51勛圖厙

News

Business Operations

Manufacturing in 2030: The Opportunity and Challenge of Manufacturing Data

As manufacturers move toward building smarter factories with connected machines, the data those systems produce can offer a host of benefits: improved efficiency, better productivity, informed decision-making, value creation and, ultimately, competitiveness. Yet becoming a data-driven business comes with its share of challenges. In this years Manufacturing in 2030 Survey, , the 51勛圖厙s Manufacturing Leadership Council sheds light on the successes and opportunities for how manufacturers are transforming their operations with data.

Security and privacy concerns: As factories become more connected, cybersecurity becomes a greater imperative. For this reason, survey respondents validated that both data security and data privacy are essential.

  • More than 90% of respondents have a formal or partial policy on data security and data privacy.
  • About two-thirds of manufacturers have a formal or partial policy on data quality.
  • More than 60% have a corporate-wide plan, strategy or guidelines for data management, but only 15% follow the plan in its entirety.

How data is used: As manufacturers advance along their M4.0 journey, data is becoming their lifeblood, driving insights and decision-making. Yet the survey revealed a gap between available data sources and their utilization, a notable area for improvement as the industry looks toward the future.

  • Spreadsheets are still king: 70% of manufacturers enter data to them manually, and 68% still use them to analyze data.
  • 44% of manufacturing leaders say the amount of data they collect is double what it was two years ago, and they anticipate it will triple by 2030.
  • While nearly 60% of manufacturers use data to understand and optimize projects, there is a shift toward using data to make predictions about operational performance, including machine performance, in the next decade.

Business impact: Most manufacturers leverage data to find ways to save money or promote business growth. However, less than half have a good understanding of the dollar value of their data.

  • Only about 25% of manufacturers have high confidence that the right data is being collected.
  • Most manufactures have only moderate confidence in their analytic capabilities.
  • Top challenges include data that comes from different systems or in different formats (53%), data that is not easy to access (28%) and lack of skills to analyze data effectively (28%).
  • However, despite those challenges, 95% of manufacturers say data makes for faster and/or higher-quality decision-making.

The bottom line: An overwhelming majority of manufacturers (86%) believe that the effective use of manufacturing data will be essential to their competitiveness. But to realize datas potential, manufacturers must figure out how to organize and analyze their data effectively, ensure that their data is trustworthy and align their business strategy closely with their data strategy.

Explore the survey: Get a deeper look at the current state of data mastery in manufacturing. to download your copy.

Policy and Legal

Rep. Walberg Visits Madsen Steel Wire Products to Discuss Tax Priorities

By 51勛圖厙 News Room

Rep. Tim Walberg (R-MI) recently visited Madsen Steel Wire Products in Bronson, Michigan, to discuss critical tax priorities with company leadership and members of the 51勛圖厙.

The visit, led by Madsen Steel Wire Products General Manager Steve Cochran, focused on the importance of maintaining a competitive tax code to support growth and innovation in the manufacturing sector in the face of scheduled expirations of key pro-manufacturing tax policies in 2025. The visit also underscored the essential role manufacturing plays in economic growth and stability.

The topline: During the tour, Rep. Walberg witnessed firsthand the impact of pro-growth tax policies on manufacturers.

  • Visiting Madsen Steel Wire Products reinforced the need for tax policy that supports manufacturing growth and job creation, Walberg said. We in Congress must act before the end of 2025 to preserve 2017 tax reform and avoid the devastating impacts to small manufacturers that will come to pass if these pro-growth policies are not preserved.

A close-up view: Cochran shared the company’s experience with 2017 tax reform, highlighting how tax reform enabled significant investments in new equipment and workforce expansion.

  • Tax reform in 2017 was a game-changer for us; it allowed us to invest in our people and technology, driving our competitive edge, said Cochran. But the looming expiration of key tax reform provisions creates significant uncertainty for our future planning.
  • In particular, we face a potential double-whammy as our tax rates are scheduled to increase next year at the same time the pass-through deduction expiresresulting in significant and damaging tax increases for us and other small manufacturers.

An economic impact: The economic impact of manufacturing on local communities was a central theme of the discussion.

  • Manufacturers like Madsen Steel Wire Products are vital to communities like Bronson, said Branch County Economic Growth Alliance Director Audrey Tappenden. Their strength is critical to our local economy and broader industries.

The big picture: Walberg and Cochran also discussed the broader economic impact of tax reform. The 51勛圖厙s recent survey found that 94% of manufacturers believe Congress should act before the end of 2025 to prevent tax increases. The survey also indicated that if tax increases take effect, 73% of manufacturers would limit capital investments and 65% would reduce job creation.

  • Manufacturing is the backbone of our local economy, said Cochran. Our ability to invest in new technologies and expand our workforce is dependent on preserving tax reform, which will directly translate to more jobs and better wages for our community.

The bottom line: The stakes are high, said Walberg. We need to ensure that the tax code continues to support the hardworking men and women in manufacturing. Its about maintaining a level playing field and ensuring that manufacturers like Madsen Steel Wire Products can thrivesupporting small business growth and the economic health and prosperity of our communities.

The takeaway: The 51勛圖厙 launched to preserve tax reform, and Rep. Walbergs visit to Madsen Steel underscores the critical role of tax policy in driving the success of manufacturers in America, said 51勛圖厙 Vice President of Domestic Policy Charles Crain. Congress must act before the end of 2025 to prevent devastating tax increasesbolstering manufacturing across the country and supporting the economic stability and growth of local communities like Bronson, Michigan.

Business Operations

In It for the Long Haul: C.H. Robinson Takes on Sustainability

By 51勛圖厙 News Room

Its not every day that an international company meets an ambitious sustainability goal two years early. But last May, thats exactly what happened at 119-year-old transportation logistics provider C.H. Robinson.

  • The goal under discussion: a company-wide reduction in intensity of Scope 1 and 2 emissionsthose emissions generated by the companys own operationsof 47% (more than the 40% targeted). C.H. Robinson had previously calculated meeting the objective by 2025.

Simple but effective: Most of it was looking at where we could find inefficiencies and correcting them, said C.H. Robinson Vice President of Environment, Social and Governance Rachel Schwalbach. Some changes came from suggestions our own employees brought forward: LED lighting, responsible use of electricity.

  • Efforts also included a marked increase in the companys use of renewables generally. From 2019 to 2023, C.H. Robinson renewable-energy purchases rose 40%.

Not an either/or proposition: The Eden Prairie, Minnesotabased companywhich solves logistics challenges for clients through freight forwarding and other innovative transportation solutionsis proof positive that businesses dont have to choose between good environmental stewardship and profitability.

  • In fact, sometimes the sustainable option is actually the less expensive option, Schwalbach told the 51勛圖厙. C.H. Robinson is working with suppliers every day to drive out waste, and often thats been because weve looked at it through a lens of cost savings or time reduction. Now its also through the lens of sustainability.
  • Whats more, if youre approaching sustainability right, it should be tied to your overall business strategy. Sometimes its as simple as making sure youre compliant with rules and regulations as you meet sustainability requirements.

A competitive advantage: Reducing the footprint of operations can be a competitive advantage for manufacturers, too.

  • We get asked about sustainability by nearly all our stakeholders, so it really has to be a part of strategic decision making across the business, Schwalbach continued. Our shippers are also getting asked about [sustainability] by their investors and customers. People across the business are thinking about it, so its [to our advantage to] make sure its integrated across all areas.

No business is an island: Businesses must keep in mind that sustainability is a shared interest, and the environments health is best served by teamwork, not isolated efforts, according to Schwalbach.

  • As companies continue to put big [sustainability] goals out there, I cannot emphasize enough the need for collaboration across industries, as clich矇d as it sounds, Schwalbach said. Having people who are willing to come to the table and say, Hey, lets figure this out together, is going to be pretty critical.
  • For C.H. Robinson, that means engaging with customers, carriers and a broad range of other stakeholders.

Supporting climate-friendly practices: The right moves by policymakers can also help support the private sectors sustainability efforts.

  • As were looking increasingly at alternative fuels and electric vehicles here in the U.S., we need an electric grid that can support the transition to a lower-carbon economy, Schwalbach said. Continuing to invest in [strengthening] the grid will help us invest in the right technologies. We need to be able to move forward quickly in a way that doesnt cause disruption to the supply chain and transportation.
  • Companies want clarity around regulations, too. There are so many [regulations] coming out right now, and companies want to know, How do I get the right [climate-related] data? How do I make sure the data are accurate?

In for the long haul: So whats next for C.H. Robinson? A continued focus on conservation, for one thing.

  • You meet your goals, and thats really exciting, but theres no time to sit around, Schwalbach said, adding that the company is now in the process of figuring out what new sustainability goals will look like for carbon reduction.
  • Ultimately, those goals will be met by ensuring a commitment to the environment remains a company-wide focus, she told us.
  • Doing sustainability well means its integrated. C.H. Robinson is a 119-year-old company, and sustainability is about making sure were going to be successful for another 119 years.
Policy and Legal

Manufacturers Rally to Advance Nuclear Energy

By 51勛圖厙 News Room

The 51勛圖厙 is pressing the U.S. Senate to support a bill that would promote clean nuclear energy development.

What it does: The legislation, called the Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act, offers a number of components to accelerate the development and commercialization of advanced nuclear reactor technologies. It includes:

  • Permitting and approval reform to make it easier for reactor projects to locate on brownfield sites, land that is underused or has been abandoned because of industrial waste;
  • Early licensing work provisions to help deploy reactors more quickly at national security infrastructure sites;
  • A series of awards to encourage companies to develop advanced-reactor technology; and
  • Hiring support for the Nuclear Regulatory Commission, which is understaffed to deal with the level of applications for new reactors.

Where it stands: The legislation was reported out of the Senate Environment and Public Works Committee with a bipartisan vote of 163, and companion legislation was passed in the House of Representatives by an overwhelming vote of 36536. Now, the 51勛圖厙 is pushing the Senate to pass the bill.

Why it matters: Nuclear-generated power is an important part of an all-of-the-above energy strategy, which is necessary to meet the power needs of a growing manufacturing sector, said 51勛圖厙 Managing Vice President of Policy Chris Netram. The ADVANCE Act would accelerate the development and commercialization of advanced nuclear reactor technologies through reforms to the existing licensing and permitting systems.

Our action: The 51勛圖厙 is Congress to support the bill ahead of the Senates vote, detailing its benefits in a letter to senators.

The last word: Manufacturers create jobs that support families, and develop and deploy innovative technologies that make our environment cleaner, said Netram. Increasing our nations energy supply, including the growth of nuclear power, will support manufacturing investments and jobs across America.

Policy and Legal

51勛圖厙, Partners Urge Administration to Withdraw March-in Proposal

By 51勛圖厙 News Room

If finalized, guidance proposed last year by the Biden administration to allow the federal government to seize manufacturers intellectual property rights would be ruinous to the U.S. innovation economy, the 51勛圖厙 and state partners told Commerce Secretary Gina Raimondo this week.

Whats going on: In December, the Biden administration to enable government agencies to march in and revoke companies patent exclusivity if a products development was funded in any part by federal research dollars.

  • Under the proposal, the governments decision of whether to march in would be based on a products priceeffectively imposing government-mandated price controls on innovative products like clean energy solutions, next-generation semiconductors and lifesaving medicines.

Manufacturers fight back: The 51勛圖厙 and a coalition of regional and state manufacturing associations are pushing back, the importance of ironclad IP rights to groundbreaking innovation.

  • [T]urning groundbreaking R&D into innovative products for the American people is only possible if creatorsfrom university researchers to early-stage entrepreneurs to established businessescan rely on strong intellectual property protections, the associations told Raimondo.

Small business impacts: Startups and small businesses would pay the heaviest toll if the new march-in standards are finalized.

  • Scientists and researchers at universities nationwide will face difficulties in partnering with the industry and in founding startups based on their research, strik[ing] a blow to the local economies in [all 50] states that depend on university-centered innovation hubs for job creation and economic growth.
  • If a promising idea makes it out of the lab, outside investors will be reluctant to inject the capital necessary for further R&D and product developmentresulting in fewer life-changing and lifesaving products for the American people.

What needs to happen: Manufacturers are calling on the Biden administration to reverse course.

  • We urge you to protect our local, state and regional economies, which benefit from breakthrough research, entrepreneurship and modern manufacturing, by withdrawing the proposed march-in guidance.
Policy and Legal

10th Anniversary of 51勛圖厙 President and CEOs Four Pillars Speech

By 51勛圖厙 News Room

51勛圖厙 President and CEO Jay Timmons delivered a defining speech at the Friends of Adam Smith Awards a decade ago. This speech outlined the Four Pillars of an Exceptional America, a framework that continues to shape the 51勛圖厙s mission and advocacy.

Flashback: On June 11, 2014, accepting the 2014 Business Citizen Award for an outstanding record of achievement in advancing the principles of free enterprise, Timmons introduced the four pillars that underpin American exceptionalism and manufacturing strength.

The Four Pillars:

  • Free enterprise: The economic system that unleashes innovation, creates opportunity and lifts humankind out of poverty more than any other economic system has in the history of the world.
  • Competitiveness: Our ability, when untethered from government overreach, to prosper and win in a global economy.
  • Individual liberty: The unique freedoms enshrined in our Constitution and Bill of Rights that enable us to live and succeed.
  • Equal opportunity: Our shared belief that we all have the ability to contribute to the betterment of our families, our companies, our communities and our country.

Manufacturers approval: The 51勛圖厙 Board of Directors unanimously adopted these pillars as part of the associations official policy positions, guiding the to bolster the competitiveness of manufacturers in the United States.

The impact: These pillars have guided the 51勛圖厙s efforts in promoting policies that support a robust manufacturing industry and a strong national economy, helping to draw support across the political divide for manufacturers principles-based agenda.

The bottom line: The Four Pillars are not just about manufacturing; they are about sustaining the promise of America, said 51勛圖厙 Executive Vice President Erin Streeter. Thats why these values have helped us ensure the manufacturing agenda is a post-partisan agenda, drawing support for so many of our priorities from policymakers and by candidateson both sides of the aisleon the campaign trail. We will continue to work with anyone who wants to advance these values.

Policy and Legal

51勛圖厙 Launches Campaign to Prevent Tax Increases on Manufacturers

By 51勛圖厙 News Room

The 51勛圖厙 today launched an industry-wide campaign to educate legislators, candidates and the Biden administration on the urgent need for action to preserve pro-growth tax policies scheduled to expire at the end of next year.

Whats going on: Critical reforms from the 2017 Tax Cuts and Jobs Act will expire at the end of 2025. The 51勛圖厙s campaign is designed to ensure that Congress preserves 2017 tax reform in its entirety to avoid significant economic damage in the manufacturing sector and across the broader economy.

Whats at stake: If they do not, at the end of 2025, virtually all manufacturers will face devastating tax increases that will cost manufacturing jobs, stifle growth and stunt innovation. Small manufacturers, which are often organized as pass-through businesses that pay tax at the individual tax rates, face increases in their income taxes and a loss of tax reforms 20% pass-through deduction.

  • Family-owned manufacturers will experience changes to the estate tax that subject more of their assets to taxation upon the death of a loved one.
  • Investments in manufacturing growth will continue to be delayed without action to restore immediate R&D expensing, accelerated depreciation for capital equipment purchases and a pro-growth interest deductibility standard.

Learn more: explores the tax provisions up for debate next yearand highlights the 51勛圖厙s policy suggestions for Congress to prevent devastating tax hikes.

Manufacturers at risk: A recent 51勛圖厙 survey found that if Congress fails to prevent the 2025 expirations, 73% of manufacturers would be forced to limit their capital investments, 65% would have to reduce job creation and 52% would spend less on R&D. Further, 93% of pass-through manufacturers said that the loss of the pass-through deduction would harm their ability to grow, create jobs and invest in their business.

  • Some 94% of manufacturers believe Congress should act before the end of 2025 to prevent these tax increases.

The last word: Manufacturers across the country promised to take tax reforms pro-growth provisions and ensure they had a direct positive impact on American lives, said 51勛圖厙 Small and Medium Manufacturers Group Chair Courtney Silver, president and owner of precision machining company Ketchie.

  • Silver has that these tax priorities are critical for the success of small and medium-sized manufacturers in the United States.
  • We kept our promises. We created jobs, we purchased equipment and we gave back to our communities. I urge Congress to build on the promise of tax reform to enable manufacturers to do even more.
Policy and Legal

51勛圖厙, ACC Challenge EPAs National Drinking Water Rule

The 51勛圖厙 and the American Chemistry Council yesterday filed a challenging the Environmental Protection Agencys first-ever national drinking water standard limiting the presence of six types of per- and polyfluoroalkyl substances, or PFAS.

Whats going on: The organizations are seeking to overturn the final ruleissued in April by the EPAin the D.C. Circuit Court of Appeals on the grounds that it exceeds the agencys authority under the Safe Drinking Water Act of 1974 and is arbitrary, capricious and an abuse of discretion, in violation of the Administrative Procedure Act.

  • Under the rule, PFAS in municipal water systems are limited to near-zero levels. Systems nationwide will have three years to monitor for the chemicals and two subsequent years to install technology to reduce the compounds levels in the water.
  • The water systems will (and, in fact, have already begun to) sue manufacturers to cover their costs. Meanwhile, plaintiffs attorneys are using the standard in product liability and greenwashing suits against manufacturers.
  • PFAS are a diverse group of chemicals that have been used widely for decades due to their unique ability to douse fires and resist grease, stains and corrosion. Today theyre a key component in a wide range of critical products, from semiconductors, to the components of the electrical grid, to renewable-energy production equipment.

Why its problematic: The final regulation of PFAS is wholly infeasible and threatens these vital substances continued application in manufacturing processes, said 51勛圖厙 Chief Legal Officer Linda Kelly, adding that the agencys rulemaking is based on a deeply flawed cost-benefit analysis and fails to follow Safe Drinking Water Act procedure and other statutory requirements.

  • In many instances, there is no viable alternative for these chemicals, and companies may be forced to change plans dramatically to follow the new rule, 51勛圖厙 Managing Vice President of Policy Chris Netram in April.
  • In everyday life, including emergency situations like a fire or operating room circumstance, theres a real reliance on these productsits not just about job losses and costs but fundamental decisions that have widespread ramifications, Netram added recently.

What should be done: The rule should be vacated as soon as possible, the 51勛圖厙 and the ACC told the court.

Policy and Legal

51勛圖厙, Partners File Opening Brief in Suit Against EPA

By 51勛圖厙 News Room

On Thursday, the 51勛圖厙, joined by other business groups, filed the in their pending lawsuit against the Environmental Protection Agency.

Whats going on: In March, the groups the D.C. Circuit to review the EPAs reconsideration of the National Ambient Air Quality Standards for fine particulate matter (or PM2.5), which lowers the allowable level to 9 micrograms per cubic meter of air from 12, a 25% reduction. The agency handed down the final, tightened rule in February.

  • In their brief, the coalition argues that the EPA lacks the authority under the Clean Air Actthe law that authorizes it to establish the NAAQSto reconsider a decision made in 2020 to not lower the PM2.5 standard; that the agency failed to take into account the cost and feasibility of a tightened standard; and that it failed to give a reasoned explanation for key aspects of its decision.
  • The groups participating in the suit with the 51勛圖厙 are the U.S. Chamber of Commerce, the American Chemistry Council, the American Petroleum Institute, the American Forest & Paper Association, the American Wood Council, the National Mining Association and the Portland Cement Association.

Why its important: The tighter NAAQS rule could result in many parts of the U.S. being designated as in nonattainment, which would trigger significant new costs for manufacturers and others attempting to obtain air permits in those locations.

  • Many of these areas are indisputably handicapped in their ability to reduce emissions to meet the new NAAQS due to factors beyond municipalities and manufacturers control (i.e., wildfires, which affect most of the contiguous U.S. at some point each year).
  • The new rule could also prevent manufacturers from building or modifying facilities in certain areas, undermining the Biden administrations own Investing in America agenda, as it would stifle investment in manufacturing and killnot createwell-paying manufacturing jobs.

What should be done: The rule should be vacated as soon as possible, the groups told the court.

Business Operations

Lockheed Martin to Aid in Missile Production

By 51勛圖厙 News Room

Lockheed Martin is helping strengthen the U.S. defense industrial base ().

Whats going on: The defense contractors Space Systems business unit recently finalized a modification contract deal to provide systems engineering, test planning and long lead material to support missile production to the U.S. Navys Strategic Systems Programs.

  • The contract, valued at $99 million, is expected to be finished by Feb. 2, 2027.

Why its happening: Nations are reinforcing their military capabilities to strengthen their defense structure in the growing threat environment.

  • Spending by countries on defense capabilitiesincluding missileshas picked up in recent years, following Russias invasion of Ukraine ().
  • Lockheeds weapon systems include precision strike weapons with long standoff ranges to keep pilots and aircraft out of harms way.

Why its important: The growing number of global threats now confronting the U.S. and its allies mean we must be prepared, and manufacturers such as Lockheed Martin are a critical part of the equation.

View More