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Washington, D.C. – After the publication today of the 51�Թ���’ latest report, “Ensuring a Healthy Future: The Impact and Importance of Pharmaceutical Manufacturing,” 51�Թ��� President and CEO Jay Timmons released the following statement:

“Pharmaceutical manufacturers are essential to America’s health and well-being and to the success of our economy. They have helped lead our country through crisis, fight the pandemic and drive our recovery. The sector creates hundreds of thousands of jobs, and the work its quarter of a million employees perform is literally lifesaving, improving society in ways that are almost impossible to overstate.”

The report finds that not only have pharmaceutical manufacturers been pioneers in improving the human condition, but the industry also fuels other sectors of the economy.

According to the report:

• Pharmaceutical and medicine manufacturing directly employs an estimated 267,000 workers in the United States and supports nearly 1.9 million more jobs across the country.
• One job in the industry helps support six other jobs in the overall workforce.
• Pharmaceutical and medicine manufacturing generates nearly $339 billion in output. Further, $1.00 in pharmaceutical and medicine manufacturing output generates $1.09 in output elsewhere in the economy.
• For every $1.00 earned by an employee within the industry, $2.42 is earned by others elsewhere in the economy.

“The American public and policymakers too often overlook these accomplishments,” Timmons added. “Traditional economic analysis ignores the way this industry extends and enriches lives, and the public is not fully aware of pharmaceutical manufacturers’ constant focus on innovation and improving the quality of life for everyone. Pharmaceutical manufacturers are always researching, discovering and developing new medicines and treatments, operating at the core of our modern health care system. Their products make it possible for medical professionals to introduce and manage innovative new therapies, and of course, these manufacturers helped create lifesaving COVID-19 vaccines. Moreover, the industry has high economic multipliers that drive production and job creation in other industries.”

Additional Key Findings:

• A successful pharmaceutical ecosystem requires strong private-sector investment. 
  • In 2019, American pharmaceutical companies invested more than $83 billion in research and development, topping off nearly $1 trillion in R&D investment over the past 20 years. A recent study from the National Science Foundation’s National Center for Science and Engineering Statistics estimates that the pharmaceutical and medicine manufacturing sector alone accounts for roughly 17% of total R&D investment in the United States.
  • The pharmaceutical industry invests nearly 11.4% of its sales back into R&D. Indeed, the U.S. pharmaceutical industry invests on average roughly three times more in R&D as a percentage of sales than all other manufacturing industries.
• The industry creates valuable STEM jobs.
  • While roughly 6.7% of the U.S. workforce has a STEM occupation, 29.9% of all jobs in pharmaceutical and medicine manufacturing are STEM related. The pharmaceutical manufacturing sector employs more than four times the percentage of STEM workers employed in the overall workforce.
• Industry employees are highly productive.
  • Industry employees produce $1.3 million in output per employee. This is nearly seven times greater than the U.S. economy’s average output per employee ($188,000).

-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 12.4 million men and women, contributes $2.44 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. – The 51�Թ��� released its Manufacturers’ Outlook Survey for the third quarter of 2021, showing manufacturers remain mostly optimistic in their economic outlook (87.5%, down from 90.1% in Q2). Consistent with Wednesday’s Bureau of Labor Statistics report showing a record 889,000 job openings in manufacturing, respondents named workforce shortages (81.5%) as their top downside risk. Manufacturers also indicated the many ways that proposed tax increases threaten jobs, investment and growth in the sector.

The 51�Թ��� is also launching a six-figure ad campaign calling on Congress to protect manufacturing jobs by opposing tax increases in the budget resolution. The print, radio and digital ads will run in Washington, D.C., and in key states across the country.

“This survey delivers an urgent warning for lawmakers: if you raise taxes on manufacturers, there will be no avoiding widespread job losses, slower growth and wage stagnation,” said 51�Թ��� President and CEO Jay Timmons. “At a time when paychecks for manufacturing families are growing at the highest rate in nearly 40 years, the tax increases under consideration by Congress will directly harm the men and women who make things in America. Like the New York manufacturer that hired 50 new workers, doubled the size of their manufacturing facilities and increased employee wages by nearly 5%, manufacturers across the country are keeping our promises after the 2017 tax reforms, investing in our people and our communities. To protect our recovery, we should all want to protect these reforms.

“The worsening workforce crisis, demonstrated in this and many previous surveys, is the driving motivation behind the 51�Թ��� and Manufacturing Institute’s campaign, which we will be ramping up even further in the coming months to tackle this challenge. With a record 889,000 open jobs in manufacturing and 4 million to fill by 2030, this is the largest campaign ever to build the workforce of tomorrow and inspire, educate and empower a new generation of manufacturers in America.”

Other survey highlights:

• Nearly 94% of manufacturers said that higher taxes would be harmful to their businesses.
• Roughly 90% of respondents said that their company would find it more difficult to expand their workforce, invest in new equipment or expand facilities if the tax burden on income from manufacturing activities increased.
• Nearly 91% said that higher taxes would also make it more difficult to raise employee wages.
• The top three challenges facing manufacturers are increased raw material costs (86.4%), attracting and retaining a quality workforce (80.0%) and supply chain challenges (79.8%).
• Respondents predicted employment and wage growth to rise at the fastest rates in the survey’s 24-year history.

Read the full Q3 2021 Manufacturers’ Outlook Survey results here.

Background on manufacturing growth following the enactment of 2017 tax reform:

• In 2018, manufacturers added 263,000 new jobs. That was the best year for job creation in manufacturing in 21 years.
• In 2018, manufacturing wages increased 3% and continued going up—by 2.8% in 2019 and 3% in 2020. Those were the fastest rates of annual growth since 2003.
• Manufacturing capital spending grew by 4.5% and 5.7% in 2018 and 2019, respectively.
• Overall, manufacturing production grew 2.7% in 2018, with December 2018 being the best month for manufacturing output since May 2008.

-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 12.3 million men and women, contributes $2.35 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

With major policy issues coming to a head this fall in Washington, the 51�Թ��� this week launched Manufacturers United – a new digital platform to power the industry’s grassroots advocacy.

We spoke with some of the people behind the effort to learn more about what it does, how it works, and why manufacturers across the country should use it to highlight their priorities and make their voices heard.

What it does: Manufacturers United provides a clear platform and a wide range of easy-to-use tools for individual manufacturers to take action to advance the industry’s policy priorities:

• “Manufacturers United is the central resource where manufacturers, those who work in our industry and everyday Americans who care about the future of manufacturing in the United States can come together and take meaningful action, said Assistant Vice President for Advocacy at the 51�Թ��� Michael O’Brien. “Congress is currently working on urgent priorities ranging from infrastructure investments to revisiting tax reform. Manufacturers United gives you the tools and resources — from posting key messages to social media, sending a message to your representative, all the way to helping you attend a congressional town hall, or host a member at your facility — that help you take action.”

A helping hand: In addition to giving manufacturers the tools to advocate for their causes, Manufacturers United also offers access to members of 51�Թ��� staff who can help you navigate and make effective use of these advocacy tools and opportunities.

Why it matters: Research shows that persistent, sustained advocacy is incredibly important – and that outreach from individual constituents has the most impact, especially when policymakers are undecided on an issue. MU unleashes the power of manufacturers who have been interested in advocacy, but haven’t known where to start.

“The 51�Թ��� will always be there to serve up full and comprehensive information on policy matters and other leading issues, but we’re seeing a real hunger from our members to actually join the fight,” said 51�Թ��� Grassroots Strategist Alex Przybelski. “Manufacturers United helps them scale campaigns themselves and move their issues forward.”

How it works: Manufacturers United is designed to help individuals take a number of actions in support of manufacturing priorities. A few ways to plug in are:

• Get up to speed and take action on current issues like fighting new on manufacturers, advancing historic investment, and other major
• Sign up by texting MU to 52886 for updates about the major issues MU is working on (or just visit the and sign up)
• Get to know the who can help you put these tools to work

The bottom line: “Manufacturers United is about harnessing the power of manufacturing voices,” said O’Brien. “What’s at stake, fast facts and useful statistics, how to take action – it’s all there to help individual manufacturers find information and act on it to create an impact.”

Learn more: Find out more at .

Timmons on Labor Shortages, Creators Wanted Campaign

“Let’s be upfront about it. We have a very severe worker shortage in our country right now. It’s why the 51�Թ��� has been so focused on our , to attract that next generation of manufacturing workers, and we are in competition now all across every sector for workers.

…

“So, if you think about supply chain shortages, why is that happening? Part of it certainly is the pandemic and the ability for trade to move freely, but you also have issues of not enough people at factories producing the component parts that go into finished products. What does that lead to? That leads to higher prices. So, it’s a supply and demand issue. Jim Cramer earlier today talked about a focus on getting this worker shortage under control. He mentioned, for instance, one possibility of helping to deal with this is immigration reform and that he thinks that there is a potential bipartisan solution to that. I believe there is as well. We have been pushing that through our program called A Way Forward at the 51�Թ��� for a number of years. We think that’s one thing that will help get the economy back and deal with some of these issues.”

Timmons on Separating Infrastructure Investment from the Budget Resolution

“I think it was an extraordinary achievement by the Senate, a bipartisan achievement by Republicans and Democrats to get that bill across the line. We said at the 51�Թ��� from the start that we would see probably about $1.2 trillion without punishing and archaic tax increases that would take us back to a time when we weren’t able to invest and hire and grow wages like we have for the last three years…We think that this bipartisan solution needs to get across the finish line. This is a very big priority not only for the president, but also for the American people. We know that can get done.

“…the reconciliation package that may be being developed…we have some serious concerns. We will certainly oppose any of the archaic tax increases that have been discussed. We are hearing somewhere between $1.8 and $3.5 trillion on job creators in America. That would take us to where we were before the 2017 tax reforms, where, afterwards, as I said, we were able to have record investment, record job creation, record wage growth. Why would we ever want to undo that? We are watching that very closely. We will oppose the bill with any of those factors in there. We will oppose the pharmaceutical issues that are in those bills that will stop us from being able to deal with the next pandemic. And we are going to oppose the labor provisions that would drive a wedge between management and our workers. There are a lot of things in that bill we don’t like. But infrastructure, BIF as it’s called in Washington speak, needs to get across the line right away. It’s an accomplishment we can all be proud of.”

Timmons on the 51�Թ���’s Vaccine Mandates

“I am so proud of the 51�Թ��� team…We had a…94% vaccine acceptance rate before we imposed the mandate, and since then…we have achieved 100%. And I am thrilled because our team cares about not only themselves and their families, but also the people that we interact with every day—our 14,000 member manufacturers across the country. It’s the responsible thing to do, and I am happy that team 51�Թ��� came through.

…

“What I hear from every single CEO that we represent is that their number-one concern is their employees, the health of their employees, the health of their employees’ families and their communities…It’s become political at times, but it doesn’t need to be. The last administration through Operation Warp Speed helped develop a vaccine in just record time with all the safety protocols in place. This administration is executing the vaccinations across the country. It’s a bipartisan effort, a nonpartisan effort, I would say, to make sure that our communities are safe, that our country is safe and the world can return to normal. It’s the only way it’s going to happen—we know that.”

-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 12.4 million men and women, contributes $2.44 trillion to the U.S. economy annually, 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.

Nephron Pharmaceuticals Corporation, a West Columbia, South Carolina–based manufacturer, has been instrumental in helping American hospitals during the pandemic. The company produces inhalation solutions and suspension products, as well as prefilled sterile syringes, vials, IV bottles and IV bags. Meanwhile, Nephron also launched a COVID-19 diagnostics lab and vaccination center last year and recently announced plans for a new U.S. plant that will produce medical-grade nitrile gloves.

It is thanks to the Tax Cuts and Jobs Act of 2017 that Nephron has been able to keep investing in its workforce and facilities. Nephron President, CEO and Owner Lou Kennedy recently spoke to us about the company’s expansion and the benefits of the tax reform law’s provisions.

An early start: Nephron didn’t wait to begin sharing the benefits with its employees. Within days of tax reform’s passage, the company announced that employees would receive a 5% raise.

An expanded workforce: Tax reform also helped the company grow over time, from its pre–tax reform size of 485 employees.

• Today, the company has nearly 1,200 full-time employees and almost 800 more part-time employees, including educators, interns and apprentices—a massive expansion that shows no signs of stopping.
• In fact, Nephron expects to have 400–500 jobs to fill in the next 12 months alone.

In addition, the company skews young and diverse—around 53% of the workforce are women, more than 36% are people of color, and the average employee age is about 35.

Offering good jobs: The company now offers a starting salary in the range of $17 per hour. Meanwhile, it has also increased its long-term incentives and bulked up its 401(k) plan.

Growing operations: In addition to its workforce expansion, Nephron is using the benefits of tax reform to invest in its facilities and expand its footprint.

• The company is in the midst of five multimillion-dollar projects, including one worth $215 million that Nephron has said was made possible by tax reform. This project will bring 380 new full-time jobs to the surrounding area by 2024 and add new office, warehouse and production space as well as a vaccine production facility.

How tax reform helped: Nephron is organized as a pass-through entity, which helped the company benefit from the lower top tax rate (37%) that tax reform offered. It also benefited from the 20% pass-through deduction and a full expensing provision that allows for the immediate deduction of equipment purchases.

• The tax code’s research and development incentives, including R&D full expensing, have also been hugely important to Nephron, helping it develop the therapies that stop COVID-19 in its tracks.

The last word: “Since the Tax Cuts and Jobs Act passed, we have plowed dollars back into our businesses and our workers,” said Kennedy. “We would certainly have to pump the brakes if tax reform were to be rolled back. We’re hopeful that Congress and the administration will leave tax reform in place to incentivize domestic manufacturing.”

Washington, D.C. – Following the U.S. Court of Appeals for the Federal Circuit decision in 51�Թ��� v. Department of the Treasury, 51�Թ��� Senior Vice President and General Counsel Linda Kelly released this statement:

“The 51�Թ��� is very gratified to see the court agreed in full with the trial court’s decision holding that Congress spoke clearly when it created and expanded the duty drawback program to support U.S. exports. Put simply, this program helps manufacturers in America level the playing field when they sell to overseas markets. We look forward to working with our members as they expand their operations and add jobs in the United States in light of today’s decision.”

-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 12.4 million men and women, contributes $2.44 trillion to the U.S. economy annually, 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.

As part of its budget, the Biden administration proposed earlier this year to end a tax provision that helps keep intellectual property in the United States—and the 51�Թ��� is advocating against the move.

The background: The foreign-derived intangible income (FDII) deduction was created as part of the Tax Cuts and Jobs Act of 2017. It is intended to encourage companies to develop and maintain intellectual property in the United States, as well as bring it back to the country, by providing a lower tax rate for foreign sales based on U.S. IP.

Why it matters: By incentivizing the location of IP in the U.S., FDII ultimately helps support high-paying manufacturing jobs—because IP leads to the development of new products. Moreover, data from the Bureau of Economic Analysis shows that the amount of IP coming to the U.S. increased significantly after passage of the 2017 tax reform law.

The global angle: Other countries, including U.S. competitors, have policies in place to encourage companies to locate their IP in their own nations. If the U.S. scraps FDII, other countries might pull ahead.

What we’re saying: “This important provision is working as intended to support the people who create things in America,” according to 51�Թ��� Senior Director of Tax Policy David Eiselsberg. “Keeping FDII in place is key to supporting U.S. innovation, job growth and competitiveness.”

Washington, D.C. – The 51�Թ��� released a study on the damaging effects of proposed changes by the administration to the Global Intangible Low-Taxed Income regime under consideration. The analysis, prepared by EY’s Quantitative Economics and Statistics (QUEST) group, finds that the proposed rate increase, expansion of amounts subject to tax and changes to the method of calculation would have a destructive effect on U.S. employment and economic growth.

“Policymakers should want the next manufacturing dollar spent right here in America. But these proposed tax changes would reduce investment and lead to job losses in the United States, harming manufacturers and manufacturing workers,” said 51�Թ��� President and CEO Jay Timmons. “In a global economy, U.S. and foreign business activity is interconnected, and we should be doing everything we can to level the playing field, not tilt it against manufacturers in America who are leading our post-pandemic recovery.”

Key findings on the reduction in U.S. jobs and investment:

• The proposed changes to GILTI would reduce domestic employment of globally engaged U.S. firms by between 500,000 and 1 million lost jobs.
• The proposed changes to GILTI would reduce domestic investment of globally engaged U.S. firms by between $10 billion and $20 billion.

Read “Estimated impacts of proposed changes to GILTI provision on US domestic economic activity” 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 12.3 million men and women, contributes $2.35 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.

While Americans have largely focused in recent months on the recovery and renewal of our domestic economy, manufacturers also recognize the critical importance of global markets for their success. That makes trade agreements incredibly important—and underscores the urgency of renewing Trade Promotion Authority, a current focus of the 51�Թ���.

We recently spoke to 51�Թ��� Vice President of International Economic Affairs Ken Monahan about this essential issue.

What it is: Trade Promotion Authority is a legislative framework between Congress and the executive branch that details the priorities and consultative process for U.S. trade negotiations. Essentially, said Monahan, Congress lays out its trade negotiation objectives and oversight obligations in TPA legislation, and in exchange, the president is able to negotiate trade agreements that will ultimately receive an up or down vote in Congress.

Why it matters: TPA can help ensure that new trade deals will reflect the priorities of manufacturers in the United States, said Monahan. With 95% of consumers living outside U.S. borders, and with more than 6 million U.S. manufacturing jobs depending on exports, trade agreements are needed to give manufacturers access to other markets on the right terms.

• “From a business perspective, having a TPA that reflects the priorities of manufacturers on the front end is vitally important,” said Monahan. “We are urging the Biden administration to prioritize a robust trade agenda that will open markets with countries with which we don’t already have agreements.”
• “We’re rightly focused on the domestic market, including through our support for the infrastructure package moving through Congress, but manufacturers also need to be able to compete overseas and access markets around the world.”

Where we are: To date, the Biden administration hasn’t detailed a strategy for the negotiation of new trade agreements. TPA was last passed by Congress in 2015, but that authority expired at the end of June.

What manufacturers want: Last year, the 51�Թ��� manufacturers’ priorities for trade agreements in comments submitted to the U.S. International Trade Commission. “In broad strokes, manufacturers want four things with respect to trade agreements,” said Monahan.

• “First, reverse unfair trade barriers that impede our ability to export.”
• “Second, protect intellectual property through technology leadership and innovation.”
• “Third, raise global standards to ensure a level playing field and ensure that other countries have standards that are consistent with ours.”
• “And fourth, codify respect for the rule of law and the pivotal role of free markets around the world.”

What the 51�Թ��� is doing: The 51�Թ��� has been leading the charge on TPA, ramping up engagements in recent weeks with members of Congress and the Biden administration. Most recently, 51�Թ��� President and CEO Jay Timmons President Biden to work with Congress without delay to renew TPA.

The last word: “The United States needs to be back in the game,” said Monahan. “Our trading partners are negotiating agreements among themselves that are excluding the United States. Manufacturers need to access new markets. We need more exports that support good-paying jobs. And in order to accomplish that, we need to get off the sidelines and negotiate new trade agreements that will support growth here at home by reducing barriers faced by manufacturers around the world.”

Washington, D.C. – Following U.S. Senate passage of the Infrastructure Investment and Jobs Act, 51�Թ��� President and CEO Jay Timmons released this statement:

“The Senate’s passage of this historic, bipartisan legislation is a tremendous achievement and a credit to President Biden and the group of senators who met across the aisle to address our country’s longstanding infrastructure needs. This is the type of infrastructure investment manufacturers have long championed, and the bipartisan approach shows that our legislators can indeed still come together to accomplish transformational change. We now urge members of the House to follow the Senate’s example, pass this bipartisan bill and send it to the president’s desk for his signature without delay.

“The more than 12 million men and women of manufacturing are counting on Congress to get this done—because it will renew and revitalize our nation’s physical infrastructure, improving productivity and quality of life for everybody, without erasing the tax reforms that helped manufacturers keep our promises to innovate, hire more employees, raise wages and benefits and reinvest in communities.

“The 51�Թ��� has led the charge for historic investments in infrastructure for years, as outlined in our infrastructure blueprint, ‘Building to Win,’ and many of its recommendations are in the final Senate bill. The bill also includes a range of actions that the 51�Թ��� calls for in our climate policy plan, ‘The Promise Ahead,’ along with many of the 51�Թ���’s supply chain and permitting goals, which are laid out in ‘Strengthening the Manufacturing Supply Chain.’

“With world-class infrastructure enhancing our competitiveness, manufacturers will be better prepared to help build an economy that lifts up all Americans and enables us to lead through this century and into the next.”

Find a list of key 51�Թ��� priorities in the Infrastructure Investment and Jobs Act 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 12.3 million men and women, contributes $2.35 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% 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