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When the history of COVID-19 is written, it will probably confirm that this was the greatest mobilization of manufacturing power since World War II. From food to ventilators to the vaccines themselves, manufacturers are making the products that keep Americans safe, comfortable and hopeful. And they’ve done it all while contending with an economic crash, a raft of new regulations and new safety procedures that had to be implemented at top speed.

These extraordinary demands on manufacturers call for an unprecedented degree of policy support, and the 51�Թ��� is making sure they get it. As of September, the 51�Թ��� has achieved 60 policy wins for manufacturers. We recently talked to 51�Թ��� Senior Vice President of Policy and Government Relations Aric Newhouse about the 51�Թ���’s work over the past six months. Here is a condensed interview.

The plan: The 51�Թ���’s three watchwords throughout the pandemic have been “response, recovery and renewal”—in that order, says Newhouse.

• “The response phase focused on immediate health care needs like PPE; the recovery phase centered around businesses’ reopening needs and support for employees; and our long-term renewal efforts worked to strengthen the overall sector and economy.”
• The first few months were occupied with response and recovery, but by late summer, policymakers started thinking about long-term renewal, Newhouse explains.
• The 51�Թ��� worked out a broad program of reform, which included onshoring and reshoring policies. “That’s actually a conversation we’ve been driving for a long time, because the U.S. should be the best place in the world to manufacture.”

What’s next? Manufacturing continues to struggle in this recovery phase, so policymakers need to do even more. As Newhouse put it, “A bipartisan stimulus package is important, and we hope Congress can come together with the administration to put additional liquidity into the economy, provide a safety net for employees, support the health care sector and create liability protections for businesses.”

How the 51�Թ��� succeeded: Relationships were absolutely key, Newhouse says. “In this environment, with so much incoming and so little time, policymakers turned to people they trusted—and that included the 51�Թ���. This was a real test of the association’s strategy and credibility, and our hard work over the past few years paid off.”

He continued, “At the beginning of the COVID-19 crisis, [51�Թ��� President and CEO] Jay [Timmons] called for an all-hands approach. He challenged the 51�Թ��� to rethink who we are and refocus to ensure we were being as effective as possible to meet the crisis. That’s exactly what we’ve done.”

Companies with COVID-19 outbreaks could be vulnerable to costly lawsuits over workers’ transmission of the virus to their families, .

• Roughly 7% to 9% of COVID-19 deaths in the U.S. are believed to be “take-home infections,” where someone contracted the disease at work and then infects family members at home.
• Praedicat, a firm that evaluates risks for insurance companies, calculates that these types of lawsuits could cost companies as much as $21 billion if the number of U.S. COVID-19 deaths reaches 300,000.

As we explained back in July, a number of COVID-19 liability lawsuits are likely to be brought forward over the next two to five years, and the flood of COVID-19 litigation isn’t expected to begin until spring 2022.

More to the story: The 51�Թ��� prevailed on Senate leaders—and the bipartisan Problem Solvers Caucus—to include key liability protections in draft COVID-19 relief legislation, while its efforts with manufacturing association partners continue to yield advances in many states.

The U.S. Department of Labor announced a rule that would classify gig workers as contractors rather than employees, according to (subscription).

The rule: The new rule identifies two main factors as determinants of whether a person should be classified as a contractor or an employee.

• The first is how much a company controls the way a worker performs his or her job.
• The second is how much a worker can profit based on initiative, as opposed to earning a steady salary regardless of performance.

The upshot: The rule could likely shift the employment status of millions of Americans, including many in manufacturing. If they use contractors, companies do not have to pay the minimum wage, overtime, a portion of social security taxes, or unemployment insurance and workers’ compensation insurance.

A word from the 51�Թ���: “When finalized, the rule could solidify the use of independent contractors, including in manufacturing. Independent contractor arrangements benefit companies and workers by increasing flexibility and streamlining the human resources processes,” explains 51�Թ��� Director of Labor and Employment Policy Drew Schneider. He adds:

• “Manufacturers are currently operating under a confusing patchwork of state and federal laws that have defined independent contractors in numerous ways, causing legal uncertainty and unnecessary compliance costs.”
• “Manufacturers and their business partners will benefit from a clear and updated independent contractor standard that protects this important business practice and allows 51�Թ��� members to focus on producing America’s essential goods and services.”

The Securities and Exchange Commission changed an important standard for publicly traded companies today—the amount of stock that a shareholder must have to put proposals on the proxy ballot (which the full shareholder base votes on every year).

It might sound like a small thing, but this “threshold” is a big deal. 51�Թ��� Director of Tax and Domestic Economic Policy Charles Crain broke it down in a recent interview.

The previous standard: Previously, any shareholder holding $2,000 in stock for one year could put a question on the ballot, Crain explains. Since that’s a relatively low number, activists would go to dozens of companies and buy $2,000 of stock at each—not because they were interested in the companies’ performance, but because they wanted a platform on which to debate political issues.

Here’s a data point that illustrates the extent of the problem: In 2019, just three people sponsored 38% of all shareholder proposals at Fortune 250 companies, Crain says.

The resubmission problem: Once something was on the proxy ballot, it was also easy to resubmit it the following year, adds Crain. A ballot question only needed 3% support among shareholders to stay on the ballot for a second year. If it was voted down a second time, it had to get 6% to move forward the next year and just 10% after that. “Ninety percent of shareholders could reject a measure forever, and it could still get resubmitted every year,” Crain says.

What’s changed? The SEC’s new rule creates tiered thresholds, which will give more power to long-term shareholders.

• To submit a proposal after holding stock for just one year, an investor now needs to hold $25,000 in stock.
• If an investor holds stock for two years, the threshold drops to $15,000.
• If an investor holds stock for three years, it drops to $2,000.

The rule also changes resubmission thresholds to 5% after one vote, 15% after two votes and 25% after three votes to keep a failing question on the ballot in consecutive years. Some measures take time to gain support, and the rule allows for that while taking a more commonsense approach, Crain says.

Why it matters: Holding repeated proxy votes can be time- and resource-intensive for companies, says Crain, and politically motivated proposals distract businesses and investors from the real issues that drive long-term value creation for shareholders.

The 51�Թ���’s actions: Crain says, “The 51�Թ��� has called for proxy reforms for years, and we’ve engaged with both and the to highlight the need to modify the proxy ballot thresholds. Last November, 51�Թ��� President and CEO Jay Timmons praised the SEC for proposing a rule to combat activists that ‘pressure manufacturers to focus on political issues at the expense of company growth,’ and our on the proposal helped lead to today’s final rule. We’ve pushed for this outcome for years—and we’re glad the SEC has come down on the right side.”

With so many people working from home, access to high-speed internet has become more important than ever, according to (subscription). Still, some people—and particularly those living in rural areas—continue to struggle to connect.

Some higher speeds: On average, internet speeds have gotten faster. According to data from WhistleOut, which compares broadband and wireless internet plans, home internet speeds across the United States have increased from an average of 84.9 megabits per second in March to 94.6 megabits per second in July. The minimum broadband service speed, according to the FCC, is 25 megabits per second.

A few rough patches: Still, plenty of people are being left out. A study from Microsoft suggests that up to 150 million people across the country have slow or unreliable internet connections.

Why it matters: Broadband doesn’t just make it possible to work from home; it’s also important for COVID-19 response measures like contact tracing.

The 51�Թ���’s angle: In April, the 51�Թ��� released the “American Renewal Action Plan,” which calls for historic investment in our nation’s infrastructure, including digital infrastructure, to spur economic renewal and competitiveness. The 51�Թ���’s “Building to Win” strategy also includes a focus on broadband buildout along with other forms of infrastructure critical for manufacturing.

The word from 51�Թ���: “Connectivity was already a key issue for manufacturers before this crisis as they embraced digital transformation,” said 51�Թ��� Director of Innovation Policy Stephanie Hall. “The importance of universal broadband for our industry and communities is even clearer now as we turn to technology solutions for work, school and nearly every aspect of daily life.”

West Coast ports are being impacted by changing trade patterns, losing imports to the East Coast and Canada, among other competitors, according to (subscription). Some of that shift began in 2017, after infrastructure work made it possible for larger vessels to use the Port of New York and New Jersey. Meanwhile, West Coast ports aiming to move goods east must use networks of trains and trucks that run on crumbling U.S. infrastructure.

The breakdown: Ports on the West Coast took in less than 40% of seaborne imports during the first seven months of the year, with ports on the East Coast racking up a little bit more than half.

• Asian imports are still leaning to the West Coast, but the makeup is beginning to change. Last year, Los Angeles moved 9.4 million containers compared to 7.5 million containers for New York and New Jersey. Still, the New York/New Jersey East Coast port did become the second-busiest port in the country, bumping Long Beach, California, out of the runner-up spot.
• Canadian ports are also getting into the game, offering cheaper transportation services that undercut U.S. costs.

Related: West Coast freight networks—including railroads and trucks—are struggling to handle demand after limiting personnel and operations in the face of COVID-19, according to (subscription).

The 51�Թ���’s angle: The 51�Թ��� has urged Congress for years to enact infrastructure reform, laying out its priorities in its “Building to Win” blueprint.

Most recently, during United for Infrastructure (formerly Infrastructure Week), Sen. Rob Portman (R-OH) spoke to 51�Թ��� members at an event co-hosted by Nucor Steel about Congress’s response to the COVID-19 pandemic and the importance of infrastructure investment. During the event the senator noted, “The most sustainable path forward on surface transportation authorization is a one-year extension of the Fixing America’s Surface Transportation (FAST) Act.”

Washington, D.C. – 51�Թ��� President and CEO Jay Timmons released the following statement after the passing of Supreme Court Justice Ruth Bader Ginsburg.

“A true trailblazer, a fighting spirit, a fervent defender of equal opportunity and equal justice, Justice Ruth Bader Ginsburg challenged America to be better both in her career before the court and in her service on the court,” said Timmons. “She is without doubt, and perhaps like no justice before her, an inspiration to countless women and men. We honor her profound legacy best when we dedicate ourselves to breaking down barriers for others so that they may participate more equally in our democracy and in our society. We indeed have an obligation to carry on her commitment to those highest ideals.

“Many hearts are heavy in America tonight, and we extend our deepest condolences to her family, to her colleagues and to all of her loved ones. Justice Ginsburg served this nation until the very end. And it is that dedication that makes her a legend to a grateful country.”

-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 12.1 million men and women, contributes $2.36 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��� has released its third quarter Manufacturers’ Outlook Survey, which shows strong use of liquidity programs like the Paycheck Protection Program and Main Street Lending Program.

Of the 82.7% of respondents who say COVID-19 had or will have a negative impact on their cash flow, 72.1% noted they had obtained funds through the Paycheck Protection Program, Main Street Lending Program or other liquidity programs—especially small manufacturers. More importantly, of those firms taking advantage of such programs, 91.6% reported that those funds helped keep their business afloat, retain their workforce or meet other necessary expenses. Knowing how critical this was for the industry, the 51�Թ��� called for these programs and subsequent expansions in its “” and “.”

Manufacturing optimism has also rebounded to 66% since the second quarter of 2020, when it had the worst reading since the Great Recession. Still, the outlook remains below the historical average of 74.4%, and 62% of manufacturers expect their firm’s revenues will not get back to pre-COVID-19 levels until 2021 or later.

“Congress and the administration have acted on more than five dozen of the policy provisions that the 51�Թ��� made in our ‘American Renewal Action Plan’ and other recommendations,” said 51�Թ��� President and CEO Jay Timmons. “Without the bipartisan relief legislation signed into law earlier this year, this rise in optimism would not have been possible. But for our industry to truly recover and to keep our economy growing, further bipartisan congressional action is needed.”

Read the full survey results .

Background: In March, the 51�Թ��� released its “COVID-19 Policy Action Plan Recommendations,” which guided earlier relief legislation. In April, the 51�Թ��� released its “American Renewal Action Plan,” and Congress and the administration have acted on many of its provisions. To date, 60 provisions from the 51�Թ���’s plans have been adopted.

-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 12.1 million men and women, contributes $2.36 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 U.S. Senate is expected to vote on a Republican-backed relief bill after a long series of negotiations between Senate Republicans and the Trump administration, according to .

What it covers: The proposed legislation likely will include the following elements:

• A federal unemployment benefit
• Another round of Paycheck Protection Program funding
• More funding for COVID-19 testing and for schools
• Liability protections

What it (probably) doesn’t include: The package is expected to come in at around $500 million, which is far short of the $1 trillion bill Republicans supported at the end of July and even further short of the $3 trillion bill the House approved. This version likely won’t include the following elements:

• More funds for state and local governments
• Another round of $1,200 stimulus checks, which had been included in the last Republican plan

What’s next: The vote could happen in the Senate as early as Thursday, but this package is unlikely to get the 60 votes it needs to be filibuster-proof. Democrats have said the bill is much too narrow.

A word from the 51�Թ���: “Manufacturers continue to help lead the way in the COVID-19 recovery and renewal, and so we appreciate seeing a number of our priorities in this legislation, including liability protections for manufacturers, another round of Paycheck Protection Program funding and resources for additional testing and vaccine research,” said 51�Թ��� Vice President of Government Relations Jordan Stoick. “In the coming days and weeks, the administration, House and Senate have a real opportunity – and a responsibility – to put partisanship aside in order to find a consensus that helps manufacturers and all Americans.”

The U.S. is considering cracking down further on Chinese human rights abuses in Xinjiang, while President Trump had tough words about the U.S.–China relationship. Here’s an update on some important recent developments.

Human rights: The Trump administration is  on some or all products that include cotton from Xinjiang, the region where China has carried out the mass detention of mostly Muslim minorities. The order could have a substantial impact on global apparel makers.

Technology: The administration is also  China’s largest chipmaker, SMIC. The Department of Defense may add it to the “Entity List,” thereby restricting the company’s purchases of equipment made in the U.S. Beijing, as you might imagine, was not happy.

���𳦴dzܱ�����Բ�”?:��In a Monday press briefing, President Trump  of “decoupling” the U.S. from China. “If we didn’t do business with [China], we wouldn’t lose billions of dollars. . . . It’s called decoupling. So you’ll start thinking about it,” he said.

A data security standoff: As the U.S. continues to crack down on Chinese telecommunications companies, claiming that they pose national security threats, China has developed its own set of “global standards on data security,”  the WSJ (subscription). It’s trying to prevent the U.S. from convincing other countries to restrict Chinese access to or construction of key networks.

Canceled plans: About 100 official exchange forums between Chinese and U.S. officials have been canceled during the Trump presidency,  Bloomberg. This means diplomats don’t know what the other side is doing on a long list of policy issues, from pharmaceuticals to tech and more.