In the first 100 days of the Trump administration, manufacturers have seen many actions from President Trump to provide regulatory relief. Now, there’s good news coming from the Senate as well. Senators Rob Portman (R-OH) and Heidi Heitkamp (D-ND) have released the Regulatory Accountability Act, which, in their words is “designed to make federal regulations smarter and more effective so they better support businesses, families, and jobs by modernizing the federal regulatory process that hasn’t been significantly reformed in 70 years.” Read More
The latest jobs numbers from the Bureau of Labor Statistics are in, and while the broader jobs numbers increased, jobs in the manufacturing sector fell for the third straight month, declining by 9,000—losing 62,000 workers year to date. Not only does this suggest that manufacturers continue to exercise caution in their business practices, but it points to the fact that continued challenges, including the failure to move on critical pro-manufacturing policies in Washington, are having a severe impact on the nation’s most innovative sector.
Unfortunately, throughout this election cycle, isolationist and incendiary rhetoric have continued to harm manufacturing workers and their families by perpetuating myths about pro-growth policies like free trade. For their part, manufacturers will continue to stress the policies that will enable faster economic growth and enhance the sector’s overall global competitiveness.
National security should always be a top concern of our elected leaders, but it should never be an excuse to marginalize those who are different or to abandon our country’s heritage as a nation of immigrants. Yet, that is exactly what Donald Trump has done over the past year, fomenting hostility toward immigrants generally—and Mexican and Muslim immigrants specifically—by blaming them for a range of perceived problems.
On Monday, he continued his pattern of stoking peoples’ fears about immigration, and, among other things, called for “extreme vetting.” It is his policies and rhetoric that are in need of some “extreme vetting.”
We have an obligation to fix and reform our nation’s immigration system, but that does not mean following the dangerous policies Donald Trump is proposing. The answer is not building a wall. The answer is not imposing a religious test.
Manufacturers know that immigration strengthens our country and our workplaces. As the National Association of Manufacturers (NAM) outlined in our “Competing to Win” policy agenda, “Comprehensive immigration reform holds the power to transform not only manufacturing but also our nation and economy to new heights. Unfortunately, political inertia has held us back from achieving progress and needed reforms.”
The current system hurts our competitiveness as foreign-born talent, often educated in the United States, moves abroad to work, manufacture, innovate and compete against us.
The current system is denying people the opportunity to live up to their potential—and move our country forward in the process.
America’s economic frustrations are real, and concerns about national security are valid. However, shameless immigrant bashing and promises to wall off our country—literally and metaphorically—from the rest of the world will make us weaker.
As NAM President and CEO Jay Timmons has said, “We attract the best and the brightest, the most industrious, to our shores.” As a country, let us figure out how to empower immigrants—those who are here already and those who still yearn for freedom—to contribute to America’s success.
It has been just over three weeks since Sen. Tim Kaine (D-VA) became Vice Presidential Candidate Kaine. And in that short amount of time, he has, to the disappointment of manufacturers, changed positions on two of our most important issues: energy and trade.
As a senator, manufacturers could often count on Sen. Kaine to be a reasonable voice on energy and environmental policy issues. On energy exports, he was in line with manufacturers, cosponsoring legislation in 2013 and 2015 to improve the permitting process for liquefied natural gas export terminals—projects that will drive billions of dollars in investments in manufacturing and other industrial sectors. On opening access to oil and gas resources off the Atlantic Coast, Sen. Kaine once again helped lead the charge, cosponsoring legislation in 2013 and again in 2015 directing the Department of Interior to include the Atlantic Coast in its energy lease sales.
Vice Presidential Candidate Kaine, on the other hand, is staking out a starkly different position on energy development. He opposes unlocking oil and gas resources off the Atlantic Coast. This abrupt shift on energy policy raises some red flags for manufacturers, consumers of one-third of the nation’s energy. An NAM study performed by IHS Economics forecasts that over the next decade, total demand for natural gas will increase by 40 percent, driven in large part by increased demand from manufacturers.
On the Trans-Pacific Partnership (TPP), we are also seeing a tale of two Kaines. While nothing about the text of the TPP has changed since the 12-country trade deal was signed in February, Sen. Kaine’s position has appeared to shift significantly. In July, he made several positive statements on the TPP, noting that there “was much in it to like,” including upgraded labor, environmental and intellectual property standards. Less than a week later, however, Vice Presidential Candidate Kaine completely disavowed the TPP. Sen. Kaine’s original statements on the TPP, not his newfound opposition, are in line with the type of trade agenda that will grow U.S. manufacturing. The United States is losing in the global competition to open markets, as other countries have negotiated hundreds of trade agreements that exclude and disadvantage manufacturers in the United States. Manufacturers need trade agreements like the TPP to eliminate foreign trade barriers and upgrade foreign standards to level the playing field and boost U.S. competitiveness globally. Standing on the global sidelines just means the United States will fall further and further behind competitors, such as China, Mexico, Germany and others.
If manufacturers are going to continue driving economic growth over the next four years and beyond, we need access to all forms of energy and access to more markets overseas. So we need leaders whose policy positions are more like Sen. Kaine’s than Vice Presidential Candidate Kaine’s.
Today, the Democratic Party adopted a platform that would drive many manufacturers out of business and many Americans out of their jobs. We hope this statement of party principles is not a signal that Sec. Clinton will follow the extreme voices in her party and copy a playbook that will punish, instead of empower, manufacturers in the United States.
Thankfully, the Democratic platform avoids the divisive attacks on individual liberty and equal opportunity that distracted the authors of the Republican Party platform. The Democrats also included workforce development and immigration policies that are reflected in our manufacturing policy agenda, “Competing to Win.”
On almost every other major manufacturing priority, however, the platform is out of touch with the reality of what manufacturing families are facing. On taxes, regulations, labor, energy and health care, the Democratic Party is not only advocating the continuation of many of President Obama’s antigrowth policies but also doubling down on the belief that government, not the private sector, creates growth and prosperity.
On trade, the protectionist rhetoric is alarming. The failure to support the Trans-Pacific Partnership sells American workers short. Manufacturers in the United States can compete and win around the world—if we have a level playing field with access to the 95 percent of the world’s customers who live overseas.
As an industry, we recognize some positives in this platform. However, these positives are overwhelmed by one job-killing proposal after another.
Based on news reports, today the Republican Party endorsed many key policies that will make manufacturing in the United States greater. The National Association of Manufacturers advanced many of the tax, regulatory, energy, labor and health care reform policies adopted by the party, and we applaud their inclusion in the platform.
At the same time, manufacturers are disappointed the party allowed divisive issues to obscure the importance of policies that will promote growth and opportunity for all Americans. The platform represents a missed opportunity to promote all pillars of American exceptionalism: free enterprise, competitiveness, individual liberty and equal opportunity. Some statements on trade, the Trans-Pacific Partnership, immigration policy, individual liberty and equal opportunity leave a lot to be desired. These misguided statements do not just hold back the party, but also our country.
If our leaders want to strengthen our country, bolster manufacturing and keep America exceptional, manufacturers have provided the road map to do just that and unify the country around mainstream solutions: “Competing to Win.”
As Members of the 114th Congress descend on Washington for orientation, and the 113th Congress convenes for the upcoming lame duck session, manufacturers stand ready to work with our leaders to advance policies that will enable us to continue to grow and create jobs. Manufacturers believe that now is the time to set aside the differences that have resulted in gridlock, and focus on the pro-growth policies that brought voters to the polls. Simply put, it is time to govern and grow. Read More
Today, manufacturing thought-leaders, including many NAM-member company CEOs, delivered the Advanced Manufacturing Partnership 2.0 report to the Obama Administration. The report includes recommendations that recognize the importance of advanced technology to manufacturing products and processes as well as the necessity of a skilled workforce to sustain the manufacturing comeback. Read More
Increasing LNG exports will benefit manufacturers, their workers and the entire American economy. Arguments by opponents to free trade like Sen. Ed Markey (D-MA) that energy exports would do otherwise have been disproven in studies by every credible economist in the country. Again and again, experts find that granting licenses to export LNG would result in a net economic gain, including the official study done by the Department of Energy.
Just last week, NERA Economic Consulting, the firm that performed the analysis for the Department of Energy, updated its original study with the most current data available. It found that “LNG exports provide net economic benefits in all the scenarios investigated, and the greater the level of exports, the greater the benefits.” NERA concluded, “There is no support for the concern that LNG exports, even in the unlimited export case, will obstruct a chemicals or manufacturing renaissance in the United States.”
We are, indeed, in the midst of a manufacturing comeback, fueled by our abundant energy resources. Exporting LNG is a critical part of this comeback, with each $10 billion export facility creating manufacturing jobs across the supply chain during construction and operation. In addition, experts have found not only will we have enough natural gas at stable prices to fuel domestic manufacturing while also supporting LNG exports, but we will also still come out on top.
Furthermore, Sen. Markey’s proposal to restrict U.S. exports is contrary to the international rules that the United States helped establish some 40 years ago. Export restrictions, like those on LNG, are prohibited by World Trade Organization (WTO) rules, and according to a recent report by former WTO Appellate Body Chairman James Bacchus, these delays and restrictions may be running afoul of our treaty obligations.
A New York Times editorial recently made a strong point about the importance of energy in fostering the United States’ national security. We are deeply concerned about recent events overseas as manufacturers have employees across the globe, including in Eastern Europe. We are working closely with policymakers on both sides of the aisle to safeguard manufacturing employees and manufacturers’ investments around the world.
Getting our energy policy right is not just a domestic imperative, but it also has important national security implications. Like the New York Times and many policymakers on Capitol Hill, the NAM believes that it is in our national interest—and in the interest of our allies—that the United States immediately accelerates the review process of pending LNG export terminal applications. With an expedited review, the Administration would send a strong signal to the Russian Federation, our NATO allies, our trading partners and the rest of the world that energy exports matter and are a critical tool of American foreign policy.
Aric Newhouse is Senior Vice President of Policy and Government Relations for the National Association of Manufacturers.
Manufacturers know firsthand the frustrations in dealing with the United States’ antiquated, flawed, and ultimately uncompetitive tax system. While it’s good news that President Obama is focusing on tax issues, solutions that pick winners and losers and increases the tax burden on businesses don’t benefit manufacturers. Tax reform must account for the nearly 70 percent of manufacturers pay taxes at the individual rate. Failing to include these important players in our job creation engine undermines the very point of tax reform – increased growth and competitiveness.
Within the President’s proposal, there are strong building blocks toward the growth American’s have been seeking since the recession. Investments in infrastructure, education, and innovation are fundamental to improving competitiveness and delivering the next generation workforce that will lead the global economy. If we don’t provide for those investments we will find our nation falling behind our global competitors.
In a letter to Senators Max Baucus (D-MT) and Orrin Hatch (R-UT), the leaders of the Senate Finance Committee, manufacturers laid out our top priorities for tax reform. These include a lower corporate tax rate, which the President rightly acknowledges is holding U.S. competitiveness back, a lower rate for small manufacturers (critical to job creation and economic growth), a globally competitive international tax system and provisions that incentivizes R&D and investment.
These priorities are the fundamentals of successful tax reform centered around economic growth and competitiveness. We look forward to working with the Administration to achieve a positive tax climate that fosters global competitiveness for all manufacturers in the U.S.
Aric Newhouse is the Senior Vice President for Policy and Government Relations for the National Association of Manufacturers