Innovation

Bayer Corporation Opens Electric Vehicle Charging Station

Furthering its commitment to sustainability, NAM member Bayer Corporation last week opened an electric vehicle charging station for employees at its U.S. headquarters in Pittsburgh. The Bayer charging station is one of the 45 stations that will be built along Pennsylvania Interstate 376 as part of the “Energy 376 Corridor” project. The project’s goal is to create one of the most extensive charging station networks in the country. The station is located next to Bayer’s EcoCommercial Building Conference Center, which is a net-zero energy facility.

Dan Santmyer, Director of Operations at the Bayer Pittsburgh site, said in a press release, “the installation of the EV charging station is part of the company’s global commitment to sustainability. We are proud to provide our employees with the infrastructure that supports their efforts to drive, rent or purchase EV’s and reduce their personal footprint on the environment.”

Learn more about Bayer’s comprehensive sustainability program here.

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Kennametal CEO Speaks in Washington on Importance of Manufacturing

Today NAM Board Member and Kennametal Inc. Chairman, President and CEO Carlos Cardoso spoke at the National Press Club to discuss manufacturing and the need to bridge the gap between how the public views manufacturing and the actual reality of manufacturing in the United States.  

Mr. Cardoso called on manufacturing leaders to help spread the message and share the success stories and the importance of educating young workers about manufacturing careers. 

Kennametal also released a poll which shows that Americans are not as aware that manufacturing is leading the economic recovery and don’t believe manufacturing jobs are available. The NAM and manufacturers like Kennametal are working to change that perception and better educate the public and our leaders in government about the critical role of manufacturing in our economy and the need for highly skilled workers.

One of the main goals of the NAM’s Manufacturing Renaissance: Four Goals for Economic Growth is to ensure that manufacturers in the U.S. have the workforce that the 21st-century manufacturing economy requires.

From the Kennametal press release:

“The U.S. manufacturing sector has been steadily growing and right now, 600,000 manufacturing jobs are available,” Cardoso said. “Most of these positions require specialized skills and education, and as manufacturers, we have a responsibility to educate people about these opportunities and build the manufacturing workforce of the future. At Kennametal, we take this seriously and are helping to deliver the promise of manufacturing today through our actions.”

Joining Mr. Cardoso today were representatives from Greater Latrobe High School which is a partner in the company’s Young Engineers Program. Students in this program get to learn first-hand about manufacturing by participating in hands-on projects and mentoring from Kennametal engineers. This program is just one of many educational initiatives by manufacturers throughout the country to help educate students on manufacturing jobs.

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Westinghouse Nuclear Reactor an Important Step to New Sources of Energy

On December 22 the Nuclear Regulatory Commission (NRC) announced that it has certified Westinghouse Electric Company’s AP1000 reactor design. This is an improved reactor from every perspective including safety. It is the first time since the 1990s that NRC has approved a nuclear power plant design. This design will be used on two new power plants being built in the State of Georgia by Georgia Power, a Southern Company subsidiary.  NRC’s approval of this design will streamline the NRC licensing process and provide companies constructing nuclear power plants greater certainty. In addition, this will make it easier for Westinghouse, to market it reactor designs in a global economy. This in turn will create thousands of new jobs as our nuclear power plan industry will be renewed and the demand for supplies and parts will grow. It is estimated that 80 per cent of the components for the new Georgia plant will be made in the United States.

The Southern Company has made a significant investment in nuclear. They have already spent over $2 billion to get their project to this point and as the project moves forward it will mean thousands of new construction jobs and hundreds of permanent jobs when the plant is completed.

It is anticipated that the NRC will soon approve the first combined Construction and Operating License (COL) permit for a nuclear power plant in the United States. This will further streamline the licensing process and save millions of dollars and significantly reduce the construction to operation time frame. According to the NRC the last time a construction permit was issued to build a nuclear power plant was in 1978, 33 years ago. The last time the NRC issued an operating license was in 1996, 15 years ago. We are long overdue for a renaissance of nuclear power.  As manufactures use over a third of the energy produced in this country it heartening to see new sources of energy come on line that will help make our manufactures more competitive.

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Dreamliner Makes First Commercial Flight

Today was another historic day for the future of the avaition industry in the United States as the first Boeing 787 Dreamliner made its very first commercial flight. The All Nippon Airways flight was a charter flight from Narita to Hong Kong that last about four hours.

The Dreamliner is the most advanced and fuel efficient commercial jetliner ever produced.

Boeing 787 Dreamliner

Boeing 787 Dreamliner

The aerospace industry is extremely important to innovation and manufacturing in the United States. Yet companies like Boeing are continuing to face regulations and headwinds that make it difficult to compete in the global marketplace. The National Labor Relations Board’s complaint against Boeing is creating uncertainty throughout the economy for manufacturers and has put at risk thousands of jobs in the production of the Dreamliner.

Manufacturers are looking for policies out of Washington that will help them create jobs and foster innovations like the Dreamliner. More regulations just continue to dampen job creation and growth.

Additional media coverage of the Dreamliner’s first commercial flight:

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A Bittersweet Anniversary for the U.S. Research and Development (R&D) Tax Credit

The U.S. R&D tax credit, a proven tool for spurring innovation and creating jobs, has a bittersweet 30th anniversary on August 13. Bittersweet because the credit, the best R&D incentive in the world in the mid-1980s, is one of the weakest today.

This negative trend is bad for manufacturers and the economy, especially now that other countries aggressively court American manufacturers to move their domestic research by offering better and often permanent R&D tax incentives.  (To learn more about what other countries are offering, read this Deloitte survey of R&D tax incentives around the world.)

These countries have discovered the multiple spillover and societal benefits, like a higher standard of living, associated with the innovations derived from research. For sure, there has been a steady increase in the migration of domestic research offshore–the U.S. share of global R&D has dropped from 39 to 33 percent in less than a decade as more nations have entered the race to attract R&D dollars.

The credit’s power to spur innovation and create jobs hasn’t been helped by its history of lapses and retroactive extensions. Since its enactment in 1981, the credit has expired 14 times, including a one-year lapse in the mid-1990s that was never reversed—and the credit is set to expire once again at the end of this year.  The uncertainty caused by these stop-and-go credit extensions has had a damaging impact on companies’ future R&D budgets because companies cannot rely on the credit to exist for the duration of a research project, which typically spans 5 to 10 years for manufacturers.

R&D fuels innovations and technological advances that drive new product development and increased productivity—key factors necessary for growth in the manufacturing sector.  Many lawmakers are voicing repeated interest in creating a pro-manufacturing climate in the United States.  Now they can turn their words into action, specifically through enactment of H.R. 942, bipartisan legislation that would strengthen the alternative simplified research credit rate to 20 percent from its current 14 percent, and make it permanent.  There is a long history of bipartisan, bicameral congressional support as well as presidential support for a strengthened, permanent R&D tax credit.  Future anniversaries of the credit would be sweeter if the U.S. R&D tax credit’s incentive value is restored to a position of global leadership.

 
For more information about the R&D credit, visit the website of the R&D Credit Coalition.

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President Obama Visits Johnson Controls in Holland, Michigan

President Obama travels to the second happiest place in the U.S. today—Holland, Michigan.  The President is in Holland to talk about jobs and visit Johnson Controls’ advanced battery manufacturing facility.  He’s scheduled to arrive around noon central time.  (It looks like video of the arrival will be streamed here.)

The facility manufactures lithium-ion batteries for hybrid and electric vehicles.  When it is fully up and running, it will provide 320 jobs for the community.

Did you know that lithium is the lightest metal in nature?  It is.  That’s why it’s great for batteries.  According to Johnson Controls, “Its light weight and high energy and power densities make it ideal for vehicle applications where weight affects efficiency and volume affects ease and cost of packaging.”  Enhance your knowledge about lithium-ion batteries to impress your friends here.

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Manufacturing Makes an Appearance at First-Ever Twitter Town Hall

President Obama hosted a Twitter Town Hall yesterday to field questions from the tweeting public. (Here’s the transcript.)

In response to a question from “David,” the President touched on a number of issues that are important to manufacturers, like research and development incentives and the need for a strong manufacturing workforce.  The President, of course, recently endorsed the Manufacturing Institute’s Skills Certification System, and manufacturers continue to push for a strengthened and permanent R  & D tax credit.

Here’s the exchange:

MR. DORSEY:  Mr. President, 27 percent of our questions are in the jobs category, as you can see from the screen over here.  Our next question has to do about jobs and technology.  It comes from David:  “Tech and knowledge industries are thriving, yet jobs discussion always centers on manufacturing.  Why not be realistic about jobs?”

THE PRESIDENT:  Well, it’s not an either/or question; it’s a both/and question.  We have to be successful at the cutting-edge industries of the future like Twitter.  But we also have always been a country that makes stuff.  And manufacturing jobs end up having both higher wages typically, and they also have bigger multiplier effects.  So one manufacturing job can support a range of other jobs — suppliers and the restaurant near the plant and so forth.  So they end up having a substantial impact on the overall economy.

What we want to focus on is advanced manufacturing that combines new technology, so research and development to figure out how are we going to create the next Twitter, how are we going to create the next Google, how are we going to create the next big thing — but make sure that production is here.

So it’s great that we have an Apple that’s creating iPods, iPads and designing them and creating the software, but it would be nice if we’re also making the iPads and the iPods here in the United States, because that’s some more jobs that people can work at.

And there are going to be a series of decisions that we’ve got to make.  Number one, are we investing in research and development in order to emphasize technology?  And a lot of that has to come from government.  That’s how the Internet got formed. That’s how GPS got formed.  Companies on their own can’t always finance the basic research because they can’t be assured that they’re going to get a return on it.

Number two, we’ve got to drastically improve how we train our workforce and our kids around math and science and technology.

Number three, we’ve got to have a top-notch infrastructure to support advanced manufacturing, and we’ve got to look at sectors where we know this is going to be the future.  Something like clean energy, for example.  For us not to be the leaders in investing in clean energy manufacturing so that wind turbines and solar panels are not only designed here in the United States but made here in the United States makes absolutely no sense.  We’ve got to invest in those areas for us to be successful.

So you can combine high-tech with manufacturing, and then you get the best of all worlds.

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Patent Reform Protects Job Creators

Yesterday was a good day for manufacturers as the House of Representatives overwhelmingly passed H.R. 1249, the America Invents Act, which will make the first meaningful reforms for the U.S. Patent and Trademark Office (USPTO) in nearly sixty years. “No longer will American inventors be forced to protect the technologies of today with the tools of the past,” stated Representative Lamar Smith (R-TX), Chairman of the House Judiciary Committee.

Additionally, as reported in Politico:

“The legislation switches America to a first-to-file from a first-to-invent nation, expands the ‘prior art’ that can be used to challenge a patent and sets up a new regime to challenge patents at the patent office. In all, the legislation is designed to make patent approval swifter and make it easier to weed out low-quality patents.”

Passage will not only help with the creation of jobs, but it will also help save jobs. This legislation will give manufacturers in the U.S. the competitive advantage they need for future investments that will achieve the technological breakthroughs and groundbreaking innovation manufacturers in the U.S are known for.

Today’s coverage of the passage of H.R. 1249

  • Politico: Patent law rewrite clears House
  • The Hill: Controversial patent reform bill approved by House
  • National Journal: Industry, Universities Praises Passage of House Patent Bill
  • CNN: Patent reform is finally on its way

 

Click here to see Brian Raymond, Director of Technology and Economic Policy at the National Association of Manufacturers discuss the importance of patent reform and the America Invents Act.

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Manufacturing Changed a Generation

On Sunday the Chillicothe Gazette in Ohio ran an op-ed (“Manufacturing changes my family — and world — for the better“)  from National Association of Manufacturers President and CEO Jay Timmons about what manufacturing has meant to his family and what the future holds for manufacturing in the United States. 

Here is a brief excerpt from the op-ed:

During the Great Depression, my grandfather waited in line for six months for a job at the Mead paper mill. For proud Americans of my grandfather’s generation, a manufacturing job represented a promise of security, a better quality of life and a path to the middle class.

As the years passed, the growth of once-vibrant manufacturing cities slowed, in part because of the changing global economy and emerging competitors abroad. And although manufacturing means jobs — exceptionally good-paying jobs — policy-makers in our nation’s capital, Republican and Democrats alike, failed to respond.

So, as a result of Washington’s neglect and misguided policy choices, it is now 18 percent more expensive to manufacture a product in the United States than in any other country. That figure doesn’t include the cost of labor.

Now more than ever manufacturers need pro-growth policies from Washington that will enable them to create jobs and compete globally. This is why the NAM will contiue to advocate for the policies outlined in the Manufacturing Strategy for Jobs and a Competitive America to boost the competitiveness of manufacturers in the U.S.

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Toyota’s U.S. Production Recovering after Japanese Earthquake

Two months after the devastating earthquake in Japan, recovery continues. From Toyota, “Toyota to Boost North American Production Earlier Than Expected“:

ERLANGER, Ky. (May 11, 2011) – Toyota Motor Engineering & Manufacturing North America, Inc. (TEMA) will boost production earlier than expected following the March 11 earthquake and tsunami in Japan. Beginning in June, overall North American production will reach approximately 70 percent of normal levels, up from approximately 30 percent in May.

The improvement in parts availability from Japan is the result of countermeasure activities implemented by affected suppliers. Toyota will continue to evaluate production model-by-model on a monthly basis, with a goal to return to fully normalized production by late this year.

Models returning to 100 percent production in June are Avalon, Camry, Corolla, Highlander, Matrix, Sequoia, Sienna and Venza. (continue reading…)

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