This week, the full Senate began to debate comprehensive immigration reform.  It will not be an easy endeavor, but we need to fix our broken immigration system. For too long, manufacturers in all sectors have struggled to hire the talent necessary to remain globally competitive. We have a chance to correct that problem in the form of S. 744, The Border Security, Economic Opportunity, and Immigration Modernization Act, but it is going to take leadership for Senators to vote in favor of a momentous change.

Earlier today, the NAM hosted a dual-city town hall discussion in Washington, D.C., and Minneapolis, Minn. to focus attention on the importance of comprehensive immigration reform for manufacturers and what’s at stake for America in the weeks ahead. “Comprehensive immigration reform will strengthen our economic and national security.  And, it’s the right thing to do,” NAM President and CEO Jay Timmons and Cargill Chairman and CEO Gregory Page said in a joint statement.  “Yet, the success of comprehensive reform is not ensured. If it fails, it may be years before we have another opportunity. As the Senate takes up its bill this week, right now is our best shot to draw attention to the issue.”

Representative Paul Ryan was a panelist at the event stating “immigration reform will help us get the labor force we need for economic growth.” He also said he believes the House can pass immigration reform legislation.

Senator Kelly Ayotte (R-NH) recently announced she will support the comprehensive immigration reform legislation and the NAM would like to commend her for her thoughtful decision. Gerry Letendre, CEO of Diamond Casting, a New Hampshire based small business, agrees and praised Senator Ayotte for recognizing that immigration reform is about innovation and job creation for Americans. “Immigration reform is an important step towards creating the jobs we need to be competitive” said Letendre. “I strongly support Senator Ayotte’s commitment to reform and job creation in New Hampshire.”

The NAM believe immigration reform can happen and manufacturers are determined to make it a reality.

Today, Congressman Darrell Issa (R-CA) introduced the “Supplying Knowledge-Based Immigrants and Lifting Levels of STEM (SKILLS) Visas Act’’ , which is another step on immigration reform efforts in the House of Representatives.  For years, the NAM has maintained that the Immigration system is broken and manufacturers need access to highly-skilled foreign born talent.

The existing immigration system  is hindering research, development, growth and job creation. The SKILLS Visas Act would raise the number of H-1B visas to 155,000 per year and also increase green cards for advanced degree holders in the STEM fields. In addition, it includes a STEM fund to provide for additional opportunities in the domestic STEM pipeline -a priority of utmost importance to NAM members. The NAM appreciates the work of the House Judiciary Committee, particularly Chairman Bob Goodlatte (R-VA) and Representative Issa .

We look forward to working then them in the coming weeks on this as well as other important legislation to modernize our immigration system.

There are many flaws with the President’s budget, but on a positive note is the commitment to career and technical education. Not everyone needs to attain a four-year degree to have a successful career. Obtaining a nationally-portable, industry-recognized post-secondary credential will allow for potential workers to know they are being trained in the skills that employers need today. The President’s budget specifically addresses reforming career and technical education to “better align program with the needs of employers…to ensure that graduates are poised to succeed.” This is a philosophically important point that is of utmost importance to manufacturers. Manufacturers need a strong technical workforce and we are pleased that the administration values this goal.

The budget also asks for $8 million for a Community College fund to support partnerships with business. Manufacturers are already on the ground across the country looking to align community college curriculum to industry-recognized credentials. So, while we appreciate this effort, we are also concerned that there is not more of an emphasis on making existing workforce training programs more efficient by eliminating the bureaucracy and streamlining existing programs, such as the Workforce Investment Act. Our goals are the same but in some cases our process diverges. We look forward to working with the administration on training initiatives that focus on jobs and skills in-demand today as well as training the workforce for the future.

On April 5, five days after the application process opened, U.S. Citizenship and Immigration Services announced they had received enough applications to exhaust the number of H1-B visas for FY 2014. As we noted last week, this means that any company that has not already applied for a visa to hire a highly-skilled foreign-born candidate will not be able to hire that talented individual this year. In addition, because the number of applications exceeded the limit, anyone who applied before April 5 will be subject to a random lottery for the available visas. This is a crisis. The economy is barely growing and the US will fall behind unless companies are allowed to hire and retain employees in the US under an expanded visa program.

Increased H1-B numbers and a reformed green card system will assist in growing the economy and creating jobs for Americans. Legislation, such as the bi-partisan “I-Squared Act,” introduced by Senators Hatch, Klobuchar, Rubio and Coons, positively addresses these problems by increasing the H1-B cap and reshaping the green card system. The NAM sent a letter in support of this legislation and also submitted a letter with nearly 60 companies and organizations that see the need for reform.  The current system creates an uncertainty that is not functional for employers and will drive job creation out of the US. This mad dash to apply for visas needs to end and in its place should be a process that allows for thoughtful and dependable workforce planning.  Congress should look to the I-Squared bill when drafting a comprehensive reform package.

Today, Senators Hagan (D-NC) and Heller (R-NV), with additional support from Senator Donnelly (D-IN), introduced the AMERICA Works Act, which will help in addressing the severe skills gap facing US manufacturers. Recent data has shown that approximately 600,000 jobs may be going unfilled due to the lack of a skilled workforce, hindering economic growth and innovation in the U.S. The America Works Act begins to address this problem by focusing existing federal training dollars towards nationally-portable, industry recognized certifications within the Workforce Investment Act, Perkins and TAA. Industry-based certifications let potential workers know exactly what skills are in demand in the private sector, thus using these programs more efficiently.

Today’s modern manufacturing requires a skills level more advanced than in previous generations. Sandy Westlund-Deenihan, CEO of Quality Float Works, an NAM member company, uses industry-recognized certifications to ensure she is hiring the right person.   “Our manufacturing process is not what it was 25 years ago, it requires more advanced skills to deliver a high-quality product.  Hiring someone with a nationally-portable, industry recognized certification allows my company to be secure in the knowledge that we are hiring someone with the skills necessary to maintain that level of quality.”

The Senators should be commended for their leadership on an issue of utmost importance to manufacturers. Currently, federal training programs can be overly-bureaucratic and often frustrating to employers. Setting a clear path for the most valuable training helps employers know they are hiring the right person, helps potential employees know exactly what skills are necessary for success, and it makes more efficient use of existing Federal resources. The NAM is very excited to support this important piece of legislation.

Christine Scullion is director of human resources policy, National Association of Manufacturers.

Congressman Lou Barletta (R-PA) and Congressman Brad Schneider (D-IL) introduced H.R. 497, the America Works Act this morning.  This a vital piece of bipartisan legislation that makes limited but sensible changes to the Workforce Investment Act, Perkins and the Trade Adjustment Assistance Act by focusing existing training dollars towards nationally-portable, industry recognized certifications. The NAM has endorsed a series of certifications that train to exactly the skills necessary for success in Manufacturing. By pointing these Federal programs towards training that has been recognized by employers as in-demand we are ensuring that government resources are being used more effectively and that potential employees are being trained in marketable skills. We look forward to working with the sponsors on this important piece of legislation as it moves through Congress.

Controlling healthcare costs is a serious concern for manufacturers and consistently ranks as one of the top cost drivers for companies. Healthcare information technology (HIT) provides an opportunity to streamline processes, put more power in the hands of consumers and lower costs.  This week, at the Consumer Electronics Show, the intersection between healthcare delivery, consumers and IT is highlighted.  Mobile applications that allow consumers to manage their health and healthcare resources 24 hours a day, such as mobile applications and telehealth capabilities, allow for management of chronic illnesses. These technologies bridge critical gaps in access for some and provide additional flexibility for others. Employers and employees can manage healthcare costs by reducing complications associated with chronic disease, such as diabetes.

In addition, HIT and other technologies can facilitate more informed decisions, greater use of preventative services, assist care coordination, reduce fraud and abuse, improve delivery of services, and generate better overall health outcomes. For example, in-home assessments performed on a tablet, can improve the quality of care by improving care management services and reducing hospital readmissions while also identifying potential issues for patients to discuss with their primary care doctor. These are important issues to health care industry and NAM member United Health Group is one of the companies striving to make the system better.

Dr. Reed Tuckson, Executive Vice President and Chief of Medical Affairs for the United Health Group, said today that the health care technologies they are offering allow patients to utilize information to achieve the goals of their health care plans. Specifically he says that, “Health care cost calculators like those offered by United Health Care Group technologies allows consumers to know the exact price of all their clinical engagement – how much it costs for a procedure, hospital, by clinician, and more importantly, know the quality of the care delivery system. That information made available online allows people to truly participate in and make better medical care choices. We need the NAM to continue to be a leadership force for change that will improve health care for employers and consumers.”

The NAM is committed to continuing that leadership in order to ensure that the 97 percent of manufacturers that provide health benefits remain on the cutting edge. Technological innovation is driving modern manufacturing and can also drive modern healthcare, which provides for better outcomes and reduced costs. The future of healthcare is here and many manufacturers are leading the way by adopting these technologies.

The U.S. the leading producer of cutting-edge products such as those on display at the Consumer Electronics Show.  Whether it’s in IT, biotech, aerospace, medical devices or heavy machinery, US companies will be the ones to constantly and consistently create new and better things. This future promises to be bright, but only if we have the workforce capable of pushing that leading-edge. And right now, that doesn’t look like a very good bet.  The lack of a skilled workforce is a constant threat to manufacturing growth. In fact in a recent survey 82% of manufacturers reported a moderate-to-serious shortage in skilled production labor.  Worker shortages abound not only among machinists and welders but also in occupations requiring expertise in the fields of science, technology, engineering and math (STEM), where the unemployment rate today lies well below 4%.

The US needs to refocus our workforce training resources and reform our immigration system to continue to grow and innovate. Immigration reform is a serious issue for Manufacturers not only in the High-tech arena but across manufacturing sectors. Without a skilled workforce – from the PhDs to production labor, the nation’s economy will suffer and jobs will be moved overseas. Access to the right individual with the right skills at the right time will ensure that the US remains a global innovation leader.

The Bosch Group and Global Foundries are two companies taking this critical issue head on. The Bosch Community Fund launched last year to improve STEM education and will award up to $3 million in grants annually, providing additional support for the company’s charitable and community efforts in the U.S., with a focus on science, technology and environmental initiatives.

Global Foundries has committed to growing their talent through partnerships with community colleges and universities. At their Fab 8 facility in Malta, New York their workforce development efforts have begun to bear fruit with hundreds of hires made through ongoing collaboration with local partners including Hudson Valley County Community College, Schenectady County Community College, RPI, College of Nanoscale and Engineering at U Albany and Saratoga Board of Supervisors.

The Consumer Electronics Show puts on the display the best of American innovation and a skilled workforce invents, plans, produces and markets that innovation. We should focus American resources towards ensuring the CES of tomorrow will be even stronger than this year.

Manufacturers need a skilled workforce to succeed in today’s global economy. Although we need machinists and welders, we also need to ensure that the innovators, those driving change and invention, come and stay in the US.

Many of the smartest people from around the world come to the US to be educated. That is why the NAM commends introduction of the “STEM Jobs Act of 2012” by thank Chairman Lamar Smith and we urge Congress to pass it. This bill will allow manufacturers access to talent without increasing the total number of visas.  By creating two new employment-based visa categories for Masters and PhD graduates from qualified universities in STEM fields, the bill allows for a streamlined green card process.  This is an important step towards reforming the employment-based visa system to retain talent and encourage innovation, so US manufacturing can remain a global leader. This positive step is recognized by both Democrats and Republicans as evidenced by bills authored by both Rep Lofgren and Senator Schumer that also increase employment based visas.  The NAM has long worked for a bi-partisan solution to this problem and will continue to pursue broad reforms.

The NAM looks forward to working with the co-sponsors to promote this valuable legislation.

Yesterday, Representative Joe Walsh (R-IL) filed an amendment to the National Defense Authorization Act which adds industry recognized credentials to the Department of Defense Pilot Program on Receipt of Civilian Credentialing for Military Occupational Skills. One of the greatest challenges facing manufacturers today is this inability to find the skilled talent needed for today’s modern manufacturing. The skills obtained in the military are highly sought after in the private sector; however it is often difficult to align those skills with civilian job descriptions. It is our hope that this pilot program, with the inclusion of industry-recognized credentials, will begin to bridge that gap.

By using industry-recognized credentials as the basis for identifying competencies, separating military will know exactly what jobs they are qualified for and employers will have a better understanding of which candidates possess the skills required.  The NAM supports Congressman Walsh’s amendment and urges its adoption.