Transportation and Infrastructure

G7 leaders are focusing on “de-risking,” but not “decoupling” from China, they said in a joint statement covered by CNBC.

The details: “We are not decoupling or turning inwards,” the statement said. However, “we recognize that economic resilience requires de-risking and diversifying.”

• “We will seek to address the challenges posed by China’s non-market policies and practices, which distort the global economy,” the leaders continued. “We will counter malign practices, such as illegitimate technology transfer or data disclosure.”

Biden concurs: President Biden echoed these sentiments at a press conference on Sunday, emphasizing the need to “diversify” supply chains so that no one country has a monopoly on any essential product.

• “It means resisting economic coercion together and countering harmful practices that hurt our workers,” he continued. “It means protecting a narrow set of advanced technologies critical for our national security.”

In sum: “We stand prepared to build constructive and stable relations with China, recognizing the importance of engaging candidly with and expressing our concerns directly to China. We act in our national interest,” the G7 statement said.

NAM in action: As exemplified by its recent Competing to Win Tour in Europe, the NAM is working to bring business and government leaders together to strengthen the resilience of manufacturers in the United States and our democratic allies in the face of greater uncertainty with respect to China.

The last word: “Manufacturers have consistently called for a rethink of the U.S.–China relationship to boost competitiveness globally,” says NAM Vice President of International Economic Affairs Ken Monahan.

• “The strategy requires collaborating with allies for supply chain resilience, addressing discriminatory Chinese policies and creating trade openings through robust agreements. Yesterday’s announcement highlights the path ahead.”

As the Group of Seven summit begins in Hiroshima, Japan, today, President Biden is expected to announce new sanctions on Russia, according to The Wall Street Journal (subscription).

• President Biden’s goal at the summit is likely to be reinforcing the allies’ support of Ukraine as well as their economic defenses against Chinese power.
• This is the summit’s 48th year. The G7 comprises the U.S., Canada, Britain, France, Germany, Italy and Japan.

The details: “The new U.S. sanctions and trade restrictions target goods and services vital to Russia’s military-industrial complex, said a senior Biden administration official who briefed reporters shortly after the president landed in Hiroshima.”

• “They are also aimed at Russia’s ability to extract the oil and natural gas critical to the country’s economy, the official said. Other Western allies will roll out similar new programs, officials said.”

The big picture: Analysts say President Biden—who canceled several international meetings planned for next week to return to Washington for debt talks—faces a difficult task at the meeting: “convincing allies that the U.S. can keep its economic house in order while moving forward on Russia and China,” according to another Journal article (subscription).

The NAM’s moves: During the NAM’s recent “Competing to Win” Tour in Europe, NAM President and CEO Jay Timmons hammered home manufacturers’ support for Ukraine.

• “[T]he most important thing is to support our allies that believe in democracy,” Timmons said during a live Morning Joe interview from Warsaw, Poland. “And American business, I think, can help lead the way to strengthen and support democracy.”

Read more about the NAM’s Competing to Win Tour here, here and here.
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Convention halls are filling back up again following the pandemic, restoring a critical type of “economic fuel” that had been cut off for three years, The Wall Street Journal (subscription) reports.

What’s going on: Attendance at in-person business conferences is on the rise across the U.S., supporting local jobs and wages that had suffered since 2020—particularly in tourist- and conference-heavy cities such as Las Vegas.

• “Economists said that travelers provide an economic and tax boost to cities without using services, like schools. ‘They come, spend and leave,’ said Angelos Angelou, president of an economic-impact research firm that has produced reports for events and conferences like South by Southwest and Lollapalooza. ‘It’s the kind of economic bonanza that any type of city would love to have.’”

​​​​​​​Betting big: Some municipalities are so sure the recovery is permanent that they’ve invested in new conference facilities.

• Seattle recently opened a $2 billion addition to its convention center, and last November, Dallas voters approved their own convention-center expansion—with a price tag of $4 billion—to be funded through hotel taxes.

U.S. natural gas production is likely to keep growing through 2050, while LNG exports will take off, according to new forecasts from the Energy Information Association.

The gist: Natural gas production is predicted to increase 15%, while LNG exports will skyrocket 152% between last year and 2050, according to the EIA’s “Annual Energy Outlook 2023.”

• “Production growth is largely driven by U.S. LNG exports, which we expect to rise to 10 [trillion cubic feet] by 2050,” an EIA blog post explains.

Where it’s happening: “Natural gas production growth on the Gulf Coast and in the Southwest reflects increased activity in the Haynesville Formation and Permian Basin, which are close to infrastructure connecting natural gas supply to growing LNG export facilities.”

• “New liquefaction facilities in Louisiana became fully operational in 2022, ahead of schedule. In addition, new LNG trains in Texas are scheduled to be online by 2025.”

How they figured it out: This projection comes from the “reference case” in the outlook report for 2023.

• “We use different scenarios, called cases, to understand how varying assumptions affect energy trends. The AEO2023 Reference case, which serves as a baseline, or benchmark, reflects laws and regulations adopted through mid-November 2022, including the Inflation Reduction Act,” according to the EIA blog.

Washington, DC – In advance of today’s scheduled vote in the U.S. House of Representatives on H.R. 1, the Lower Energy Costs Act, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“America’s economy, our institutions and our values are being challenged by threats from around the world, which means now is the time to strengthen our energy security and expand domestic manufacturing—both to reduce our dependence on bad actors and to ensure we can support our allies. This bipartisan action to modernize permitting reform would help us achieve these goals by speeding up critical energy, infrastructure and manufacturing investments while we continue our commitment to environmental stewardship,” said Timmons. “I am in Europe right now, witnessing firsthand the consequences of being overly reliant on a country like Russia for energy. In the 21st century, there’s no excuse for letting job-creating projects languish for years to get bureaucratic approval. The Lower Energy Costs Act will bolster manufacturers’ competitiveness in America while also bringing relief to American families and businesses. We thank Speaker McCarthy, Majority Leader Scalise and Majority Whip Emmer for designating this bill as their top priority and for their focus on ensuring our industry can continue providing the leadership our country and our world need.”

Background: In the NAM’s latest Manufacturers’ Outlook Survey, more than 74% of respondents said that permitting reform—which would simplify and speed up the approval process for new projects—would be helpful to their manufacturing company, allowing them to hire more workers, expand their business or increase wages and benefits.

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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 nearly 13 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% 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 National Association of Manufacturers comment submission to the Environmental Protection Agency on its proposed rule to impose more stringent National Ambient Air Quality Standards for Particulate Matter 2.5., NAM Director of Energy and Resources Policy Chris Morris released the following statement:

“Improving air quality in the U.S. is a key priority for manufacturers, which is why they have invested heavily in new processes and technologies that have made manufacturing cleaner and more sustainable than ever. These efforts have contributed to the U.S. successfully achieving some of the lowest levels of exposure to PM 2.5 globally, including lower PM 2.5 levels than France, Germany, Japan and the U.K.

“The EPA’s proposal would significantly increase the number of industrial centers and population hubs in nonattainment areas. That could halt new investment, stop operations in some circumstances and cost jobs.

“Significantly, the NAM’s Outlook Survey for the first quarter of 2023 found that more than 55 percent of manufacturers anticipate the new standard would raise their cost of compliance, and one out of three manufacturers anticipate that the new standards would lead to increased permitting challenges and restrict investment and facility expansion plans.

“The NAM urges EPA to maintain the existing standard as its proposal will hinder domestic manufacturing growth, does not adequately assess the economic and job consequences or identify feasible steps to achieve attainment with new standards.”

-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 $2.81 trillion to the U.S. economy annually and accounts for 55% 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 NAM’s Competing to Win Tour in Europe moved on to London early this week, highlighting the imperative to shore up the U.S.–U.K. relationship—and to urgently address other barriers, like permitting reform and workforce shortages, to enable the U.S. to help allies in the face of Russian aggression and other geopolitical threats.

The issue: Russia’s unprovoked war in Ukraine, the aftermath of the worldwide pandemic and China’s quest for global leadership create a new urgency for expanded trade opportunities between democratic countries.

• The U.S. and the U.K. must work together to shore up supply chains, enhance energy security, boost resiliency and create growth, as NAM President and CEO Jay Timmons emphasized.

The details: Timmons crisscrossed London on Monday and Tuesday, promoting the manufacturing industry and reinforcing its priorities with senior government ministers and officials, including:

• Nigel Huddleston MP, the U.K. minister of state for international trade
• Jonathan Reynolds, Labour Party shadow business secretary (one of the architects of the Labour Party’s industrial plan)
• Jane Hartley, U.S. Ambassador to the Court of St. James’s

Support at home: During his visit, Timmons did an interview with CNN International to discuss the NAM’s new Outlook survey, which found that 77% of manufacturers want to see more trade agreements with Europe.

Making industry connections: At the NAM’s sister organization Make UK, Timmons joined a roundtable with CEO Stephen Phipson and addressed some of Britain’s leading manufacturing companies.

• He spoke about how the U.S. and the U.K. can unlock new trading opportunities going forward and bolster democracy by strengthening commerce.
• The two groups also reaffirmed their commitment to share market intelligence, data and policy work, as well as to facilitate visits for economic delegations promoting trade, investment and commercial opportunities.
• They also voiced their continued and mutual support of the Ukrainian people and of the democratic institutions in their own countries.

What they said: “The ties between the UK and United States go back a long way and we have significant political, economic and trade connections,” said Phipson. “Relations with the US are vital and its market is the second most important for UK goods. In a post-Brexit world, it is likely to assume ever greater importance as part of our efforts to boost global trade.”

• “As world events have made abundantly clear, strengthening democracy, the free enterprise system and strategic alliances in our countries and around the world is essential to our future and the fight against tyranny,” said Timmons. “As the U.S. and the U.K. take steps to build a stronger, more open and secure economic relationship, the NAM urges our leaders to move toward a new U.S.–U.K. market-opening trade agreement that includes strong, clear and enforceable outcomes.”

Meeting manufacturers: In addition, Timmons met with manufacturers that have operations or pending operations in both the U.K. and the U.S. Energy security and regulatory certainty, as well as the worker shortage in the industry, also took center stage in these discussions.

Bottom line: “The tour’s time in London matters to manufacturers in the United States because it strengthens the ‘special relationship’ between the U.S. and the U.K. and boosts the prospects for enhanced cross-Atlantic trade, supporting manufacturing jobs in both countries,” said Ken Monahan, NAM Vice President of International

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on President Biden’s fiscal 2024 budget plan:

“There is no escaping the fact that the tax increases in President Biden’s new budget proposal would reverse the recent significant growth we’ve achieved in American manufacturing jobs and investment.

“After the 2017 tax reform made rates more competitive, manufacturers kept their promises to raise wages and invest in their communities. In fact, 2018 was the best year for manufacturing job creation in the previous 21 years. And in the past two years, as we rebuilt from the pandemic, we’ve created more jobs in the sector than at any point since the Reagan administration. So it comes as a surprise that President Biden, who has vocally championed manufacturing growth in pushing successfully for infrastructure investment and the CHIPS and Science Act, wants to pursue policies that would undo our progress.

“We have to get serious about competing with China; the president’s budget does the opposite. This proposal further undermines manufacturing in America by failing to reverse tax policies that make it more difficult for our industry to perform research, while China currently employs a 200% super deduction on R&D for manufacturing. It’s also now more expensive to buy critical machinery and finance new investments. If these lapsed deductions aren’t reinstated, it will mean lost jobs, less innovation and fewer opportunities for our communities.

“As manufacturers work to lead our economy forward, we also remain committed to lowering health care costs through market-based solutions that deliver choice and flexibility. Unfortunately, this administration’s insistence on imposing drug pricing requirements is an abdication of free market principles that poses serious risks to the development of new treatments and therapies—the very type of innovation that saves lives in America and around the world.

“Manufacturers are committed to growing investment, jobs and wages here in America. We need our government leaders to share that commitment.”

Background: Read more about how these critical tax priorities impact manufacturers across the country 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 nearly 13 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% 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 on President Biden’s visit to Ukraine:

“President Biden’s visit to Ukraine the week of the anniversary of Russia’s brutal and unprovoked invasion shows the world that the United States stands with the Ukrainian people and that our support is unwavering.

“The struggle in Ukraine is more than a war between two countries. It’s a struggle between freedom and tyranny. Manufacturers believe that there are two systems evolving in this world—one that enriches lives and lifts people up into freedom and prosperity, and the other that is oppressive and robs people of their liberty. We must continue to support the Ukrainian people, ensuring that critical supplies keep moving and investing in and rebuilding this war-torn country.

“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. The NAM and our members have demonstrated our unwavering support for Ukraine and its people, and the NAM spoke out firmly against the war with our Board of Directors passing unanimously a resolution at our meeting in March 2022. We supported sanctions against Russia, called for the suspension of Permanent Normal Trade Relations with Russia and mobilized humanitarian relief to Ukraine. Additionally, the NAM’s Emergency Response Committee has worked with NAM members and Project HOPE to support the resettlement of Ukrainians in the U.S. As an industry, we are committed to working with our partners to ensure that the Ukrainian people have the support they need to build a future of freedom and prosperity.”

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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 nearly 13 million men and women, contributes $2.81 trillion to the U.S. economy annually and accounts for 55% 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

Presented by Jay Timmons, President and CEO of the National Association of Manufacturers, the 2023 State of Manufacturing Address was given from Husco International in Waukesha, Wisconsin. Special remarks were given by Kurt Bauer, President and CEO, Wisconsin Manufacturers & Commerce. Special thanks to Husco President and CEO Austin Ramirez and his team for hosting this year’s address.

Read the official remarks here.

We’re hitting the road. This year’s NAM State of Manufacturing Address officially kicked off the 2023 leg of the NAM’s Competing to Win Tour. The tour will continue to spotlight the industry’s rapid transformation, while also focusing on manufacturing’s well-paying careers, diverse workforce and real-world solutions for the industry’s continued growth.

Upcoming stops: Waukesha and Pewaukee, Wisconsin (Tue, Feb 21); Fishers, Indiana (Wed, Feb 22); Harahan and Avery Island, Louisiana (Thurs, Feb 23)

VISIT THE COMPETING TO WIN AGENDA