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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.

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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.

As you probably saw last week, the Trump administration announced a deal with Abbott Laboratories to produce more than 150 million rapid COVID-19 tests, per��. Abbott’s rapid tests cost about $5 to make and take just a few minutes to deliver results without lab equipment. Such antigen tests are not quite as accurate as molecular tests (which are conducted in a lab), and the FDA says that doctors might find it advisable to confirm a positive result with a molecular test.

Here are some more updates on the deployment of rapid tests, which is an important development in the COVID-19 response effort:

• The Trump administration offered more details about the shipments this week, announcing that these rapid tests would start making their way to states in mid-September, according to . Most of these tests are intended to go to first responders and to help schools and daycare facilities reopen.
• The investment has also come with an employment bump, as Abbott Labs brings on new workers to help produce the test, �ٳ������reports. Around 2,000 employees are needed to help meet demand, and no previous experience is required for jobs that will pay $15 an hour for the day shift and $18 an hour for nights, along with a $2,500 retention bonus.
• ��reports that another rapid test maker is seeking emergency FDA approval. Roche Holding AG will launch a rapid test in September in Europe and is hoping to get emergency authorization to roll it out in the United States, too.

Hospitals, businesses, schools and��individuals��will continue to need��protective gear—but how much and��for��how long? The 51�Թ��� has been working with the federal government to help manufacturers meet this urgent need,��acting as��a��go-between to get millions of masks, gloves and more where they��have to��go.��The 51�Թ��� and The Manufacturing Institute’s Center for Manufacturing Research have an estimate of how many disposable face coverings America’s workforce needs every month.

As part of��a recent Department��of Defense��seminar,��Herb Grant, the director of the 51�Թ���’s Creators Respond effort,��outlined how manufacturers can��get involved.��Here is a brief recap of the event.

How much?��Here’s what we know:

• As of July 9, the DoD had��already procured nearly 3 million gowns, nearly 140 million medical gloves, nearly 18 million surgical masks��and more than 5 million N95 respirators��(according to �ٳ����DoD’s��Joint Acquisition Task Force).
• The 51�Թ��� has estimated the demand for facial coverings��approaches��1.7 billion pieces per month—and that’s just for industries that don’t typically use PPE. Meeting that demand will require manufacturers to add capacity by investing in new or retooling existing production lines.

The DoD says that��information helped clarify��that��the total demand is not fully understood, but it is far greater than previously thought.

How long? According to Grant,���ٳ����deputy��director of �ٳ����White House Supply Chain Task Force��expects���ٳ����demand��for PPE to continue beyond next year,��and��perhaps even��through 2023.

How can manufacturers get involved? There are��three��major ways in which manufacturers can help, said Grant.

1. Increase your capacity to produce PPE:��Manufacturers��should evaluate whether they can��shift capacity or invest in new capacity—which may involve��talking to Creators Respond about��how the government can support those investments.
2. Sell PPE to the government:��Manufacturers can��find out��how their production lines up with the government’s needs and��consider participating in various��federal��programs.
3. Sell PPE to���ٳ����industry:��As the 1.7 billion��per��month demand��estimate shows,��industries across the country��need the PPE that manufacturers are producing—and will keep needing more.

How to sell to the government:��There are��three��things��manufacturers��need to do before selling products to the government, Grant advises.

1. Get��a DUNS number: A Data Universal Numbering System number is a unique ID that is required to register with the federal government for contracts or grants (you can obtain one ).
2. Register with SAM:��The System for Award Management consolidates the capabilities of existing federal procurement systems—and you can register at��.
3. Check for contracting opportunities:��The webinar��covered��a range of sites that offer contracting opportunities, including:
   1. ;��
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   3. .��

The last word:��“The bottom line is the manufacturing industry, which has been on the front lines, will continue to lead our country through recovery and renewal,” said Grant.

Check out a��full��recording of the event��.

President Trump’s plan to have businesses defer the employee’s share of payroll taxes is not going smoothly. The logistical difficulties are significant, and businesses have been expressing their frustration to the Treasury Department,����The Wall Street Journal (subscription).

The problem:��Employers are worried about the administrative burden. Plus, they’re concerned they may be liable for the taxes of employees who have changed jobs. And lastly, if Congress refuses to forgive the taxes, companies will be on the hook for a huge tax bill next year.

While companies await guidance on how to implement the President’s executive order, Treasury Secretary Steve Mnuchin said in an interview on Wednesday that he can’t force firms to stop withholding those taxes. Some tax experts say that companies will be disinclined to take the chance.

51�Թ��� involvement: In remarks yesterday to 51�Թ��� members, IRS Commissioner Chuck Rettig urged companies to continue weighing in with policymakers.

Chinese President Xi Jinping has been outlining an economic plan that will focus more on domestic consumption and markets, easing back from China’s reliance on trade and foreign investment, the Wall Street Journal (subscription)

Xi has been speaking publicly about this “domestic circulation” (as it’s translated) since May, according to Chinese officials. The details haven’t emerged yet, but more news should come out of the October “plenum,” the meeting of the Communist Party’s top leaders.

The chips are down:��U.S. sanctions are already having an effect, with telecom company Huawei reporting a shortage of processor chips that will stall production. The Chinese government recently announced it would provide tax cuts and other forms of financial help to its domestic chip industry.

What’s the prognosis?��Some experts think these measures won’t make much of a difference, however. As Paul Triolo, head of the geo-technology practice at Eurasia Group,����CNBC, “The preferential treatment outlined in the new policies will help in some areas, but in the short-term will have only marginal impact [on] the ability of Chinese semiconductor firms to move up the value chain and become more competitive globally.”

Interpreting China:��The Financial Times (subscription)����on U.S.–China relations: that China has taken a much more cautious attitude toward confrontation in the past month or two. For example, top Chinese officials have seemed to suggest that China is willing to talk and unwilling to let the relationship degrade further.

Meanwhile, in Taiwan��. . . U.S. Health Secretary Alex Azar discussed a trade deal with Taiwan on a high-profile visit to the country (though he didn’t spell out the details). While he was there, Chinese fighter jets flew across the median line in the Taiwan Strait.

Producer prices in the United States surged 0.6% in July, the largest jump in almost two years, according to . Meanwhile, core prices—what you get when you take out food, energy and trade margins—rose 0.3%. That was the third month of an upward trajectory.

What’s going on: Congress’s frantic spending to help us weather the pandemic isn’t increasing inflation. But that’s because there’s so little demand nowadays—businesses can’t raise prices because they need more customers to start buying again.

The 51�Թ��� breaks it down: “Even with sharp increases in raw material costs in July, overall costs remain in check for now, especially on a year-over-year basis,” said 51�Թ��� Chief Economist Chad Moutray. “Given the deflationary pressures seen in the economy in the spring months, it should not be a surprise that prices would bounce back strongly at some point.

“For its part, the Federal Reserve has pursued extraordinary monetary policy measures to help prop up the economy—providing a financial ‘bridge’ for consumers and businesses during the slowdown in activity, and it remains committed to its stimulative stance for the foreseeable future.”

Along with the many other things not happening this year are a wide variety of infrastructure projects. A report released by the American Road & Transportation Builders Association lays out the extent of the delays and even cancellations, reports . A few of the numbers:

• About $9.6 billion in projects have been delayed or cancelled.
• 16 states have nixed or postponed projects worth about $5 billion.
• 20 local governments are responsible for the rest, at $4.54 billion.
• 44 states, transportation authorities and local governments expect to see a drop in revenues . . . which could translate into less funding for infrastructure down the road (so to speak).

Why infrastructure matters: One industry that relies on infrastructure is, of course, transportation. And very soon, transportation will help save our economy and public health: once the COVID-19 vaccine is ready, it must be distributed nationwide.

Right now, delivery companies like UPS, FedEx and DHL are bolstering their networks and capacity to ship medical goods in anticipation of the vaccine, reports. Here are some of the details:

• Preparations include building “freezer farms” capable of storing millions of doses of the vaccine at low temperatures. UPS has started work on two such facilities, while FedEx is adding at least 10 freezer facilities.
• The companies will also need a lot of dry ice, which keeps medical supplies cold during transport.

This will be the largest vaccine distribution effort in history. Preserving and improving our infrastructure means that future generations, when faced with other health challenges, will be able to distribute medicines easily. And meanwhile, it will enable manufacturers to keep the economy thriving as only they can.

51�Թ��� involvement: Last month, the 51�Թ��� and 118 manufacturing organizations sent to Congress urging it to pass a long-term surface transportation bill, in part because of the challenges surrounding COVID-19.

The big picture: The 51�Թ��� has been an advocate for infrastructure reform long before the pandemic and will continue long after. 51�Թ��� Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling recently made the comprehensive case for infrastructure investment in a blog for

And for the full slate of 51�Թ��� recommendations, check out its “Building to Win” plan for candidates and elected officials, which the 51�Թ��� will keep promoting throughout the campaign season and during the next administration.

Washington, D.C. – 51�Թ��� President and CEO Jay Timmons released the following statement on the selection of Sen. Kamala Harris to join the Democratic ticket in the 2020 election.

“Sen. Kamala Harris has made history, and this is a milestone for America. When diverse voices have a leading role on the national stage, we are all better off. If Sen. Harris’ candidacy helps more young Americans see a place for themselves in public service, that is progress for our country. The selection of a running mate is one of the great mile markers in any presidential campaign—and manufacturers look forward to keeping our industry, and our issues, front and center with both the Biden–Harris and Trump–Pence campaigns.

“The path for the success of manufacturing in America is found in our ‘Competing to Win’ policy agenda—and we call on all candidates at every level to draw from it and rally Americans around these post-partisan ideas. Whether the issue is bold infrastructure investment, comprehensive immigration reform, strengthening the American workforce, expanding export opportunities, protecting research and innovation or many others, we will work with all leaders ready to advance our shared priorities.

“The men and women of America’s manufacturing workforce contribute mightily to the success of our nation. Just as we have been the arsenal of democracy during the major conflicts in our history, manufacturers are also playing a decisive leadership role in America’s response to COVID-19. By ensuring our industry has the right policies in place at the federal level, there is no doubt manufacturers will significantly drive our country’s recovery and renewal as well.”

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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 11.7 million men and women, contributes $2.37 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.