Input Stories

With the backing of major HVAC manufacturers, start-ups are working to make air conditioners that are capable of easing the strain on the power grid, according to The Wall Street Journal (subscription).

What’s going on: “Companies such as Blue Frontier, Transaera and Montana Technologies are raising money from investors including industry giant Carrier Global … to develop more efficient technologies. Many of those efforts focus on the humidity rather than the heat, using new materials like liquid salt to dry out the air.”

Why it’s important: The number of air conditioners in use worldwide is expected to more than double by the middle of the century, to 5.5 billion, with many units likely to be inefficient.

• “Stalwarts such as Carrier and Trane Technologies say they are spending billions of dollars to offer more efficient versions of conventional ACs while evaluating the new approaches.”

A different AC unit: Traditional air-conditioning units work by converting refrigerants from gas to liquid and then back again, while circulating air with fans. They are unable to remove humidity without cooling the air, which is what makes them inefficient, according to the article.   

• “Blue Frontier aims to separate humidity and temperature control using a liquid salt solution that was developed with the National Renewable Energy Laboratory. The solution also stores energy, reducing consumption at peak times, when electricity grids are strained on hot days.
• Innovation is also required to make air conditioning affordable for people in developing nations, according to the Journal.

More investment: “The need for new approaches is pushing Carrier to make venture investments to complement its other growth strategies, said Jennifer Anderson, Carrier’s chief sustainability officer. Trane is investing in startups like data-center-cooling company LiquidStack while looking at new technology approaches, CEO Dave Regnery said.”

Consumer confidence hit its highest level in nearly a year-and-a-half in June, Reuters (subscription) reports.

What’s going on: “The Conference Board said its consumer confidence index rose to 109.7 this month, the highest reading since January 2022, from 102.5 in May. Economists polled by Reuters had expected the index to climb to 104.0.”

On jobs: The survey’s labor market differential, which comes from respondent views on the difficulty of getting jobs, increased to 34.4 in June from 30.7 in May—a sign that many still view the labor market as tight.

• This finding is in keeping with a key data point in the NAM’s Q2 Manufacturers’ Outlook Survey, in which the majority (74.4%) of manufacturers cited attracting and retaining a quality workforce as a top challenge.

What we’re saying: The latest consumer confidence index is good news, according to NAM Chief Economist Chad Moutray.

• “Americans felt more upbeat in their assessments of both current and future conditions, with improved prospects for jobs and a strengthened overall economic outlook, including for household finances,” he said.

In other good news: Sales of new homes increased to a 15-month high in May, up 20% from a year ago, bolstering hopes that the U.S. economy might avoid a recession.

More than $42 billion will be given to states to expand their broadband internet access, the White House announced this week, according to The Wall Street Journal (subscription).

What’s going on: “States and territories have been jockeying for months for their share of $42.5 billion allocated in an internet-construction fund called the Broadband Equity Access and Deployment program. The law requires that federal agencies use a new, more accurate map of where high-speed internet service is missing before disbursing the funds.”

• Texas will get the most money under the project ($3.3 billion) followed by California ($1.9 billion). Also set to receive significant sums are the less-populous Alaska, West Virginia and Montana.

The goal: The effort is meant to connect everyone in the U.S. to “affordable, high-speed internet service by 2030,” according to the Journal.

Why it’s important: Approximately 8.5 million U.S. households and businesses are located in areas of the country without access to high-speed internet access, which the Biden administration called “a necessity in today’s society” in an announcement about the funds.

• BEAD is one of six federal internet-construction programs authorized by the NAM-backed bipartisan infrastructure law of 2021.
• The legislation also includes $2.75 billion for digital equity and inclusion and $2 billion in loans and grants for internet infrastructure in rural locations, CNET reports.

Our view: “Manufacturers supported the bipartisan infrastructure law, and today’s historic broadband investment announcement will enhance industry operations through leading edge connectivity,” the NAM tweeted on Monday. “Thank you @POTUS for your leadership to advance domestic [manufacturing] priorities.”

Anheuser-Busch has a solid history of supporting its U.S. facilities and partners, and now it’s expanding those efforts.

What’s going on: The beer giant will give financial and other assistance to its wholesalers, distributors and frontline workers, it announced in a memo and regulatory filing with the Securities and Exchange Commission this month.

• Aid to partners and workers will include wholesaler financial support and sales incentive payments, reimbursements for freight and fuel surcharges and extended lines of credit though the end of the year, as well as financial assistance for local marketing efforts.

“Beer is for everyone”: The financial announcements came just days before the release of Bud Light’s “Easy to Drink, Easy to Enjoy” campaign.

• Other components of the campaign are weekly $10,000 giveaways, Fourth of July weekend rebates and chances to win tickets to local shows in the national Bud Light Backyard Tour, which will feature country music artists Seaforth and Tyler Braden.

Origin story: Today Anheuser-Busch launches its “That’s Who We Are” effort to show where the company’s beers come from and who’s involved in making them. More than 140 growers, employees, wholesalers and other partners participated in the filming of the campaign’s first ad.

The last word: “As we move forward, we will focus on what we do best—brewing great beer and earning our place in moments that matter to you,” Anheuser-Busch CEO Brendan Whitworth said in the memo. “We are a beer company, and beer is for everyone.”

Durable goods orders beat expectations in May, rising 1.7% to a record $288.2 billion from $283.2 billion in April, according to U.S. Census Bureau data.

• Excluding transportation equipment, orders for new durable goods increased 0.6% last month, to $185.62 billion from $184.54 billion in April.

Year over year: New durable goods orders have increased solidly on a year-over-year basis—5.4%—since May 2022.

• They have dipped 0.3% over the past 12 months when excluding transportation equipment, however.

Core capital goods: Orders for core capital goods, a proxy for capital spending in the U.S. economy, increased 0.7% in May, to $73.96 billion from $73.46 billion. That’s an all-time high.

What’s up: The following categories posted strong sales in May:

• Non-defense aircraft and parts (up 32.5%)
• Motor vehicles and parts (up 2.2%)
• Electrical equipment and appliances (up 1.7%)
• Machinery (up 1.0%)
• Other durable goods (up 0.6%)
• Primary metals (up 0.5%)

The NAM’s take: “Durable goods orders were stronger than expected in May, with continuing resilience despite a challenging economic environment amid an uncertain outlook,” said Moutray.

A natural gas pipeline that would bring affordable energy to customers in the Mid- and South Atlantic regions of the U.S. got its final permit late last week, according to E&E News’ ENERGYWIRE (subscription).

What’s going on: On Friday the planned 303-mile Mountain Valley Pipeline—set to run from West Virginia to southern Virginia—received its water crossing permit, which will allow developers to build the project across rivers and streams in accordance with Section 404 of the Clean Water Act.

• The permit was part of the debt-ceiling deal signed earlier this month by President Biden
• Construction of the MVP, the only large pipeline project currently being built in Appalachia, has been paused for more than a year because of legal battles, according to another ENERGYWIRE (subscription) story.

Why it’s important: The granting of the water crossing permit—which comes more than five years after the pipeline’s initial approval—is a step forward for permitting reform.

• The approvals process for critical infrastructure in the U.S. takes far longer than it does in other countries that have comparable environmental regulations, NAM Vice President of Energy & Resources Policy Brandon Farris told Congress at a recent hearing.
• This lag needlessly delays—or worse, drives overseas—critical infrastructure, Farris said.

Manufacturers act: Last week the NAM, along with members of the NAM’s Council of Manufacturing Associations and Conference of State Manufacturers Associations, launched Manufacturers for Sensible Regulations, a coalition aimed at speeding up the  permitting process and addressing the large volume of regulations being handed down by the federal government.

What’s next for MVP: The MVP has approximately four to five months of construction remaining. It could begin service this year or in early 2024, according to one estimate.

• To finish construction, the project will require the permission of the Federal Energy Regulatory Commission, which “must still validate that the project has all their permits,” ENERGYWIRE reports.

The Creators Wanted tour landed in Atlanta last week for the SkillsUSA National Leadership and Skills Conference—the largest gathering of the America’s future skills workforce.

Over the course of the three-day program, the tour, an initiative of the NAM and the Manufacturing Institute, helped change attitudes and challenge misconceptions about manufacturing, opening up a new world for some of the country’s most talented rising workers.

By the numbers: The tour’s SkillsUSA stop, sponsored by Honda, Snap-on, FactoryFix and Union Pacific, helped share the story of modern manufacturing with many of the brightest career mentors and technical education students in the United States.

• 15,000 people attended the event, including many career and technical education students, educators and parents.
• More than 1,500 people took part in the Creators Wanted immersive experience at SkillsUSA.
• More than 120,000 students and career mentors signed up to learn more about modern manufacturing careers during the tour stop in Georgia.

More participants: Other leading manufacturers were also in attendance, engaging students with information about careers in manufacturing. A few of the participants included Caterpillar, John Deere/Korematsu, Volvo NA Group, Vermeer Corp., Toyota, Cummins, Penske and 3M.

A special guest: Snap-on Chairman and CEO Nick Pinchuk dedicated a full day to inspiring students and educators. The NAM executive committee member and Manufacturing Institute board member emphasized the “Creators Wanted” mantra in order to remind participants that manufacturers aren’t just recruiting workers—they’re inspiring and empowering creators.

Read the full story here.

Diversity, equity and inclusion efforts have a lot of payoffs: they widen talent pipelines, increase retention rates and improve business outcomes. So what are manufacturers doing to strengthen DE&I in their workplaces? A newly updated survey from the MI and Keybridge has the answers.

What it is: The MI and Keybridge conducted their inaugural DE&I benchmarking survey in October 2021, and manufacturers’ DE&I efforts have grown a lot since then. One year later, the MI and Keybridge repeated the survey, and the results are in—along with recommendations for manufacturers seeking to grow further.

A firm commitment: 72% of manufacturers agreed that improving and maintaining DE&I was a key focus for their company—and many of them have been taking tangible steps toward that goal.

• Of the 60% of companies that made public statements affirming their commitment to DE&I, most have followed through with diversity commitments, employee resource groups, donations and transparent updates on their DE&I progress.

Widening talent pools: More than 60% of respondents reported that the representation of women within their companies has increased in the past five years. Still, there were also some challenges in expanding the diversity of hiring pools.

• 50% of companies reported struggling with hiring diverse candidates, with 40% struggling with retaining diverse workers.

Where to start: Companies that have not yet taken concrete actions toward fulfilling their commitments can get started by developing a strategic plan or designating a senior leadership position for DE&I issues, the report recommended.

Read the full story here.

Businesses “that provide tools, chemicals and other supplies for the semiconductor industry” may now apply for a piece of the funds set aside in last year’s CHIPS and Science Act, according to The Wall Street Journal (subscription).

What’s going on: Late last week, the Biden administration announced broadened eligibility for companies capable of using federal subsidies to increase chip production in the U.S.

• Last year’s legislation, which the NAM championed, earmarked $39 billion for the purpose.
• In February, the Commerce Department’s CHIPS Program Office began “accept[ing] applications for the construction, expansion, or modernization of semiconductor materials and manufacturing equipment facilities for which the total capital investment equals or exceeds $300 million,” according to the National Institute of Standards and Technology, which is part of Commerce.

Why it’s important: “‘We can have as many fabs [chip plants] as we want, but the reality is, we also need the supply chain—the chemicals, the material, the tools that go into those fabs,’ Commerce Secretary Gina Raimondo said at a briefing,” according to the Journal.

Lots of interest: Nearly 400 businesses across 37 states have signaled their interest in receiving funds under this latest phase.

• “The department is already accepting full applications for the C[HIPS] Act funding from companies with plans to build facilities for leading-edge semiconductors, and will soon accept submissions from companies that plan to build chips that are currently state-of-the-art or older.”
• Suppliers may begin submitting applications this fall, but the administration has not yet said when the funds will be disbursed.

When Mary Andringa arrived at NAM headquarters on Wednesday, she expected a tour of the renovated office. Instead, the former NAM Board chair was surprised by an applauding crowd who gathered for the ribbon-cutting for one of the NAM’s meeting rooms, now named the Mary Andringa Room in commemoration of her decades-long service to manufacturers in the U.S. The NAM’s conference rooms are named for many luminaries of manufacturing, including Andrew Carnegie, Thomas Edison, the Wright Brothers, Jonas Salk and Marie Curie.

“I was absolutely overwhelmed, humbled and honored,” Andringa said.

A longtime supporter: Now chair emeritus of Vermeer Corporation—a family-owned, midsized manufacturer of industrial and agricultural machines in Pella, Iowa—Andringa served as NAM Board chair from 2011 to 2013 and has been an active participant on the NAM Board since the early 2000s.

• Andringa found her experience as NAM Board chair deeply meaningful, remarking on the close relationship she developed with NAM President and CEO Jay Timmons, who was also newly appointed in 2011.
• “It was a really great experience because I had a few years under my belt as CEO [of Vermeer],” Andringa said, “and I could share best practices with Jay. It was great to see how he took initiative and dug into some areas that needed more cooperation, like the NAM’s partnerships with state associations.”

Visiting the Hill: Andringa said she “enjoyed being a voice for manufacturing” in meetings on the Hill and with several administrations.

• Whether advocating against compliance regulations that created needless hardship for manufacturers, or for removing trade barriers impeding U.S. exports, Andringa stressed that she always made her case to policymakers on both sides of the aisle.
• “The NAM tries to be the voice of reason. … It has done a good job connecting with both parties and whoever is in the White House,” she said.

Read the full story here.