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Washington, D.C. – 51�Թ��� President and CEO Jay Timmons addressed the Minnesota Chamber of Commerce’s Manufacturers’ Summit today, where he made another call for policymakers to act on immigration, saying it is time to “fix this problem now.” Timmons called on Congress to act in the year-end government funding bill.�� His remarks come as the 51�Թ��� rereleased its immigration proposal “A Way Forward.”

Excerpts from Timmons’ speech:

“First and foremost, this is a humanitarian issue. We see it play out in tragic ways—including family separations at the border and confusion as families seek to reunite following a harrowing journey.”

“But as manufacturing and business leaders, we also know there are serious economic consequences. Research and development—the cornerstone of innovation and our industry’s success—depends on access to the best and brightest from across the world.”

“The broken immigration status quo is also preventing us from growing our talent pool, leaving jobs unfilled. There are around six job seekers for every 10 job openings in the U.S., and our population growth is slowing. Last year, the U.S. population grew at its slowest rate ever.”

“Last year’s infrastructure law and this year’s CHIPS and Science Act prove that Congress can still get bipartisan things done—and immigration should be next on the list, whether it’s one bill or multiple bills. We would absolutely support a long-term, comprehensive legislative fix that addresses all of these issues, but we also want to be realists. We have a workforce crisis that needs to be addressed now, so let’s take action where we can. We want to focus on the art of the possible. One approach would be to address some of these issues in the year-end government funding bill.”

First released in 2019 and updated to reflect current challenges, the 51�Թ���’s “A Way Forward” proposal identifies seven core areas of action for Congress and the administration to take:

• Strengthen border security through physical infrastructure and best-in-class technology.
• Prioritize America’s workforce needs through reforms to the legal immigration system.
• Reform nonimmigrant visas and temporary worker programs to reflect employer needs, including a fund to support STEM programs so that we can reduce the need for these types of visas in the future.
• Provide a permanent and compassionate solution for populations facing uncertainty, including the Dreamers, who were brought here as children and know no other home.
• Reform asylum and refugee programs for a more orderly and humane system, including asylum standards consistent with our values.
• Fix the problem of the unauthorized population with a firm reset, requiring an orderly process of review, including financial penalties for those who seek to become legal and deportation for those who choose to stay in the shadows.
• Strengthen the rule of law so that it is respected and followed by all, with a focus on gang violence and��also on requiring localities to cooperate to advance the enforcement of immigration priorities.

View “A Way Forward” in full here.

-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 12.8 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

As the manufacturing industry grapples with disruptive forces in the U.S. and around the world, companies are looking for more certainty and opportunity.

51�Թ��� Vice President of International Economic Affairs Ken Monahan about these issues with UPS President of International Public Affairs Penelope Naas in a panel discussion during the UPS Supply Chain Solutions virtual conference on Oct. 5.

The big idea: “Manufacturers of all sizes must be able to compete in a global economy by selling not just to consumers in the U.S., but also to billions of consumers globally,” said Monahan.

• “For us, international economic growth is core to our DNA—and it is absolutely critical that we increase opportunities for those 95% of the global population that lives outside of the U.S.”
• The 51�Թ��� emphasized these broad priorities in its just-released “Competing to Win” policy agenda.��

The challenge: “We’ve just seen wave after wave of supply chain disruptions, and the impact that that’s happening on the ability of manufacturers to operate and engage not just in the U.S. but globally,” said Monahan. “In a recent quarterly survey [of 51�Թ��� members], 78% of our leaders listed supply chain instructions as a primary business challenge.”

• According to Monahan, the global nature of manufacturing underscores “the importance of our industry working to ease the types of global supply chain bottlenecks that are impacting so many businesses around the world … easing uncertainty and … knocking down unfair trade barriers that continue to stymie the growth of economic activity globally.”

Problems and solutions: Monahan named COVID-19, the Russian invasion of Ukraine and disclosure requirements that require more scrutiny of supply chains as key factors impacting manufacturers—and emphasized the need for diverse sources of products to ensure supply chain resiliency in the future.

Building partnerships: Monahan pointed to the importance of robust trade agreements and partnerships with economic allies to secure resilient supply chains and promote fair competition.

• “When it comes to trade, we need to think through ways in which we can deepen our partnerships with our friends and allies,” said Monahan. That means “seeking trade agreements and cutting-edge, best-in-class frameworks with our trading partners to encourage increasing standards to U.S. levels.”

Monahan also noted a series of ongoing U.S. efforts with global trading partners, including in the Indo-Pacific region, Europe, the Americas and Kenya. He made clear that the 51�Թ��� is working to promote new agreements that open markets, strengthen U.S. innovation and technology standards and increase global standards around trade rules, among other priorities.

• Such U.S. global engagement is “demonstrating to manufacturers that the U.S. is back on the field,” said Monahan. “But at every opportunity, we are pushing the administration to think bigger, be even more ambitious and take this opportunity in front of it.”

Promoting transparency: Monahan spoke about the importance of manufacturers’ insight into their supply chains.

• “Companies need to be knowledgeable about as many tiers of their supply chains as possible and have strong due diligence and compliance programs in place to ensure to the maximum extent possible that goods are not being sourced or sold to entities that use forced labor or are on various export control lists,” he said.

The last word: “We need to be able to really put forward and advance the same principles globally that we do here at home as manufacturers: nondiscrimination, fairness, equal opportunity and competition,” said Monahan. “We are at our best when we are advancing those priorities globally and in the U.S.”

51�Թ��� President and CEO Jay Timmons is on a barnstorming tour of the U.S., to raise more support among leaders for addressing supply chain challenges, creating more manufacturing jobs and making the country more resilient. He brought this message to the 2022 Arizona Manufacturing Summit in Phoenix, Arizona, yesterday.

Manufacturing’s strength: “I’m pleased to report that manufacturers are shattering expectations across the United States,” said Timmons. “Here’s one encouraging fact: manufacturers have now recovered all the jobs the industry lost at the start of the pandemic—and then some. There are more than 12.8 million people working in manufacturing… And that’s because we’re doing what we’ve always done. We’re solving problems, we’re innovating and leading into the future.”

Challenges ahead: “Inflation has reached the highest level in decades,” said Timmons. “Supply chains are still strained, making it harder to move resources and products. Global instability—especially Russia’s war on Ukraine—shows us it’s more important than ever that we secure domestic energy supplies.”

• “We’re facing a workforce crisis, with less than six job seekers for every ten jobs in America. And almost 70% of Americans today say the country is on the wrong track. Now, we’ve seen some moments of historic bipartisan action in Washington … But there is so much more to be done.”

Competing to Win: Timmons pointed to the 51�Թ���’s policy roadmap, “Competing to Win,” which offers an agenda for manufacturing competitiveness on issues including the following:

• Taxes: “We need U.S. tax policy to keep up and encourage more industrial investment here,” said Timmons. “So, we’re calling for making the 20% deduction for pass-through income permanent—and expanding it. The small and medium-sized businesses here deserve confidence that they won’t lose that all-important tool. And we need to fix provisions of the tax law that are making R&D and capital investment more expensive starting this tax year.”
• Trade: “While we’re working on tax policy here at home, we also need to expand opportunities to sell our products overseas,” said Timmons. “Exports are part of our industry’s lifeblood. That means policymakers should hold countries accountable for practices that harm manufacturers in the U.S. We should continue pursuing cutting-edge trade deals, while ensuring that the agreements already in place are delivering for our industry. And we should reject policies at international bodies like the World Trade Organization that would take away intellectual property rights.”
• Immigration: “We need Congress to fix the broken, unreliable immigration system,” said Timmons. “Clearly, we need border security, and we need more avenues for people to come legally and work. It’s critical to our economic competitiveness—and consistent with our values.”

The way forward: “It can be disheartening to know that so many Americans don’t believe the country is on the right track,” said Timmons. “But a focus on policy—getting things done, rather than blaming each other—can change that. And manufacturers are positioned to lead. The work we do to create jobs and to improve the quality of life is essential, and we can’t let up. We won’t let up.”

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

In an industry where technology and processes can change quickly, manufacturers in the United States must be able to invest, grow and maintain their edge against foreign competitors. At a time when China is providing extensive support for its manufacturing industry, the 51�Թ��� is pushing to ensure that the men and women who make things in America have the tools they need to succeed.��

The challenge: Right now, China’s tax policies offer significant incentives for research and development. For example, China a super deduction for manufacturers performing R&D by allowing them to deduct 200% of their R&D expenses. This policy makes it more attractive for manufacturers in China to invest in innovation—and to out-compete manufacturers in the United States.

The comparison: Meanwhile, U.S. manufacturers, who drive more innovation than any other sector, face a harmful tax change that if not reversed will hurt jobs, innovation and competitiveness.

• Up until January 2022, a business in the United States could deduct 100% of their R&D expenses in the year during which those expenses occurred.
• But a change in the tax code that took effect this year now requires businesses to spread those deductions over a period of years—the so-called amortization requirement—making investment in innovation more expensive to conduct.

Recent action: This week, the 51�Թ��� rallied the business community to Congress to repeal the recent tax change, so that businesses can continue to innovate, bolster the economy and create well-paying jobs.

• “Failing to reverse this change will cost well-paying jobs and reduce future innovation-directed R&D,” according to the 51�Թ���’s letter, which was signed by more than 400 companies and business organizations.
• “Requiring the amortization of research expenses will reduce R&D spending and lead to a loss of more than 20,000 R&D jobs in the first five years with the number of lost jobs rising to nearly 60,000 over the following five years. Moreover, when accounting for the spillover effect from R&D spending, nearly three times as many jobs will be affected.”
• “At a time of increasingly fierce global competition for research dollars, this change will make it harder for the next R&D dollar to be spent in the U.S. which will ultimately hurt future U.S. competitiveness.”

What we’re saying: “Research and development is the lifeblood of manufacturing,” said 51�Թ��� Senior Director of Tax Policy David Eiselsberg. “It is what drives innovation, competitiveness, economic growth and the creation of high-paying jobs. But that is all at risk unless Congress quickly acts to repeal the harmful change in the tax treatment of R&D expenses.”

Finer point: “If Congress and the administration do nothing, small manufacturers will face a huge tax increase at the end of the year,” 51�Թ��� Executive Vice President Erin Streeter warned. “This will have a crippling effect—and we’re mobilizing support at the 51�Թ��� across the industry to get another hard-fought priority done.”

Washington, D.C. – Following a 2–1 decision by the D.C. Circuit affirming the validity of a program that provides hundreds of thousands of skilled workers for manufacturers and other American businesses, 51�Թ��� Chief Legal Officer Linda Kelly released the following statement:

“The 51�Թ��� Legal Center is incredibly proud of today’s victory, which helps ensure the continued availability of hundreds of thousands of highly skilled workers for manufacturing roles. As manufacturers continue to experience significant labor shortages, the STEM OPT program remains a critical talent pipeline, providing opportunities for high-skilled graduates to enhance their education through hands-on work. Today’s win builds on the 51�Թ���’s impressive track record of defeating unlawful restrictions and meritless attacks on critical visa programs.”

Background:

Without the STEM OPT program, manufacturers would be unable to fill critical positions requiring specialized training in science, technology, engineering and math. So, in 2018, after an anti-immigration activist group brought a lawsuit against the Department of Homeland Security seeking to invalidate the entire STEM OPT program, the 51�Թ��� and two other business groups moved to intervene as defendants in the case. That motion was granted, and in December 2020, the District Court for the District of Columbia granted the 51�Թ��� and its co-intervenor defendants’ motion for summary judgment, ruling that DHS acted within its statutory authority and in accordance with the Administrative Procedure Act by continuing the STEM OPT program. The plaintiff activist group appealed to the D.C. Circuit, and today, the court issued its decision—rejecting the plaintiff’s bases for invalidating the STEM OPT rule and affirming the lower court’s judgment.

-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 12.8 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.

The 51�Թ��� notched a significant legal victory yesterday when a federal judge vacated the Securities and Exchange Commission’s suspension of a 2020 rule regulating “proxy advisory firms.”

The background: Proxy firms advise institutional investors on how to vote their shares in publicly traded companies, but those firms have long been unregulated and unaccountable.

• In 2020, in large part through the advocacy of the 51�Թ���, the SEC finalized a rule increasing oversight of these firms—but in 2021, the SEC’s new leadership announced that the agency would not enforce the rule.
• Suspending the rule without public notice and comment was a violation of administrative law—and the 51�Թ��� stepped up to challenge this circumvention of the Administrative Procedure Act in court.

The win: Yesterday, the 51�Թ��� won its case against the SEC in the U.S. District Court for the Western District of Texas. The decision makes clear that the SEC acted unlawfully by suspending the compliance date for the proxy firm rule without following the notice-and-comment procedures required under the APA.

• As the court said in its , “[agencies] do not have the inherent power to stay or delay a final rule absent notice-and-comment rulemaking.”

What’s next: The 51�Թ��� has also filed suit against the SEC’s 2022 rescission of critical components of the 2020 rule. That case is still ongoing, with oral arguments scheduled for December—but this week’s decision ensures that the SEC will not be able to re-suspend the 2020 rule if the 51�Թ��� is successful in its challenge to the rescission.

Our take: “Today’s decision is a victory for the rule of law, and the 51�Թ��� Legal Center was proud to lead this effort for the industry,” said 51�Թ��� Chief Legal Officer Linda Kelly. “Federal agencies are bound by the Administrative Procedure Act—standards the SEC failed to meet by indefinitely delaying the compliance date for the 2020 proxy firm rule without notice-and-comment rulemaking. Manufacturers depend on regulators to promulgate and enforce reliable rules of the road, and the 51�Թ��� looks forward to similarly holding the SEC to account in our ongoing case against the agency’s unlawful rescission of the 2020 rule.”

Washington, D.C. – Following a decision granting the 51�Թ���’ motion for summary judgment in 51�Թ��� v. SEC and vacating the Securities and Exchange Commission’s unlawful suspension of its duly promulgated proxy advisory firm rule, 51�Թ��� Chief Legal Officer Linda Kelly released the following statement:

“Today’s decision is a victory for the rule of law, and the 51�Թ��� Legal Center was proud to lead this effort for the industry. Federal agencies are bound by the Administrative Procedure Act—standards the SEC failed to meet by indefinitely delaying the compliance date for the 2020 proxy firm rule without notice-and-comment rulemaking. Manufacturers depend on regulators to promulgate and enforce reliable rules of the road, and the 51�Թ��� looks forward to similarly holding the SEC to account in our ongoing case against the agency’s unlawful rescission of the 2020 rule.”

Background:

The 51�Թ��� has long called for increased oversight of proxy advisory firms. In July 2020, the SEC issued final regulations to enhance transparency and accountability for proxy firms, a move 51�Թ��� President and CEO Jay Timmons��called��a “long-sought, major win for the industry and millions of manufacturing workers.” In October 2020, the 51�Թ�����filed��a motion to intervene in��ISS v. SEC��(ISS’s attempt to overturn the rule) in support of these reforms.

In June 2021, the SEC announced that it was suspending enforcement of the 2020 rule; the 51�Թ��� filed suit��against the SEC in October 2021 challenging this unlawful suspension. The U.S. District Court for the Western District of Texas today issued an granting the 51�Թ���’s motion for summary judgment and vacating the SEC’s suspension of the rule. As the court explained, “[Agencies] do not have the inherent power to stay or delay a final rule absent notice-and-comment rulemaking.”

In July 2022, the SEC rescinded critical portions of the 2020 rule, a move that Timmons said “epitomizes ‘arbitrary and capricious’ rulemaking.” The 51�Թ��� has��filed suit challenging the rescission; a summary judgement hearing in 51�Թ��� v. SEC��is scheduled for December 9, 2022.

-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 12.8 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 .

Washington, D.C. – Following the release of an impact of failing to reverse a stricter limitation on deductions for interest on business loans that took effect earlier this year, 51�Թ��� Managing Vice President of Tax and Domestic Economic Policy Chris Netram released the following statement.

Key Findings:

The stricter EBIT-based 163(j) interest expense limitation before market adjustments would cost:

• 467,000 jobs;
• $23.4 billion of employee compensation; and
• $43.8 billion in GDP.

“Manufacturers are already facing incredible economic headwinds due to increased input costs, rising interest rates, labor shortages and snarled supply chains. This analysis shows that failing to reverse the damaging change to the tax treatment of interest on business loans disproportionately harms manufacturers at a perilous time—costing hundreds of thousands of jobs and billions of dollars in economic growth.

“America is an international outlier in imposing such a strict interest expense limitation. With nearly half a million American jobs at stake, Congress must act by year’s end to reverse the stricter EBIT-based limitation and allow manufacturers to continue to invest for growth.”

EY’s Quantitative Economics and Statistics group prepared the .

Background:

Prior to 2022, the interest expense limitation was calculated based on a company’s earnings before interest, tax, depreciation and amortization (EBITDA). This year, a stricter limitation based on a company’s earnings before interest and tax (EBIT) took effect. By excluding depreciation and amortization from the calculation, the stricter limitation increases the tax burden on manufacturers that make investments in long-lived capital equipment.

-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 12.8 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

Washington, D.C. – Following the Senate’s 69–27 vote to ratify the Kigali Amendment to the Montreal Protocol, 51�Թ��� Vice President of Energy and Resources Policy Rachel Jones released the following statement:

“The Senate’s vote to ratify the Kigali Amendment is a blueprint for the type of bipartisan climate action that meets science-based targets while strengthening manufacturing competitiveness. It will reduce emissions by the equivalent of 80 billion metric tons of CO2 by 2050, with the potential to create up to 150,000 more U.S. jobs by 2027. This action proves that if we work together—if we rise above politics and partisanship and focus on solving problems—we can make our vision of a brighter tomorrow into reality.

“Manufacturers have supported the ratification of the Kigali Amendment for years. This treaty will be a boon for manufacturing, for global trade and for products that protect health, safety, comfort and productivity worldwide. Ratification further strengthens our global leadership on the phasedown of hydrofluorocarbons and will help the U.S. hold countries like China and India accountable on emissions. This shows that we can tackle climate change while strengthening our global competitiveness as we deploy next-generation technologies.”

-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 12.8 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.

The 51�Թ��� is leading the way forward on a range of policies to help boost innovation, opportunity and competitiveness for manufacturers in the United States—and that includes tax policies that ensure manufacturers can continue to compete and win.

The record: During tax reform, the 51�Թ��� achieved its key priorities—a lower corporate income tax rate, a reduced tax burden on pass-through business income, the adoption of a modern territorial tax system, the retention of the R&D tax credit and the adoption of incentives for capital equipment purchases.

• Thanks to a more competitive tax code, manufacturers across America have been investing in jobs, facilities and their communities.

The road ahead: Of course, the 51�Թ��� isn’t taking its eye off the ball. We are committed to protecting our gains and furthering progress—and that means ensuring the tax code continues to incentivize manufacturers’ ability to invest in innovation and growth. We’re focusing on three important tax priorities in the months ahead.

Research and development: On Jan. 1 of this year, a harmful tax change went into effect that makes R&D more expensive in the United States by requiring businesses to deduct their R&D expenses over a period of years.

• 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. Check out these company��stories��on the importance of tax policies that support R&D.

Interest deductibility: When manufacturers borrow funds to buy capital equipment, the interest they pay on those loans is tax deductible up to a certain limit. But a recent change in the tax law modified how that limit is calculated—shrinking the deduction, making debt financing more expensive and leaving less capital for job creation and investment.

• The U.S. is the only OECD country with such a strict interest limitation, so the 51�Թ��� is working with members of both parties in Congress to reverse the new limit calculation and enhance manufacturers’ ability to compete. Read more about the 51�Թ���’s work on this provision here.

Full expensing: Under present law, manufacturers can deduct 100% of their investments in assets with long useful lives, supporting their ability to acquire vital equipment and strengthening their competitiveness. However, the ability to deduct 100% of these costs begins to phase down at the beginning of 2023 and is set to completely expire in 2027.

• The 51�Թ��� is leading the business community in advocating for full expensing permanency, joining with members of Congress to support legislation that would create certainty for manufacturers. See how full expensing has benefited small manufacturers in the United States here.

The last word: “The 51�Թ��� is fighting to protect manufacturers across the country,” said 51�Թ��� Senior Director of Tax Policy David Eiselsberg. “Protecting R&D, interest deductibility and full expensing will provide the tax certainty necessary for manufacturers to continue to invest in jobs and growth.”

Learn more: Check out the 51�Թ���’s full tax agenda in “Competing to Win.”