News & Insights

When Siemens sees a feasible way to save resources and improve efficiency, the company takes it. 

Case in point: The global industrial manufacturing and technology business recently opened one of the first all-electric powder coating paint lines for the electrical distribution industry in the U.S., in Grand Prairie, Texas, to cut down on natural gas consumption.

• Siemens wholly replaced the original paint line to an all-electric system, which has reduced natural gas consumption by more than 90%, according to the company.
• “The timing was fortuitous,” said Stacy Mahler, U.S. head of sustainability for Siemens Smart Infrastructure. “We’d done an assessment of [the facility] and saw that our Scope 1 emissions were coming mostly from the paint line, which at 30 years old was due for replacement. The team realized that there was an opportunity to make an investment that would not only modernize the process but also lower the carbon footprint and help to manage the volatility in energy cost.”
• That change—made without interruption to plant operations because the new line was built alongside the old line—is part of Siemens’ larger goal to achieve a net-zero carbon footprint across its operations by 2030. It’s 55% of the way there already.
• Next up: assessing other company facilities globally for the same all-electric upgrade. One outcome of the effort in Grand Prairie is a cross-business team of experts working to replicate success at Siemens’ other facilities, like the newly expanded facility in Pomona, California, while sharing their knowledge with the broader manufacturing community.

Waste not: At its Spartanburg, South Carolina, site, Siemens is extracting and reusing waste oil found in materials on the floor.

• “We’ve partnered with a third-party company that provides the infrastructure within our own facility to take oil from rags and other materials, absorb it and then recycle or downcycle it,” Mahler told the NAM, adding that in the latter, the oil can be made available for other downstream applications.
• The impact is big, recycling about “3,000 pounds of oil-absorbent material that otherwise would have gone to landfill.”

From trash to energy: Siemens has also designated two of its American facilities—the one in Grand Prairie and another in Hingham, Massachusetts—as “landfill-free,” meaning that the sites incinerate all their nonrecyclable waste, producing thermal energy to power operations.

• “We’re taking waste that’s coming out of the facility, and instead of having waste management take it, we partner with a company that extends the useful life of the raw material and prevents it from sitting in a landfill,” Mahler said.
• The two-facility program redirects approximately 1,000 tons of waste each year.

Reusing metals: At its Roebuck, South Carolina, manufacturing center, Siemens uses a wastewater treatment process that recovers metals for reuse.

• The onsite system “extracts valuable metals—including copper, aluminum, tin and iron—from sludge that are a byproduct of painting and fabrication processes,” Mahler said. “These are then recycled instead of sent to the landfill.”
• Siemens recovers about 59,000 pounds of metal annually this way.

Even the windows: Siemens has also slashed energy consumption at its Fort Worth, Texas, facility using a unique type of window.

• Michigan-based glass solutions startup LuxWall recently installed its Enthermal Glass windows throughout the office in the Siemens plant. “The glass operates like a thermos, reducing both emissions and the energy bill,” according to Mahler.
• Installing the windows can cut a building’s emissions by 35% to 40% and reduce cooling costs by 20%, according to LuxWall.
• Siemens has been so impressed with the reductions it’s seen that it has even begun “sharing the product with our suppliers and customers.”

Onward and upward: Chief among Siemens’ sustainability goals for the coming years is “accelerating action across our other U.S. facilities, our supply chain and for the manufacturing sector as a whole,” said Mahler.

• “We’re trying to pave the way, show proof of concept and hopefully remove some of the barriers in the name of sustainability and more efficient operations.”

“Manufacturing in the U.S. has momentum”—and to keep it going, manufacturers will need to push, NAM President and CEO Jay Timmons said Tuesday in the NAM’s annual State of Manufacturing Address.
 
What’s going on: Speaking to an audience of manufacturers and congressional and state officials at Armstrong World Industries in Hilliard, Ohio, Timmons, who was joined by NAM Board Chair and Johnson & Johnson Executive Vice President and Chief Technical Operations & Risk Officer Kathy Wengel, emphasized the “defining moment” for the industry and said that for manufacturing, “what happens next really matters.”

• “Uncertainty is the enemy of investment,” he told the crowd. “Manufacturing is a capital-intensive industry. We make decisions months and years in advance. … That’s why we need certainty. We need a clear, actionable, multistep strategy from our government—one that says, ‘We want you to invest here, hire here and succeed here.’”
• Timmons’ annual speech kicked off the NAM’s 2025 Competing to Win Tour, starting with a whirlwind four-states-in-four-days tour of manufacturing facilities, schools, government offices and more.
• “In Ohio, manufacturers have thrived because our leaders have taken decisive actions to keep our industry competitive,” Ohio Manufacturers’ Association President Ryan Augsburger said at the kickoff event. But now, “manufacturers across Ohio and the nation are facing critical challenges, from tax uncertainty, project delays and workforce shortages to supply chain vulnerabilities and price pressures that threaten our ability to grow. … These issues cannot wait.”

What manufacturing needs: Certainty from the federal government should come in several forms, Timmons said, including the following:

• Preserving tax reform: The 2017 tax reforms were “rocket fuel” for manufacturing in America—but key provisions have expired and others are scheduled to sunset. Congress must bring them back and improve and extend the package. “Every day that Congress delays because of process and politics, manufacturers face rising uncertainty, delayed investments and fewer jobs,” said Timmons.
• Regulatory clarity and consistency: Manufacturers today spend a total of $350 billion just to comply with regulations. “Commonsense regulation is critical to American manufacturers to continue to innovate, to compete against foreign manufacturers and to improve the lives of American citizens,” Austin So, general counsel, head of government relations and chief sustainability officer for Armstrong World Industries, told the crowd.
• Permitting reform: President Trump’s lifting of the liquefied natural gas export permit ban was a start, but to reach our full potential as energy leader, we must require “federal agencies to make faster decisions and reduc[e] baseless litigation,” said Timmons.
• Energy dominance: “America should be the undisputed leader in energy production and innovation. But … we are seeing opportunities for energy dominance fade in the face of a permitting process that takes 80% longer than other major, developed nations,” Timmons said, adding that we must cut red tape, require federal agencies to make faster decisions and reduce meritless litigation.   
• Workforce strategy: By 2033, manufacturing faces a shortfall of 1.9 million manufacturing employees, Timmons said. To fill those positions, the sector needs a “real workforce strategy,” one that includes apprenticeships, training programs and public–private partnerships.
• Commonsense trade policy: If President Trump continues to use tariffs, “we need a commonsense policy … that provides manufacturers with the certainty to invest” and “a clear runway to adjust,” according to Timmons.

State of manufacturing: “Manufacturing in the United States is moving forward,” Timmons said. “Like a press at full speed, like a production line firing on all cylinders, like the workers who show up before dawn and leave long after the job is done—manufacturing in the United States is driving us forward.” And Timmons added that now it’s time “to make America Great for Manufacturing Again.”

On the move: Following the speech, Timmons, Wengel and Augsburger joined state lawmakers, including state Sens. Kristina Roegner and Andrew Brenner, and local business leaders for a visit to the Ohio Statehouse for an event focused on the importance of tax reform for Ohio and its manufacturing sector.

• A recent NAM study found that, if key provisions of tax reform are allowed to expire, Ohio would risk losing 208,000 jobs and $18.9 billion in wages.

What’s at stake: Tax reform was transformational for Humtown Products, the Columbiana, Ohio–based family-owned sand cores and molds manufacturer, President and CEO Mark Lamoncha told the audience at the Ohio Statehouse tax event.

• “We have been at the forefront of 3D-printed manufacturing for years and have invested significantly in the machinery and equipment required, including the purchase of 3D printers—one of which can easily cost over $1 million,” he said.
• “Since the 2017 tax reform, Humtown has invested over $9 million in capital expenditures related to 3D printing and averages around $100,000 annually in R&D costs. Under the 2017 tax reform, we were able to deduct 100% of those costs, generating around $1.6 million in accelerated tax savings.”
• “That amount alone allowed us to purchase another 3D printer, fueling continued growth. That’s what tax certainty allowed us to do. But right now, that certainty is slipping away. As these provisions begin to expire, our tax burden is increasing.”

Creators Wanted: The group also fit in a stop at Columbus State Community College, which serves approximately 41,000 students, to visit with students in the semiconductor and mechanical drive classes.
 
The last word: The NAM recently “stood shoulder-to-shoulder with congressional leaders—delivering a clear, urgent message on tax reform” and is “driving the agenda on regulatory certainty, on energy dominance, on permitting reform, health care and workforce development,” Wengel told the audience. “The NAM is not waiting for Washington to act; we are making sure Washington acts for you, for manufacturers.”

• Added NAM Executive Vice President Erin Streeter: “The NAM is on [these issues], and we’re going to keep fighting, as we do every day with the right leaders, the right strategies and the right vision for the future.”

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on President Donald Trump’s recent executive order establishing the National Energy Dominance Council:

“President Trump is moving quickly to unleash America’s full energy potential by establishing the National Energy Dominance Council, setting America up to lead on energy and secure our energy independence. This action demonstrates President Trump and his administration’s commitment to ensuring manufacturers have the energy they need to drive economic growth.

“On day one, President Trump declared the United States will be a manufacturing nation, lifting the moratorium on liquefied natural gas (LNG) export permits—one of the NAM’s top recommended regulatory actions for the Trump administration to tackle. This was a significant move that will bolster our energy sector, strengthen our position in the global market and ensure manufacturers in America have the energy resources they need to power economic growth here at home. We look forward to working with President Trump and the administration to improve the processes for permitting for all energy sources, which this action also addresses. The federal permitting system is broken—delaying projects that would create jobs, secure supply chains and reinforce America’s competitive edge.

“The National Energy Dominance Council, under the leadership of Interior Secretary Burgum and Energy Secretary Wright, will help power the future of manufacturing in America because when manufacturing wins, America wins.”

-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 $2.93 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.

If you’re finished with that soda, Constellium hopes you’ll throw the can in the nearest recycling bin.

Use and reuse: Used cans are the mainstay of the global aluminum manufacturer and recycling giant, which owns and operates one of the world’s largest used beverage can (UBC) plants, in Muscle Shoals, Alabama. There the company recycles the equivalent of more than 20 billion cans every year.

• “We shred the cans, remove the inks and coatings and then remelt that into aluminum we can use,” said Constellium Vice President of Strategy and Business Planning for Packaging and Automotive Rolled Products Raphael Thevenin. “It’s a very circular way of using the material. Within 60 days, it’s back on the shelf” as new cans.
• Using UBCs to make new cans consumes 95% less energy than using new aluminum and is a key piece of the entire aluminum production supply chain.

Many uses: Aluminum can be recycled almost infinitely, a characteristic that gives the metal a wide variety of applications in manufacturing, as does its light weight and durability.

• In addition to canstock, Constellium’s aluminum products include auto rolled and structural products used for vehicle hoods, doors, battery enclosures and bumpers, as well as aerospace solutions, armored products for the defense industry and much more.

Why cans? UBCs are “so widely available in the U.S., and we have such a strong network of traders that we’re able to recycle them in large volumes,” Thevenin continued, adding that 10 American states give cash deposits on beverage containers. (This means that consumers can redeem their empties for cash, currently an average of 5 cents a pounds for aluminum cans.)

• However, while the U.S. consumer recycling rate for UBCs is generally higher in states with deposits, it’s on the decline nationwide, having fallen to 43% in 2023 from 45% in 2020.
• “We’re seeing a million tons of aluminum landfilled in the U.S. every year,” according to Thevenin.

What they’re doing: The increasing number of UBCs consigned to the trash means “the availability of scrap metal is declining,” Thevenin continued.

• In an effort to reverse the trend, Constellium is assessing the possibility of pushing for greater collection efforts in areas where UBC recycling is low, urging states with deposits to offer more money for exchanges and advocating the construction of more UBC-recycling infrastructure throughout the U.S.

Why it’s important: For the sake of both cost and sustainability, the U.S. must increase its stock of available aluminum scrap, Thevenin said.

• “Because we don’t have the [widespread] infrastructure in place, a lot of scrap is exported outside the U.S.,” he told us. “But if we want to make sure the products we put on the market are sustainable and profitable, we have to use as much recycled material as possible.”
• Europe recycles about 75% of its UBCs and is set to recycle about 90% by the end of the decade, according to Thevenin. “There’s a huge need to reduce the gap between the U.S. and Europe.”
• To that end, Constellium has undertaken a campaign to educate lawmakers on the need to build out U.S. infrastructure. “We need to make sure legislators are aware,” said Thevenin. “They need to understand the importance of keeping more scrap metal at home.”

Recycling cars: In Europe and North America, Constellium is actively investigating new ways to recycle aluminum from old cars efficiently, either through sorting or dismantling.

• “It’s about a 10-to-15-year cycle for car recycling, meaning that the metal comes back in the form of a new car all those years after” the initial recycling, Thevenin said. “Today the most economical way to get scrap from a car is to shred it, so you get a mix of materials and have to sort plastics, glass, metals, then nonferrous metals and steel. We’re working on developing new alloys that are more scrap tolerant and testing them on the market.”
• Constellium is also collaborating with manufacturers on creating a laser/X-ray machine that will be able to sort the different alloys in recycled cars, easing and speeding the recycling process.
• In the longer term, the company hopes to work with automotive makers to standardize the alloys used in vehicles because “when it’s mixed, it’s more difficult to sort.”

The bottom line: Aluminum recycling is a no-brainer because it’s a win for consumers, manufacturers, retailers and the environment, Thevenin went on.

• For example, once a UBC collection plant “is operational, it’s self-sustaining because [the operator] can sell to companies, such as Constellium, and then invest that revenue on more and better infrastructure.”
• When it comes to vehicles, “when car makers develop a new model, they should make sure it’s easy to recycle” because doing so will mean both cost savings and “being able to offer consumers lower-carbon products.”

The Securities and Exchange Commission this week reversed Biden-era guidance that required publicly traded companies to include environmental and social activist shareholder proposals on proxy ballots (InvestmentNews).

What’s going on: In a move that NAM President and CEO Jay Timmons called a “depoliticiz[ation of] the proxy process” and “a crucial plank of President Trump’s pro-manufacturing deregulatory agenda,” the SEC rescinded Staff Legal Bulletin 14L, which had allowed activists to mandate consideration of social policy proposals on corporate proxy ballots—even when the policies in question were unrelated to a company’s business.

Why it’s important: SLB 14L “empowered activists at the expense of manufacturers and Main Street investors—turning the proxy ballot into a debate club, forcing businesses to court controversy and divert resources from growth and value creation,” Timmons continued.

• Replacing SLB 14L with the new SLB 14M “return[s] the SEC’s review of shareholder proposals to a company-specific process based on relevance to a business’s operations and its investors’ returns,” which will “allow manufacturers to focus on what they do best: investing for growth, creating jobs and driving the American economy.”

What we’ve been doing: Since SLB 14L was adopted in 2021, the NAM has been a leading voice calling on the SEC to reverse course.

• Most recently, the NAM, along with more than 100 manufacturing associations, outlined for President Trump more than three dozen regulatory actions the new administration could take across federal agencies to boost the manufacturing economy and end the regulatory onslaught—including rescinding SLB 14L.
• The NAM also has called on President Trump’s nominee to chair the SEC, Paul Atkins, to take steps to depoliticize the proxy process.

The introduction of artificial intelligence has been a boon to manufacturing, and the technology will continue to have a positive impact—as long as regulations are “right-sized,” manufacturers told Congress this week.

What’s going on: “Manufacturers are utilizing AI in myriad ways on the shop floor and throughout their operations,” the NAM told the House Subcommittee on Commerce, Manufacturing and Trade in a statement for the record at Wednesday’s hearing, where data was cited.

• “The diverse use-cases of AI in manufacturing suggest a need for a cautious regulatory approach to this groundbreaking technology: one that supports innovation and U.S. leadership in AI while providing context-specific, risk-based, right-sized rules of the road for manufacturers,” the NAM said.
• Giving testimony at the hearing, Siemens USA President and CEO and NAM Board Member Barbara Humpton discussed the many benefits of using AI in manufacturing and emphasized the need to ensure that AI regulations include “targeted” rather than “overly broad” definitions.

Industrial vs. consumer-focused AI: First, it’s important to distinguish between industrial and consumer-facing AI, Humpton told the subcommittee members.

• “Industrial AI is different from consumer AI,” she said. “Industrial AI uses controlled data from the manufacturing environment to help manufacturers create business value. Think better products, more efficient operations, a more prepared workforce. … AI will enable all companies—from startups to small and medium enterprises to industrial giants—to thrive in this new era of American manufacturing.”
• In written testimony, she added that “the core distinction of industrial AI is that it is trained on highly monitored data from sensors and machines, providing a more reliable foundation for training AI models.”

Simple, singular and targeted: Regulation of AI should be undertaken with a light touch and following a full accounting of on-the-books laws to prevent duplicative and/or contradictory rules, the NAM said.

• “[P]olicymakers should always review existing laws and regulations before enacting new ones, because most uses of AI correspond to tasks and objectives that industry has faced for a long time and that are thus highly likely to have already been addressed by existing laws and regulations,” said the NAM, which also referenced its first-of-its-kind AI report, “Working Smarter: How Manufacturers Are Using Artificial Intelligence,” released last May.
• “Similarly, policymakers must right-size any compliance burden associated with AI regulation,” the NAM continued. “The ubiquitous use of AI throughout modern manufacturing, as well as manufacturing’s dependence on innovation, underscore the need for rules that enable rather than hinder manufacturers’ development and adoption of AI systems.”

Protect without hindering: Congress “must advance industrial AI by prioritizing strong rules for digital trade, especially to include strong protections for source code and algorithms,” Humpton went on in her written testimony. “We encourage policymakers to build upon the success of previous U.S.-led efforts to protect intellectual property.”

• Legislators must also safeguard privacy and protect against baseless legal claims, the NAM said. “[I]t is … crucial that Congress take steps to maintain the privacy of personal data when utilized in AI contexts. … A federal standard should avoid a patchwork of state-level rules by fully preempting state privacy laws; it also should protect manufacturers from frivolous litigation.”

The last word: “The range and importance of uses of AI—transforming every aspect of the core of manufacturers’ operations—make it clear that AI has become integral to manufacturing,” said the NAM. “With the right federal policies, manufacturers in the U.S. will continue to devise new and exciting ways to leverage AI to lead and innovate and stay ahead of their global competitors.”

Washington, D.C. – Following the Securities and Exchange Commission’s rescission of Staff Legal Bulletin 14L, which required publicly traded manufacturers to include activists’ ESG proposals on their proxy ballots even when the issues raised were unrelated to their business, National Association of Manufacturers President and CEO Jay Timmons released the following statement.

“Manufacturers asked for regulatory certainty, and President Trump has delivered. Today’s action by the SEC under Acting Chairman Mark Uyeda’s leadership depoliticizes the proxy process—a crucial plank of President Trump’s pro-manufacturing deregulatory agenda.

“As we relayed to President Trump in December, SLB 14L empowered activists at the expense of manufacturers and Main Street investors—turning the proxy ballot into a debate club, forcing businesses to court controversy and divert resources from growth and value creation. Returning the SEC’s review of shareholder proposals to a company-specific process based on relevance to a business’s operations and its investors’ returns will allow manufacturers to focus on what they do best: investing for growth, creating jobs and driving the American economy.”

Background:

In December, the NAM, along with more than 100 manufacturing associations, sent a letter to President Trump highlighting more than three dozen regulatory actions across a wide range of agencies that would boost the manufacturing economy and put a stop to the regulatory onslaught that is costing manufacturers $350 billion each year, according to NAM research. President Trump began tackling these issues on Day 1, including by lifting the pause on liquefied natural gas exports. Today’s move by the SEC is another important step in the administration’s efforts to address burdensome regulations that are stifling manufacturing investment and growth

-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 $2.93 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. – The National Association of Manufacturers, the strongest voice for American industry, today announced that Johnson & Johnson Executive Vice President and Chief Technical Operations & Risk Officer Kathy Wengel, as well as Rockwell Automation Chairman and CEO Blake Moret, will once again serve as board chair and vice chair, respectively.

“Manufacturers are the backbone of America’s economy, and under Kathy and Blake’s leadership, we are poised to continue delivering more for the people who make America,” said NAM President and CEO Jay Timmons. “As chair, Kathy has already set new records in growing the membership of the NAM—ensuring manufacturers can create more well-paying jobs in the United States, cut through red tape and power our economy. As vice chair, Blake has been a consistent champion for strengthening our workforce, driving innovation and making sure manufacturers have the tools to compete and win.

“This year is a historic opportunity for manufacturing. With leadership in Washington committed to the importance of growing manufacturing in the United States, we are doubling down on the fight to stop devasting tax hikes, roll back the regulatory overreach of the past, unleash American energy dominance and make the U.S. more competitive than ever before,” said Timmons.

“I am honored to serve as NAM Board chair for another term,” said Wengel. “Our members are ready to lead knowing manufacturing’s vital contribution to the economy. The NAM continues to achieve unprecedented results for manufacturers—from tax reform resulting in increased investment, to regulatory certainty, to upskilling to strengthen the capabilities and resilience of the manufacturing workforce. Now, we have the opportunity to create new records for manufacturing jobs, increased wages and new investments in the United States.”

“We look forward to joining forces with the administration and Congress to implement solutions that will lift up everyone in the United States,” said Moret. “We have a clear list of manufacturing priorities across policy, workforce development, technology and supply chain that will make American manufacturing and American manufacturing workers the most successful in the world.”

The NAM also announced Click Bond CEO Karl Hutter will be elevated to chair of the NAM’s Small and Medium Manufacturers Group. Husco President and CEO Austin Ramirez will be vice chair.

“Eighty-five percent of NAM members are small and medium-sized manufacturers, so we are the nation’s largest voice for the pride, prosperity and strength of the small businesses that build America,” said Timmons. “Karl and Austin are leaders of our industry who are steering their companies and American industry into the future. They will continue to help rally SMMs to share their stories with more of America and to come together with the NAM to learn from each other, support one another and make our country stronger.”

“The policies we put in place today will decide whether SMMs can thrive in the United States for generations to come,” said Hutter. “It is a privilege to get the opportunity to work alongside the NAM’s leadership to educate elected leaders on critical issues that matter in supporting our communities, creating great careers and protecting America’s national security.”

“I am honored to serve as vice chair of the NAM’s SMM Group,” said Ramirez. “The stakes are high for manufacturers in America—particularly SMMs. I look forward to collaborating to champion manufacturing in the U.S. as we advocate for SMM policy priorities.”

Founded in 1895, the NAM, guided by its Board of Directors, is the largest industrial trade association in the United States. The NAM is the nation’s most influential manufacturing advocate, and its membership includes some of the world’s most iconic brands and many of the small manufacturers that power the U.S. economy.

-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 $2.93 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. – National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Manufacturers in the United States are facing intense global competition, economic headwinds and unfair trade practices from adversarial nations. With critical tax reforms having lapsed and others still set to expire as well as inaction on comprehensive permitting reform, our industry is struggling to invest, innovate and compete.

“Manufacturing is a capital-intensive industry—and we must plan months and often years in advance to grow and compete. We cannot afford to wait on action, especially with additional cost pressures from the renewal and extension of tariffs. Manufacturers are calling on Congress to act now to renew the 2017 Tax Cuts and Jobs Act—failure to do so will put 6 million jobs at risk and make it even harder for manufacturers to drive growth and strengthen supply chains. We cannot risk giving our competitors an edge while jeopardizing American jobs and economic strength.”

-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 $2.93 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

To lift much of the burden on manufacturers in the U.S., Congress must reinstate pro-growth tax measures, enact commonsense regulatory reforms and undertake comprehensive permitting reform. That was the main message of Click Bond CEO and NAM Small and Medium Manufacturers Group Chair Karl Hutter to legislators yesterday on Capitol Hill.
 
What’s going on: “American businesses now shoulder a staggering $3 trillion annually in regulatory costs—disproportionately impacting manufacturers,” Hutter told the House Committee on Small Business at Wednesday’s hearing.

• “Unfortunately, small companies get hit twice—with unworkable regulations that apply to them [and again with] compliance and reporting requirements that larger firms are forced to pass down. Fortunately, Congress and the Trump administration have the opportunity to reverse course.”   

Rocket fuel for manufacturing: The 2017 Tax Cuts and Jobs Act “was rocket fuel for Click Bond,” said Hutter—whose Carson City, Nevada–based family business makes adhesive-bonded fasteners used by the U.S. military, commercial aviation industry and NASA.

• “The new 21% corporate tax rate allowed us to raise wages for production employees, invest in capital equipment, strengthen our employee tuition support program and accelerate the timeline for constructing a new facility. The new 20% pass-through deduction likewise empowered our suppliers and partners to reinvest in their businesses, readying them to support our growth.”  

Changes for the worse: But growth was halted in 2022 and 2023, when provisions from the TCJA began to expire. Worse still: More pro-growth tax measures are due to expire at the end of this year—unless Congress intervenes.

• “It is now more expensive for Click Bond to conduct R&D, the lifeblood of both our product and process innovation,” according to Hutter. “It’s more expensive for us to purchase capital equipment, the tools that will unleash the productivity of our team. And it’s more expensive for us to finance job-creating investments such as that state-of-the-art, sustainable manufacturing facility.”  

Ill effects: According to a recent study released by the NAM, nearly 6 million American jobs and more than $1 trillion of U.S. GDP will be at risk if Congress fails to act by the end of this year to preserve TCJA’s pro-manufacturing provisions.
 
What should be done: Manufacturers everywhere are struggling under the weight of both these provisions’ expiration and needless, out-of-date government requirements, Hutter went on. To fix these problems, he said, Congress should:

• Unwind “outdated chemicals reporting requirements that force us to look backward in time and deep into our supply chain”;
• Stop unnecessary permitting roadblocks by the Environmental Protection Agency at the state and local levels;
• Roll back expensive energy and labor mandates;
• Undertake “comprehensive permitting reform”; and
• Make permanent the pro-manufacturing tax provisions scheduled to sunset at the end of 2025 and bring back already expired provisions that boosted the sector and the U.S. economy as a whole.

The final say: “Congress has a critical opportunity to right-size the regulatory landscape, put an end to permitting delays and protect manufacturers from devastating tax increases,” Hutter concluded. “I encourage you to seize [it] … because when manufacturing wins, America wins.”