This morning NAM President and CEO Jay Timmons testified before the Joint Economic Committee on the state of manufacturing in the United States. The hearing was titled “Manufacturing in the USA: Why We Need a National Manufacturing Strategy.”

Here is a brief excerpt of Jay’s testimony before the committee:

Nonetheless, the NAM remains concerned about the significant challenges faced by manufacturers in the United States. Despite the critical role the industry plays in the economy, taxes, legal costs, energy prices and burdensome regulations make it 18 percent more expensive to manufacture a product in the United States than in any other country. That’s without even taking into account labor costs.

Layered on top of these higher costs is the broad uncertainty faced by American businesses that includes “on-again, off-again” tax policy and an unpredictable regulatory environment. Manufacturers also increasingly are concerned about the impact of the historically-high levels of the federal deficit and the national debt on manufacturing and the overall U.S. economy.

The NAM will continue to push for the policies we have outlined in our “Manufacturing Strategy for Jobs and a Competitive America.” This blueprint will help boost the competitiveness of manufacturers of all sizes which is essential for our economy and job creation. 

To watch the video of today’s hearing please click here:

This morning the Republican Caucus released a new economic plan, America’s Job Creators: Empowering Families, Small Businesses and Entrepreneurs.

Manufacturers are pleased to see that these critical economic issues are being discussed in Congress and believe many of the proposals put forth will address the need to establish a level of certainty for job creators to invest in the future, expand, and enhance America’s global competitiveness.

Key points of the Plan Include:

·         Pass the pending Free Trade Agreements with South Korea, Panama and Columbia

·         Address the Tax Code to Help Job Creators

·         Encourage Economic Growth

·         Maximize Domestic Energy Production to Ensure an Energy Policy for the 21^st Century

·         Pay Down America’s Unsustainable Debt

This proposal serves as a starting point for congressional debate moving forward. Manufacturers believe Congress must adopt a strategy that will reduce the aggressive regulatory burden of the federal government and reform our tax code, lowering the corporate tax rate for manufacturers large and small, while at the same time protecting those businesses that file as individuals as well.

Manufacturers are pleased to see the proposal and look forward to the coming congressional debate on these important issues.

For more on the plan:

·         PDF of the Full Plan

·         Information on the Plan

·         Summary on the Plan

·         1-Pager on the Plan

Grant Thornton reports its latest survey of top executives, announcing the results in a news release, “91% of manufacturing execs optimistic about the growth of their company in coming months“:

CHICAGO, Mar. 16, 2011 – Senior management at U.S. manufacturing companies are significantly more optimistic about their own companies’ growth than they were just three months ago in November, according to a Grant Thornton LLP February survey. Nine in 10 (91%) report that they are optimistic about their companies’ growth in the next six months, up from 81% in November.

As for the economy, 60% believe that the U.S. economy will improve in the next six months, up from 49% in November. However, those planning to increase hiring in the next six months saw a drop to 44% in February from 49% in November.

“We believe that the decrease in expected hiring despite an overall high level of optimism is because manufacturing executives feel some uncertainty about the future of manufacturing in the U.S.,” said Wally Gruenes, Grant Thornton’s national managing partner for Consumer and Industrial Products and a member of the Board of Directors of the National Association of Manufacturers (NAM). “These executives believe that the United States government has no battle plan to make American manufacturing more competitive in order to create more good-paying jobs. In fact, to the contrary, they believe Washington has created a climate that has made American manufacturers less competitive over the years.

“Rather than spending scarce resources on employees, manufacturing executives are spending on capital equipment purchases and technology to improve productivity and lower costs in an effort to be more competitive globally,” continued Gruenes.

With regard to reducing the U.S. government budget deficit, manufacturing execs favor cutting spending 4 to 1 over raising taxes.

There’s a breakdown of the results and a citation of the NAM’s “Manufacturing Strategy for Jobs and a Competitive America.” Gruenes says, “Based on my discussions with manufacturing executives, they support NAM’s strategy, but are skeptical that the current administration will act on their recommendations.”

Dyke Messinger, a member of the National Association of Manufacturers’ board of directors, testified this week before the House Committee on Education and the Workforce, a hearing, “State of the American Workforce.” Dyke is president and CEO of Power Curbers, Inc., a manufacturer of curbing machines. 

From his prepared testimony:

The United States is the world’s largest manufacturing economy, producing
21 percent of global manufactured products. U.S. manufacturing alone makes up 11.2 percent of our nation’s GDP. More importantly, manufacturing supports an estimated 18.6 million jobs in the U.S. – about one in six private-sector jobs. To put this in context, this is about the equivalent of the entire populations of the five largest cities in the U.S.: New York City, Los Angeles, Chicago, Houston and Phoenix combined. Nearly 12 million Americans (or 9 percent of the workforce) are employed directly in manufacturing. Manufacturing jobs are high paying jobs, too. In 2009, the average U.S. manufacturing worker earned $74,447 annually, including pay and benefits – 22 percent more than the rest of the workforce.

But today’s manufacturers face many challenges to our global competitiveness and job creation efforts. Proposals that increase taxes and impose new regulations will make business in the United States less competitive. These proposals will stifle the already weak recovery and destroy manufacturers’ ability to create jobs. 

Dyke’s testimony drew on the NAM’s “Manufacturing Strategy for Jobs and a Competitive America.” 

Others testifying were: 

• Robert F. McDonnell, Governor of Virginia
• Douglas Holtz-Eakin, President, American Action Forum
• Heather Boushey, Senior economist, Center for American Progress

Coverage …

WHSV, “McDonnell Discusses Job Creation on Capitol Hill”

Examiner.com, “McDonnell gives top marks to Rep. Ryan’s SOTU response”

The White House has already identified competitiveness and jobs as major themes in President Obama’s State of the Union address tonight, and manufacturers believe those are exactly the right issues to put front and center before the American people. Now we are waiting for the details, including specific policy proposals and actions.

Jay Timmons

Manufacturers are proud to be leading the way in the economic recovery. Last year, manufacturing reported its first gain in U.S. employment since 1997: The number of manufacturing jobs in the United States in 2010 grew by 1.2 percent, or 136,000. Economists expect the trend to continue over the next few years, demonstrating that manufacturing means jobs.

We want to do more to create jobs – much more – and there’s still a long way to go. Unemployment has been stuck above 9 percent since June 2009, and hiring traditionally lags behind economic growth.

The National Association of Manufacturers has laid out a clear strategy to achieve the goals for a dynamic, growing and competitive U.S. economy: our “Manufacturing Strategy for Jobs and a Competitive America.”

The stage is well set, and manufacturers are waiting with anticipation for the State of the Union. We might very well disagree with some details in any substantive proposal that President Obama makes tonight, but we understand that a proposal is just the first step toward final action. And our goal is simple – let us create jobs.

Manufacturers want America to be more competitive, and we want economic growth to lead to more jobs. In that, we agree with both President Obama and Congress.

Jay Timmons is president and CEO of the National Association of Manufacturers.

I’m Jay Timmons, the new President and CEO of the National Association of Manufacturers (NAM). I may spend most of my time in Washington, D.C., but my principles and motivation are driven by being part of a family with manufacturing roots in Chillicothe, Ohio.

Jay Timmons

My grandfather had a strong commitment to his community and country that came from being a manufacturing employee who helped innovate and make things that contributed to everyday life. These values are with me today as we all fight to help U.S. manufacturers retain their edge in a highly competitive global marketplace.

Here at the Manufacturers, our responsibility is to be the voice of the more than 12 million Americans employed directly in manufacturing. Today, the United States enjoys the distinction of being the world’s largest manufacturing economy, and U.S. manufacturers perform half of all research and development activities in our nation, driving more innovation than any other economic sector.

But manufacturers face significant challenges because our competitors around the world are working hard to take our leadership position away from us. Elected leaders on both sides of the political aisle agree — “Manufacturing Means Jobs” — and we’ve developed a detailed plan called “Manufacturing Strategy For Jobs and a Competitive America”. It’s a blueprint that will promote sustained economic growth and job creation – right here – in the United States.

I strongly believe this is the right strategy to take our nation forward and enable us to maintain our competitive edge against our competitors. I invite you to share this agenda with manufacturers on the frontlines and those living in communities that rely on manufacturing for their economic vitality. Our Strategy focuses on important issues that have a dramatic impact on manufacturing, such as government oversight and regulation, taxes, trade and energy policy among others.

Manufacturing not only means jobs –- it means opportunity, innovation, security and economic growth. So, join us in this effort to preserve and build on the greatness that people like my grandfather and those in manufacturing today have built for our nation.

I am excited to lead this association and I look forward to working with our dynamic companies to make the United States the best place in the world to be a manufacturer and to be a manufacturing employee.

Gov. Chris Christie did not mention manufacturing or industry in his State of the State address Tuesday. His speech, entitled “For New Jersey: It’s time to do the big things,” instead concentrated on fiscal issues and highlighted Gov. Christie’s efforts to turn the state and state government around, making it more responsive and competitive.

But you don’t have to cite the specific words — manufacturing, industry — to be relevant to manufacturers. The emphasis on competitiveness should indeed strike a chord with business, industry and the citizens of New Jersey. Christie, a Republican, said:

For New Jersey: it’s time to do the big things. For this year, the biggest things fall in three categories:

One: We must stick to the course of fiscal discipline.
Two: We must fix our pension and health benefit systems in order to save them.
And three: We must reform our schools to make them the best in the nation.

On these three, what is at stake is no less than the future of New Jersey.

You see, we are in a global competition, and we are in a competition among states.

If we cannot shed regulations, reduce spending, and hold the line on taxes, we cannot attract and create the jobs our citizens so desperately need.

If we cannot make the promises of our pension system more realistic, there will be no pensions.

And if we cannot repair our schools, our people will not be ready for the jobs of the future.

The National Association of Manufacturers has long emphasized the need for the United States and U.S. government to create an economic and business climate that is more globally competitive. (See our 2010 policy guide and call to action, “Manufacturing Strategy for Jobs and a Competitive America.”) Gov. Christie’s remarks fit well with that vision of competitiveness.

From The Pittsburgh Tribune-Review, “U.S. Steel CEO says U.S. manufacturing in crisis“:

Manufacturers need a national agenda that addresses trade, environmental and tax issues so they can compete in the global marketplace, the CEO of U.S. Steel Corp. said Tuesday.

“There is a crisis in U.S. manufacturing … that transcends the current global economic downturn. The crisis is real. It’s not cyclical, it’s not imagined, and it’s not going away on its own,” John Surma said at a World Affairs Council of Pittsburgh event in the Duquesne Club, Downtown.

A pro-manufacturing agenda must be focused on “making American manufacturers more globally competitive and highlights the need for tax policies that are aligned with global competitors (and) initiatives that will reduce trade barriers and open markets for U.S. exports,” Surma told 80 people from businesses and schools.

Surma’s remarks were titled, “Manufacturing and Trade in the Era of Globalization, A Perspective from the Steel Industry.”  More coverage …

• Bizjournals.com, “Surma: US manufacturing in crisis“
• Pittsburgh Post-Gazette, “US Steel chief calls for enforcement of trade rules“

And this provides another welcome opportunity to link to the National Association of Manufacturers’ “Manufacturing Strategy for Jobs and a Competitive America.” It’s the NAM’s policy guide and call to action for a national manufacturing strategy.

Kirk Liddell, president and CEO of the IREX Corporation in Lancaster, Pa., shares his thoughts on the announcement of a new manufacturers’ group in Pennsylvania. (See Pittsburgh Times, “National, state manufacturing groups unite.”)

As a manufacturer in the state of Pennsylvania, I know how essential manufacturing has been to our state’s and nation’s economy. Our economy is struggling and businesses – like mine – face significant uncertainty. We need policies that encourage investment and lead to job creation. We need policies that allow manufacturers to compete. That’s why I am pleased to serve as a part of the Pennsylvania Manufacturing Group, a partnership between the NAM and the Pennsylvania Manufacturers’ Association (PMA).

Through this new effort, manufacturers in Pennsylvania are joining together to educate and inform elected officials and candidates for office on key issues impacting manufacturing. IREX Corporation, and 30 other manufacturers want to ensure those representing us in Congress, as well as our local and state officials, understand the policies manufacturers need to compete.

We hope to have a discussion with both Pennsylvania Senate candidates, Joe Sestak (D) and Pat Toomey (R) in the coming weeks about our manufacturing agenda. We will encourage them to endorse the NAM’s strategy and help us public advocate for these important policies. We also look forward to engaging current lawmakers and other candidates statewide seeking federal office on the right policies needed for manufacturing.

The strategy he’s referring to is the National Association of Manufacturers’ “Manufacturing Strategy for Jobs and a Competitive America.”

The Pennsylvania Manufacturers’ Association’s website is here.

From House Majority Leader Steny Hoyer’s office, an e-mailed news release Wednesday, “Hoyer: Make It In America Agenda Continues to Move Forward”:

WASHINGTON, DC – House Majority Leader Steny H. Hoyer (MD) released the following statement after the Congressional Made In America Promise Act and the Berry Amendment Extension Act passed the House today with strong bipartisan support:

“As Democrats continue to focus on job creation, a key piece of boosting the economy is strengthening our manufacturing sector.  With our Make It In America agenda, Democrats are working to increase good, manufacturing jobs right here in the U.S.  Today we passed two bills that emphasize the need to make more products in America.   The President has already signed three pieces of our Make It In America agenda into law, and I hope these bills are swiftly enacted as well.”

The bills:

• H.R. 2039, to clarify the applicability of the Buy American Act to products purchased for the use of the legislative branch, to prohibit the application of any of the exceptions to the requirements of such Act to products bearing a Congressional seal. It passed on the suspension calendar by 371-36. (Roll no. 521). Apparently Congress had previously exempted itself from the procurement requirements placed on other branches of the federal government.
• H.R. 3116, the Berry Amendment Extension Act, to prohibit the Department of Homeland Security from procuring certain items directly related to the national security unless the items are grown, reprocessed, reused, or produced in the United States, and for other purposes. There are exemptions.

The National Association of Manufacturers’ “Manufacturing Agenda for Jobs and a Competitive America” lays out a comprehensive plan for strengthening the U.S. manufacturing sector and job creation.