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Policy and Legal

Proposed Right-to-Repair Exemptions Would Hurt Manufacturers, Consumers

By 51勛圖厙 News Room

The 51勛圖厙 before the U.S. Copyright Office last week, explaining how two proposed exemptions from copyright protections would weaken manufacturers intellectual property rights, do significant harm to their businesses and potentially endanger consumers.

Whats going on: The Copyright Office is considering whether to recommend two exemptions from the Digital Millennium Copyright Act that would allow users to circumvent measures protecting copyrighted content.

  • One proposal was designed to allow the so-called right-to-repair by enabling access to operational data (including diagnostic and telematics data) from automobiles, agricultural vehicles, marine vessels and more. The other is focused on industrial equipment.

51勛圖厙 speaks out: The basis of the so-called right-to-repair movement hinges on the false notion that owners do not have the ability to repair their own equipment, 51勛圖厙 Vice President of Domestic Policy Charles Crain said at the recent hearing. The truth, however, is that the majority of [original equipment manufacturers] already provide a wide range of resources and tools that allow usersand third-party repair businessesto maintain, diagnose and repair products.

  • The 51勛圖厙 previously submitted urging the Copyright Office not to adopt the proposed exemptions.

Why its important: These exemptions would undermine manufacturers IP rights in service of right-to-repairand the record does not support their adoption, Crain continued.

  • The exemptions are too broad and inadequately defined, and their proponents have failed to show that users will be adversely affected absent the ability to circumvent [copyright law].
  • Whats more, the exemptions would expose proprietary information to public consumption and use, likely endangering consumers and allowing for unlawful modifications of government-mandated safety and emissions limits.

The last word: In short, right-to-repair is a solution in search of a problem, Crain said.

Workforce

The MI Honors 2024 Women MAKE Award Winners

By 51勛圖厙 News Room

The Manufacturing Institutethe 51勛圖厙s 501(c)(3) workforce development and education affiliatehad ample reason to celebrate last night.

What went on: The MI held the gala, a night that recognizes outstanding women in manufacturing. Each year, the awards pay special tribute to 100 peer-nominated women leaders (Honorees) and 30 rising female stars (Emerging Leaders, women under the age of 30) in the industry.

  • The event, held this year at The Anthema waterfront concert venue in Washington, D.C.was sponsored by Caterpillar, Toyota, BASF, Trane Technologies, International Paper, Johnson & Johnson, Novelis and others.
  • It featured a vocal performance by singer Loren Allred, platinum-selling singer-songwriter of Never Enough from The Greatest Showman musical, who gained widespread fame after appearing on Britains Got Talent in 2022.

What was said: Caterpillar Group President of Resource Industries, 51勛圖厙 Executive Committee Member and Women MAKE Awards Chair Denise Johnson told the nights award winners that shes been the only woman in a room, or the only woman on a project many times in her career.

  • But [l]ooking around this theater and seeing the faces of the Honorees and Emerging Leaders tells me that times are changing.
  • She then addressed the honorees directly, saying, Your success, your work ethic and your stories will inspire the next generation of manufacturing leaders. … You are moving us along toward a future when women are not underrepresented in our industry.

From Honoree to Vice Chair: Toyota Motor North America Senior Vice President, Electric Vehicle Supply Susan Elkingtona 2014 Honoree of the awards, formerly called the STEP Ahead Awardswas this years awards vice chair. She attested to the power of the awards to help women advance in their careers.

  • [T]he Women MAKE network helped me realize the many qualities and experiences uniting all the women who have been inducted into this amazing network.
  • She noted the cruciality of the MIs Women MAKE initiative, which provides a platform for role models and mentors to encourage women to enter the field and succeed in it.

No limits: 51勛圖厙 President and CEO and MI Chairman of the Board Jay Timmons also discussed the importance of role models, a label aptly applied to all the award nominees.

  • Timmons, a parent of three, told the audience that he and his children recently learned the story of 30-year-old Cole Brauer, who last month made history as the first American woman to sail solo nonstop around the world.
  • Brauers story sends a message to thosefrankly, women or menwho might have been led to believe there were limits to what they could achieve or that their careers might be confined within guardrails, he said. Your examples are inspiring people in a similar way. You are powerhousesyour dynamism, your drive, your enthusiasmall these qualities supercharge modern manufacturing, making our industry an even more powerful force for good.

Amazing things: MI President and Executive Director Carolyn Lee called the nominated women powerhouses who have accomplished amazing things.

  • You deserve this recognition for your excellence and for everything you do to uplift others, Lee told the award nominees. But were not just celebrating. Being here to recognize these winners is shining a light and fueling the work to close the gender and talent gap in manufacturing.
  • Women account for less than one-third of the American manufacturing workforce, she went on, but endeavors such as the MIs Women MAKE America initiativethe nations premier program dedicated to closing the gender gap in the sectorand companies like yours are committed to closing that gap.

Learn more: For a full list of this years award winners, click .

Workforce

From Mentee to Mentor: Rockwell Automations Aaliyah Brown

By 51勛圖厙 News Room

a group of people posing for a photo

To hear Aaliyah Brown tell it, the start of her career in manufacturing was the result of a happy accident.

My interest in manufacturing actually started accidentally, the Rockwell Automation quality engineering team lead said with a laugh. I was hired as a high school intern [at age 16]. I had a lot of different positions within my role, from [learning] how our different products are utilized in the field, to project management, to printed circuit board design. Thats when I really started to dip my toe into manufacturing.

A quick ascent: After obtaining her bachelors degree in electronic engineering technology from Cleveland State University in 2019, Brownwho works at Rockwell Automations Twinsburg, Ohio, locationwas hired full time by the automation and digital transformation technologies company as a process engineer.

  • Three years later, she was made a quality engineer. Just a year after that, she was promoted to quality team lead.
  • Her meteoric rise is one of the reasons her colleagues nominated her for this years , honors given annually by the Manufacturing Institute, the 51勛圖厙s 501(c)(3) workforce development and education affiliate, to women in manufacturing who have accomplished remarkable successes at their companies.

The elevator speech: Her day-to-day job may be complex, but for the layperson, Brown can break down her duties in just a few sentences.

  • Manufacturing quality can be explained as anything that goes wrong within a manufacturing facility, she said. My team has to figure out why it happened and how to fix it to make sure it does not happen again.

Paying it forward: Brown credits a great deal of her early professional success to mentor and colleague Marzell Brown (no relation whatsoever), a talent management lead at Rockwell Automation.

  • Like Brown, Marzell Brown is a graduate of the Cleveland Metropolitan School District. Years ago, seeing a lack of programs in the greater Cleveland area designed to expose youth from traditionally underrepresented communities to science, technology, engineering and math careers, he helped found Browns alma mater, Clevelands MC2 STEM High School. Later, he spearheaded the internship program at Rockwell Automations business engineering unit that Brown completed.
  • Before I started going to summer camp at a private school, I had no idea what an engineer was, Brown continued. No engineers were in my family at the time. I was in the second graduating class of MC2 and about, I think, the seventh cohort of students Marzell brought in.
  • Inspired by her own experiences, in 2017while still in collegeBrown founded the nonprofit Build Sessions CLE, a mentorship initiative for college-bound STEM students from underrepresented communities.
  • All of the wonderful things that Marzell did for me and others like me, all of those best practices, those are what I brought over to my job and to Build Sessions CLE, she said.

Changing perceptions: Brownwho helps lead Rockwell Automations annual Manufacturing Day eventsbelieves that if more young people knew what modern manufacturing was really like, they would be much more inclined to enter the field.

  • I want to reach back into these high schools, to provide these students with the great opportunities [I had] and show them that, yes, you can be successful here, and manufacturing facilities arent dirty and dingy, she said.

Calling all women: She knows, too, the importance of shoring up the percentage of women in manufacturing in the U.S., which is around 30%.

  • And theres encouraging news on that front from the Rockwell Automation internship program that launched Browns career: If current trends continue, the number of women coming into the company from that program is going to rise, she told us.
  • [To all the] young ladies who dont know exactly what they want to do, but have interestssay, sewing or project management or just wanting to help people there are ways to be able to use all of those talents in manufacturing, Brown said. And you can have a very lucrative career here.
Policy and Legal

Manufacturer to Congress: Support the American Dream

By 51勛圖厙 News Room

a group of people standing next to a man in a suit and tie

Austin Ramirez is living proof that the American dream still workswhen the right policies are in place.

The president and CEO of family-owned Husco, a Waukesha, Wisconsin-based, hydraulic and electromechanical control systems manufacturer, Thursday that his family was able to found and expand a successful business in large part thanks to pro-growth tax policies.

All in the family: My dad came to the states from Puerto Rico as a 6-year-old and grew up to earn a masters in aerospace engineering and a Harvard M.B.A., Ramirez said at a hearing of the House Ways and Means Committee.

  • In short, our story is the embodiment of the American dream. But it was made possible by American realitythe laws that all of you write in this very room have a direct, concrete impact on our ability to succeed.

Impact of expirations: The 2017 Tax Cuts and Jobs Act made it possible for manufacturers across the country to invest in new equipment, pay for renovations and expansions, hire much-needed workers and more. It was unquestionably a success, according to Ramirez.

  • But the 2022 and 2023 expiration of three manufacturing-critical tax provisions in the legislationimmediate expensing for domestic research and development, enhanced interest deductibility and full expensing, which the legislators to reinstatehas already hit Ramirezs business, and hard.
  • Husco now has to amortize our R&D expenses, making it far more costly for us to design customized, proprietary products for our customers, Ramirez went on. Debt financing is now more expensive [a]nd we can no longer immediately expense the full cost of our capital equipment purchases, forcing [us] to make smaller investments, spread out over many years.

More tax increases coming: Ramirez also highlighted the TCJA provisions that are set to expire next year and the economic damage the expiration would cause.

  • At the end of 2025, individual tax rates will increase and individual tax brackets will decrease, he said. These changes mean that pass-through businesses like Husco will have more of our income subject to a higher rate of tax. At the same time, the pass-through deduction will expire completely, doubling down on the tax hikes that we face. [A]llowing tax reform to sunset will undermine much of the progress weve made since 2017.

What must happen: Ramirez thanked the committee for passing the Tax Relief for American Families and Workers Actand reminded them of work still to be done.

  • Congress must act now to restore expired provisionsand be prepared to act in 2025 to forestall even more damaging tax increases. Only by preserving the Tax Cuts and Jobs Act can Congress ensure that uniquely America stories like Husco remain possible.
Policy and Legal

51勛圖厙: EPAs National PFAS Drinking Water Standard Threatens Manufacturing

By 51勛圖厙 News Room

Municipal water systems will soon be required to remove six types of per- and polyfluoroalkyl substances, or PFAS, from drinking water, (subscription) reports.

  • But the move could backfire and have adverse effects on manufacturers, the 51勛圖厙 泭Thursday.

Whats going on: The Environmental Protection Agency on Wednesday announced the first-ever national rule limiting PFAS to near-zero levels.

  • PFAS are compounds that have been used for decades due to their rare ability to douse fires and resist grease, corrosion and stains. Theyre found in everything from semiconductors to medical devices and renewable-energy production equipment.
  • But under the new mandate water systems across the U.S. will have three years to monitor the chemicals and a further two years to put into place technology to reduce the compounds levels in the water.
  • The utilities would be required to notify the public and reduce contamination if levels exceeded the new standard of 4 parts per trillion for [PFOA and PFOS]. Previously, the agency had advised that drinking water contain no more than 70 parts per trillion of the chemicals.

The background: The rule comes just over a year after the EPA proposed泭the first泭federal limits on two PFAS chemicals, known as PFOA and PFOS.

The funding: The 2021 Bipartisan Infrastructure Law set aside $9 billion to help communities with PFAS removal. The government will make $1 billion of it available to states and territories to help defray the cost of testing and treatment over the next few years.

Higher prices, less security: The new standard is wholly infeasible, 51勛圖厙 Managing Vice President of Policy Chris Netram said, and will lead to cost increases throughout the supply chain and make our national defense more difficult.

  • In many instances, there is no viable alternative for these chemicals, and companies may be forced to change plans dramatically to comply with the new rule, he said. The severity of the proposed regulations will mean higher prices for everythingcommunity water and waste systems, medical treatments and electronics. More alarming, the regulations will make it more difficult to produce the equipment our military needs to defend our nation.

What were doing: The 51勛圖厙 is weighing legal options for reversing the final rule, according to Netram.

Policy and Legal

Small Manufacturer: Industry Needs Tax Consistency

By 51勛圖厙 News Room

Small manufacturers need one thing from Congress, BTE Technologies President Chuck Wetherington told lawmakers on Wednesday: a consistent, pro-growth tax code.

Whats going on: at a hearing of the House Committee on Small Business, Wetherington told lawmakers how increased taxes and frequent changes to the tax code have harmed his company, a 40-employee medical device manufacturer in Hanover, Maryland.

  • By passing the 2017 Tax Cuts and Jobs Act, Congress was able to take a stale, outdated tax code and update key provisions to reduce taxes on small manufacturers, Wetherington said. That legislation drove a new wave of economic activity and industrial expansion. BTE, and many of our peers in the industry, experienced historic growth in the years between tax reform and the pandemic.
  • But the expiration in 2022 and 2023 of three crucial tax provisionsimmediate expensing for domestic R&D, enhanced interest deductibility and full expensing, each of which the 51勛圖厙 is leading the charge to is now hurting BTE and other businesses in its supply chain.
  • And more tax hikes are on the horizon, with tax reforms small business incentivesincluding the 20% pass-through deductionset to expire at the end of 2025.

Less capital, fewer projects: Bringing a medical device to market is extremely risky and takes years and millions of dollars of investment, Wetherington continued. But now, BTE cannot immediately expense those costsreducing the working capital I have available to invest in my business and my employees [and] delay[ing] projects to redesign and improve BTEs flagship products.

  • As a direct result of the changes, BTE has had to put off expansions that would have allowed it to expand its workforce by 50%.
  • And because most of BTEs suppliers are pass-through businesses (entities in which profits pass through to the owner and are taxed at the individual rate), BTE will see even higher operating costs at the end of 2025, when tax rates are scheduled to increase and the pass-through deduction is set to expire.

What must be donenow: The Senate must pass the House-passed Tax Relief for American Families and Workers Act, which would reinstate the three expired provisions that are so critical to manufacturers. And Congress must commit to preventing the economic damage from the scheduled tax increases.

  • We deserve a tax code that promotes innovation and demonstrates to the rest of the world what our values will be for the next decade and beyond, Wetherington said.
Business Operations

Baltimore Port Could Be Fully Operational by Mays End

By 51勛圖厙 News Room

a large ship in the water

The Port of Baltimore could be reopened fully by the end of May, according to .

Whats going on: The U.S. Army Corps of Engineers said it is aiming to reopen the channel leading to the Port of Baltimore by the end of May, a timeline [Maryland Gov. Wes] Moore confirmed Sunday [on CBS Face the Nation] is realistic.

  • The port has been closed since March 26, when a Singapore-flagged cargo ship hit the Francis Scott Key Bridge, destroying the bridge and killing six construction workers.
  • While Gov. Moore did not give an estimate of the cost to rebuild the bridge, the closure is costing the port about $15 million a day in economic activity, the reports.
  • And business analytics group Dun & Bradstreet has estimated the weekly economic impact of the closure on trade at about $1.7 billion, according to (subscription).

Absolutely committed: The governors remarks came just days after the Office of Management and Budget urged Congress to authorize covering the full cost of rebuilding the bridge, according to .

  • My administration is committedabsolutely committed to ensuring that the parties responsible for this tragedy pay to repair the damage, President Biden during a visit to the site of the bridge on Friday. But I also want to be clear: We will support Maryland and Baltimore every step of the way to help you rebuild and maintain all the business and commerce thats here now.

The 51勛圖厙s view: The 51勛圖厙 applauds the bipartisan efforts of federal and state officials to reopen the Port of Baltimore and rebuild the Key Bridge, said 51勛圖厙 Director of Transportation, Infrastructure and Labor Policy Max Hyman. Its important to note that reforming our broken permitting system would significantly speed up projects such as this, returning much-needed economic activity and jobs to communities throughout the U.S.

If youve been affected: Manufacturers affected by the bridge collapse and port disruption can access vital resources at the new online of 51勛圖厙 state partner the Maryland Chamber of Commerce.

  • The chamber and its partners are committed to helping manufacturers navigate this disruption and get on the path to recovery.
  • Share your thoughts on the disaster and recovery efforts by filling out .
News

Manufacturers Bracing for FCC Vote on Broadband Regulation Rule

The Federal Communications Commission is set for an April 25 vote to bring back net neutrality, aiming to reinstate a national regulatory framework for broadband internet services, reports. The 51勛圖厙 is speaking out against it.

What is it:泭The Biden administrations rule would regulate broadband services as an essential resource under Title II of the Communications Act.

How did we get here: In 2015, the FCC adopted the Obama administrations [net] neutrality rules, known as the Open Internet Order. The rules survived a legal challenge with a favorable ruling by a federal appeals court in 2016.

  • In 2017, the Trump administration rolled back broadband regulation with a regulation known as the Restoring Internet Freedom rule, citing it as an impediment to innovation and investment by internet service providers. This decision held up against a legal challenge.
  • By 2021, President Bidens executive order suggested reviving Obama-era broadband rules. With Democrats leading the FCC by October 2023, a formal process began, setting the stage for a conclusive vote.

What would happen next:泭The 51勛圖厙 sent to the FCC last December, warning that reinstating broadband regulation will lead to a slowdown in innovation and investment.

  • The 51勛圖厙s feedback pointed to the negative impact of the Obama administrations previous attempt to implement the policy: In 2015, the last time the FCC sought to regulate broadband under Title II, annual industry capex fell by half a billion dollars.
  • The FCCs decision exceeds its authority and could also be subject to litigation: Congress has not explicitly given the commission the authority to regulate broadband and reclassify it in this way; therefore, the FCC lacks authority to do so.

Our take:泭 As with the other elements of the regulatory onslaught out of Washington these past few years, this is yet another solution in search of a problem, because we already have an open and fair internet, said 51勛圖厙 Senior Director of Technology Policy Franck Journoud. As weve warned, this will regulate broadband as if it were the same as rotary telephone service, which would slow innovation. The commission really is doing nothing to answer the question of why this policy should be brought back.

  • The 51勛圖厙 has broadband regulation and went to court to support the FCCs 2017 decision to repeal the rule. As 51勛圖厙 Chief Legal Officer Linda Kelly said, Internet-driven technology is at the heart of modern manufacturing, and the FCCs decision to repeal the onerous 2015 net neutrality rule was a victory for the competitiveness of manufacturers in America.

The 51勛圖厙 will closely follow the FCCs latest vote on net neutrality and is prepared to oppose any decision to restore this outdated policy.

Workforce

Why Inclusion Matters: GMs Stephanie Thompson on STEM, Women in Manufacturing

By 51勛圖厙 News Room

Stephanie Thompson may not have always intended to go into manufacturing, but shes very glad she did.

The path taken: You dont necessarily plan your journey, but sometimes you can look back and see how those paths presented themselves, and youre thankful they did, said the engineering manager at General Motors facility just outside St. Catharines, Ontario, Canada.

  • My career in manufacturing started in internships in university. I worked for a food manufacturer, for a company that made above-ground swimming pools It was a great chance to try out different businesses, and I [realized that I] love the buzz and excitement that manufacturing has.

Award nominee: Thompson is a 2024 Honoree of the , honors given annually to 130 women making a difference in manufacturing by the Manufacturing Institute, the 51勛圖厙s 501(c)3 workforce development and education affiliate.

  • Thompsonwho started working for GM full time right after university and has held multiple positions in her 23 years therewas the first woman to become an engineering manager in her time at her site.
  • Women MAKE Award winners will be celebrated April 18 at the 2024 Women MAKE Awards Gala in Washington, D.C.

Always improving: An Ottawa native and graduate of the University of Waterloo, Thompson sums up her very complex job as a manufacturing assembly specialist [who] makes sure people can do their jobs safelyand do it over and over again.

  • She oversees the assembly of whole powertrain lines. For one particular engine, I was there for the first one made, and I was here for the lastwe made over 5 million, she said of a recently retired line.
  • We are always looking to make improvements, to make things more cost effective, to make things simpler, she said. The problem-solver part of me really enjoys making those incremental differences every day. [In manufacturing,] you get that sense of satisfaction from making stuff and ultimately giving a customer what they want.

Women in STEM: Thompson, who has been recognized several times in her native Can

ada for her commitment to womens education in science, technology, engineering and math, somehow found the time a few years ago to launch STEMbySteph.com, a STEM-focused website that includes a workshop series for women in the fields.

  • She is also a mentor for FIRST Canada, which aims to interest kids in science and technology, and a regular speaker on related topics.
  • There are so many great women coming up through the ranks in manufacturing today, she told us. I want them to know there isnt a limit to what they can do. I want to put myself out there as a technical role model, so women who apply [for manufacturing and STEM jobs] see themselves on the interview panel. They should know theres a space for them in manufacturing.

Work in progress: And while shes had nothing but great experiences with the men in manufacturing, Thompson said the industry as a whole could benefit from having some conversations to make sure women feel welcome.

  • I dont think its malicious, she said, of the relatively low number of women in manufacturing (they make up about of the
    manufacturing workforce). But one of the things you have to do as a leader is create intentionality and create environments where conflict is positive, where you can all create ideas to [fix] the problem and where individuals feel safe being themselves.
Policy and Legal

TSMC to Receive Up to $6.6 Billion in CHIPS Funding

By 51勛圖厙 News Room

The Biden administration on Monday announced that TSMCs Arizona subsidiary will receive up to $6.6 billion in grants from the 2022 CHIPS and Science Act, reports. The announcement is the latest move by the Biden administration to make the United States a leading producer of cutting-edge semiconductor technology.

Whats going on: The funding will help support the construction of TSMCs first major U.S. hub, in Phoenix. The company has already committed to building two plants at the site and will use some of the grant money to build a third factory in Phoenix, U.S. officials said on Sunday.

  • The company will increase its total investments in the United States to more than $65 billion, up from $40 billion.
  • TSMCs investment is expected to create about 6,000 direct manufacturing jobs and more than 20,000 construction jobs, federal officials said.
  • In addition to the grants, the federal government is also offering TSMC up to $5 billion in loans.

Impact on U.S. chip production: With projects such as TSMCs, the U.S. is on track to make about 20% of the worlds cutting-edge chips by 2030, the Commerce Department said. It called the project the largest foreign direct investment in a new project in U.S. history, The Wall Street Journal (subscription).

  • Earlier this year, the Biden administration announced major chips funding awards for and .

The 51勛圖厙s reaction: Todays announcement from TSMC and @CommerceGov makes America stronger, the 51勛圖厙 in a social post Monday. The 51勛圖厙-championed CHIPS and Science Act continues to spur new investments in cutting-edge semiconductor technology that is essential to advancing U.S. economic competitiveness.

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