News & Insights

As part of its “Manufacturing Wins” campaign to preserve pro-manufacturing tax provisions, the NAM hosted a roundtable this week with Reps. Carol Miller (R-WV) and David Kustoff (R-TN)—respectively the chair and a member of the Ways and Means Committee Supply Chain Tax Team.

Preparing for 2025: The Supply Chain Tax Team has jurisdiction over the corporate income tax rate. Tax reform reduced the corporate rate to 21%, spurring the creation of thousands of new manufacturing jobs—and the NAM is working with Congress to ensure the U.S. maintains a competitive corporate rate as policymakers debate next year’s “tax Armageddon.” 

Understanding the benefits: Rep. Miller emphasized that the dollars saved due to tax reform’s lower corporate rate have supported job creation, higher wages and the flourishing of local communities.

• As a business owner herself, she said she believes it’s important for members of Congress in charge of tax policy to understand the risks businesses take, the communities they support and the certainty they need to be successful.

Measuring the impact: Rep. Kustoff emphasized the importance of real-world data on the benefits of the lower corporate tax rate—from the number of jobs created to the work businesses have done to provide their employees with bonuses and higher wages.

• According to Rep. Kustoff, real-world metrics are important for educating policymakers about the need for action, as crucial, pro-manufacturing tax provisions are set to expire at the end of 2025.

Recognizing the ripples: The discussion also touched on the wider impact of tax increases on global supply chains and the broader U.S. economy.

• Participants noted that a higher corporate income tax rate’s ripple effects would hurt companies throughout the economy—even when those companies are pass-throughs and not explicitly affected by the corporate income tax rate.
• That’s because these small businesses often sell to and partner with larger corporations that would have less capital available under a higher corporate rate.

Our take: “Prior to 2017 tax reform, the U.S. had the highest corporate tax rate among the more than three dozen countries in the Organisation for Economic Cooperation and Development and the third highest in the entire world,” said NAM Vice President of Economic Policy Charles Crain.

• “That put manufacturers in America at an alarming disadvantage. A competitive tax rate helps business compete in the global economy, leads to job creation, investments and purchases of new equipment and allows manufacturers to give back to their communities.”
• “If Congress were to raise the corporate rate, it would force America to take a step back on the global stage—at a time when other countries around the world are implementing more competitive tax agendas.”

Finding a civilian job after serving in the military can be daunting. For former Army cavalry scout Jose Gallegos, the task was even more complicated because his spouse, Aleksandra Balinska-Gallegos, also needed a new position. Through Heroes MAKE America—a Manufacturing Institute program that builds connections between the military community and the manufacturing industry—both Gallegos and Balinska-Gallegos found rewarding roles in Pennsylvania with food and industrial manufacturer Cargill.

The program: Heroes MAKE America provides integrated certification and career-readiness training in partnership with local community colleges to prepare transitioning service members, veterans, National Guard members, reservists and military spouses for rewarding careers in the manufacturing and supply chain industries.

• “The program not only introduces you to the manufacturing world—it prepares you for everything that is around it,” said Balinska-Gallegos. “How to correctly write your resume, how to match a military background with civilian life, how to translate military vocabulary to civilian vocabulary. And from writing a resume to emailing with potential employers and preparing for interviews—it was a little bit of everything.”

The benefit: The program helped both spouses at the same time—a huge benefit for Gallegos, who was looking for opportunities in the civilian world, and for Balinska-Gallegos, who had arrived with Gallegos from Lithuania and was worried about navigating the U.S. job market.

• “I was a completely new fresh military spouse,” said Balinska-Gallegos. “When Jose told me that there was an opportunity not only for him to go to the manufacturing program, but to also take his spouse—I was over the moon.”

Working nearby: Although they work in different plants—Gallegos as an operations and management associate at a meat production plant, and Balinska-Gallegos as an administrative assistant at a plant producing chocolate—their mentors at Heroes MAKE America helped ensure that the couple would work at the same company and in the same location.

• “He’s at a meat plant, and he loves beef. I’m at a chocolate plant, and I love chocolate,” said Balinska-Gallegos. “It’s perfect.”

Finding success: Although Gallegos’ work in the Army was very different from his role at Cargill, his supervisors have already noticed his leadership skills. While the approximately 60 other associates recruited this year are all college graduates, it’s Gallegos who has been called to take on bigger tasks.

• “After my first month, they started giving me supervisor responsibilities,” said Gallegos. “I’m shadowing managers and superintendents so I can learn from them, so … I can be in different areas of the plant.”

The last word: “I would have been very scared to start working in the U.S. without this kind of background, and I’m not sure what [Jose] would have done after leaving the Army if he didn’t go through the Heroes MAKE America program,” said Balinska-Gallegos. “That course prepared us immensely for this new life.”

Learn more: Find out more about Heroes MAKE America and the Manufacturing Institute, the workforce development and education affiliate of the NAM, here.

Photo: Jose Gallegos and Aleksandra Balinska-Gallegos with MI Director of Heroes Program Execution Rachelle Wolford (left). 

To lower drug prices, Congress should undertake comprehensive reform of pharmacy benefit managers, not embrace price controls, the NAM told the Senate Tuesday.

What’s going on: “Biopharmaceutical manufacturers are a critical part of the manufacturing economy,” NAM Vice President of Domestic Policy Charles Crain said ahead of a Senate Finance Committee hearing on health care costs.

• In 2021, biopharmaceutical firms “accounted for $355 billion in value-added output to the U.S. economy … and directly employed 291,000 workers in the United States, with each of these jobs supporting an additional 4.1 jobs.”
• Crucially, biopharma companies are also responsible for the dozens of groundbreaking, lifesaving medications brought to patients annually.
• But their continued innovation and economic impact are under attack by both Inflation Reduction Act–mandated drug price controls and the largely unchecked actions of PBMs, Crain continued.

Threats to innovation: Instead of benefiting patients, “the IRA pricing mandates announced last month by the Department of Health and Human Services will … limit the capital manufacturers have available to put toward the astronomically high costs of developing a new medicine,” Crain told the committee, adding that the uncertainty introduced by price controls is also likely to dissuade early-stage investment in new treatments.

• Rather than impose further price controls, Congress should address the influence of PBMs, largely unregulated middlemen that “contribute to the skyrocketing cost of health care by applying upward pressure to list prices that dictate what patients pay for medicines at the pharmacy counter, pocketing manufacturer rebates and failing to provide an appropriate level of transparency about their business models.”

PBM reform: To truly lower health care costs, Congress must rein in PBMs, Crain said. The NAM has called on Congress to adopt specific PBM reforms, including:

• Increased transparency into PBMs’ business models;
• Rebate passthrough to ensure that 100% of negotiated savings get passed on to health plan sponsors and employees; and
• Delinking of PBM compensation from medication list prices.

The last word: “Instead of further embracing price controls, it is imperative that Congress act to lower drug prices by reining in PBMs’ problematic business practices and minimizing their ability to further damage the U.S. health care system,” Crain said.

• “All Americans deserve access to high-quality, affordable health care, and PBM reform is an impactful step toward this goal.”

Pharmaceuticals manufacturers are increasingly turning to radioactive drugs in their battle against cancers (CNBC). 

What’s going on: Eli Lily, Bristol Myers Squibb and others “have spent some $10 billion on deals to acquire or work with radiopharmaceuticals makers,” which produce drugs containing radioactive isotopes, predicting that the technology will be effective in treating multiple cancer types.

• Meanwhile, Novartis already has two radiopharmaceuticals, Pluvicto and Lutathera, available for cancer treatment, and several dozen more in development.

How it works: Radiopharmaceutical “drugs work by attaching radioactive material to a targeting molecule that searches for and attaches to a specific marker on cancer cells. The trick is finding markers that exist on cancer cells but not healthy cells. That can allow the treatment to deliver radiation to cancer cells and spare the rest of the body from the level of damage that comes with many cancer drugs.”

• Bristol Myers Squibb sees “opportunity [in] … combining radiopharmaceuticals with existing cancer drugs like immunotherapy, said Robert Plenge, Bristol’s chief research officer.”

More interest: Though radiopharmaceuticals have been around since the 1940s, they’ve only begun drawing big interest in recent years.

• Early this year, Bristol Myers Squibb completed a $4.1 billion acquisition of radiopharmaceutical startup RayzeBio.
• In 2023, Eli Lilly acquired radiopharmaceutical company Point Biopharma and signed partnerships with businesses that are developing treatments.

In-house production: Among the key criteria in Lilly’s search for a firm to acquire: “whether companies were prepared to manufacture the drugs,” according to Eli Lilly Executive Vice President and President of Lilly Oncology Jacob Van Naarden.

• “Radiopharmaceuticals aren’t easy to make, and Lilly wanted to make sure any initial acquisition could produce the drugs themselves instead of outsourcing the work.”

Safety and speed are everything: Each dose of Novartis’ Pluvicto has a GPS tracker to make sure it goes to the correct patient at the correct time, said Victor Bulto, president of the U.S. unit for Novartis. That’s because the therapies are only good for a few days once made.

• Novartis is “investing more than $300 million to open and expand radiopharmaceutical manufacturing sites in the U.S. so it can produce the drug and get it to patients quickly.”
• The pharmaceutical company “drives doses to destinations that are within nine hours from the factory to minimize the risk of disruptions from storms, Bulto said.”

Special considerations: Radiopharmaceuticals come with unique challenges.

• One health care network had to upgrade its medical license before it could be allowed to handle radioactive materials, and “[a] certified specialist needs to administer the drugs, which are given intravenously.”
• To avoid exposing people to radiation, patients taking the treatments must remain at a distance from others for a week or more following the injections, which they get every six weeks.

Big opportunity: Though full understanding of radiopharmaceuticals’ potential may be years away, “[i]f we can be successful in expanding the target and tumor type repertoire, this could be a very big class of medicines,” Van Naarden said.

Washington, D.C. – Following the U.S. Trade Representative’s announcement on the continuation of Section 301 tariffs on China and the White House’s announcement on de minimis, National Association of Manufacturers Vice President of International Policy Andrea Durkin released the following statement:

“A trade war never benefits anyone, and this announcement ignores the realities of today’s economy, potentially harming manufacturers’ ability to grow and invest in the U.S. Manufacturers operate in a rapidly shifting global economy, where tariffs have the potential to affect every industry and every product. To stay competitive, manufacturers must have the flexibility to apply for exclusions as market dynamics change. Without this process, companies of all sizes will be crippled by rigid policies that stifle growth and innovation.

“Raising the cost of critical clean energy inputs, without offering a process for exclusions, directly undermines the Biden administration’s goal of boosting clean energy manufacturing in the U.S. Policymakers must ask tough questions: Are we issuing permits for more domestic aluminum smelters and critical minerals refining for energy production applications? Will wafer and battery production be exempt from regulatory hurdles to ensure automotive and high-tech manufacturing is not slowed? The White House also announced today it will propose a rule significantly altering how goods enter our borders under de minimis, subjecting hundreds of millions of additional packages to scrutiny by CBP—which raises the question of how we will ensure that manufacturing supply chains are not disrupted by this massive new burden on the agency charged with protecting our ports of entry.

“These questions all point to one fact—that tariffs often fail to address the underlying problems they’re supposed to solve, while often complicating manufacturers’ efforts to improve the quality of life for everyone. We are asking the administration to implement an exclusion process that fairly accounts for the unintended consequences of tariffs on our industry’s ability to create jobs and reach the 95% of customers around the world.”

-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 $2.89 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 announced that Victoria Bloom, who was most recently the economist for the Senate Commerce, Science and Transportation Committee minority staff, joined the NAM and its 501(c)3 workforce development and education affiliate, the Manufacturing Institute, this summer.

“Manufacturing in the U.S. is a life-changing force for good, providing well-paying jobs and career opportunities and products that improve the quality of life for everyone,” said NAM President and CEO Jay Timmons. “Victoria will help us tell this story with compelling data, which will demonstrate the real impact of policy decisions and illustrate the modern manufacturing resurgence.”

“With Victoria joining the MI team as the head of research, we can look forward to augmenting the MI’s insights and tailored solutions to manufacturers’ hiring and retention challenges. Victoria will helm the development of a portfolio of studies, aimed at exploring our industry’s workforce and competitiveness obstacles and opportunities. Her work will be instrumental toward helping manufacturers build the next-generation workforce of today and tomorrow,” said MI President and Executive Director Carolyn Lee.

Bloom, who holds a bachelor’s degree in economics from Louisiana State University and a master’s degree from George Mason University, previously worked for Sen. David Perdue (R-GA) and Rep. Gary Palmer (R-AL), in addition to her work on the Senate Commerce Committee. As Senate Commerce Committee economist, she served as lead economic and budgetary adviser to Ranking Member Ted Cruz (R-TX) and the minority committee staff. 

Bloom will work closely with NAM leadership to design and execute original research, including the NAM’s quarterly Manufacturers’ Outlook Survey. She will provide NAM members, policymakers and media with the latest economic analysis on trends impacting the manufacturing industry and workforce, as well as the broader 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 $2.87 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

The search for alternatives to chemicals called PFAS has been going on for years. Recently, materials design company Techmer PM created one—a new chemical for use in polymer processing.

The new solution: Last year, the Clinton, Tennessee–based manufacturer introduced the HiTerra T5—a polymer processing aid that helps maintain film surface smoothness and die-lip buildup—which replaces traditional chemistry based on per- and polyfluoroalkyl substances.

• The HiTerra T5, which meets Environmental Protection Agency guidelines and does not interfere with other additives, is being used in large-scale commercial undertakings by Techmer PM customers.

Why it’s critical: In March, the EPA issued the first federal reporting limits and guidelines for tracking the use of PFAS in manufacturing, along with other PFAS-related regulations. Individual states are also imposing their own restrictions on PFAS chemicals.

• The current regulatory environment is motivating plastics processors and raw materials suppliers to seek new alternatives to this chemistry.
• “The biggest challenge is that fluorinated chemistry is excellent at reducing friction, reducing melt fracture, improving hydrophobicity, stain resistance and helping the processing that manufacturers use, for example, to make film,” Techmer PM CEO Mike McHenry told the NAM in a recent interview. “It also helps with wear on small gears. It’s very effective, and it has unique properties that customers are accustomed to.”

More replacement efforts: Techmer PM is working closely with its customers to come up with additional PFAS alternatives, McHenry said.

• Because one of PFAS’ most useful characteristics is its ability to resist fire, “we’re looking at ways to remove halogen flame retardants, including fluorinated compounds” and find a comparable alternative for customers, McHenry said.

Unrealistic timelines: While the firm is hard at work developing potential replacements, the stringent deadlines that the EPA has set for the reporting and potential elimination is damaging, McHenry told us.

• “It can take years to get use approval [for alternatives], and finding them is a huge challenge in itself,” he went on. “We see the timelines being put forth as something that needs to be looked at, and [manufacturers] need support.”
• “For some uses—tubing, for example–it’s going to be very difficult to find something that will work the way fluorinated chemistries do. As much as we all want to move away from [PFAS], there are some instances in which it will be worse” to rush the search than continue using PFAS, he added.
• One of these areas is medical devices, McHenry said. The gowns used to protect surgeons and nurses, for example, are coated in PFAS-containing substances, which “will be very difficult to replace.”

The long view: For many applications, dependable alternatives will likely be found at some point, McHenry concluded.

• “I think we’ll find alternatives, but it’s not one-size-fits-all, and it will take time,” he said. “The versatility of fluorinated compounds is unique.”

Rep. Yakym (at right) visits the shop floor of Kountry Wood Products in Nappanee, Indiana.

For Rep. Rudy Yakym (R-IN), Indiana’s 2nd Congressional District isn’t just a place on the map—it’s the beating heart of America’s manufacturing sector. It’s a district he proudly refers to as the “manufacturing capital of America.”

• “From the foundries to factory floors, Indiana’s 2nd District is where ‘Made in the USA’ happens,” said Rep. Yakym. “This district is home to some of the most decent and hardworking men and women anywhere in America. They contribute so much to our nation’s industrial base, and I take the responsibility of representing them very seriously.”

Personal connection: Representing this district in the House of Representatives, the fourth-generation Hoosier who was born and raised in South Bend brings a personal connection to manufacturing that shapes his vision for the future of the industry and fiscal responsibility in the United States.

• Before his political career, Rep. Yakym worked for supply chain management firm Kem Krest. His firsthand experience in the industry gave him a unique perspective on the challenges and opportunities within manufacturing.
• His brother Joel works in manufacturing, operating a large machine for Welch Packaging in Elkhart. “In his line of work, he has been able to provide a great living for his family, and I want more people to have those opportunities for rewarding, well-paying jobs,” said Rep. Yakym.

This deep-rooted connection to manufacturing is more than just a talking point for Rep. Yakym—it’s a cornerstone of his identity and legislative agenda.

Zoom out: Rep. Yakym’s commitment to manufacturing isn’t just lip service. He led a significant effort in the House of Representatives, rallying more than 140 Republican colleagues to support a tax package that would restore full R&D expensing, bonus depreciation and interest deductibility—key provisions of the NAM’s “Manufacturing Wins” campaign to preserve tax reform in its entirety.

• Although the package faced hurdles in the Senate, Rep. Yakym’s work laid the groundwork for future bipartisan efforts.

A collaborative spirit: Rep. Yakym’s dedication to bipartisanship is clear. He noted that if he had to choose a member of Congress of the opposing party he’d start a manufacturing company with, he didn’t hesitate to name Rep. Jimmy Panetta (D-CA). Rep. Yakym said they would produce RV components, an industry he knows well from his district, which includes Elkhart, the “RV Capital of the World.”

• “Jimmy and I serve on the House Budget Committee together, and he is always willing to build consensus and work across the aisle to find commonsense solutions,” said Rep. Yakym.

The vision: Looking ahead, Rep. Yakym envisions a future where manufacturing continues to be a pillar of the American economy, especially in his district. He wants the next generation to understand that viable, rewarding career paths in manufacturing are right in their backyard.

• “There is massive demand at the manufacturers in my district for welders, forklift drivers and other jobs that may otherwise be overlooked by students,” Rep. Yakym points out.
• “You can get a well-paying job straight out of high school that will offer on-the-job training. There is also a wealth of advanced manufacturing jobs available at medical device companies, as well as a number of battery manufacturers being brought online in the coming years.”

What’s next: As a congressman, Rep. Yakym’s primary goal is to restore fiscal responsibility in Washington. He sees this as essential not just for the country’s economic health, but also for national security.

• “The main reason I ran for office and my top priority in Congress is restoring fiscal responsibility so that future generations can inherit a nation every bit as prosperous and full of opportunity as the one we did,” said Rep. Yakym. “Getting our fiscal house in order is the most important long-term challenge we face as a nation.”

Only at the NAM: Shop Talk is a new series that aims to help you get to know the personal connections, insights and priorities of policymakers who impact our industry.