51�Թ���

The U.S. Treasury is considering possible modifications to heavily criticized changes it made to foreign tax credit rules last year, (subscription) reports. While it does so, businesses can rely temporarily on the old rules.

The background: The U.S. tax code has long provided a foreign tax credit, which is intended to prevent double taxation for U.S. businesses that have foreign income subject to both U.S. and foreign income tax.

• The new rules were “finalized last year in response to the rise of digital service taxes in other countries. Businesses say the rules have gone too far.”

What’s going on: When the changes were made final, “the Treasury Department and the IRS received questions regarding the application of the … final regulations and requests to modify those regulations,” reads a from the IRS.

• While Treasury revisits the changes, businesses can use the old regulations for taxable years beginning on or after Dec. 28, 2021, and ending on or before Dec. 31, 2023.
• “[A]dditional temporary relief” may also be provided, according to the notice.

Why it’s important: In 2021, when the agency was considering the changes to the foreign tax credit regime, the 51�Թ��� in, warning that “proposals to limit the foreign tax credit should take into consideration the potential impact on the ability of manufacturers to effectively compete in a global market.”

• When Treasury ultimately released the final regulations, the 51�Թ��� and a coalition of business groups on it to withdraw and repropose the regulations, saying the rules would limit significantly the ability of manufacturers to claim the foreign tax credit.

Our take: “The 51�Թ��� welcomes the decision by Treasury and the IRS to revisit the harmful changes made to the foreign tax credit rules, which tilted the playing field against globally engaged manufacturers,” said 51�Թ��� Senior Director of Tax Policy David Eiselsberg.

• “Throughout the process, the 51�Թ��� made it clear that any changes should not hurt the ability of manufacturers to effectively compete in today’s global economy.”

For President and Owner Courtney Silver, retention all starts with culture. “I’m really happy to be here” is a phrase she hears often on her shop floor—and it tells her that the work culture at her company is in good shape.

• “A culture of empowerment that’s built on trust really fuels our team I think,” said Silver, who is the chair of the 51�Թ���’s Small and Medium Manufacturers Group. “They find so much dignity and purpose in fulfilling our mission here at Ketchie.”

Maintaining a high-performing, motivated and engaged workforce is a top priority for the third-generation precision machine shop in Concord, North Carolina, and Silver has implemented a number of strategies to keep it that way.

Team recognition: Every Wednesday, during Ketchie’s shift meeting, employees have the opportunity to recognize their team members for any achievement, big or small.

• “Recognition can be about anything,” says Silver. “It can be ‘Fred over there was able to cut five minutes of cycle time off this particular part because he changed the process’ or ‘Mary saved us money by switching out some tooling.’ We then post the feedback in the break room and email it out to the entire organization.”

• “There are so many things that can go wrong in manufacturing just trying to get a part out the door, and this is an opportunity to think about all the amazing things we’re doing,” she explained.

Silver also posts worker productivity charts every week. If workers meet their productivity goals and their indirect time goals, they get performance points, which are redeemable for gift cards.

• “I think people want to know if they’re on a winning team,” Silver said. “If you’re winning, it feels good. We’re all on the bus going in the same direction.”

Motivator Award: Each year, employees can also nominate a peer for the “Motivator Award,” which goes to the employee who best exemplifies Ketchie’s core values: to do the right thing, be agile and embrace continuous improvement.

• To honor the winner, Silver puts together a tribute video of team members sharing their thoughts about the employee and hosts a company brunch in celebration (to which the employee’s family is invited).

• “The winner also receives their own special parking spot, an extra day of vacation and a $1,000 gift certificate to the Marriott to take vacation with their family,” says Silver.

• “The team member that won the award last year had tears in his eyes, so I know that it’s been really impactful,” she continued.

Community service: Ketchie’s employees are passionate about giving back to the community. Through service projects, Ketchie supports the Boys & Girls Clubs of America as well as Cooperative Christian Ministry, which offers programs that relieve hunger and food insecurity and address homelessness and housing costs.

Opportunity Knocks: Silver isn’t only working to retain and support current employees, but also to train and mold the young people who will be tomorrow’s machinists.

• This year, Silver started an internship program for high school students named Opportunity Knocks. It allows students to shadow experienced machinists in factory environments while earning school credit.

• The interns go through a curriculum created by Edgerton Gear, Inc., called , a 16-week course that helps students explore the role of character in a professional trades environment. Silver said the course, which includes leadership and manufacturing-focused exercises, is taught at Ketchie four days a week in two-hour sessions. Three days of the week are job shadowing machinists on the shop floor, and one day is in a classroom setting at the shop discussing character traits and soft skills. The conversations lean on discovering what’s important in life and what might make them happy.

• “They absolutely love these high schoolers,” said Silver about the two mentors at Ketchie, who each have more than 30 years’ experience. “It gives them an opportunity to share their entire work career: what they’re doing, experiences learned along the way. It’s been neat to see.”

Investing in technology: Silver knows her team wants to work for a company that’s growing and investing in technology. She recently purchased a machine-tending collaborative robot, which takes over machinists’ “least favorite” part of the job—changing parts while the machines run.

• “I interviewed somebody recently who said to me in the interview, ‘It’s really good to see that you want to grow and that you’re making these big investments,’” said Silver. “You’re buying new technology that excites them. They want to be part of that mission and growth.”

The last word: Silver shared some advice for companies that might be struggling with workforce retention.

• “Use employee surveys, focus groups or roundtable discussions to see what you need to do or should do. Everyone wants to be heard. It’s important to listen.”

The 51�Թ���’s workforce development and education affiliate, the Manufacturing Institute, has many initiatives to help employers retain and develop their teams. For a deeper dive, check out by the MI on improving retention and employee engagement. The MI will also explore retention challenges and solutions at its Workforce Summit in Atlanta on Oct. 16–18. Click for more information.

For Michael Canty, president and CEO of Alloy Precision Technologies, Inc., of Mentor, Ohio, the Environmental Protection Agency’s proposed air quality regulations are likely to backfire. They would put a significant burden on the natural gas industry, which has played a large part in America’s efforts to reduce pollution to date.

• “Natural gas is a fossil fuel, but it’s one of the cleanest fossil fuels,” said Canty. “It’s one of the reasons why this country has met clean air standards over the years.”

This is just one of the reasons why Canty, whose company produces industrial bellows, is concerned that policymakers haven’t fully considered the rules’ consequences.

Unintended consequences: Part of the problem with the EPA’s proposed regulations, according to Canty, is that they are likely to promote production in less regulated countries around the world and contribute to more emissions overall.

• “With some of these costly regulations, we’re driving our energy prices to a much higher level and driving production of business to places like China that are creating more emission,” said Canty. “So we’re creating worse air quality control around the world while losing jobs and stifling growth in our country.”

A push for innovation: Canty wants policies that spur innovation and tech development to achieve cleaner air, rather than imposing restrictive regulations.

• “The focus should be on encouraging new technology to drive efficiencies and reduce air pollutants,” said Canty. “If the cost of doing business goes up, you have less cash to put in that innovation. As the cost of energy goes up, the amount of energy innovation goes down—especially when you talk about small businesses.”

A plea for consistency: Businesses like Alloy Precision Technologies are also frustrated by the unstable regulatory environment, which seems to shift every few years.

• “When these policies change it makes it impossible for companies to make decisions about investing in equipment and smart manufacturing,” said Canty. “It disrupts the business marketplace, and it greatly affects our ability to produce and compete around the world.”

The last word: “Do I believe we ought to continue investing in newer technologies that will improve our air quality? Absolutely,” said Canty. “These regulations are well meant, but the end result will be disastrous for businesses and the United States.”

Jason Asbury wants to clear up a misunderstanding.

The vice president for geotechnical and field services at TERRADON Corporation—the largest woman-owned engineering business in West Virginia—knows that West Virginia’s leadership in the energy industry has created a negative stereotype about West Virginians and environmentalism. But he also knows that the reality is very different.

• “There’s a misconception that we don’t care about the environment, and that couldn’t be further from the truth,” said Asbury. “We’re some of the most outdoorsy people you’ll ever meet, and we care about nature, about the mountains, the waterways, the clean air—that’s why we live here. This is home for us, and we feel a duty to make sure that everything we do protects the environment.”

But as the Environmental Protection Agency considers a more restrictive standard for clean air, Asbury is also warning that the rule is unrealistic and ultimately harmful, and that it will cause painful repercussions in West Virginia and beyond.

A strict standard: The EPA rule under consideration, which would govern particles known as PM2.5, would impose additional tight regulations on manufacturers and others across the country. According to Asbury, those regulations would harm businesses without resulting in real benefits.

• “It’s potentially overkill,” said Asbury. “Everybody in sectors from engineering to construction and manufacturing is doing all they can to ensure we have clean air—but we’re trying to balance having clean air with being profitable and having jobs and economic growth in our communities. Groups like ours are already working toward environmental goals, and this rule hinders that.”

A heavy burden: The EPA’s proposed rule would impose significant costs and delays for companies, Asbury continued.

• “It’s more burdensome on the permitting and regulatory side to attempt to meet a standard that may or may not be attainable,” said Asbury. “That causes design overruns and more costly projects.”
• “It causes us to miss deadlines and push projects back. If projects get canceled, we’re laying off staff. And if folks don’t want to go through this extra layer of regulation, then there’s a potential for bigger job losses in the community.”

A message to policymakers: Asbury wants policymakers to understand that these rules aren’t just about numbers on a spreadsheet; they have real human consequences.

• “Have you ever tried to do what you’re asking others to do?” said Asbury. “Have you ever tried to run a project under these regulations? Have you ever had to tell people that they don’t have a job due to a project being killed because of regulations like this one? It’s easy to make these rules when you’re not responsible for signing the front of a check.”

Manufacturers have long been leaders in sustainability, as have their partners in the agricultural industry. But as the Environmental Protection Agency considers imposing new restrictive air standards, groups across the country are speaking out in opposition.

In California, a group called the Nisei Farmers League is making noise.

Formed by a small group of Japanese American growers in 1971 as a “mutual protection society,” the NFL has become a well-respected organization committed to serving the needs of growers, farm workers and other members of the agriculture community in California. Today, they are sounding the alarm about a proposed EPA rule that would enforce a tighter national ambient air quality standard for fine particle pollution known as PM2.5—a move that could impact everything from permitting to international competition.

Widespread impacts: According to NFL President Manuel Cunha Jr., the regulations could be devastating for growers in California and farmers across the country.

• “There are issues with this regulation that the public just doesn’t realize,” said Cunha. “It impacts jobs. It impacts our ability to move freight. If you think the cost of food is high today, it will be even higher if this rule goes into effect.”

A closer look: Cunha knows the impacts of regulations like this one firsthand. He tells the story of a colleague who uses machinery to dehydrate fruits like apricots and peaches, but whose machinery would be unaffordable if he was forced to adhere to the stricter standard.

• “If they come out with a new standard, he’ll have to shut down,” said Cunha. “He can’t afford to build new equipment—the cost is unsustainable. It’s not economically feasible. And that’s what they’re telling our farmers to do.”

Impeding growth: Rapid shifts in environmental standards have also made it difficult for growers and other members of the agricultural community to adjust and succeed.

• “These standards keep changing, and it’s impossible to keep up,” said Cunha. “Our area in the San Joaquin Valley has seven plans with the EPA that are waiting for approval, and every time we turn around, there is another standard holding us back.”
• Meanwhile, strict standards imposed on other parts of the supply chain create costs that get passed along to farmers.

A message to policymakers: Cunha is speaking out because he wants policymakers to think about the realities of the proposed rule—including the costs that states will bear and the ripple effects throughout the agricultural supply chain.

• “How do we keep jobs?” said Cunha. “How do we keep our rural communities alive if you’re developing rules that don’t have the facts and the science behind them? Politicians are going on the basis of what looks and sounds good, but you have to realize that what you’re doing is driving out small farmers.”

When service members leave the military, manufacturers are quick to say: “Come on over!” Military skills are usually a great match for manufacturing careers, which require attention to detail, technical abilities and creative thinking. And there’s no better matchmaker than the Manufacturing Institute’s initiative, which since 2018 has been offering training certification programs and career courses to transitioning service members and veterans.

Today, HMA not only serves service members on military installations across the country but has also expanded its reach via a virtual training program.

Widening the reach: Now in its second year, the virtual training program has allowed HMA to impact service members on a national scale.

• For the first time, members from four branches—Army, Air Force, Marine Corps and Navy—are participating in the same class at the same time.
• Additionally, the geographic range of participants has increased to comprise students located far and wide, including in Alaska, Arizona, Delaware, Kansas and Kentucky.
• The program has reached more than 120,000 prospective students through local transition assistance, HMA’s and presence and the .

How it works: HMA partnered with Texas State Technical College to create a virtual nine-week training and certification program.

• Participants earn nationally portable, industry-recognized certification as well as an OSHA 10 certification.
• Through , HMA also partners with sponsors like Johnson & Johnson, The Caterpillar Foundation, Amazon, Howmet Aerospace, WestRock, Saint-Gobain, Atlas Copco, Cargill, FUCHS Lubricants Company, C.H. Guenther & Sons, Honda Foundation, Niagara Bottling and the NAFEM, PPI and SEMI Associations to connect program graduates and members of the military community with manufacturers.

What we’re saying: “It’s exciting to see members from four branches of the military all in one virtual classroom together,” said Heroes MAKE America Senior Program Manager Katie Bowerman. “There’s a lot of strength in that kind of diversity.”

Spread the word: Do you have jobs for which HMA students might qualify, or know of a service member who would want to join the program? The HMA virtual program is open to any transitioning service member who is in their last six months of active-duty service, as well as to veteran and active-duty military spouses. For more information, contact [email protected].

Streamlining the nation’s permitting process, filling open manufacturing positions and reforming the U.S. immigration system—these are just a few of the actions the U.S. must take improve American lives and to bolster the economy, 51�Թ��� President and CEO Jay Timmons said Tuesday.

America still works: Timmons was one of three panelists at “,” an event hosted by United For Infrastructure, a program of Accelerator for America Action. He told audience members that manufacturers have before them “a great opportunity.”

• “What really excites me the most is, when you look at [the] CHIPS and Science [Act], when you look at [the] Infrastructure Investment [and Jobs Act] and when you look at—hopefully—permitting reform, what you see is, America still works,” he said.
• “We have this moment in time where I think we have to prove again to the world that America is a beacon, it is a democracy that provides opportunities for everyone and allows individuals to succeed and to rise on that ladder of success. …. For manufacturers, this is a great opportunity.”

Workforce challenge: Timmons discussed the primary workforce challenge before the sector—a projected growth of unfilled jobs—and how the 51�Թ��� is aiming to overcome it.

• “We have about 800,000 open jobs in the sector today and … we have to hire 4 million people before 2030,” he said, referring to the findings from a joint by the 51�Թ���’s 501 workforce development and education affiliate, the Manufacturing Institute, and Deloitte.
• The 51�Թ��� and MI are seeking to fill those jobs through the work of several initiatives, Timmons continued. These include perception-changing programs such as , the Toyota-founded program (now operated by the MI), and the promotion of hiring (employment of individuals with previous, non-violent involvement in the criminal-justice system).

Education: The importance of reaching the next generation of manufacturers early cannot be overstated, Timmons told the audience.

• He talked about the high-tech donations—robotics, CNC machines and more—by manufacturers to schools such as Rankin Technical College in St. Louis, Missouri, and Palatine High School in Palatine, Illinois. This machinery is used in programs that aim to interest students in manufacturing careers.
• “I think we have obligation to” make this sort of investment, Timmons said. “I’m very proud of our manufacturers for stepping up to it.”

Immigration: Perhaps the most pressing issue before the U.S., however, is immigration, Timmons told the audience.

• “Today, more so than ever before, we have an economic reality that we have to address,” said Timmons, who referenced the 51�Թ���’s policy blueprint on immigration reform, “A Way Forward,” during his talk.
• “We have what, 13 million undocumented folks in this country? … We need to hold our officials accountable for coming up with a plan that is workable and humane and will actually help the economy.”

Title 42 has been a fixture in the news in recent days—but what is it and what does its recent end mean? We break it all down here.

What’s going on? Title 42, which went into effect March 2020, was a COVID-19-era policy that allowed the U.S. to expel migrants for health reasons. Under it, more than 2.6 million people were sent back to their home countries, according to (subscription).

• Now that Title 42 has concluded, authorities are only permitted to expel individuals using Title 8, pre-pandemic immigration rules, (subscription)

What should we expect? Though an expected weekend “surge” in border crossings did not materialize—in fact, there was a 50% drop in the three days ending Monday, according to the —“the number of crossings is still exorbitantly high, with U.S. Customs and Border Protection stopping more than 10,000 immigrants per day this week, the highest levels ever,” the reports.

• And southern border communities remain on “high alert” for a potential near-term spike in migrant crossings, according to .

How is the administration addressing the change? The Department of Homeland Security—which has issued a on asylum—put out a to address an influx of migrants at the southern border. The measures aim to:

• Increase resources, personnel, transportation and medical support and facilities;
• Bolster CBP processing efficiency;
• Move quickly to mitigate potential overcrowding of CBP stations and alleviate the burden on the surrounding border communities;
• Administer consequences for unlawful entry, including removal, detention and prosecution;
• Boost the capacity of nongovernmental organizations to take in migrants following processing by CBP, during the wait for results of their immigration removal proceedings;
• Target and disrupt the criminal organizations and smugglers that profit off vulnerable migrants and seek to move illegal drugs into the U.S.; and
• Collaborate with international and federal authorities to deter undocumented migration.

What’s Congress doing? The House passed a border package, the Secure the Border Act of 2023, the day Title 42 expired.

• The House measure—which the White House has said it would veto—“would mandate that Customs and Border Protection hire enough Border Patrol agents to maintain a staff of 22,000 and develop a plan to upgrade existing technology to make sure agents are well-equipped. It also would require the homeland security secretary to resume construction of the border wall,” according to .
• The Senate has two proposals to secure the border. One, , would give the U.S. temporary authority to expel for two years migrants who try to enter illegally or without proper documents. The other, the from Sen. Tim Scott (R-SC) and others, would fund “nonintrusive border inspections” and border-wall construction, as well as retention bonuses for CBP agents, and would end the current “catch and release” policy.

What’s the 51�Թ��� doing? The 51�Թ��� continues to advocate immigration reform through “A Way Forward,” its immediately implementable policy blueprint for legislators, meetings with key congressional leaders, member-story and news coverage (see here, here and here for a few examples), the Competing to Win Tour and more.

The energy and enthusiasm of the night were fittingly high for the occasion: a gala to honor 130 standout women in manufacturing.

What went on: The Manufacturing Institute’s 2023 Women MAKE Awards—formerly the STEP Ahead Awards—took place Thursday evening at the National Building Museum in Washington, D.C., following the two-day Women MAKE Leadership Conference. (The MI is the 51�Թ���’s 501(c)3 workforce development and education affiliate.)

• The gala—which featured a live performance by violinist Ezinma and was sponsored this year by BASF, Trane Technologies, Amazon and others—is held each year to honor women in manufacturing who exemplify leadership in their careers.
• This year the awards recognized 100 honorees and 30 “emerging leaders,” women under the age of 30 who have achieved unique accomplishments.

What was said: MI President and Executive Director Carolyn Lee delivered the night’s opening remarks, telling audience members she was humbled to be in their midst.

• “We have women who have launched entire product lines,” she said. “Women with dozens of patents to their name. Women who oversee the production and distribution of millions of products every day … women who constantly exceed expectations.”
• Carolyn Lee touched on the MI’s year-old 35×30 campaign, which aims to raise the percentage of women in manufacturing from 29% to 35% by 2030, and said the women honored at the gala serve as inspiration to young women considering manufacturing careers. “Because if you can see it, you can be it,” she said.

“The opportunity”: WMA Chair and Cornerstone Building Brands President and CEO Rose Lee underscored the importance of filling the current shortfall of manufacturing workers.

• If the shortage continues unchecked, the number of missing workers could exceed 2 million by 2030, she said, citing a by the MI and Deloitte.
• “Therein lies the opportunity to engage an untapped, underutilized pool of women talent in the vitally important manufacturing sector,” Lee continued. “This is the collective work we need to pursue, and the honorees and emerging leaders here tonight are advancing this work by demonstrating the myriad ways in which women can achieve professional success in the manufacturing industry.”

Thank you: MI Board Chair and 51�Թ��� President and CEO Jay Timmons thanked the honorees for showing the next generation what’s possible.

• “Thank you for being role models—including for my daughters and my son, the many families we have in this room and the people you impact every day,” Timmons said. “The ripple effect you can have is incalculable.”

From one to many: Rounding out the night’s lineup was event Vice Chair and Caterpillar Inc. Group President of Resource Industries Denise Johnson, who told the audience it was “remarkable” to be in a room with so many other women in manufacturing.

• “There have been many times throughout my career when I’ve been the only woman in a room, the only woman on a project,” she said. “What an incredible change of pace this is. I … am overwhelmed with gratitude and pride for how far we’ve come. Congratulations to all of you.”

Every year the Bryce Harlow Foundation gives its Business–Government Relations Award to an individual who’s given their all to a career in professional advocacy—and this year, that person was 51�Թ��� President and CEO Jay Timmons.

Honorees: On Wednesday evening in Washington, D.C., the foundation held its 42nd Bryce Harlow Foundation Annual Awards reception and dinner. The night’s awardees were Timmons and Rep. Debbie Dingell (D-MI), the winner of the foundation’s other honor, the Bryce Harlow Award.

• Timmons was introduced by Dow Inc. Chairman and CEO (and 51�Թ��� Board Chair) Jim Fitterling, who called the 51�Թ��� leader “ethical down to his bones” and said, “Jay has a reputation of working honestly and earnestly with Democrats, Republicans and Independents, and he earned that reputation because fundamentally he’s committed to policy solutions that create a win–win, not only for both political parties, but also for American manufacturers and American workers.”
• Dingell also praised Timmons’ steadfast, post-partisan approach to manufacturing advocacy. “He has worked to make sure Democrats and Republicans are part of the discussion about manufacturing and understand how critical it is to this country. … To be honored in the same year as you, Jay, means more than you’ll ever know.”
• In his own remarks, Timmons praised both Bryce Harlow Foundation President Barbara Faculjak’s “outstanding leadership” and Rep. Dingell’s “incredible example for [the next] generation.”

Pep talk: Also honored at the dinner were the 2022–2023 Bryce Harlow fellows, a group of 30 graduate students pursuing careers in advocacy through government relations or lobbying. Timmons spoke directly to them for most of his speech.

• “Over the course of your careers, you will face important decisions,” he said. “You’ll ask yourself questions like, ‘Where should I work?’ ‘What will I do next?’ ‘How much can I make?’ … I want to encourage you to ask another: ‘Why?’”
• “The question matters … because if you can answer honestly and feel yourself standing up a little straighter with a sense of purpose, then you’re in the right profession,” he said. “If your ‘why’ is right … then the ‘what,’ ‘where’ and ‘how much’ will take care of themselves.”
• Timmons went on to tell the fellows part of his own story: how he dropped out of college to move to D.C. and “join the Reagan Revolution”—against his parents’ wishes. But even then he was able to answer his own “why.”

The manufacturing “why”: For the 51�Թ���, the organizational “why” is “to advance the values of free enterprise, competitiveness, individual liberty and equal opportunity.”

• Timmons told the students that part of their jobs “as advocacy leaders” would be to defend democracy, now under attack in Russia’s war against Ukraine and elsewhere in the world. While not perfect, Timmons said, democracy has done more to improve people’s quality of life than any other system in history.

Your authentic self: “[T]here was always something or someone who told me to change course or that I wasn’t right for a job—including those voices that told me to pack it up when I was outed as a gay man at a time when that wasn’t exactly an asset for a career,” Timmons said. “If I’d listened, I wouldn’t be here.”

• Today Timmons is the president and CEO of the country’s largest manufacturing association and is happily married with three children.
• “So bring your authentic self to the table,” he concluded. “Soak in all the knowledge and wisdom you can from others. But ultimately, have confidence in your own inner voice, your own judgment and your own vision.”

Click here for Timmons’s full remarks.