Tax

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement regarding negotiations to raise the debt ceiling:

“It is imperative that Congress and the administration reach a resolution to the debt limit issue as swiftly as possible. Waiting to act until extraordinary measures are exhausted constitutes dangerous brinkmanship that would inject uncertainty into the global economy and increase the risk of a default that would derail manufacturing growth in America, tank markets and put jobs at risk.

“We did not become the greatest nation in the world by shirking our responsibilities. Manufacturers have been working overtime to rebuild our economy, strengthening supply chains, creating jobs at record rates and helping defend against threats from around the world. All of those achievements will be erased if the United States does not find a path forward on the debt limit and fiscal responsibility. Let’s rise above this challenge so that manufacturers can do what we do best: improve lives and livelihoods here and around the world.”

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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 more than 12.9 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

The House of Representatives has made a key move this week to strengthen its oversight of the complex U.S.–China relationship—a development that the NAM supported.

The House has established the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, which will aim to “investigate and submit policy recommendations on the status of the Chinese Communist Party’s economic, technological and security progress and its competition with the United States,” according to the bill.

Why it’s important: The NAM has long called for more robust efforts to reset the relationship and hold China accountable for discriminatory economic practices and policies.

• These practices have had a deleterious effect on U.S. manufacturing competitiveness, as NAM Vice President of International Economic Affairs Ken Monahan told Acting Assistant U.S. Trade Representative for Trade Policy and Economics William Shpiece in September.​​​​​​
• “From unfair import and export subsidies and industrial policies to intellectual property theft, manufacturers and workers in the U.S. face an unfair playing field that harms manufacturing in the U.S. and holds back the industry,” Monahan said.

What can be done: The NAM continues to advocate several key actions, which it enumerated last May to the new committee’s predecessor, the House Foreign Affairs Committee’s China Task Force. These include:

• Boosting domestic investment in manufacturing, supply chains and infrastructure here at home;
• Increasing U.S. leadership in writing the rules of trade—globally through leading the modernization of the World Trade Organization and regionally through steps to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and new frameworks such as the Indo-Pacific Economic Framework;
• Working at home and with allies abroad to tighten pressure on China to fully meet its trade and economic commitments and halt problematic trade behaviors; and
• Upgrading national security regulatory frameworks such as investment security and export controls through targeted, effective reforms.

The final word: “We have to get China right: the U.S.–China economic relationship has long needed a reset to work for manufacturers large and small across the country grappling with harmful and discriminatory Chinese trade behaviors,” said NAM Senior Director of International Trade and Regulatory Affairs Ryan Ong.

• “Manufacturers welcome robust efforts by Congress and the broader U.S. government to level the playing field for manufacturers and allow them to compete fairly everywhere, including in the U.S., China and around the world.”

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement upon completion of House Leadership elections for the 118th Congress:

“Manufacturers congratulate Speaker McCarthy and Leader Scalise. Both have been strong supporters of ensuring a strong manufacturing economy.

“We look forward to working with them and the new Congress to advance policies that strengthen manufacturing in the U.S. We remain committed to advancing post-partisan solutions that improve the lives of all Americans, consistent with our ‘Competing to Win’ agenda.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.77 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.

Washington, D.C. – The National Association of Manufacturers today announced that Ketchie Inc. President and Owner Courtney Silver will serve as chair of the NAM’s Small and Medium Manufacturers Group and Click Bond President and CEO Karl Hutter will be vice chair. Silver and Hutter will work under the continued board leadership of NAM Board Chair and Dow Inc. Chairman and CEO Jim Fitterling and NAM Board Vice Chair and Johnson & Johnson Executive Vice President and Chief Technical Operations and Risk Officer Kathy Wengel.

“Small and medium-sized manufacturers are at the heart of our economy and represent 90% of the NAM’s membership. Our country’s success is tied directly to their success, and with Courtney and Karl as leading manufacturing voices, we are well-positioned for 2023,” said NAM President and CEO Jay Timmons. “No matter what challenges we face, our association and industry remain steadfastly committed to policies that uphold the values that have made America exceptional and keep manufacturing strong: free enterprise, competitiveness, individual liberty and equal opportunity.”

“It is a privilege to serve our industry as chair of the SMM Group at the NAM. With so many critical policy issues facing members this year, we will continue to lead the charge in Washington and across the country,” said Silver. “We’re all dealing with pressures from regulatory overreach, tax code uncertainty, the workforce crisis and more. I look forward to working with the team at the NAM to advance policies that support innovation and growth and enhance our competitiveness—and to collaborating with other small and medium-sized manufacturers, including family-owned businesses like mine, to fix these make-or-break policies central to our survival.”

“I am honored to be chosen to lead the SMM Group at the NAM as vice chair,” said Hutter. “From educating elected leaders on the policies needed to empower the nearly 13 million people employed in manufacturing, to helping companies tap into the NAM’s wealth of operational resources, I look forward to working closely alongside the NAM’s leadership to support small and medium-sized manufacturers in growing their companies and our economy.”

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 the industry advance an agenda that promotes growth and prosperity for all Americans.

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

Silver previously served as vice chair of the NAM’s SMM Group. As president and owner of Ketchie, she leads a woman-owned, third-generation North Carolina manufacturer. She has worked at Ketchie for more than 14 years. She is a past recipient of the Manufacturing Institute’s STEP Ahead Award (now the Women MAKE Award), which recognizes manufacturing women who exemplify leadership within their companies as well as their communities.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.77 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.

Washington, D.C. – Following the Environmental Protection Agency’s announcement that it will reconsider National Ambient Air Quality Standards for particulate matter, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Improving air quality in the U.S. is a priority for manufacturers, and we’ve worked for years to make progress in delivering some of the cleanest manufacturing processes in the world. Based on the EPA’s own data, air quality has improved by more than 30% over the past 20 years, even as production and energy consumption have increased.

“The EPA’s announcement today to reconsider the PM 2.5 standard will only further weaken an already slowing economy. It will push states and localities into a nonattainment designation, which will halt new investment, stop operations in some circumstances and cost jobs. Manufacturers are already concerned about the threat of a recession—62% believe that the U.S. will officially slip into a recession in 2023, according to the Q4 2022 NAM Manufacturers’ Outlook Survey released yesterday.

“Today’s announcement is the wrong approach. Let manufacturers do what they do best: innovate and deploy modern technologies to protect the environment, while creating jobs and strengthening the economy.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.77 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.

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on President Biden’s remarks on border security and enforcement.

“The NAM was encouraged when President Biden made immigration a ‘day one’ priority, and now we need members of Congress to do their part—especially with 779,000 open jobs in manufacturing and not enough Americans to fill these vacancies. President Biden’s announcements today, including on border enforcement, are important steps and reflect some of manufacturers’ concerns, but this still highlights the ongoing need for bipartisan congressional action on immigration. Manufacturers have the solution: our ‘A Way Forward’ plan includes post-partisan recommendations for immigration reform that can be acted on this year. I look forward to discussing this plan with world and business leaders next week in Mexico at the North American Leaders’ Summit.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% 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.

Washington, D.C. – The National Association of Manufacturers released its Manufacturers’ Outlook Survey for the fourth quarter of 2022. It illustrates manufacturers’ concerns around a challenging economic environment characterized by inflation, supply chain disruption and the workforce crisis. It also demonstrates the consequences of Congress’s continued inaction on key manufacturing priorities. The NAM conducted the survey from Nov. 29 to Dec. 13, 2022.

“The majority of manufacturers expect a recession this year. Congress failed to act on essential tax reforms, which complicates investment, increases inflationary pressures and could stifle economic growth,” said NAM President and CEO Jay Timmons. “Much needed permitting reforms and provisions to strengthen our ability to conduct research and development, buy machinery and finance job-creating investments—which we need to promote growth within the sector—were left on the cutting room floor last year. Those reforms, combined with manufacturers’ ongoing efforts to inspire, educate and empower the future workforce, are critical to our competitiveness.”

Workforce shortages ranked as the industry’s number one concern, and there were 779,000 open jobs in manufacturing in the most recent data. This is why the NAM has pressed Congress to address immigration reform—as both a humanitarian solution and to help the sector grow its talent pool—and other solutions outlined in “Competing to Win,” the NAM’s policy roadmap to bolster manufacturers’ competitiveness.

Timmons added, “We’re looking to the new Congress and the administration for leadership and to focus on policies that remove barriers to manufacturing growth in the United States and fend off a severe downturn.”

Key Findings:

• More than 62% of manufacturing leaders believed that the U.S. economy would slip officially into a recession in 2023.
• More than three-quarters of respondents (75.7%) listed attracting and retaining a quality workforce as a primary business challenge, with supply chain challenges (65.7%) and increased raw material costs (60.7%) the next biggest impediments.
• Even in a recession, manufacturers plan to do the following: capital spending on new equipment and technological investments (65.3%), upskilling and training of existing workforce (64.1%), seeing solid demand for their company’s products (63.2%), hiring new employees (55.1%), investing in research and development (52.1%) and spending on new structures and existing facilities (38.6%).
• More than three-quarters of respondents (75.8%) said pushing back against regulatory overreach should be the top priority of the 118th Congress. Other priorities included supporting increased domestic energy production (69.3%), passing comprehensive immigration reform (65.4%), maintaining and permanently extending tax reform (63.0%), controlling rising health care costs (55.5%), addressing the skills gap facing manufacturers (50.5%) and modernizing permitting to reduce red tape (40.0%).

Due to the consistent economic headwinds, manufacturers’ confidence has declined, with 68.9% of respondents having a positive outlook for their company, the lowest since the third quarter of 2020.

Conducted by NAM Chief Economist Chad Moutray, the Manufacturers’ Outlook Survey has surveyed the association’s membership of 14,000 manufacturers of all sizes on a quarterly basis for the past 25 years to gain insight into their economic outlook, hiring and investment decisions and business concerns.

The NAM releases these results to the public each quarter. Further information on the survey is available here. Click here for more on “Competing to Win.”

Washington, D.C. – Following the release of the Environmental Protection Agency’s proposed new Waters of the United States rule, National Association of Manufacturers Senior Vice President of Policy and Government Relations Aric Newhouse issued the following statement:

“The EPA is unnecessarily rewriting critical permitting standards and tossing aside Supreme Court precedent in the process. This moving target frustrates efforts to expand domestic manufacturing and create well-paying jobs. Manufacturers cannot invest with confidence when the rules keep changing.

“Manufacturers need a sensible WOTUS proposal that provides permitting certainty and allows the industry to continue leading on environmental stewardship.”

In 2023, the Supreme Court is expected to issue a decision in Sackett v. EPA, a case that will determine the jurisdiction of the Clean Water Act and all regulations within its authority. Previously, the NAM submitted multiple sets of comments regarding the 2015 WOTUS rule to better inform policymakers. In addition, the NAM supported the 2017 executive order instructing the EPA to rescind the rule, and the NAM Legal Center had been in active litigation against the rule starting in 2015. The legal battle included a unanimous victory for the NAM at the U.S. Supreme Court on a key procedural issue, and in 2019, federal judges invalidated the rule.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.77 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.

Washington, D.C. – The National Association of Manufacturers is calling on lawmakers to immediately address critical tax provisions that were left out of the 2023 Omnibus spending package, highlighting the negative impact to small manufacturers and their workers.

“Congress’ failure to reverse tax policies that make it more costly to perform research, buy machinery and finance job-creating investments has put hundreds of thousands of American jobs and manufacturing competitiveness at risk. Despite overwhelming support for addressing these issues, Congress’ inaction will now undercut small manufacturers’ ability to invest in their workers, facilities and communities,” said NAM President and CEO Jay Timmons.

Ketchie President and Owner and Incoming Chair of the NAM Small and Medium Manufacturers Group Courtney Silver recently highlighted that congressional action on these tax priorities will help prevent small manufacturers from feeling “stuck between a rock and a hard place. It’s very important that we take action on expanding and locking in that pass-through deduction, increasing those incentives around R&D and protecting those provisions around full expensing and interest deductibility,” said Silver.

“Although the appropriations package included important manufacturing priorities, including the INFORM Consumers Act, with its protections for consumers against counterfeit goods, and the Electoral Count Reform Act, which supports a clear and secure democratic process, pro-competitiveness tax policy changes would have made a big difference for businesses of all sizes across our industry,” continued Timmons. “As the next Congress convenes, we urge lawmakers to prioritize these policies, and we will continue to work with manufacturing champions from both parties to provide tax certainty to the nearly 13 million people who work in manufacturing today.”

Read more about how these critical tax priorities impact small manufacturers across the country here.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.77 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.

Washington, D.C. – The National Association of Manufacturers released new analysis revealing that if the tax code’s research and development amortization requirement, which went into effect this year, is not reversed immediately, the U.S. economy would lose 263,382 jobs and experience an $82.39 billion hit to GDP in 2023.

Because the law changes the way businesses have handled investments for decades, companies like NAM member Miltec UV, which develops new UV lamp systems for curing inks and coatings for everything from optical fiber to soup can lids, are having to grapple with a significant new cost that they had not anticipated previously. “Absent congressional action, we’re gonna get hit hard,” said Miltec UV President Bob Blandford. “Our taxes are going to go up dramatically. That’s cash getting sucked out of the business. So that’s going to get pretty ugly.”

The manufacturing industry, which conducts 55% of private-sector R&D, would directly lose 59,392 jobs and face a decline in output of $31.69 billion. Prior to 2022, companies could immediately deduct R&D expenses in the year in which they are incurred, which promotes long-term job-creating investments in the United States. However, requiring companies to spread out these deductions over a period of years penalizes innovation by making R&D more costly.

“A failure to act will burden manufacturers large and small who use this tool to create well-paying jobs and support families and communities,” said NAM Managing Vice President of Tax and Domestic Economic Policy Chris Netram. “We need Congress to act quickly to address this and other critical tax provisions in year-end legislation before we cede our competitive edge to foreign nations like China, which provides a super deduction in the amount of 200% of R&D expenses.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.77 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.