NAM Survey: Uncertainties Continue to Drive Concern
Workforce Shortage Is Top Issue for Manufacturers
Washington, D.C. – The National Association of Manufacturers today released the results of the Manufacturers’ Outlook Survey for the third quarter of 2019. For the second consecutive quarter, the survey shows a significant drop in manufacturers’ optimism amid uncertainties, a softening global economy and worsening workforce shortage. Nearly 68 percent of manufacturers had a positive outlook for their business in the third quarter, down from 79.8 percent in the second quarter and 89.5 percent in the first quarter. The inability to attract and retain a quality workforce remained manufacturers’ top business concern (69.9 percent) for the seventh straight quarter.
Manufacturers across the country are telling us nothing concerns them more than the workforce crisis. And that’s exactly why the NAM took the historic step earlier this year of launching the Creators Wanted Fund, a multimillion-dollar campaign to close the skills gap and inspire a new generation of modern manufacturing workers, said NAM President and CEO Jay Timmons. This quarter’s survey also provides more evidence that a slowing global economy and uncertainties have manufacturers on edge. If we get the United States–Mexico–Canada Agreement passed, the trade war with China turned into a trade agreement and the Export-Import Bank reauthorized, manufacturers will be able to hire even more workers and grow our operations with more certainty.
Manufacturers have an all-time high of 522,000 open jobs, according to the most recent JOLTS data, and a landmark report published last year by Deloitte and The Manufacturing Institute—the workforce and education partner of the NAM—found that 2.4 million manufacturing jobs could go unfilled by 2028.
The survey found that trade uncertainties among manufacturers rose to 63.4 percent in the third quarter, up from 56.0 percent in the second quarter, as Congress and the administration work to approve the USMCA, secure a U.S.–China trade agreement and reauthorize the Ex-Im Bank.
Conducted by NAM Chief Economist Chad Moutray, the Manufacturers’ Outlook Survey has surveyed the association’s membership of 14,000 large and small manufacturers on a quarterly basis since 1997 to gain insight into their economic outlook, hiring and investment decisions and business concerns. The NAM releases the results to the public each quarter. Further information on the survey is available here.
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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 more than 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.
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NAM Statement on Third Meeting of the American Workforce Policy Advisory Board
Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on the third meeting of the American Workforce Policy Advisory Board:
Today the American Workforce Policy Advisory Board released our initial recommendations, demonstrating that the board has already made significant progress. Manufacturers are proud to be a part of this effort as we build the workforce of tomorrow for our industry and across the American economy. With 4.6 million jobs to fill over the next decade, manufacturers in America are facing a workforce crisis—but it also presents us an opportunity to bring more people into high-paying careers if we connect them with the right training. Government, educators, community leaders and businesses all have a role to play and an obligation to help lead. That is why the NAM and The Manufacturing Institute this year launched Creators Wanted, an unprecedented campaign to inspire the next generation of manufacturing workers.
Background
The American Workforce Policy Advisory Board, chaired by Advisor to the President Ivanka Trump and Commerce Secretary Wilbur Ross, was established by the Department of Commerce pursuant to Executive Order 13845, Establishing the President’s National Council for the American Worker. The Board provides advice and recommendations on ways to encourage the private sector and educational institutions to combat the skills crisis by investing in and increasing demand-driven education, training and re-training, including training through apprenticeships and work-based learning opportunities.
Timmons was nominated to serve on the American Workforce Policy Advisory Board in September 2018 by Carolyn Lee, executive director of The Manufacturing Institute, the workforce and education partner of the NAM. Timmons also serves as chairman of the board of the Institute. According to a landmark 2018 study conducted by the Institute and Deloitte, the manufacturing industry will need to fill 4.6 million jobs over the next decade, 2.4 million of which are expected to go unfilled. In July, on behalf of manufacturers at the one-year anniversary of the Pledge to America’s Workers, Timmons pledged 1.186 million new training and upskilling opportunities for manufacturing workers.
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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 more than 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.
EPA Administrator Wheeler Announces WOTUS Repeal Rule at NAM
Action Follows Advocacy by Manufacturers to Protect Water, Provide Certainty
Washington, D.C. – Environmental Protection Agency Administrator Andrew Wheeler and Assistant Secretary of the Army for Civil Works R.D. James joined National Association of Manufacturers President and CEO Jay Timmons at NAM headquarters to announce the finalization of a rule to repeal the controversial 2015 Waters of the United States rule and clear the way for a new rule to protect America’s water resources without overstepping the bounds of the law. Manufacturers sought this action from the EPA and for decades have advocated for clear rules to protect clean water and provide long-term certainty for economic growth.
Today, EPA and the Department of the Army finalized a rule to repeal the previous administration’s overreach in the federal regulation of U.S. waters and recodify the longstanding and familiar regulatory text that previously existed, said Administrator Wheeler. Today’s Step 1 action fulfills a key promise of President Trump and sets the stage for Step 2—a new WOTUS definition that will provide greater regulatory certainty for farmers, landowners, homebuilders and developers nationwide.
America is now one step closer to smart and balanced regulation that protects our nation’s precious water resources, said Timmons. Courts already declared the 2015 rule illegal, following years of litigation that included a 9-0 victory for the NAM at the Supreme Court, so manufacturers are pleased to see it officially struck from the books. The old water rule, which sought to regulate dry land, was confusing and counterproductive. Manufacturers are committed to environmental stewardship, so now we look forward to a new, more effective rule to protect clean water.
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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 more than 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org
NAM Welcomes SEC Guidance as Major Win for Manufacturers
“The SEC Has Heeded Manufacturers’ Call”
Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on the SEC’s announced guidance on proxy advisory firms:
“The SEC has heeded manufacturers’ call and has taken concrete steps that will help protect the savings of Main Street investors. For too long, investment advisers have relied on unaccountable proxy advisory firms when making decisions about Americans’ retirement investments. Proxy firms often have agendas disconnected from companies’ success or Americans’ financial security, and their reports have been found to contain errors and conflicts of interest. That’s why the NAM urged the SEC to act, and manufacturers are encouraged that the commission has heard our recommendations and is working to implement these initial reforms. We look forward to building on these first steps to achieve even more progress.”
Background
The NAM has been a leading voice in favor of SEC action to ensure proxy advisory firms work in the best interest of manufacturers and manufacturing workers. Over the past two years, the NAM has written several comment letters to the SEC urging reforms to the proxy process, supported legislation passed by the House to increase SEC oversight of proxy advisory firms and launched a six-figure ad campaign in conjunction with the U.S. Chamber of Commerce, including the website ProxyReforms.com, to highlight the issues that companies face in their interactions with proxy firms and provide a feedback portal for businesses to share their stories.
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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 more than 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.
MLC Releases Blueprint for Next Phase of Manufacturing Digitization
Washington, D.C. – The Manufacturing Leadership Council has released a new blueprint to guide manufacturers as they transition to the digital model of doing business. The blueprint, called the 2019/2020 Critical Issues Agenda, is the latest strategic guidance on digital transformation released by the MLC, a division of the National Association of Manufacturers.
The MLC’s mission is to help senior manufacturing executives and emerging leaders define and shape a better future for themselves, their organizations and the industry by focusing on the intersecting business and technology issues driving manufacturing growth. The Critical Issues Agenda encompasses the technology, organizational and leadership requirements of implementing the digital model of modern manufacturing, also known as Manufacturing 4.0.
The agenda covers five categories:
- Factories of the Future
- Establishing M4.0 Cultures: Collaborative, Innovative, Integrated and Connected
- Transformative Technologies in Manufacturing
- Next-Generation Manufacturing Leadership and the Changing Workforce
- Manufacturing 4.0 Sustainability
The 2019/2020 Critical Issues Agenda identifies opportunities for manufacturers to become more efficient, more productive and even to develop new business models and services by successfully implementing new digital technologies and practices. These include data entrepreneurship, deploying artificial intelligence, the use of digital twins and providing digital skills training.
For nearly 10 years, our Critical Issues Agenda has proven to be a comprehensive and reliable model for embracing Manufacturing 4.0, said David R. Brousell, Co-Founder of the MLC. But what’s new and important this year is the need for leaders to develop greater digital acumen and for manufacturing organizations to deal with even greater volumes of data from increasingly connected factories and plants. If manufacturers can rise to these challenges, they will go a long way to unleashing the potential of M4.0.
The agenda is the result of a unique member-driven process designed to capture and reflect the views and insights of the MLC’s 1,500-strong executive membership. The resulting agenda is then finalized and approved by the MLC’s Board of Governors.
I am delighted that the MLC’s member-driven process continues to enable us to identify the critical issues that MLC members themselves have defined as most important in their drive to transform their businesses to world-class levels of efficiency and competitiveness, said John Fleming, chairman of the MLC’s Board of Governors and former executive vice president of global manufacturing and labor affairs at Ford Motor Company. The MLC will work tirelessly to deliver thought-leading knowledge and insights around these key transformational issues in the year ahead.
Full descriptions of the 2019/2020 Critical Issues Agenda are available on the MLC’s website and in the August 2019 issue of the Manufacturing Leadership Journal.
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Founded in 2008, and now a division of the National Association of Manufacturers, the Manufacturing Leadership Council’s mission is to inspire and support manufacturing executives to achieve transformational growth for themselves, their companies and the industry at large through enlightened leadership. With more than 1,500 senior-level members from many of the world’s leading manufacturing companies, the MLC focuses on the intersection of advanced digital technologies and the business, identifying growth and improvement opportunities in the operation, organization and leadership of manufacturing enterprises as they pursue their journeys to Manufacturing 4.0.
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 more than 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.
Wheeler Announces Proposed 401 Rule at NAM’s CMA Conference
“This Proposal Is a Win for Manufacturers”
Charleston, SC – National Association of Manufacturers President and CEO Jay Timmons released the following statement after EPA Administrator Andrew Wheeler announced an EPA proposal to clarify Section 401 of the Clean Water Act at the NAM’s Council of Manufacturing Associations’ Summer Leadership Conference in Charleston, South Carolina:
“The EPA’s efforts to modernize regulations and deliver regulatory certainty have contributed to strong manufacturing growth in recent years. This proposal is a win for manufacturers that would build on that success by offering much-needed clarity to states and manufacturers alike. Too often, the vaguely worded Section 401 has been used as an excuse to block critical infrastructure and trade projects. By setting clear guidelines, the EPA is empowering manufacturers to invest in our people and communities with confidence and to work with state leaders to protect our water and environment.
“We are grateful that Administrator Wheeler chose to announce this landmark proposal at the NAM’s Council of Manufacturing Associations’ Summer Leadership Conference. It demonstrates that by working together, government and business leaders can ensure economic growth and environmental stewardship go hand-in-hand.”
Section 401 of the Clean Water Act gives states an important role to play in ensuring water quality standards are not impaired by federally permitted projects. This proposal will give state and federal partners more clearly defined roles, responsibilities and consistent expectations in line with the statute and recent court decisions. The proposed rule seeks to protect waters by strengthening the Section 401 process.
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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 more than 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.
733 10th St. NW, Suite 700 • Washington, DC 20001 • (202) 637-3000
National Association of Manufacturers Launches NAM Health Care to Address Member Health Coverage Needs
NAM Offers Association Health Plan for Employers in Select States
ANN ARBOR, MICH. – The National Association of Manufacturers announced today that it will offer an association health plan to its members, extending affordable health care to small and medium-sized manufacturing companies and member associations in approved states. In states where the association health plan is not available, the NAM will connect manufacturers with available small-group options in their state.
“This association health plan is another step in our work to make the NAM a one-stop shop for manufacturing across the United States,” said NAM President and CEO Jay Timmons. “With small and medium-sized businesses making up more than 90 percent of our membership, this plan will help provide health care and reduce uncertainty for workers and their employers across the country.”
The plan, called NAM Health Care (www.namhealthcare.com), was developed to meet manufacturers’ unique health care needs. It will offer a portfolio of health benefits options insured by UnitedHealthcare. In states where these plans are available, businesses with 2 to 99 employees will be able to choose from a variety of PPO (Preferred Provider Organization) and HSA (Health Savings Account) health plans. Members will also have access to UnitedHealthcare’s Choice Plus care provider network of more than 1.2 million physicians and care professionals and 6,500 hospitals and other care facilities nationwide. UnitedHealthcare will work with any licensed or appointed agents who want to sell NAM Health Care.
In addition, Mercer will provide the NAM’s small business members with consulting services regarding health benefits offerings and contribution strategies, marketing support to educate and enroll their employees, plan administration and compliance services. The Mercer Affinity 365+sm platform will provide members technology for quoting, enrollment and ongoing benefits administration to drive cost efficiencies and facilitate employee engagement.
Association health plans allow companies to band together to manage and purchase health care coverage that may save on annual health insurance costs by providing plans that are typically enjoyed by larger companies at a competitive price. Under NAM Health Care, eligible member companies also will have access to supplemental benefits, including dental, vision and life.
“The work that manufacturers are doing every day grows the economy and strengthens our country, and they deserve the health care they need to do that job with certainty and support,” said Timmons. “At the NAM, we are proud to help lower costs and increase competitive health coverage for the men and women who make things in America.”
NAM Health Care is quoting these plans for eligible member groups for a Sept. 1, 2019, enrollment date. To enroll in these plans, where available, interested businesses may visit www.namhealthcare.com.
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Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on the newly-announced 10 percent tariffs on $300 billion worth of Chinese goods:
“Manufacturers acknowledge that China cheats, and we were the first to call for a rules-based, enforceable trade agreement with China to end their unfair and harmful trade practices. The administration’s latest tariff action will certainly get their attention, but it also has the attention of manufacturing workers in the U.S. and their families, who are feeling the negative impact of the current tariffs and will be made even less competitive with this new tax on trade. We trust the administration has considered all of these short-term economic down-sides as they reach for long-term improvement.
“Manufacturing optimism took a substantial hit in our latest survey, driven largely by uncertainties in trade policy. If the U.S. economy slows, the world economy will follow quickly, and China’s people will suffer mightily as well. China should be willing to conclude an enforceable, bilateral trade agreement that ends the uncertainty and levels the playing field for all manufacturers.
“The world is simply not willing to let China continue to distort markets, steal intellectual property and force transfers of technology and data, among other damaging practices. It’s time for an agreement to be reached.”
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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 more than 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.
733 10th St. NW, Suite 700 • Washington, DC 20001 • (202) 637-3000
Manufacturers Welcome Senate Bill to Reauthorize Ex-Im Bank
“We Need Long-Term Certainty”
Washington, D.C. – National Association of Manufacturers Vice President of International Economic Affairs Linda Dempsey released the following statement praising introduction of legislation authored by Sens. Kevin Cramer (R-ND) and Kyrsten Sinema (D-AZ) to reauthorize the Export-Import Bank:
“We need long-term certainty that the Ex-Im Bank will be able to continue helping manufacturers of all types and sizes secure new sales overseas that support well-paying American jobs. This bipartisan legislation—through its 10-year reauthorization of the agency and fixes to its past quorum issues—will help do just that and marks an important step forward toward reauthorization. Manufacturers appreciate the work of members on both sides of the aisle to move forward a robust Ex-Im reauthorization and urge both chambers of Congress to work together to reauthorize the agency before the September 30 deadline. The more than 12.8 million men and women who make things in America are depending on it.”
Quick facts about the Ex-Im Bank:
- The agency has supported 1.7 million jobs over the past 10 years.
- On average, more than 90 percent of the Ex-Im Bank’s transactions directly support small businesses.
- The agency has generated $9.6 billion for taxpayers since 1992.
- Foreign competitors are stealing America’s competitive advantage by devoting hundreds of billions of dollars to official export credit agency financing for domestic manufacturers.
- The agency’s default rate is better than many commercial lenders and far below the 2 percent maximum rate set by Congress.
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Manufacturers Pledge Training Opportunities to 1.2 Million Workers
Timmons: “Manufacturers Proudly Make This Pledge to the American Worker”
Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons and Manufacturing Institute Executive Director Carolyn Lee will join President Donald Trump and Advisor to the President Ivanka Trump to sign the Pledge to America’s Workers, with manufacturers committing to provide training opportunities to 1,186,000 manufacturing workers over the next five years to address the industry’s skills gap crisis. Timmons, a member of the American Workforce Policy Advisory Board, will make the announcement official at a White House event marking the one-year anniversary of the initiative, which asks companies and trade groups nationwide to commit to expand programs that educate, train and reskill American workers from high school age to near retirement.
Manufacturers face a workforce crisis with more than half a million unfilled manufacturing jobs today and 2.4 million jobs that may go unfilled by 2028, said Timmons, who also serves as chairman of the board of The Institute. But manufacturers are also problem solvers and committed to being part of the solution. So today, manufacturers proudly make this pledge to the American worker: we will continue to invest in our workforce and provide 1,186,000 Americans with the opportunity to receive training and development that will enhance their skills and prepare them for the next step on their career journey. This is manufacturers demonstrating that we are keeping our promise to invest in our people. The men and women who make things in America are the backbone of this economy, and it is our commitment that America’s manufacturing workers will have the opportunity to learn, grow and take on new challenges.
We are thrilled to have NAM make this huge investment into our future and current manufacturers, said Ivanka Trump. By creating pathways for all Americans, regardless of age or background, to acquire the skills needed to secure and retain high-paying jobs, we can maintain our strong competitive edge and ensure inclusive growth and opportunity in our booming economy.
The 509,000 open manufacturing jobs reported in May marks an all-time high for the industry. According to a 2018 skills gap study by the Institute and Deloitte, as many as 2.4 million manufacturing jobs will go unfilled by 2028. The most recent Manufacturers’ Outlook Survey also found that the inability to find skilled workers remains the single greatest challenge facing manufacturers today and for the past six quarters.
With a record number of job openings right now—and many more expected over the next decade—the future of the manufacturing industry will be tied to the future of its workforce, said Lee. That’s why we are committed to supporting the manufacturing workforce of today and growing the manufacturing workforce of tomorrow. Our sector’s pledge over the next five years to provide training opportunities to more than a million men and women who make things in America will help keep manufacturing competitive and secure manufacturing’s mantle of leadership well into the future.
Ahead of its 125th anniversary and the 2020 elections, the NAM recently announced a member-driven campaign to raise at least $10 million for the newly established “Creators Wanted Fund” to inspire and drive more Americans to pursue careers in modern manufacturing. The NAM and The Institute will bring a “Creators Wanted” mobile tour of modern manufacturing to parents and students in 20 to 25 states over 18 weeks, unveil a year-long nationwide digital campaign to recruit new talent to the industry and host a culminating “Making America” Festival in Cincinnati, Ohio, in September 2020 featuring interactive exhibits, thought leadership forums and entertainment to showcase the future of modern manufacturing in America. The campaign will also fuel The Institute’s workforce programs and help build the next generation of solutions to grow the manufacturing workforce. Learn more about the campaign here.
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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 more than 12.8 million men and women, contributes $2.38 trillion to the U.S. economy annually, has the largest economic multiplier of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.
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The Manufacturing Institute is the education and workforce partner of the National Association of Manufacturers. We drive programs and research to promote modern manufacturing and jumpstart new approaches to growing manufacturing talent. For more information, please visit www.themanufacturinginstitute.org.