This afternoon President Obama toured the facility and spoke at of Ellicott Dredges in Maryland. During his visit the President spoke about the importance of infrastructure projects. He announced a Presidential Memorandum to modernize infrastructure review and permitting regulations, policies and procedures.

Our nation’s infrastructure is in need of investment and repair. Manufacturers rely on our rails, roads, ports and waterways to deliver billions worth of commodities annually. It is a positive step that President Obama is discussing the need for reforms but we need real action to speed up the review process of many infrastructure projects. The environmental streamlining reforms in the Water Resources Development Act, which passed the Senate this week, are the types of reforms that we would need to see for future projects.

Just yesterday Peter Bowe, President and CEO of Ellicott Dredge Enterprises, testified before the House Small Business Subcommittee on Agriculutre, Energy and Trade about the benefits of Keystone XL.

“So what does the Keystone pipeline have to do with us, and why do we care? For us, it’s all about jobs, not construction jobs for the pipeline itself, but ongoing jobs every year for decades to come, all related to the production of oil from the Alberta oil sands deposits. This oil needs the Keystone pipeline. The oil sands in Alberta are one of the largest markets worldwide for dredging equipment. Our dredges are used to rehandle the tailings generated by the mining process. Tailings are the wet waste which is a combination of clay, sand, and water after the oil- bearing bitumen has been removed. All the oil sands projects generate substantial amounts of tailings which are deposited into ponds. Oil sands producers have been criticized for water usage, but now, thanks to tailings reclamation, they recycle 85% to 90% of water used, and dredges are an integral part of the recycling process.”

Keystone XL will create thousands of jobs and is critical for the competitiveness of companies like Ellicott Dredges. Keystone XL has been pending for more than 5 years, the time has come to approve this important energy and infrastructure project.

Chip Yost is assistant vice president of energy and resources policy, National Association of Manufacturers.

The Conference Board said that its Leading Economic Index rose 0.6 percent in April. The largest component of the increase stemmed from the jump in housing permits for the month, which exceeded the 1 million mark for the first time since June 2008. This factor alone added 0.4 percentage points to the Leading Economic Index. The other major factor helping to push this forward-looking measure higher were measures of credit, including the interest rate spread and the Conference Board’s index of credit conditions.

At the same time, the Leading index also highlighted some of the current weaknesses in the economy, particularly for manufacturers. Measures for new orders and the average workweek of production workers were net drags on the index. Indeed, manufacturing employment has been quite sluggish of late, with hiring unchanged in April. In addition, while consumer confidence did improve in April, it remains sub-par, lowering the index somewhat.

Meanwhile, the Coincident Economic Index – which measures the current climate – increased 0.1 percent in April. The higher figure resulted from stronger growth in nonfarm payrolls and personal income, with modest growth in new manufacturing sales. These increases, though, were mitigated by the 0.5 percent decline in industrial production in the month. As such, softness in the manufacturing sector has dampened the U.S. economy, something we continue to see in a number of economic indicators lately.

Chad Moutray is chief economist, National Association of Manufacturers.

Yesterday the House Committee on Small Business’s Subcommittee on Agriculture, Energy and Trade held a hearing on the Keystone XL and Small Business.  This hearing is that most recent in a number of hearings held by the House to talk about the importance of the Keystone XL pipeline project.

There were four witnesses, one of which was Mr. Peter Bowe, an NAM member, the President and CEO of Ellicott Dredge Enterprises, LCC. Ellicott Dredge makes dredging equipment that is used in the processing and the reclamation of tailing ponds at the mining site. President Obama is visiting the Ellicott Dredge facility in Maryland today to discuss infrastructure.

The other witnesses included Mr. Brent Booker, Secretary Treasurer, Building and Construction Trades Department, Department, AFL-CIO, ; Mr. Mat Brainerd, President, Brainerd Chemical Company, Tulsa, OK; and Mr. Christopher Knittel from the Center of Energy and Environmental Policy Research, Massachusetts Institute of Technology.

Peter’s business is a small business with about 200 employees in four locations, Maryland, Wisconsin and Europe. For Peter and the Ellicott Dredge organization, the Keystone XL is critical because it will move oil more quickly and result in additional demand. As oil demand increases so does the demand for his products and will result in $10s of millions of dollars being spend within his supply chain. These are small and large companies located throughout the United States. The ripple effect of spending within his supply chain is substantial and impacts a number of smaller communities throughout the country. (continue reading…)

The Federal Reserve Board said that industrial production declined 0.5 percent in April, more than double the consensus expectation of 0.2 percent. For manufacturers, production activity fell 0.4 percent in April, after a 0.3 decrease in March. This was the third time so far in 2013 that manufacturing production has contracted, decelerating the year-over-year pace from 2.4 percent growth in December to 1.3 percent in April.

Manufacturing capacity has also fallen, down from 78.3 percent in March to 77.8 percent in April. This brings the utilization rate back to where it was at year’s end, erasing the capacity gains seen in the first four months of 2013.

Durable goods production fell 0.4 percent; whereas, production in the nondurable goods industries fell 0.1 percent. Declining levels of manufacturing activity were mostly across-the-board, with only four of the 19 major sectors experiencing a gain for the month. The four sectors with higher production in the month were plastics and rubber products (up 0.4 percent), chemicals (up 0.2 percent), computer and electronic products (up 0.2 percent), and food and beverages (up 0.2 percent).

The largest declines were seen in the nonmetallic mineral products (down 1.7 percent), apparel and leather (down 1.6 percent), petroleum and coal products (down 1.5 percent), motor vehicle and parts (down 1.3 percent), and miscellaneous durable goods (down 1.1 percent) sectors.

When combined with Empire State Manufacturing Survey data out this morning, we get a true sense of just the sluggishness of growth for the sector right now. With exports that are barely growing and domestic sales softened by higher payroll taxes, it is clear that the manufacturing sector has still not emerged from pullback in activity that we began to see in the second half of last year. Uncertainties about the economy and the impact of government budget cuts continue to persist, preventing manufacturers from making large gains to output and employment. (continue reading…)

Here is the summary for this month’s Global Manufacturing Economic Update:

Last week, we learned that the U.S. trade deficit narrowed in March. While the headline number might seem positive at first glance, the trade gap shrunk on declining levels of both exports and imports. This report was one of the more disappointing ones of late. After slowing to 5.5 percent growth in 2012, manufactured goods exports have eked out only a 1 percent gain in the first three months of 2013 so far. The data suggest that export sales have essentially stalled. The largest weakness is in the European market, but exports to Canada—our largest trading partner—also declined. Asia and South America saw the largest gains, with manufactured goods exports to China up 9.3 percent during the first three months of this year relative to the same time period last year.

There has been considerable weakness in U.S. manufacturing data during the past few months, with the Institute for Supply Management’s Purchasing Managers’ Index (PMI) decelerating and manufacturing employment unchanged in April. Regional sentiment surveys have also suggested softness in the sector, with slower sales dragging optimism lower. Domestic policies are fueling weakness in the sector, including higher taxes, tighter government spending and regulatory uncertainties. Nonetheless, our largest trading partners continue to see slower sales, with discouraging export numbers highlighting the slowdown. (continue reading…)

Today South Korean President Park Geun-hye addressed a joint meeting of Congress as part of her visit to Washington. NAM Board Member and Quality Float Works CEO Sandra Westlund-Deenihan and company President Jason Speer attended the speech today as special guests of Speaker Boehner.

Quality Float Works CEO Sandra Westlund-Deenihan and President Jason Speer attend South Korean President Park Geun-hye's Speech before a joint session of Congress.

The South Korean market is extremely important to the Schaumburg, IL based Quality Float Works which manufactures metal floats and valves used for the gas, plumbing oil and agricultural industries. The trade agreements passed in 2011 with South Korea, Panama and Colombia have helped Quality Float Works and other small and medium-sized manufacturers expand into new markets which in turn supports economic growth and job creation here in America.

Free trade agreements are critical to our export growth. Exports to just our 20 FTA partners grew by more than $41 billion in 2012 and are up by nearly $230 billion since 2009. This makes up nearly 48 percent of all U.S. manufactured goods exports for 2012 and 60 percent of the increase in 2012 exports.

We must continue to do more to open new export markets for companies like Quality Float Works. With 95 percent of the world’s consumers outside our borders we rely on exports to grow our economy and jobs.

Yesterday, during a House Energy and Commerce Subcommittee hearing, former Sens. J. Bennett Johnston (D-LA) and Byron Dorgan (D-ND) stated their case for allowing the United States to export its vast energy reserves.  The Department of Energy is currently reviewing applications to export natural gas, and we expect a decision on at least some of the applications soon.  At the same time, the Army Corps is in various stages of permitting for expanded coal export capacity in the Pacific Northwest.  Both sets of export projects have received significant attention and scrutiny in Washington, D.C.

Sen. Dorgan spoke on behalf of the Bipartisan Policy Center (BPC), a nonprofit that boasts both Republican and Democratic members of Congress among its staff, as well as leaders from industry and environmental groups on its board of directors.

According to Sen. Dorgan, the BPC’s Energy Board reviewed the recent studies on the impacts of LNG exports and “concluded that domestic gas prices are more likely to drive export levels than exports are likely to determine domestic prices . . . that LNG exports are likely to have at most a modest impact on domestic natural gas prices—LNG exports will adjust as U.S. prices rise or fall.”  Dorgan went considerably broader than just natural gas, though.  He stressed: “restricting international trade in fossil fuels is not an effective policy to reduce global greenhouse gas emissions or to advance domestic economic interests, and we recommend against any such restrictions.”

That is precisely where the NAM stands on energy exports. Manufacturers fundamentally believe in free trade and open markets—a policy that extends to energy exports. We oppose bans or similar market-distorting barriers to our energy exports. We are pleased to see the BPC take the same stance.

Sen. Johnston, a Louisiana Democrat who spent 25 years in the U.S. Senate, put it eloquently:

“The free market might not always lead to everyone’s definition of the sweet spot, but experience has shown that it is a better allocator and regulator than bureaucrats and politicians. We should heed the admonition of Adam Smith that demand begets supply: Allow the free market to allocate the nation’s newfound energy bounty.”

Manufacturers believe in a true “all-of-the-above” energy strategy that embraces all forms of domestic energy production, including oil, gas, coal, nuclear, energy efficiency, alternative fuels and renewable energy sources. We are a country built on exports—the National Association of Manufacturers was founded because our members wanted to export—and we must continue to let the principles of free trade and open markets govern in the area of energy exports.

Ross Eisenberg is vice president of energy and resources policy, National Association of Manufacturers.

The Federal Reserve Board said that U.S. consumer credit rose by $8.0 billion, or 3.4 percent, in March. This was slower than anticipated, with the consensus estimate expected to show a $15.0 billion increase. Total debt outstanding was $2.8075 trillion, with $846.2 billion in revolving credit and $1.9613 trillion in nonrevolving loans outstanding.

The other big headline in this data was the decline in revolving loans for the month, which includes credit cards and other lines of credit. The value of revolving credit decreased by 2.4 percent for the month, and in the first quarter of 2013, it eked out just a 0.2 percent gain. In general, we have seen some deleveraging in revolving credit since the end of the recession, with these lines up just 0.2 percent and 0.4 percent in 2011 and 2012, respectively.

Regarding the decline in the March data, this is consistent with analysis showing an easing of both personal income and personal spending. This suggests that the pullback in purchases also meant a decline in credit card borrowing for the month.

Meanwhile, nonrevolving lines of credit increased 5.9 percent in March, or 8.1 percent in the first three months of the year. This category, which includes auto and student loans, has seen tremendous growth over the past couple years. These loans have helped to finance greater motor vehicle sales – one of the larger drivers of economic growth of late. But, growth in student lending, which is administered now by the federal government, has been tremendous, up 23.9 year-over-year. When you exclude the federal government from the analysis, nonrevolving loans were 3.3 percent higher than they were one year ago.

This suggests that consumer debt is consumer indebtedness has moved only modestly over the past 12 months. While overall credit outstanding is 5.7 percent year-over-year, the bulk of that growth was in auto and student loans, particularly the latter.

Chad Moutray is chief economist, National Association of Manufacturers.

Today the Senate will take up the bipartisan Water Resources Development Act of 2013, S. 601, also known as WRDA. This legislation is critical to the competitiveness of manufacturers throughout the United States and will ensure investment in our 12,000 miles of inland and coastal waterways.  Our nation’s navigable rivers help keep transportation costs competitive and are vital for manufacturers’ supply chains to move products and commodities such as coal, petroleum, chemicals, steel, fertilizer and grain among others valued at approximately $78 billion.

Manufacturers strongly support the measures included in S. 601 to streamline environmental reviews that build off the success of coordinated reviews for federal highway and transit projects. It’s a proven process that works, saving time and money. The Federal Highway Administration recently found that environmental streamlining has cut the time to permit a highway project in half, from 73 months down to 37 months. Reducing red tape to deliver Army Corps-sponsored infrastructure projects is important progress.

We are also hopeful that S. 601 will be enhanced in the days ahead to make the nation’s vast inland waterway system more efficient and competitive. The framework provided by the Reinvesting in Vital Economic Rivers and Waterways (RIVER) Act of 2013, S.407 should be included in the final version of S. 601. A comprehensive capital development plan is necessary to achieve the full potential of a robust inland waterway system.

Too often, funds derived from Harbor Maintenance fees are diverted elsewhere instead of going into our ports and harbors for regular upkeep. The WRDA bill will ensure that the fees collected are fully used for intended harbor maintenance projects. More than 90 percent of the nation’s top 50 ports require dredging and by neglecting ports and harbors we are putting our nation’s manufacturers and industries at a competitive disadvantage.

The Senate’s anticipated swift action this week should signal to the House the importance of soon moving on its version of WRDA legislation.

Manufacturers rely on our nation’s inland waterways and ports to support jobs and grow. Our nation will fall even further behind if we do not make the necessary investments in critical transportation infrastructure.

Robyn Boerstling is director of transportation and Infrastructure Policy, National Association of Manufacturers.

As the Senate prepares to take up the Water Resources Development Act (WRDA) of 2013 (S. 601) next week, manufacturers are preparing to articulate the importance of this critical legislation to the nation’s competitiveness and ensuring the country has a modern transportation infrastructure that is poised to meet the demands of increased trade and a growing economy. The nation’s inland waterways are a quiet mode of transportation but it is now time to turn the spotlight on to the value of this vast 12,000-mile system to manufacturing and other industries critical to the economy. The inland waterways help keep transportation costs competitive and move products and commodities valued at $78 billion.

To gear up for the anticipated Senate action on S. 601, manufacturers heard from a panel of experts at the National Association of Manufacturers (NAM) headquarters in Washington, DC.  More than half of the locks on waterways are more than 50 years old, and others date back to the turn of the last century, said Mike Toohey, president and CEO of the Waterways Council, Inc. “We’re not keeping pace,” Toohey added.

Our rivers, ports and harbors in the United States are unique natural resources that have tremendously benefitted our commercial success as an industrial nation. Maintaining these systems is a federal responsibility that is rooted in the Constitution and the founding of our nation. Awareness of the Harbor Maintenance Trust Fund and the fact that Congress has not kept pace with investments needed to keep the nation’s ports and harbors properly dredged to their authorized depths has reached a new high, said Barry Holliday, chairman of the Realizing America’s Maritime Promise Coalition.

National Waterways Conference President Amy Larson said that lawmakers in both the House and Senate are aware of the importance of WRDA. Senate Environment and Public Works Committee Chairman Barbara Boxer (D-CA) and ranking member David Vitter (R-LA) are committed to bringing the bill to the floor, while House Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA) is also working to build support.

Several challenges remain unresolved at this point in time but manufacturers appreciate the bipartisan effort the Senate and Environment and Public Works Committee has undertaken to develop the legislation.  It is time to invest in the infrastructure our manufacturers depend on. This legislation is long overdue.

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