The United States and India announced today an agreement that paves the way for implementation of the World Trade Organization (WTO) to implement the Trade Facilitation Agreement (TFA), the first multilateral trade agreement to be concluded in the history of the WTO. Progress on the TFA was halted in July, when a small group of countries – led by India – blocked consensus on implementing the TFA and raised concerns about the status of the WTO’s work on food security issues. The new compromise included no major revision of the original WTO deal struck last December, which provided for India’s food stockpiling to be shielded from legal challenge by a “peace clause.” The compromise clarified, though, that the legal shield would remain until a permanent solution was found. (continue reading…)
Here is this month’s Global Manufacturing Economic Update:
The global economy has seen its share of challenges this year. These include deflationary worries in Europe, decelerating growth in China and declining activity in South America, among others. Along those lines, the Bank of Japan announced on October 31 that it would increase the amount of its monthly asset purchases, stepping up its quantitative easing program in an effort to spur faster growth. As we noted in last month’s report, the United States fares pretty well in comparison. The International Monetary Fund slightly downgraded its global outlook, with world output now estimated to expand by 3.3 percent and 3.8 percent in 2014 and 2015, respectively. Yet, it raised its estimates for real GDP growth in the United States in 2014 from 1.7 percent to 2.2 percent. (continue reading…)
As Members of the 114th Congress descend on Washington for orientation, and the 113th Congress convenes for the upcoming lame duck session, manufacturers stand ready to work with our leaders to advance policies that will enable us to continue to grow and create jobs. Manufacturers believe that now is the time to set aside the differences that have resulted in gridlock, and focus on the pro-growth policies that brought voters to the polls. Simply put, it is time to govern and grow. (continue reading…)
The Bureau of Labor Statistics said that manufacturers hired 280,000 workers in September, a sharp uptick after the soft 236,000 hires observed in August. The September figure was the fastest pace since November 2010, or nearly four years.
At the same time, the number of manufacturing separations – including layoffs, firings and retirements – also increased, rising from 237,000 to 268,000. Therefore, there were 12,000 net new hires (or hires minus separations) in September, an improvement from the net loss of 1,000 manufacturing employees in August. In addition, net hiring has averaged 15,600 per month over the past five months (May to September), progress from the 5,000 average over the five months prior to that (December to April). (continue reading…)
Since 1948, Unverferth Manufacturing has been working to improve and serve America’s farm operations. From humble beginnings as a company begun by a son and his father in their family’s barn manufacturing and marketing dual and triple wheel systems and components, Unverferth today is a leading manufacturer and marketer of tillage equipment, pull-type sprayers, grain carts and grain wagons, and agricultural dual and specialty wheels. Today the company has three manufacturing facilities: two in Ohio and one in Iowa and eight sales branches across North America. (continue reading…)
The Bureau of Economic Analysis said that manufacturers added 0.81 percentage points to real GDP growth in the second quarter. As reported earlier, real GDP rebounded strongly in the second quarter after weakness in the first quarter, expanding by 4.6 percent. Durable and nondurable goods sectors contributed 0.51 percent and 0.30 percent, respectively, to second quarter real GDP growth. Indeed, real value-added increased by 8.0 percent for durable goods firms, with 5.4 percent growth for nondurable goods manufacturers. (continue reading…)
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…)
Ever wonder why the R&D credit is so important and why it needs to be made permanent? Well, if you have two minutes to spare, you can learn exactly why a permanent R&D credit would boost US innovation and jobs by watching The Tech CEO Council’s “Make the R&D Tax Credit Permanent” video. The video calls on Congress to make the credit permanent once and for all. The NAM agrees — it’s time to give manufacturers the certainty they need to once again make the US the world’s leading innovator. Click here to watch the video, and help spread the word that the R&D credit should be reinstated and made permanent now.
Manufacturers welcome the breakthrough in negotiations to expand the Information Technology Agreement (ITA) announced by the United States and China. Agreement between the United States and China will help move the ITA talks forward after being deadlocked for a year.
Ultimately, an expanded ITA could eliminate tariffs on about 200 additional technology products – or roughly $1 trillion in global sales each year, creating an estimated 60,000 new American jobs, enhancing innovation in the United States and increasing global GDP by roughly $190 billion. (continue reading…)
As part of “Investment Week” we want to highlight the role that pro-investment tax policy plays in the success of our nation’s manufacturing sector. These provisions are used by manufacturers large and small and are a particularly high priority for small and medium-sized manufacturers. In order to compete in a worldwide economy, manufacturers need to plan and invest and meet emerging needs. Extension of the pro-growth policies that expired at the end of 2013 would amount to a major step towards a tax code that will promote investment. (continue reading…)