Trade

Manufacturers in the U.S. are united with their counterparts in Ukraine as that country continues to grapple with the destruction caused by Russia’s invasion.

That was the message of “Rebuilding Ukraine: Inaugural Conference of Manufacturers in the U.S. and Ukraine,” an event that took place yesterday thanks to the partnership between the NAM and the Ukrainian League of Industrialists and Entrepreneurs.

The background: In March 2022, in the wake of the Russian invasion of Ukraine, the NAM Board of Directors voted unanimously in support of a resolution denouncing the invasion and supporting the people of Ukraine.

• In addition to affirming shared values of freedom and independence, the resolution expressed support for economic and financial sanctions against Russia, demanded removal of Russia from the World Trade Organization and called for the end of normalized trade between Russia and the U.S.
• In the months since the invasion, the NAM has stood consistently with Ukraine and supported actions against Russia.

The conference: Led by NAM President and CEO Jay Timmons and ULIE President Anatolii Kinakh, the conference included representatives from a diverse range of companies from both countries, who spoke to the challenges ahead and the need to support Ukraine as it rebuilds. The event also featured opening remarks from Ukrainian Ambassador to the U.S. Oksana Markarova and other senior Ukrainian government officials.

• Manufacturers in the U.S. described the support they have provided for Ukraine—from financial and technology support to equipment and humanitarian aid—and laid out areas in which they would like to continue to partner with Ukraine. These included R&D and university collaborations and sourcing for products and personnel.
• Ukrainian officials laid out urgent needs for their country, including rebuilding infrastructure, strengthening logistics and supporting areas such as clean energy, education and workforce training.

The result: The NAM and ULIE signed a Memorandum of Understanding that laid out common values and mutual goals.

• The organizations affirmed their shared “commitment to democratic values, the rule of law and the furtherance of democracy, freedom and opportunity for our citizens and other countries around the world.”
• The two groups agreed to create a “framework” to help explore areas of collaboration in business, trade and economic relations.
• The NAM and ULIE identified a series of steps the organizations can take to increase cooperation, from sharing information about each other’s services and activities to promoting visits between representatives and creating additional joint meetings and conferences.

What they’re saying: “Manufacturers have demonstrated their unwavering support for Ukraine and denounced Russian aggression,” said NAM President and CEO Jay Timmons. “Manufacturers in the U.S. have a long and proud history of standing firm in support of democracy, the rule of law, transparency, freedom and opportunity. We stand with President Zelenskyy, the Ukrainian government and the Ukrainian people as they defend those values today and as they work to rebuild their country in the years ahead.”

Said Kinakh: “This is the first business conference of Ukraine and the U.S. on such a scale. In our view, it will enable our partners in the U.S. to learn about the true situation in Ukraine, the business climate and our priorities. It will be the basis to shape direct ties, common interests and business plans that will boost economic activities of Ukraine.”

With supply chains in flux across the country and around the world, manufacturers frequently face obstructions that can hold up their operations and delay critical deliveries.

That’s where CONNEX Marketplace can help.

What it is: Built in collaboration with the NAM, manufacturers and other manufacturing associations, CONNEX Marketplace is a one-stop shop that brings together U.S. manufacturers and suppliers in one clear, verified and searchable database—offering a full picture of the supply chain and helping manufacturers and suppliers find the partners they need.

Why it matters: Especially at a time when supply chains are increasingly complex and constantly under strain, it’s important for manufacturers to understand the full journey of their products.

• By providing manufacturers with detailed data visualization tools as well as blacklist verification, CONNEX helps manufacturers reduce risks in their supply chains and avoid problematic routes and purchases.

How it works: Comprehensive local and national search tools offer manufacturers the opportunity to post their needs and to connect easily and quickly with suppliers using criteria including capabilities, equipment, processes and materials.

• By matching needs with available supplies, the site also helps manufacturers find alternate suppliers when necessary and improve the diversity and resiliency of their supply chains to guard against shocks and snags.

Governors support it: State leaders across the country are speaking up about the power of CONNEX, laying out the value of the program and urging manufacturers to get involved.

• “I think what you’re hearing here with CONNEX … you’re hearing the doors opening on great opportunities for Wyoming,” said Wyoming Gov. Mark Gordon. “It’s gonna expand our footprint regionally, nationally and globally.”
• CONNEX “better connects the Utah manufacturing industry, shortens and reduces supply chain costs and provides new business opportunities to Utah manufacturers and suppliers,” said Utah Gov. Spencer Cox.
• “CONNEX is hugely important,” said Oklahoma Gov. Kevin Stitt. “We’re trying to get everyone to look on this CONNEX website.… If you’re not on that and you’re a manufacturer in Oklahoma, we encourage you to engage with that.”

What we’re saying: “This one-of-a-kind tool empowers manufacturers of all sizes, both buyers and sellers, to be found, increase supply chain optimization and mitigate risk,” said NAM President and CEO Jay Timmons. “It’s a game-changer for U.S. manufacturers.”

The negotiation and implementation of robust, new trade agreements are an essential part of a manufacturing competitiveness agenda. As we head into a new year, the NAM is pressing for the kind of strong rules and partnerships the industry needs.

Forging new trade agreements: The NAM is urging policymakers to negotiate a series of substantial new trade pacts that strengthen trade ties with U.S. allies and other trading partners and expand on open trade in general. Important initiatives include:

• Negotiating regional accords, including the Indo-Pacific Economic Framework and the Americas Partnership for Economic Prosperity, which support manufacturing jobs in the U.S. by including key provisions that open markets, strengthen U.S. innovation and technology leadership, raise global standards and establish best-in-class trade rules; and
• Reengaging in trade agreement talks with the United Kingdom and Kenya and exploring trade agreements with additional markets in Latin America, Africa and beyond.

Enforcing existing pacts: The NAM is also pressing for the comprehensive enforcement of existing U.S. trade agreements—including the full implementation of the United States–Mexico–Canada Agreement and the U.S.–China “Phase One” Trade Agreement. As a strong supporter and advocate for the USMCA, the NAM is advocating the reversal of Mexican and Canadian policies that are against the letter and spirit of the agreement.

• In June, NAM President and CEO Jay Timmons laid out a series of challenges that manufacturers in the U.S. are facing in Mexico, telling the Biden administration: “Failure to prioritize enforcement of these commercial challenges will undermine the long-term credibility of the USMCA.”

Implementing a comprehensive China trade strategy: The NAM has long advocated for a comprehensive strategy for the U.S. trade relationship with China. While the U.S. and China have moved forward with important conversations, the  Biden administration should implement a clear China trade and economic strategy that can strengthen our ability to compete economically with and in China, as well as hold China accountable for its behaviors.

• “The U.S. must develop, and strategically use, a full playbook of legislative and enforcement tools to pressure China to stop its discriminatory economic policies and level the playing field for manufacturers and workers in the U.S.,” NAM Vice President of International Economic Affairs Ken Monahan told the Office of the United States Trade Representative in September.
• Monahan also urged the immediate launch of a “comprehensive, transparent and robust Section 301 tariff exclusion process with meaningful retroactivity” to ensure that such measures aren’t undermining efforts to strengthen manufacturing in the U.S.

Next steps: “Manufacturers need open global markets to ensure that we benefit from the same principles that we seek here at home: nondiscrimination, fairness, equal opportunity and competition,” said Monahan. “As we look to 2023 and beyond, the forging of ambitious new U.S. trade agreements, robust enforcement of our existing accords and the implementation of a comprehensive U.S. trade strategy toward China will be vital as we advance that agenda.”

Manufacturers of all sizes must be able to compete in a global economy—and that means selling not just to consumers in the U.S., but also to the billions of consumers who live around the world. That’s why the NAM is standing up for a robust U.S. trade policy that advances strong rules and partnerships that promote open markets, improve competitiveness, increase business predictability and boost manufacturers’ ability to reach new customers abroad.

Our priorities: The NAM is interested in a U.S. trade agenda that supports open global markets so that manufacturers can benefit globally from the same principles that we value at home: nondiscrimination, fairness, equal opportunity and competition.

• It is also focused on pushing back against foreign practices that harm manufacturers and their employees in the U.S. and holding countries like China accountable. Ultimately, the NAM is committed to improving U.S. global competitiveness, supporting innovation, growing the economy and strengthening the industrial base.

Our solutions: To accomplish these goals, the NAM has offered a series of solutions for national policymakers and other leaders, including:

• Implementing the CHIPS and Science Act and pursuing additional legislation to strengthen supply chains and support a STEM workforce;
• Negotiating cutting-edge trade agreements and enforcing existing trade rules;
• Comprehensively enforcing existing U.S. trade agreements, including full implementation of the United States–Mexico–Canada Agreement;
• Standing firm in support of strong global intellectual property protections;
• Accelerating efforts toward a clear, comprehensive U.S.–China strategy that promotes fairness, accountability, enforcement and business certainty;
• Reforming international trade rules and institutions, such as the World Trade Organization;
• Bolstering U.S. export promotion and financing tools and reforming export control policies;
• Modernizing customs operations to cut red tape; and
• Updating the U.S. tariff code, including through enactment of the Miscellaneous Tariff Bill.

What we’re saying: “Manufacturers believe that strong U.S. global economic leadership and engagement with our allies—including by forging strong, enforceable U.S. trade agreements—are critical to tackling shared global challenges, expanding export opportunities, diversifying sources for trade, ensuring supply chain resiliency and promoting American values,” said NAM Vice President of International Economic Affairs Ken Monahan.

• “Without such trade deals, manufacturers in the U.S. risk being left behind our global competitors, many of whom are actively negotiating new agreements that exclude us. The time is now for the U.S. to get back in the game.”

Learn more: Find out more about the NAM’s priorities around trade in “Competing to Win”—a blueprint for policies that support manufacturing in America.

As the manufacturing industry grapples with disruptive forces in the U.S. and around the world, companies are looking for more certainty and opportunity.

NAM Vice President of International Economic Affairs Ken Monahan spoke about these issues with UPS President of International Public Affairs Penelope Naas in a panel discussion during the UPS Supply Chain Solutions virtual conference on Oct. 5.

The big idea: “Manufacturers of all sizes must be able to compete in a global economy by selling not just to consumers in the U.S., but also to billions of consumers globally,” said Monahan.

• “For us, international economic growth is core to our DNA—and it is absolutely critical that we increase opportunities for those 95% of the global population that lives outside of the U.S.”
• The NAM emphasized these broad priorities in its just-released “Competing to Win” policy agenda. 

The challenge: “We’ve just seen wave after wave of supply chain disruptions, and the impact that that’s happening on the ability of manufacturers to operate and engage not just in the U.S. but globally,” said Monahan. “In a recent quarterly survey [of NAM members], 78% of our leaders listed supply chain instructions as a primary business challenge.”

• According to Monahan, the global nature of manufacturing underscores “the importance of our industry working to ease the types of global supply chain bottlenecks that are impacting so many businesses around the world … easing uncertainty and … knocking down unfair trade barriers that continue to stymie the growth of economic activity globally.”

Problems and solutions: Monahan named COVID-19, the Russian invasion of Ukraine and disclosure requirements that require more scrutiny of supply chains as key factors impacting manufacturers—and emphasized the need for diverse sources of products to ensure supply chain resiliency in the future.

Building partnerships: Monahan pointed to the importance of robust trade agreements and partnerships with economic allies to secure resilient supply chains and promote fair competition.

• “When it comes to trade, we need to think through ways in which we can deepen our partnerships with our friends and allies,” said Monahan. That means “seeking trade agreements and cutting-edge, best-in-class frameworks with our trading partners to encourage increasing standards to U.S. levels.”

Monahan also noted a series of ongoing U.S. efforts with global trading partners, including in the Indo-Pacific region, Europe, the Americas and Kenya. He made clear that the NAM is working to promote new agreements that open markets, strengthen U.S. innovation and technology standards and increase global standards around trade rules, among other priorities.

• Such U.S. global engagement is “demonstrating to manufacturers that the U.S. is back on the field,” said Monahan. “But at every opportunity, we are pushing the administration to think bigger, be even more ambitious and take this opportunity in front of it.”

Promoting transparency: Monahan spoke about the importance of manufacturers’ insight into their supply chains.

• “Companies need to be knowledgeable about as many tiers of their supply chains as possible and have strong due diligence and compliance programs in place to ensure to the maximum extent possible that goods are not being sourced or sold to entities that use forced labor or are on various export control lists,” he said.

The last word: “We need to be able to really put forward and advance the same principles globally that we do here at home as manufacturers: nondiscrimination, fairness, equal opportunity and competition,” said Monahan. “We are at our best when we are advancing those priorities globally and in the U.S.”

Washington, D.C. – Following the Office of the U.S. Trade Representative’s announcement that the U.S. has requested consultations under the U.S.–Mexico–Canada Agreement over Mexico’s energy policies, National Association of Manufacturers Vice President of International Economic Affairs Ken Monahan released the following statement:

“This bold action from the Biden administration and Ambassador Katherine Tai is critical to stemming measures implemented and proposed by the government of Mexico that contradict the letter and spirit of the USMCA and undermine the rule of law in Mexico.

“Energy and electric power generation measures implemented by Mexico have favored dramatically the interests of Mexico’s state-owned electrical utility and state-owned oil and gas company. This adds costs for manufacturers that rely on existing contracts with energy suppliers and makes it harder for them to meet long-term sustainability goals in Mexico, while also slowing the deployment of renewable energy in Mexico.

“Manufacturers welcome the news that the U.S. has requested dispute settlement consultations with Mexico under the USMCA. We stand ready to work with USTR to quickly reverse Mexico’s unfair energy policies and to address the many other industry challenges in Mexico.”

Background:

On June 30, NAM President and CEO Jay Timmons detailed for President Biden a wide range of market access, regulatory and other commercial challenges in Mexico faced by manufacturers. Timmons underscored that “failure to prioritize enforcement of these commercial challenges will undermine the long-term credibility of the USMCA.”

-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 $2.77 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. – Ahead of consideration of legislation to bolster U.S. semiconductor manufacturing, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“A vote for the CHIPS Act funding is a vote for a stronger, more competitive manufacturing industry in America. But if Congress fails to pass this investment in the coming days, they will hand other countries a competitive advantage and weaken our own economy at a precarious moment.

“Other provisions of the China competition bill still under negotiation also need to make it to the president’s desk, and manufacturers firmly support their inclusion in this package. We will continue our advocacy for the anti-counterfeiting measures, trade provisions, supply chain investments and more. Congress must get those done.

“This week, we can take a powerful step forward with chips funding and move toward a future where semiconductor shortages—and the disruptions they’ve created—are a thing of the past. Other nations are not waiting around to ramp up semiconductor manufacturing. America should be leading, not falling behind.”

Background:

According to the NAM’s latest Manufacturers’ Outlook Survey, more than 88% of respondents said it was important for the federal government to take steps to support the domestic manufacturing sector in the face of increased global competition for industrial investment, with nearly 58% saying “very important” and 30.7% saying “somewhat important.” When asked about what aspects of the China competition legislation were most important for supporting manufacturing activity, the top choices were addressing port congestion and competition issues in ocean shipping (70.9%), eliminating ill-conceived labor provisions that facilitate unionization campaigns (61.3%), strengthening U.S. leadership in energy innovation and competitiveness (58.2%), funding to increase domestic semiconductor production capacity (57.9%), investments to support the critical minerals supply chain (55.7%) and ensuring the tax code provides a full deduction for research expenses (48.3%), among others.

-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 $2.77 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 leading organizations representing manufacturers and millions of manufacturing workers in the United States, Mexico and Canada released the following statement on the two-year anniversary of the United States–Mexico–Canada Agreement (USMCA/T-MEC/CUSMA):

“On this two-year anniversary, we recognize the substantial value that this agreement and the North American Free Trade Agreement have represented for our industry’s competitiveness, our economies and North American workers. Manufacturing is critical for the entire North American economy. Our closely integrated supply chains contribute more than $3 trillion annually to the North American economy, and more than $2 billion worth of manufactured goods cross our borders each day.

“The USMCA can only reach its full potential if it is fully implemented in a manner that upholds its letter and spirit. That is why manufacturers across North America continue to strongly and respectfully urge political leaders to work together to live up to the commitments of the agreement, which garnered broad support in all three countries. Full compliance with the agreement will provide certainty for the more than 23 million manufacturing workers in the United States, Mexico and Canada and boost our region’s ability to compete with the rest of the world.

“The Canadian Manufacturers & Exporters (CME), the Confederation of Industrial Chambers of Mexico (CONCAMIN) and the National Association of Manufacturers (NAM) reiterate our longstanding commitment to engage with the Canadian, Mexican and U.S. governments to ensure that the USMCA/T-MEC/CUSMA is fully implemented and that it supports our industry’s competitiveness and our workers at this critical time for our economies.”

Background: Earlier this week NAM President and CEO Jay Timmons wrote to President Biden about certain challenges in U.S.-Mexico trade relations.

-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 12.7 million men and women, contributes $2.71 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. 

-CME-

Canadian Manufacturers & Exporters (CME) is Canada’s largest trade and industry association, and the voice of manufacturing and global business in Canada. CME directly represents more than 10,000 leading companies nationwide. As Canada’s leading business network, CME – through various initiatives, including the establishment of the Canadian Manufacturing Coalition – touches more than 100,000 companies from coast to coast, engaged in manufacturing, global business, and service-related industries.

-CONCAMIN-

The Confederation of Industrial Chambers of the United Mexican States, CONCAMIN, established in 1918, is the main organization representing the different industrial sectors and activities of high importance for the economic development of Mexico. The National Confederation of Industrial Chambers, is by law a mandatory consultative body of the State since its creation 104 years ago, it represents 118 Chambers and Associations.

It generates 48 out of every 100 formal jobs in the country. Through 1.2 million Economic Units, we contribute 40% of the GDP and 90% of the country’s exports. 

Washington, D.C. – As negotiations between the Pacific Maritime Association and International Longshore and Warehouse Union near a critical deadline, manufacturers are sounding the alarm about potential economic consequences of a port stoppage if disruption were to occur over two weeks at the ports of Los Angeles and Long Beach, the nation’s largest port complex. According to a study by Inforum Economics, a 15-day disruption would cost the U.S. economy nearly half a billion dollars a day—for a total of $7.5 billion—and destroy 41,000 jobs, including more than 6,100 in manufacturing.

As the industry continues to grapple with historic supply chain challenges, inflationary pressures and rising transportation and energy costs, manufacturers are calling on the parties to reach an agreement immediately to avoid this continued uncertainty.

“The ports of Los Angeles and Long Beach support a major share of cargo relied upon by American businesses and consumers, supporting supply chains across the entire country. With supply chains already stretched thin, inflation at its highest level in four decades and concerns of a recession rising, any disruption would mean a devastating hit to our economy and to manufacturers’ competitiveness,” said National Association of Manufacturers President and CEO Jay Timmons. “The disruption would be felt immediately. Manufacturing jobs will be lost if parts and supplies don’t arrive. New equipment, machinery and products can’t be built when ships are backed up and there is no one available to unload and process cargo. Our overseas customers won’t wait for us to fix these disruptions, either—they’ll simply find other suppliers, weakening U.S. manufacturing competitiveness in the process.

“This is why the Pacific Maritime Association and the International Longshore and Warehouse Union must not allow a disruption at these ports. Manufacturers, our millions of employees and the countless others whose lives and livelihoods depend on the products we make are counting on the PMA and the ILWU to reach a resolution and keep the ports running.”

Background: At the time of publication, the PMA and ILWU are engaged in labor negotiations. The NAM commissioned an analysis using the Inforum LIFT economic model to quantify the impacts of a 15-day closure at the Los Angeles and Long Beach ports. Specifically, it estimates how such a closure would impact U.S. employment, output and income. These ports have experienced historic disruptions and bottlenecks since late 2020, and nearly 84% of manufacturers now list freight and transportation costs as a key driver of inflation.

-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 12.7 million men and women, contributes $2.71 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. – Following a decision by the World Trade Organization to lift intellectual property protections for COVID-19 products, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“This damaging decision will undermine American innovation, competitiveness and technology leadership—weakening manufacturing in America and threatening the jobs of manufacturing workers. Even worse, the agreement could exacerbate the supply chain and logistical hurdles that represent the biggest current challenges to global efforts to ensure access to critical COVID-19 products.

“It is alarming and disappointing that the United States would join other countries to give away manufacturers’ innovations to our commercial rivals. Our industry has been on the front lines of efforts to fight COVID-19—developing, manufacturing and distributing vaccines and other essential products needed to save lives and strengthen our economy. American innovation has been at the heart of the manufacturing response to the pandemic and will be just as critical for our ability to lead the world and respond to future global health crises.

“Manufacturers have been vocal supporters of effective solutions at the WTO that leverage trade to fight the pandemic—but this waiver is not one of them. Manufacturers call on the Biden administration to reverse course on this decision and take immediate action to protect this vital technology, American workers and global health.”

-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 12.7 million men and women, contributes $2.71 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.