Trade

The United States-Mexico-Canada Agreement (USMCA) goes into effect today—after years of advocacy by the National Association of Manufacturers and its partners.

So what does that mean for the American and global economies? NAM Senior Director of Trade Policy Ken Monahan’s answer: “The agreement will help strengthen supply chains, restore certainty, enable growth, bolster America’s competitiveness and support manufacturing jobs in the United States.” Here’s a condensed interview with Monahan that lays out the USMCA’s importance.

What’s in it: The USMCA updates and replaces the 26-year-old North American Free Trade agreement to ensure open, rules-based trade across North America. Monahan summarizes its long list of provisions: “intellectual property protections, new standards for the digital economy, reduction in red tape and unnecessary regulations, fair standards for competition and binding enforcement to protect all parties.”

Why it matters: The strength of America’s economy and markets is connected to the way we interact with our closest trading partners, Monahan emphasizes. Some numbers to keep in mind:

• Canada and Mexico alone purchase one-fifth of the total value of U.S. manufacturing output.
• Canada and Mexico purchase more U.S.-made goods than our next 11 trading partners combined despite representing only 6 percent of the world’s population.
• In addition to more than 2 million American manufacturing jobs, more than 40,000 small and medium-sized businesses depend on exports to Canada and Mexico.

What’s next: “Manufacturers are committed to working with the U.S., Mexican and Canadian governments to ensure that the USMCA is implemented in a manner that will support the recovery and renewal of the U.S. manufacturing economy,” says Monahan.

The last word: NAM President and CEO Jay Timmons summed it up: “The landmark trade agreement we fought hard to secure now enters into force at a critical time. It will help restore certainty, ensure supply chain continuity and provide opportunities for economic growth—all of which will help our industry lead the nation’s recovery and renewal.”

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on the entry into force of the United States–Mexico–Canada Agreement.

“This is a milestone day for manufacturers, years in the making. The landmark trade agreement we fought hard to secure now enters into force at a critical time. It will help restore certainty, ensure supply chain continuity and provide opportunities for economic growth—all of which will help our industry lead the nation’s recovery and renewal.

“The United States, Mexico and Canada must continue working together to ensure that the USMCA is implemented in a way that will bolster that recovery and renewal and maintain broad support for open, rules-based North American trade—this year, next year and well into the future. The stakes have never been higher.”

Prior to the USMCA’s entry into force, the NAM’s effort to secure congressional approval of the agreement activated manufacturing workers and supporters across the country, reaching members of Congress with thousands of pro-USMCA letters, calls and meetings. In doing so, manufacturers drove the narrative, making the USMCA not about partisan politics but about good policy for growing manufacturing in America.

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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 11.7 million men and women, contributes $2.37 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 today released the results of the Manufacturers’ Outlook Survey for the second quarter of 2020 showing that despite a historic drop in optimism, to nearly 34%, and challenging business conditions, the vast majority of manufacturers (98.7%) have continued or only temporarily halted operations. The survey also shows that manufacturers are innovating to find solutions to keep businesses running and to protect workers and communities, with almost 22% retooling to produce personal protective equipment, 67% reengineering processes to reflect COVID-19 safety protocols and 12% completely reevaluating the mission of the firm.

Manufacturers have led the country through the COVID-19 response, and America is counting on our industry to lead our recovery and renewal, said NAM President and CEO Jay Timmons. While these numbers show that we’ve faced difficult circumstances and that there is a challenging road ahead, manufacturers have proven that with our grit, determination and patriotic spirit, we can overcome any challenge facing the nation. And in our ‘American Renewal Action Plan,’ the NAM has shown the way forward.

As policymakers and regulators debate solutions to help the economy recover from this pandemic, the NAM urges them to focus on the renewal agenda laid out in the “American Renewal Action Plan.” We have been encouraged by actions taken thus far, but there is still greater need for targeted liability reform, tax provisions to ensure investment in manufacturing and measures to reaffirm the U.S. supply chain to protect those businesses that continue to work on the front lines of the COVID-19 response to ensure as swift a recovery as possible.

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 11.5 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. – The National Association of Manufacturers has released a detailed agenda of supply chain policy recommendations to help policymakers as Congress and the administration look at ways to boost long-term economic growth. Manufacturers are also launching a seven-figure national advertising campaign on the importance of U.S. supply chains in the wake of COVID-19. The national television and digital advertising campaign urges leaders to make smart policy decisions that incentivize job creation and investment in America, without closing off critical global supply chains. Such a constructive approach will enable manufacturers to lead America’s recovery and renewal while continuing to produce the vital supplies, medicines and essential products on which Americans’ health and safety depends.

The policies that we are proposing will allow manufacturers to lead our economic recovery by strengthening supply chains and accelerating onshoring, through incentives for creating the next job or investing the next dollar right here in America. We also cannot close off access to critical components or resources that our lifesaving and life-changing products require, said NAM President and CEO Jay Timmons. Manufacturers are working around the clock to create the protective equipment, cleaning supplies, medicines and other essential products in the wake of COVID-19, and we need the right policies so we can make even more here at home and lead a truly historic American renewal.

In April, the NAM released its “American Renewal Action Plan,” which provides a comprehensive list of policy recommendations to guide the country through the stages of response, recovery and renewal.

More information on the campaign can be found at www.nam.org/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 nearly 11.5 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 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org

On Wednesday, National Association of Manufacturers Director of International Business Policy Ryan Ong testified before the Special 301 Subcommittee of the Trade Policy Staff Committee on the global intellectual property challenges and priorities for manufacturers in the United States. While manufacturers have long called for stronger intellectual property protection, Ong’s testimony comes at a time when IP theft has been on the rise; a 2017 report by the Commission on the Theft of Intellectual Property found that stolen ideas, brands and inventions drain up to $600 billion from the U.S. economy—nearly double the amount found just four years previously.

In his testimony, Ong highlighted a growing tide of fake products sold in the United States, which has been estimated to cost the U.S. economy between $29 billion and $41 billion every year. He also detailed sophisticated attempts by bad actors to steal U.S. companies’ trade secrets; one 2014 study estimated that the economic loss from trade secret theft is between $180 billion and $500 billion. In addition, he discussed attempts at international organizations to weaken IP protections in the name of other policy priorities, from public health to environmental protection, and explained how these actions overlook the importance of innovation and create barriers to progress.

“The United States has long made vigorous protection of IP rights at home and abroad a cornerstone of our manufacturing competitiveness, but we must do more in the face of these and other challenges,” said Ong. “It is more critical now than ever before that the United States strongly defend intellectual property and innovation around the world in all available forums.”

Ong’s testimony was accompanied by a full list of recommendations on a country-by-country basis to protect the full scope of threats to manufacturers’ intellectual property.

Manufacturers have recently made important progress on intellectual property protections. For example, the “phase one” trade deal between China and the United States—which was a major victory for manufacturers—included Chinese commitments on trade secret protection, patent protection, trademark issues and judicial enforcement. Still, manufacturers continue to fight for robust support of American innovation.

“Every day, manufacturers across the country are transforming their operations to achieve greater efficiency, productivity and competitiveness while working to create a better tomorrow,” said Ong. “None of that is possible without U.S. leadership, driving strong rules to protect our IP and robust enforcement efforts. The success of our industry—and the strength of our economy—depend on it.”

Recently, manufacturers took to Capitol Hill to do their part to combat counterfeit products entering the United States. Counterfeit goods are increasingly prevalent and pose a threat to consumers’ wellbeing and manufacturers’ competitiveness. To take a stand on this growing issue, Johnson & Johnson recently testified before the U.S. House of Representatives Committee on Energy and Commerce. In their testimony, the company highlighted the challenges facing health care manufacturers and the dangers counterfeiting can pose to the health of patients and consumers.

“Illicit trade has increased dramatically in recent years, impacting nearly every industry,” said Johnson & Johnson Vice President of Global Brand Protection Rich Kaeser. “The problem is obviously a serious concern in the health care and personal care industries where patients and consumers can be injured or even die due to unsafe, counterfeit and illicit products. These situations demonstrate why businesses must partner with one another and with government, so collectively we can be a greater force to deter the growing threat of [counterfeiting].”

Beyond consumers, counterfeiting also seriously impacts private shippers like UPS as well as the manufacturers that rely on their services. A new report from the Department of Homeland Security outlines a series of actions on how the federal government can partner with the private sector to combat trafficking in fake goods.

“With the rise of e-commerce and a global economy, counterfeit goods are a significant problem for many of UPS’s customers, particularly small and medium-sized companies,” said Laura Lane, UPS President of Global Public Affairs. “UPS is pleased to see the administration taking action on counterfeits, including enforcing the collection of advanced electronic data, and assurances that packages coming into the U.S., whether through the private express industry or the global postal system, receive consistent treatment and that there is uniformity at U.S. borders to curb counterfeits and dangerous goods from getting into our country.”

With the administration’s breakthrough “phase one” trade deal with China, the U.S. gained strong, enforceable intellectual property protections to help counter the importation of fake goods, but there is still significant work to be done to protect consumers and manufacturers, including ensuring those commitments are honored. In order to achieve long-lasting reform, a broad coalition of public- and private-sector voices need to be part of the process.

“Manufacturers have always had to deal with counterfeit goods, which lead to damaging consequences for consumers and the business community,” said National Association of Manufacturers Vice President of Labor, Legal and Regulatory Policy Patrick Hedren. “At the end of the day, this is about as bipartisan an issue as you can find. Manufacturers are eager to work with members of Congress, the administration and private-sector stakeholders to better protect the public from the threat of fake goods.”

Vice President Mike Pence addressed the National Association of Manufacturers’ Board of Directors Meeting on Friday. In a speech livestreamed to manufacturers across the country, he paid tribute to the NAM’s 125-year history, celebrated manufacturers’ accomplishments and praised the NAM’s historic Creators Wanted campaign, which was publicly unveiled earlier in the week—asserting that “President Trump will continue to back the efforts just like that one to create job training and vocational education and make it more accessible than ever before.” His appearance capped a three-day event attended by government officials and manufacturing leaders from across the nation.

Thanks for celebrating our 125th anniversary with us, @Mike_Pence! https://t.co/x44fwnQhQQ

— The NAM (@ShopFloorNAM) February 14, 2020

“I’m really here just to pay a debt of gratitude,” Vice President Pence told the manufacturing leaders gathered. “You’ve been investing in your companies and investing in working Americans… You’ve really revived the confidence of the American people and opened doors of opportunity.”

The vice president touted the impact of United States–Mexico–Canada Agreement, which was developed and signed into law with the vocal support of small and large manufacturers. The agreement helped secure the 2 million American manufacturing jobs that depend on exports to Canada and Mexico, the biggest markets for U.S. exports in the world.

“We have a deal in the USMCA that is an unambiguous win for American workers, American manufacturing and American agriculture,” said Vice President Pence. “And we are grateful to each and every one of you for helping to bring it about.”

Vice President Pence also shined a light on several manufacturing companies that are keeping their promises to make bold investments following tax reform and regulatory certainty, including HM Manufacturing, which invested $500,000 in new equipment, hired 20% more workers and raised wages by 25%; BWX Technologies, which created 170 new jobs at three new facilities in Ohio and Indiana; and Nephron Pharmaceuticals, which gave employees a 5% raise.

“All of you in this association and the companies large and small that are represented here, for 125 years have improved the lives of the American people,” said Vice President Pence. “I’m standing in front of some of the most generous and conscientious corporate citizens in America. Your companies get behind literally every worthy cause in every big city and small town in America. So why don’t you give yourselves a round of applause for what you and your employees do to improve the lives of the American people every day. We’re truly grateful.”

Earlier in the week, the NAM awarded its inaugural Alexander Hamilton Award to Advisor to the President Ivanka Trump for her leadership on job training and workforce development.

Thanks for joining us, @IvankaTrump! You’ve shown unwavering commitment to manufacturing like no one else in government has ever done. @ShopfloorNAM is proud to have signed #PledgetoAmericasWorkers. https://t.co/rumIPeA5Am

— Jay Timmons (@JayTimmonsNAM) February 14, 2020

In addition to the Vice President and Ivanka Trump, board meeting attendees heard from Axios’ Mike Allen and Jim VandeHei and political leaders including Maryland Governor Larry Hogan, Senators Mark Warner (D-VA) and Shelley Moore Capito (R-WV) and former Chairman of the Joint Chiefs of Staff Gen. Joseph Dunford.

Today I addressed the @ShopFloorNAM Winter 2020 Board of Directors Meeting in Washington, DC, where I highlighted Maryland’s amazing economic resurgence and the national infrastructure initiative I’m leading as @NatlGovsAssoc chairman. pic.twitter.com/KzwiSh5I68

— Governor Larry Hogan (@GovLarryHogan) February 13, 2020

Enjoyed speaking with @ShopFloorNAM this evening about manufacturing and trade in West Virginia. Looking forward to the benefits of #USMCA and the Phase One China deal on our state’s economy. 🇺🇸 pic.twitter.com/HhZRjHj8v1

— Shelley Moore Capito (@SenCapito) February 13, 2020

Want to shape the future of manufacturing? Get involved in our Creators Wanted campaign.

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement reacting to the 2020 State of the Union address:

“With the historic USMCA, unprecedented China deal, game-changing tax reform and ever-growing regulatory certainty, manufacturers have been given powerful tools to keep investing in our people and our communities. We are ready to join the President in building on this progress and achieve the brighter, more optimistic future he envisioned tonight. It is up to manufacturers to continue keeping our promises—to invest in America, hire American workers and raise wages and benefits, while also providing environmental stewardship alongside economic growth.

“The manufacturing agenda is a post-partisan agenda, and one we have spelled out clearly for candidates and elected leaders in ‘Competing to Win.’ When we agree, as we often did with the President tonight, we will work together, regardless of party. For instance, President Trump is right to issue a bold call to action on infrastructure, and as the USMCA proved, partisan division does not have to be a barrier to progress. On the other hand, we must not curtail our pharmaceutical manufacturers’ ability to conduct vital research and development to cure diseases and fight future epidemics similar to the coronavirus. And on immigration, the solution must be comprehensive, as outlined in the NAM’s ‘A Way Forward.’

“All of us must come together to solve the most pressing challenge facing manufacturers: our workforce crisis. Through the NAM’s historic ‘Creators Wanted’ campaign, we are embarking on a sustained, nationwide effort to reach millions of Americans, to narrow the skills gap and inspire a new generation to pursue the high-tech, high-paying jobs of modern manufacturing.

“For manufacturers, it’s not about politics or personality or process—it’s about good policy, policy that puts us on a trajectory to exceed even our loftiest ambitions. That’s what we expect from our presidents and politicians, and we will hold them accountable, just as we promise to hold ourselves to account as well.”

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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 $2.37 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 Manufacturers or to follow us on Twitter and Facebook, please visit www.nam.org.

Today, the Iowa caucuses will kick off the Democratic presidential primary, beginning the months-long process to decide which candidate will represent the party in November. As is so often the case, the men and women who make things in America are in a position to have their voices heard and play a leading role in determining the outcome—in Iowa and across the country.

Manufacturers account for almost 19% of Iowa’s total economic output, and the 233,000 manufacturing jobs in Iowa make up about 14% of the state’s workforce. Between those manufacturing workers and the tens of thousands more jobs and households supported by manufacturers’ indirect impact on Iowa’s economy, manufacturing voters are poised to play an important role in shaping Iowa’s election-night decision—and manufacturers are positioned to lead on solutions with voters and candidates alike.

“Support for pro-growth policies should span the political spectrum, and for the most part it does,” said Doug Neumann, executive director of the Cedar Rapids Metro Economic Alliance. “During his NAM State of Manufacturing Address, Jay’s message on ‘post-partisanship’ really resonated with the Iowa business community. In my community, we try to lead this way with our elected officials and work with whoever is elected to get things done.”

According to Nicole Crain, executive vice president of the Iowa Association of Business and Industry, the business community in Iowa wants a candidate who supports manufacturing issues and understands their challenges.

“Business leaders like certainty and the ability to plan investments in their business five, ten years into the future,” said Crain. “As the election gets closer, leaders will be looking for a candidate who understands business, is open to hearing the concerns of employers and considers their positions when proposing policies for the country.”

Trade, immigration and workforce are top of mind for manufacturers.

“Iowa manufacturing voters have a crucial role to play during the caucuses and throughout the 2020 election season,” said Michael O’Brien, NAM assistant vice president of advocacy. “That’s why the NAM will work diligently throughout the year to make sure that manufacturing voters understand the issues and the stakes for manufacturing come Election Day.”

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement after President Trump signed the U.S.–Mexico–Canada Agreement:

We once again thank President Trump, U.S. Trade Representative Robert Lighthizer and leaders of both parties in Congress for their herculean efforts to deliver this win for manufacturers of all sizes—from small family businesses to iconic global brands. The USMCA will finally provide manufacturers the certainty they need to keep reaching for new heights and secure the millions of American jobs that depend on North American trade. Manufacturers were proud to help shape the USMCA, to mobilize and build historic bipartisan support for the deal and to be on hand as President Trump affixed his signature to the legislation.

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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 $2.37 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 Manufacturers or to follow us on Twitter and Facebook, please visit www.nam.org.