Trade

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons delivered the following opening statement at a U.S. Senate Committee on Finance hearing entitled Made in America: Effect of the U.S. Tax Code on Domestic Manufacturing.

Click here to watch the hearing.

Remarks as prepared for delivery:

Good morning. Thank you, Mr. Chairman.

I’m joining you virtually because of the pandemic that this country has endured for more than a year now. But this pandemic is far more than a story of economic hardship and painful loss. It’s also a story of communities and companies rising to the challenge.

America’s manufacturing workers mobilized in ways reminiscent of their resolve during World War II, when manufacturers became the arsenal of democracy. The companies joining me today are part of this effort. Ford remade shop floors to make ventilators and face shields. Intel accelerated access to technology to combat the pandemic. From iconic global brands to family-owned shops, manufacturers answered the call.

Today, one year after health restrictions began, the light at the end of the tunnel is growing brighter by the second—thanks to the innovation of pharmaceutical manufacturers. Their heroic work, combined with the previous administration’s Operation Warp Speed and this Congress and this administration’s focus on and investment in vaccine distribution, is now saving about 2 million American lives every single day.

Manufacturing workers’ achievements are all the more impressive when you consider the disruptions they had to overcome. This pandemic exposed and exacerbated serious supply chain issues that we now must address as we work to build the next post-pandemic world.

In spring 2020, the National Association of Manufacturers released our plan for strengthening manufacturing supply chains. I’ve discussed it directly with some of you.

Our goal is your goal: Ensuring that the next dollar invested in manufacturing is invested in America.

The plan is comprehensive, from taxes to workforce. The central premise is that incentives—not punitive measures—will allow us to achieve our shared goal.

Let me call out three key recommendations.

Number one: We must recognize the importance of predictability and stability in the tax code. Tax reform made manufacturers more competitive, driving historic job creation, wage growth and productivity in its immediate aftermath. Let’s not undo that progress.

Number two: Manufacturers in America can only remain at the cutting edge if our tax code supports innovation. Unfortunately, it will do just the opposite starting next year.

A looming change to the tax treatment of research costs will make it more expensive to perform R&D—potentially costing America its innovation edge.

Number three: Let’s recognize a simple truth—policies that are successful in growing manufacturing will require significant capital expenditures by the small and medium-sized firms that are the backbone of our domestic supply chain.

But two other looming changes to the tax code will make those expenditures difficult. More stringent limitations on interest deductions and the phase out of immediate expensing will take effect in the years ahead. If not reversed, these changes will make it hard to grow manufacturing.

Ultimately, ensuring that next manufacturing dollar is invested right here in America requires looking at the entire business climate.

And that means that this Congress will have to address other pressing questions.

Will tax rates for businesses of all sizes remain competitive—or better yet, become more competitive—so that we can keep attracting investment?

Will the regulatory system provide certainty and clarity?

Will health care become more affordable—without compromising free market principles?

Will this nation finally make the bold investments in infrastructure that are long overdue?

Will energy be abundant, affordable and reliable?

Will export opportunities increase while we enforce our existing trade agreements to protect American workers?

And will we achieve comprehensive immigration reform to ensure that those hidden in the shadows or brought here as children can become permanent, productive members of society?

If the answer to those questions is “yes,” if we tackle these fundamental issues, then I’m certain that this Next World that we are building in the aftermath of the pandemic will be built by American workers in American factories, restoring American leadership in the world.

Thank you, and I look forward to your questions.

-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 12.3 million men and women, contributes $2.32 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% 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 after President Joe Biden signed an executive order on supply chains.

“Manufacturers have led the nation’s response to COVID-19 by ramping up production of critical supplies, developing treatments and vaccines and continuing to produce the essentials for daily life. But the pandemic has also exposed serious challenges facing supply chains and the serious consequences when they are disrupted. We are encouraged to see that the Biden administration is taking action to address these challenges. Last year, the NAM released policy proposals for ‘Strengthening the Manufacturing Supply Chain,’ and our plan can continue to serve as a roadmap as we move forward while ensuring that we do not close off access to critical components or resources that our lifesaving and life-changing products require.

“The administration’s goal of increasing manufacturing investment in the United States is one we share. And their focus on key sectors, like the pharmaceutical manufacturers whose incredible innovation is saving lives and arming us against COVID-19, will help us emerge stronger from this crisis. We look forward to working with the Biden administration to bolster supply chains and create new job opportunities in America.”

-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 12.3 million men and women, contributes $2.32 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% 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.

There’s a new administration in town, and the NAM also has a new trade policy leader—who is already out promoting manufacturers’ agenda. Ken Monahan became the NAM’s Vice President of International Economic Affairs in January after nearly six years at the organization, and he is perfectly equipped to represent the industry on these crucial issues.

Monahan recently spoke to us about the organization’s priorities for the year ahead. Here’s what you need to know.

The big picture: “The NAM’s priority is to stand up for manufacturers and manufacturing workers in the United States by ensuring that our trading partners hold up their end of the bargain, while also working to open markets for American-made exports and promote U.S. supply chains,” says Monahan.

USMCA and Trade Enforcement: The NAM achieved a victory when Congress passed the United States-Mexico-Canada Agreement, but although the agreement is already being implemented, the NAM’s work is not yet finished. The focus now turns to ensuring that Mexico and Canada follow through on their USMCA commitments, while also holding other U.S. partners accountable as well.

• “Manufacturers continue to face trade barriers and other measures in countries with which the United States has trade agreements, notably in Mexico,” said Monahan. “We stand ready to work with the Biden administration and Congress to ensure that U.S. trade agreement partners treat our industry fairly, which will support manufacturers and manufacturing jobs here in America through an increase in exports.”

China: Given the rise of China, U.S. ties to the country and the size of the Chinese market, we need a strong strategy going forward. The United States must put consistent, targeted pressure on China – directly and with allies – to reverse its illegal subsidies, intellectual property theft and discriminatory industrial policies, says Monahan.

• “We must work with allies to set a clear, strong strategy on China, leveraging our strengths to halt problematic Chinese behaviors and level the playing field for manufacturers,” said Monahan. “We need strong American leadership to ensure that the United States – and not China – is writing the rules of global trade to benefit manufacturers and employees in America.”

Opening New Markets: Beyond China, it is vital that U.S. policymakers work to open new markets and ensure that the rules-based global trading system allows manufacturers to confront challenges in markets around the world, says Monahan.

• “We need to revitalize the rules-based international trading system and pursue new trade agreements to reverse unfair barriers, enhance the role of free market forces, promote respect for the rule of law and propel manufacturing innovation around the world,” said Monahan. “This is all the more important given that our competitors are pursuing their own deals with countries with which the United States does not have trade agreements.”

The bottom line: “As we engage with the Biden administration and legislators of both parties to promote a trade policy that opens markets for American-made exports and promotes U.S. supply chains, we must put a spotlight on the American manufacturing employees whose jobs depend on trade,” said Monahan. “We want to tell their stories. We want to share at every opportunity how trade is lifting up these employees and their communities. That’s our focus, and we’re excited to get to work alongside the NAM’s members.”

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on the Biden administration’s use of the Defense Production Act:

“Manufacturers have consistently advised the federal government that the Defense Production Act is most productive if deployed in a way that fosters partnership and provides incentives—rather than imposing demands or punitive measures.

“With this announcement, the Biden administration is demonstrating that they have listened to manufacturers and are seeking a true partnership in defeating COVID-19.

“These measures will strengthen our ability to continue providing the treatments and vaccines that we need to save lives, the equipment we need to protect frontline workers and the food and supplies that families need for their everyday lives. Manufacturers stand ready to continue doing our part.

“We will also continue to set the standard for safe behaviors—wearing masks, social distancing, washing hands and, when able, getting vaccinated.”

Background: In December 2020, the NAM sent a letter to members of the Biden COVID-19 Advisory Board, providing manufacturers’ insights on constructive uses of the DPA.

-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 12.3 million men and women, contributes $2.32 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% 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 called on President-elect Joe Biden to help ensure the future strength of manufacturing in America by extending key executive orders into the new administration and rescinding those that have harmed manufacturing.

“For decades, we have worked with policymakers from across the ideological spectrum to craft policies that encourage the growth of manufacturing in the United States,” said NAM President and CEO Jay Timmons in a letter to the incoming administration. “Now more than ever, America needs leaders in Washington who are focused on increasing American jobs, wages and investment.”

The letter outlines executive orders that have had a significant impact, positive or negative, on manufacturers over the past four years, and it urges the president-elect “to reverse the most harmful of these orders and keep or expand those that create an environment that is conducive to growing America’s manufacturing sector.”

The NAM’s recommendations will help manufacturers continue to respond to the devastating pandemic and will also power the United States’ economic recovery by setting the stage for manufacturing growth.

To read the full letter, click here.

Background:

The NAM has requested President-elect Biden repeal the following executive orders and consider executive orders for extension.

Executive Orders

Rescind:

• “Rescission of the Deferred Action for Childhood Arrivals Program”
• E.O. 13950 – “Combating Race and Sex Stereotyping”
• E.O. 13672 – “Revocation of Federal Contracting”
• E.O. 13769 – “Protecting the Nation from Foreign Terrorist Entry into the United States”
• “President’s Report to Congress on the Proposed Refugee Admissions for FY 21”
• Presidential Proclamation 10052 – “Suspending Entry of Aliens Who Present a Risk to the U.S. Labor Market Following the Coronavirus Outbreak”
• E.O. 13944 – “Ensuring Essential Medicines, Medical Countermeasures and Critical Inputs Are Made in the United States”
• E.O. 13948 – “Lowering Drug Prices by Putting America First”
• E.O. 13957 – “Creating Schedule F in the Excepted Service”

Extend:

• E.O. 13771 – “Reducing Regulation and Controlling Regulatory Costs”
• E.O. 13805 – “Establishing a Presidential Advisory Council on Infrastructure”
• E.O. 13766 – “Expediting Environmental Reviews and Approvals for High-Priority Infrastructure Projects”
• E.O. 13845 – “Continuing the President’s National Council for the American Worker and the American Workforce Policy Advisory Board”
• E.O. 13932 – “Modernizing and Reforming the Assessment and Hiring of Federal Job Candidates”
• E.O. 13777 – “Enforcing the Regulatory Reform Agenda”
• E.O. 13806 – “Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States”
• E.O.s – “Strengthening the Federal Government’s Anti-Counterfeiting Efforts”

-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 12.3 million men and women, contributes $2.32 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 62% 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 passage of Senate amendment to H.R. 133 – United States Mexico Economic Partnership Act [Consolidated Appropriations Act, 2021], National Association of Manufacturers Vice President of Government Relations Jordan Stoick released the following statement:

“Manufacturers secured many of our top priorities in this important legislation, including numerous provisions the NAM first proposed in our ‘American Renewal Action Plan.’ The additional funds for the Paycheck Protection Program will provide a continued lifeline for small manufacturers. Furthermore, the resources for testing and vaccine distribution, as well as tax incentives for manufacturers that keep employees on payroll and invest in safety measures, will ensure America’s dedicated, essential manufacturing workers can continue their mission safely.

“Across the country, manufacturers are providing the vaccines, PPE and supplies needed to defeat COVID-19, so we have been fully engaged with House and Senate leaders to keep this vital work going. We have a difficult winter ahead, and this legislation will help save lives and livelihoods and keep manufacturers operating. As folks continue to roll up their sleeves and receive initial doses of the vaccine, we are also looking to the other priorities facing us in the new year—including historic investments in infrastructure, energy innovation and more—to ensure manufacturers can lead a full economic recovery and American renewal.”

-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 12.2 million men and women, contributes $2.35 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 62% 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 President-elect Joe Biden’s announcement nominating Katherine Tai as the United States Trade Representative, National Association of Manufacturers President and CEO Jay Timmons released this statement:

“Manufacturers congratulate Katherine Tai on her historic nomination to serve as United States Trade Representative. With years of experience at the highest levels of U.S. trade policy, Katherine is widely respected. We worked extensively with her to ensure the USMCA’s passage, she is quick to listen to manufacturers’ concerns, and she has frequently briefed our members on ongoing trade issues. She has the expertise to confront China’s unfair trade practices. Her past work as USTR’s chief counsel for China trade enforcement and her experience bringing U.S. disputes against China to the World Trade Organization position her well to lead efforts to improve U.S.–China trade relations.

“Opening new markets and forging comprehensive new trade agreements with America’s trading partners are critical to manufacturing’s future and our nation’s recovery. To create more jobs in the United States, we need more opportunities to sell our products overseas. The NAM is committed to working constructively with Katherine, and we look forward to supporting her efforts to advance robust, open and rules-based global trade as we emerge from the pandemic.”

-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 12.2 million men and women, contributes $2.35 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 62% 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.

Amid rising caseloads of COVID-19, we will likely see increasing efforts to shut down businesses. But given how crucial manufacturing is to fighting the virus and maintaining our economy, the NAM is working to ensure that manufacturers can keep operating and that the North American supply chain will remain robust.

Why it matters: Manufacturers in the United States are providing frontline health care workers with the resources they need to protect and save lives—and providing daily essentials to citizens across North America. Suppliers in Mexico are key to that effort. A shutdown of facilities in either country could damage not only the ongoing economic recovery, but also the supply chain for critical goods as well as undermine the global response to COVID-19. 

A stronger connection: With the ratification of the United States–Mexico–Canada Agreement, the relationship between North American countries is more important than ever. Each day last year, $2.3 billion worth of manufactured goods crossed the U.S.–Mexican–Canadian borders. And today, Mexico and Canada purchase more from the U.S. than our next 11 trading partners combined.

Past is precedent: Back in the spring, in the midst of nationwide shutdowns in Mexico, the NAM sent a letter to President Andrés Manuel López Obrador from 326 manufacturing executives. It urged Mexico to recognize and reciprocate the guidance issued by the U.S. Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency—which designated manufacturing as essential and critical.

• Thanks to the NAM’s efforts, Mexico designated manufacturing sectors as essential, including the automotive, aerospace, mining and construction sectors, and allowed them to reopen.
• Then, when the Mexican government pushed back the planned reopening date for a number of manufacturing sectors from May 18 to June 1, the NAM immediately stepped in. Just 24 hours later, Mexico’s Ministry of Health reversed course to allow these sectors to restart operations before June 1 if health security protocol processes had been established and approved before that date.

What we’re doing now: The NAM has remained in contact with leaders and health officials across North America to ensure that manufacturers continue to have the tools and support they need to stay open and produce essential goods for our citizens.

The last word: “Manufacturers across North America are central to critical infrastructure industries and essential services,” said NAM Senior Director of International Economic Affairs Ken Monahan. “We are committed to delivering the products and services that make it possible for all of our countries to respond to COVID-19 and deliver a stronger, more prosperous future.”

Washington, D.C. – Following President-elect Joe Biden’s announcement of former Federal Reserve Chair Janet Yellen to be his nominee for Secretary of the Treasury, National Association of Manufacturers President and CEO Jay Timmons released this statement:

“Janet Yellen possesses extraordinary expertise and sterling credentials to serve as U.S. Treasury Secretary. Her nomination is, of course, historic as she will be the first woman to serve as Secretary. NAM leadership met twice with Chair Yellen during her time leading the Federal Reserve. We were struck by, and appreciative of, how focused she was on American workers and the success of the manufacturing sector. Our conversations with her were refreshingly never one-way as she listened intently to the perspectives of America’s frontline job creators and asked probative questions on how Federal Reserve policies impacted our ability to invest, hire and strengthen our communities. We look forward to a similar productive relationship in working with the future Secretary as we continue to seek clarity on additional stimulus and economic needs for the sector’s recovery.”

-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 12.2 million men and women, contributes $2.35 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 62% 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 Trump administration released a presidential memorandum this week aimed at stopping the flow of counterfeit goods—a big win for manufacturers, and a victory for the NAM, which has pushed aggressively for safeguards against fake products and intellectual property theft.

Why it matters: According to the NAM’s research, fake and counterfeit products cost the United States $131 billion and 325,000 jobs in 2019 alone. In the midst of the global pandemic, as American manufacturers work to deliver day-to-day necessities as well as medical products, therapeutics and treatments, it’s more important than ever to root out counterfeit items that can put lives and livelihoods at risk.

The groundwork: The move follows a report released by the NAM in July, titled “Countering Counterfeits,” which proposed solutions for Congress, the administration and the private sector, including:

• Requiring e-commerce platforms to reduce the availability of counterfeits;
• Modernizing enforcement laws and tactics to keep pace with counterfeiting technology;
• Streamlining government coordination to tackle counterfeit items;
• Improving private-sector collaboration; and
• Empowering consumers to avoid counterfeit goods.

The improvements: Many of the NAM’s proposed solutions made it into the memorandum, including a call for legislative action, a directive to focus on counterfeits sold online, a push for better government coordination and a focus on holding e-commerce platforms more directly accountable. The document also expanded the definition for “counterfeit goods” to “deceptive and misleading use in commerce of marks, including trademarks, goods that are trademarked and trade names”—a broader definition that will provide manufacturers more protection.

The last word: “Innovation and intellectual property are the backbone of the manufacturing industry, and America is a global leader on these issues,” said NAM Director of Innovation Policy Stephanie Hall. “This presidential memorandum represents a vital step in protecting the hard work of American manufacturers and strengthening our ability to compete and win around the world.”