Author Archive

Manufacturers Echo Call from Halls of Congress to Conclude Negotiations and Keep Commerce Moving

Manufacturers are encouraged that Members of Congress continue to weigh-in and urge a “swift resolution between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU)” as the two parties continue to negotiate a new labor contract under contentious circumstances.

Today’s bipartisan press conference sheds further light on the impacts different sectors of the economy experience as each day passes without a new labor agreement and West Coast port productivity continues in a free fall.  (continue reading…)

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)

Time to Restart Trucking Hours of Service Rules

As Congress works to wrap-up its legislative business this week, the House has an important opportunity to improve road safety and correct a very flawed trucking regulation that the Obama Administration implemented last year.

Manufacturers strongly support bipartisan language approved by the Senate Appropriations Committee to be included in the FY 2015 omnibus appropriations conference package that would require further study of the 34-hour trucking Hours of Service restart provision and provide a one-year pause of significantly burdensome requirements to determine whether changes are necessary. (continue reading…)

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)

West Coast Port Slowdowns Are Hurting Manufacturers

Contract negotiations over West Coast ports labor contracts are quickly deteriorating without a clear solution and manufacturers are growing increasingly concerned about both domestic and global impacts of a possible shutdown. (continue reading…)

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)

Manufacturers are Making the Case for Transportation Infrastructure

Today the House voted to pass H.R. 5021, Highway and Transportation Funding Act of 2014. NAM sent a Key Vote letter in support of the legislation that will replenish the Highway Trust Fund and avoid the August low balance scenario that is threatening approximately 100,000 road, bridge and transit construction sites and 700,000 jobs across the country.

The legislation also authorizes an extension of critical federal highway and transit programs for eight months after the current authorization expires on September 30.

NAM worked with over 60 manufacturing associations around the nation to help echo the message to Congress that fixing the Highway Trust Fund cannot be left to chance and Congress must accomplish this before August recess. Manufacturers are leading the debate and urged Congress to make it this month’s priority to restore the Highway Trust Fund to a condition of solvency.

The White House hosted a timely meeting last week on infrastructure that included Vice President Biden and a diverse range of corporate leaders from manufacturing, construction, trucking and other industries.

NAM Board Chair and Caterpillar Chairman and CEO Doug Oberhelman and NAM member and BNSF Executive Chairman Matt Rose helped lead a conversation on globally competitive infrastructure with Transportation Secretary Anthony Foxx and White House National Economic Council Director Jeffrey Zients. Click here for Oberhelman’s op-ed, “Congress Must Move on Highway Trust Fund,” in The Hill.

NAM Member Chris Toomey, Senior Vice President of Procurement for global manufacturer BASF was among several other NAM members who traveled to Washington for this special session. Toomey encouraged participants to look at advocacy for better infrastructure as supportive of economic growth, citing growing manufacturing investments in the Gulf Coast that will require competitive infrastructure.

The Senate is expected to consider H.R. 5021 next week.

There is still much work to be done. Passing a fully funded, multi-year surface transportation is the next order of business for improving infrastructure. Manufacturers are making the case that investing in infrastructure supports competitiveness, growth and jobs.

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)

Fix the Fund

As the House and Senate wrap up their work in advance of a Fourth of July recess and Americans prepare for Independence Day celebrations, a looming crisis threatens work at 100,000 transportation construction sites and 700,000 jobs around the country. While summer construction projects can be inconvenient to travelers, modernizing our roads, bridges and transit systems is critically important to our safety, efficiency and global competitiveness.  It would be far worse if the construction work never took place or even ceased temporarily.

Unfortunately, the Highway Trust Fund (HTF) which supplies needed funding to states and localities is running on fumes and will no longer be able to meet its fiscal obligations to the states in August, further threatening jobs and continued economic recovery.  All at a time when our infrastructure continues to age and deteriorate, confirmed by a D+ grade from the American Society of Civil Engineers.  This is not a time to cut back or postpone for a later date to solve.

Congress only has a few weeks to replenish the fund when it returns from its break or work will stop at these 100,000 construction sites. It’s good news that leaders from the Senate Committee on Finance and House Committee on Ways and Means are coming together to start these important conversations about improving the fiscal health of the HTF. Manufacturers encourage the House and Senate to achieve bipartisan solutions that will improve the balance of the Highway Trust Fund as we seek a well-funded multiyear surface transportation authorization.

Manufacturers need competitive infrastructure to thrive in today’s global economy. Our infrastructure is out of date and resting on a legacy built by previous generations.  Manufacturers responded to an infrastructure survey conducted by the NAM and the Building America’s Future Educational Fund last year. Two-thirds doubt that our infrastructure is position to respond to the competitive demands of a growing economy.  Worse, 70 percent reported that roads are getting worse.

This issue goes far beyond state transportation departments and road builders. When construction is put on hold, manufacturing is on hold too.

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)

New Report Shows Impact of West Coast Port Shutdown

Manufacturers and retailers today banded together to impart the importance of keeping the West Coast ports open for business as the International Longshore and Warehouse Union (ILWU) and its employer group, the Pacific Maritime Association (PMA) negotiate a new labor contract that expires on Monday, June 30.

A new report commissioned by the National Association of Manufacturers (NAM) and the National Retail Federation (NRF) models the potential impact on U.S. employment, output  and income if port operations were to cease  for 5, 10 and 20 days at 30 West Coast ports along the continental United States. The results are sobering and if such disruptions occur as a result of a protracted dispute between the negotiating parties, the economic consequences would be significant and widespread.

Port Closure Full Report_v08-table1

The U.S. economy could lose as much as $2.5 billion per day if a prolonged West Coast port shutdown occurs. With a still-recovering economy and disappointing first quarter growth, the harm to the nation’s employment, GDP and consumer purchasing power would be felt from coast to coast.

Manufacturers need competitive and efficient ports to ship and receive critical commodities and finished products in order to keep businesses running and people employed. Cargo moving through West Coast ports represents an economic value of 12.5 percent of U.S.GDP.

The chain reactions of a prolonged dispute should offer pause to the ILWU and the PMA and the results of this new analysis should be reason enough to keep negotiating, without disruptions.

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)

Chairman Shuster Talks Transportation at NAM Shopfloor Event

This week the National Association of Manufacturers (NAM) hosted a Shopfloor briefing for congressional staff about the need to address key infrastructure issues that impact the manufacturing economy, starting with a bipartisan fix to the Highway Trust Fund before August recess and passing a well-funded multiyear surface authorization as the MAP-21 deadline approaches in September.

Shuster ShopfloorHouse Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA) spoke passionately to those gathered at the NAM Shopfloor event about the importance of surface transportation investments to our global competitiveness and the need for a strong federal role to ensure connectivity across the nation, especially as the population grows. While timelines to pass a major surface transportation authorization package could change, successfully addressing the impending Highway Trust Fund shortfall is first and foremost on the mind of the Chairman.

Manufacturing executives including NAM Board Member Randy Mullett from Con-way, Inc. and Tom Manley from Terex Corporation joined NAM Director of Transportation and Infrastructure Policy Robyn Boerstling for a panel discussion about the nexus of transportation infrastructure and manufacturing. Speakers echoed that keeping the Highway Trust Fund financially solvent extends far beyond state transportation departments and road builders. Manufacturers like Terex are not only integral suppliers to the construction industry but also major exporters of heavy equipment to customers in Europe and beyond. Con-way provides critical trucking services to manufacturers – moving inputs and finished products around the United States. Mullett described the transportation network as a “system within systems.” He noted that a zero-sum approach to addressing the nation’s infrastructure challenges would harm the economy and the people who depend most on a functioning transportation network.

Manley reminded participants about the tragic bridge collapse in Minnesota as well as lessons learned from Hurricane Sandy. Americans should not have to experience another crisis for Congress to take action.

The Shopfloor came on the heels of a successful Manufacturing Summit that brought over 500 manufacturers to Capitol Hill last week where infrastructure was prominently featured among other key issues impacting manufacturing. To compete in the 21st-century, we have to invest and modernize our infrastructure with an eye toward economic growth, jobs and increased competitiveness.

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)

Administration Takes Important First Step in Transportation Authorization; Manufacturers Emphasize Need to Restore Trust Fund to Solvency Soon

The Obama Administration’s four-year, $302 billion Grow America Act sets the stage for the next surface transportation authorization as the balance of the Highway Trust Fund continues to decline and the current authorization, MAP-21 expires on September 30.

However, relying on tax reform to pay for this significant infrastructure investment is a risky endeavor. While the long-term approach to funding and the commitment to improve the environmental permitting and review process are appreciated by manufacturers who need significant transit, highway and bridge investments to keep operations efficient in the United States, efforts to return the Highway Trust Fund to a state of solvency before the end of August must remain a priority focus of Congress and the Administration in the coming weeks ahead.

The Administration has laid out a thoughtful blueprint that will enable states and localities to move forward with significant infrastructure projects that require multiyear funding.  While the details of the proposal need to be fully examined and assessed, the next few months will provide critical opportunities for important exchanges between Congress and stakeholders as September 30th nears. Manufacturers look forward to participating in these ongoing discussions.

VN:F [1.9.22_1171]
Rating: 5.0/5 (1 vote cast)

President Continues Commitment to Infrastructure; More Work Ahead and No Easy Solutions

The President has been a consistent advocate for increased investment in America’s infrastructure and we appreciate the President’s continued attention to the deteriorating condition of our roads, bridges, transit systems, airports, ports and inland waterways.  Like the President, manufacturers recognize that America’s infrastructure is resting on a legacy of past investments that have created great economic advantages and it is now time to reverse the deteriorating condition of our nation’s infrastructure.

This is not something that can be accomplished in a year, two years or even with a quick infusion of funding to supplement ongoing infrastructure investments. Manufacturers are eager for Congress and the Administration to work together to develop a long-term investment strategy that will make smart and strategic infrastructure investments designed to enhance our global competitiveness. While the NAM supports the President’s call to streamline environmental reviews and expedite infrastructure project delivery, the proposal to use savings from tax reform as a means to direct additional investments in infrastructure complicates efforts to overhaul our tax code and distracts from the goal of achieving a sustainable stream of funding for our nation’s surface transportation network.

Over the next few months, manufacturers encourage the President to engage in a robust conversation about long-term transportation funding by putting his Administration’s weight behind an effort to return the Highway Trust Fund to solvency and pass a traditional multiyear surface transportation authorization before September 30, 2014 when MAP-21 expires. These are priority issues for manufacturers and the surface transportation authorization currently offers the best and most efficient method for ensuring stable and continuous investments in roads, bridges and transit systems.

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)

Ask an Expert: What’s next after WRRDA?

The recent passage of the Water Resources Reform and Development Act (WRRDA) of 2013 (H.R. 3080) marked a significant victory for manufacturers. The long-overdue reauthorization invested in our nation’s 12,000 miles of inland and coastal waterways, which are responsible for transporting products and commodities valued at $185 billion per year. With WRRDA completed, our attention is focused on what is poised to be a significant year ahead for transportation policy.

Federal funding for highway and transit programs is set to expire Sept. 30, 2014. Congress passed the current authorization—the two-year, $105 billion Moving Ahead for Progress in the 21st Century Act (MAP-21)—after three years and ten short-term extensions of the previous funding bill. The NAM is working to ensure a robust, multi-year surface transportation reauthorization that builds on the bipartisan success of WRRDA. Manufacturers cannot afford the uncertainty that results from patchwork legislation.

Any transportation funding bill must, of course, address imminent Highway Trust Fund shortfalls. This could prove to be the biggest challenge in the reauthorization. Current predictions place the Highway Trust Fund on a path to insolvency sometime in 2015. The vast amount of investment needed for functional highway and transit programs is not something that states can shoulder on their own. If funding ceases, the entire manufacturing supply chain would be at risk. The Highway Trust Fund operates on user fees, and the NAM urges members of Congress to maintain that model as they negotiate a long-term fix.

Manufacturers are in agreement that their competitiveness hinges on sound infrastructure. A majority of manufacturers participating in a joint NAM/Building America’s Future survey said that U.S. infrastructure is in fair or poor shape, while roads in particular are getting even worse. U.S. infrastructure is not positioned to respond to the competitive demands of a growing economy. The NAM is hoping to change that through the next transportation bill. An investment in infrastructure is an investment in manufacturing.

Robyn Boerstling is the director of transportation and infrastructure policy at the National Association of Manufacturers.

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)

A Manufacturing Blog

  • Categories

  • Connect With Manufacturers

  • Blogroll