Why Constellium Recycles Cans—and You Should, Too
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.”
SEC Guidance Rescission a Win for Manufacturers
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.
Manufacturers: AI Regulations Should Support Innovation and U.S. Leadership
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.”
President Trump Reining in Regulatory Onslaught
SEC Rescinds Biden-Era Staff Legal Bulletin 14L; Action Depoliticizes Proxy Process
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.
America’s Manufacturing Powerhouse Names Leadership for 2025
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.
Manufacturers Need a Jolt of Certainty
As New Tariffs Announced, NAM Calls on Congress to Act Now on 2017 Tax Reform Renewal and Permitting Reform
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
SMM Chair: Extend Pro-Growth Tax Policy, Prioritize Permitting and Regulatory Reform
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.”
Timmons, Chairman Smith: Preserve Tax Reform Now
For a stronger, more competitive America, Congress must make permanent the pro-growth tax provisions from President Trump’s 2017 Tax Cuts and Jobs Act, NAM President and CEO Jay Timmons and House Ways and Means Committee Chairman Jason Smith (R-MO) wrote in a recent op-ed for the Washington Examiner.
What’s going on: “The choice is clear. Congress must deliver the results the American people voted for on Election Day by extending and expanding Trump’s pro-growth tax policies, which have worked so well.”
- The reforms allowed manufacturers “to hire, expand and invest in their communities” at historic rates, with a particularly positive effect on small and medium-sized businesses.
- Georgia-based Winton Machine Company, which produces machinery used in tubular parts and coaxial cable fabrication, would not have been able to expand its workforce, raise employee pay or purchase critical technology had it not been for the TCJA, as Winton CEO and Co-Owner and NAM board member Lisa Winton told Congress in 2023.
- Austin Ramirez, president and CEO of hydraulic and electromechanical control systems maker Husco in Wisconsin and NAM Executive Committee member, told legislators that tax reform allowed his family-owned company “to create jobs, expand research and development, compete globally and invest in its future, including the most significant renovation of his business in 70 years,” Timmons and Chairman Smith wrote.
What’s at stake: “Key provisions of the 2017 Trump tax reforms have already expired, and many more are set to lapse later this year,” Timmons and Chairman Smith continued.
- “Without swift action, manufacturers will miss out on tax incentives for research and development and equipment purchases, while small businesses and family-owned manufacturers will see their tax rate double to as high as 43.4%—all at a time when global competition is intensifying.”
According to a recent NAM study cited in the op-ed, if Congress fails to preserve tax reform by the end of this year:
- Nearly 6 million U.S. jobs—more than 1 million of them in manufacturing—will be lost; and
- America will lose some $1.1 trillion in GDP and $540 billion in wages.
What must be done: Congress must act now to restore the pro-manufacturing tax provisions that have already sunset and make permanent those that are scheduled to expire, Timmons and Chairman Smith concluded.
- “With Trump leading the charge, it is time for Congress to deliver, protect these reforms and set American workers up for success in 2025 and beyond. Together, we can ensure the next chapter in America’s story is one of growth, opportunity and strength.”
Former TSA Communications Lead Joins the NAM
Former Transportation Security Administration Assistant Administrator for Strategic Communications and Public Affairs Alexa Lopez has joined the NAM’s communications team.
What’s going on: Lopez, a native of Dayton, Ohio, is the NAM’s vice president of communications and public affairs, a newly created position.
- “Alexa knows how to navigate complex challenges, craft compelling narratives and drive real impact,” NAM President and CEO Jay Timmons said. “She has built a career on delivering results, and manufacturers will benefit from her ability to elevate our industry’s voice at a time when manufacturers’ influence on the future has never been more important.”
- Lopez holds a Master of Public Affairs and a Master of Arts in Arts Administration from the Indiana University O’Neill School of Public and Environmental Affairs.
Proven track record: At the TSA, Lopez led all media operations, strategic communications, marketing and branding and multimedia efforts and served as adviser to the TSA administrator. She was at the agency for four years.
- Prior to that, Lopez worked in public affairs at the Federal Emergency Management Agency, the American Society of Civil Engineers, Ogilvy Public Relations and the City of Bloomington, Indiana.
NAM Update: President Trump Imposes New Tariffs on Canada, Mexico and China
On Feb. 1, President Donald Trump imposed 25% tariffs on products from Canada with lower 10% on energy products, 25% tariffs on products from Mexico and an additional 10% on products from the People’s Republic of China.
NAM Vice President of International Policy Andrea Durkin and her team break down the actions for manufacturers:
Executive orders impose tariffs on Canada, China and Mexico: On Feb. 1, President Trump, through three separate executive orders, declared a national emergency and invoked the International Emergency Economic Powers Act to apply ad valorem tariffs on products from Canada, Mexico and China, citing the sustained influx of illicit opioids and other drugs.
- Canada Executive Order:“Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border”
- China Executive Order: “Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China”
- Mexico Executive Order: “Imposing Duties to Address the Situation at the Southern Border”
How tariffs will apply:
- For products from Canada:
- A 25% tariff will be applied in addition to any already applicable duties, fees or charges.
- A 10% tariff will be applied to “energy or energy resources” defined as crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, hydropower and critical minerals.
- For products from China:
- A 10% tariff will be applied in addition to any already applicable duties, fees or charges.
- For products from Mexico:
- A 25% tariff will be applied in addition to any already applicable duties, fees or charges.
- No duty drawback:No drawback shall be available with respect to the duties imposed pursuant to these orders.
- De minimis: Duty-free de minimis treatment will be suspended.
Timing of the tariffs:
- Tariffs will apply from Feb. 4, 2025.
- Tariffs will not apply to goods loaded onto a vessel or in transit before 12:01 a.m. Feb. 1 with certification to U.S. Customs.
Duration of tariffs: The tariffs will remain in place until the president determines that the governments of Canada, Mexico and/or China have taken “sufficient action to alleviate the crisis,” including through cooperative enforcement actions.
A retaliation clause: The president may increase or expand in scope the tariffs imposed under these executive orders if the governments of Canada, Mexico and/or China impose retaliatory tariffs.
Reports to Congress: The Secretary of Homeland Security, in coordination with the Secretary of the Treasury and other agencies, will submit recurring and final reports to Congress on the state of the national emergency under these orders.
What’s next: The NAM issued a statement in response, and the NAM trade team is analyzing the impact on manufacturers and will continue to engage policymakers on these sweeping trade actions.