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Washington, D.C. – 51�Թ��� President and CEO Jay Timmons delivered the following opening statement at a U.S. Senate Committee on Finance hearing entitled Made in America: Effect of the U.S. Tax Code on Domestic Manufacturing.

Click to watch the hearing.

Remarks as prepared for delivery:

Good morning. Thank you, Mr. Chairman.

I’m joining you virtually because of the pandemic that this country has endured for more than a year now. But this pandemic is far more than a story of economic hardship and painful loss. It’s also a story of communities and companies rising to the challenge.

America’s manufacturing workers mobilized in ways reminiscent of their resolve during World War II, when manufacturers became the arsenal of democracy. The companies joining me today are part of this effort. Ford remade shop floors to make ventilators and face shields. Intel accelerated access to technology to combat the pandemic. From iconic global brands to family-owned shops, manufacturers answered the call.

Today, one year after health restrictions began, the light at the end of the tunnel is growing brighter by the second—thanks to the innovation of pharmaceutical manufacturers. Their heroic work, combined with the previous administration’s Operation Warp Speed and this Congress and this administration’s focus on and investment in vaccine distribution, is now saving about 2 million American lives every single day.

Manufacturing workers’ achievements are all the more impressive when you consider the disruptions they had to overcome. This pandemic exposed and exacerbated serious supply chain issues that we now must address as we work to build the next post-pandemic world.

In spring 2020, the 51�Թ��� released our plan for strengthening manufacturing supply chains. I’ve discussed it directly with some of you.

Our goal is your goal: Ensuring that the next dollar invested in manufacturing is invested in America.

The plan is comprehensive, from taxes to workforce. The central premise is that incentives—not punitive measures—will allow us to achieve our shared goal.

Let me call out three key recommendations.

Number one: We must recognize the importance of predictability and stability in the tax code. Tax reform made manufacturers more competitive, driving historic job creation, wage growth and productivity in its immediate aftermath. Let’s not undo that progress.

Number two: Manufacturers in America can only remain at the cutting edge if our tax code supports innovation. Unfortunately, it will do just the opposite starting next year.

A looming change to the tax treatment of research costs will make it more expensive to perform R&D—potentially costing America its innovation edge.

Number three: Let’s recognize a simple truth—policies that are successful in growing manufacturing will require significant capital expenditures by the small and medium-sized firms that are the backbone of our domestic supply chain.

But two other looming changes to the tax code will make those expenditures difficult. More stringent limitations on interest deductions and the phase out of immediate expensing will take effect in the years ahead. If not reversed, these changes will make it hard to grow manufacturing.

Ultimately, ensuring that next manufacturing dollar is invested right here in America requires looking at the entire business climate.

And that means that this Congress will have to address other pressing questions.

Will tax rates for businesses of all sizes remain competitive—or better yet, become more competitive—so that we can keep attracting investment?

Will the regulatory system provide certainty and clarity?

Will health care become more affordable—without compromising free market principles?

Will this nation finally make the bold investments in infrastructure that are long overdue?

Will energy be abundant, affordable and reliable?

Will export opportunities increase while we enforce our existing trade agreements to protect American workers?

And will we achieve comprehensive immigration reform to ensure that those hidden in the shadows or brought here as children can become permanent, productive members of society?

If the answer to those questions is “yes,” if we tackle these fundamental issues, then I’m certain that this Next World that we are building in the aftermath of the pandemic will be built by American workers in American factories, restoring American leadership in the world.

Thank you, and I look forward to your questions.

-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 $2.32 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 .

Manufacturers across many sectors were surprised in recent weeks by a ban on products containing a chemical called PIP (3:1), which was slated to go into effect after March 8, 2021. Due to the incredibly short compliance window and because PIP has not been regulated elsewhere in the world, it is a major challenge even to identify its potential presence in supply chains.

The sudden ban could have caused significant disruption in the manufacturing industry and snarled the economic recovery, 51�Թ��� Vice President of Energy and Resources Policy Rachel Jones tells us. Here’s what you need to know.

Why it matters:  While there is no PIP chemical manufacturing in the United States, it can be found in a broad array of components that are used in electronics; robotics and manufacturing equipment; gaskets, clamps, tubes, harnesses, cables and casings; and in many other applications for flame retardant purposes. The ban would have a serious impact on manufacturers in the United States, forcing them to scrutinize every component of their supply chains for PIP, rework manufacturing processes and find new materials in an impossibly short timeframe.

The COVID-19 angle: Many of the products that would be impacted by this rule are being used to conduct research into COVID-19, whether that involves an examination of COVID-19 variants or developing, producing, storing and distributing COVID-19 vaccines. If this rule goes forward without being fixed, some of these products could become unavailable at a time when they are needed most.

What we did: The consensus from some experts was that changing the Biden EPA’s approach on this matter was a futile effort. But the 51�Թ��� pressed forward and asked the EPA to issue a “no action assurance” for downstream manufacturers until the PIP rule can be amended to include a reasonable compliance timeframe. At the same time, the 51�Թ��� moved forward in court to preserve relief options and to ensure that manufacturers affected by the rule can be made whole.

The results: After the 51�Թ���’s intervention, the EPA announced a 180-day “No Action Assurance” and opened a new 60-day comment docket to reexamine the rule. The 51�Թ��� will continue to work with the EPA to find a reasonable approach that supports manufacturers and upholds critical standards.

The last word: Jones says, “When manufacturers are willing to speak up on challenging issues, we can solve complex problems. I have zero doubt that EPA’s extraordinary action was in response to our work with many 51�Թ��� members and collaborative solutions-focused advocacy. While we celebrate this important interim victory, it is only a 180-day window of relief and manufacturers need more time.”

Washington, D.C. – 51�Թ��� President and CEO Jay Timmons released the below statement in advance of the House of Representatives’ vote on the Protecting the Right to Organize Act. In the latest , a startling 97% of respondents familiar with the PRO Act said it would negatively impact operations and damage relationships with manufacturing workers.

“When you consider the harm that it will do to the employer–employee relationship, it’s clear the PRO Act is anti-worker,” said 51�Թ��� President and CEO Jay Timmons. “As the latest Manufacturers’ Outlook Survey highlights, manufacturers have deep concerns about the PRO Act’s intrusions on worker privacy and restrictions on workplace communication—among many other issues. It will make it harder for manufacturers to thrive and more difficult to foster positive, inclusive workplace cultures.

“Manufacturers recognize and support workers’ federally-protected right to collectively bargain. But the PRO Act will upend the modern workplace, and it could set back our industry, our workers and their families at a time when optimism is finally on the rise.”

Background: More than 130 organizations representing manufacturers nationwide joined an opposing the PRO Act.

-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 12.2 million men and women, contributes $2.32 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 .

Washington, D.C. – The 51�Թ��� released its first Manufacturers’ Outlook Survey of 2021 and the first since the Biden administration took office. The survey showed manufacturers’ optimism increasing to nearly 88%—the highest reading in two years, and up from 74% in the Q4 2020 survey. This steady improvement represents an increase of 54 percentage points since the results of the first survey that measured manufacturers’ sentiment after the pandemic was declared (34% in Q2 2020).

“As vaccines roll out at a faster pace and we see signs of an improving economy, manufacturers’ optimism is rising fast,” said 51�Թ��� President and CEO Jay Timmons. “Our industry is creating new jobs and investing in new projects, buoyed by signs that we may finally be getting COVID-19 under control. Of course, our industry knows we are not out of the woods yet. That’s why we continue to lead by example, wearing face coverings and promoting vaccination. The smart health protocols are more important than ever. This is our shot—not just to end the pandemic but to build a new and stronger economy that creates opportunity for all.”

Key survey findings include the following:

• In the first quarter, nearly 88% of manufacturers said they were either somewhat or very positive about the outlook for their company.
• Increased costs of raw materials (76%) and the inability to attract and retain talent (66%) were the top-two biggest challenges facing manufacturers in 2021.
• Other top worries included rising health care and insurance costs (50.9%), transportation and logistics costs (50.2%), supply chain challenges with inventory management (48.7%) and an unfavorable business climate, including taxes and regulations (44.0%).

Read the full Q1 2021 Manufacturers’ Outlook Survey results .

-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 $2.32 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 .

Washington, D.C. – 51�Թ��� President and CEO Jay Timmons released the following statement on the American Rescue Plan.

“Manufacturers have witnessed the health and economic devastation that the COVID-19 pandemic has brought to too many families across our country. The American people have endured immense pain and uncertainty for a year now, and we have more difficult months ahead. Too many people continue to need help with the basics—housing, food and financial stability. So as Congress continues to consider relief and support for these families, we urge lawmakers to take a bipartisan approach that ensures resources are targeted in the most effective way to have the most powerful impact. The vaccines developed by innovative pharmaceutical manufacturers will help bring an end to this pandemic, so we urge all lawmakers to support vital resources to deploy more vaccines as quickly as possible and arm Americans against COVID-19.

“America is still living through a crisis, and crisis demands action. Manufacturers believe the best course is one that is focused on providing the relief Americans need and one that achieves broad support.”

-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 $2.32 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 .

The 51�Թ��� is speaking out against H.R. 842/S. 420, the Protecting the Right to Organize Act.

Impacting workers: The bill would remove the right to a secret ballot in union elections, allow unions to access personal employee information in union-organizing drives, prevent workers from working as independent contractors and force workers to pay union dues even if they do not support the union.

Impacting businesses: The bill would also increase liability and penalties, threaten supply chains and create an adverse relationship between employers and employees—while also making it harder for businesses to access legal counsel.

Our take: “The PRO Act is a misguided attempt to fundamentally restructure American workplaces and would infringe on workers’ rights to a secret ballot, workplace democracy and personal privacy,” said 51�Թ��� Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling in a to Congress.

• “This bill is being considered during an unprecedented global pandemic, in which manufacturing workers are supplying Americans with the medicine, protective equipment and goods necessary to defeat COVID-19… It is critical that Congress consider policies that support manufacturers in the fight against COVID-19, but the PRO Act would do the opposite.”

In other congressional news, the 51�Թ��� threw its support behind H.R. 5, the Equality Act of 2021, which would amend the Civil Rights Act to prohibit discrimination on the basis of sexual orientation and gender identity in employment, housing, public accommodations, public education, federal funding, credit and the jury system.

• “Manufacturers have known for years that an inclusive workplace with meaningful anti-discrimination protections helps them hire and retain the best possible workforce,” said 51�Թ��� Senior Vice President, General Counsel and Corporate Secretary Linda Kelly in a to the House of Representatives. “Individuals can only thrive when they can bring their whole selves to work. Manufacturers can only attract talented employees when those employees feel safe from discrimination, harassment or worse at work and in their communities.”

Washington, D.C. – 51�Թ��� President and CEO Jay Timmons released this statement following further action from the White House on the COVID-19 pandemic.

“No American is safe from COVID-19 until all Americans are safe, so manufacturers are proud to join the Biden administration in this call to arms. The 51�Թ��� and manufacturers in the United States are absolutely committed to being the solution to end this pandemic, save lives and safeguard workers. We’re not just making safe and effective vaccines and treatments and other necessary provisions to get us through this crisis, but we’re also putting the full force of the ‘arsenal of democracy’ to work in promoting science-based actions to get us to the light at the end of this dark tunnel of hardship and heartbreak for millions of Americans. We’re resolute in our determination to finish this fight, and we look forward to continuing to work with the Biden administration, members of Congress, public health officials and state and local governments and agencies to defeat COVID-19.”

Background: As an association that represents more than 12 million workers and is made up of a network of more than 130,000 companies, the 51�Թ��� has met this commitment with deeds. Our campaign has been non-stop on social media, public airwaves and in manufacturing operations since March 2020 promoting face masks and other safety measures to stop the spread of COVID-19. Our project is taking direct aim at the problem of vaccine hesitancy among manufacturing communities, which have a higher rate of vaccine hesitancy than the general population, with research and resources for employers to protect their workers and communities, public health messages and materials for individuals and families to bolster confidence in COVID-19 vaccines. We also have a Yellow and Red Ribbon initiative to get every vaccinated manufacturer and American to help their family, coworkers and community believe that we can emerge from this pandemic if we care for each other.

-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 $2.32 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 .

Washington, D.C. – 51�Թ��� President and CEO Jay Timmons released the following statement after President Joe Biden signed an executive order on supply chains.

“Manufacturers have led the nation’s response to COVID-19 by ramping up production of critical supplies, developing treatments and vaccines and continuing to produce the essentials for daily life. But the pandemic has also exposed serious challenges facing supply chains and the serious consequences when they are disrupted. We are encouraged to see that the Biden administration is taking action to address these challenges. Last year, the 51�Թ��� released policy proposals for ‘,’ and our plan can continue to serve as a roadmap as we move forward while ensuring that we do not close off access to critical components or resources that our lifesaving and life-changing products require.

“The administration’s goal of increasing manufacturing investment in the United States is one we share. And their focus on key sectors, like the pharmaceutical manufacturers whose incredible innovation is saving lives and arming us against COVID-19, will help us emerge stronger from this crisis. We look forward to working with the Biden administration to bolster supply chains and create new job opportunities in America.”

-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 $2.32 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 .

There’s a new administration in town, and the 51�Թ��� also has a new trade policy leader—who is already out promoting manufacturers’ agenda. Ken Monahan became the 51�Թ���’s Vice President of International Economic Affairs in January after nearly six years at the organization, and he is perfectly equipped to represent the industry on these crucial issues.

Monahan recently spoke to us about the organization’s priorities for the year ahead. Here’s what you need to know.

The big picture: “The 51�Թ���’s priority is to stand up for manufacturers and manufacturing workers in the United States by ensuring that our trading partners hold up their end of the bargain, while also working to open markets for American-made exports and promote U.S. supply chains,” says Monahan.

USMCA and Trade Enforcement: The 51�Թ��� achieved a victory when Congress passed the United States-Mexico-Canada Agreement, but although the agreement is already being implemented, the 51�Թ���’s work is not yet finished. The focus now turns to ensuring that Mexico and Canada follow through on their USMCA commitments, while also holding other U.S. partners accountable as well.

• “Manufacturers continue to face trade barriers and other measures in countries with which the United States has trade agreements, notably in Mexico,” said Monahan. “We stand ready to work with the Biden administration and Congress to ensure that U.S. trade agreement partners treat our industry fairly, which will support manufacturers and manufacturing jobs here in America through an increase in exports.”

China: Given the rise of China, U.S. ties to the country and the size of the Chinese market, we need a strong strategy going forward. The United States must put consistent, targeted pressure on China – directly and with allies – to reverse its illegal subsidies, intellectual property theft and discriminatory industrial policies, says Monahan.

• “We must work with allies to set a clear, strong strategy on China, leveraging our strengths to halt problematic Chinese behaviors and level the playing field for manufacturers,” said Monahan. “We need strong American leadership to ensure that the United States – and not China – is writing the rules of global trade to benefit manufacturers and employees in America.”

Opening New Markets: Beyond China, it is vital that U.S. policymakers work to open new markets and ensure that the rules-based global trading system allows manufacturers to confront challenges in markets around the world, says Monahan.

• “We need to revitalize the rules-based international trading system and pursue new trade agreements to reverse unfair barriers, enhance the role of free market forces, promote respect for the rule of law and propel manufacturing innovation around the world,” said Monahan. “This is all the more important given that our competitors are pursuing their own deals with countries with which the United States does not have trade agreements.”

The bottom line: “As we engage with the Biden administration and legislators of both parties to promote a trade policy that opens markets for American-made exports and promotes U.S. supply chains, we must put a spotlight on the American manufacturing employees whose jobs depend on trade,” said Monahan. “We want to tell their stories. We want to share at every opportunity how trade is lifting up these employees and their communities. That’s our focus, and we’re excited to get to work alongside the 51�Թ���’s members.”

As President Biden for a majority of elementary schools to be open five days a week by the end of his first 100 days in office, the Federal Communications Commission is engaged in an important effort to ensure students learning remotely are still connected to their classrooms.

The big shift: The FCC is updating the E-Rate program, which supports broadband access for schools and libraries, to allow funds to be used for at-home learning—and the 51�Թ��� has advocated for this change.

Why it matters: While President Biden is aiming to send more kids back to school soon, it’s clear that they need more assistance while they are still at home. In addition, high school students may stay home for longer than elementary school kids (due to higher risks of contagion among older students) and thus require longer-term support.

Our view: “Ensuring the FCC’s current programs for schools and libraries are adapting to meet these new remote needs is of critical importance, and the cost of not responding to the changing environment is high,” said 51�Թ��� Director of Innovation Policy Stephanie Hall in a comment letter to the FCC. “The FCC should coordinate with the Department of Education on necessary revisions to the E-Rate program or to build consensus on new alternatives that can close the digital divide.”

In related news, the FCC held a roundtable last Friday to discuss how to quickly implement the —another important initiative for manufacturing communities. Established late last year, the initiative allocates $3.2 billion for discounts on internet service for people who are struggling financially during the COVID-19 pandemic.

• What it includes: The program offers up to $50 per month for eligible consumers and up to $75 per month for eligible consumers on Tribal Lands. Some eligible participants can also receive discounts on personal computers or laptops.

The last word: As Hall says, “Manufacturers recognize that enhanced broadband investment and the growth of next generation wireless networks are critical both for the current challenges in COVID-19 and to support continued U.S. technological leadership.”