How Manufacturers Find Workforces for New Sites
When a manufacturer is thinking about pouring millions or billions of dollars into a new facility, its leaders have a million or billion questions to go with it. Atlas Insight, the NAM’s partner for its Incentives Locator, helps manufacturers answer the biggest question—where?—with a combination of on-the-ground research, data gathering, relationship-building and more.
We talked to Atlas’ managing partners, Brian Corde and Kathy Mussio, who offered us a peek into this crucial process. Here’s what they had to say.
The “number-one factor”: While manufacturers typically prioritize access to raw materials and customers when choosing new sites, over the past 10 years the “number-one factor” for manufacturers has been talent, said Corde. How do you evaluate a workforce for jobs that don’t yet exist?
- First, Atlas looks for locations that already have companies in the same sector as its client, which is an indication of a local pool of talent.
- It then combs through a huge amount of data, including metrics like employment concentration (how likely are you to find a specific job function in that area?), local demographics (is the population expanding or contracting?) and much more.
Decoding the data: Let’s say an area had 500 people working in nonwoven textiles in 2018, Corde posited, but only 250 today; does that mean a new company in that sector won’t find the talent it needs?
- Not necessarily, he told us. While it could mean that workers with those skills have moved out of town, it may also indicate that an existing factory closed, forcing employees to find other lines of work. If a new textile facility opens, they might decide to return to their old industry.
- How does Atlas figure out if those workers might come back? One strategy is to have researchers scour the resumes posted on internet job boards—the more local job seekers who list textile experience, the more likely a new facility will find a skilled and eager workforce.
Drawing on local relationships: Just as important to the data crunching are Atlas’ ties to the local economies, Corde and Mussio said. Atlas has relationships with economic developers all over the country, giving it unparalleled insight into what’s happening in those communities.
- Ten years ago, Mussio said, these organizations might not have needed to find workers for new companies, but today they are in the workforce business—and some are even offering incentives to attract more residents to their communities.
Workforce training: Manufacturers also take a keen interest in local training programs when choosing sites and have many options for partnering with them, Corde said.
- In some cases, a company pays for colleges and tech schools to train their workers, in a simple cash deal. But other states, like Virginia, South Carolina and Georgia, will fund the training on a “preemployment basis” and allow prospective employers to observe the class before recruiting any of its students. That way, employers can observe soft skills before they even begin the hiring process.
Searching for sustainability: While their workforces might be top of mind, companies also prioritize sustainability when selecting their new sites. Some may look for natural gas, some nuclear, some solar—the configuration will be different for every manufacturer and every location, Corde and Mussio said.
- One large company was looking for a new location where it could build an enormous field of solar panels to support its operations. Atlas informed the company that some local governments might be reluctant to give them so much land, which could otherwise host another business.
- These types of considerations may not occur to a company, which is why Atlas stands ready to explain local concerns to manufacturers, as well as vice versa.
- In the end, the manufacturer did indeed get its solar field.
Take the plunge: If you are looking for expert guidance in your next site search, check out the NAM Incentives Locator. NAM members will receive a complimentary initial assessment call with an expert and a preferred rate on any services contracted—not to mention the benefit of the exhaustive and proprietary database that Atlas has created to assist with manufacturing projects.
Stay tuned . . . for part two, in which we discuss how Atlas helps companies get significant funding from local, state and federal incentives for their projects.
Ports Negotiations Break Down
Negotiations between the U.S. Maritime Alliance and the International Longshoremen’s Association have stalled again, “raising the possibility of renewed strikes at U.S. East and Gulf Coast ports in January” (gCaptain).
What’s going on: Talks between the dockworkers and their employers broke down this week over proposed language regarding the use of automation, according to the ILA.
- “This impasse follows a tentative agreement reached in early October, which ended a three-day strike across Atlantic and Gulf Coast ports” and extended the workers’ labor contract until Jan. 15, 2025.
- If the parties are unable to reach a long-term agreement by that date, the union could strike again.
Why it’s problematic: Even a brief work stoppage could have major economic consequences, according to widely cited NAM estimates.
- A strike at East and Gulf Coast ports would jeopardize $2.1 billion in trade every day and could reduce gross domestic product by up to $5 billion a day.
What must be done: “These ports are critical components of the manufacturing supply chain and move products on which Americans depend,” said NAM Director of Transportation, Infrastructure and Labor Policy Max Hyman. “Both sides should return to negotiations as soon as possible and reach a lasting resolution that prevents needless economic destruction.”
NLRB Overturns 40-Year Precedent
When employers tell workers that unionizing would harm employee–manager relationships, they might be violating federal law, the National Labor Relations Board ruled last week (Law360, subscription).
What’s going on: “Telling workers that a union would come between them and their bosses may violate the National Labor Relations Act because it’s an effective threat to end workers’ direct relationships with management, a majority comprising the board’s three Democrats said [last] Friday in a case involving Starbucks.”
- The groundbreaking decision overturns nearly four decades of precedent. In its 1985 Tri-Cast ruling, the NLRB allowed employers to tell employees that unionization would strain worker–manager relationships “so long as they didn’t explicitly or implicitly threaten employees” when doing so (JD Supra).
- The NLRB said such cases will now be decided on a case-by-case basis.
Looking ahead: The ruling will only apply to future cases, however, “allowing past communications under the Tri-Cast standard to stand without retroactive penalties” (JD Supra).
Manufacturers Congratulate Sen. John Thune on Becoming Senate Majority Leader
Has Long Been a Champion of the Manufacturing Industry
Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons issued the following statement on the election of Sen. John Thune (R-SD) to Senate majority leader:
“Leader Thune has been the true definition of a manufacturing champion. He has consistently supported legislation important to the industry, especially small and medium-sized manufacturers, and he has led on critical issues for U.S. competitiveness, such as taxes, energy and workforce issues. I have known John for 20 years, going back to my days as executive director of the National Republican Senatorial Committee the year he was elected. There is no question in my mind that he is the right senator to take the reins as majority leader.
“Leader Thune has been a constant force for manufacturers in the Senate Republican leadership and has repeatedly engaged the NAM Board of Directors in shaping future policies.
“Now, our work continues together to secure ‘rocket fuel’ for manufacturing and to extend and restore the provisions of the 2017 Trump tax cuts, so that manufacturers can invest more in their operations, expand their workforces and drive innovation. Together, we can make America greater.”
-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 $2.91 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
Inflation Ticks Up
Inflation rose again last month (The Wall Street Journal, subscription).
What’s going on: The consumer price index increased 0.2% in October, the fourth consecutive increase (Bureau of Labor Statistics).
- “[P]rices were up 2.6% from a year earlier, in line with economists’ expectations. Core inflation, at 3.3%, also matched forecasts,” according to the Journal.
The details: Shelter prices rose 0.4% in October, accounting for more than half the increases overall (BLS).
- Food prices inched up 0.2%, while energy prices were unchanged after having declined 1.9% in September.
What it means: The news strengthened investor confidence that the Federal Reserve will cut rates in December for the third time this year in an effort to hit its 2% inflation goal, the Journal reports.
- “The October CPI report will likely support the notion that the last mile of inflation’s journey back to target will be the hardest,” Wells Fargo economists wrote in a memo to clients (USA Today).
Manufacturers Launch Seven-Figure Ad Campaign Urging PBM Reforms in Lame Duck
Washington, D.C. – The National Association of Manufacturers has launched a seven-figure video and digital advertising campaign urging Congress to pass legislation this year to bring much-needed reform to pharmacy benefit managers, whose practices increase health care costs for manufacturers and manufacturing workers. The NAM’s Q3 2024 Manufacturers’ Outlook Survey found that 78% of small manufacturers with fewer than 50 employees cite rising health care costs as a primary business challenge—the top concern among small business respondents in the survey.
“Manufacturers are clamoring for Congress to rein in PBMs this year. The momentum is with lawmakers to enact comprehensive reform in both the government and commercial health insurance market that increases transparency and reduces prices for everyone,” said NAM President and CEO Jay Timmons. “Manufacturing workers and retirees are spending more at the pharmacy counter, in large part because insurer-owned PBMs drive up their own profits by inflating prescription drug prices and pocketing discounts that biopharmaceutical manufacturers intended to be passed on to patients.”
Timmons continued, “Congress has an extraordinary opportunity in the lame duck to pass transformative legislation that increases transparency into PBMs’ business practices, delinks PBM compensation from drug prices and puts patients first.”
To view the NAM’s latest digital ad, click 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 $2.91 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
Factory Shipments Decline as Inventories Hold Steady
New orders for manufactured goods fell another 0.5% in September, after falling 0.8% in August. When excluding transportation equipment, new orders edged up 0.1%. Orders for durable goods dropped 0.7% after falling 0.9% in August. Year to date, durable goods orders are down 1.5%. Nondurable goods fell 0.2% in September after declining 0.7% in August. Nonetheless, nondurable goods orders are up 1.4% year to date.
New orders for turbines, generators, and other power transmission equipment experienced the greatest increase of any industry at 4.9%, while the defense aircraft and parts had the largest over the month decrease of 23.7%. After falling 17.9% in August, mining, oil field and gas field machinery orders are back up 3.3% in September. The largest over the year changes were in nondefense aircraft and parts, which are down 33.4%, and computers, which are up 23.2%.
Factory shipments decreased 0.4% in September, after falling 0.7% in August. Shipments excluding transportation were unchanged, following a 0.4% decline the previous month. Shipments for durable goods were down 0.5% in September but are up 1.6% year to date. Meanwhile, nondurable goods shipments fell 0.2% in September but are up 1.4% year to date.
Unfilled orders rose 0.2% in September, following a 0.2% increase in August. The unfilled orders-to-shipments ratio for durable goods increased to 6.94 from 6.86 in August. Inventories saw a slight decrease of 0.2%, while the inventories-to-shipments ratio remained unchanged at 1.46.
Global Manufacturing Contracts in October, But at a Slower Pace
In October, the global manufacturing sector contracted for the fourth consecutive month, but at a slower pace than in September. Three of the five PMI components were at levels consistent with contraction. While employment declined at a faster rate than in September, new business orders and new export orders slowed their decline from the previous month. Output stabilized, rising slightly into growth territory, but stressed supply chains lengthened supplier delivery times.
A deceleration of the rate of contraction is reflective of improvement of operating conditions in China and easing of conditions in the U.S. and the Eurozone. Growth was fastest in India, Spain, Brazil and the Philippines compared to other surveyed countries.
Data broken down by sector pointed to ongoing struggles in the global industry. The intermediate and investment goods industries contracted for the fourth consecutive month, but the rate of decline eased. On the other hand, consumer goods growth continued at an increased rate.
In October, manufacturing employment is a concern, as job losses were noted for the third consecutive month and at the steepest rate since August 2020. Job cuts were reported in China, the U.S. and the Eurozone, while Canada, the UK and India registered employment growth. Nevertheless, confidence remained close to September’s reading, which was at a 22-month low. Inflationary pressures also held steady, with input prices remaining unchanged and output charges rising only slightly.
WIN’s First Event Is a Roaring Success
The inaugural “Empowering Women’s Leadership in Manufacturing” event was a smash hit.
What’s going on: The newly minted Women in National Association of Manufacturers—a group composed of women executives at NAM member companies—gathered for the first time last month at Johnson & Johnson’s World Headquarters in New Brunswick, New Jersey.
- Headlining the event were Johnson & Johnson Executive Vice President and Chief Technical Operations and Risk Officer (and NAM Board Chair) Kathy Wengel and Cornerstone Building Brands President and Chief Executive Officer (and NAM Executive Committee member) Rose Lee.
- NAM Executive Vice President of External Affairs Erin Streeter also spoke at the event, conducting a conversation with New Jersey State Senator Linda Greenstein, who is a co-chair of her state’s manufacturing caucus.
The background: WIN arose out of discussions among several women leaders on the NAM’s executive committee, including Wengel and Lee, who hosted introductory sessions at the NAM’s spring and fall board meetings. The goals of the new group include:
- Amplifying the voice of women leaders in manufacturing advocacy;
- Supporting professional growth for women in manufacturing; and
- Promoting the growth of women executives in NAM membership.
The word from Wengel: At the October event, the Johnson & Johnson leader paid homage to the women of J&J who led critical operations for the organization over 100 years ago.
- “During World War I, Edith H. led a team of 140 women—running J&J’s sterile suture manufacturing operation round-the-clock to meet demand for our products on the front lines,” Wengel said.
- “Yes, we’ve come a long, long way [since WWI],” she continued, “but all of us know there’s still so much more we want and need to accomplish.”
- “With WIN, we want to transform the industry as a whole—creating momentum for meaningful reforms to policy and corporate culture that support professional growth for all women in manufacturing.”
A conversation with Lee: After her speech kicking off the event and introducing WIN, Wengel conducted a dialogue with Cornerstone President and CEO Lee, who also stressed the importance of spotlighting women’s experiences in manufacturing.
- “For most of us it’s been a long and sometimes tough journey,” Lee said. “But once we get here, it can be easy for some of the hard realities of the journey to fade as we deal with day-to-day challenges of running our company, division, business or team.”
- “For WIN to be effective, we need to stay in touch with the front lines where we make our great products, and with what the customers want and need. We also need to support and lift up one another to be the most effective women in manufacturing today,” she added.
Why it’s important: “Our companies are better, our industry is better, the world is better when women are an equal part of the leadership team and decision-making process,” Wengel said. “Everybody wins when we have more women in manufacturing leadership positions.”
Get involved: If you are a female leader in manufacturing, WIN is eager to hear your perspective. Please take the survey here to tell us your views on supporting women throughout the industry.
NAM Sees Strength for Manufacturing as Washington Transitions
With a new administration and Congress on the horizon, the NAM is signaling confidence in its ability to secure wins for manufacturing in the United States, highlighting both recent achievements and policy priorities moving forward.
“The NAM has always focused on what’s best for manufacturing in America, and our track record speaks to that,” said NAM Executive Vice President Erin Streeter. “Our approach is consistent because we know what it takes to get results.”
What we’ve delivered: With post-partisan engagement, the NAM has achieved historic policy wins across both recent administrations, including:
- Tax reform: The NAM’s advocacy helped shape the 2017 tax cuts, driving billions in savings that manufacturers have reinvested in jobs, innovation and facility upgrades.
- Regulatory certainty: The NAM has played a pivotal role in streamlining regulations, reducing compliance costs under the Trump administration and working to slow regulatory expansion during the Biden years.
- United States-Mexico-Canada Agreement: The NAM was a key advocate for USMCA, safeguarding U.S. jobs by ensuring fairer competition and greater access to key markets.
- Energy advances: NAM-backed policies have supported growth in domestic energy production, creating a more stable energy market.
- Infrastructure and CHIPS Act: The NAM was instrumental in securing the historic Bipartisan Infrastructure Law and the CHIPS and Science Act, both critical for modernizing the economy, bolstering national security and ensuring a reliable semiconductor supply.
“These wins demonstrate what we bring to the table,” Streeter said. “By staying focused on manufacturing’s priorities, we can partner effectively with the new administration and Congress to create and protect jobs and strengthen communities.”
Looking ahead: The NAM’s focus on core issues remains critical for keeping the sector competitive and resilient, Streeter continued. These issues include:
- Securing tax reform: The NAM’s “Manufacturing Wins” campaign aims to lock in key 2017 tax provisions that manufacturers rely on for stability and growth. “Tax reform has been a game-changer,” said Streeter. “Protecting that progress means more jobs and manufacturing-led growth across the country.”
- Regulatory certainty: The NAM is advocating for balanced regulations that support competitiveness. “Manufacturers thrive with clear, fair rules,” Streeter noted. “We’re making sure Washington understands the importance of regulatory stability—and the danger of excessive regulation.”
- Energy security: The NAM is working to secure reliable, affordable energy while fostering innovation in sustainability. “Energy security and grid reliability are top of mind for every manufacturer,” Streeter added. “We’re ensuring manufacturers can continue to innovate, grow and drive America forward.”
Bottom line: The NAM remains focused on advocating for policies that strengthen U.S. manufacturing. “Our success is built on trust and influence,” Streeter said. “Our members know the NAM is a constant force, with the relationships and expertise to deliver, regardless of political changes.”
In related news, President-elect Trump has named campaign manager Susie Wiles as White House chief of staff (Reuters, subscription), a choice NAM President and CEO Jay Timmons called “a powerful move to bring bold, results-driven leadership to the White House from day one.”