Tax

“Manufacturing in the U.S. has momentum”—and to keep it going, manufacturers will need to push, NAM President and CEO Jay Timmons said Tuesday in the NAM’s annual State of Manufacturing Address.
 
What’s going on: Speaking to an audience of manufacturers and congressional and state officials at Armstrong World Industries in Hilliard, Ohio, Timmons, who was joined by NAM Board Chair and Johnson & Johnson Executive Vice President and Chief Technical Operations & Risk Officer Kathy Wengel, emphasized the “defining moment” for the industry and said that for manufacturing, “what happens next really matters.”

• “Uncertainty is the enemy of investment,” he told the crowd. “Manufacturing is a capital-intensive industry. We make decisions months and years in advance. … That’s why we need certainty. We need a clear, actionable, multistep strategy from our government—one that says, ‘We want you to invest here, hire here and succeed here.’”
• Timmons’ annual speech kicked off the NAM’s 2025 Competing to Win Tour, starting with a whirlwind four-states-in-four-days tour of manufacturing facilities, schools, government offices and more.
• “In Ohio, manufacturers have thrived because our leaders have taken decisive actions to keep our industry competitive,” Ohio Manufacturers’ Association President Ryan Augsburger said at the kickoff event. But now, “manufacturers across Ohio and the nation are facing critical challenges, from tax uncertainty, project delays and workforce shortages to supply chain vulnerabilities and price pressures that threaten our ability to grow. … These issues cannot wait.”

What manufacturing needs: Certainty from the federal government should come in several forms, Timmons said, including the following:

• Preserving tax reform: The 2017 tax reforms were “rocket fuel” for manufacturing in America—but key provisions have expired and others are scheduled to sunset. Congress must bring them back and improve and extend the package. “Every day that Congress delays because of process and politics, manufacturers face rising uncertainty, delayed investments and fewer jobs,” said Timmons.
• Regulatory clarity and consistency: Manufacturers today spend a total of $350 billion just to comply with regulations. “Commonsense regulation is critical to American manufacturers to continue to innovate, to compete against foreign manufacturers and to improve the lives of American citizens,” Austin So, general counsel, head of government relations and chief sustainability officer for Armstrong World Industries, told the crowd.
• Permitting reform: President Trump’s lifting of the liquefied natural gas export permit ban was a start, but to reach our full potential as energy leader, we must require “federal agencies to make faster decisions and reduc[e] baseless litigation,” said Timmons.
• Energy dominance: “America should be the undisputed leader in energy production and innovation. But … we are seeing opportunities for energy dominance fade in the face of a permitting process that takes 80% longer than other major, developed nations,” Timmons said, adding that we must cut red tape, require federal agencies to make faster decisions and reduce meritless litigation.   
• Workforce strategy: By 2033, manufacturing faces a shortfall of 1.9 million manufacturing employees, Timmons said. To fill those positions, the sector needs a “real workforce strategy,” one that includes apprenticeships, training programs and public–private partnerships.
• Commonsense trade policy: If President Trump continues to use tariffs, “we need a commonsense policy … that provides manufacturers with the certainty to invest” and “a clear runway to adjust,” according to Timmons.

State of manufacturing: “Manufacturing in the United States is moving forward,” Timmons said. “Like a press at full speed, like a production line firing on all cylinders, like the workers who show up before dawn and leave long after the job is done—manufacturing in the United States is driving us forward.” And Timmons added that now it’s time “to make America Great for Manufacturing Again.”

On the move: Following the speech, Timmons, Wengel and Augsburger joined state lawmakers, including state Sens. Kristina Roegner and Andrew Brenner, and local business leaders for a visit to the Ohio Statehouse for an event focused on the importance of tax reform for Ohio and its manufacturing sector.

• A recent NAM study found that, if key provisions of tax reform are allowed to expire, Ohio would risk losing 208,000 jobs and $18.9 billion in wages.

What’s at stake: Tax reform was transformational for Humtown Products, the Columbiana, Ohio–based family-owned sand cores and molds manufacturer, President and CEO Mark Lamoncha told the audience at the Ohio Statehouse tax event.

• “We have been at the forefront of 3D-printed manufacturing for years and have invested significantly in the machinery and equipment required, including the purchase of 3D printers—one of which can easily cost over $1 million,” he said.
• “Since the 2017 tax reform, Humtown has invested over $9 million in capital expenditures related to 3D printing and averages around $100,000 annually in R&D costs. Under the 2017 tax reform, we were able to deduct 100% of those costs, generating around $1.6 million in accelerated tax savings.”
• “That amount alone allowed us to purchase another 3D printer, fueling continued growth. That’s what tax certainty allowed us to do. But right now, that certainty is slipping away. As these provisions begin to expire, our tax burden is increasing.”

Creators Wanted: The group also fit in a stop at Columbus State Community College, which serves approximately 41,000 students, to visit with students in the semiconductor and mechanical drive classes.
 
The last word: The NAM recently “stood shoulder-to-shoulder with congressional leaders—delivering a clear, urgent message on tax reform” and is “driving the agenda on regulatory certainty, on energy dominance, on permitting reform, health care and workforce development,” Wengel told the audience. “The NAM is not waiting for Washington to act; we are making sure Washington acts for you, for manufacturers.”

• Added NAM Executive Vice President Erin Streeter: “The NAM is on [these issues], and we’re going to keep fighting, as we do every day with the right leaders, the right strategies and the right vision for the future.”

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Manufacturers in the United States are facing intense global competition, economic headwinds and unfair trade practices from adversarial nations. With critical tax reforms having lapsed and others still set to expire as well as inaction on comprehensive permitting reform, our industry is struggling to invest, innovate and compete.

“Manufacturing is a capital-intensive industry—and we must plan months and often years in advance to grow and compete. We cannot afford to wait on action, especially with additional cost pressures from the renewal and extension of tariffs. Manufacturers are calling on Congress to act now to renew the 2017 Tax Cuts and Jobs Act—failure to do so will put 6 million jobs at risk and make it even harder for manufacturers to drive growth and strengthen supply chains. We cannot risk giving our competitors an edge while jeopardizing American jobs and economic strength.”

-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 $2.93 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

To lift much of the burden on manufacturers in the U.S., Congress must reinstate pro-growth tax measures, enact commonsense regulatory reforms and undertake comprehensive permitting reform. That was the main message of Click Bond CEO and NAM Small and Medium Manufacturers Group Chair Karl Hutter to legislators yesterday on Capitol Hill.
 
What’s going on: “American businesses now shoulder a staggering $3 trillion annually in regulatory costs—disproportionately impacting manufacturers,” Hutter told the House Committee on Small Business at Wednesday’s hearing.

• “Unfortunately, small companies get hit twice—with unworkable regulations that apply to them [and again with] compliance and reporting requirements that larger firms are forced to pass down. Fortunately, Congress and the Trump administration have the opportunity to reverse course.”   

Rocket fuel for manufacturing: The 2017 Tax Cuts and Jobs Act “was rocket fuel for Click Bond,” said Hutter—whose Carson City, Nevada–based family business makes adhesive-bonded fasteners used by the U.S. military, commercial aviation industry and NASA.

• “The new 21% corporate tax rate allowed us to raise wages for production employees, invest in capital equipment, strengthen our employee tuition support program and accelerate the timeline for constructing a new facility. The new 20% pass-through deduction likewise empowered our suppliers and partners to reinvest in their businesses, readying them to support our growth.”  

Changes for the worse: But growth was halted in 2022 and 2023, when provisions from the TCJA began to expire. Worse still: More pro-growth tax measures are due to expire at the end of this year—unless Congress intervenes.

• “It is now more expensive for Click Bond to conduct R&D, the lifeblood of both our product and process innovation,” according to Hutter. “It’s more expensive for us to purchase capital equipment, the tools that will unleash the productivity of our team. And it’s more expensive for us to finance job-creating investments such as that state-of-the-art, sustainable manufacturing facility.”  

Ill effects: According to a recent study released by the NAM, nearly 6 million American jobs and more than $1 trillion of U.S. GDP will be at risk if Congress fails to act by the end of this year to preserve TCJA’s pro-manufacturing provisions.
 
What should be done: Manufacturers everywhere are struggling under the weight of both these provisions’ expiration and needless, out-of-date government requirements, Hutter went on. To fix these problems, he said, Congress should:

• Unwind “outdated chemicals reporting requirements that force us to look backward in time and deep into our supply chain”;
• Stop unnecessary permitting roadblocks by the Environmental Protection Agency at the state and local levels;
• Roll back expensive energy and labor mandates;
• Undertake “comprehensive permitting reform”; and
• Make permanent the pro-manufacturing tax provisions scheduled to sunset at the end of 2025 and bring back already expired provisions that boosted the sector and the U.S. economy as a whole.

The final say: “Congress has a critical opportunity to right-size the regulatory landscape, put an end to permitting delays and protect manufacturers from devastating tax increases,” Hutter concluded. “I encourage you to seize [it] … because when manufacturing wins, America wins.”
 

For a stronger, more competitive America, Congress must make permanent the pro-growth tax provisions from President Trump’s 2017 Tax Cuts and Jobs Act, NAM President and CEO Jay Timmons and House Ways and Means Committee Chairman Jason Smith (R-MO) wrote in a recent op-ed for the Washington Examiner.

What’s going on: “The choice is clear. Congress must deliver the results the American people voted for on Election Day by extending and expanding Trump’s pro-growth tax policies, which have worked so well.”

• The reforms allowed manufacturers “to hire, expand and invest in their communities” at historic rates, with a particularly positive effect on small and medium-sized businesses.
• Georgia-based Winton Machine Company, which produces machinery used in tubular parts and coaxial cable fabrication, would not have been able to expand its workforce, raise employee pay or purchase critical technology had it not been for the TCJA, as Winton CEO and Co-Owner and NAM board member Lisa Winton told Congress in 2023.
• Austin Ramirez, president and CEO of hydraulic and electromechanical control systems maker Husco in Wisconsin and NAM Executive Committee member, told legislators that tax reform allowed his family-owned company “to create jobs, expand research and development, compete globally and invest in its future, including the most significant renovation of his business in 70 years,” Timmons and Chairman Smith wrote.

What’s at stake: “Key provisions of the 2017 Trump tax reforms have already expired, and many more are set to lapse later this year,” Timmons and Chairman Smith continued.

• “Without swift action, manufacturers will miss out on tax incentives for research and development and equipment purchases, while small businesses and family-owned manufacturers will see their tax rate double to as high as 43.4%—all at a time when global competition is intensifying.”

According to a recent NAM study cited in the op-ed, if Congress fails to preserve tax reform by the end of this year:

• Nearly 6 million U.S. jobs—more than 1 million of them in manufacturing—will be lost; and
• America will lose some $1.1 trillion in GDP and $540 billion in wages.

What must be done: Congress must act now to restore the pro-manufacturing tax provisions that have already sunset and make permanent those that are scheduled to expire, Timmons and Chairman Smith concluded.

• “With Trump leading the charge, it is time for Congress to deliver, protect these reforms and set American workers up for success in 2025 and beyond. Together, we can ensure the next chapter in America’s story is one of growth, opportunity and strength.”

Preserving the pro-manufacturing policies of the Tax Cuts and Jobs Act will “ensure that manufacturing remains the driving force of the American economy,” small manufacturer Courtney Silver told Congress this week.
 
What’s going on: Silver—president and owner of third-generation, family-owned precision machining business Ketchie and immediate past chair of the NAM’s Small and Medium Manufacturers Group—testified Tuesday at a House Ways and Means Committee hearing on the necessity of preserving soon-to-expire tax reforms and reinstating provisions that have expired already.

• “Critical pro-growth provisions from tax reform have expired already, and more harmful changes are on the way at the end of this year,” she said. “This means that every member of this committee has the opportunity to take real action that supports manufacturing in America.”   

A critical moment: The stakes now are extremely high for manufacturing and the U.S. economy as a whole, she added, citing findings from an NAM study out this week showing that in the absence of congressional action to preserve pro-manufacturing tax policies:

• Nearly 6 million U.S. jobs (and more than 1 million manufacturing jobs) are at risk;
• American workers will lose more than $540 billion in wages; and
• U.S. GDP would fall by more than $1 trillion.

A recipe for success: The passage of tax reform led to a period of record business for Ketchie, which allowed the company to expand and reward its team members.

• “Over 2018 and 2019, we were able to invest more than $1 million into capital equipment and create new jobs within Ketchie,” Silver said. “We upgraded our security and our HVAC systems and invested in new technology on our shop floor. And most importantly, we provided raises and bonuses to all of our employees.”
• “Business boomed throughout our supply chain, and demand for our parts soared. Our typically organized shop floor was covered in pallets of materials to keep up with our customers’ orders.”

… and for stagnation: But that growth was stopped in its tracks in 2022, when measures from the TCJA began to expire. And more expirations are on the way.

• “The loss of the pass-through deduction, increased individual taxes and changes to the estate tax will hurt my ability to grow and create jobs,” Silver said.   

Ripple effect: What’s more, manufacturers rely on each other—so when one takes a hit, all their supply chain partners take it, too, Silver said.

• She told the committee that the software vendor Ketchie uses was “dramatically affected” by the 2022 expiration of first-year research-and-development expensing. “They have less ability to create new jobs, to innovate the product that I use every day to run my business,” Silver told the committee. “There’s a ripple effect.”    

Complex work requires certainty: The manufacturing sector isn’t “me buying equipment, pressing a button and a widget comes out,” Silver continued. It is a complicated industry on which millions rely every day—and one whose players need consistent tax policies.

• “To take raw material and to transform it into a useful object that we all benefit from is extremely tough,” Silver went on.

The bottom line: “We need pro-growth tax policies that are permanent, that are consistent, that are predictable to help us be able to grow because our manufacturing supply chain in our country needs us,” Silver said.

A busy week: Silver also spoke at the NAM’s Tuesday Capitol Hill press conference announcing the release of the tax study.

More than just the manufacturing sector depends on the preservation of key provisions from the 2017 Tax Cuts and Jobs Act. In fact, the health of the entire U.S. economy relies on it.
 
What’s going on: The NAM, members of congressional leadership, the chairs of the House Ways and Means and Senate Finance Committees and manufacturing leaders came together at a Capitol Hill press conference yesterday to announce the release of a new NAM study, which found that the American economy will face significant headwinds if Congress does not preserve pro-manufacturing tax policies. Specifically:

• Almost 6 million jobs will be put at risk;
• Approximately $540 billion in employee wages will be lost; and
• U.S. GDP will be reduced by $1.1 trillion.

A record of success: “We’re here today because we know what happens when policies empower manufacturers and their workers, and we know what happens when they don’t,” said NAM President and CEO Jay Timmons, who was joined at the event by Johnson & Johnson Executive Vice President and Chief Technical Operations & Risk Officer and NAM Board Chair Kathy Wengel, as well as leadership from Miles Fiberglass & Composites, Ketchie, Armstrong Industries, Smurfit Westrock, RCO Engineering and RCO Aerospace and Winton Machine Company. “When Congress passed and President Trump signed the Tax Cuts and Jobs Act law in 2017, it really wasn’t a victory just for manufacturers; it was a victory for the entire country.”

• Timmons mentioned the record job, wage and investment growth that followed tax reform’s passage, as well as the economic security achieved by families across the country.  

Too much at stake: “Now, as we know, the progress we’ve made is at stake,” Timmons continued. “And that’s why today we’re launching a landmark new study by the NAM, together with EY, and rolling out a major ad campaign that quantifies what’s at stake for the American economy … if pro-manufacturing provisions … are allowed to expire.”  
 
People first: Courtney Silver, president and owner of North Carolina–based precision machining company Ketchie and immediate past chair of the NAM’s Small and Medium Manufacturers Group, knows firsthand the devastation that can be wrought on a family-owned business when pro-growth tax provisions start expiring.

• “When the Tax Cuts and Jobs Act delivered for us, we invested in equipment, we invested in technology and most importantly, we invested in our people,” she told those at the press conference, adding that because of the reforms, Ketchie was able to give its entire workforce pay raises and quarterly bonuses in the years following tax reform’s enactment.
• “When [pro-growth policies] started expiring, it impacted Ketchie in a big way,” Silver went on. “These losses made it harder for us to do the work that matters to us. I have an empty spot on my shop floor held for a significant investment that the expiration of full expensing has made too costly to purchase.”

“Congress cannot delay”: “Failing to extend the pro-manufacturing tax policies Congress and President Trump provided in 2017 will destroy America’s competitive edge,” House Ways and Means Committee Chairman Jason Smith (R-MO) said. “This study underscores the need to extend the Trump tax cuts this year as quickly as possible. Congress cannot delay.”
 
Competitive edge: Tax reform gave the U.S. back its competitive edge, and to ensure we keep it, we need to reinstate expired provisions and prevent the expiration of measures due to end this year, House Majority Leader Steve Scalise (R-LA) said.

• Before tax reform, “we were getting our clocks cleaned by foreign countries because we had a 35% corporate [tax] rate, and the world average was 23%,” he said. “When you [asked], ‘How do we make America competitive again?’ everybody that works, everybody that creates jobs in America, said, ‘How about we get competitive in the tax code so we don’t lose jobs to foreign countries?’”
• Scalise added that congressional Republicans have a “very aggressive” timeline for restoring these tax provisions.

Strong economy, strong country: Senate Finance Committee Chairman Mike Crapo (R-ID), whose remarks closed out the press conference, said “piling taxes upon taxes upon taxes” is no way to build a resilient, successful economy.

• “The way to make us strong is to build a strong, powerful economy, which we get with sensible, pro-growth tax reforms,” he concluded.

Washington, D.C. – Failing to preserve pro-manufacturing tax policies from the 2017 tax reform will cost the U.S. economy nearly 6 million jobs, according to a landmark EY study released by the National Association of Manufacturers. Inaction would cost the U.S. economy more than $1 trillion. The study also shows that the manufacturing industry will bear the brunt of this economic damage if Congress does not act swiftly in 2025.

“The time to act is now. Millions of American workers are depending on the manufacturing sector to continue driving America forward,” said NAM President and CEO Jay Timmons. “Pro-growth tax policies from President Trump’s 2017 tax reforms were rocket fuel for manufacturers and made the U.S. economy more competitive on a global scale. Manufacturers kept our promises to create jobs, raise wages and benefits and invest in our community. By acting now, policymakers can choose economic growth over economic disaster and protect American livelihoods.

“This data—6 million American jobs at stake—makes crystal clear that preserving tax reform should be one of the first acts of the new Congress and the new administration. If Congress delays, manufacturers will be forced to delay investment and job creation decisions due to the uncertain outlook. In 2017, Congress passed the landmark Tax Cuts and Jobs Act late in the year, meaning that manufacturers’ investment decisions based on the law could not bear fruit until 2018 at the earliest. For example, manufacturing capital spending grew 4.5% and 5.7% in 2018 and 2019, respectively, compared to the meager 1.4% growth in 2017. In addition, manufacturers added 267,000 new jobs in 2018, the best year for job creation in manufacturing in 21 years.

“This time around, we can’t afford to wait: with crucial TCJA provisions having expired in recent years, the economy is already backsliding. Following the expiration of immediate R&D expensing in 2022, R&D growth in the EU surpassed the U.S. for the first time in nearly a decade—and China’s R&D growth tripled our own. Congress and President Trump should work expeditiously to stimulate activity this year by acting urgently to give manufacturers the tax certainty they need to plan for long-term, job-creating projects.”

“As the backbone of the American economy, manufacturers—both large and small—drive innovation, create opportunity and strengthen communities across the country,” said Johnson & Johnson Executive Vice President, Chief Technical Operations & Risk Officer and NAM Board Chair Kathy Wengel. “Maintaining competitive tax policy is essential to sustaining this momentum, enabling manufacturers to invest in cutting-edge technologies, expand operations and provide good-paying jobs. By preserving tax reform and its pro-growth policies that empower our industry, we can ensure a stronger, more resilient economy that benefits all Americans.”

“Failing to extend the Trump tax cuts could result in an estimated 6 million lost jobs and the devastation of America’s manufacturing sector,” said House Speaker Mike Johnson (R-LA). “It is the responsibility of Congress to act quickly so we can protect Americans’ livelihoods, prevent wage decreases and avoid the largest tax hike in history. We all know the importance of making things here in America, so House Republicans are working hard to preserve and build on President Trump’s historic tax reform and support America’s manufacturers.”

“This study confirms the need to immediately extend the Trump Tax cuts this year by showing the real-world devastation to America’s small businesses and manufacturers if we fail to act,” said House Ways and Means Committee Chairman Jason Smith (R-MO). “With nearly 6 million jobs on the line, Congress must act swiftly to give American small businesses, families and communities across the country the green light to hire more workers and expand their businesses to restore the greatest economy in our lifetime as soon as possible. The last thing they need is the largest tax increase in American history. Ways and Means Republicans have prepared for this moment for nearly two years and are ready to deliver an economic package that Makes American Manufacturing great again.”

“Trump’s tax reform allowed Americans to keep more of their hard-earned money, and enabled businesses to invest in their ideas, products and people,” said Senate Finance Committee Chairman Mike Crapo (R-ID). “Making these tax cuts permanent is the best way to ensure the greatest economic growth, provide certainty and stability for American businesses, and avoid the economic losses described in this study.”

“President Trump’s 2017 Tax Cuts and Jobs Act not only strengthened American manufacturing, but promoted job growth, drove innovation, increased hardworking Americans’ take home pay, and increased U.S. competitiveness. With President Trump returning to the White House and Republican majorities in the House and Senate, we must act quickly to ensure we maintain global competitiveness, support investment and innovation, and safeguard small businesses and workers,” said House Majority Leader Steve Scalise (R-LA). “Hardworking Americans deserve a strong economy that works for them, not against them. House Republicans stand ready to prevent the largest tax hike in history and make our economy great again.”

“Small manufacturers are disproportionately impacted by tax increases,” said Ketchie President and Owner Courtney Silver, outgoing chair of the NAM’s Small and Medium Manufacturers Group. “We’re already struggling thanks to the expiration of immediate R&D expensing, full expensing for capital equipment purchases and interest deductibility for job-creating projects. Congress should reverse these expirations and prevent even more devastating changes to the pass-through deduction, the estate tax and more from taking effect next year.” Silver recently testified before Congress to talk about the impact of tax reform to small manufacturers across the country.

Key Study Results:

Nationwide economic damage:

• 5.9 million lost jobs
• $540 billion reduction in employee compensation
• $1.1 trillion shortfall in U.S. GDP

Manufacturing impact:

• 1.137 million manufacturing jobs
• $126 billion in manufacturing worker compensation
• $284 billion manufacturing GDP reduction

To view the study, including state and district impacts, click here.

Background:

Manufacturers need Congress to prevent harmful tax increases, according to the NAM’s Q3 2024 Outlook Survey. Nearly 9 out of 10 respondents agree that Congress should act before the end of 2025 to prevent scheduled tax increases on manufacturers. The 20% pass-through deduction, individual tax rates and the estate tax exemption threshold are scheduled to expire or become less competitive at the end of 2025, as are important aspects of tax reform’s international tax system. These tax increases will build on damaging tax changes impacting R&D, capital investments and business loans that took effect in 2022 and 2023.

In 2018, the first year after tax reform’s enactment, manufacturing experienced the best year for job creation in 21 years and the best year for wage growth in 15 years; similarly, manufacturing capital spending grew 4.5% and 5.7% in 2018 and 2019, respectively. Manufacturers have used the savings from tax reform to grow their businesses, create jobs, raise wages, add new benefits for employees, fund R&D, purchase new equipment, expand their facilities and invest in their communities. When manufacturing grows, the economy grows. Correspondingly, when manufacturers experience devasting tax increases, the economy suffers.

-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.

Allowing crucial pro-manufacturing tax provisions to expire will be devastating for the U.S. economy, according to a landmark EY study released today by the NAM.
 
What’s going on: “Pro-growth tax policies from President Trump’s 2017 tax reforms were rocket fuel for manufacturers and made the U.S. economy more competitive on a global scale,” NAM President and CEO Jay Timmons said.

But in 2022, key provisions began to expire—and additional tax reform measures are scheduled to sunset at the end of this year. If Congress doesn’t preserve these pro-growth policies, the U.S. economy will face dire consequences:

• Nearly 6 million jobs will be put at risk.
• Approximately $540 billion in employee compensation will be lost.
• U.S. GDP will be reduced by $1.1 trillion.

Manufacturing impact: The manufacturing industry will bear the brunt of this economic damage, according to the study.

• More than 1.1 million manufacturing jobs and $126 billion in manufacturing worker wages are on the line if Congress does not preserve critical pro-manufacturing policies from the Tax Cuts and Jobs Act.  

The onus is on Congress: “It is the responsibility of Congress to act quickly so we can protect Americans’ livelihoods, prevent wage decreases and avoid the largest tax hike in history,” said House Speaker Mike Johnson (R-LA).
 
Critical players: The U.S. economy relies heavily on manufacturers, which in turn rely on competitive tax policy—and that makes these provisions’ renewal crucial, said Johnson & Johnson Executive Vice President and Chief Technical Operations & Risk Officer and NAM Board Chair Kathy Wengel.

• “[M]anufacturers—both large and small—drive innovation, create opportunity and strengthen communities across the country. … Maintaining competitive tax policy is essential to sustaining this momentum.”   

What we’re doing: The NAM continues its advocacy blitz following the study’s release.

• This morning, Courtney Silver, president and owner of North Carolina–based precision machining company Ketchie and immediate past chair of the NAM’s Small and Medium Manufacturers Group, is testifying at a House Ways and Means Committee hearing on the need to make pro-manufacturing TCJA reforms permanent.
• At 4:30 p.m. EST today, the NAM will hold a press conference on Capitol Hill announcing the study’s launch. Speakers will include Timmons, Speaker Johnson, House Majority Leader Steve Scalise (R-LA), House Ways and Means Committee Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Mike Crapo (R-ID). Watch live here.

Congressman Mike Carey (R-OH-15) recently visited Armstrong World Industries’ Hilliard, Ohio, facility to talk about innovations and tax policies critical to the manufacturing sector with company leaders, employees and local officials. Ohio Business Magazine recently recognized the Hilliard plant, which employs 175 workers, as one of the state’s top workplaces.

The tour: AWI’s Senior Vice President and General Counsel Austin So and Plant Manager Dave Muth took Rep. Carey on a tour of the plant, showcasing their energy-saving ceiling products for commercial spaces.

• Rep. Carey also met with longtime employees on the shop floor, some of whom have worked at the facility for more than 30 years.

Appreciating innovation: During the visit, AWI highlighted their innovative Templok ceiling panels, which use phase-change material technology to regulate indoor temperatures and reduce HVAC energy consumption by up to 15%.

• “These panels not only help reduce energy costs but also contribute to a greener environment,” Muth explained.

Policy needs: So stressed that policymakers are essential to American manufacturers’ competitiveness, saying, “If we want U.S. manufacturing to stay ahead internationally, we need policies that encourage innovation and allow companies like AWI to thrive here at home.”

• “The Inflation Reduction Act’s tax incentives are essential for advancing innovative energy solutions, and technologies like our Templok panels should be included among the products covered by the 48E tax credit. These incentives not only help reduce carbon emissions and energy costs but also strengthen U.S. manufacturing competitiveness by supporting groundbreaking technologies.”

Tax priorities: Rep. Carey, So and Muth also discussed upcoming tax opportunities and challenges, especially with the impending expiration of provisions in the 2017 Tax Cuts and Jobs Act.

• Rep. Carey emphasized the importance of restoring full R&D expensing to ensure manufacturers can continue to innovate. “Products like Templok show the importance of supporting investment in research and development,” he said.
• So agreed, noting that tax policy has a direct impact on AWI’s ability to reinvest in new technologies and expand its operations in Hilliard. In particular, So emphasized that “tax incentives would encourage the mass adoption of new technologies like Templok, which would create new jobs in Ohio, reduce the stress on our national electric grid and save our customers money.”

Strengthening community ties: Former Ohio TV anchor Chase Evans from the City of Hilliard joined the visit, reinforcing the importance of manufacturing to the local economy and praising AWI’s contributions to the community.

The last word: “It’s essential to create an environment where companies like Armstrong can continue to thrive and provide good-paying jobs,” Rep. Carey concluded.

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons issued the following statement on the nomination of Scott Bessent to be the next Treasury Secretary:

“President Trump’s 2017 tax reforms were rocket fuel for manufacturing, and their transformative impact cannot be overstated. They put into place competitive policies that fueled record job creation, wage growth, capital investment and innovation.

“With the nomination of Scott Bessent as Secretary of the Treasury, we have an opportunity to build on this momentum. President Trump recently pledged at the NAM’s fall board meeting that he will make these tax cuts permanent, and Scott will play a vital role in achieving that goal.

“Scott’s deep expertise in financial markets and his dedication to fostering economic growth make him an outstanding choice to lead the Treasury Department. Manufacturers are ready to work with him to ensure that manufacturing can continue to drive the economy forward.”

-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.