Federal Reserve Raised Short-Term Rates Again, Signals Two More Hikes in 2017

By | Economy, Shopfloor Economics, Shopfloor Main | No Comments

As expected, the Federal Open Market Committee (FOMC) voted to raise short-term interest rates by 25 basis points, upping them just three months after the last action. In doing so, the Federal Reserve noted better economic data and increased pricing pressures. Specifically, the statement cited a strengthening labor market, moderate growth in consumer spending and business investment that has “firmed somewhat.” While inflation is picking up, the FOMC predicts that prices “will stabilize around 2 percent over the medium term.” Nonetheless, it wants to stay ahead of such pressures while inflation is still at acceptable ranges. Hence, the Federal Reserve will continue its process toward normalized rates, and according to the latest economic projections, participants still see three rate hikes—or two more after this one—in 2017. Assuming those increases in the federal funds rate were also 25 basis points, the target range would be at 1.25 percent to 1.50 percent by year’s end (up from 0.75 percent to 1.00 percent after this action).

Of course, future Federal Reserve moves will hinge on incoming data, and more aggressive action might be necessary if the U.S. economy and/or inflation accelerate beyond current expectations. Along those lines, the economic forecasts did not change much from December. Participants see 2.1 percent growth on average in real GDP in 2017, with the unemployment rate falling to 4.5 percent. They also predict core inflation of 1.9 percent. Looking to 2018, FOMC members anticipate thee additional federal funds rate hikes, with real GDP growth of 2.1 percent once again. They forecast core inflation to be 2 percent.

Neel Kashkari, president of the Minneapolis Federal Reserve Bank, was the only dissenter. He preferred to keep short-term interest rates unchanged, at least for now.

Manufacturers Hail February Jobs Numbers

By | Media Relations, Shopfloor Economics, Shopfloor Main | No Comments

National Association of Manufacturers (NAM) President and CEO Jay Timmons issued the following statement on the February jobs numbers issued by the Bureau of Labor Statistics today:

“Today’s news is another strong indicator of the ‘Trump bump’ of positive economic activity. Across America, manufacturers’ confidence is high, and business optimism continues to soar, because of President Donald Trump’s laser focus on policies that will accelerate a jobs surge in America. To keep the momentum going, manufacturers have the solutions: regulatory reform, infrastructure investment and bold tax reform. We are ready to work with the president, Congress and anyone who cares about the manufacturing economy to get those priorities across the finish line and raise the standard of living of all Americans.”

Learn more about the NAM’s agenda for increasing manufacturing competitiveness and growing jobs here.

Energy Revolution Powers Exxon Job Announcement

By | Energy, Presidents Blog, Shopfloor Main | No Comments

Great news out of Houston today. Exxon Mobil Corporation announced it will be investing in manufacturing jobs in Texas and Louisiana—to the tune of $20 billion over 10 years. This announcement is important because it demonstrates the connection between domestic energy production and manufacturing. These investments will lead to the creation of thousands of high-paying manufacturing jobs, and it’s all made possible thanks to the domestic energy revolution.

Manufacturers depend on affordable, accessible energy to power their operations and as a raw material. Without the expanded domestic energy production of recent years, an announcement like today’s wouldn’t be possible. Across the United States, manufacturers are being empowered to expand and grow because of access to affordable energy, and America’s energy industry is boosting manufacturing jobs in the United States.

Since 2011, the National Association of Manufacturers has released a series of economic reports all showing that if the United States develops its vast energy resources, manufacturing will grow. Today’s announcement is a sign of what’s possible and a reminder that the future is bright if we continue to invest in energy development and infrastructure in the United States.

Read more about Exxon’s exciting announcement here.

#StateofMFG Week 2 Media Wrap: Taking Care of Business from the Badger State

By | Media Relations, Shopfloor Main | No Comments

After visiting six states (plus the White House) over the span of seven days, the National Association of Manufacturers’ (NAM) State of Manufacturing Tour has concluded. Over the course of a week, the NAM has taken our story to the masses with hundreds of articles, op-eds and television and radio interviews. Our final stop in Madison, Wis., at the Wisconsin Manufacturers & Commerce’s (WMC) Business Day in Madison event, featured an especially stellar lineup of interviews with Gov. Scott Walker (R-WI), manufacturing CEOs from around the country and NAM President and CEO Jay Timmons.

Some highlights below (click on images to view clips):
image3Timmons participated in a live interview on CNBC’s Squawk on the Street, issuing reaction to last night’s speech by President Donald Trump and highlighting the NAM’s participation in Business Day in Madison as part of the 2017 State of Manufacturing Tour. View the clip here. (Photo credit: David Bohrer/National Association of Manufacturers)

 

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Gov. Scott Walker (R-WI) discussed the future of manufacturing and the policies we need to see from this administration to support manufacturing competitiveness in Wisconsin and across the country. Full interview available here.

 

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Snap-on Chairman and CEO and NAM board member Nick Pinchuk joined CNBC on-site from Business Day in Madison to discuss the future of manufacturing. The full interview is available here. (Photo credit: David Bohrer/National Association of Manufacturers)
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Timmons chats with Briggs & Stratton Corporation Chairman, President and CEO Todd Teske before Teske gave an interview to CNBC on location from Business Day in Madison, as part of the NAM’s State of Manufacturing Tour push to discuss the future of manufacturing. View the interview here. (Photo credit: David Bohrer/National Association of Manufacturers)

 

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Manitowoc Company President and CEO Barry Pennypacker gave an interview on FOX Business to discuss the future of manufacturing. Click here to watch the full interview.

 

Gov Allen
Gov. George Allen (R-VA) joined FOX Business today to discuss the policies needed to support the future of manufacturing, highlighting the NAM’s role in advancing those priorities in the White House and Congress. The full interview is available here.

 

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Timmons interviewed live on the Jerry Bader Show (WTAQ-Green Bay) to discuss the State of Manufacturing Tour and the NAM’s response to last night’s speech by President Trump. Listen to the interview here.

 

Local

WBNS (CBS) News covered the NAM’s State of Manufacturing Tour visit to the Anheuser-Busch facility in Columbus, Ohio. The full clip is available here.

 

Madison NBC

Madison’s NBC affiliate station reported on Business Day in Madison,” highlighting Gov. Walker’s and Timmons’ roles in the event. Full clip available here.

 

 

President Trump Listened to Manufacturers and Is Acting Decisively on Our Solutions; This Was a Speech Americans Expect of a President

By | Presidents Blog, Shopfloor Main | No Comments

Madison, Wisconsin, February 28, 2017 – National Association of Manufacturers (NAM) President and CEO Jay Timmons issued the below statement on tonight’s joint address to Congress by President Donald Trump. Timmons is in Madison, Wis., on the final leg of the NAM’s weeklong State of Manufacturing Tour, which has traveled the country to highlight real-world solutions to grow manufacturing:

          “Tonight, Donald Trump hit the reset button and offered a message of unity and economic opportunity. Manufacturers are grateful for his message to rekindle the American spirit. This is what the American people needed to hear. This was a speech Americans expect of a president.

          “The president demonstrated that he listened to the concerns and policy proposals from the National Association of Manufacturers. And he outlined a bold plan to act on our key priorities in order to ensure the government will be a partner in creating the economic environment we need to compete, succeed, invest and create jobs for Americans. 

          “Manufacturers are energized by the president’s proposals for competitive tax and smart regulatory reforms, as well as his call for significant investment in our nation’s infrastructure. Manufacturers are ready to stand with him as he pursues $1 trillion of long-overdue investment in infrastructure, or as he declared: a ‘new program of national rebuilding.’ Manufacturers are also ready to work with Congress and the administration on comprehensive tax reform, and we look forward to seeing the president’s plan to provide a transformational jolt for manufacturers and our economy.

          “President Trump is confidently and forcefully putting the weight of the White House behind manufacturers’ goals on our key priorities, including reducing health care costs to employers. These actions will encourage more investment and create more jobs in the United States to help lift all Americans up and leave no one behind.

         “Manufacturers will continue rolling up our sleeves and working to get deals done on our ‘Competing to Win’ agenda and help the Trump administration secure progress on our immediate priorities. The needs are urgent.

           “It is now time to put politics aside for our industry and our country, because the only red and blue in manufacturing is on the flag that hangs in every shop floor.

          “Well done, Mr. President.”

Learn more about the NAM’s Competing to Win priorities here.

-NAM-

ShopTalk Podcast: Under the Hood of Modern Manufacturing

By | General, Shopfloor Main, Shopfloor Policy, ShopTalk | No Comments

The National Association of Manufacturers sat down with Honda of America Vice President of Business Operations Pam Heminger to discuss modern manufacturing in America.

Heminger explains how Honda efficiently designs, produces and delivers its products and focuses on meeting its customers’ ever-changing needs. She also describes modern manufacturing as clean, bright and innovative and says that manufacturing has always been a part of her life.

Listen to the full podcast to learn more about Honda of America and modern manufacturing.

#StateofMFG Week 1 Media Wrap: LIVE FROM NEW YORK…

By | Media Relations, Shopfloor Main | No Comments

After taking manufacturing’s message to the White House yesterday, National Association of Manufacturers (NAM) President and CEO Jay Timmons and Emerson Chairman and CEO and NAM Board Chair David Farr took that same message to the airwaves. Timmons and Farr tagged up with national reporters to give the nation a readout of the meeting with President Donald Trump and to highlight the amazing stories already coming out of the 2017 State of Manufacturing Tour.  Click on the images below to watch the coverage.

Farr-Payne

Farr champions modern manufacturing and policies needed to grow the sector in an interview with FOX Business’ Charles Payne. Click here to view the clip.

 

Jay - CNBC

Minutes ahead of President Trump’s speech on Friday, Timmons appeared live on CNBC’s “Squawk on the Street” to discuss balancing burdensome regulations and reforming the tax code. Click here to view clip.

 

Farr - Varney2

Farr and Stuart Varney square off on policies needed to grow jobs on FOX Business’ “Varney & Co.” Click here to view clip.

 

Jay - Cavuto

Timmons gives a readout of the White House meeting with manufacturers on FOX Business with Neil Cavuto on his show, “Coast to Coast.” Click here to view clip.

 

Jay - Quest

Timmons goes head to head with CNN business reporter Richard Quest about manufacturing jobs on CNN International’s “Quest Means Business.” Click here to view clip.

 

Jay - NPR

 Timmons jumped on the radio with NPR host Steve Inskeep on the station’s popular Morning Edition” show (5:00 a.m. to 9:00 a.m.) to discuss the evolving manufacturing workforce and the innovators Timmons has met so far on the State of Manufacturing Tour. Listen to full clip here.

My Meeting with President Trump

By | General, Shopfloor Main | No Comments

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This morning at the White House, President Donald Trump convened a group of business leaders to talk about growing the economy and creating jobs. As Chairman of the Board of the National Association of Manufacturers (NAM), I told him directly what actions manufacturers want to see from his administration and from Congress.

I outlined many of the solutions that the NAM has already compiled in “Competing to Win.” We talked about tax reform, regulatory reform, infrastructure investment and workforce development. But I really hammered home the point on regulations, perhaps the biggest roadblock for manufacturers right now.

For the average small manufacturer with fewer than 50 employees, regulatory compliance costs almost $35,000 per employee per year. And, according to a recent NAM study, manufacturers face more than 297,000 restrictions on our operations from federal rules and regulations. This burden is crazy, and it’s time for smarter and simpler regulations.

It is encouraging to have an administration that will take the time to sit down with manufacturers and hear what we have to say. He was eager to listen, and in private as in public, his commitment to manufacturing was evident. Manufacturers have the solutions. We just need our leaders to get the work done.

The president knows that other countries are beating us with smarter, fairer tax codes, investments in modern infrastructure and a more sensible, navigable regulatory environment. The world can’t match the productivity and innovation of the U.S. workforce, but without meaningful reform, working families will pay the price for our policy mistakes.

Yesterday, I was honored to help launch the State of Manufacturing Tour at Emerson in Austin, Texas. The tour will share with people across this country the same message I took to the president. And that message is that we all must work together if we are going to achieve the goal of making manufacturing—and America—even greater than ever before.

Creators Wanted! Say Hello to the Future of Manufacturing!

By | General, Shopfloor Main | One Comment

“Creators are wanted,” say many manufacturers across the United States. And the National Association of Manufacturers (NAM) is taking another step to populate the talent pipeline in America—with a new “Creators Wanted” video and infographic series we’re rolling out during the State of Manufacturing Tour. Over the next week, on the NAM’s digital platforms, you’ll begin to see the makings of the NAM’s new initiative to show parents and teachers, and thereby children, what modern manufacturing really looks like today (and will look like tomorrow). We’re grateful for the participation of Anheuser-Busch, Dell, Emerson, General Motors, Honda and PPG Industries, as well as BTE, Edward Marc Brands, HELM Boots, Marlin Steel and STIHL to help us get this series started.

We hope you’ll share these videos and infographics—because the numbers not only bear out the need but also the opportunity in modern manufacturing. At General Motors, for example, approximately 500 to 600 college graduates are hired every year—and, like the teammates featured in our videos, they might not be what you think of when you envision a “manufacturer.” Picture someone who can develop an app for your smart device. That’s part of an account we heard yesterday in Austin, Texas, when the tour visited GM’s IT Innovation Center—one of four such state-of-the-art operations in the United States. Overall, according to a study by the NAM’s Manufacturing Institute and Deloitte, over the next decade, 3.5 million manufacturing jobs will likely need to be filled.

So parents and teachers, let’s get millennials and members of Generation Z heading toward careers in modern manufacturing—a path to not just well-paying jobs but also to career longevity and the pride, and passion, that comes with making something tangible, real for us and our world.