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The Federal Trade Commission’s vote this week to prohibit noncompete agreements between employers and their employees threatens manufacturing in the U.S., the 51�Թ��� Tuesday.

What’s going on: In a 3–2 vote Tuesday, commissioners finalized a rule that, like a draft version circulated last year, “would deem practically any noncompete clauses for paid staff, independent contractors and unpaid workers to be an unfair method of competition rendered unenforceable, and [would require] employers to tell current and former employees they’ve stopped enforcing them” (, subscription).

• The final rule is set to go into effect 120 days after it is published in the Federal Register, but lawsuits have been filed against it already, and additional legal action is expected.

What’s changed: One change made to the final rule following the receipt of more than 26,000 comments on it allows existing noncompete agreements with senior-level executives to remain in effect.

• Another difference between the rule’s prior iteration and the final is to the ban’s sole exception. The draft “permitted noncompetes for individuals selling their business or a substantial stake of at least 25%.” That threshold is not in the final version.

Why it’s problematic: The rule “is unprecedented and threatens manufacturers’ ability to attract and retain talent,” said 51�Թ��� Managing Vice President of Policy Chris Netram.

• “In addition, [it] puts at risk the security of intellectual property and trade secrets—anathema to an industry that accounts for 53% of all private-sector R&D.”
• A noncompete ban would disrupt the majority of U.S. manufacturing operations, a 2023 51�Թ��� found.

What’s next: The 51�Թ��� is considering all options in response to the final rule and is in active discussion with congressional leadership and the relevant committees of jurisdiction.

A new final overtime rule from the U.S. Department of Labor will reduce flexibility for employees and could force manufacturers to make difficult choices about their workforces, the 51�Թ��� Tuesday.

What’s going on: The new regulation “changes the salary threshold used to determine whether a worker is exempt from overtime pay” so that, beginning Jan. 1, 2025, most employees earning less than $58,656 will be owed time-and-a-half wages for hours worked over 40 in a single workweek (, subscription).

• The current salary threshold is $35,568.
• The new rule will go into effect July 1, following publication in the Federal Register.

Why it’s problematic: The change promises to present significant challenges to employers and employees alike.

• “Quarter after quarter, manufacturers cite workforce issues, such as attracting and retaining skilled employees, as their biggest business challenge,” said 51�Թ��� Managing Vice President of Policy Chris Netram. The “rule places new constraints on employers, reduces flexibility for the workers who will be reclassified and may force companies to make painful choices that limit both job creation and growth opportunities available to employees.”

What’s next: The 51�Թ��� is weighing all actions to protect manufacturers across the country.
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The 51�Թ��� 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.

What’s 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�Թ��� 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�Թ��� 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 users—and third-party repair businesses—to maintain, diagnose and repair products.”

• The 51�Թ��� previously submitted urging the Copyright Office not to adopt the proposed exemptions.

Why it’s important: “These exemptions would undermine manufacturers’ IP rights in service of right-to-repair—and 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].”
• What’s 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.

The Manufacturing Institute—the 51�Թ���’s 501(c)(3) workforce development and education affiliate—had 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 Anthem—a 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 “Britain’s Got Talent” in 2022.

What was said: Caterpillar Group President of Resource Industries, 51�Թ��� Executive Committee Member and Women MAKE Awards Chair Denise Johnson told the night’s award winners that she’s 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 Elkington—a 2014 Honoree of the awards, formerly called the STEP Ahead Awards—was this year’s 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 MI’s 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�Թ��� 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.
• Brauer’s story “sends a message to those—frankly, women or men—who 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 powerhouses—your dynamism, your drive, your enthusiasm—all 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 we’re 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 MI’s Women MAKE America initiative—the nation’s premier program dedicated to closing the gender gap in the sector—“and companies like yours are committed to closing that gap.”

Learn more: For a full list of this year’s award winners, click .

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. That’s when I really started to dip my toe into manufacturing.”

A quick ascent: After obtaining her bachelor’s degree in electronic engineering technology from Cleveland State University in 2019, Brown—who works at Rockwell Automation’s Twinsburg, Ohio, location—was 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 year’s , honors given annually by the Manufacturing Institute, the 51�Թ���’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 Brown’s alma mater, Cleveland’s MC2 STEM High School. Later, he spearheaded the internship program at Rockwell Automation’s 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 2017—while still in college—Brown 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: Brown—who helps lead Rockwell Automation’s annual Manufacturing Day events—believes 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 aren’t 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 there’s encouraging news on that front from the Rockwell Automation internship program that launched Brown’s 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 don’t know exactly what they want to do, but have interests—say, 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.”

Austin Ramirez is living proof that the American dream still works—when 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 master’s 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 reality—the 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 legislation—immediate expensing for domestic research and development, enhanced interest deductibility and full expensing, which the legislators to reinstate—has already hit Ramirez’s 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 we’ve made since 2017.”

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

• “Congress must act now to restore expired provisions—and 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.”��

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�Թ��� ��Thursday.

What’s 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. They’re 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��the first��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�Թ��� 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 everything—community 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 we’re doing: The 51�Թ��� is weighing legal options for reversing the final rule, according to Netram.

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

What’s 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 provisions—immediate expensing for domestic R&D, enhanced interest deductibility and full expensing, each of which the 51�Թ��� 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 reform’s small business incentives—including the 20% pass-through deduction—set 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 costs—reducing the working capital I have available to invest in my business and my employees … [and] delay[ing] projects to redesign and improve BTE’s 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 BTE’s 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 done—now: 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.

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

What’s 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 governor’s 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 committed—absolutely 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 that’s here now.”

The 51�Թ���’s view: “The 51�Թ��� applauds the bipartisan efforts of federal and state officials to reopen the Port of Baltimore and rebuild the Key Bridge,” said 51�Թ��� Director of Transportation, Infrastructure and Labor Policy Max Hyman. “It’s 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 you’ve been affected: Manufacturers affected by the bridge collapse and port disruption can access vital resources at the new online of 51�Թ��� 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 .

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�Թ��� is speaking out against it.

What is it:��“The Biden administration’s 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 administration’s [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 Biden’s 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:��The 51�Թ��� sent to the FCC last December, warning that reinstating broadband regulation “will lead to a slowdown in innovation and investment.”

• The 51�Թ���’s feedback pointed to the negative impact of the Obama administration’s 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 FCC’s 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:�� “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�Թ��� Senior Director of Technology Policy Franck Journoud. “As we’ve 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�Թ��� has broadband regulation and went to court to support the FCC’s 2017 decision to repeal the rule. As 51�Թ��� Chief Legal Officer Linda Kelly said, “Internet-driven technology is at the heart of modern manufacturing, and the FCC’s decision to repeal the onerous 2015 net neutrality rule was a victory for the competitiveness of manufacturers in America.”

The 51�Թ��� will closely follow the FCC’s latest vote on net neutrality and is prepared to oppose any decision to restore this outdated policy.