Transportation and Infrastructure

Washington, D.C. – Following news that the International Longshoremen’s Association and the United States Maritime Alliance have reached an agreement to extend the Master Contract until Jan. 15, 2025, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Manufacturers are encouraged that cooler heads have prevailed and the ports will reopen. By resuming work and keeping our ports operational, they have shown a commitment to listening to the concerns of manufacturers and other industries that rely on the efficient movement of goods through these critical gateways. This decision avoids the need for government intervention and invoking the Taft-Hartley Act, and it is a victory for all parties involved—preserving jobs, safeguarding supply chains and preventing further economic disruptions.

“Manufacturers depend on the stability of our ports to continue building, innovating, delivering products to American families and supporting communities across the country. We commend the International Longshoremen’s Association and the U.S. Maritime Alliance for coming together in the spirit of collaboration and urge both parties to use this time to reach a fair and lasting agreement. Another strike would jeopardize $2.1 billion in trade daily and could reduce GDP by as much as $5 billion per day. We cannot afford that level of economic destruction.”

-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 13 million men and women, contributes $2.87 trillion to the U.S. economy annually and accounts for 53% 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

Passing on the family business can also mean passing on a big tax bill, and family-owned manufacturers are speaking out to keep those bills from getting any bigger. 

What’s happening: As part of its “Manufacturing Wins” campaign to preserve 2017 tax reform, the NAM is calling on Congress to secure the law’s changes to the estate tax.

• Tax reform increased the estate tax exemption threshold, which protects some of a family-owned business’s assets from the tax.
• The threshold is set to be slashed in half at the end of 2025, subjecting more of family-owned manufacturers’ assets to taxation and making it harder for them to pass their business on to the next generation.

Protecting physical assets: Manufacturers constantly invest in physical assets like facilities and machinery to stay competitive, making the estate tax especially damaging.

• “We’re not a liquid company,” said Tom Tredway, president of Erie Molded Packaging in Pennsylvania. “Almost every penny we earn is poured back into our business so we can grow and compete. The increased estate tax exemption threshold is set to expire at the end of 2025, which will threaten my ability to pass the business on to my children.”
• “The estate tax doesn’t just hurt family businesses—it hurts the workers,” added Scott Livingston, president and CEO of HORST Engineering in East Hartford, Connecticut. “It also hurts our customers and the communities that we serve.”

Preserving company values: For Click Bond, a family-owned adhesives manufacturer in Carson City, Nevada, paying a higher estate tax bill could mean compromising the business’s vision and values.

• “We may have become a family business by happenstance, but we remain one by strategy,” said CEO Karl Hutter. “With reduced lifetime estate tax exemptions, family businesses will face the threat of having to liquidate, divest or take in outside capital that may not align with their strategy or values simply to create liquidity to pay a tax bill.”
• “The estate tax rips financial resources from productive organizations,” said Dave True of the 76-year-old True Companies in Casper, Wyoming. “These financial resources are critical to small companies and the families they support.”

Saving livelihoods: For some families, the estate tax threatens to turn a death in the family into the death of the business.

• “When I lost my husband to brain cancer, not only did I have to worry about keeping the business afloat, but I also had to worry about a looming tax bill that might have forced us to halt production altogether,” said Courtney Silver, president and owner of Ketchie, Inc. in Concord, North Carolina.
• Silver, who chairs the NAM’s Small and Medium Manufacturers Group, continued: “If not for the federal estate tax exemption being increased in 2017, Ketchie might not be here today.”

The last word: Lori Miles-Olund, the third-generation owner and president of Miles Fiberglass & Composites, Inc. in Clackamas, Oregon, put it simply: “Congress must preserve the increased estate tax exemption to protect family-owned businesses like ours from potential insolvency when the owner passes away.” 

Washington, D.C. – Following the Canada Industrial Relations Board’s decision ordering rail workers back to work and carriers back to operations, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Manufacturers in the U.S. and in Canada were rightly concerned about the serious impact of a work stoppage that would harm workers, the economy and the quality of life for the many millions who depend on our products. As I discussed with Prime Minister Trudeau in July, if rail traffic were to grind to a halt, workers, small businesses and communities on both sides of our border would be hardest hit. Thankfully, the prime minister and Minister of Labour and Seniors Stephen MacKinnon heard our concerns and took decisive action to avert a significant disruption.

“The manufacturing industry is the engine of the North American economy. The conclusion of this stage of the negotiations means that this engine will continue humming. It is welcome news to manufacturers of all sizes, who count on tens of billions of dollars in cross-border trade between the U.S. and Canada—and the supply chains that make it possible to create life-saving products for hundreds of millions of people.”

-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 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% 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. – As concerns mount about a potential work stoppage around Canada’s rail network that affects the entire North American manufacturing supply chain, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“North American manufacturing supply chains depend on functioning rail links. If rail traffic grinds to a halt, businesses and families across the country will feel the impact. Manufacturing workers, their communities and consumers of all sorts of products will be left reeling from supply chain disruptions. Rail transport between Canada and the United States moves billions of dollars of goods every month, and according to the U.S. Department of Transportation, 14% of the total trade value between our two countries in June 2024. We’ve seen the impact of disruptions at the Canadian border before, and it’s imperative that we avoid another stoppage.

“The flow of materials and products across the U.S.-Canada border is already slowing as preparations are made for a potential work stoppage. Policymakers in the U.S. and Canada must recognize that the stability and reliability of critical supply chains—which directly affects our quality of life—depends on efficient movement of goods across the border.”

Additional data: Total trade flows between Canada and the U.S. via rail in June 2024 were $9.131 billion, representing roughly 14% of total trade flows between the two countries via all modes of transport. Imports totaled $5.319 billion, while exports totaled $3.812 billion. In the first six months of 2024, total trade flows via rail were $55.657 billion. In 2023, total trade flows via rail were $113.860 billion.

-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 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – Following the bipartisan passage of the Energy Permitting Reform Act of 2024 markup in the Senate Energy and Natural Resources Committee, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Manufacturers have been calling attention to the consequences of America’s broken permitting process for years, while building a case for reform. Both sides of the aisle now realize that these critical updates will enable Congress to achieve its broader energy goals and the development of:

• Renewable energy projects;
• Pipelines for traditional energy, hydrogen and carbon capture storage;
• Critical mineral mines and processing facilities;
• Semiconductor and battery manufacturing fabs;
• Interstate transmission lines; and
• Hydroelectric and nuclear power plants.

“These developments are absolutely critical for us to be able to compete with China. As this legislation progresses, many of the commonsense policies outlined in the Energy Permitting Reform Act will help unlock the full potential of our industry, bolster our nation’s energy security and create American jobs. Streamlining permitting processes, cutting red tape, requiring that federal agencies make timely decisions and reducing the potential for baseless litigation will help prevent years-long delays for manufacturers—delays that give other countries a distinct advantage and put our own security at risk. America should never be content with a system that can take 10 or 15 years to approve urgently needed projects, when approval can take a fifth of that time in other countries that still adhere to high standards.

“We thank Chairman Manchin and Ranking Member Barrasso for introducing this legislation and look forward to working with lawmakers to advance it.”

-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 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% 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.

A labor strike on the U.S. East and Gulf Coast strike would have dire consequences for the maritime supply chain, the NAM and partner organizations told the Biden administration this week—which is why it’s vital the administration intervene now to restart stalled labor negotiations between dockworkers and an alliance of port operators and ocean carriers.

What’s going on: “Earlier this month, contract negotiations broke down between the International Longshoremen’s Association and the US Maritime Alliance,” Bloomberg Government (subscription) reports. “The current agreement, which covers about 45,000 dockworkers at facilities including six of the 10 busiest US ports, expires Sept. 30.”

• The NAM and more than 150 other industry organizations on Wednesday urged the administration to “immediately work with both parties to resume contract negotiations and ensure there is no disruption to port operations and cargo fluidity.”

Why it’s important: Other global shipping-related setbacks and threats mean the U.S. cannot withstand another challenge, the groups said. Continued Houthi terrorist attacks on commercial ships in the Middle East have resulted in “congestion and lack of equipment at overseas ports, carrier capacity issues as they continue to divert vessels away from the Red Sea and increased freight rates.”

Precedent set: Last September, after 14 months of negotiations and several work stoppages and walkouts, West Coast dockworkers reached a labor agreement with the Pacific Maritime Association—following NAM-urged intervention by the Biden administration.

• “We witnessed a significant shift of cargo from the West Coast to the East Coast and Gulf Coast ports because of the challenges and uncertainty during the last West Coast port labor negotiations,” said the groups. “While much of that business has remained at the East Coast and Gulf Coast ports, we are starting to see a shift back to West Coast gateways, where a long-term contract is in place, especially as we enter the busy peak shipping season.”

It’s not every day that an international company meets an ambitious sustainability goal two years early. But last May, that’s exactly what happened at 119-year-old transportation logistics provider C.H. Robinson.

• The goal under discussion: a company-wide reduction in intensity of Scope 1 and 2 emissions—those emissions generated by the company’s own operations—of 47% (more than the 40% targeted). C.H. Robinson had previously calculated meeting the objective by 2025.

Simple but effective: “Most of it was looking at where we could find inefficiencies” and correcting them, said C.H. Robinson Vice President of Environment, Social and Governance Rachel Schwalbach. Some changes came from suggestions “our own employees brought forward: LED lighting, responsible use” of electricity.

• Efforts also included a marked increase in the company’s use of renewables generally. From 2019 to 2023, C.H. Robinson renewable-energy purchases rose 40%.

Not an either/or proposition: The Eden Prairie, Minnesota–based company—which solves logistics challenges for clients through freight forwarding and other innovative transportation solutions—is proof positive that businesses don’t have to choose between good environmental stewardship and profitability.

• In fact, “sometimes the sustainable option is actually the less expensive option,” Schwalbach told the NAM. “C.H. Robinson is working with suppliers every day to drive out waste, and often that’s been because we’ve looked at it through a lens of cost savings or time reduction. Now it’s also through the lens of sustainability.”
• What’s more, “if you’re approaching sustainability right, it should be tied to your overall business strategy. Sometimes it’s as simple as making sure you’re compliant with rules and regulations” as you meet sustainability requirements.

A competitive advantage: Reducing the footprint of operations can be a competitive advantage for manufacturers, too.

• “We get asked about sustainability by nearly all our stakeholders, so it really has to be a part of strategic decision making across the business,” Schwalbach continued. “Our shippers are also getting asked about [sustainability] by their investors and customers. People across the business are thinking about it, so it’s [to our advantage to] make sure it’s integrated across all areas.”

No business is an island: Businesses must keep in mind that sustainability is a shared interest, and the environment’s health is best served by teamwork, not isolated efforts, according to Schwalbach.

• “As companies continue to put big [sustainability] goals out there, I cannot emphasize enough the need for collaboration across industries, as clichéd as it sounds,” Schwalbach said. “Having people who are willing to come to the table and say, ‘Hey, let’s figure this out together,’ is going to be pretty critical.”
• For C.H. Robinson, that means engaging with customers, carriers and a broad range of other stakeholders.

Supporting climate-friendly practices: The right moves by policymakers can also help support the private sector’s sustainability efforts.

• “As we’re looking increasingly at alternative fuels and electric vehicles here in the U.S., we need an electric grid that can support the transition to a lower-carbon economy,” Schwalbach said. “Continuing to invest in [strengthening] the grid will help us invest in the right technologies. We need to be able to move forward quickly in a way that doesn’t cause disruption to the supply chain and transportation.”
• Companies want clarity around regulations, too. “There are so many [regulations] coming out right now, and companies want to know, ‘How do I get the right [climate-related] data? How do I make sure the data are accurate?’”

In for the long haul: So what’s next for C.H. Robinson? A continued focus on conservation, for one thing.

• “You meet your goals, and that’s really exciting, but there’s no time to sit around,” Schwalbach said, adding that the company is now in the process of figuring out “what new sustainability goals will look like for carbon reduction.”
• Ultimately, those goals will be met by ensuring a commitment to the environment remains a company-wide focus, she told us.
• “Doing sustainability well means it’s integrated. C.H. Robinson is a 119-year-old company, and sustainability is about making sure we’re going to be successful for another 119 years.”

In recent years, an American household company name has been helping keep Ukraine’s nuclear reactors running (The Wall Street Journal, subscription).

What’s going on: After Russia’s invasion in 2022, Ukraine stopped buying nuclear fuel from Moscow, formerly its top supplier. That’s when Westinghouse Electric stepped in.

• The Pennsylvania-headquartered company “now makes fuel bundles that are compatible with all of the country’s [Soviet-designed VVER] reactors and is working on a plan that could allow Ukraine to start making some of that fuel itself. Ukraine also plans to build nine Westinghouse-designed reactors.”

Why it’s important: The change is a victory for the West, “which has long sought to erode Russia’s dominance in the industry and the political influence that comes with it.”

• Russia has about 44% of the world’s uranium-enrichment capacity, which is critical because nuclear reactors use uranium for power production.

A decade in the making: After Russia seized Crimea in 2014, Ukrainian state nuclear company “Energoatom ramped up purchases of Westinghouse’s fuel assemblies and, by the beginning of 2022, six of Ukraine’s 15 reactors had been loaded with fuel from the company.”

• The firm also began supplying Ukraine with fuel assemblies for the VVER-440 reactor, of which the country has two.

A critical moment: As part of its full-scale invasion of Ukraine two years ago, Russia occupied the country’s largest nuclear power station, Zaporizhzhia, and attacked other energy infrastructure.

• Energoatom had to move fast to maintain deliveries of Westinghouse’s VVER-440 fuel, without which one of Ukraine’s nuclear reactors might need to be shuttered, worsening an electricity shortage.
• “What followed was a high-stakes race to make the fuel and load it in a reactor near the western Ukrainian city of Rivne, which faced occasional aerial bombardment despite being far from the war’s front line.”
• Westinghouse raced to source new machinery and rework its factory floor in Sweden, “upending traditional ways of working in a tightly regulated sector that is better known for its glacial pace.”

How it succeeded: The company set up a 60-person task force to meet and identify potential bottlenecks in production and launched talks with other European utilities.

• It got the Czech Republic and other countries with VVER-440 reactors “to accept the same basic fuel assembly design as the one Westinghouse was planning to use for Ukraine—a step officials said helped speed up production because it eliminated some of the time the company would usually spend on customization.”
• Utilities in five countries, including Ukraine, have since signed deals with Westinghouse for fuel deliveries.
• Experts from Energoatom went back and forth between Ukraine and Sweden to help with the fuel development, and in September, the new fuel assemblies were ready.

A nuclear future: To produce the fuel, Westinghouse purchased new manufacturing equipment, repurposed older equipment and 3-D printed some detailed components.

• “Westinghouse delivered a first batch of VVER fuel to a nuclear power plant in Bulgaria this spring and has said a delivery to the Czech Republic should take place this year.”

Washington, D.C. – Today, the National Association of Manufacturers, joined by the American Chemistry Council, filed a petition in the D.C. Circuit Court of Appeals challenging the Environmental Protection Agency’s final rule setting individual standards for six per- and polyfluoroalkyl substances, also known as PFAS, in municipal water systems.

“Manufacturers support commonsense regulations on PFAS that recognize the criticality of these substances across several industrial sectors—for many of these critical applications, there are no viable alternatives,” said NAM Chief Legal Officer Linda Kelly. “What the EPA did, however, was to bulldoze ahead with standards that set an acceptable level for PFAS at near zero—which is wholly infeasible and threatens these vital substances’ continued application in manufacturing processes. In doing so, the EPA relied on a deeply flawed cost-benefit analysis and failed to follow the clear-cut statutory procedures required by the Safe Drinking Water Act, among other substantive and procedural deficiencies. The NAM Legal Center is filing suit to overturn this unachievable standard and protect manufacturing operations and jobs across the country.”

PFAS are a diverse group of chemicals essential to modern life, including in the transformers used to power electric grids; in the semiconductors and solar components needed for clean energy transition; and in the aircraft, munitions, fire suppression systems and communication devices required for national security.

-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 13 million men and women, contributes $2.89 trillion to the U.S. economy annually and accounts for 53% 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.