NAM Opposes Overtime Rule
The NAM is leading a coalition of business groups in advocating against a potential new overtime rule from the Department of Labor.
The background: The current overtime rule, part of the Fair Labor Standards Act, mandates that employees must receive overtime pay of at least time and a half for hours worked over 40 in a workweek.
- However, it contains certain exemptions for white-collar workers. If an employee makes a minimum amount of money or is classified as an executive, administrator or professional, they are exempt from overtime pay.
The new rule: The new rule is expected to raise the salary threshold from the current $35,568 per year.
- The change would potentially cause challenges for employers, as well as for employees who have worked to advance themselves away from hourly jobs and into salaried company positions, as the NAM has long argued.
- In addition, the widespread adoption of hybrid work brought about by the pandemic “makes compliance with potential changes to the white-collar exemptions measurably more difficult,” the coalition pointed out. New regulations may force employers to restrict these work arrangements that many workers value highly.
The last word: As the coalition told the Department of Labor, “Many businesses are not well-positioned to absorb new labor costs associated with changes to the overtime pay regulations, and such changes would only exacerbate the difficulties businesses are currently facing”—including inflation, supply chain disruptions and the aftereffects of the pandemic.
Debt Ceiling Bill Features Permitting Reform
The debt ceiling bill finalized on Sunday—and set to go to a vote in the House this evening—includes meaningful permitting reform measures, according to E&E News (subscription).
What’s going on: The legislation would approve the Mountain Valley pipeline and enact changes to the National Environmental Policy Act.
- In addition, “a one-year deadline would be placed on the production of environmental impact assessments for new energy projects seeking permits. A two-year maximum would be applied for environmental impact statements.”
- “The agreement would also expand an existing program to expedite federal permitting for infrastructure projects, known as Fast-41.”
- And last, though the bill will not include provisions for a large-scale transmission buildup, it will call for a study of grid challenges and recommendations that might fix them.
The NAM says: NAM President and CEO Jay Timmons commended policymakers on reaching an agreement:
- “Manufacturers have been a leading voice for permitting reform, so we are encouraged that this legislation takes critical steps to improve our broken permitting system, helping us more fully leverage our domestic energy sources and expand manufacturing in the United States.”
- “We will work with Congress and the administration to build on this progress and create a comprehensive bipartisan permitting reform package that also helps unlock the full potential of laws meant to encourage the growth of manufacturing in America, such as the historic infrastructure law and the CHIPS and Science Act.”
The bigger bill: In case you missed it, the debt legislation as a whole would suspend the borrowing limit for the next two years, while also making some spending cuts, according to The Wall Street Journal (subscription).
- “It would cut spending on domestic priorities favored by Democrats while boosting military spending by about 3%. It also would extend limits on food assistance to some beneficiaries to prod them to find jobs.”
NAM in the news: Timmons’ statements on the debt-limit agreement were picked up by CNN Business and The Hill.
Creators Wanted Tour Revs Up at Indy 500
The Creators Wanted Tour, a joint project of the NAM and the Manufacturing Institute, set new records at the “Greatest Spectacle in Racing”: the Indianapolis 500.
By the numbers: The tour’s 17th stop, generously sponsored by Snap-on, allowed nearly 1,600 young fans and their families to experience modern manufacturing firsthand.
- In addition, more than 72,000 students and career mentors signed up online to learn more about manufacturing careers.
- So far, more than 10,000 students have taken part in the immersive experience since its launch in October 2021, with 84% of participants reporting an improved view of modern manufacturing careers. Online signups have now surpassed 1.3 million.
What they’re saying: “‘Creators Wanted’ is a critical message to all young people, parents, caregivers and educators across our country,” said Snap-on Chairman and CEO Nick Pinchuk, who is also an NAM Executive Committee member and MI board member.
- “Snap-on is proud to bring the Creators Wanted Tour to the [Indianapolis Motor Speedway] and the Indianapolis 500, showing younger race fans and their families that manufacturing is an exciting place where the opportunities are many, the careers are rewarding and the lives are filled with the pride of being part of something greater than yourself,” he continued.
- NAM President and CEO and MI Chairman of the Board Jay Timmons added, “The world’s largest single day sporting event met the nation’s largest manufacturing campaign—and it revved up enthusiasm about modern manufacturing in a big way with more students and their families.”
Behind the scenes: Alongside the Creators Wanted experience at Fan Midway at the IMS, fans were also treated to a number of other interactive exhibits.
- These included Snap-on’s “Makers and Fixers” tent; Honda’s racing simulator and vehicle fleet; the IMS Kidzone where kids raced on their own track; and FactoryFix’s activities and resources to help people find their path into manufacturing careers, including its work through CreatorsWanted.org.
- “Seeing folks at Indy curious about our Creators Wanted campaign was such a great confirmation of the research and testing we did to arrive at the name for this effort,” said NAM Executive Vice President Erin Streeter. “When parents and kids asked us about the type of creators we need in manufacturing, it just showed how spot-on our message really is.”
- The NAM video team captured some of the fan sentiment with this video.
The big picture: “These tour stops often serve as the first interaction individuals have with the NAM and the MI, and the impression is powerful,” said NAM Managing Vice President of Brand Strategy Chrys Kefalas.
- “People see us actively promoting manufacturing careers and aiding job seekers, reinforcing our commitment to U.S. competitiveness. These meaningful personal interactions create lasting impressions and underscore the industry’s value.”
What’s next: After a thrilling Indy 500, where more than 300,000 attendees who saw Josef Newgarden secure a dramatic victory, the tour looks forward to its next stop at the SkillsUSA National Leadership & Skills Conference in Atlanta, Georgia, June 20–22.
Supreme Court Reins in EPA Overreach
In its Sackett v. EPA ruling yesterday, the Supreme Court handed a victory to congressional Republicans and others who believe the Biden administration’s revised Waters of the United States rule is overly broad, according to E&E News’ Greenwire (subscription).
What’s going on: By unanimous vote, “the court found that EPA and the Army Corps of Engineers wrongfully claimed oversight of the wetland on the Sacketts’ property—located about 300 feet from Idaho’s Priest Lake—and that federal courts had erred in affirming the agencies’ jurisdiction.”
- “The ruling could complicate the Biden administration’s legal defense of its new definition of which wetlands and streams qualify as ‘waters of the U.S.,’ or WOTUS, subject to Clean Water Act permitting.”
- The Sacketts have been prohibited from building on their property for more than 15 years because of the wetlands designation and oversight claims.
Why it’s important: The decision—in which “[t]he court said the EPA can only assert jurisdiction over wetlands that have continuous surface connection to navigable waters, rejecting a more expansive view proposed by the EPA,” according to The Wall Street Journal (subscription)—will give much-needed regulatory certainty to manufacturers, which have been caught in limbo over the unclear and changing WOTUS definition.
The NAM says: The court’s ruling “put[s] us on a path to regulatory certainty for manufacturers across the country,” NAM Vice President of Energy and Resources Policy Brandon Farris said.
- “This case demonstrates yet again why manufacturers and our economy need a sensible Waters of the United States proposal that provides clarity and certainty and allows the industry to continue leading the way on environmental protection. The EPA should heed the court’s ruling and revise its latest WOTUS proposal.”
Army, Navy, Air Force and Marines! Heroes MAKE America is Reaching More Veterans
When service members leave the military, manufacturers are quick to say: “Come on over!” Military skills are usually a great match for manufacturing careers, which require attention to detail, technical abilities and creative thinking. And there’s no better matchmaker than the Manufacturing Institute’s Heroes MAKE America initiative, which since 2018 has been offering training certification programs and career courses to transitioning service members and veterans.
Today, HMA not only serves service members on military installations across the country but also has expanded its reach via a virtual training program.
Widening the reach: Now in its second year, the virtual training program has allowed HMA to impact service members on a national scale.
- For the first time, members from four branches—Army, Air Force, Marine Corps and Navy—are participating in the same class at the same time.
- Additionally, the geographic range of participants has increased to comprise students located far and wide, including in Alaska, Arizona, Delaware, Kansas and Kentucky.
- The program has reached more than 120,000 prospective students through local transition assistance, HMA’s LinkedIn and Facebook presence and the SkillBridge website.
How it works: HMA partnered with Texas State Technical College to create a virtual nine-week training and certification program.
- Participants earn nationally portable, industry-recognized Certified Production Technician certification as well as an OSHA 10 certification.
- Through Heroes Connect, HMA also partners with sponsors like Johnson & Johnson, The Caterpillar Foundation, Amazon, Howmet Aerospace, WestRock, Saint-Gobain, Atlas Copco, Cargill, FUCHS Lubricants Company, C.H. Guenther & Sons, Honda Foundation, Niagara Bottling and the NAFEM, PPI and SEMI associations to connect program graduates and members of the military community with manufacturers.
Read the full story here.
Senior U.S., China Officials Talk Trade, Exports
Commerce Secretary Gina Raimondo met with Chinese Commerce Minister Wang Wentao Thursday evening to talk “trade, investment and export policies” in the first Cabinet-level discussion between the two nations in months, Reuters reports.
What happened: The officials “had candid and substantive discussions on issues relating to the U.S.–China commercial relationship, including the overall environment in both countries for trade and investment and areas for potential cooperation,” the Commerce Department announced in a readout of the sit-down.
- “Secretary Raimondo also raised concerns about the recent spate of [People’s Republic of China] actions taken against U.S. companies operating in the PRC,” including an uptick in investigations against these companies’ China operations.
- Wang—who is also confirmed to meet today with U.S. Trade Representative Katherine Tai—voiced concerns over some of the Biden administration’s China policies, “including on semiconductors, export controls and reviews of foreign investments, a Chinese Commerce Ministry statement said,” according to Reuters.
- Both meetings are taking place on the sidelines of U.S.-hosted meetings at the Asia-Pacific Economic Cooperation organization happening this week in Detroit.
What they agreed: Raimondo and Wang said they would begin and maintain open communication, which China’s Commerce Ministry said would let the two countries discuss specific trade and cooperation matters.
Additional background: Earlier this week, Wang met with U.S. firms, with whom he stressed “the importance of the China market for American companies,” reports the South China Morning Post (subscription).
Why it’s important: Thursday’s Raimondo–Wang exchange comes after President Biden and other G7 leaders “said they would ‘de-risk’ without ‘decoupling’ from the world’s second-largest economy in everything from chips to minerals,” according to Reuters.
China Seeks Non-Western Lithium Sources
China, which already commands most of the world’s lithium refining, is undertaking “a risky strategy” in an effort to lay claim to more of the metal globally: buying stakes in mines located in developing nations, according to The Wall Street Journal (subscription).
What’s going on: “China is spending billions on stakes in nations that have histories of political instability, local resistance and resource nationalism. Projects often face protests, regulatory delays and even cancellations. If China succeeds, however, it could secure access to one-third of the world’s lithium-mine production capacity needed by 2025, according to industry estimates.”
- Canada and Australia, which hold among the world’s largest lithium reserves, recently put an end to new Chinese investments in critical minerals.
Why it’s important: Lithium is a critical component of batteries used in electric vehicles and smartphones—and demand for the mineral could outstrip supply significantly by the end of the decade.
A precarious investment: To ensure sufficient lithium stock to power its EV industry (particularly as tensions with the U.S. rise), China has acquired stakes in close to 20 mines throughout Latin America and Africa.
- Some of the countries in which the mines sit face the risk of terrorist attacks, while others have a history of revoking agreements made with foreign firms.
However … China has some advantages over Western nations when it comes to securing lithium from South American and African nations.
- “CATL, for example, is a battery behemoth, with the political backing of Beijing and a strong network of companies along the supply chain.
- Developing nations often want to partner with Chinese firms that also do processing, refining or battery making, because they believe such companies will better guarantee them steady streams of income.
The Cost of Inaction on the Miscellaneous Tariff Bill
It’s been more than two years since the Miscellaneous Tariff Bill expired—and the lack of renewal is harming manufacturers in the U.S.
What’s going on: Manufacturers have been operating without an MTB—legislation that temporarily eliminates or reduces tariffs on products not available in the U.S.—since January 2021, when MTB legislation that had been passed in 2018 expired.
- The MTB is renewed typically every few years. In June 2021, the Senate passed an MTB measure as part of the U.S. Innovation and Competition Act, and the House passed a different version in the America COMPETES Act, but Congress did not agree to trade provisions in the final China competition legislation.
- No MTB legislation has been introduced during this Congress in either chamber.
Why it’s important: The result of this inaction has been a direct economic hit to manufacturers, particularly small and medium-sized manufacturers that are paying more for product inputs.
- Since the MTB expired in December 2020, manufacturers and other businesses have paid more than $1 billion—or $1.3 million per day—in anticompetitive tariffs for goods they cannot source in the U.S., according to an NAM analysis
- The added costs can create higher prices for consumers, making it harder for American families to buy goods from manufacturers in the U.S.
- Due in part to these tariffs, some manufacturers are having difficulty maintaining current staffing levels and expanding opportunities for existing workers.
Hurting the heartland—and Ukraine: Sukup Manufacturing Co., headquartered in Sheffield, Iowa, is a family-owned and -operated manufacturer of grain-storage and grain-handling products. It is paying tens of thousands of dollars in tariffs to import components from the Kyiv province of Ukraine.
- In 2022, the company paid nearly $40,000 in tariffs on imports from Ukraine.
- Ukraine’s export market is essential to its economic development as well as its ability to withstand Russia’s invasion. The lack of an MTB is creating barriers between companies in the U.S. and their Ukrainian partners at exactly the wrong time.
Read the full story here.
An Electrical Manufacturer Sparks Inclusion and Diversity
Manufacturers nationwide are taking steps to ensure a supportive and respectful workforce that values the varied talents and backgrounds of all employees. nVent—a manufacturer of electrical connection and protection solutions—believes that inclusion and diversity initiatives have the potential to positively impact every piece of its business.
Inclusion and diversity has been a priority for nVent since it became a public company in 2018. By identifying strategic initiatives for its inclusion and diversity efforts, nVent has become a thought leader in the electrical manufacturing industry. Five years later, those initiatives have become a comprehensive strategy that is embedded in the company’s operations.
“We may not always have the answers,” said Chief Inclusion and Diversity Officer Laura Brock, “But we want to make sure we create an opportunity for progress and share the resources we have developed with our customers and partners to drive inclusion in our industry.”
A comprehensive strategy: nVent’s strategy is built around four pillars designed to promote inclusion and diversity throughout the company, according to Brock and Inclusion and Diversity Manager Jasmin Buckingham.
- Employees: From recruitment onward and throughout the employee lifecycle, nVent ensures that inclusion and diversity is part of every employee’s experience.
- Communities: nVent strives to be “a good citizen” in its community by promoting shared economic growth through multiple avenues—including philanthropy. It has made inclusion and diversity a central aim of these efforts.
- Customers: The company supports a diverse range of customers in the electrical industry and works to meet all customers where they are.
- Suppliers: nVent is focused on supplier diversity, which promotes engagement, growth and innovation through diverse business relationships.
Read the full story here.
17 Years Is Too Long to Wait for a Permit
A power line and wind farm project first conceived in 2006 finally received a critical permit this month—a perfect example of why we need permitting reform, according to The Wall Street Journal (subscription).
What’s going on: “The Interior Department’s Bureau of Land Management gave the green light [last] Thursday for a high-voltage power line [in the SunZia project]. The permit allows the developer, Pattern Energy, to build the country’s largest wind energy project across three counties in rural New Mexico and deliver that electricity to large markets in Arizona and California.”
- Developers applied for federal approval in 2008, and the Obama administration “fast-tracked” the project four years later.
- Pattern Energy plans to start construction later this year.
Why it’s important: SunZia is emblematic of a flawed system, one which President Biden and legislators are now trying to fix, according to the Journal.
- “The labyrinthine state, local and federal permitting processes are often drawn out for years, require duplicative paperwork and generate thousands of pages of government analysis. The average federal environmental review, for example, takes 4½ years, according to a 2020 White House report.”
- Earlier this month, the White House recommended changes it said would help speed the approval of transmission projects.
What they’re saying: “‘The White House doesn’t have a prayer of implementing the infrastructure bill or the [Inflation Reduction Act] without permitting reform,’ said Rep. Garret Graves (R., La.), a lead Republican negotiator in the debt-ceiling talks. ‘And anyone who’s actually out there trying to build things will tell you that.’”
What we’re doing: The NAM has been one of the foremost voices urging permitting reform on Capitol Hill.
- NAM President and CEO Jay Timmons recently testified before Congress on the topic and outlined manufacturing priorities for overhauling the permitting process.
- At another recent congressional hearing, NAM Vice President of Energy and Resources Policy Brandon Farris told legislators, “Streamlining and modernizing our nation’s permitting laws and procedures will help us advance many of our nation’s shared priorities, improving the quality of life for all communities; modernizing our infrastructure; achieving energy security; ramping up critical mineral production; enhancing manufacturing competitiveness; and creating manufacturing jobs in the U.S.”