school at North Carolina State University. Her passion for 3D printing is what brought her to Trane Technologies.

Making the transition: When she first came to the company, she was responsible for operationalizing additive manufacturing throughout the company.

• She spent a few years in a corporate setting, traveling to different offices and introducing advanced manufacturing technologies—but when the pandemic hit and travel was largely suspended, she had plenty of time to think about what she wanted to do next. That’s when she decided to pivot to working in a factory setting.

• “The factory is a basic building block of the manufacturing industry,” said Vadlakonda. “Coming from a research background, I wanted to understand how a factory functions, how the people there think, how different groups interact with each other, and what it takes to actually deliver a good product.”

The factory floor: Vadlakonda is grateful she got a chance to work in both the corporate and factory environments. In a factory, she says, the pace is much faster, and you’re pushed to solve problems right in front of you. This was a challenge she found thrilling.

To women in the industry: When asked what her advice is for women in the industry, Vadlakonda first had advice for industry leaders. She believes they must create a comfortable environment for people from all walks of life.

• “Sure, you can get someone interested in manufacturing, you can help them come into the industry,” said Vadlakonda. “But we also have the responsibility of creating a welcoming environment where they feel like they can grow, so that they don’t leave, so that they’re happy here in the industry.”

The future: Vadlakonda, who is a champion of, and volunteer for, the industry’s Creators Wanted campaign to inspire the next generation of creators, believes it is vital that young people are exposed to manufacturing career options at an early age.

• “It doesn’t start with talking to women who have decided on a career path,” said Vadlakonda. “You have to start with kids. That’s why I like talking at Creators Wanted. Young people are naturally attracted to what they’re attracted to. Our job as adults is to help them see the options.”

The last word: “Manufacturing is very exciting,” said Vadlakonda. “It’s very interesting, you get to be creative and solve problems—and it’s such a satisfying feeling to solve problems.”

What does it take to be a digital transformation champion? Anheuser-Busch InBev can tell you.

The world’s largest brewer won four Manufacturing Leadership Awards in 2022, including the highly coveted Manufacturer of the Year. (The honors are given annually by the Manufacturing Leadership Council, the NAM’s digital transformation arm.) The MLC chatted with AB InBev Global Vice President Marcelo Ribeiro recently to get his insights on the processes, technologies and strategies driving the company’s success.

Business transformation drivers: “We have a dream at ABI, which is ‘to create a future with more cheers,’” said Ribeiro. “[That means] a clear strategy to lead and grow, to digitize and monetize our ecosystem and to optimize our business.” Here are a few ways AB InBev is pursuing that dream:

• Developing and delivering products that give consumers what they want, when they want it
• Making sure the supply chain can adapt quickly to consumer needs
• Increasing capacity without compromising safety, quality or sustainability

Rising to challenges: “The future is becoming less predictable,” Ribeiro said. “We need to prepare for that, so we have to build a more resilient, flexible supply chain.” Additional opportunities include:

• Moving from transactional relationships with vendors and suppliers to partnerships
• Looking beyond operations and across the entire supply chain to meet sustainability goals
• Creating a collaborative manufacturing ecosystem that fosters the sharing of ideas

Meeting the digital future: Ribeiro says that ABI’s digital strategy has three key aspects:

• Making data more accessible and available to frontline workers
• Creating a template for digital technology that can be easily tailored to the unique needs of each business
• Using advanced analytics to contextualize data and discover where it can best be applied to aid decision making

Leaders required: Ribeiro noted that leadership is essential for making this vision a reality.

• “It is critical to empower the front line,” he said. “Leaders should be focused on providing the resources to allow people to do the work and achieve excellence themselves. In the end, people are key for any business transformation.”

Find additional insights into AB InBev’s digital transformation in DIALOGUE: AB InBev’s Award-Winning Dream, or make plans to attend Rethink, where Ribeiro will present a keynote address on “Building Your Enterprise into a Digital Transformation Champion.”