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Jay Timmons

Hannover Messe: Manufacturers from the United States on the World Stage

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This week, I had the privilege of attending Hannover Messe, the world’s largest trade show for industrial technology. This was my third year traveling to Germany for the event, along with a delegation of several NAM members, and this year was certainly special as the United States was the official partner country.

With more than 5,000 exhibitors, Hannover is an impressive demonstration of the power and ingenuity of manufacturers worldwide. This year was our chance to take center stage and show the world the innovation revolution that manufacturers are leading in America—and to create opportunities to reach the 95 percent of customers who live outside the United States, which is critical in today’s global economy.

The NAM was proud to be a sponsor and partner with the U.S. Department of Commerce to ensure that U.S. manufacturers had an impressive showing and that manufacturing was a central focus for the many members of the administration, including the president, who attended.

Select USA opening ceremonies

Getting ready to begin – the NAM was proud to sponsor the U.S. as partner country at the 2016 Hannover Messe.

The show officially kicked off at the Sunday afternoon opening ceremonies. President Barack Obama became the first president to attend the event, and he joined German Chancellor Angela Merkel to welcome the world to the 69th Hannover Messe. The two world leaders not only shared a stage for their remarks; they also shared a united cause—to strengthen manufacturing.

President Obama talks with Chancellor Merkel and business leaders. (Official White House Photo by Pete Souza)

President Obama talks with Chancellor Merkel and business leaders. (Official White House Photo by Pete Souza)

Following the opening ceremonies, I joined President Obama and Chancellor Merkel at the Schloss Herrenhausen for an engaging discussion with global business leaders centered on promoting robust economic growth and a joint commitment to expanding trade opportunities.

With President Obama and members of his administration on the ground for the trade show, the trip was also a chance to advance many of manufacturers’ top priorities. Secretary of Commerce Penny Pritzker is one of the strongest advocates for manufacturers in America, and I am proud that we were able to work so closely with her and her great team.

***

At the top of the list of priorities for this trip was the Transatlantic Trade and Investment Partnership (TTIP), which would join the United States and the European Union (EU) in the largest economic and trade partnership. We were able to discuss TTIP multiple times with U.S. Trade Representative (USTR) Mike Froman and Deputy USTR Michael Punke and brought our delegation to meet with EU Trade Commissioner Cecilia Malmström, emphasizing the importance of strong and ambitious outcomes, including a strong shared standard, to benefit manufacturers of all sizes on both sides of the Atlantic. (Read more from NAM Vice President of International Economic Affairs Linda Dempsey here.)

Pro TTIP

Banner just outside of Hannover fair grounds.

A common theme during our conversations with everyone in Hannover, including U.S., German and EU policymakers, manufacturers large and small and our European business advocacy partners, was how best we can win the “war on trade.” In the face of increasing populist rhetoric on the campaign trail in the United States and a vocal protest wave in Europe, we need to work closely together to explain what TTIP is and how it will create new opportunities for manufacturers, improve growth in our communities and benefit our families. Manufacturers must tell our story of the transformative impact that the agreement will have in new ways to cut through the myths propagated by many NGO and activist groups.

Trade is essential to manufacturers’ success, as it allows us to reach the customers living outside our borders—the very customers exploring the modern technology and impressive products on display at Hannover.

***

Monday was a packed day, touring the facilities, exploring the exhibits, talking with U.S. and European officials and meeting with U.S. manufacturers and friends who had also crossed the Atlantic for the event.

Any visitor would come away with a clear sense that modern manufacturing is vastly different from our past. It’s sleek, high-tech and changing at a rapid pace. Even in just three years, I’ve witnessed dramatic advances in the technology on display at Hannover.

I joined U.S. Deputy Secretary of Commerce Bruce Andrews for a live Facebook chat about what we had witnessed, the importance of trade and the promise of modern manufacturing and the Internet of Things.

Talking trade, investment and advanced manufacturing with Dep. Commerce Secretary Andrews.

Talking trade, investment and advanced manufacturing with Deputy Commerce Secretary Andrews.

At a business summit on the fairgrounds, President Obama and Chancellor Merkel were joined by U.S. and German CEOs and officials, including Secretary Pritzker, to discuss the future of transatlantic economic relations. Unsurprisingly, this was a recurring theme throughout the trip—and for good reason!

***

Tuesday morning, I was grateful for the chance to talk with Siemens employees and customers at their exhibit. Siemens has been a fantastic partner in preparing for Hannover Messe, and it was great to see many of their innovative solutions on display.

As I said in my remarks, “When you look around this impressive venue, there’s no doubt the world is changing—and changing for the better. Manufacturers are leading the way and driving this change every day. But there’s something that doesn’t change. Manufacturers are still improving our world, offering hope and opportunity through the people we employ, the lives we touch and the products we make.”

 

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Speaking to Siemens employees and stakeholders at their exhibit about the future of manufacturing.

Before departing, I led a roundtable discussion with Secretary Pritzker on how we win the battle on trade. We were joined by NAM member companies—Liberty Pumps, UL, UPS and Texas Instruments—as well as leading European advocacy groups and the German officials. Expanding opportunities to sell our products overseas means winning the battle for jobs in the United States!

U.S. Commerce Secretary Pritzker engages the NAM delegation about how to advance manufacturers' top priorities in the U.S.

U.S. Commerce Secretary Pritzker (center) engages the NAM delegation about how to advance manufacturers’ top priorities in the U.S.

***

As always, I left Hannover energized and proud of our industry. There’s always work to do, and we must continue to take our message to our elected officials so that the right policies are in place for our success. But there should be no doubt: manufacturers continue to lead the world by creating solutions and building the future.

 

 

Allergan Brings Manufacturing Jobs to Texas, Demonstrates Importance of Pro-Investment Business Environment

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Earlier this week, Texas manufacturing received a boost as the global pharmaceutical manufacturer Allergan broke ground on a $200 million facility expansion in Waco.

The construction phase alone will add $380 million in total economic impact through 2020. And once production begins, the facility will add more than $460 million to the central Texas economy every year. Read More

Chillicothe Legacy Comes to D.C.

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Rolls of colored paper at the Glatfelter facility in Chillicothe, OH. Photo by David Bohrer/National Assoc. of Manufacturers

Rolls of colored paper at the Glatfelter facility in Chillicothe, Ohio. Photo by David Bohrer/National Association of Manufacturers

I had the chance this week to meet with executives from the PH Glatfelter Co. who were visiting Washington, D.C. For me, this was no ordinary meeting. PH Glatfelter runs the paper mill in Chillicothe, Ohio, where I grew up, and it was in that mill (then known as Mead) that my grandfather, Harry Timmons, got his first manufacturing job, opening doors of opportunity for our family. Read More

Emerging Trends Center at CMA CEO Event

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At the NAM, we know that the role of associations continues to evolve as political and economic realities change. To do what’s right for our member companies, we have to be proactive—getting ahead of challenges and opportunities alike.

To that end, more than 50 manufacturing trade association CEOs gathered last week at the NAM for a Council of Manufacturing Associations (CMA) discussion on emerging trends facing manufacturing companies. Heidi Brock, president and CEO of the Aluminum Association and CMA chair, kicked off the event. Stephen Lane, founder of Vertical Leap Consulting, led a discussion focused on challenges ranging from growth and market positioning to operational and human resources issues.

NAM President and CEO Jay Timmons is joined by other trade CEOs at the CMA discussion on emergying trends, Photo by D. Bohrer/ NAM

NAM President and CEO Jay Timmons is joined by other trade CEOs during a CMA discussion on emerging trends. Photo by David Bohrer/NAM

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Manufacturing in the Spotlight at German Embassy

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"On the Road to Hannover Messe" event at the German Embass. Photo: D. Bohrer/NAM

“On the Road to Hannover Messe” event at the German Embassy. Photo: David Bohrer/NAM

The countdown is on for Hannover Messe, the world’s largest industrial trade show taking place April 25 to 29. The United States is the 2016 partner country, and President Barack Obama will join German Chancellor Angela Merkel for the opening ceremony of the show, which last year drew 220,000 visitors.

The National Association of Manufacturers took part in a key lead-up event this week. “On the Road to Hannover Messe,” sponsored by the German Embassy and Siemens AG, brought together manufacturers and policymakers to discuss the best ways to support the Internet of Things, also known as Industry 4.0. Read More

Nancy Reagan Made America a Better Place

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Today, following the news of the passing of former first lady Nancy Reagan, National Association of Manufacturers President and CEO Jay Timmons issued the following statement:

“Nancy Reagan made America a better place both through her role in her husband’s presidency and her dedication to the causes close to her heart. She will be dearly missed, and our thoughts and prayers are with her family and all who loved her.

“At a time when our politics has been coarsened by divisiveness and negativity, we desperately need the sort of optimism and strength that President and Mrs. Reagan provided during—and after—their years in the White House.

“I will never forget the private tour of the Reagan Library that Mrs. Reagan gave to me and Sen. Allen. It was the first time she had seen the exhibit featuring the booth where she and her beloved ‘Ronnie’ had their first date. Her emotion was overwhelming as she silently and gently touched the leather. And then she composed herself and said ‘well that’s wonderful’ and continued to show us the rest of the exhibits.

“Nancy Reagan was a powerful force for good, speaking out for those who needed healing and hope. We can and should all draw inspiration from her example. The greatest tribute to her memory, and to the Reagan legacy, would be to dedicate ourselves to bringing our country together, to ridding the darkness from our politics and to striving always to be that ‘shining city upon a hill.’”

State of Manufacturing Tour Day 3: Charleston, S.C.: Jay Timmons’ Opening Remarks

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Jay Timmons, president and CEO of the National Association of Manufacturers, delivers opening remarks from Trident Technical College in Charleston, S.C.

Good afternoon. It’s great to be here in this historic city and to be with students and educators as well as leaders of this state.

We’re grateful that Sen. Tim Scott joined us earlier today and appreciate his participation in this program and for his leadership in maintaining our nation’s mantle of economic leadership.

I want to also thank a number of people for joining us, including…

…Dr. Mary Thornley, for welcoming us to Trident Tech and for the work you do every single day to equip the next generation of innovators and dreamers.

…South Carolina Secretary of Commerce Bobby Hitt, for your leadership as a champion for manufacturing and opportunity.

…Ted Pitts, for your partnership and tireless advocacy.

…Eric Spiegel, for being here and for sharing your insights. Siemens continues to make great contributions here in America, not just through the people you employ and the work you do but also through the Siemens Foundation’s investment in building a 21st-century manufacturing workforce.

Also, I want to recognize Anita Zucker, chair and CEO of The InterTech Group, and a generous supporter of Trident Tech.

***

I’m here today to share with you the State of Manufacturing in the United States. Why manufacturing? It’s simple really. It’s because the strength of manufacturing in America is responsible for the success of America in the world. That is an indisputable fact. When manufacturing succeeds, America succeeds.

That may sound counterintuitive to some, and it belies the picture some would like to paint: that manufacturing means things of the past—old, gritty factories, simple tools and rudimentary machines. If that’s the image the word “manufacturing” conjures in your mind, then, ladies and gentlemen, it’s time to introduce you to modern manufacturing.

Today’s manufacturing is vastly different from yesterday’s. Just a quick look at some of our member companies’ work will show you: modern manufacturing touches every aspect of our lives.

For example, I just visited Boeing in North Charleston, where the impressive Dreamliners are being produced…And in the foothills of the Blue Ridge, South Carolinians at BMW are building hundreds of thousands of vehicles a year and exporting to 140 countries.

But innovative manufacturing is everywhere…from the advances in sustainable paper products from Domtar and International Paper…

…to the new material developed by Milliken and Company that will allow windmill blades to last longer and capture more energy.

From the precision parts produced by Timken and Bommer Industries…

…to the vast, new world of the Internet of Things, where everyday objects are now digitally interconnected.

First it was our phones. Then it was our thermostats, our watches, our cars. Soon it will be everything from our contact lenses to entire homes, where companies like Westinghouse are making the “digital home” a reality with advanced security that can be managed with a touch of a button from anywhere in the world.

That’s the Internet of Things…and that’s modern manufacturing.

By 2020, 26 billion objects will be linked together by the Internet. Manufacturing is truly changing everything…and all these things are changing America and changing our lives.

That’s why, today, manufacturing in the United States is leading an innovation revolution—a revolution that will win us jobs, raise standards of living and restore our mantle of leadership around the world.

It’s a revolution that will be on display this coming April—at the world’s largest industrial trade show in Hannover Messe, in Hannover, Germany. This year, the United States is the official partner country for the event, which last year drew 220,000 trade visitors to see the latest technologies and new frontiers of digital integration in manufacturing. And the NAM, partnering with the U.S. Department of Commerce and Siemens, is working on rallying more American manufacturers to participate—and to demonstrate our global leadership.

***

Of course, this leadership is already on display across America, as more than 12 million people are building our future in our industry. And manufacturing is adding more than $2 trillion to the national GDP.

Here in South Carolina, manufacturers employ nearly 12 percent of non-farm workers and contribute more than $30 billion to the state economy.

And get this important data point: For every $1.00 spent in manufacturing, another $1.40 is added to the economy. It’s why manufacturing improves our way of life and builds communities.

So, you see, the state of manufacturing matters. It matters for the state of our union.

But obstacles are still in the way of forging an economy that lives up to our people—and to the potential we can unleash.

Unavoidable headwinds like global economic weakness and worldwide instability have roiled manufacturing. While this will be slow to change, our leaders right here in our own country have the power to fix other self-imposed barriers to opportunity and success. They can fix policies in Washington that imperil our promise.

These barriers exist because Washington hasn’t yet summoned the will to change them. And because “We the People,” in some ways, haven’t done enough to fight for manufacturing as essential to American Exceptionalism and our future.

Just as “American Idol” is entering its final season this year, it’s also time to stop selecting political candidates based on how they sound, rather than what they can actually do for manufacturing and our country.

If you listen to the candidates out campaigning, whether it’s in the final hours before today’s Iowa Caucuses…or here in South Carolina for the First in the South Primary, they all support manufacturing…at least rhetorically. The same is true of many of our leaders.

But words alone won’t create jobs or equip students. It takes action. That’s something Gov. Haley and Secretary Hitt know well. Creating the right climate for economic growth takes the right policy agenda.

At the NAM, we want to make it easy on our leaders. We’re spelling out exactly the right policies for manufacturers to compete and win, so that America can compete and win.

Last week, we unveiled our 2016 agenda for economic growth and American Exceptionalism.

“Competing to Win” is an agenda that is guided by four core values that also happen to be foundational principles of this country that we love.

The first of these is free enterprise: powerful market forces that drive innovation and growth better than any system ever conceived in the history of mankind.

The second is competitiveness: our ability to expand markets and succeed in the global economy.

The third is individual liberty: the creativity and entrepreneurship unleashed by protecting, defending and advancing the basic freedoms enshrined in our Constitution and Bill of Rights.

And the fourth, equal opportunity: our shared belief that every one of us, if given the chance, has the potential to contribute to the success of our companies, our communities and our country.

Every policy proposal supports these principles, which are also the values that have made and that will keep America exceptional.

Our message is this: If a candidate wants to be a manufacturing president…if Congress wants to energize the manufacturing economy…if you want to be a manufacturing voter…this is the agenda.

We zero in on 11 areas:

  • tax;
  • trade;
  • energy;
  • environment;
  • transportation and infrastructure;
  • labor;
  • immigration;
  • workforce;
  • health care;
  • research, innovation and technology; and
  • regulatory and legal reform.

That’s more topics than we have time for here….so I’ll focus on just three…starting with a big one: taxes.

To unleash a wave of growth—and create new jobs for students like you—we have to fix our broken, decrepit tax code. Companies in America pay a higher tax rate than their competitors in every other developed, major economy.

We want to lead in the global economy, but our tax code means we’re starting from behind.

Comprehensive tax reform means…

  • 5 million jobs added to the U.S. economy over 10 years;
  • Lower tax burdens for companies of all sizes, including the millions of small businesses that drive job creation in America;
  • Driving down the corporate tax rate to 25 percent or lower; and
  • Moving away from a seemingly prehistoric tax system that taxes worldwide income…to a modern, territorial system so U.S. companies can compete on a level playing field when they do business overseas.

We can’t let Congress or the president kick the can down the road any further, and we must demand a cooperative approach.

A model is that of President Ronald Reagan…who in his second term worked with, rather than around or against Congress, to enact comprehensive tax reform.

But we can’t stop with taxes. Our regulatory and legal systems are also broken. In fact, our legal system is more than twice as expensive as major competitors such as Japan, France and Canada. And the total cost of federal regulation exceeds $2 trillion each year and is on the rise.

Manufacturers bear a disproportionate share of that burden. Regulatory compliance costs for small manufacturers with fewer than 50 employees total almost $35,000 per employee per year—more than three times the cost for the average U.S. company.

That’s money that could be spent on paychecks or new hires. So what do we do about it?

Well, we could follow South Carolina’s lead. Gov. Haley has done a lot to simplify regulation. She brought in the job creators who understand these burdens firsthand, and they reviewed some 3,000 state regulations and recommended improvements.

This wasn’t just a feel-good excercise. Their ideas are now the basis for executive and legislative remedies—and they’re working.

There’s a reason more South Carolinians have jobs today. There’s a reason more than 26,000 new manufacturing jobs have been announced, and the state continues to recruit more jobs. There’s a reason why Boeing and others are investing billions of dollars here to create state-of-the-art facilities. We can find solutions to drive growth, if only we find the will first.

We also need to use that will to strengthen our workforce.

Over the next decade, we will need to fill an estimated 3.4 million manufacturing jobs. But 2 million of those positions will likely remain empty because there’s a shortage of workers with the right skills—often high-tech skills.

It’s what we call the “skills gap.” It affects all of us in lost innovation and productivity.

It also represents a missed opportunity. The average manufacturing worker earns more than $79,000 annually—$15,000 more than the national average.

So why aren’t more students preparing for manufacturing careers? Part of the problem is that only 37 percent of parents encourage their kids to do so. And only 18 percent of people see it as a top career choice.

One way that perception will change is by updating and invigorating our training programs. We should make it easier for students to earn industry-recognized credentials in schools…to acquire the skills the real world demands. Trident Tech is doing this. You’re leading the way. Others need to learn from you.

Our Manufacturing Institute is focused on this challenge. Executive Director Jennifer McNelly is here with us today, and she works every day to tackle these challenges—changing perceptions and equipping students.

If we take steps like these to close the skills gap, we will enable a new generation of workers to achieve great things for their communities and this country.

***

That’s what all of this is about—helping people build better lives.

To offer the mom living in the Upstate a job to provide for her children today and her retirement tomorrow…

To give the family in the Midlands the chance to advance and improve their standard of living…

To ensure the veteran coming home to the Lowcountry can enjoy the freedom she defended for all of us overseas…

And to give communities a foundation for growth and hope for tomorrow.

Throughout America’s history, manufacturers have made our country stronger by the people we employ, the lives we touch and the products we make.

Today, building a stronger country requires something else: bringing the right leaders together to get the job done…people who believe in those four foundational principles: free enterprise, competitiveness, individual liberty and equal opportunity.

You know, leading our great nation is about more than who can yell the loudest, or who can denigrate others most, or who can express the least desire to work across ideological lines. No, true leadership that is worthy of the promise of America brings out the best in all of us.

A great leader unites. He or she doesn’t divide.

That is why manufacturers are raising our collective voices—the more than 12 million voices in the manufacturing army—to speak out…and take a stand. We need you to join us—to question candidates and to vote for those who support real solutions and real leadership.

We’re manufacturers. We make things—incredible, life-changing things. And now, it’s up to us to make a difference again—for the future of our country.

 

 

State of Manufacturing Tour Day 1, Part 2, in Tampa, Fla.: Jay Timmons’ Opening Remarks

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Jay Timmons, president and CEO of the National Association of Manufacturers, delivers opening remarks from the University of South Florida.

January 28, 2016

Good evening. It’s great to be here in the Sunshine State in January.

It is a privilege to speak to educators and others working so hard to develop the talent this country relies on…and especially to address the students in this room who will soon be leading the U.S. economy forward. It’s good to see so many from the Muma College of Business and the College of Engineering.

I want to thank Dr. Stiling and the University of South Florida for hosting us. And I also want to thank Tom Feeney of Associated Industries of Florida for his partnership and tireless work on our tour…as well as Chris Hart of CareerSource Florida and Doug Bailey of Anheuser-Busch for being part of this important conversation. I’m here today to share with you the state of manufacturing in the United States. Now, why manufacturing? It’s simple really. It’s because the strength of manufacturing in America is responsible for the success of America in the world. That is an indisputable fact. When manufacturing succeeds, America succeeds. That may sound counterintuitive to some, and it belies the picture some would like to paint: that manufacturing means things of the past—old, gritty factories, simple tools and rudimentary machines. If that’s the image the word “manufacturing” conjures in your mind, then come with me, ladies and gentlemen. It’s time to introduce you to modern manufacturing.

Today’s manufacturing is vastly different from yesterday’s. The National Association of Manufacturers has more than 14,000 member companies—from world-recognized brands to family-owned small businesses, and we are the voice of more than 12 million working men and women, their families and the communities they build. Just a quick look at some of our members’ work will show you: modern manufacturing touches every aspect of our lives. Innovative manufacturing is everywhere, across America and here in Florida. From Ryder System’s strides in alternative fuel solutions and energy efficiency…to the sustainable infrastructure developed by CSX. From Rayonier Advanced Materials’ development of high-value ethers that enable the development of slow-release medications…to Amgen or Bayer’s research and production of cancer-fighting and life-improving drugs.

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We’re talking about everything from the precision metal-formed parts produced by Hialeah Metal Spinning…to the vast, new world of the Internet of Things, where everyday objects are now digitally interconnected by the web. First it was our phones. Then it was our thermostats, our watches, our cars. Soon it will be everything from our contact lenses to our entire homes…from smart wallboard, to autonomous automobiles, to transcontinental pipelines. Companies like Jabil are making the “digital home” a reality. And thanks to companies like Honeywell, for example, you can control your home security and energy management with the touch of a button from around the world.

That’s the Internet of Things…and that’s modern manufacturing.

By the year 2020, 26 billion objects will be linked together by the Internet. Manufacturing is truly changing everything…and all these things are changing America and changing our lives. That’s why, today, manufacturing in the United States is leading an innovation revolution—a revolution that will win us jobs and restore our mantle of leadership around the world.

***

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State of Manufacturing Tour, Manchester, N.H.: Jay Timmons’ Opening Remarks

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Jay Timmons, president and CEO of the National Association of Manufacturers, delivers opening remarks from the New Hampshire Institute of Politics during day one of the State of Manufacturing Tour.

Good morning. It’s great to be here in New Hampshire at this exciting time. The eyes of the nation, even the world, are on your first-in-the-nation primary.

With the steady stream of candidates passing through the doors of the Institute of Politics, the eyes of the world have also been on Saint Anselm. So what a privilege to join you.

Neil, thank you for welcoming us. And Jim, thank you for the introduction—and for your leadership for manufacturers and the business community here in New Hampshire.

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I’m grateful to have two NAM board members with us: Doug Starrett, president and CEO of the L.S. Starrett Company; and Don Welch, president of Globe Manufacturing Company.

Bill McCourt, president and CEO of the Rhode Island Manufacturers Association, thank you for coming—and for your partnership.

***

I’m here today to share with you the State of Manufacturing in the United States. Why manufacturing? It’s simple really. It’s because the strength of manufacturing in America is responsible for the success of America in the world. That is an indisputable fact. When manufacturing succeeds, America succeeds.
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United We Stand, Divided We Fall

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Last week, U.S. Chamber of Commerce President and CEO Tom Donohue delivered his State of American Business address. He spoke of the challenges and opportunities that businesses in the United States see on a daily basis, and he touched on a range of important policy issues. But he also brought up an important political concern: the type of troubling rhetoric we’re hearing in this year’s political campaign.

He observed, “[T]here are voices—sometimes very loud voices—who talk about walling off America from talent and trade and who are attacking whole groups of people based not on their conduct but on their ethnicity or religion.” Read More