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More Political Stunts At the Expense of Job Creation

Representative Henry Waxman’s (D-CA) political games on the Keystone XL pipeline project is only setting Americans back in their quest to find jobs — good paying jobs.  Continued attempts by the Ranking Member of the House Energy and Commerce committee to cause a distraction by focusing on whether or not certain companies stand to benefit from this project is deplorable.  Americans stand to benefit.  More than 20,000 jobs will be created in manufacturing and construction, not to mention the 118,000 spin-off jobs that will also be created.  Manufacturers use one-third of our nation’s energy supply and the construction of the pipeline will provide a new source of affordable energy to manufacturers.

So let’s stop playing games. Politicians can no longer claim the need to create jobs for Americans while simultaneously using their position to stand in the way of common sense projects that would do exactly that.  America is prosperous because the private-sector fuels our economy and creates jobs — this Keystone XL pipeline project is no different.

Jay Timmons is president and CEO, National Association of Manufacturers.

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The Year of Living Dangerously

At the end of 2011 it’s apparent that our economic recovery has been modest at best. A robust economy can be difficult to achieve under even the best circumstances, but it is made even more difficult when faced with a hostile environment for private enterprise. Manufacturers should be freed from unnecessarily burdensome regulations if they are to lead the economy. Efforts to foster economic growth and job creation have been stymied by an avalanche of overregulation from government agencies. A year-end review of the regulatory action taken by government agencies tells a sad story – one that manufacturers hope will reverse itself in the coming year.

This year alone we saw the National Labor Relations Board (NLRB), the Environmental Protection Agency (EPA), the Department of Transportation (DOT), and other agencies place more obstacles in the way of job creation and insert themselves further into the day to day decisions of manufacturers. Here are just a few examples:

2011 was a banner year for overreach for the NLRB, including the ambush elections rule, the decision in the Specialty Healthcare case, and the now-resolved complaint against the Boeing Company. These actions from the board have the potential to create disruptive and adversarial relationships between employers and employees - a result that simply isn’t conducive to growth. The NAM is currently suing the NLRB to prevent the implementation of the poster rule, a rule that has been delayed repeatedly after requests by the judge to allow time for a decision in the case. An NAM survey about the NLRB’s agenda revealed that nearly 70 percent of respondents said the NLRB’s actions will hurt job creation.

The EPA has put forth new rules and regulations that come with high price tags and puts hundreds of thousands of jobs at risk.  The costly and harmful Boiler MACT regulations checks in at $14.5 billion and threatens approximately 230,000 jobs. Sadly, it seems that the EPA may have outdone themselves with the Utility MACT rule – one of the most expensive regulations in EPA history –would have a draconian effect on power plants across the nation. According to the EPA’s own analysis, the Utility MACT regulation could cost more than $100 billion in the coming years and destroy an average of 183,000 jobs per year for the next decade.

The DOT pulled the rug out from under manufacturers that built their logistical operations based on the current trucking hours of service rule and have invested heavily in compliance since their implementation. Released just last week, the revised final rule will have a negative impact on manufacturers’ supply chains, distribution operations and productivity. To change these rules and limit the flexibility of manufacturers without sufficient reasoning is a mistake and will impede the ability of manufacturers to invest, grow and create jobs.

For manufacturers, a year living under the yoke of this overregulation is a year of living dangerously – hopefully Washington will come to its senses before it’s too late.

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Remembering Robert Pritzker

 The NAM family is deeply saddened by the passing of our former NAM Chairman Bob Pritzker. Our thoughts and prayers are with his loved ones.

The business world has lost a brilliant but humble leader. He was a down-to-earth man, as comfortable on the shopfloor as in the boardroom. Starting with a simple manufacturing company, he turned his company it into one of the most successful corporations in the world through his vision and bold leadership. As a giant of industry, as a civic leader and as a philanthropist, he personified the American Dream.

Today the NAM continues the work of Bob Pritzker as we work to advance policies that let manufacturers lead. He was a tireless champion for manufacturing and commonsense public policy, raising awareness of how important both are to our economy. Mr. Pritzker’s charitable devotion to education will guarantee new generations of innovators and leaders. The world will miss his leadership, his wisdom and his charity.

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Ford Agreement with UAW Positive for Manufacturers

Today, Ford Motor Company and the United Auto Workers (UAW) have come to a tentative agreement that will result in thousands of quality manufacturing jobs at a critical time in our economy. Ford has stated they plan to add another 5,750 U.S. jobs in addition to the 7,000 they announced in January, which will in turn create a ripple effect of new jobs for other manufacturers and businesses throughout the supply chain. Many workers and their families will benefit from these additional jobs.

Both large and small manufacturers are essential to our economy and the recovery.  The United States is still the top manufacturing economy in the world and today’s announcement, which will create jobs, will make the manufacturing sector stronger.

Jay Timmons is president and CEO, National Association of Manufacturers.

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Debt Ceiling Done, But Congress Has More Work Ahead

With hours to spare, Congress sent a debt ceiling compromise to the President.  As the August 2 deadline approached, the stops and starts in the negotiations created some tense moments—but did anyone really expect that Washington wouldn’t wait until the last moment?

The President and Congress had to raise the debt ceiling to allow the federal government to pay its bills—bills it had already incurred or promised to pay.  While some argued against raising the debt limit and letting the federal government juggle its finances to pay some of its bills, this strategy would not work.  In fact, a government default on even some of its obligations would hurt everyone—businesses, investors, retirees, and those of us who rely on government services (and we all do to some extent).

While raising the debt limit was a necessary step, it’s clear that Washington also has to do something to rein in federal spending.  Twenty years ago, it cost about $1.3 trillion to run our government.  Today, it costs nearly three times that—an estimated $3.4 trillion this year. Our budget deficit this year is projected to be about $1.5 trillion; we are borrowing 44 cents for every dollar we spend from future generations. This kind of deficit spending is not sustainable and already has begun to threaten long-term economic growth.  Given the historically high level of the federal deficit, it is imperative that policymakers look both at real and immediate spending cuts and structural changes that address the long-term deficit.

To the credit of Washington policymakers, the debt ceiling compromise does begin to address our deficit problem, with an immediate $900 billion cut in federal spending and at least $1.2 trillion more over the next two years.  But this is just a start.  We need further spending cuts that target both the discretionary and mandatory spending sides of the ledger, while also keeping in mind the priorities of a national government.  National defense, for example, is one of the most important, if not the most important, functions of a government.  Congress and the President must preserve our nation’s ability to defend itself and its citizens.

Congress and the President should also avoid taking steps that would stifle economic growth in their efforts to bring down the debt.  Economic growth is an essential component of any plan to rein in our debt.  Growth, for example, produces higher revenues—so we won’t have to borrow as much.

In short, as Congress and the President look for ways to cut spending, they must avoid making the easy political choices and instead opt for a plan that upholds our nation’s priorities and puts us on a path toward a strong, growing economy.

With this latest Washington crisis behind us, Congress has left town for the rest of the summer.  When it returns, it will face other matters of urgency.  Congress still must pass the three pending free trade agreements.  The research and development tax credit is set to expire.  Manufacturers are waiting on Congress to do something about the harmful regulations coming out of federal agencies.

Congress should enjoy the break.  There’s a lot to do ahead.

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President Obama Highlights Manufacturing in Iowa

President Obama joined manufacturers this afternoon at Alcoa Davenport Works in Bettendorf, Iowa. NAM Board Chair and Vermeer Corporation President CEO Mary Andringa greeted the President before his tour of the facility and attended his speech.

Los Angeles Times,Obama highlights manufacturing revival, jobs in Iowa
BusinessWeek, “Obama Turns to Alcoa as Backdrop for Manufacturing Message

The President discussed several of the initiatives he announced earlier this month, including his endorsement of the Manufacturing Institute’s Skills Certification System and the formation of the Advanced Manufacturing Partnership of which Alcoa is a partner. 

We are encouraged to hear President Obama continue to discuss the importance of manufacturing to the economy and to job growth. Yet manufacturers continue to face burdensome regulations, higher taxes and energy costs and increased global competition.

If manufacturers are going to continue to lead our economic recovery and create quality, high-paying jobs we need policies that give business owners certainty and the tools to grow. The NAM has a blueprint of policies that will help us remain competitive. Our Manufacturing Strategy for Jobs and a Competitive America has three very simple goals:

  • To make the U.S. the best country in the world to headquarter a company and for direct foreign investment.
  • To make the U.S. the best country to innovate and perform the bulk of a company’s research and development.
  • To make the U.S. a great place to manufacture and serve as an export platform for the world.

It is my hope that we can continue to work with President Obama, his Administration and Congress on advancing policies that keep the United States the number one manufacturing economy in the world.

Jay Timmons is president and CEO of the National Association of Manufacturers.

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President Obama Reaches Out to Manufacturers On Skills Certification

I had the opportunity to be with President Obama today at an event at the Northern Virginia Community College where he announced a new initiative and key steps toward building an educated and skilled workforce in manufacturing.  The President particularly highlighted The Manufacturing Institute’s NAM-endorsed Skills Certification System as a national solution.  There were several NAM board members in attendance with me and it was a great event.

I did take the opportunity to talk briefly with the President and I not only thanked him for the event but also told him we needed to work together on the regulatory review process.  I expressed my concerns over many of the regulations coming out of EPA and their impact on manufacturing. The President noted that the administration wants to ensure that benefits outweigh the cost of regulations.  Our hope at the NAM is that we will see concrete action to curtail the over regulation from many agencies, especially the EPA.  It truly was a great day for manufacturing and I very much appreciate the President’s priority to this issue.

News coverage of the event:

New York Times: “Obama Talks Up Job Training”
Chronicle of Higher Education: “Obama to Unveil New Credentialing System During Visit to Community College”
Industry Week: “Industry Applauds National Attention on Manufacturing Workforce Development”
The Hill: “White House, industry expand programs to educate, train workers”
Bloomberg: “Obama Says Community College Training Can Help Fill Jobs Gap”
UPI: “Obama launches job-training partnership”

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Manufacturers Urge Congress to Rein In EPA’s Overregulation

The National Association of Manufacturers (NAM) today launched a campaign to put a human face on the unprecedented expansion of federal regulations coming from the Environmental Protection Agency (EPA).

Manufacturing is leading the way in America’s recovery, adding thousands of jobs every week. But the flood of regulations pouring down from the EPA will mean higher prices for energy and impose enormous costs throughout the economy.

Manufacturers pay utility bills like everyone else. When residential energy costs go up, families have less money to buy things like clothes and groceries. When energy costs go up for manufacturers, we have less money to invest – and to hire people.

We’re releasing these new ads as Congress considers legislation to block the EPA’s proposed regulating of greenhouse gas emissions. No federal agency should have the authority to simply mandate such a radical, nationwide restructuring of energy use – and force people to pay higher energy prices – without a vote of the elected branch of government, Congress.

Manufacturers already have invested billions of dollars to comply with federal regulations. We embrace common-sense approaches to ensure a clean and healthy environment.

Unfortunately, the EPA’s greenhouse gas regulations are only the biggest, most economically damaging of its many proposals. Whether it’s mining, transportation, farming, or manufacturing, the EPA is rolling out mandates that make it tougher for businesses in America to compete in the global marketplace, and tougher for people to make ends meet.

As our ads asks, “Manufacturing has always provided good jobs that support our local economies. But times are tough. So why is the EPA pushing new regulations that could force businesses to close, making times tougher, increasing costs and prices for goods and services?”

The NAM’s new TV and radio ads are just the beginning of a sustained educational campaign about the EPA’s excessive regulations and their effect on the U.S. manufacturing economy.

To learn more about this campaign and the damaging effects of the EPA’s proposed regulations, please visit www.NoNewRegs.org.

Jay Timmons is President and CEO of the National Association of Manufacturers.

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For the SOU: Competitiveness and Jobs, Policies and Action

The White House has already identified competitiveness and jobs as major themes in President Obama’s State of the Union address tonight, and manufacturers believe those are exactly the right issues to put front and center before the American people. Now we are waiting for the details, including specific policy proposals and actions.

Jay Timmons

Manufacturers are proud to be leading the way in the economic recovery. Last year, manufacturing reported its first gain in U.S. employment since 1997: The number of manufacturing jobs in the United States in 2010 grew by 1.2 percent, or 136,000. Economists expect the trend to continue over the next few years, demonstrating that manufacturing means jobs.

We want to do more to create jobs – much more – and there’s still a long way to go. Unemployment has been stuck above 9 percent since June 2009, and hiring traditionally lags behind economic growth.

The National Association of Manufacturers has laid out a clear strategy to achieve the goals for a dynamic, growing and competitive U.S. economy: our “Manufacturing Strategy for Jobs and a Competitive America.”

The stage is well set, and manufacturers are waiting with anticipation for the State of the Union. We might very well disagree with some details in any substantive proposal that President Obama makes tonight, but we understand that a proposal is just the first step toward final action. And our goal is simple – let us create jobs.

Manufacturers want America to be more competitive, and we want economic growth to lead to more jobs. In that, we agree with both President Obama and Congress.

Jay Timmons is president and CEO of the National Association of Manufacturers.

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An Introduction from the President of the Manufacturers

I’m Jay Timmons, the new President and CEO of the National Association of Manufacturers (NAM). I may spend most of my time in Washington, D.C., but my principles and motivation are driven by being part of a family with manufacturing roots in Chillicothe, Ohio.

Jay Timmons

My grandfather had a strong commitment to his community and country that came from being a manufacturing employee who helped innovate and make things that contributed to everyday life. These values are with me today as we all fight to help U.S. manufacturers retain their edge in a highly competitive global marketplace.

Here at the Manufacturers, our responsibility is to be the voice of the more than 12 million Americans employed directly in manufacturing. Today, the United States enjoys the distinction of being the world’s largest manufacturing economy, and U.S. manufacturers perform half of all research and development activities in our nation, driving more innovation than any other economic sector.

But manufacturers face significant challenges because our competitors around the world are working hard to take our leadership position away from us. Elected leaders on both sides of the political aisle agree — “Manufacturing Means Jobs” — and we’ve developed a detailed plan called “Manufacturing Strategy For Jobs and a Competitive America”. It’s a blueprint that will promote sustained economic growth and job creation – right here – in the United States.

I strongly believe this is the right strategy to take our nation forward and enable us to maintain our competitive edge against our competitors. I invite you to share this agenda with manufacturers on the frontlines and those living in communities that rely on manufacturing for their economic vitality. Our Strategy focuses on important issues that have a dramatic impact on manufacturing, such as government oversight and regulation, taxes, trade and energy policy among others.

Manufacturing not only means jobs –- it means opportunity, innovation, security and economic growth. So, join us in this effort to preserve and build on the greatness that people like my grandfather and those in manufacturing today have built for our nation.

I am excited to lead this association and I look forward to working with our dynamic companies to make the United States the best place in the world to be a manufacturer and to be a manufacturing employee.

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