Manufacturers Urge Swift Resolution to Ongoing Rail Negotiations
Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement as negotiators work to reach an agreement between Class I railroads and all labor unions representing the freight rail workforce. Several organizations have not yet ratified the deal tentatively agreed to by union leadership and rail industry representatives in September that delayed the possibility of a strike.
“Manufacturers are urging congressional leaders to be prepared to bring stability and predictability to the economy if a rail strike and shutdown occurs. We already face economic turmoil with rising costs, product shortages and high inflation. Any nationwide rail strike or shutdown will cause even more economic pain. Manufacturers urge all parties to work rapidly—for the good of the country—to conclude this collective bargaining process.”
Background: A rail strike could begin as soon as 12:01 a.m. EST on Saturday, Nov. 19. Currently, the majority of the unions representing the rail workers have agreed to extend that deadline to Friday, Dec. 9, though a unanimous decision to maintain the status quo is required for that extension.
On Thursday, Oct. 27, the NAM joined hundreds of other associations in calling on President Biden to ensure a swift resolution and reiterating support for the work of the Presidential Emergency Board, which has aided in the talks.
Currently, the American freight rail network accounts for nearly 40% of total freight volume, and a strike or delay in finalizing a long-term contract would have devastating impacts across surface supply chain networks and economic output.
-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 12.9 million men and women, contributes $2.77 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 58% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.
What’s Up With the Rail Negotiations?
With the possibility of a national rail strike looming in the near future, the NAM is working with association members, congressional leadership and the White House to urge all parties toward a final resolution. On Monday, the NAM held a members-only briefing with remarks from senior leadership of the Association of American Railroads and personnel involved in the ongoing collective bargaining process.
- NAM members in attendance had the opportunity to hear about the state of play directly from representatives of the rail industry, and the message was consistent with the NAM’s own: that the situation is critical, and that a lack of an agreement would be devastating for railroads, for manufacturers and for the wider U.S. economy.
The background: For nearly three years, railroads and their unions have been discussing the outlines of a new long-term contract.
- Two months ago, U.S. Class I railroads and the various labor unions composing the rail workforce agreed to a deal brokered in part through efforts led by the Biden administration that temporarily averted a strike, pending ratification votes by each union’s rank-and-file membership.
- Although more than half of the unions involved have now ratified the agreement, at least two unions have voted to reject it—raising the likelihood of a strike.
The situation: Seven unions have ratified the proposed agreement, two have rejected the deal, and three have yet to vote. As it stands now, the hard deadline for unanimous agreement by all unions is 12:01 a.m. on Saturday, Nov. 19, at which point a strike could be called.
The outlook: During the NAM’s event, the speakers acknowledged that Class I freight rail companies will have to begin making decisions about possible disruptions and metering rail service as soon as this weekend.
- Leading up to the Nov. 19 deadline, manufacturers may receive notifications that some products cannot be moved on certain rail lines.
Next steps: It will be critical for stakeholders to press Congress and the administration either to work with unions to extend the Nov. 19 deadline, or to intervene with legislation that puts in place an agreement like the one recommended in September by the Presidential Emergency Board.
What we’re saying: “Manufacturers are urging congressional leaders to be prepared to bring stability and predictability to the economy if a rail strike and shutdown occurs,” NAM President and CEO Jay Timmons said today.
- “We already face economic turmoil with rising costs, product shortages and high inflation. Any nationwide rail strike or shutdown will cause even more economic pain. Manufacturers urge all parties to work rapidly—for the good of the country—to conclude this collective bargaining process.”
NAM Guides Treasury, IRS on Climate Incentives
The Treasury Department and the IRS can help the U.S. meet its climate goals—if both agencies “can leverage private sector ingenuity, expertise and capital” both transparently and inclusively, the NAM told Treasury late last week.
What’s going on: This year’s reconciliation legislation contains advanced manufacturing, clean energy and climate incentives to invest $369 billion in actions that will address climate change, including $270 billion via direct tax incentives.
- These measures can be successful if “Treasury and the IRS quickly address the critical details of how each of these incentives will work in tandem with clean energy and advanced manufacturing projects that have already begun and those that have yet to be conceived,” NAM Vice President of Energy and Resources Policy Rachel Jones told the agencies.
- Treasury must also work to ensure the incentives are used “in a way that quickly brings new private capital to bear” while keeping projects on schedule.
Manufacturers’ input needed: Engagement with manufacturers should help the agencies develop their rulemaking, Jones said.
- “To meet our shared goals, including achieving meaningful emissions reductions, Treasury and the IRS should maintain an open line of communication with the NAM’s members of all sizes and sectors,” she said.
- “Without thoughtful engagement with manufacturers, the clean energy and climate incentives could have the opposite of intended results, and in some cases projects could stall, communities will face further disappointment, energy security will be jeopardized and climate goals will go unmet.”
What’s not needed: “It would be shortsighted to implement guidance and rules that exclude or indirectly penalize manufacturers that are already making significant capital investments in clean energy projects,” Jones said.
Teamwork—and plain language: The NAM also urged Treasury and the IRS to make clear their definitions and qualifications when it comes to clean energy and climate tax credits.
- Jones recommended cooperation across the “entire federal family” to combat climate change—from the Nuclear Regulatory Commission to the Department of Defense to the Federal Energy Regulatory Commission and many more.
NAM about town … The NAM participated in a Treasury roundtable yesterday where it shared the specific concerns and constructive input from manufacturers more directly.
“Manufacturing on the Moon”: The Next Lunar Vehicle
When astronauts return to the surface of the moon in 2025, they will find a car waiting to pick them up. The new lunar mobility vehicle, designed and built by Lockheed Martin and GM with tires by Goodyear, will be sent up prior to the humans—but more excitingly, it will stay there long after they leave. In fact, the vehicle will remain on the moon for many years, performing experiments and fulfilling commercial contracts autonomously in between NASA missions.
We were delighted to learn all this and more in a recent interview with Kirk Shireman, Lockheed Martin’s vice president for the Lunar Exploration Campaign, who told us all about the astonishing technology involved. Here’s what we learned about the vehicle, which will be the first on the moon since 1972. Though those rovers were the “finest technology” of their day, as Shireman says, the new lunar vehicle is certainly the finest of ours.
The new design: To withstand the moon’s environment for years on end, the vehicle will require state-of-the-art components and materials. The companies are still in the “materials selection phase,” says Shireman, but he did share several of the broad requirements.
- The vehicle will use the latest in battery technology, allowing it to power down almost completely during the long, frigid lunar night (which, like a lunar day, lasts for 14 Earth days). Temperatures will range from -280 degrees Fahrenheit at night to 260 degrees Fahrenheit during the day.
- Not only must the materials hold up under the temperature shifts, which occur very rapidly, they must also withstand the sharp, abrasive electrostatic dust that “clings to everything,” says Shireman.
- In addition, the vehicle must be light—it’s tough to transport things to the lunar surface, and every ounce counts.
- And last, safety is of course paramount; the vehicle must be easy to enter and exit for the astronauts. The vehicle’s speed will top out at about 12 mph, also for safety reasons.
Testing: The moon has only one-sixth of the Earth’s gravity, and it’s pretty much impossible to simulate driving in such conditions while here on Earth. The engineers must rely on virtual reality as well as some physical tests, Shireman explains.
- GM’s “driver in the loop” simulator fulfills this function, allowing engineers to “drive” in the environment and gravity of the moon. (Shireman, who recently tried out the simulator, tells us that it is extremely challenging.)
- However, physical testing does have some important uses. Just like any other autonomous vehicle, the lunar vehicle must be tested to ensure it “can’t get into a place it can’t get out of,” as Shireman puts it—and that can be done in Earth’s gravity.
- Engineers will also perform other physical tests on the materials, including lighting tests to ensure the vehicle’s sensors can cope with the blinding light on the moon, where everything looks either white or black.
Advanced manufacturing . . . for the moon: Once the vehicle is on the moon, Lockheed Martin and GM will face a challenge very familiar to other manufacturers: deciding how to collect, organize and transmit data from their equipment.
- The vehicle will monitor its own performance and the lunar environment via a host of sensors. It can also physically carry other instruments for experimentation, says Shireman.
- However, the lunar program will “have more data than pipe” (i.e., the means of returning data to Earth) and will need to prioritize how much and how frequently it transmits information.
- And unlike manufacturers communicating with their equipment on Earth, the engineers will have to cope with delays in response time, which could take several seconds or longer, says Shireman. If the rover is located on the back side of the moon, the signal must go through a relay satellite before reaching Earth.
No garage: Out of curiosity, we asked Shireman an earthling’s question: will the lunar vehicle have some sort of garage where it can seek protection from the cold or sun?
- The answer to that is no—it will simply park itself wherever it happens to be to wait out the night. It’s “much more useful if you can avoid going back anywhere,” says Shireman, because that means the vehicle is not tied down to one spot.
- Even though it would be nice to be able to park it in a garage, which would keep the vehicle warm, the tradeoff is not worth it, he explains.
Moon activities: The lunar missions will have tremendous scientific value, not least because these vehicles can roam widely and produce granular maps of the moon’s landscape. However, they are designed for commercial applications as well.
- The companies are still exploring their options, Shireman says, but these may include transporting commercial lunar payloads and helping other companies (and countries) explore the moon’s resources.
- Then there is the “coolness” factor—people might pay just to interact with this technology, for example by driving the rover telerobotically from Earth. (Sounds like fun!)
The last word: As Shireman says, the rover itself is the foundation of a new venture, not an end point. “The rover isn’t just a thing to be manufactured; it will help us manufacture things on the moon”—and advance lunar exploration and commercialization where it hasn’t gone before.
Take a look: Check out the lunar mobile design in action here, in an animated video made by GM and Lockheed Martin.
NAM VP Monahan Talks International Economics
As the manufacturing industry grapples with disruptive forces in the U.S. and around the world, companies are looking for more certainty and opportunity.
NAM Vice President of International Economic Affairs Ken Monahan spoke about these issues with UPS President of International Public Affairs Penelope Naas in a panel discussion during the UPS Supply Chain Solutions virtual conference on Oct. 5.
The big idea: “Manufacturers of all sizes must be able to compete in a global economy by selling not just to consumers in the U.S., but also to billions of consumers globally,” said Monahan.
- “For us, international economic growth is core to our DNA—and it is absolutely critical that we increase opportunities for those 95% of the global population that lives outside of the U.S.”
- The NAM emphasized these broad priorities in its just-released “Competing to Win” policy agenda.
The challenge: “We’ve just seen wave after wave of supply chain disruptions, and the impact that that’s happening on the ability of manufacturers to operate and engage not just in the U.S. but globally,” said Monahan. “In a recent quarterly survey [of NAM members], 78% of our leaders listed supply chain instructions as a primary business challenge.”
- According to Monahan, the global nature of manufacturing underscores “the importance of our industry working to ease the types of global supply chain bottlenecks that are impacting so many businesses around the world … easing uncertainty and … knocking down unfair trade barriers that continue to stymie the growth of economic activity globally.”
Problems and solutions: Monahan named COVID-19, the Russian invasion of Ukraine and disclosure requirements that require more scrutiny of supply chains as key factors impacting manufacturers—and emphasized the need for diverse sources of products to ensure supply chain resiliency in the future.
Building partnerships: Monahan pointed to the importance of robust trade agreements and partnerships with economic allies to secure resilient supply chains and promote fair competition.
- “When it comes to trade, we need to think through ways in which we can deepen our partnerships with our friends and allies,” said Monahan. That means “seeking trade agreements and cutting-edge, best-in-class frameworks with our trading partners to encourage increasing standards to U.S. levels.”
Monahan also noted a series of ongoing U.S. efforts with global trading partners, including in the Indo-Pacific region, Europe, the Americas and Kenya. He made clear that the NAM is working to promote new agreements that open markets, strengthen U.S. innovation and technology standards and increase global standards around trade rules, among other priorities.
- Such U.S. global engagement is “demonstrating to manufacturers that the U.S. is back on the field,” said Monahan. “But at every opportunity, we are pushing the administration to think bigger, be even more ambitious and take this opportunity in front of it.”
Promoting transparency: Monahan spoke about the importance of manufacturers’ insight into their supply chains.
- “Companies need to be knowledgeable about as many tiers of their supply chains as possible and have strong due diligence and compliance programs in place to ensure to the maximum extent possible that goods are not being sourced or sold to entities that use forced labor or are on various export control lists,” he said.
The last word: “We need to be able to really put forward and advance the same principles globally that we do here at home as manufacturers: nondiscrimination, fairness, equal opportunity and competition,” said Monahan. “We are at our best when we are advancing those priorities globally and in the U.S.”
Timmons Lays Out Manufacturing Priorities
NAM President and CEO Jay Timmons is on a barnstorming tour of the U.S., to raise more support among leaders for addressing supply chain challenges, creating more manufacturing jobs and making the country more resilient. He brought this message to the 2022 Arizona Manufacturing Summit in Phoenix, Arizona, yesterday.
Manufacturing’s strength: “I’m pleased to report that manufacturers are shattering expectations across the United States,” said Timmons. “Here’s one encouraging fact: manufacturers have now recovered all the jobs the industry lost at the start of the pandemic—and then some. There are more than 12.8 million people working in manufacturing… And that’s because we’re doing what we’ve always done. We’re solving problems, we’re innovating and leading into the future.”
Challenges ahead: “Inflation has reached the highest level in decades,” said Timmons. “Supply chains are still strained, making it harder to move resources and products. Global instability—especially Russia’s war on Ukraine—shows us it’s more important than ever that we secure domestic energy supplies.”
- “We’re facing a workforce crisis, with less than six job seekers for every ten jobs in America. And almost 70% of Americans today say the country is on the wrong track. Now, we’ve seen some moments of historic bipartisan action in Washington … But there is so much more to be done.”
Competing to Win: Timmons pointed to the NAM’s policy roadmap, “Competing to Win,” which offers an agenda for manufacturing competitiveness on issues including the following:
- Taxes: “We need U.S. tax policy to keep up and encourage more industrial investment here,” said Timmons. “So, we’re calling for making the 20% deduction for pass-through income permanent—and expanding it. The small and medium-sized businesses here deserve confidence that they won’t lose that all-important tool. And we need to fix provisions of the tax law that are making R&D and capital investment more expensive starting this tax year.”
- Trade: “While we’re working on tax policy here at home, we also need to expand opportunities to sell our products overseas,” said Timmons. “Exports are part of our industry’s lifeblood. That means policymakers should hold countries accountable for practices that harm manufacturers in the U.S. We should continue pursuing cutting-edge trade deals, while ensuring that the agreements already in place are delivering for our industry. And we should reject policies at international bodies like the World Trade Organization that would take away intellectual property rights.”
- Immigration: “We need Congress to fix the broken, unreliable immigration system,” said Timmons. “Clearly, we need border security, and we need more avenues for people to come legally and work. It’s critical to our economic competitiveness—and consistent with our values.”
The way forward: “It can be disheartening to know that so many Americans don’t believe the country is on the right track,” said Timmons. “But a focus on policy—getting things done, rather than blaming each other—can change that. And manufacturers are positioned to lead. The work we do to create jobs and to improve the quality of life is essential, and we can’t let up. We won’t let up.”
Manufacturers Help Hurricane-Hit Communities
Hurricane Ian’s devastating landfall in Florida Wednesday afternoon marked the second significant storm to hit the U.S. and territories in less than two weeks. But as is usually the case when catastrophe strikes, manufacturers are already among those leading the charge to help the communities affected.
Manufacturers mobilize: In Puerto Rico, where approximately one-third of all residents remain without power following Hurricane Fiona Sept. 18, manufacturers including Dow, UPS, Coca-Cola, Ecolab and Toyota are funding product donations across the island through NAM partners Good360 and SBP.
What’s happening: These NAM partner organizations are providing on-the-ground updates and working to get products where they’re needed most. Items of greatest need include:
- Solar-powered power generators;
- Nonperishable foods and ready-to-eat meals;
- Mold remediation products;
- Oxygen tanks;
- Hygiene kits and supplies;
- Drinking water;
- New clothing; and
- School supplies.
Meanwhile, the work is just beginning in Florida to respond to Hurricane Ian, with anticipated items including drinking water, nonperishable foods, hygiene kits, tarps, blankets and mold remediation products.
NAM in action: The NAM’s Emergency Response Committee is an employee-led, volunteer group that works year-round with nonprofit partners, including Good360, SBP and Project HOPE, to provide NAM members with disaster-preparedness resources and training.
- These resources, which include e-learning modules, fact sheets and webinars, enable manufacturers to support their employees ahead of, during and in the aftermath of disasters.
- The NAM’s ERC also helps manufacturers activate to aid their communities when disaster strikes—and it works to identify and highlight members that are leading this critical work.
Be prepared: In a webinar sponsored by the NAM’s ERC, Amanda Gallina, SBP community engagement manager, and Matt Woodruff, vice president of public and government affairs for Texas-based tank barge operator Kirby Corporation, gave their suggestions for hurricane preparation.
For businesses: Woodruff provided some commonsense advice for employers:
- Have a plan: Have a hurricane-preparedness plan and ensure that all employees understand it—before hurricane season starts.
- Make a list: Create a checklist of tasks that must be done during the season, starting with the first day.
- Set up: Create and offer remote work sites for affected communities and employees.
- Support: Provide support to the families of employees who live in disaster-hit areas.
The last word: “The NAM stands ready to provide resources and support for its manufacturing members and the communities in which they operate in all conditions,” said NAM Director of Member and Board Relations Isabelle Powell.
- “We urge members to contact their membership directors with questions on how to better prepare their team or support people in their communities.”
For more information on manufacturer disaster preparedness or to be added to the NAM’s ERC mailing list, please email [email protected].
Building Infrastructure That Works
As supply chain disruptions and industrial shipping challenges of the past few years have proven, the U.S. infrastructure network is in dire need of a comprehensive overhaul. That’s why it’s a key focus of the NAM’s “Competing to Win” policy roadmap.
Turnkey fixes: “Competing to Win,” which focuses on immediately implementable solutions for congressional leaders in 12 policy arenas, enumerates a wide range of policies that will bolster manufacturers’ competitiveness.
Historic and bipartisan: With its $1.2 trillion investment, last year’s Infrastructure Investment and Jobs Act provided a solid foundation for upgrading roads, airports, bridges, ports, railroads and more.
- In fact, much of the final legislative text of the IIJA resembled proposals included in “Building to Win,” the NAM’s blueprint for modernizing our transportation, energy, water and digital infrastructure.
- The legislation contains nearly $550 billion in new federal appropriations for projects ranging from bridge and highway updates to significant broadband expansion and community climate resilience efforts.
The NAM’s plan: The NAM’s latest policy prescriptions are commonsense ideas that will help policymakers make the best use of the IIJA and enhance American competitiveness. Here’s a quick tour of the most important aspects it addresses.
Funding: The first order of business is paying for the upgrades. Policymakers should modernize user fees that support road and runway projects with much-needed funding.
Efficiency: Next up is fixing the all-too-sluggish pace of infrastructure projects. Some of the NAM’s recommendations:
- Keep improving the broken permitting process to decrease time-consuming reviews and eliminate burdensome costs.
- Clear the extensive backlog of essential infrastructure projects that are already in the planning process and awaiting final approval.
- And last, streamline regulatory agencies’ processes so that key transportation projects don’t get tripped up by more red tape.
Flexibility: Public–private partnerships and innovative collaboration between industry and government should play a large role in these upgrades, but not every approach is universal. Policymakers should maintain key funding sources and keep the federal government involved but retain a results-oriented focus to improve our nation’s infrastructure.
The last word: “‘Competing to Win’ builds on the historic gains made through last year’s Infrastructure Investment and Jobs Act and presents policymakers with a roadmap for improving American economic prosperity,” said NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling.
- “Manufacturers are the backbone of our national industrial base and rely on all parts of the transportation supply chain to create, assemble and ship to market essential products and consumer goods. The steps outlined in this plan are commonsense and will generate the economic growth needed to enhance American companies’ competitiveness in a global marketplace.”
Kigali Ratification a Win for Manufacturers
The Senate voted yesterday to ratify the Kigali Amendment—an international greenhouse gas–reduction accord that is more meaningful than any the U.S. had agreed to before. Long advocated by the NAM, this ratification is a major step forward for manufacturers and their ability to compete effectively and sustainably.
A climate-action model: In a strong bipartisan 69–27 vote, the Senate approved the amendment, a change to the 1987 Montreal Protocol that phases down the use of hydrofluorocarbons (commonly used refrigerants) in favor of more efficient next-generation alternatives.
- The measure, which the NAM called for in its climate change roadmap, “The Promise Ahead,” “could help avoid a half-degree Celsius of global temperature increases by the end of this century,” according to POLITICO Pro’s E&E News (subscription).
- The ratification builds on a move for which manufacturers also pushed, the 2020 legislation requiring the Environmental Protection Agency to issue rules to phase down nonessential HFCs by 85% by 2036.
Manufacturers approve: Many manufacturers were delighted by this move. “Trane Technologies applauds senators on both sides of the aisle for voting to ratify the Kigali Amendment,” Trane Technologies Chair and CEO Dave Regnery told Input.
- “In addition to creating 33,000 U.S. jobs, stimulating $12.5 billion in new investment in the U.S. economy and boosting U.S. exports by 25%, ratifying Kigali aligns with our bold commitments to reduce emissions through sustainable innovation.”
Accountability for China, India: Critically, the legislation fortifies “our global leadership and put[s] the U.S. in a position to hold countries like China and India accountable,” NAM Vice President of Energy and Resources Policy Rachel Jones said in a communique to Congress—which was quoted by Environment & Public Works Committee Chairman Sen. Tom Carper (D-DE) on the Senate floor Tuesday.
- The amendment will also “protect American workers, grow the economy and improve our trade balance all while encouraging further innovation to strengthen America’s technology leadership,” Jones wrote.
Inside the NAM’s advocacy: “We were able to leverage our longstanding policy experience, strategic partnerships and our depth of relationships in the Senate to adeptly navigate the ever-changing and challenging politics,” said NAM Senior Vice President of Policy & Government Relations Aric Newhouse.
- “Ultimately, the NAM’s support and long-term engagement was able to shepherd this crucial priority for manufacturers across the finish line in a bipartisan way that doesn’t force a false choice between environmental protection and economic growth.”
The last word: “This action proves that if we work together—if we rise above politics and partisanship and focus on solving problems—we can make our vision of a brighter tomorrow into reality,” Jones said in a statement.
How One Manufacturer Is Reinvigorating a Small Nebraska Town
Deshler, Nebraska, has a population of 747. It has one grocery store and one gas station, and its local high school graduates approximately 18 seniors each spring. It’s also the global headquarters of international irrigation firm Reinke Manufacturing, which employs a large number (about 600) of the town’s residents.
A great job: Working at Reinke has many perks, including generous pay and benefits, but until recently, the company had a hiring challenge to overcome in one specific area: housing.
- “We are so rural that we were having difficulty getting people,” Reinke Manufacturing President Chris Roth said. “We could recruit them easily, but then it was like, ‘Well, where am I going to live?’”
A solution—with an added perk: Around 2012, Roth and other leaders at Reinke came up with a fix: The company would purchase a house for a new employee and rent it to him at a reasonable fee.
- After that, the firm was on a roll. “We started to buy up lots with homes that needed to be torn down, homes that have been vacant for years … and put up something else” in which employees could live, Roth said. The move has “improved the town, too,” he added.
- The first build was a fourplex with efficiency apartments. “There’s a bedroom in the back, a bathroom and a kitchenette. People like those; they’re really nice.”
Expanding a vision: The efficiencies are mostly for single people, however, and Reinke wanted to have options for prospective employees with families, too. So, it began thinking bigger.
- “Our second fourplex was a building with two duplexes,” Roth said. “These are two-bedroom units, and small families live there.”
- Soon the company began purchasing single-family homes, too. It currently rents out seven such houses—all available for sale to the employees.
Even bigger: In early 2021, Reinke made its biggest investment in affordable employee housing yet. It purchased an entire motel in nearby Hebron, Nebraska, and turned it into apartments.
- The building now houses 40 people, some of them families. “It was run down when we bought it, but all brick and had a newish roof, so we were able to save a lot of it,” Roth said.
- In addition, the company recently broke ground in Deshler on a two-story, eight-unit housing complex of two-bedroom apartments that will be ready in spring 2023.
Game changer: Since Reinke got in on the housing game, recruitment and retention of top employees “is easier now,” Roth said. “They’re willing to move because they know we’ll have housing. If you’re going to move several states, you want to know where you are going to live … There really isn’t anything on Apartments.com [in Deshler].”
- Another benefit for Reinke employees has been that their new landlord requires less up-front outlay. “A deposit and first and last months’ rent is a lot, and it can be a problem for a lot of folks,” Roth said. “We don’t necessarily need all that.”
- The program is so popular, Roth said, there’s currently a waiting list for the units.
Other efforts: In addition to employee housing, Reinke is increasing its presence and education efforts at the local schools in a bid to recruit talent sooner.
- The company started an employee-taught welding program at Deshler High School, which allowed the company to develop its own curriculum using American Welding Society Standards.
- “It gives us the opportunity to get in front of kids and teach them skills that we need,” Roth said. Reinke offers a similar program to adults through a cooperative effort at a community college.
- A Reinke-run middle school program helps students learn to use CNC machinery, with which the company manufactures parts. Through another program at the middle school, the company teaches a class on AutoCAD, software that allows users to create detailed two- and three-dimensional drawings, as well as courses on basic electrical and hydraulics skills.
The last word: Worker housing and manufacturing classes for young people will do more than create a top-notch workforce for the company, Roth said.
- “A lot of times kids will graduate and go to Omaha or Lincoln, and they don’t come back,” he said. “This is a way, hopefully, to keep people here in Deshler. They make very good money, have great benefits, so we hope they stay … and keep the town going.”