Supreme Court Decision is Game-Changing Transformation for Legal and Regulatory Landscape for Manufacturers
Washington, D.C. – Today, the United States Supreme Court overruled the Chevron doctrine—a requirement that federal courts defer to an administrative agency’s interpretation of an ambiguous statute—that had proven unworkable and incoherent.
“The legal and regulatory landscape has transformed in the blink of an eye. Manufacturers will not waste a moment in seizing this opportunity—an opportunity that we have never seen before—to leverage this decision to rein in the regulations that are holding back manufacturers from improving lives,” said National Association of Manufacturers President and CEO Jay Timmons. “The NAM Legal Center and our best-in-class advocacy team will be on the field, leveraging this decision and the new tools it gives us, to fight back new regulations we are facing today as well as whatever may come our way in the next administration. For anyone who wants to see manufacturing grow and succeed in America, today heralds the possibility for a much brighter future.”
“Today’s ruling is a game changer for manufacturers as Chevron was at least partly to blame for the unpredictability and overreach that have become synonymous with the modern regulatory state,” said NAM Chief Legal Officer Linda Kelly. “We are hopeful that this marks the end of an overbearing regulatory system that had become complex, and compliance in many cases that was contradictory from agency to agency. For the past 40 years, Chevron has tipped the scales in favor of unelected officials and against the regulated public. Now the onus is on Congress to provide clear guardrails and guidelines in its intent to ensure that laws are implemented in a manner that achieves their goal. Manufacturers are eager to work with lawmakers to develop policies that promote innovation, job creation, economic growth and improved quality of life for all Americans.”
“Manufacturers have been the subject of a regulatory onslaught, with agencies’ far-reaching decisions affecting companies of all sizes,” said NAM Managing Vice President of Policy Chris Netram. “The EPA, SEC and DOL—the aggressive nature of rulemaking and enforcement actions that exceed authority come from the alphabet soup of regulators. The NAM has been successful in fighting key rules in court, and today’s decision gives us the ability to challenge even more actions while ensuring future agency actions do not exceed the authority mandated by Congress.”
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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 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.
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Manufacturers Victorious Over SEC in Fifth Circuit Proxy Firm Case
Decision confirms that federal agencies are bound by the rule of law, even as administrations change
Washington, D.C.–Yesterday, the U.S. Court of Appeals for the Fifth Circuit ruled in the National Association of Manufacturers’ favor in NAM v. SEC, overturning the Securities and Exchange Commission’s rescission of critical provisions of its 2020 proxy advisory firm rule. NAM Chief Legal Officer Linda Kelly released the following statement on the ruling:
“This decision confirms that federal agencies are bound by the rule of law, even as administrations change. Manufacturers depend on the SEC to be a steady regulatory hand at the wheel of America’s world-leading capital markets—an obligation the agency abandoned in rescinding the commonsense, compromise 2020 proxy advisory firm rule.
“The NAM Legal Center is proud to have secured this critical victory, which strikes down the SEC’s unlawful about-face and preserves important provisions from the 2020 rule designed to protect manufacturers and Main Street investors from proxy firms’ outsized influence. We will continue to fight in court to uphold the 2020 rule—and to work with the SEC and with Congress to ensure appropriate oversight of these powerful actors.”
Background:
- The NAM has long called for increased oversight of proxy advisory firms. In July 2020, the SEC issued final regulations to enhance transparency and accountability for proxy firms, a move NAM President Jay Timmons called a “long-sought, major win for the industry and millions of manufacturing workers.” In October 2020, the NAM filed a motion to intervene in ISS v. SEC (ISS’s attempt to overturn the rule) in support of these reforms—a case that is still ongoing in the U.S. Court of Appeals for the D.C. Circuit.
- In June 2021, the SEC announced that it was suspending enforcement of the 2020 rule; the NAM filed suit against the SEC in October 2021 challenging this unlawful suspension. The U.S. District Court for the Western District of Texas ruled in the NAM’s favor in that case, vacating the SEC’s suspension of the rule.
- In July 2022, the SEC rescinded critical portions of the 2020 rule, a move that Timmons said “epitomizes ‘arbitrary and capricious’ rulemaking”; the NAM later filed suit to challenge the rescission. The Fifth Circuit decision overturns the SEC’s 2022 rescission of important provisions that increased transparency into proxy firms’ recommendations.
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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 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.
Manufacturers to Congress: Stop Devastating Tax Increases
Jobs, innovation, investments in America all at risk if tax provisions expire at the end of 2025
Washington, D.C. – The National Association of Manufacturers released its Manufacturers’ Outlook Survey for the second quarter of 2024, which highlights the immediate need for Congress to take action to prevent tax increases that will limit the industry’s ability to create jobs, support their communities and compete in the global economy.
“When Congress passed tax reform, manufacturers in the U.S. invested in their workers and businesses at a level that had never before been seen. In 2018, we experienced the best year for job creation in 21 years and the best year for wage growth in 15,” said NAM President and CEO Jay Timmons. “Tax reform was rocket fuel for our industry, but our latest Manufacturers’ Outlook Survey illustrates our industry’s deep concerns about the reversal of these pro-growth incentives. If Congress does not take action, job creation, wage growth and investments in communities—in short, America’s manufacturing edge—will be at risk, as well as our country’s ability to attract meaningful investments into our economy. The House, the Senate and the White House need to come together to reinstate the critical provisions that have already expired or begun phasing out, and to stand strong to protect those set to expire at the end of 2025.”
Background:
- The NAM released “What’s At Stake: Manufacturers Face Damaging Tax Increases in 2025,” a policy explainer which illustrates the consequences of allowing the pro-growth policies and rates from the Tax Cuts and Jobs Act to expire.
- The “Manufacturing Wins” issue page on NAM.org provides a hub for 2025 tax content, as well as opportunities for manufacturers to share their stories directly with Congress and the administration.
Key Survey Findings:
- If Congress does not act to prevent tax increases, survey respondents say that increased taxes will limit capital investment opportunities (73.0%), decrease job creation (65.4%), increase difficulty competing globally (52.6%) and reduce R&D spending (51.7%).
- Nearly 94% of respondents agree that Congress should act before the end of 2025 to prevent scheduled tax increases on manufacturers.
- In Q2, 71.9% of respondents felt either somewhat or very positive about their company’s outlook, the seventh straight reading below the moving average (74.8%).
- More than 67% of manufacturers cited the inability to attract and retain employees as their top primary challenge, followed by rising health care costs (66.7%), an unfavorable business climate (59.6%) and a weaker domestic economy (56.8%).
The NAM releases these 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 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.
Senior Sinema Advisor Chris Phalen to Lead NAM’s Energy and Environment Policy Team
Washington, D.C. – The National Association of Manufacturers announced that Chris Phalen, most recently a senior policy advisor to Sen. Kyrsten Sinema (I-AZ), is joining the NAM as vice president of domestic policy:
“As the NAM continues to be at the forefront of energy policy debates before Congress and federal agencies, Chris’ depth of experience and record of accomplishments will help us further stand out and influence outcomes in support of an all-of-the-above energy policy,” said NAM President and CEO Jay Timmons. “Manufacturers are facing a political war on energy. Permitting reform, securing critical mineral supply chains and regulatory barriers slowing the clean energy transition are just some of the defining issues impacting our industry’s ability to create well-paying jobs, as well as our nation’s energy security. Chris will help us steer policymakers in the right direction.”
Sen. Sinema has been a key figure in negotiating solutions to manufacturing priorities, and as her advisor, Phalen was a leader in negotiating and implementing critical energy policies and in writing the permitting reform provisions in the Fiscal Responsibility Act and key sections of the Infrastructure Investment and Jobs Act, including all provisions on energy and mining. Phalen brings a record of active engagement with key agencies, including the Environmental Protection Agency, the Department of Energy, the Department of the Interior, the Department of Agriculture, the White House Council on Environmental Quality, the Federal Energy Regulatory Commission and the Federal Permitting Improvement Steering Council. Phalen previously worked for leading energy companies, including Chevron and the Rio Tinto Group.
Timmons added, “Manufacturers are leading the global effort to fight climate change and develop the technologies needed to achieve climate goals. With Chris’ keen insight into these important policy discussions, the NAM will become an even more effective voice for the 13 million people who make things in America.”
Phalen will report to NAM Managing Vice President of Policy Chris Netram and work closely with NAM Executive Vice President Erin Streeter. His policy portfolio will include sustainability, climate, permitting reform, labor, transportation and infrastructure, and he will work alongside NAM Vice President of Domestic Policy Charles Crain and NAM Vice President of International Policy Andrea Durkin.
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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 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.
Manufacturers Launch “Manufacturing Wins” Campaign to Prevent Devastating Tax Increases in 2025
Washington, D.C. – The National Association of Manufacturers has launched an industry-wide effort to educate Congress and the administration on the need for urgent action to preserve the pro-growth 2017 tax reform provisions set to expire at the end of 2025.
NAM President and CEO Jay Timmons, Ketchie President and Owner and NAM Small and Medium Manufacturers Group Chair Courtney Silver and Husco President and CEO and NAM Executive Committee member Austin Ramirez released the following statements:
“The transformative impact of 2017 tax reform cannot be overstated. Tax reform was rocket fuel, igniting a resurgence in the manufacturing sector. It put into place competitive policies that fueled record job creation, wage growth, capital investment and innovation,” said Timmons. “However, if Congress does not act, next year’s expiration of these powerful force multipliers will undo much of the progress made by our industry and America. Manufacturers are putting a stake in the ground and warning policymakers to stand up against any tax increases on the people who make things in America.”
“If Congress does not act before the end of 2025, manufacturers will be competing with one hand tied behind our back. Manufacturers across the country promised to take tax reform’s pro-growth provisions and ensure they had a direct positive impact on American lives,” said Silver. “We kept our promises. We created jobs, we purchased equipment and we gave back to our communities. I urge Congress to build on the promise of tax reform to enable manufacturers to do even more.”
“The stakes are high—the economic damage will be severe if Congress decides that it’s time to end tax reform,” said Ramirez. “Allowing tax reform to sunset means tax hikes on manufacturers and manufacturing families, which will slow our sector’s growth and prevent us from investing in job-creating projects that support communities across the country and boost our economy.”
Background:
Critical tax reform provisions are set to expire at the end of 2025, resulting in significant tax increases for virtually all manufacturers.
- A recent NAM survey found that 94% of manufacturers believe Congress should act before the end of 2025 to prevent these tax increases.
- If Congress fails to act, 73% of manufacturers would be forced to limit capital investments, 65% would have to reduce job creation and 52% would spend less on R&D, among other damaging impacts.
- Additionally, 93% of pass-through manufacturers said that the loss of the pass-through deduction, which ensures a level-playing field for small businesses that pay tax at individual tax rates, would harm their ability to grow, create jobs and invest in their business.
- Released by the NAM today, What’s at Stake: Manufacturers Face Devastating Tax Increases in 2025, explores the pro-growth policies from the Tax Cuts and Jobs Act and explains why allowing them to expire would damage the manufacturing economy.
- The “Manufacturing Wins” issue page on NAM.org provides a hub for 2025 tax content as well as opportunities for manufacturers to share their stories directly with Congress and the administration.
- The NAM submitted a letter today to House Ways and Means Committee Chairman Jason Smith (R-MO) and Ranking Member Richard Neal (D-MA) and Senate Finance Committee Chairman Ron Wyden (D-OR) and Ranking Member Mike Crapo (R-ID) outlining manufacturers’ tax priorities for 2025.
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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 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.
Manufacturers Mourn Passing of Former Association Leader Dirk Van Dongen
Washington, D.C. – Following the passing of Dirk Van Dongen, the former CEO of the National Association of Wholesaler-Distributors, National Association of Manufacturers President and CEO Jay Timmons released the following statement:
“Dirk Van Dongen was a Washington legend. For nearly half a century, he led the NAW to be a powerful convener of the business community, advocating for policies that made manufacturing in America more competitive in a global economy. But he was far more than the leader of a single association. He was revered as a respected dean of the association CEO community. I feel enormously grateful to have considered him a mentor and friend and to have received a few coveted invitations to join him at his table at his favorite D.C. bistro, Equinox.
“Dirk believed wholeheartedly in the power of free enterprise to make life better for everyone. He fought for sound tax policy and many shared priorities to enhance the competitiveness of manufacturing, as part of a larger mission to grow our industry and the U.S. economy. His ability to work with both sides of the aisle and get things done distinguished him as a business leader. Over and over again, Dirk proved why associations are indispensable voices in our society.
“Dirk’s best life lesson that he imparted effortlessly was to be honest, direct, upfront and authentic. You never had to wonder where Dirk stood or what he believed was the right course of action.
“Our thoughts and prayers are with his beloved wife, Maryann, and his daughters Rachel and Marisa during this difficult time.”
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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 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.
Manufacturers Challenge Infeasible, Costly Water Standard
The NAM Legal Center and ACC File Suit to Block the Rule
Washington, D.C. – Today, the National Association of Manufacturers, joined by the American Chemistry Council, filed a petition in the D.C. Circuit Court of Appeals challenging the Environmental Protection Agency’s final rule setting individual standards for six per- and polyfluoroalkyl substances, also known as PFAS, in municipal water systems.
“Manufacturers support commonsense regulations on PFAS that recognize the criticality of these substances across several industrial sectors—for many of these critical applications, there are no viable alternatives,” said NAM Chief Legal Officer Linda Kelly. “What the EPA did, however, was to bulldoze ahead with standards that set an acceptable level for PFAS at near zero—which is wholly infeasible and threatens these vital substances’ continued application in manufacturing processes. In doing so, the EPA relied on a deeply flawed cost-benefit analysis and failed to follow the clear-cut statutory procedures required by the Safe Drinking Water Act, among other substantive and procedural deficiencies. The NAM Legal Center is filing suit to overturn this unachievable standard and protect manufacturing operations and jobs across the country.”
PFAS are a diverse group of chemicals essential to modern life, including in the transformers used to power electric grids; in the semiconductors and solar components needed for clean energy transition; and in the aircraft, munitions, fire suppression systems and communication devices required for national security.
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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 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.
Manufacturers Look to Sheinbaum to Bolster U.S.–Mexico Trade Ties
Washington, D.C. – Following projections that Mexico has elected Claudia Sheinbaum Pardo as its next president, National Association of Manufacturers President and CEO Jay Timmons released the following statement:
“Today is a historic day for Mexico, and manufacturers across the U.S. are hopeful that President-elect Sheinbaum will continue to work to strengthen our countries’ mutually beneficial trading relationship. Mexico is the U.S.’s second-largest national trading partner, and we look to President-elect Sheinbaum to uphold the rules set forward in the United States–Mexico–Canada Agreement. The USMCA has proven itself as a force for growth, broadening manufacturers’ access to North American markets, leveling the playing field and modernizing rules to promote fair competition, particularly in the 21st-century digital economy.
“We look forward to working with the Sheinbaum administration to ensure continuity under the USMCA and address our shared challenges at the border.”
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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 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.
Manufacturers Challenge OSHA’s Unlawful Walkaround Rule
The NAM Legal Center Joins Industry Groups Seeking to Block Rule
Washington, D.C. – Today, the National Association of Manufacturers, joined by other business groups, filed suit in the Western District of Texas to challenge the Occupational Safety and Health Administration’s final rule amending the Worker Walkaround Representative Designation Process (Walkaround Rule).
The Walkaround Rule will allow an unlimited number of third parties, such as union representatives, plaintiffs’ attorneys and community organizers, to accompany OSHA inspectors on safety inspections.
“OSHA’s rule does nothing to advance its mission of improving workplace safety,” said NAM Chief Legal Officer Linda Kelly. “This rule is well beyond the scope of OSHA’s authority, and it infringes on manufacturers’ right to exclude others from their property, threatens new liabilities and risks compromising manufacturers’ intellectual property. The NAM Legal Center is filing suit to prevent this harm.”
Background:
- For more than 50 years, OSHA’s walkaround regulation authorized only an employee of an employer to serve as another employee’s representative during an OSHA inspection.
- In 2013, then-Deputy Assistant Labor Secretary Richard Fairfax issued a letter—commonly referred to as the Fairfax Memo or Sallman Letter—to a member of the Service Workers International Union, which stated that a nonemployee affiliated with a union or community organization could serve as a representative of employees during an OSHA inspection at a worksite without a collective bargaining agreement.
- In 2017, a trade group challenged the Fairfax Memo as unlawfully issued outside the notice-and-comment process and inconsistent with OSHA’s regulation that authorized only an employee of an employer to serve as another employee’s representative during an OSHA inspection.
- A federal court in Texas agreed with the trade group, and the Trump administration later rescinded the memo.
- In August 2023, OSHA released the proposed Walkaround Rule, and the NAM submitted comments urging OSHA to withdraw it.
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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 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.
USTR’s WTO Lead Andrea Durkin to Lead NAM International Policy Team
NAM Advocates Global Trade Strategy That Will Open New Markets with Our Allies and Create Vast Opportunities for Manufacturers in the U.S.
Washington, D.C. – The National Association of Manufacturers announced that former Assistant U.S. Trade Representative for WTO and Multilateral Affairs Andrea Durkin is joining the NAM as the new vice president of international policy.
“Andrea brings a wealth of expertise to the job, with more than three decades of service in both the public and private sectors. As a leader in international trade negotiations, her deep understanding of international policy will enhance the NAM’s strategic objectives significantly as we continue to build off of successful engagements with our counterparts across Europe and the North American continent,” said NAM President and CEO Jay Timmons.
“As manufacturers in America look for new ways to reach global markets and the 95% of customers that live outside the borders of the United States, Andrea is set to lead an ambitious expansion of the NAM’s international policy operation. She will work to uphold our commitment to shaping a global trade strategy that opens new markets with our allies and trading partners around the world, which, in turn, will create vast opportunities for manufacturers in the U.S. to create well-paying jobs, innovate and achieve new milestones in improving the quality of life for everyone.”
Durkin is one of the nation’s foremost experts on international policy, drawing from decades of experience serving in Democratic and Republican administrations. As a senior executive in the Office of the President, she led trade negotiations and U.S. policy at the WTO and was responsible for committees on industrial subsidies, technical barriers to trade, government procurement, trade facilitation, customs and others. She was also the U.S. senior official for the Organization for Economic Co-operation and Development Trade Committee, G7 and G20 trade tracks.
In years prior, Durkin served in the U.S. Department of Commerce’s International Trade Administration, where she led a variety of negotiations, including free trade agreements in the Western Hemisphere, sectoral initiatives in the Asia-Pacific Economic Cooperation and trade-related aspects of United Nations’ multilateral environment and public health agreements.
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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 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.