NAM President and CEO Jay Timmons appeared on the Don & Roma radio show on WLS 890 in Chicago today to discuss the promise of manufacturing and the multiplier effect of creating manufacturing jobs.

During the conversation, Mr. Timmons focused extensively on the need to eliminate the 20% cost disadvantage that manufacturers in the U.S. face compared to their global competitors. He highlighted the burdensome tax system in the U.S., flawed energy policy, and regulatory issues that have a distorting effect on our economy.

Additionally, Mr. Timmons spoke extensively on the need to reauthorize and strengthen the Export-Import Bank, which assists in financing the export of U.S. goods and services from thousands of American companies. It’s a vital tool for exports and job creation. Other nations are vigorously supporting their export industries and Mr. Timmons commented on the pertinent question, “Why should the U.S. not be able to get a share of that? We need to compete on the same level that our competitors are.”

In a time of high unemployment it seems unfathomable that manufacturers are struggling to fill jobs – but that is exactly what is happening across the country. Manufacturers have reported a significant disparity between the number of skilled workers they need to continue to grow their businnesses and the worker pool available to them.  An article in today’s Washington Post hightlights this unfortunate phenomenon. 

“A recent report by Deloitte for the Manufacturing Institute, based on a survey of manufacturers, found that as many as 600,000 jobs are going unfilled. By comparison, the unemployed in the United States number 12.8 million, according to the Bureau of Labor Statistics.

‘High unemployment is not making it easier to fill positions, particularly in the areas of skilled production and production support.’”

The Manufacturing Institute has been focused upon solving this very problem – working to implement the “Right Skills Now” program to help individuals gain the skills and certification they need to acquire good paying, high quality manufacturing jobs.

Manufacturing is a hot topic in around the country – as evidenced by some of the Super Bowl ads that aired last night – and Washington is no exception.  Republicans on the House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade held a jobs and innovation forum entitled, “Making it Easier to Make it in America,” bringing together representatives of American companies, including Intel, with members of Congress to discuss opportunities for strengthening the manufacturing sector.

Jay Timmons addresses the members of Congress on the need for a manufacturing renaissance at a forum held by the Energy and Commerce Committee Republicans

Jay Timmons, the NAM’s President, was an invited guest and he took the opportunity to share the current state of manufacturing – detailing the challenges facing manufacturers as well as their successes.

Jay weighed in on each of the forum’s wide array of topics, including taxes, trade, and the critical need for Washington to develop a coherent “all-of-the-above” energy policy, saying that, “Energy costs are, outside of labor, the number one cost of running a manufacturing business.”

Bill Holt, General Manager of Intel’s Technology and Manufacturing Group, raised the issue of the extremely high U.S. corporate tax rate – a rate that, as of April 1^st, will be the highest of any industrialized country.

“Our tax rate is 29% – higher than all of our foreign competitors. That really puts us at a disadvantage.”  

Today’s discussion was a good opportunity to talk with policy makers about what is needed to truly have a Manufacturing Renaissance. As Jay noted, manufacturers need each aspect of the NAM roadmap put into action – the sooner the better.

Great news out of Illinois today! Chrysler has announced that it is hiring 1,800 new workers and stepping up production at their plant in Belvidere. It’s a good story that coincides with the news that the U.S. economy gained 50,000 manufacturing jobs in the last month.

Approximately 500 of the new employees will focus on the new Dodge Dart while others will work on existing models.  The new hires represent a 66% increase in plants workforce and all are expected to be hired by the third quarter this year.

Additionally, it is expected to create hundreds of other jobs at parts suppliers and other vendors – part of the ripple effect that NAM President Jay Timmons spoke about during his January “State of Manufacturing” speech in Cleveland. He told those in attendance that:

“For every dollar invested in manufacturing, $1.35 of indirect economic activity is generated – the highest multiplier effect of any economic sector, by far. And for every job created in the manufacturing sector, up to another three jobs are created elsewhere in the economy.”

The addition of these jobs are due in large part to a pro-growth business environment for Chrysler – part of the polices that NAM has said are essential to achieve a Manufacturing Renaissance. Hopefully policy makers are paying attention to the results.

The Indiana legislature completed passage on and Gov. Mitch Daniels immediately signed into law “right to work” legislation yesterday. The move by the state’s leaders makes Indiana the 23rd state in the nation and the first in the heartland to adopt right to work. Such measures forbid forced union membership and/or the payment of union dues or fees as a requirement of employment.

Indiana proponents of right-to-work argue that open shops will help attract new business investment and their jobs, a major political selling point after three straight years of high unemployment nationally. Governor Daniels stated, “This law won’t be a magic answer, but we’ll be far better off with it.”

Manufacturers were well represented on Capitol Hill today as NAM Executive Committee member and Chair of the Small and Medium Manufacturers Group Kellie Johnson, President of Ace Clearwater Enterprises, testified on behalf of small businesses and manufacturers.

Kellie Johnson, NAM Board Member, testifies before the House Ed & Workforce Committee

The House Committee on Education & Workforce held their first hearing of 2012 entitled, “Expanding Opportunities for Job Creation”. Ms. Johnson was chosen to testify because of her insight into state initiatives for job creation, the effects of federal policies on job creation, and the challenges facing small businesses within the current economic environment.

While in front of the powerful House committee, Ms. Johnson highlighted the ways in which federal regulations burden small and medium manufacturers differently than their larger counterparts, specifically citing recent decisions and regulations from the National Labor Relations Board (NLRB), Occupational Safety and Health Administration (OSHA), and the Environmental Protection Agency (EPA).

She hammered home the point by stating, “The uncertainty of our regulatory and economic environments makes it almost impossible for short or long-term business growth, especially for a capital intensive industry like manufacturing. To be compliant with the newest regulations and rules takes time away from running the day-to-day operations of a business. Resources are constantly rerouted away from customers, resulting in lower productivity and lower customer satisfaction.”

Additionally, Ms. Johnson took the opportunity to speak about the impediments to job creation arising from regulatory overreach from the viewpoint of a small manufacturer was a chance to emphasize the importance of manufacturing to economic growth. To read her full testimony click here.

Caterpillar C.E.O. Doug Oberhelman appeared on Fox News’ “Your World with Neil Cavuto” to talk about how to best advance manufacturing in the U.S.

On the heels of President Obama’s State of the Union address during which he focused on the importance of manufacturing, it is powerful to hear directly from a manufacturer who strives every day to compete in the global marketplace.

At the conclusion of his appearance with Cavuto, Oberhelman summarized on what is needed for a true manufacturing renaissance:

“We need stimulus around manufacturing, we need tax reform, and we need education reform, and we can go on and on and on. As Vice Chair of the National Association of Manufacturers, there is a really refined list of what we need to do if we want to be competitive in this country. It is a prescription that is not that hard to follow and is pretty common sense, actually.”

According to news reports, President Obama will formally reject the Keystone XL Pipeline project today. If the reports prove to be true, this is a deeply concerning development for manufacturers and our overall economy.

This project will create 20,000 construction and manufacturing jobs and another study indicates that we would see an additional 118,000 indirect jobs. In such a time of high unemployment and economic difficulty, where is the logic in turning your back on a positive solution?

As we saw Saturday and Sunday during the GOP Presidential debates, manufacturing is at the forefront of our national conversation on economic recovery.  That trend continued today with President Obama’s remarks on increasing investment in America.  Ford Motor Company President Mark Fields and others joined the President at the White House where he discussed increases in manufacturing productivity. 

The NAM has a blueprint for a pro-growth agenda and will continue to advocate for a better regulatory environment, corporate tax reform, education, infrastructure and more international trade. These are the real keys to ensuring that manufacturing can lead our economy.

Two indices released today provide mixed news on the larger economy, with reduced manufacturing activity in November weighing heavily on both of them.

First, the National Activity Index from the Chicago Federal Reserve Bank dropped from -0.11 in October to -0.37 in November. The largest driver of the decline was the 0.2 percent drop in industrial production which was reported last week. Housing remained a drag on the index despite some improved housing starts figures; whereas, higher employment figures helped to lift it.

Overall, the National Activity Index shows an economy which is growing below its historical trend. The three-month moving average is currently -0.24, which is unchanged from the previous month. Values under -0.70 suggest that the economy might be in a recession. While economic growth has moved away from the recessionary risk zone in recent months, it is also clear that weaknesses remain.

Second, the Conference Board’s Leading Economic Index rose 0.5 percent in November, lower than the 0.9 percent growth rate observed in October. As with the Chicago release, manufacturing indicators provided a drag to the index, including a reduced average workweek for production workers and fewer manufacturing new orders for consumer goods and materials. Nondefense capital goods spending, on the other hand, provided a slight boost.

There were a number of bright spots, though. Higher building permits and increased consumer expectations were both real positives for this forward-looking index. In addition, expansionary monetary policies are providing ample liquidity to the markets, with both monetary aggregates and the interest rate spread contributing greatly to this figure.

The Coincident Index, which looks at the current economic environment, rose 0.1 percent. For this index, higher nonfarm payrolls, personal income and manufacturing and trade sales were offset by lower industrial production numbers.

Nonetheless, despite the drag on these indices provided by the manufacturing sector, the real story here is one of continued growth moving into 2012. There were several positives observed in these data, with the drop in industrial production having a large sway in moving both the National Activity Index and the Leading Economic Index lower.

Yet, the larger picture for the next few months should be more optimistic than these numbers might portray. Improvements in housing, employment and consumer confidence are welcome signs, and most estimates of manufacturing production for 2012 show moderate growth of around 3 percent.