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Washington, D.C. – Following consideration today of a permitting amendment in the U.S. Senate, 51�Թ��� President and CEO Jay Timmons released the following statement:

“Red tape and permitting delays have plagued the manufacturing industry for decades, and the need for reform has only grown more urgent in recent years. Manufacturers have long called for Congress to repair the broken permitting process to minimize delays and reduce needless litigation that stands in the way of energy and resources projects and other investments. That will ensure we can get to work quickly on the investments that the bipartisan infrastructure law and the CHIPS and Science Act make possible. It will also ensure manufacturers have access to reliable and affordable energy while the grid evolves and as we work to improve air quality and reduce greenhouse gases.

“Ultimately, permitting reform effects every part of the American supply chain—from modernizing energy projects to building new manufacturing facilities. Today’s Senate vote, while unsuccessful, should serve as a step toward true bipartisan reform. Manufacturers appreciate the efforts of Sens. Joe Manchin and Shelley Moore Capito to push this priority forward, and we will continue to work with both chambers to achieve this goal.”

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 55% of private-sector research and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit www.nam.org.

This story can also be found within the 51�Թ���’s��R&D action center.

For companies like O-I Glass, Inc.—a glass manufacturing company headquartered in Perrysburg, Ohio—research and development just got a lot more expensive.

Until the beginning of 2022, businesses including manufacturers could deduct 100% of their R&D expenses in the same year they incurred the expenses—but a change in the tax law that took effect this year required businesses to spread deductions over a five-year timeframe. O-I Vice President of Global Tax and Business Services Scott Gedris explained how that impacts the company.

The scale: With 17 plants in 13 states around the country—and 70 plants in 19 countries around the world—O-I has a significant reach, serving both large multinational companies and smaller customers like microbrewers and small batch spirits manufacturers.

• The scale of the operation means that O-I invests significantly in R&D, working to develop innovative processes and specific product designs to meet individual customer needs.
• “If you look at our public financial statements, we spent $82 million in 2021 on R&D—primarily in the U.S.—and that is a significant investment for us,” said Gedris.

Case in point: In the past decade, O-I has invested heavily in developing more effective, efficient and sustainable processes. In 2011, it built a 24,000-square-foot R&D facility on its Perrysburg, Ohio, campus and has announced plans for a new glass manufacturing facility in Bowling Green, Kentucky, using technology developed at the Ohio facility.

• Because the company spends so much of its resources on R&D, a significant increase in the cost of investment would require it to make difficult decisions.
• “Anything that comes out of this in terms of tax dollars … creates a choice within our organization about where we allocate our capital,” said Gedris.

Environmental effects: At a time when O-I is making important investments in sustainability, a significant reduction in available resources could present obstacles to the company’s environmental goals.

• “When we rebuild a glass manufacturing furnace, that is a multimillion-dollar investment. The cost continues to increase with inflation and investment in modern technology that we need in order to meet our corporate sustainability goals,” said Gedris.
• “With the cost of that equipment increasing, if we’ve got $10 million less because of increased taxes, we need to evaluate whether we are going to rebuild a glass furnace in one of our 17 U.S. plants, or are we going to defer that? Alternatively, those dollars could come out of our R&D spend, which will impact what we are able to invest in future technology improvements.”

Human impact: Investments in innovation and R&D don’t just create better products and processes for consumers; they also support local economies across the country.

• “When we invest in a glass manufacturing furnace in these towns, it’s an investment in the community,” said Gedris. “We’ve got multigenerational glass manufacturers in those facilities. It’s a project that people depend on, and they have a lot of pride in the product and the processes at their facility.”

The last word: “When you’re investing in R&D, you’re investing long term—and that means you need certainty in the tax policy,” said Gedris.

Visit��the 51�Թ���’s R&D Action Center for critical R&D policy updates, industry stories and an opportunity to engage directly with your members of Congress.

This story can also be found within the 51�Թ���’s��R&D action center.

Miltec UV operates at the cutting edge of the manufacturing industry, developing new UV lamp systems for curing inks and coatings for everything from optical fiber to soup can lids. But after a tax law change went into effect in 2022, the Maryland-based manufacturer found that R&D became much more expensive—hampering its investments and tamping down its growth.

• Until the beginning of 2022, businesses could deduct 100% of their R&D expenses in the same year they incurred the expenses. Starting this year, however, a tax law change requires businesses to spread their deductions out over a period of five years, making it more expensive to invest in growth and innovation.

We spoke with Miltec UV President Bob Blandford to understand how the change was impacting his company and consumers in the United States and around the world.

The impact: Because the law changes the way businesses have handled investments for decades, companies like Miltec UV are having to grapple with a significant new cost that they had not anticipated previously.

• “Absent congressional action, we’re gonna get hit hard,” said Blandford. “Our taxes are going to go up dramatically. That’s cash getting sucked out of the business. So that’s going to get pretty ugly.”

A critical moment: Miltec UV is facing this challenge at a time when its leaders believe an exciting new opportunity is right around the corner. The company has developed a new technology for lithium-ion batteries, which could be used for next-generation electric vehicles.

• Over the past 11 years, Miltec UV has developed manufacturing electrodes used in these batteries, which will allow manufacturers to reduce costs and eliminate the toxic solvents used in existing battery manufacturing processes.

Yet, the new tax change threatens to place significant burdens on their development of this technology.

• “The problem is in the auto world; once they say go, it’s about a five-year process,” said Blandford. “They have to prototype, prove it, test it, then make the batteries. And during that time, we need to support R&D and support the business. So amortizing R&D over five years is a showstopper.”
• “We’re at a critical place now—we’re so close to commercializing it—and now we’re having to pay more taxes out,” said Blandford. “It hurts.”

A burden for employees: If not reversed, the harmful tax change will eat into profits, which Blandford is concerned may impact important benefits for employees. Earlier this year, Miltec UV signed on to the program—an association-wide 401(k) retirement and savings plan—as a way to improve benefits for employees. The program, which has resulted in cost savings for employees, has proved extremely popular, he added.

• However, “The tax change will have a tremendous negative impact on cash flow, so everything will be on the table,” including retirement benefits, Blandford said.
• “Our team is important to us, and the last thing we want to do is have a negative effect on paychecks and benefits,” said Blandford. “This absolutely will have a spillover effect on every part of the business.”

The last word: “Miltec funds 100% of the company’s R&D costs through the profits of its commercial business as opposed to outside investment,” Blandford said.

• “Spreading the R&D deduction over a five-year period means that each year we will now face a higher tax burden due to the inability to immediately deduct R&D expenses. That is real money that is desperately needed to stay competitive with employee salaries, benefits and even to support new R&D positions that we now are trying to fill.”

Get involved: The 51�Թ��� has deployed a digital R&D Action Center that manufacturers can visit for critical R&D policy updates, industry stories and an opportunity to engage directly with their members of Congress: /protect-innovation/

Washington, D.C. – Following the announcement by the Office of the U.S. Trade Representative calling for a delay in a World Trade Organization decision on whether to expand a waiver of intellectual property, 51�Թ��� Vice President of International Economic Affairs Ken Monahan released the following statement:

“An expanded intellectual property waiver would jeopardize American innovations that are fundamental to fighting current and future pandemics and undermine U.S. technology leadership over our commercial rivals, such as China. Manufacturers welcome USTR’s announcement supporting a delay in the decision on whether or not to expand the WTO’s waiver on COVID-19 products and domestic supply chains and urge all WTO members to fully consider the consequences of such an expanded waiver.

“Efforts could be better spent focusing on other effective international approaches to deal with ongoing and potential global health crises.”

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.77 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 58% of private-sector research and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – Today, the 51�Թ��� released the following statement calling for passage of the Respect for Marriage Act:

“M���Գܴڲ����ٳܰ������ know that individuals truly thrive in their careers when they can bring their authentic selves to work and feel confident that their families will be safe from discrimination or worse in the places they have chosen to live. The Respect for Marriage Act would ensure that the legal protections around which so many Americans, including manufacturing workers, have ordered their lives will not be suddenly rolled back. Codifying federal protections for interracial marriages and same-gender marriages with appropriate protections for religious liberty will help keep all families equal under the law and ensure that manufacturers can continue to hire and retain a diverse and talented workforce. It will deliver families and businesses the certainty they need and deserve.”

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% of private-sector research and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit

This story can also be found within the 51�Թ���’s��R&D action center.

After a tax law change went into effect in 2022, manufacturers across the country found themselves facing new obstacles to investment in research and development. For Vermeer Corporation—a manufacturer of industrial and agricultural equipment based in Pella, Iowa—the change is causing real concern.

The background: Until the beginning of this year, businesses could deduct 100% of their R&D expenses in the same year they incurred the expenses. Starting in 2022, however, a change in the tax law required businesses to spread deductions over a five-year timeframe. That change is making investment more expensive and preventing some companies from putting their resources into critical innovation.

Constant innovation: As a company that makes a variety of diverse products for fields like agriculture, mining, utility construction, forestry and renewable energy, Vermeer is always working at the cutting-edge of new technology, and that requires significant investment in R&D.

• “Vermeer designs and builds specialized equipment—and it has to be innovative,” said Vermeer Corp. Senior Director of International Business Development and Government Affairs Daryl Bouwkamp. “We have to push that leading edge constantly. The history of Vermeer is a history of invention and innovation.”

Vital competition: According to Vermeer, R&D is also vital to the ability of manufacturers in the United States to compete with foreign companies.

• “We’re not the only company that’s innovating around the world,” said Vermeer Vice President of Finance Ryan Agre. “There’s pressure from companies in countries that are producing products like ours.”

Immediate impact: The new tax law has already had a serious effect, according to Agre.

• “It’s a material, meaningful impact,” said Agre. “It’s millions in additional tax that we will incur at Vermeer just next year—and that’s the one-year impact, so it’ll be even more significant over a five-year implementation period. We’re actively having to harvest cash elsewhere to offset this impending change.”

Pushing back on China: The U.S. tax law change also stands in stark contrast with policies from countries like China, according to Vermeer.

• “When you look at the generosity of foreign support, especially China’s, versus the United States, it’s so lopsided,” said Bouwkamp. “China is trying to drive behavior toward R&D—and that’s something we’re lacking.”

The big picture: Agre also noted that making R&D more expensive can make companies like Vermeer risk-averse—more likely to direct the investments they do make toward smaller or more incremental innovations, and less willing or able to invest in the kind of ambitious research that can offer truly transformative results.

• “We don’t know what we haven’t discovered yet,” said Agre. “We have a history of being innovative in new spaces, and that requires individuals to have funding and freedom of thought to go out and experiment. When you’re trying to create something that doesn’t exist today, you’re going to hit some home runs—but you’re also going to strike out a bit. When you need more certainty, you start cutting out uncertainty and making fewer investments in big ideas. That impacts not just Vermeer but the whole economy.”

This story can also be found within the 51�Թ���’s��R&D action center.

Manufacturing is an industry built on innovation—but with a recent change in tax law, manufacturers are encountering a new and major obstacle to the critical research and development investments they need to make in order to compete at home and around the world.

The background: Up until January 2022, a business could deduct 100% of their R&D expenses in the same year those expenses were incurred. But a change to the law that took effect this year now requires businesses to spread those deductions over a period of years, making investment in innovation more expensive.

The manufacturer: At Brewer Science—a Missouri-based manufacturer in the semiconductor industry—this issue has become an urgent challenge. The company is a top producer of materials needed to make semiconductor chips.

• In such a fast-moving industry, staying competitive requires nonstop innovation—and that demands constant investment in new products and processes. According to Brewer Science Executive Vice President Dan Brewer, a significant percentage of the company’s revenue goes back into R&D every year.
• “Semiconductors are everywhere, and new generations are constantly being created,” said Mr. Brewer. “The only way to compete abroad in our industry is to out-invent the competition.”

The impact: By making R&D investments more expensive, the tax code hinders manufacturers’ ability to make necessary expenditures not only on innovation, but also on other kinds of growth. Already, the harmful tax change has impacted Brewer Science’s bottom line and put a hitch in its plans for the future.

• Because the new law requires a deduction to be spread out over five years, companies are paying more in taxes than they were a year ago—a result that is causing them to reassess future investments.
• “We have a long list of new hires that we’re trying to bring on board and new projects we’d like to begin, and now we’re looking to make adjustments,” said Mr. Brewer. “Which projects can we put on hold? Which hires can we delay? It’s unfortunate that the same people who want investment in onshoring our industry are penalizing those that are already here.”

The ask: Brewer Science’s request is simple: return the tax treatment of R&D expenses to the way it was so that manufacturers are not penalized for pursuing the R&D that is necessary to spur economic growth and maintain America’s global leadership in innovation. There is still time to undo this for the current 2022 tax year, but time is quickly running out.

• “We’re not asking for a handout,” said Mr. Brewer. “We’re just asking Congress to allow us to immediately deduct these expenses as has been the case for nearly 70 years, since before Brewer Science was even a company.”

The big picture: Mr. Brewer is also quick to point out the widespread impact of this change, especially for smaller companies.

• “There are some companies that can’t make it five years without the ability to immediately deduct their R&D expenses,” he said.

Our move: The 51�Թ��� has been leading the charge to ensure the tax code continues to support innovation by allowing businesses to fully deduct their R&D expenses in the year in which they are incurred.

The last word: “Our industry moves extremely fast,” said Mr. Brewer. “We must invest aggressively in research and development to stay relevant and stay competitive.”

Washington, D.C. – Following President Biden’s call for a windfall tax on America’s energy producers, 51�Թ��� President and CEO Jay Timmons released the following statement:

“Raising taxes on American energy manufacturers is dangerous and destructive for the American people and the manufacturers who depend on access to reliable energy. It would disrupt domestic supply at a time of severe geopolitical uncertainty. Indeed, history has shown that this is a failed policy that could lead to more imports and even higher prices.

“M���Գܴڲ����ٳܰ������ have provided real solutions and specific recommendations for improving energy security and taking an all-of-the-above approach to developing all forms of American energy. Manufacturers will continue doing everything in our power to be part of the solution, and we hope our elected officials will too.”

-51�Թ���-

The 51�Թ��� is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.9 million men and women, contributes $2.77 trillion to the U.S. economy annually and accounts for 58% of private-sector research and development. The 51�Թ��� is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the 51�Թ��� or to follow us on Twitter and Facebook, please visit www.nam.org.

“Fix it now.” If yesterday’s Port of Los Angeles virtual press conference had a single message, that was it.

51�Թ��� President and CEO Jay Timmons Port of Los Angeles Executive Director Gene Seroka for a question-and-answer session on the manufacturing supply chain and “Competing to Win,” the 51�Թ���’s agenda for bolstering manufacturing competitiveness.

Labor uncertainty: Timmons acknowledged the positive steps taken by leadership of the Port of LA over the past 12 months to improve the flow of goods, but he noted that workforce concerns continue to create supply chain uncertainty across shipping modes.

• “One of the biggest issues slowing down our domestic supply chains is the labor uncertainty tied to critical infrastructure,” Timmons said. “For example, there was the real danger of a crippling rail shutdown last month. The 51�Թ��� supported the administration’s efforts to reach an agreement to avert this, but negotiations are still ongoing, and there’s a deadline next month on Nov. 19.”
• The solution, Timmons said, lies with policymakers and industry, who “have to be vigilant about putting out these sparks before they turn into fires.”

Taxes: Timmons also discussed the need for a more favorable tax code, which plays a major role in the ability of manufacturers in the U.S. to compete, he said.

• “For example, a longstanding deduction for full and immediate expensing of research and development expenses is being phased out,” Timmons said. “Businesses will now have to amortize their R&D expenses over a number of years; that’s a huge disincentive that makes it costlier to conduct R&D within the U.S.—not to mention a potentially huge tax hike for small and medium-sized manufacturers at the end of the year.”
• China, meanwhile, allows manufacturers a 200% deduction for R&D expensing, giving that country a major advantage.

Workforce and immigration: Manufacturing is “in the middle of a workforce crisis,” Timmons said. Enacting new, better immigration policy and investing more in certain workforce programs can help solve it.

• Manufacturing has nearly 800,000 open jobs—and many of them could be filled if legislators would expand work-permit programs, Timmons said. “Clearly, we need border security, but we also need more avenues for people to come legally and to work.”
• There should be more federal investment in apprenticeship models, too, so that students can “earn while they learn” in manufacturing, he added.

All hands on deck: Congress must work to fix these issues “in a very bipartisan way,” Timmons said. “We hear all the time from elected officials, both Democrat and Republican, and even independent, that they want to be supportive of manufacturing.”

• “They understand that manufacturing is the lifeblood of any competitive economy … and we appreciate that. But we also need to make sure that in addition to saying good things about manufacturing, that elected officials are actually doing the things they need to do. That’s what [‘Competing to Win’] is all about.”

Manufacturing in the U.S. is advancing, but to grow it needs more workers—including via immigration. That’s why immigration reform is one of the 51�Թ���’s key policy priorities to boost the industry’s competitiveness, as 51�Թ��� President and CEO Jay Timmons told the Minnesota Manufacturers’ Summit yesterday in Minneapolis. The event was hosted by the Minnesota Chamber of Commerce.

• This week, the 51�Թ��� released an updated version of its immigration policy blueprint “A Way Forward,” which Timmons highlighted in his speech.

What our immigration system needs: “Despite all the overheated rhetoric, one thing we can agree on is this: the United States has a broken and unreliable immigration system—and it is harming manufacturers’ competitiveness,” said Timmons.

• He cited the need for more employment-based H-1B visas; more temporary H-2B visas; more programs for foreign-born U.S. students in STEM fields; a new visa category to address temporary economic needs in the U.S.; and protection for Dreamers along with a pathway to legal status for unauthorized U.S. residents.

Other priorities: Timmons also covered other key manufacturing priorities, including energy policy fixes.

• “Congress can deliver sustainable permitting improvements that can fast-track critical infrastructure projects and speed up the construction of new manufacturing facilities,” he said.

• “The situation in Europe and the actions of OPEC show us this isn’t just an issue of economic competitiveness. It’s also an issue of national security.”

Reducing the burden: “Policymakers can also help by streamlining regulatory policy in general,” Timmons added. “The annual regulatory cost burden for an average U.S. firm represents 21% of its payroll.”

• “M���Գܴڲ����ٳܰ������ support smart, sensible regulation to protect our health, our workplaces and the environment. But the more time and resources manufacturers spend on their compliance burden every year, the less we can spend solving our greatest challenges.”

The bottom line: “Whether it’s permitting reform or immigration reform, building on tax reform or advancing workforce solutions, manufacturers are positioned to lead,” said Timmons. “So, our role is to be true to the values that have made America exceptional and kept manufacturing strong: free enterprise, competitiveness, individual liberty and equal opportunity.”

Further reading: Timmons has been hitting the road this week to promote manufacturers’ priorities to leaders across the country. If you missed it, catch up on his earlier speech in Phoenix, Arizona.