News & Insights

NAM: Sen. Daines, H.R. 1 permanently extended the Section 199A pass-through deduction, preventing the substantial tax increase that would have hit small manufacturers at the start of 2026. You have been among the Senate’s most persistent champions of pass-through businesses since the Tax Cuts and Jobs Act was enacted. What does achieving permanency mean for small manufacturers in Montana and across the country? 

Sen. Daines: Our small businesses and manufacturers are the backbone of our country’s economy, driving growth and investment across states like Montana. Since I entered Congress, I prioritized the need to protect this industry and warned of what a less competitive America looks like. 

I championed the small business deduction in 2017, and last year, I led the charge on making sure this and other pro-growth provisions became permanent. Clarity and certainty are two of the most important things these job creators need to be as successful as possible, and making 199A permanent delivered both.

NAM: You introduced the Main Street Tax Certainty Act specifically to make the 199A deduction permanent. H.R. 1 accomplished that goal. How did your legislation and sustained advocacy help build the political and policy case for permanency in the reconciliation package, and were there particular provisions in the final bill—beyond the basic permanency—that reflect your priorities for pass-through manufacturers? 

Sen. Daines: As important as it was to make sure this provision was included in 2017, it was imperative we avoided the steep tax increase small businesses and manufacturers faced if we let this expire. Since the day the TCJA was signed into law, we pushed to make this provision permanent. Businesses from every state came in and helped us tell the story of what this means for them. When the time came to draft the Working Families Tax Cuts, the Main Street Tax Certainty Act was one of the most co-sponsored bills in the Senate. We had nearly all Republican senators on that bill advocating for its inclusion in final passage, and we achieved exactly that.

NAM: The Senate Finance Committee conducted detailed working group discussions ahead of H.R. 1. What arguments proved most decisive in the Senate debate over 199A permanency, and are there remaining gaps or unresolved issues in the tax treatment of pass-through manufacturers that you believe should be addressed in future legislation? 

Sen. Daines: Good policies are easy to defend, and the economic data behind 199A spoke for itself. Pass-through businesses employ more than half of private–sector workers, [and] more than 96% of businesses in our country are organized as pass-throughs. The deduction itself is directly responsible for 2.6 million jobs and $325 billion of the United States’ GDP. Many of these businesses are manufacturers who are the backbone of our competitiveness. A successful manufacturing industry supports the American economy and helps protect us against foreign adversaries.

NAM: Manufacturers appreciate your passion and persistence in securing the 199A deduction for the long term. What can our members do to help ensure the benefits of this provision reach every small manufacturer across the country? 

Sen. Daines: We can see economic data and how policies will broadly operate, but hearing firsthand from businesses [that] have utilized those policies to reinvest and grow makes all the difference. We wouldn’t have been able to get nearly our entire conference onto the Main Street Tax Certainty Act if we didn’t have stories from each state to point to.

Washington, D.C. – Following the Environmental Protection Agency’s decision to issue new guidance clarifying the agency’s review process of Clean Air Act title V permits, National Association of Manufacturers President and CEO Jay Timmons issued the following statement:

“Manufacturers consistently cite Clean Air Act permits as among the most burdensome and unpredictable approval processes they face. With this action, the EPA is taking an important step toward modernizing and streamlining a permitting system that too often delays investment and growth, while maintaining environmental protections.

“For too many projects, our permitting system has delayed routine investments with duplicative reviews and unnecessary uncertainty. This new guidance will help ensure EPA and state permit reviews move forward efficiently while preserving opportunities for public input and maintaining appropriate emissions controls. That means manufacturers can move more quickly to break ground on new projects, invest in new technologies and strengthen the energy and industrial infrastructure American communities rely on.

“The EPA continues to act with urgency to modernize a broken permitting process costing manufacturers at least $7.9 billion every year.”

-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 $2.96 trillion to the U.S. economy annually and accounts for nearly 52% 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. 

733 10th St. NW, Suite 700 • Washington, DC 20001 • (202) 637-3000

 Manufacturers’ Stories Highlight Advantages of Landmark Trade Agreement, Illustrate the Need for Improvements Ahead of North American Manufacturing Conference

Washington, D.C. – As manufacturers, policymakers, congressional leaders and business leaders across North America convene in Washington, D.C., for the North American Manufacturing Conference today, a new report released by the National Association of Manufacturers underscores the United States–Mexico–Canada Agreement as a foundation for manufacturing dominance in the U.S.—the most pro-U.S. manufacturing trade agreement in history, with exports to Mexico and Canada already supporting 2 million American jobs. With targeted improvements to this agreement, the USMCA can deliver even more jobs, growth and innovation across the sector.

The report, “Built to Spec: USMCA Supports Millions of American Jobs and Drives U.S. Manufacturing Dominance,” illustrates manufacturers’ stories on how much the USMCA has benefited manufacturing in the U.S. The report combines these stories with data on the depth of North American manufacturing integration. The U.S., Mexico and Canada account for 30% of global GDP.

Since the USMCA was ratified, 15 out of 18 manufacturing sectors have increased exports to Canada and Mexico. Companies across the manufacturing sector have boosted investment and expanded hiring. Rheem Manufacturing said capital investments nearly quadrupled to $100 million following negotiation of the agreement, while Thermo Fisher Scientific recently announced a $2 billion U.S. investment that includes $1.5 billion to expand U.S. manufacturing operations. Manufacturers are also creating jobs and growing their workforce, with Amphenol Corporation noting it has “more jobs across our factories in the U.S. today than we had five years ago,” and Humtown adding “machines and personnel” to support increased exports to Canada and Mexico.

The landmark agreement also strengthened customs procedures, harmonized regulations, increased protections for intellectual property rights and delivered other pro-manufacturing improvements—making North America the most attractive region to manufacture and driving real gains for America’s manufacturers.

“The USMCA is a proven engine for America’s manufacturing strength, ensuring that more products bear the imprint ‘Made in America,’” said NAM President and CEO Jay Timmons.  “Under President Trump’s signature trade agreement, manufacturers have moved production and investments away from Asia to the United States and the rest of the North American market. This report shows that the USMCA has been an anchor for manufacturing investment and expansion in the U.S.—supporting job creation and export growth to the region.

“In his first term, President Trump asked manufacturers to support the USMCA, and we have been proud to do so every step of the way. We partnered with the president and Congress to drive the USMCA into law and supported the negotiations to deliver a winning deal for the American people. We kept our promises to use the USMCA’s provisions to fortify the American supply chain, power more American jobs and drive more American growth. Now is our chance to double down on behalf of the American people. Let’s preserve the USMCA, strengthen it and lead with it—creating more jobs and expanding production for the United States.”

The report features testimonials from manufacturing companies across different manufacturing sectors, including CNH, Unicorr, Advanced Superabrasives Inc., Brunswick Corporation, Dragonfly Energy, American Textile Company, Amphenol Corporation, Hydro, Thermo Fisher Scientific, Dauch Corporation and more. Regardless of type or size, these companies cited clear examples of the USMCA’s advantages to manufacturers:

• Flexibility and speed through proximity
• Access to critical manufacturing inputs
• A unique co-production model that leverages regional assets
• Access to greater sales across North America and the world
• A larger talent pool to address workforce shortfalls in the U.S.
• Resiliency against global tensions

“The results are clear: the USMCA strengthens U.S. manufacturing in the face of threats from fierce global competitors. We can maximize these advantages—putting America’s manufacturers first—by preserving the USMCA while implementing impactful reforms. Because a stronger USMCA means a stronger America.”

Read the full report here.

Read the one-pager here.

-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 $2.96 trillion to the U.S. economy annually and accounts for nearly 52% 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.

733 10th St. NW, Suite 700 • Washington, DC 20001 • (202) 637-3000

NAM: Rep. Miller, H.R. 1 has been signed into law, preserving the 21% corporate tax rate established by the 2017 Tax Cuts and Jobs Act. As the leader of the House Ways and Means Supply Chain Tax Team leading up to the bill’s passage, what does preserving this rate on a permanent basis mean for manufacturers’ ability to invest in American supply chains and compete globally?

Rep. Miller: Tax certainty is essential to maintaining the United States’ position as a global leader in manufacturing. The Working Families Tax Cuts will deliver meaningful relief to American manufacturers, driving the development of new facilities, the creation of jobs and increased investment across the country. The Ways and Means Supply Chain Tax Team focused on advancing pro-growth policies to fuel long-term economic prosperity. Key provisions in the legislation—including permanent research and development expensing, full immediate expensing, a strengthened interest deduction and a 100% factory construction deduction—provide businesses with the certainty and incentives needed to plan, invest and compete globally.

NAM: With the 21% corporate rate now secured through H.R. 1, U.S. manufacturers have a more competitive tax foundation than they did even a year ago. But the global tax landscape continues to shift, with major trading partners and competitors making their own adjustments to attract investment and manufacturing activity. From your vantage point leading the Supply Chain Tax Team, how has that preservation of the 21% corporate rate bolstered the United States’ position in promoting and attracting investment?

Rep. Miller: The preservation of the 21% corporate rate is critical in promoting American manufacturing because companies can invest in expanding infrastructure, purchase new equipment and increase workforce without tax liability uncertainty. The Working Families Tax Cuts compounded with bonus depreciation and immediate research expensing have proved to be effective for the industry, and we will continue to advocate for pro-growth policy, which leads to new markets and more opportunities.

NAM: Your Supply Chain Tax Team has traveled the country meeting with manufacturers since the TCJA was enacted. Now that H.R. 1 is law, what are businesses in your district or on your tax team’s radar telling you about specific investments or hiring decisions they are making or accelerating because the 21% corporate rate is no longer at risk?

Rep. Miller: The real-world impact of the Working Families Tax Cuts has been clear and meaningful, reinforcing the need for stable, pro-growth tax policy to help American manufacturers succeed. In my home district, we’ve seen these policies translate into new factories, new jobs and expanded opportunities. Companies like Conn-Weld Industries and Ferroglobe have used this tax relief to invest in their operations, grow their businesses and strengthen the local economy.

NAM: Thank you for your leadership in protecting manufacturers through H.R. 1. What should NAM members be doing now to help communicate the benefits of the 21% corporate rate and to support continued pro-manufacturing tax policy?

Rep. Miller: NAM members should share their stories and voice their support for the Working Families Tax Cuts and communicate the real-world impact this legislation has on the country, their business and the employees and their families who benefit. Manufacturers are at the core of our economy and need a predictable and pro-growth tax code.

In April, growth in global manufacturing activity strengthened from March, increasing from 51.3 to 52.6. Output and new orders both grew as the rate of manufacturing production growth hit a nearly five-year high. Meanwhile, lead times continued to slow, lengthening to the greatest extent since August 2022. Employment declined slightly for the second consecutive month, and inventory levels rose as firms prepared for anticipated supply chain disruptions and further cost increases.

Taiwan, Japan, Ireland and India had the highest PMI readings in April. On the other hand, Mexico, Russia and Turkey were some of the larger nations to register declines in activity. The accelerating growth in manufacturing production occurred across consumer, intermediate and investment goods.

Meanwhile, input and output price pressures continued to surge as output prices rose at the sharpest rate since June 2022. At the same time, business optimism remained depressed amid rising cost pressures and supply chain disruptions. Geopolitical uncertainty continued to weigh on sentiment as input costs rose at one of the fastest rates in the 28-year survey history.

Job openings for manufacturing rose by 19,000 to 462,000 in March. At the same time, the February job openings level of 443,000 was revised upward from 439,000 in the previous report. Nondurable goods job openings in March increased 10,000 to 162,000, while durable goods job openings moved up 9,000 to 300,000. The manufacturing job openings rate inched up to 3.5% from 3.4% in February and 3.0% the previous year. The rate for nondurable goods manufacturing ticked up 0.2 percentage points to 3.3% and 0.1 percentage point to 3.7% for durable goods manufacturing.

In the larger economy, the number of job openings stayed relatively stable at 6.9 million, a decline of just 56,000 from February and 86,000 from the previous year. The job openings rate edged down to 4.1% from 4.2% in both February and March 2025. This data reflects an overall labor market that has eased back to pre-pandemic levels, but remains relatively tight from a historical perspective.

The number of hires in the overall economy jumped 655,000 to 5.6 million in March and 221,000 from the previous year. The hires rate for the overall economy increased 0.4 percentage points in March to 3.5%. Meanwhile, the hires rate for manufacturing climbed to 2.5% from 2.2% in February and 2.4% in March 2025. The hires rate for durable goods ticked up 0.1 percentage point to 2.1%, while the hires rate for nondurable goods jumped 0.5 percentage points to 3.1%.

In the larger economy, total separations, which include quits, layoffs, discharges and other separations, rose 356,000 from February to 5.4 million and 90,000 from the previous year. The total separations rate inched up 0.2 percentage points to 3.4% for the overall economy but edged down 0.1 percentage point for manufacturing to 2.2%, down from 2.5% the year prior. Within that rate, layoffs and discharges decreased by 9,000 in March for manufacturing, while quits rose by 3,000. The quit and layoff rates continued to remain lower for manufacturing than the total nonfarm sector.

New orders for manufactured goods increased 1.5% in March after ticking up 0.3% in February. Meanwhile, new orders for manufactured goods rose 3.7% over the year. When excluding transportation, new orders moved up 1.6% over the month and 3.4% year-over-year in March. Orders for durable goods advanced 0.8%, following a 1.2% decline in February. Year to date, durable goods orders jumped 6.1%. Meanwhile, nondurable goods increased 2.1% after stepping up 1.9% in February. At the same time, nondurable goods orders grew 1.2% over the year.

In March, the largest monthly increase occurred in ships and boats, which surged 30.9% after decreasing 12.8% in February. The largest decline occurred in nondefense aircraft and parts, which plummeted 21.1% after plunging 33.3% the prior month. The largest over-the-year changes occurred in ships and boats (up 38.2%) and nondefense aircraft and parts (down 12.5%).

Factory shipments rose 1.4% in March, after increasing 1.7% in February. Shipments grew 4.3% over the year. Shipments excluding transportation stepped up 1.6% in March, following a 1.7% uptick the previous month. Shipments for durable goods moved up 0.7% in March, following a 1.6% rise in February, and are up 7.4% year to date. Meanwhile, nondurable goods shipments increased 2.1%, after advancing 1.9% the prior month, and are up 1.2% year to date.

Unfilled orders for all manufacturing industries inched up 0.1% in March, after increasing by the same percentage in February. Unfilled orders over the year jumped 9.4%. Inventories rose 0.6% month-over-month and 1.3% year-over-year. The inventories-to-shipments ratio edged down from 1.52 in February to 1.51 in March. The unfilled orders-to-shipments ratio for durable goods moved down to 6.88 in March from 6.92 in February.

Nonfarm payroll employment increased by 115,000 in April, coming in above expectations. Meanwhile, February’s job loss was revised upward by 23,000 to a loss of 156,000 jobs, while March’s job gain was revised upward by 7,000 to a gain of 185,000 jobs. The 12-month average stands at 21,000 job gains per month. Healthcare and social assistance continues to exhibit the most significant job gains, adding 53,900 jobs in April. At the same time, the unemployment rate stayed the same from March at 4.3%, while the labor force participation rate ticked down 0.1 percentage point to 61.8% and is down from 62.6% in April 2025.

Manufacturing employment edged down by 2,000 in April after increasing by 15,000 in March. On the other hand, the collective job gains in February and March of 9,000 were revised upward by 7,000 jobs to an increase of 16,000 jobs. Manufacturing employment is down 73,000 over the year. Durable goods manufacturing employment inched up by 2,000 in April, while nondurable goods employment fell by 4,000. The most significant gain in manufacturing in April occurred in chemical manufacturing, which added 2,400 jobs over the month. Meanwhile, the most significant loss occurred in transportation equipment manufacturing, which shed 3,600 jobs over the month.

The employment-population ratio edged down 0.1 percentage point from March to 59.1% in April and is down 0.9 percentage points from a year ago. Meanwhile, employed persons who are part-time workers for economic reasons rose by 445,000 from March to 4.9 million in April and are up from 4.7 million in April 2025. Native-born employment is up 341,000 from March but down 1,134,000 over the year. Meanwhile, foreign-born employment is down 326,000 over the month and 155,000 over the year. At the same time, the native-born unemployment rate is up 0.2 percentage points over the year to 4.1% in April, while the foreign-born unemployment rate is up 0.1 percentage point to 3.7%.

Average hourly earnings for all private nonfarm payroll employees rose 0.2%, or 6 cents, reaching $37.41. Over the past year, earnings have grown 3.6%. The average workweek for all employees inched up by 0.1 hour to 34.3 hours and ticked up by the same amount to 40.4 hours for manufacturing employees.

Nathan Silvernail is no stranger to launching a bold idea. After seven years at SpaceX helping build the Falcon 9 and Crew Dragon, he took that first-principles mindset and applied it to an entirely different challenge: reinventing how to make one of the world’s most fundamental materials.

As co-founder and CEO of Plantd, Nathan is building a new kind of “wood”—one that doesn’t come from trees but instead from fast-growing, sustainable biomass. This new material is designed to be carbon negative and a durable alternative to traditional wood products used in construction.

Outside of work, he’s an avid pilot, even flying aerobatics—an extension of his longtime passion for aerospace and engineering.

In this latest installment of the NAM’s “Forge Your Path” series, Nathan shares lessons from scaling teams at SpaceX, his approach to leadership and why rethinking manufacturing from the ground up can unlock entirely new possibilities.

Q: What is one lesson or insight you’ve gained in leadership that you haven’t widely shared before but that has been a key part of your or your company’s success?

Nathan: “I’d say it’s really about the energy you bring as a leader. Early on—whether you’re an engineering lead or a supervisor—you don’t always realize how much your team depends on your energy and direction.

I learned that quickly at SpaceX. I went from being an individual contributor to managing a team of about 20 people. Each person needs time—one-on-ones, reviewing work, team meetings—and you have to figure out how to manage that effectively.

When you’re already stretched thin, like when you’re running a company, it becomes even more important. I don’t think I’ve mastered it, but being intentional about where I spend my time, who needs more attention and how I communicate that has been critical.”

Q: Can you share a quote or mantra that defines your approach to leadership?

Nathan: “I tend to say, ‘No noise, all signal.’ That’s really my ethos—in leadership, engineering, business and even my personal life.

Time is limited, and when you have a lot to accomplish, you need to make sure the people in the room are adding value. A lot of conversations can get bogged down with unnecessary detail or noise. I try to push toward clarity—getting to the point and focusing on what actually matters.”

Q: What accomplishments at your organization are you the proudest of and why?

Nathan: “We’ve effectively redefined engineered lumber manufacturing. Instead of trying to optimize what already exists, we broke the system down to first principles—what are the right decisions and why?

Our focus has always been on carbon sequestration, efficiency and sustainability—not just financial outcomes. From there, we rebuilt the process.

Traditional systems can involve massive, centralized facilities with huge capital requirements. We’ve broken that down into smaller, more flexible systems that can scale over time with much lower upfront investment. That allows us to generate revenue faster and expand more efficiently.

That mindset—simplify, reduce parts and vertically integrate—comes directly from my time at SpaceX and the emphasis on first-principles thinking.”

Q: Where do you see your company in the next 5–10 years, and what are you hoping to achieve?

Nathan: “Long term, the goal is to transform the entire lumber industry. We’ve developed a system that can produce multiple types of engineered lumber using different biomass sources, ideally close to where materials are sourced or used. That creates efficiencies across the board.

In the next five years, I want us to reach the production capacity of a mid-sized mill—around 15 million oriented strand board panels per year—with multiple machines deployed across the country. From there, we can expand to other products, other builders and potentially other markets.

Ultimately, we want to remove the need for trees in a large portion of homebuilding. About 43% of a single-family home is lumber, and there’s a real opportunity to rethink that—from cost to sustainability to supply chain.”

Q: Is there a book that you have read or a podcast that you have listened to that you would recommend to your peers and why?

Nathan: “I haven’t been reading as much lately, but I do watch the ‘Diary of a CEO’ podcast quite a bit, which features a wide range of leaders and experts and really digs into how they think—uncovering lessons and insights that can help people be more effective and successful. I find it valuable because it covers a wide range of perspectives.

More broadly, I tend to study leaders and companies that resonate with me. I’ve looked at how Nvidia operates and drawn some parallels. But honestly, I’ve probably learned the most from Elon Musk—both in how to think about problems and, in some cases, how not to.”

Building permits fell 10.8% in March and 7.4% over the year. Permits for single-family homes in March decreased 3.8% and 7.9% over the year. At the same time, permits for buildings with five or more units plummeted 23.5% from February and 5.3% over the year.

In March, housing starts jumped 10.8% from February and the same percentage over the year. Starts for single-family homes climbed 9.7% from February and 8.9% over the year. Meanwhile, starts for buildings with five or more units surged 9.6% over the month and 13.5% over the year.

Housing completions ticked up 0.1% over the month but fell 12.8% over the year. Single-family home completions declined 4.8% from February and 14.5% from March 2025. At the same time, completions for buildings with five or more units increased 10.2% over the month but decreased 9.1% from one year ago.