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With a recent three-year United Nations environmental report spearheaded by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) highlighting dire warnings about human impact on the planet, leaders in the United States are under renewed pressure to find solutions that work. In communities across the country, manufacturers are taking a stand for sustainability – and demanding action against climate change.

While manufacturers have created their own policies to reduce pollution and increase sustainability, manufacturing leaders are increasingly pushing for action. Although policymakers in Washington have yet to settle on a unified approach, the manufacturing industry is making clear that the existing state of affairs is unsustainable.

“Manufacturers hope we can all agree that the current policy – a disjointed system of federal and state regulations that take decades to install and often fail – is not the answer,” said Ross Eisenberg, Vice President of Energy and Resources Policy at the 51�Թ���. “A piecemeal regulatory approach just isn’t going to cut it.”

While proposals like the Green New Deal have garnered significant press coverage without gaining a single vote in Congress, manufacturing leaders are seeking opportunities for consensus on climate legislation by focusing on actionable solutions. These proposals include scaling up the adoption of energy- and water-efficient products and technologies, prioritizing innovation and creating pathways for the deployment of new technologies like carbon capture, utilization and storage. It also involves working collaboratively by creating public-private partnerships between government and manufacturers to help them further decarbonize. Finally, manufacturers are encouraging the United States to reengage with the international community in order to reduce greenhouse gas emissions together, rather than in isolation.

Manufacturers have unique qualifications to speak about this issue, as most have implemented meaningful programs to reduce greenhouse gas emissions, pioneer new strategies and technologies to reduce greenhouse gas emissions and set aggressive emissions reduction targets.

These actions have had a significant effect. Over the past decade, the manufacturing industry has reduced its greenhouse gas emissions by 10 percent while the sector’s value to the economy has increased 19 percent. It’s outpacing competitors and demonstrating that it is possible to reduce emissions without falling behind in a global market.

“Our barometer is that manufacturers in America must stay competitive in the global economy, and that requires realistic, practical policies that we can implement while we continue to do the things that make the manufacturing sector strong,” said Eisenberg. “Speaking for the 12.8 million men and women who make things in America, we’re ready.”

Miles Fiberglass, a small family-owned Oregon manufacturing company, announced it has been able to increase its business by thirty five percent due to tax reform, resulting in a surge of new hires and investment.

Due to a new provision in the tax law allowing for immediate write-off of new equipment, Miles Fiberglass purchased a new semi-truck and a second mixer to set up room for demand from a new customer, saving money on the new assets in the process.

“This will be a major part of our business,” Miles Fiberglass president Lori Miles-Olund said. “Tax reform helped us secure that customer.”

The company’s business growth prompted leadership to hire roughly a dozen new employees. The company also purchased a new infusion gun, which dramatically reduces emissions in the manufacturing process and enables further growth while creating a cleaner work environment for employees.

“They see the growth thanks to tax reform,” Miles-Olund said. “They see the addition of customers. It puts them at ease that business is good.”

Last year, Miles Fiberglass raised its starting wage by 9 percent thanks to the tax law, bumping everyone up the chart.  Growth has continued this year, and the company is already setting up plans to increase production for yet another customer.

“It’s going to be easier for us to get financing for future capital and purchase more equipment,” Miles-Olund said.

“It’s clear that, more than a year after its passage, tax reform continues to provide a boost to the U.S. economy and the U.S. manufacturing industry,” 51�Թ���’ Vice President of Tax and Domestic Economy Policy Chris Netram said. “Rolling back the law would only hurt manufacturers like Miles Fiberglass, and we’re seeing that concern reflected in our latest survey.”

Manufacturing businesses have long been proponents of equality in the workplace. As legislation to codify protections for LGBT individuals passes through the House of Representatives, the 51�Թ��� joined the U.S. Chamber of Commerce, Business Roundtable, and other members of the business community in advocating its passage, forging coalitions and providing congressional testimony.

Introduced with bipartisan support in the U.S. House and Senate in March, the Equality Act includes federal protections for individuals based on sexual orientation and gender identity under the existing framework of the Civil Rights Act, which already provides protection against discrimination on the basis of religion, national origin, race, color or sex. The goal of the legislation is to ensure that no person can face legal discrimination based on their gender or sexual orientation, setting a clear federal standard to enable individuals to succeed based on their abilities and qualifications to perform a job.

“Employers understand the importance of creating an environment in which the very best people can succeed based on merit,” Patrick Hedren, 51�Թ��� vice president, labor, legal and regulatory policy, said. “At the same time, manufacturers know that discrimination in any form is antithetical to the values that we work to uphold every day: equality of opportunity, individual liberty, free enterprise and competitiveness.”

In March, more than 40 other industry associations rallied to support the Equality Act, providing an important boost for the groundbreaking legislation. In the weeks since, manufacturing representatives have testified before the House Education and Labor Committee and signed a coalition letter to the House Subcommittee on Civil Rights and Human Services calling for the Act’s passage. As Congress considers the way forward, manufacturers have made clear that they intend to advocate forcefully on behalf of the legislation and uphold their commitment to workers of every gender identity and sexual orientation.

“The Equality Act creates a clear federal standard that matches the sentiments manufacturers already share: gender identity and sexual orientation have no impact on an employee’s abilities and discrimination is not welcome on the manufacturing floor,” Hedren said. “We look forward to working with Congress as this important legislation moves ahead.”

While some politicians in Washington and presidential candidates across the country are openly discussing rolling back key parts of the historic tax reform bill signed into law back in 2017, the 51�Թ���’ latest survey data paints an alarming picture of the impact such a move would have on the U.S. economy and the manufacturing industry in particular.

According to the 51�Թ���’s Manufacturers’ Outlook Survey from first quarter of 2019, two thirds (66 percent) of manufacturers would be forced to consider cutting back investments in the United States if Congress rolled back portions of the tax reform bill, while 62 percent would scale back projected growth in wages and bonuses. Meanwhile, more than half (54 percent) would cut back on hiring.

“These are scary numbers,” Chris Netram, 51�Թ���’s Vice President of Tax and Domestic Economic Policy, said.

The Tax Cuts and Jobs Act took the U.S. tax code from one of the least competitive among advanced economies to “just about average,” Netram said. “Backsliding to uncompetitive rates and policies tells companies that operate in a global supply chain that the U.S. is not open for business. It will force them to look elsewhere.”

“Long term, the global economy will still continue to grow,” Netram said. “But the United States won’t capture as much of it.”

Because taxes are a fixed cost in any investment, raising taxes drives the required rate of return on any investment even higher, raising the threshold for what would make an investment profitable and changing the calculus for businesses planning future investments in equipment and employees.

Small manufacturers have benefited from tax reform’s provision allowing for a 20 percent deduction of “pass-through” small business income. While much of the discussion in Washington has focused on the corporate tax rate, far more manufacturers file as pass-through businesses, meaning smaller firms would bear the brunt of a full tax reform repeal.

“The number of pass-throughs dwarfs the number of corporate filers,” Netram said. “If you were looking to harm small manufacturers, reducing or repealing the pass through deduction is how you’d do it. That’s one thing that’s so alarming about what some leaders are talking about in Washington.”

The 51�Թ��� has conducted its quarterly Outlook Survey since 1997. Last year’s aggregated results found the most optimistic reading among U.S. manufacturers in the survey’s history, with respondents crediting the tax reform bill as a major factor. A similar survey from 2018 found huge majorities were planning to increase investments, hiring and wages due to the tax law. Meanwhile, job growth in the industry in 2018 was the fastest in more than twenty years.

“Adopting a more competitive tax system has boosted the industry,” Netram said. “Rolling back the benefits of tax reform would make it more difficult to further grow our thriving American manufacturing sector.”

Washington, D.C. – 51�Թ��� President and CEO Jay Timmons released the following statement on the White House’s immigration proposal:

America’s immigration system is fundamentally broken, and manufacturers are committed to being part of the solution. The administration’s announcement moves us closer to a way forward, said Timmons.

Earlier this year, manufacturers offered our plan, ‘A Way Forward,’ to help guide leaders in Washington as they tackle this complicated issue. We were pleased to see the President’s plan aligned with several of our ideas, including focusing on economic realities, increasing employment-based immigration and welcoming those with skills to match workforce demands, along with enhancing overall security. Immigrants make our country stronger, and we agree with the President when he says we should expand legal immigration even more.

Manufacturers will continue working with leaders in both parties, on Capitol Hill and in the administration to achieve lasting reforms that bolster our national security, offer compassion and address economic and workforce realities. Ultimately, we all share the same goal—building a safer and stronger America.

In February, the 51�Թ��� released its immigration plan “A Way Forward” which identified seven core areas for action for Congress and the administration to take to fix our broken immigration system once and for all. Timmons also to see the problems firsthand.

-51�Թ���-

The 51�Թ��� (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 million men and women, contributes $2.25 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – 51�Թ��� President and CEO Jay Timmons released the following statement on the ongoing U.S.–China talks and the implementation of increased U.S. tariffs on Chinese products:

U.S. and Chinese officials must accelerate their efforts to reach a lasting agreement that ends China’s unfair practices, eliminates tariffs and provides real enforcement. These developments should add a greater sense of urgency to the negotiations.

For years, China has refused to play by the rules, harming manufacturers with intellectual property theft and other unfair trade practices. That’s why the 51�Թ��� was the first business association, in early 2018, to call for a bilateral, enforceable trade agreement to help level the playing field for America’s manufacturing workers.

A trade war will not solve our problems. So we look forward to the United States and China returning to the negotiating table to get this deal done as soon as possible.

The 51�Թ��� first called for the administration to pursue a bilateral trade agreement with China in a letter from Timmons to President Trump in January 2018. The 51�Թ��� also testified before the Senate Finance Committee and U.S. Trade Representative on the impact of tariffs and the importance of reaching an enforceable bilateral trade agreement with China. In August 2018, the 51�Թ��� released a full negotiating objectives framework for an agreement that will address China’s unfair trade practices and level the playing field for manufacturers in the United States.

-51�Թ���-

The 51�Թ��� (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 million men and women, contributes $2.25 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – 51�Թ��� President and CEO Jay Timmons released the following statement after the Senate voted to confirm Export-Import Bank nominees Kimberly Reed, Judith DelZoppo Pryor and Spencer Bachus, a move that will significantly enhance manufacturers’ competitiveness against foreign nations, including China:

Now that the Export-Import Bank is on track to be fully functional again, after a four-year hiatus, manufacturers in America can once more reach their full potential and more aggressively compete against China and others. While the agency was sidelined, billions of dollars’ worth of deals were lost to foreign competitors, resulting in tens of thousands of unrealized manufacturing jobs. Thanks to the leadership of President Trump, Leader McConnell and senators on both sides of the aisle, this self-inflicted damage is now over.

This bipartisan victory will be short-lived, however, if Congress does not act swiftly to reauthorize the Ex-Im Bank before the September deadline. For manufacturers, this is a serious threat looming on the horizon. If Congress fails to reauthorize the Ex-Im Bank, lawmakers will be responsible for slowing manufacturing’s growth and handing countries like China a competitive edge. Now is not the time to squander the historic progress we’ve made in recent years.

The 51�Թ��� has been a leading proponent of restoring the Ex-Im Bank, which has supported 1.7 million American jobs over the past 10 years, to full functionality. In January, Timmons sent a letter to Senate leaders urging them to approve swiftly the full slate of stalled, qualified nominees to the Ex-Im Bank’s board of directors following their bipartisan approval by the Senate Banking Committee.

Quick facts about the Ex-Im Bank:

• The agency has supported 1.7 million jobs over the past 10 years.
• On average, more than 90 percent of the Ex-Im Bank’s transactions directly support small businesses.
• The agency has generated $9.6 billion for taxpayers since 1992.
• Foreign competitors are stealing America’s competitive advantage by devoting hundreds of billions of dollars to official export credit agency financing for domestic manufacturers.
• The agency’s default rate is better than many commercial lenders and far below the 2 percent maximum rate set by Congress.

����������� to learn more about how the Ex-Im board vacancies impacted manufacturers and  for more information about its role as a critical tool in checking China’s ambitions.

-51�Թ���-

The 51�Թ��� (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 million men and women, contributes $2.25 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – The 51�Թ��� announced in a letter to members of the U.S. Senate today that it will key-vote Senate confirmation of Export-Import Bank nominees Kimberly Reed, Judith DelZoppo Pryor and Spencer Bachus:

The Ex-Im Bank has been hobbled for more than four years now, unable to consider any major U.S. sales greater than $10 million and unable to implement the reforms still outstanding from the 2015 Ex-Im Bank reauthorization, wrote 51�Թ��� Senior Vice President of Policy and Government Relations Aric Newhouse. Manufacturers in America have lost approximately $119 billion in output as a result, translating into 80,000 fewer American manufacturing jobs in 2016 and 2017. At the same time, nearly 100 foreign export credit agencies supported by countries from China and Russia to Brazil and Germany have been growing to promote exports on behalf of their industries and workers. The Senate must act to reverse this loss and restore the Ex-Im Bank to full operation by confirming Reed, Bachus and Pryor to the Ex-Im Bank Board.

-51�Թ���-

The 51�Թ��� (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 million men and women, contributes $2.25 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for more than three-quarters 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 Manufacturers or to follow us on Shopfloor, Twitter and Facebook, please visit www.nam.org.