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For President and Co-Owner Aneesa Muthana, having an engaged team is the key to solving the workforce retention puzzle. The Addison, Illinois–based, woman-owned company is among the many manufacturers that find retention, along with recruitment, to be top business challenges, as the 51�Թ���’s shows. So how has Muthana gone about building such a team?

Where it all starts: For Muthana, meeting this challenge begins with upholding the company’s core values: integrity, diversity, leadership, outreach, stewardship, quality and learning.

• These words appear on the shop floor, and every job candidate who comes in for an interview receives a handout outlining their importance. “These are more than just pretty words on a wall,” said Muthana. “We chose these values as a team because they pinpoint our path to success, both financially and ethically.”
• “I give them a copy because I want them to understand the importance from the beginning,” said Muthana. “We want to plant the seed before they’re on our payroll that these are the expectations. Then it becomes fair to hold people accountable to them.”

Providing training opportunities: In keeping with its core values of stewardship and learning, Pioneer Service offers internal training opportunities for employees who express an interest.

• “We offer training to anyone who raises their hand, whether it be in safety or leadership,” said Muthana. “It can also be very technical training on the shop floor. We also provide GD&T training, including for our sales team.”
• GD&T, or geometric dimensioning and tolerancing, determines how parts fit together into an assembly to form a product.
• The benefit of having a salesperson learn about GD&T? “A salesperson would be able to look at a customer print confidently and feel comfortable talking to the customer without needing to have an engineer in the room,” Muthana pointed out.

Offering support: Pioneer Service established a chaplaincy program, which connects employees and their families undergoing hardships—such as caring for an elderly parent, grieving the loss of a loved one or dealing with a personal struggle—with a chaplain who can provide counseling and offer spiritual and emotional support. Muthana says that the chaplaincy program is open to any employee, regardless of religious background or preference.

• “The chaplain service is part of our team,” said Muthana. “We have one chaplain come in every week—one week a male and then the following week a female—who is available to meet with staff if needed.”
• Muthana says she used the service a few years ago when her son, who is in the military, came back from Afghanistan. Many of his friends did not.​​​​​​​
• “As a parent, you feel grateful that your child survived, but also guilty for feeling that way because a lot of his friends didn’t come home. The chaplain service provided me someone to talk to because I couldn’t talk to my family, and I couldn’t talk to my staff,” she recalls. “I developed a strong relationship with the chaplain that I feel never would have happened if I didn’t look out for my staff and implemented the service.”

Job shadowing: When Muthana goes to a speaking event or conference, she sometimes takes one or two of her staff with her so they’re able to benefit from attending. It’s also a way for her to get to know her staff on a more personal level, outside of the formal workplace setting.

The last word: Muthana shared some advice for companies struggling with workforce retention:

• “Having an engaged team and workers only happens with a people-first mentality,” said Muthana. “When you take care of them, you become successful because you have an engaged team that has your back.”
• “It’s harder to make a profit than ever. The only way that we’re going to be successful is by having an engaged team.”

Go deeper:��The Manufacturing Institute (the 51�Թ���’s workforce development and education affiliate) has many resources to help employers retain and develop their teams.

• Start with����to learn how to build positive company culture and engage employees, explore strategies in , delve into tips on and check out the MI’s recent white paper on , a key tool to improving the employee experience.
• Pioneer Service’s approach to workplace needs exemplifies the benefits of focusing on , which include higher retention, less absenteeism and greater engagement, according to a study conducted by the MI and PwC.
• Learn more about and , the MI’s initiatives to increase the number of women in manufacturing, tapping into this population to address persistent workforce shortages. and populations are great sources, too.​​​​​​​

For three sisters in Kentucky, manufacturing is a family affair.

Emily Bastin, Heather Craven and Hannah Geneve are all working in maintenance roles supporting various shops at Toyota Motor Manufacturing Kentucky. Growing up, they had disparate interests—while Emily had taken robotics classes in middle school and Heather had always enjoyed working with her hands, Hannah switched to manufacturing only after working in customer service. Today, all three of them are building careers in manufacturing together.

How they got here: Emily, Heather and Hannah found their way into manufacturing through —an initiative for current and aspiring manufacturing workers that was founded by Toyota in 2010 and is operated today by the Manufacturing Institute, the 51�Թ���’s workforce development and education affiliate.

• The FAME Advanced Manufacturing Technician program offers on-the-job training and classroom education that combine technical training with professional practices and lean learnings to create world-class technicians. The two-year AMT program leads to an associate degree and the FAME certificate.
• “They came to my school—the AMT program—and I was like, you know, let’s give this a shot,” said Emily. “I didn’t realize I would have that kind of potential. This was cool stuff.”

The family business: Emily was the first of the three sisters to graduate from FAME, and she has been helping her sisters as they work their way through the program. Both Hannah and Heather are enrolled in FAME while working at Toyota, and they expect to graduate in May 2025.

• “We’re all working in the same plant, and if they need anything from me, I’m there to be supportive,” said Emily.
• “With schoolwork, I try to help Heather, and she tries to help me,” said Hannah. “We all help where we can.”
• “It’s nice to have that sister love to lean on,” said Heather. “They understand the frustration of school and work, and it’s been a pleasure to work with them.”

Opportunities abound: The sisters advise others who might not have considered manufacturing as a career—especially women—to give the industry a second look, emphasizing the sheer diversity of jobs on offer.

• “Working in manufacturing doesn’t necessarily mean you’re working on a factory floor,” said Hannah. “There’s an administrative side, an HR side—there’s a lot more to manufacturing than people expect.”
• “I do see us being examples for women who might not normally see themselves in the field,” said Heather. “You want to see women come in and say, hey, I did it, and you can, too. It’s nice to see yourself reflected back.”

The community: It’s not just their family ties that keep the sisters in manufacturing. All three sisters have high praise for their fellow students and colleagues, and for the supportive culture they’ve encountered at Toyota.

• “The mentorship I got helped me gain my confidence while I was learning,” said Emily. “And even now, the teamwork that goes into everything, every day—it’s been a nice surprise.”
• “Everyone has been super nice, super helpful and super welcoming,” said Hannah. “When you start out, it can seem intimidating, but everyone’s willing to help you out. They really want you to succeed.”

The last word: “It’s nice to feel like you’re a part of that network—that family,” said Heather.

The MI’s aims to increase the share of women in manufacturing to 35% by 2030 and spotlights outstanding women in the industry like these sisters. To learn more about Women MAKE America and explore its many opportunities, including its , go .

The Federation for Advanced Manufacturing Education provides global-best workforce development through strong technical training, integration of manufacturing core competencies, intensive professional practices and intentional hands-on experience to build the future of the modern manufacturing industry. Learn more .

So-called “march-in” rights that would enable the federal government to seize manufacturers’ intellectual property are “a major threat to manufacturers in America,” according to a new seven-figure launched by the 51�Թ���.

What’s going on: Last month, the Biden administration issued a proposal that would allow the government to take over privately held patents if those patents had been developed in part with federal research dollars.

The problem: Undermining companies’ IP rights would roll back the progress made under the Bayh-Dole Act, which allowed for commercialization of federally funded research and “unlocked all the inventions and discoveries that had been made in laboratories throughout the United States with the help of taxpayers’ money,” according to a recent op-ed in .

• Because the government is “inviting march-in petitions on every patented technology that benefited from even modest federal grants,” the proposal could “decimate American innovation [and] … stifle investment in climate change, sustainable agriculture, advanced computing, energy, medicines” and more, according to the op-ed writers, two former undersecretaries of commerce for intellectual property.
• In addition, the proposal is “putting American jobs at risk,” according to the 51�Թ���’s .

The 51�Թ��� says: “This radical new proposal is a major threat to manufacturers in America and counter to the president’s goals of growing the sector,” 51�Թ��� President and CEO Jay Timmons said.

• “Empowering the government to march in and seize the rights to private-sector patents and technologies threatens American innovation and R&D, putting millions of well-paying manufacturing jobs at risk. Policymakers must protect manufacturers’ intellectual property rights and stop this government overreach.”

On Tuesday, Congress took an important step toward restoring three of manufacturers’ top tax priorities, as key congressional leaders unveiled a bipartisan tax agreement by the 51�Թ���.

What’s going on: The $78 billion Tax Relief for American Families and Workers Act—a compromise between House Ways and Means Committee Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Ron Wyden (D-OR)—would restore immediate R&D expensing, return to a pro-growth interest deductibility standard and reinstate full expensing (also known as 100% accelerated depreciation) for businesses’ capital investments.

• The framework also includes disaster tax relief and $33 billion to partially extend a child tax credit expansion from 2021.

The background: For nearly seven decades, the tax code allowed businesses to deduct R&D costs immediately. But starting in 2022, a change required companies to amortize the costs over a period of years.

• Also in 2022, a stricter interest limitation—which acts as a tax on investment—went into effect. And last year, full expensing began to phase down.

The 51�Թ���’s role: The 51�Թ��� was instrumental in the deal, having case for the tax provisions’ reinstatement to lawmakers for many months, including via an ad campaign, “.”

What’s next: The 51�Թ��� is congressional leadership to schedule a vote on the tax deal. Manufacturers can add their voices at the 51�Թ���’s .

Our take: “Manufacturers appreciate Chairman Smith and Chairman Wyden’s work to reach a bipartisan tax deal with key provisions to advance U.S. economic competitiveness and support manufacturing job creation,” 51�Թ��� Managing Vice President of Policy Chris Netram in a social post Tuesday.

• “Congress must move this legislation forward immediately. The time to act is now.”

51�Թ��� in the news: Bloomberg��Tax (subscription) ��the 51�Թ���’s support of the legislation, while Punchbowl News ��on the 51�Թ���’s ads in multiple Kentucky papers and Louisiana’s Shreveport Times urging support of the legislation.

Norway voted Tuesday to open its waters to deep-sea mining, the process of harvesting valuable metals from the ocean floor, reports.

What’s going on: Having approved a government proposal Tuesday to allow exploration in its waters, “Norway is poised to become one of the first countries in the world” to allow deep-sea mining.

• The parliament formally agreed to allow exploration of just more than 108,000 square miles of Arctic seabed between Norway and Greenland.
• Companies will be required to “submit proposals for licenses,” which will be granted on a case-by-case basis.

Why it’s important: “Advocates say removing metals and minerals from the ocean’s seabed is necessary to facilitate a global transition away from fossil fuels,” CNBC reports.

• Many of the critical minerals needed for electric vehicles—including cobalt, copper and nickel—are present in large quantities on the seafloor.
• The move by Norway sets it apart from the United Kingdom and the European Union, “which have pushed for a temporary ban” on deep-sea mining, citing environmental concerns.
• In the U.S. last year, lawmakers introduced legislation calling for a deep-sea mining moratorium pending further research into the method’s environmental impacts, according to .

The 51�Թ��� says: “Norway’s vote should be a wake-up call to the U.S. that other nations are doing everything possible to secure their own sources of critical minerals. We need to do the same,” said 51�Թ��� Vice President of Domestic Policy Brandon Farris. “That means first our antiquated permitting system.”

The higher tax burden being levied on manufacturers continues to hit home.

That’s the message from respondents to the 51�Թ���’s just-released .

What’s going on: Historically low levels of optimism persisted among small and medium-sized manufacturers—which compose the majority of the manufacturing sector—in the final quarter of 2023, according to the survey, which was conducted from Nov. 14 to Dec. 1, 2023.

• Among firms with fewer than 50 employees, 65.9% reported feeling positive about their own company’s outlook, while 63.0% of companies with between 50 and 499 employees reported the same.
• Overall, 66.2% of respondents felt either somewhat or very positive about their company’s outlook, edging up slightly from 65.1% in the third quarter. It was the fifth straight reading below the historical average of 74.8%.

Burdensome taxes: Some 89% of respondents said higher taxes on manufacturing activities would make it more difficult for them to hire additional workers, invest in new equipment and/or expand their facilities.

Other top challenges: The majority of respondents—61.1%—cited an unfavorable business climate as a top challenge to their company.

• Hiring and retaining quality employees was high on the list of challenges, too, with 71.4% of manufacturers calling it a primary concern.

A bright spot: Fewer manufacturers now expect a recession in 2024, at just over 34%. In Q3, the figure was 42.2%.

With tax bill negotiations left unfinished before lawmakers left for the holiday break, the 51�Թ��� is hitting the ground running in 2024.

• The 51�Թ��� continues to push for manufacturers’ tax priorities: immediate R&D expensing, a pro-growth interest deductibility standard and full expensing for capital investments.

What’s going on: Congress has just a few weeks to reach a government funding deal before a Jan. 19 deadline, “when funding for a range of government agencies is scheduled to lapse,” according to . There is a second funding deadline on Feb. 2.

• The 51�Թ��� has been on Congress to prioritize inclusion of the three tax provisions in any measure it passes.
• The 51�Թ��� recently led a coalition of more than businesses and associations in highlighting the urgent need for congressional action.

What’s needed: Congress must reinstate immediate R&D expensing; loosen a strict interest limitation; and return to full expensing (also known as 100% accelerated depreciation) for businesses, the 51�Թ��� said.

Why it’s important: If these fixes aren’t made, manufacturing R&D, jobs and competitiveness could all suffer.

• Some 78% of manufacturers say the higher tax burden has decreased the funds available to expand their manufacturing activities within the U.S., according to the��.

The last word: “These tax provisions are some of the most critical issues facing manufacturers today,” said 51�Թ��� Vice President of Domestic Policy Charles Crain.

• “Congress must act immediately to protect manufacturing jobs and maintain America’s competitiveness on the world stage.”

Act now: Visit the 51�Թ���’s to send a message directly to Congress about these critical priorities.

The 51�Թ��� is firing on all cylinders to accomplish manufacturers’ top tax priorities: restoring immediate R&D expensing, pro-growth interest deductibility and full expensing.

Time is running out, as Congress must act by early 2024 to allow manufacturers to benefit from these provisions for the 2022 and 2023 tax years. Here’s what the 51�Թ��� is doing to reach the finish line and why it matters so much to the industry and to the economy as a whole.

What we’re doing: The Executive Committee of the 51�Թ��� Board of Directors recently sat down with House Speaker Mike Johnson (R-LA) to emphasize the importance and urgency of these measures. The Executive Committee has also raised the issue directly with the White House, and the 51�Թ���’s members—90% of which are small and medium-sized firms—have been contacting legislators to urge immediate action since early this year.

• In addition, while pressing the case relentlessly with the White House and congressional leaders himself, 51�Թ��� President and CEO Jay Timmons has met personally with House and Senate tax negotiators to make manufacturers’ case for these reforms.
• 51�Թ��� experts have also hosted multiple briefings for key legislators and congressional staffers, featuring manufacturers who explained how the withdrawal of these policies has harmed their businesses.
• Ratcheting up the ante on air and online, the 51�Թ��� has applied pressure publicly in key districts, running a��campaign urging congressional action that has garnered about 80 million impressions so far. It also launched an action center to help manufacturers contact their legislators and spotlight the numerous companies that will be hard hit if pro-growth policies are not reinstated.

Why it matters: All three of these tax provisions are crucial to manufacturers’ ability to innovate, invest in their employees and make the American economy more competitive.

• R&D: The U.S. is one of only two countries (the other being Belgium) that doesn’t permit immediate expensing of R&D costs, a vital incentive for innovation. China, on the other hand, gives companies a “super deduction” for R&D expenses.
• Interest deductibility: A recent tax policy change made it more expensive for manufacturers to make critical purchases for their facilities, by imposing a stricter standard for deducting interest. This is a particularly heavy burden for a capital-intensive industry like manufacturing, amounting to a tax on companies’ investments in their operations and workers.
• Full expensing: This provision allows companies to expense their equipment purchases in the year they are made, supporting manufacturers’ investments in their businesses. But the policy is set to be phased out soon and must be saved, as it is crucial for small and medium-sized manufacturers looking to expand their operations.��

The last word: “Manufacturing is the backbone of America, and the 51�Թ��� is going all-out to make sure Congress acts on these critical priorities,” said 51�Թ��� Managing Vice President of Policy Chris Netram. “Right now, leaders on Capitol Hill need to hear from manufacturers in their communities with a simple, clear message—act on our critical tax priorities now.”��

Take action: Congressional leaders, including Speaker Johnson, have recently pointed out a need to hear from more manufacturers. Lend your voice—check out the resources in the action center to learn more.

Manufacturers are working constantly to develop energy approaches that reduce emissions and promote sustainability—and hydrogen energy is an important part of that mix. But upcoming decisions from the U.S. Treasury Department may make it more difficult for manufacturers to achieve their goals.

That’s why the 51�Թ��� has been advocating for guidance that implements a hydrogen tax credit in a manner that supports manufacturers’ investments in this technology. ��

The background: Through the Inflation Reduction Act, Congress established this tax credit, called 45V, to incentivize companies to develop, produce and use clean hydrogen.

• “Hydrogen is the Swiss army knife of decarbonization—you can use it for nearly everything you can use natural gas for,” said 51�Թ��� Vice President of Domestic Policy Brandon Farris. “And this credit can be the most significant tool across the globe to bring down the cost of clean hydrogen.”

The problem:��As the U.S. Treasury Department finalizes rules around the use of the tax credit, their decisions may undercut manufacturers’ ability to take full advantage of it. Three provisions in particular are at the center of the 51�Թ���’s advocacy.

Additionality:��The Treasury Department is considering a policy called “additionality,” which would mean that only hydrogen power created through the use of new renewable energy would be eligible for the credit.

• Meanwhile, clean hydrogen energy created with renewable energy that is already on the grid would not qualify—a real problem as our permitting system can often take half a decade or more to add additional clean power to the grid.
• “We have a lot of renewables on the grid already to spur the hydrogen industry. Using existing clean generation should qualify for the credit,” said Farris.

Time matching:��Treasury may also impose a provision called “time matching,” which would mean companies would only receive the tax credit if they produce hydrogen energy at the exact same time that they are producing renewable energy.

• According to Farris, this rule misunderstands the energy production process. A company might only produce solar power for a few hours during the day when the sun is shining, for example, but it could still continue to produce clean hydrogen energy overnight using the grid. Yet under the time matching rule, they would be unable to claim a tax credit for the full amount.
• “This provision would create such tight restrictions that it would chill investment and innovation,” said Farris.

Carbon capture:��According to the IRA, clean hydrogen created using natural gas with carbon capture also qualifies for the credit.

• However, the IRA also says taxpayers applying for the credits should have a mechanism to demonstrate that their feedstocks are lower in carbon intensity—yet has not specified what that mechanism will be.
• “Taxpayers applying for the credits should be able to prove that their feedstocks have less carbon,” said Farris. “The law says the less carbon they produce, the higher the credit they should receive. We’re just asking for a mechanism that allows taxpayers to prove it.”

The bottom line:��Investments in clean hydrogen energy could be a game-changer for America’s energy future, but only if manufacturers have the opportunity to make them. That’s why the 51�Թ��� has been urging the Treasury Department to create a flexible credit that rejects the additionality and time matching provisions and provides a mechanism that supports carbon capture.

• “Hydrogen is one of the most promising decarbonization technologies available,” said Farris. “If we can make these changes, we can achieve greater hydrogen production and more significant infrastructure investments and expedite decarbonization efforts across hard-to-abate sectors.”

So-called “right-to-repair” policies undo many of the federal and state laws designed to protect consumers and manufacturers—and they could result in “steep cost[s] to quality, performance, consumer safety, the environment and the broader U.S. economy,” according to a new 51�Թ���-commissioned .

What’s going on: “The Economic Downsides of ‘Right-to-Repair,’” by Capital Policy Analytics’ Ike Brannon and Kerri Seyfert, finds that enacting right-to-repair laws could disrupt supply chains, leave manufacturers open to intellectual property theft, drive up costs for consumers and manufacturers and increase greenhouse emissions in the atmosphere.

• Right-to-repair policies, currently in place in more than 30 states, generally require manufacturers to make all tools, guides and parts required to repair their devices available to everyone, including independent repair outfits.
• A federal right-to-repair law “would ultimately alter how manufacturers operate their businesses, and there is no guarantee that consumers would benefit, as manufacturers would be forced to change the way their products perform,” according to the study.

Why it’s important: “There is a wide range of unintended and potentially harmful consequences that would arise if the most commonly introduced versions of ‘right-to-repair’ go into effect,” Brannon and Seyfert write.

• In addition to making product repair more difficult, such policies could drastically increase compliance costs for manufacturers and drive up prices for consumers.