Trade

Washington, D.C. – The National Association of Manufacturers today released the results of the Manufacturers’ Outlook Survey for the fourth quarter of 2019. The survey shows that manufacturing optimism has stabilized with nearly 68% of manufacturers reporting a positive outlook for their business, essentially the same rate as the third quarter release. The inability to attract and retain a quality workforce remained manufacturers’ top business concern (63.8%) for the ninth straight quarter. The survey was conducted prior to announced agreements on the U.S.–Mexico–Canada Agreement, “phase one” trade deal with China and long-term reauthorization of the Export-Import Bank—important progress that will boost certainty for manufacturers entering the new year.

In just the past week, our leaders have taken major steps toward bolstering manufacturers’ optimism and confidence. Now we need them to build on that progress by passing the USMCA, signing the ‘phase one’ deal with China and voting to reauthorize the Ex-Im Bank. All of these actions have the power to reduce the trade uncertainty we see in this survey, said NAM President and CEO Jay Timmons. To tackle manufacturers’ number-one challenge, the NAM is supercharging our workforce strategy in 2020 through Creators Wanted, our nationwide tour and campaign to inspire a new generation of modern manufacturing workers. So between trade and workforce, next year will be a critical opportunity to build the foundation for manufacturing growth for years to come.

To date in 2019, manufacturing has had an average of 483,500 open jobs—a highly elevated level that included the all-time high number in June (515,000). Manufacturing had 477,000 open jobs in October, according to the most recent JOLTS data, and a landmark report published last year by Deloitte and The Manufacturing Institute—the workforce and education partner of the NAM—found that 2.4 million manufacturing jobs could go unfilled by 2028.

Ahead of its 125th anniversary and the 2020 elections, the NAM recently launched the “Creators Wanted Fund,” a multimillion-dollar campaign to inspire and drive more Americans to pursue careers in modern manufacturing. The campaign aims to cut the skills gap by 600,000 workers by 2025; increase by 25% the number of students enrolling in technical and vocational schools; increase by 25% the number of students enrolling in apprenticeships and reskilling programs; and raise to 50%—from 27%—the number of parents who would encourage their children to pursue a career in modern manufacturing.

Conducted by NAM Chief Economist Chad Moutray, the Manufacturers’ Outlook Survey has surveyed the association’s membership of 14,000 large and small manufacturers on a quarterly basis since 1997 to gain insight into their economic outlook, hiring and investment decisions and business concerns. The NAM releases the results to the public each quarter. Further information on the survey is available 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 more than 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters 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 Manufacturers 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 after the House of Representatives passed government funding legislation that includes a long-term reauthorization of the Export-Import Bank and repeals the medical device tax, health insurance tax and “Cadillac” tax:

Manufacturers continue to rack up victories for the men and women of our industry as the year comes to a close. Congressional leaders are to be commended for including so many of our top priorities in this must-pass bill. Securing a long-term reauthorization of the Export-Import Bank will safeguard manufacturing jobs in America and help level the playing field with other countries, especially China and Germany, so it could not come at a more critical time.

For nearly a decade, manufacturers have led the charge for the permanent repeal of onerous taxes on Americans’ health care. Winning these long-sought repeals will reduce the cost of providing quality benefits to manufacturing employees and delivering lifesaving medical technologies to patients.

Above all, this vote proves once again that even in a fiercely divided Washington, manufacturers can break through and get important work done for the good of our industry and the American people. Now the Senate must do its job so we can secure the President’s signature and ring in 2020 as a stronger, more competitive industry.

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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 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters 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 Manufacturers 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 welcoming the trade announcement from the United States and China:

President Trump has landed an historic, enforceable deal that protects a broad range of U.S. intellectual property, such as trade secrets, and provides strong, new tools to tackle counterfeiting of our products. The agreement also ensures tough enforcement to protect manufacturing innovations and, most importantly, the jobs of American workers today and into the future. For two years, manufacturers have been the leading voice for an enforceable agreement to make China play by the rules and stop cheating once and for all. This is an enormous step forward to achieving that goal.

The NAM first called for the administration to pursue a bilateral trade agreement with China in a letter from Timmons to President Trump in January 2018. The NAM has released a full negotiating objectives framework for an agreement that will address China’s unfair trade practices and level the playing field for manufacturers in the United States.

Today’s announcement represents real progress, and manufacturers look forward to working with President Trump and U.S. Trade Representative Robert Lighthizer to achieve additional concrete outcomes on other key unfair trade practices that translate into a lasting, game-changing agreement.

-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 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters 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 Manufacturers 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 welcoming the announced deal to move forward the U.S.–Mexico–Canada Agreement:

Manufacturers support the USMCA, and we are encouraged that the administration and House Democrats have forged a path forward, with the support of Canada and Mexico as well. To be sure, as with any agreement of this nature, not every objective that we sought was met. For instance, we are extremely disappointed that the agreement missed an opportunity to set the gold standard for the protection of American-made lifesaving innovations and inventions. Protection of intellectual property is a key principle and critical for the long-term vitality of the manufacturing industry and the men and women who work in our sector.

Nevertheless, a ratified USMCA will deliver increased certainty for manufacturers—especially for the 2 million manufacturing workers whose jobs depend on North American trade.

This has been a long process, and manufacturers will continue to work closely with the administration and both the House and Senate to approve the USMCA by the end of this year. We deeply appreciate the hard work of the Trump administration, particularly the United States Trade Representative, Ambassador Bob Lighthizer, as well as leaders of both parties in Congress who have brought us to this point and continue to listen to manufacturers.

-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 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.

On Nov. 21, the President signed a stopgap funding bill. In addition to keeping the federal government funded through Dec. 20, the bill includes provisions to keep the Export-Import Bank of the United States open for another month while lawmakers debate its authorization moving forward. The Bank would have shuttered this week without congressional action, but what manufacturers ultimately need is a robust, long-term reauthorization of the Ex-Im Bank rather than repeated short-term extensions.

The House of Representatives recently passed a 10-year robust reauthorization of the Bank, and the Senate has introduced a bipartisan reauthorization bill that similarly extends the Bank’s charter for a decade. Both bills have received the NAM’s public support. Here’s why manufactures are urging Congress to act.

The Export-Import Bank is the “lender of last resort” for U.S. businesses competing for overseas contracts, supporting millions of American jobs since 2000. Without a fully functioning Ex-Im Bank, small and large manufacturers across the country could lose business opportunities that allow them to hire more workers and increase investment in their communities.

One such manufacturer, California-based energy equipment supplier FirmGreen, employs 11 workers and relies on the Ex-Im Bank to create a level playing field when competing for international business.

“Without the Ex-Im Bank to supply the necessary finances, potential clients have chosen to do business with South Korea, Europe and other countries with foreign agencies that could supply the finances,” said FirmGreen Chairman & CEO Steve Wilburn. “We lost many potential projects when Ex-Im was hobbled, and that’s had a direct impact on jobs.”

U.S. Bridge, an Ohio-based steel manufacturer with 75 employees, has relied on the Ex-Im Bank to develop strong trade relationships internationally and support jobs here at home. A third-generation family-owned business, U.S. Bridge highlights the important work of the agency in supporting small manufacturing companies.

“Ex-Im Bank has played a critical role in helping us make foreign sales in tough markets, doing everything possible to promote U.S. sales that support our manufacturing here. Without the Ex-Im Bank, we would have lost new opportunities and a critical trading relationship would be unsustainable,” said Richard Rogovin, Chairman of U.S. Bridge. “In addition to financial support, the staff is very knowledgeable about foreign trade, ready and willing to be helpful, and provides expertise that we could not afford to employ otherwise.”

“With more than 100 foreign export credit agencies seeking to help their industries at our expense, and more than 90% of the Ex-Im Bank’s transactions directly supporting small businesses, manufacturers see the bank as a key tool for maintaining a robust American workforce by helping manufacturers compete anywhere and everywhere,” said Linda Dempsey, Vice President of International Economic Affairs Policy at the National Association of Manufacturers.

Manufacturers are facing significant challenges—driven in part by global economic headwinds and trade uncertainty—and a long-term reauthorization of the Ex-Im Bank will strengthen America’s manufacturing industry. That’s why the NAM continues to call for a robust, long-term reauthorization.

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement after the House of Representatives passed the United States Export Finance Agency Act (H.R. 4863), legislation to reauthorize the Export-Import Bank for 10 years:

The members of Congress who cast their vote for reauthorizing the Export-Import Bank stood with America’s manufacturing workers today. The Ex-Im Bank is a vital tool for ensuring manufacturers in America can compete on a level playing field. Around the world, 100 other export credit agencies are in operation, so shutting down the Ex-Im Bank is akin to unilateral disarmament. It would hand a victory to China. That is why the Senate must now act. Manufacturers strongly support both the just-passed House bill and the bipartisan Senate Ex-Im Bank reauthorization bill introduced by Sen. Kevin Cramer (R-ND) and Sen. Kyrsten Sinema (D-AZ) that similarly provides for a 10-year robust reauthorization. Manufacturers urge the Senate to act on a long-term and robust reauthorization to provide certainty and improve American competitiveness.

Quick facts about the Ex-Im Bank:

• The agency has supported 2.5 million jobs over the past 20 years.
• On average, more than 90% of the Ex-Im Bank’s transactions directly support small businesses.
• The agency has generated $9.6 billion for taxpayers since 1992.
• Foreign competitors are stealing America’s competitive advantage by devoting hundreds of billions of dollars to official export credit agency financing for their domestic manufacturers.
• The agency’s default rate is better than many commercial lenders and far below the 2% maximum rate set by Congress.

-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 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – National Association of Manufacturers Vice President of International Economic Affairs Linda Dempsey released the following statement after the House Financial Services Committee passed legislation to reauthorize the Export-Import Bank for 10 years:

Manufacturers need long-term certainty that the Ex-Im Bank can keep helping manufacturers secure new sales overseas that support well-paying American jobs. The legislation would help manufacturers in the U.S. compete in the global economy by providing a 10-year reauthorization, increasing the authorization ceiling and ensuring the agency’s board will remain fully functioning. This deserves strong bipartisan support on the House floor. We appreciate the members who support this critical agency and thank them for their vote on this important legislation.

Quick facts about the Ex-Im Bank:

• The agency has supported 2.5 million jobs over the past 20 years.
• On average, more than 90% of the Ex-Im Bank’s transactions directly support small businesses.
• The agency has generated $9.6 billion for taxpayers since 1992.
• Foreign competitors are stealing America’s competitive advantage by devoting hundreds of billions of dollars to official export credit agency financing for their domestic manufacturers.
• The agency’s default rate is better than many commercial lenders and far below the 2% maximum rate set by Congress.

-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 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.

As Congress moves toward a bipartisan deal on the United States-Mexico-Canada Agreement (USMCA), manufacturers are urging lawmakers to pass the agreement. Designed to replace the North American Free Trade Agreement (NAFTA) and agreed to last year by leaders from all three countries, the USMCA now awaits approval by Congress.

For companies like Memphis-based International Paper, the USMCA presents an opportunity to level the playing field with competitors around the world while providing benefits for Americans at home. According to the American Forest & Paper Association, U.S. pulp and paper exports to Canada and Mexico represented more than $10 billion in 2018, or about 45 percent of the industry’s total exports. Those exports to Canada and Mexico support an estimated 88,000 American jobs. Without the USMCA, that revenue—and those jobs—could be threatened.

“The United States-Mexico-Canada Agreement is critical for our company and our industry to compete in the international market,” said Mary M. Mann, Director of Government Relations and International Affairs at International Paper. “The agreement would protect open access for our industry’s exports to Canada and Mexico, promote sustainable forestry to combat illegal logging and support tens of thousands of jobs for hardworking Americans.”

For the Gowan Group of Companies, a family-owned business involved in agricultural inputs (including fertilizer, seed and crop protection products) headquartered in Yuma, Ariz., the USMCA would ensure economic certainty and continuity. Gowan’s sales within North America represent well over 50 percent of the company’s total sales, including substantial exports to Canada and Mexico. Tariff-free trade with Canada and Mexico supports jobs in Arizona, California, Texas and elsewhere in the United States.

“It is critical for Gowan and our ultimate customers – farmers – that products can flow throughout North America without delays, fees or other significant costs,” said Cindy Smith, Gowan’s Agricultural Relations Director. “Any delays or increased costs due to failure to pass the USMCA would damage our competitiveness and our ability to grow, add jobs, improve wages and invest in new products.”

“Manufacturers across America recognize the importance of updating our trade rules for a 21st-century economy,” said National Association of Manufacturers Vice President of International Economic Affairs Policy Linda Dempsey. “The USMCA has bipartisan support, and Congress should ratify the agreement immediately, providing certainty for American businesses to compete—and win—in the global economy.”

Despite representing less than 4 percent of the global economy, Canada and Mexico purchase more U.S.-manufactured goods than our next 11 trading partners combined. Exports to Canada and Mexico support 2 million manufacturing jobs and 40,000 small and medium-sized businesses across the United States. Comprehensive NAM data shows the USMCA’s positive impacts in every state.

If ratified, the agreement will expand U.S. exports, improve intellectual property protections and enforcement and level the playing field for U.S. workers. Manufacturers are urging quick passage of the USMCA to ensure their businesses can grow, compete globally and support millions of well-paying jobs.

Vice President Mike Pence and Commerce Secretary Wilbur Ross joined National Association of Manufacturers President and CEO Jay Timmons at SCHOTT North America’s Duryea, Pa., facility yesterday to call for the passage of the United States-Mexico-Canada Agreement and highlight the agreement’s critical importance to American manufacturers.

Today I’m headed to @schottusa’s Duryea, PA facility with @VP to discuss the importance of USMCA passage. This trade deal is critical to manufacturers in each and every state – we need certainty now. #USMCAnow https://t.co/Qa6rnaFdAY

— Jay Timmons (@JayTimmonsNAM) October 21, 2019

“A vote for the USMCA is a vote for America’s manufacturing workers,” Timmons said at the event. “Manufacturers are raising our voices in unison, calling on Congress to ratify this agreement and provide businesses with a level playing field and certainty to compete, grow and win in the global market.”

Canada and Mexico are critical partners for American manufacturers, purchasing one-fifth of the total value of U.S. manufacturing output and supporting about 2 million American manufacturing jobs.

"It's great to be back in the Keystone State!"@VP Mike Pence speaks to workers at SCHOTT North America Inc., a technology-based group of glass manufacturers and developers, in Duryea, PA. pic.twitter.com/OGJvWMT3be

— The Hill (@thehill) October 21, 2019

“The clock is ticking, so I want you to reach out,” Pence said. “Reach out to all of our elected officials in Washington, D.C. … and just tell them how important it is. Set politics aside and do what’s right for Pennsylvania and do what’s right for America.”

President Donald Trump also wrote a letter to SCHOTT, congratulating the glass manufacturer on its fiftieth anniversary. “Your products made here in the United States embody the industriousness of the American people and are a testament to the world-class quality of goods produced in our country,” Trump said.

Schott leaders provided a tour of their advanced optics production hub and research and development center for Pence, Ross and Timmons.

https://twitter.com/schottusa/status/1186441296250048513?s=20

Learn more about why USMCA matters to every state.

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons today joined Vice President Mike Pence and manufacturing leaders from across Pennsylvania at SCHOTT North America in Duryea to celebrate the factory’s 50th anniversary and to urge Congress to ratify the United States–Mexico–Canada Agreement. Leaders of the United States, Mexico and Canada approved the USMCA last year to replace the 25-year-old North American Free Trade Agreement.

In his visit with Vice President Pence to a Pennsylvania manufacturer in support of the USMCA, Timmons stated that tax reform and regulatory certainty championed by the current administration served as “rocket fuel for manufacturers, propelling manufacturing to new heights.” But, he noted, manufacturers are seeing new challenges brought on by global headwinds. Timmons pointed to the group’s most recent quarterly outlook survey—where more than 60 percent of NAM member companies saw trade uncertainties as a major challenge—as yet another reminder of why manufacturers need the USMCA passed soon.

Below are excerpts from Timmons’ remarks urging swift passage of the USMCA:

“Twenty-five years ago, the North American Free Trade Agreement helped expand access to Canada and Mexico, but our industry has transformed since then. NAFTA is now in need of an update—a new set of standards for the 21st-century economy—which is exactly why the administration negotiated the USMCA.

“Now it’s time for Congress to pass it.

“For manufacturers like SCHOTT, the USMCA would provide best-in-class intellectual property rules, set new standards for innovation and the modern digital economy, eliminate red tape at the border, improve transparency and ensure we can sell products duty free and much more.

“Why is that so important?

“SCHOTT earns more than three-quarters of its sales from consumers outside of the United States. These sales support good jobs for SCHOTT’s workers and a better economy for everyone. For so many manufacturers, expanding access to international markets is critical.

“And the most important trading markets are Canada and Mexico, which alone purchase more U.S.-manufactured goods than our next 11 trading partners combined—despite representing less than 4 percent of the global economy.

“That’s why manufacturers are raising our voices in unison, calling on Congress to ratify this agreement and provide businesses with a level playing field and certainty to compete, grow and win in the global market.

“The Speaker of the House said recently that her party is ‘on a path to yes.’ So let’s get to the destination and pass the USMCA this year.”

Timmons concluded his remarks with a call for manufacturers to let their voices be heard by telling members of Congress that “a vote for the USMCA is a vote for America’s manufacturing workers.”

In addition to Vice President Pence, Timmons was joined by SCHOTT North America President Jim Gareau, SCHOTT Duryea Site Manager Robert Gomeau, hundreds of manufacturing employees and dozens of community leaders from across Pennsylvania.

For Timmons’ full remarks, 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 more than 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.