The National Association of Manufacturers (NAM) yesterday urged the U.S. government to boost its efforts to protect U.S. manufacturing innovation against the threat of IP theft globally in a detailed submission to the Office of the U.S. Trade Representative (USTR). Innovation and intellectual property (IP) remains the foundation for a globally competitive manufacturing sector in the United States. Yet global infringement of IP, including patents, trade secrets, trademarks and copyrights, hurts the ability of manufacturers in the United States not to just innovate, but to sustain and create good-paying jobs. The NAM looks forward to working closely with the Trump Administration on stepped up and vigorous efforts to combat IP theft and to protect and secure strong enforcement of IP rights both at home and abroad. Read More
Today more than 400 businesses and business organizations sent a letter to the U.S. Senate urging support for the confirmation of Wilbur Ross as secretary of commerce. Spearheaded by the National Association of Manufacturers (NAM), the letter urges swift action on Mr. Ross’ confirmation.
“We believe that Wilbur Ross will bring a unique understanding of what it takes to fuel manufacturing enterprises to this vital role,” the letter reads. “Mr. Ross has a firsthand understanding of the challenges manufacturers face to remain globally competitive in today’s economy.”
Read the full letter here.
NAM President and CEO Jay Timmons also sent a letter yesterday on behalf of the NAM offering his support for Ross’ confirmation.
“Wilbur is a businessman with extensive experience in a wide range of industries who knows firsthand what policies it takes to promote competitiveness, investment, job creation and durable economic growth,” Timmons wrote. “In particular, Wilbur has extensive experience in the manufacturing sector and understands the critical need for pro-growth trade, tax and other economic policies.”
Timmons’ letter is available in its entirety here.
A highly interconnected global economy is a fact for manufacturers big and small throughout the United States. Advances in technology and transportation over recent decades have created substantial new opportunities for manufacturers in the United States to reach millions of foreign consumers. That interconnection has also brought increased competition from growing manufacturing sectors around the world, in some cases fueled by market-distorting and discriminatory trade practices that put our manufacturers, workers and communities at an unfair disadvantage.
When markets are open and rules of fairness and equal opportunity are enforced for all, manufacturers in the United States can and do succeed. Consider the following:
- More than half of the U.S. manufacturing workforce depends on exports for their jobs, and nearly half of all U.S.-manufactured goods exports are sold just to the 20 countries that have eliminated barriers through free trade agreements.
- Employees in the “most trade-intensive industries” earn an average compensation of nearly $94,000, or more than 56 percent more than those in manufacturing companies that were less engaged in trade.
With the world’s most productive manufacturing sector in the world, but a domestic market that represents only 10 percent of global consumption and growing global competition, manufacturers in the United States need more robust trade policies and agreements to grow. To be part of the solution, the National Association of Manufacturers (NAM) has shared with the Trump transition team our “Competing to Win” agenda, which includes a blueprint for a winning trade policy.
The NAM is calling on the new administration to focus on three key elements to ensure an open and fair trading system:
- Strong enforcement of global trade rules to crack down on cheating.
- Negotiation of new bilateral and other trade agreements to expand market access, raise standards, ensure fairness and equal opportunity and eliminate foreign market-distorting practices.
- Adoption of customs, financing, export control and other policies to make manufacturers in the United States more globally competitive.
Manufacturers are committed to working domestically and internationally to tap growth beyond our borders and eliminate foreign trade abuses to continue to expand a highly productive and innovative U.S. manufacturing sector that can continue to sustain and increase good-paying American jobs.
This blog is part of the NAM’s “12 Days of Transition” series, an effort to provide the presidential transition team and other Washington policymakers with a roadmap to bolster manufacturing in the United States. Read the other blogs in the series here.
Iowa Governor Has Been a Longtime Champion of Manufacturing
National Association of Manufacturers (NAM) President and CEO Jay Timmons and the NAM’s former Board Chair and current Chair of the Board of Vermeer Corporation in Iowa, Mary Andringa, released the following statements after the nomination of Gov. Terry Branstad (R-IA) to serve as the ambassador to China:
“Terry Branstad is the perfect pick for this important position. Working closely with Gov. Branstad and his outstanding team for many years, I know he is a man true to his word and has been tested over and over again as Iowa’s chief executive,” said Timmons. “From leading his state out of tough economic times to balancing Iowa’s budget, he understands what manufacturers and businesses need to invest and grow—and has a proven record of results.
“The governor’s deep understanding of China, and close relationship with Chinese President Xi Jinping, uniquely qualifies him for this vital post. For manufacturers, China stands as one of our largest trade and investment partners, but it is also a major challenge, imposing a range of market-distorting policies and practices that impact manufacturers in the United States,” said Timmons. “I have full confidence that Gov. Branstad will help forge a strong U.S.–China relationship that is based on the principles of fairness, respect and, most importantly, the rule of law. He understands that manufacturers are committed to building meaningful ties with China—but will not settle for anything less than a free and fair competitive landscape where both countries are playing by the same rules.”
“As the leader of an Iowa-based equipment manufacturer, I have worked closely with Gov. Branstad over the course of his many years of service to the state of Iowa,” said Andringa. “The governor is a pragmatic and inclusive leader who knows how to bring people together to solve problems and pursue opportunities. He has more than 30 years of experience working closely with Chinese leaders and has proudly hosted them in Iowa on numerous occasions. The governor knows the importance of a strong and constructive relationship with one of our largest trading partners, and he has the experience needed to represent us effectively in Beijing.”
CONTACT: Jennifer Drogus (202) 637-3090
The Obama administration closed the book on engagement with China last week with the annual meetings of the Joint Commission on Commerce and Trade (JCCT). These meetings, which ran from November 21 to 23 in Washington, D.C., pushed for full implementation of previous commitments and some new language on manufacturing-relevant issues, such as new commitments on China’s trade secrets and online anti-counterfeiting efforts, industrial policy issues in cybersecurity and competition and specific policy concerns in sectors like semiconductors, medical devices, pharmaceuticals and food processing. However, the session still focused more on statements of broad principle and extended dialogue, such as on overcapacity, versus the types of specific, concrete policy changes that are needed to address significantly the many longstanding issues facing the U.S. manufacturing sector in China.
At the end of the day, manufacturers need to see progress on these issues, and it is that concrete progress that manufacturers view as the benchmark for the U.S. approach to China. China stands as one of the United States’ largest commercial relationships, with more than $560 billion in bilateral trade and $3 billion in bilateral investment. While the third largest market for U.S.-manufactured goods exports, China also persistently ranks as one of the most frequently cited trouble spots for manufacturers in the United States, with a range of market-distorting policies and practices, such as industrial overcapacity, insufficient intellectual property infringement and protectionist industrial policies. All of these policies harm the ability of manufacturers to open new or expand U.S. factories, sell more at home and abroad and provide good-paying manufacturing jobs here in the United States.
Heading into the next administration, the U.S. government must strengthen U.S. efforts, working with the industry and global trading partners, to hold China accountable to both global trading rules and China’s own trade commitments so that China does not continue to advance its domestic industry at the expense of ours. Such efforts must produce smart, practical outcomes that hold China accountable, while also ensuring that manufacturers in the United States and their workers that depend on a rules-based trading relationship with China are not put at risk. Commercial dialogues like the JCCT are an important part of the toolkit to address those barriers alongside other bilateral and multilateral dialogues, work within the World Trade Organization and the robust use of trade enforcement tools both domestic and international as well as trade and investment negotiations that address additional market-distorting activities.
Manufacturers in the United States are committed to building a robust trading relationship with China but will not settle for anything less than a free and fair competitive landscape where both countries are playing by the same rules.
The National Association of Manufacturers (NAM) today urged the U.S. government and other stakeholders to address trade barriers faced by manufacturers in the United States in markets around the world. In its detailed submission to the Office of the U.S. Trade Representative for its National Trade Estimate Report (NTE), the NAM described a wide variety of foreign trade barriers that undermine the ability of manufacturers in the U.S. market to compete on a level playing field in international markets, which, in turn, undermines U.S. economic opportunities here at home. Read More
Texas Instruments Inc. (TI) is a Dallas, Texas–headquartered company that designs, manufactures, tests and sells a diverse portfolio of semiconductors and other products used by more than 100,000 of the world’s most innovative companies. TI’s semiconductors in particular are used in products that range from personal electronics and automobiles to industrial automation equipment, medical devices and heating, ventilation and air conditioning (HVAC) systems.
The global supply chain is critical for TI and all U.S. semiconductor companies that, on average, derive more than 80 percent of their total revenue overseas, with Asia representing more than half of that revenue. A semiconductor designed at one of TI’s U.S. facilities and fabricated at U.S. factories may be sent to Trans-Pacific Partnership (TPP) countries, such as Malaysia, for additional processing. From there, the semiconductor may then be shipped to a product distribution center in Singapore before being sent to the customer, which incorporates it into an end product and ships it anywhere in the world.
As Paula Collins, TI’s vice president of government relations, said on a recent NAM Trade Podcast, “A TI chip that was designed in Manchester, New Hampshire, may travel 13,000 miles around the world, and eventually end up in any country in the world.”
TI operates multiple manufacturing, design and other facilities in nine states across the United States. This includes semiconductor manufacturing facilities in Texas (Dallas area, Sherman and Richardson) and Maine (South Portland) as well as more than a dozen design facilities in states around the country, including Texas (Dallas area, Austin and Sugar Land), New Hampshire (Manchester) and Arizona (Tucson and Phoenix), just to name a few.
According to Ms. Collins, “The TPP will support jobs in the United States and enhance TI’s ability to compete in the rapidly growing Asia-Pacific region by eliminating tariffs on advanced electronics and establishing new rules of the road, including in areas that have not been addressed in previous trade agreements.” Beyond tariff elimination, TPP benefits for TI include the following:
- A prohibition on forced technology transfers as a condition of market access or investment
- A requirement that partner countries accept commercial products with encryption without additional disclosure of confidential intellectual property or source code
- Strong patentability standards and protection of trade secrets
- Strong counterfeiting enforcement and penalties, which are critical because counterfeiting costs the U.S. semiconductor industry billions of dollars each year
- A ban on data localization requirements, critical for manufacturers like TI that support customers around the world, as requirements to store data locally would significantly increase the costs of doing business
On the NAM Trade Podcast, Ms. Collins added that “trade is going to happen with us or without us. I would rather have the United States be at the table, helping to protect U.S. values, helping to protect U.S. workers, helping to protect the U.S. environment, to ensure that we are helping to shape globalization, rather than just responding to it.”
Read more “TPP in Real Life” stories here.
The United States and India concluded the last major bilateral commercial dialogue of the Obama administration today in Delhi, wrapping up a week of workshops and high-level bilateral meetings with a long joint statement on commercial topics. While this year’s dialogue included language that indicates discussion on issues that better reflects manufacturers’ priorities, such as discussions on intellectual property and customs clearance, it still lacked specific, concrete outcomes that manufacturers in the United States sought to be addressed in order to improve significantly U.S. commercial engagement with India.
If you’ve ever washed your hands or changed your child’s diaper in a public restroom, it’s likely you’ve encountered goods crafted in America by Bobrick Washroom Equipment Inc. Headquartered in Los Angeles, Calif., since its founding in 1906, Bobrick is the world’s leading manufacturer of restroom accessories for commercial building owners, and the company markets its products under the Bobrick, Gamco and Koala Kare brands. It manufactures products in California, Colorado, New York, Oklahoma and Tennessee.
While selling extensively throughout the United States, Bobrick has been able to grow by expanding its global focus. Bobrick exports restroom accessories to more than 100 countries in Europe, the Middle East, Africa, Asia and Latin America, including all Trans-Pacific Partnership (TPP) countries, and has operations in the United Kingdom, Singapore, United Arab Emirates and Australia.
According to Alan Gettelman, Bobrick’s vice president of external affairs, “Free trade agreements have lowered many of the tariff and non-tariff barriers that Bobrick has faced overseas, allowing us to improve access to these markets and increase our competitiveness. The elimination of all manufacturing tariffs under the TPP would level the playing field for our company’s exports to these countries, allowing us to boost sales of products crafted throughout the United States.”
To illustrate the importance of the TPP for Bobrick, consider the company’s SureFlo automatic soap dispensers, which are manufactured at its Los Angeles, Calif., facility. Imports of soap dispensers currently face duties of 24 percent in Vietnam, 5 percent in Malaysia and 5 percent in New Zealand.
As another example, Bobrick’s grab bars are manufactured in Clifton Park, N.Y., and face import duties of 20 percent in Vietnam, 5 percent in Malaysia and 5 percent in New Zealand.
And consider Bobrick’s Koala Kare brand baby-changing stations and child-seating products, which are manufactured in Denver, Colo., and face import duties of 25 percent in Vietnam and 5 percent in New Zealand.
Finally, take Bobrick’s restroom mirrors, which are manufactured in Jackson, Tenn., and Durant, Okla., and currently face duties of 34 percent in Vietnam, 30 percent in Malaysia and 5 percent in New Zealand.
All of these tariffs, and thousands of others, will be eliminated on U.S.-manufactured goods exports when the TPP is fully implemented. Bobrick will be able to see substantial savings immediately on many of its exports to these markets, and most of the duties facing its exports will be eliminated within four years of the TPP’s entry into force.
The TPP will also eliminate other discriminatory barriers faced by Bobrick and other manufacturers in TPP countries and will improve Bobrick’s ability to export through more transparent and streamlined customs rules. All in all, the TPP will help level the playing field for Bobrick and other manufacturers across the United States, helping U.S. manufacturing increase sales and support jobs right here at home.
Read more “TPP in Real Life” stories by clicking here.
If you have put your bags through a security screening device at airports and federal buildings or have known anyone who has needed out-patient oncology treatment, then you, like hundreds of millions of other Americans, have likely benefited from the technology manufactured by Smiths Group here in the United States, without ever realizing it.
Smiths Group employs more than 8,000 people in the United States at facilities in 40 states and across five divisions: John Crane, Smiths Medical, Smiths Detection, Smiths Interconnect and Flex-Tek. The company develops and applies leading-edge technology to create innovative products and solutions that range from health care, energy and petrochemicals to threat and contraband detection, telecommunications and equipment manufacturing. Though it’s headquartered in the United Kingdom, about one-third of Smiths Group’s workforce, half of its capital base and half of its revenue are located in the United States.
While sales in the United States are important to Smiths Group, as reflected by its big investments throughout the United States, so too are sales overseas. As the company seeks to expand its U.S. production, it also is working to export around the world medical technologies that save lives, screening technologies to help governments protect their citizens and products and services that ensure communities have the energy needed to power their societies. That is why trade agreements that will eliminate foreign trade barriers and improve standards, such as the Trans-Pacific Partnership (TPP), are so important to Smith Group’s U.S. operations and its employees.
For example, the United States currently exports $5 billion worth of medical devices to TPP markets each year. Currently, the United States faces tariffs as high as 30 percent on certain medical devices in Malaysia. Under the TPP, the tariffs on 99.9 percent of U.S. exports of medical devices will be eliminated immediately, making Smiths Medical’s lifesaving technologies more readily available to patients in need.
Another one of Smiths Group’s business divisions, John Crane, designs, manufactures and services a variety of products, including mechanical seals, couplings, bearings and filtration systems for industrial rotating equipment. This equipment is critical to the safety, efficiency, reliability and environmental footprint of rotating machinery.
A significant portion of John Crane revenue comes from the export of products to TPP countries, including Australia, New Zealand, Singapore and Vietnam. Once the TPP is implemented, the duty savings for John Crane’s exports of these goods to TPP countries will be reinvested to improve and expand its U.S. operations.
According to Chris Swonger, senior vice president of global government relations, “TPP is a unique opportunity for companies like Smiths Group to increase sales of goods and services in overseas markets through the elimination of unnecessary tariffs. As a result of these duty savings, Smiths Group will be able to expand research and development in new technologies, supporting new jobs and manufacturing in the United States.”
The next time you put your bags through a security device or stop by the doctor’s office, take a look to see if you benefit as well from a Smiths Group product manufactured here in the United States.