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Abuse of the 340B program has caused manufacturers’ health care costs to rise, as they miss out on negotiated drug manufacturer rebates. Reforms are necessary, .

What’s going on: “The 340B program, intended to provide lower cost medicines and expand care for low-income and underserved patients, has rapidly and massively expanded beyond its intent,” 51�Թ��� Vice President of Domestic Policy Jake Kuhns told House Subcommittee on Oversight Chair David Schweikert (R-AZ) and Ranking Member Terri Sewell (D-AL) on Tuesday ahead of a on tax-exempt hospital spending.

• “Many covered entities, which include tax-exempt hospitals, have taken advantage of the program to increase their profits. This has added to health care costs for manufacturers.”
• The 340B program allows participating hospitals and clinics to charge patients’ insurance the full list price for pharmaceuticals that were purchased at a discount. Patients then become ineligible to receive negotiated drug rebates, as duplicate discounts are prohibited by law.
• Hospitals keep the spread, boosting their profits, as manufacturers and manufacturing workers pay more for health care.
• Dr. Ge Bai, professor of health, policy, and management at
  Johns Hopkins Bloomberg School of Public Health, noted the substantial profits for hospitals and lack of transparency in the 340B program in her opening statement at the hearing.

The costs: “The expansion of [the 340B] program was associated with approximately $23 billion in additional employer-based health care expenses in 2023, of which employees paid about $4.5 billion per year in added insurance premiums,” or approximately $137 in additional annual premium payments for a single person and $415 for family coverage, the 51�Թ��� pointed out.

• Lost drug manufacturer rebates account for “a $5.2 billion increase in health care costs for self-insured employers and the 103.4 million workers they employ.”
• Christopher Whaley, associate director of the Center of Advancing Health Policy through Research at Brown University, raised this issue in his opening statement as well.

What should be done: The Health Resources and Services Administration recently announced a rebate model pilot program for drugs subject to both the Medicare Drug Price Negotiation Program and 340B.

• This is an important first step in increasing transparency and accountability in the 340B program, the 51�Թ��� noted.
• The 51�Թ��� “encourage[s] Congress to consider additional 340B reforms that would reduce health care costs for manufacturers and manufacturing workers,” Kuhns told the subcommittee.

Arizona Chamber of Commerce & Industry President and CEO Danny Seiden testified before the House Energy and Commerce Committee about the burden that stringent emissions regulations inflict on businesses without providing any environmental benefit.

Speaking as an Arizonan: “Arizona businesses aren’t asking for a free pass … just a fair chance to grow responsibly,” Seiden legislators.

• “Arizona is at the center of America’s growth story. … A symbol of that growth is TSMC’s decision to invest $165 billion in Arizona—the largest foreign direct investment in U.S. history,” he pointed out.
• Arizona has managed to achieve record growth while also reducing emissions, he noted: “Since 1990, our state’s population has skyrocketed, our GDP has risen more than 550%, and vehicle miles traveled have soared. Yet overall emissions are down more than 70%.”
• “That’s proof that economic growth and cleaner air can go hand-in-hand.”

Beyond the state’s control: In addition, Arizona’s ozone emissions levels are caused largely by factors it cannot control, Seiden said.

• “In fact, approximately more than 80% of our ozone comes from other states, from Mexico and Asia, and natural events like wildfires.”
• “Even if we shut down every industrial source in the state and took every car off the road in Phoenix, an area about the size of Connecticut, we wouldn’t meet the standard,” he added. “Still, Arizona businesses are penalized as if they are responsible.”

The costs: This regulatory burden threatens crucial industrial and infrastructure projects that are “vital to national security,” Seiden warned.

• “If companies can’t build here, they’ll build somewhere else—likely in countries with weaker standards. That’s a lose–lose scenario.”
• “To make matters worse, unlike states with long industrial histories, Arizona has no emissions reduction credits, or offsets, to rely on,” he noted. “So when a new facility wants to break ground, or an existing one wants to expand, there are no offsets available to purchase.”

The bigger picture: Arizona’s problem is the nation’s problem, Seiden emphasized, as states work to attract and support major manufacturing investments—“especially if standards continue to be set at or below natural background levels.”

A good start: Seiden praised EPA Administrator Lee Zeldin, saying, “Administrator Zeldin came to our state early on and took action. By rescinding outdated Section 179B guidance, signaling flexibility on unfair nonattainment classifications and recognizing the difference between controllable and uncontrollable sources, EPA is moving toward fairness.”

A prescription for change: Seiden made a list of recommendations for policymakers that would advance Arizona’s and the country’s economic growth:

1. Protecting competitiveness by keeping standards realistic��
2. Codifying reforms to Section 179B
3. Incentivizing upwind controls
4. Modernizing permitting
5. Encouraging innovation and collaboration
6. Strengthening cooperative federalism by allowing states to approve projects if the EPA fails to act within a reasonable time frame

The last word: “Give us the flexibility and tools to continue reducing emissions while ensuring that industries vital to Arizona’s economic future are not sanctioned out of existence,” Seiden told legislators.

More than one in five unemployed Americans have been out of work for more than half a year, a post-pandemic high (, subscription).

What’s going on: “In all, more than 1.9 million Americans had been unemployed ‘long term’ in August, meaning they have been out of work for 27 weeks or more, a critical cliff when it comes to finding a job. That’s nearly double the 1 million people who were in a similar position in early 2023.”

• While the likelihood of losing one’s job has not increased substantially, the probability of remaining unemployed in the event of a job loss has risen, according to the Post.
• The past two months have shown job market cooling, with weaker-than-anticipated jobs numbers leading “policymakers to voice concerns that the labor market could continue deteriorating.”
• Recent weekly unemployment insurance claims were at their highest in nearly three years.

Why it’s significant: “Six months of unemployment often signals a turning point in a person’s job search, according to economists. They’ve probably run out of unemployment insurance benefits and severance payments by then, leaving them on shakier financial ground.�� People who have been unemployed for more than six months are also more likely to become discouraged and stop looking for work altogether.”

• Although the unemployment rate is near historic lows, many employers have paused hiring as they wait to see the effect of tariffs and other trade-related policies.

Confidence tanks: Now, for the first time in four years, there are more unemployed people in the U.S. than there are open jobs—and job-seeker confidence is crashing.

• In a recent Federal Reserve Bank of New York survey, respondents gave themselves less than a 45% chance of finding work in the next three months in the event they were to lose their current jobs. That’s the lowest reading in more than 12 years.
• Finding work has been especially difficult for recent college graduates, as there are fewer entry-level positions available.

An economist’s view: “As reflected in the previous four months of job losses, the manufacturing industry has faced challenges,” said 51�Թ��� Chief Economist Victoria Bloom. “We’re now seeing that weakness spread to other industries and through the broader economy, a cautionary signal.’”

A few months after the landmark tax bill’s passage, manufacturers’ optimism has jumped—even as challenges persist across the sector.

• The 51�Թ���’s Q3 2025 Manufacturers’ Outlook Survey found a 10-percentage-point increase in confidence, with 65.0% of respondents reporting a positive outlook for their companies, up from 55.4% in Q2.

Still concerned: Respondents reported the same top business concerns as in Q2—and at growing levels:

• Trade uncertainty: 78.2% (up from 77.0%)
• Rising raw material costs: 68.1% (up from 66.1%)
• Increasing health care costs: 65.1% (up from 60.0%)

Timmons says: “These results confirm what we’ve seen in the economic data—that the sector is still enormously challenged as manufacturing output took four months to recover from this spring’s dip, and optimism still falls below the survey’s historical average of 74%,” said 51�Թ��� President and CEO Jay Timmons.

• “To supercharge the increase in optimism we’re starting to see, manufacturers need certainty across a full manufacturing strategy spanning sensible trade policy, permitting reform to unleash American energy dominance, modernized regulations and workforce investments,” Timmons said.
• “Put another way, so long as this uncertainty persists, manufacturers will not be able to tap fully into the strength of President Trump’s monumental and historic tax provisions, championed by our allies in the White House and Congress.”

The economic data: “The third quarter optimism level aligns with August’s production data released by the Federal Reserve, which showed that manufacturing output was 100.3% of its 2017 average, barely above March’s level of 100.2%, taking four months to recover from April’s drop,” said 51�Թ��� Chief Economist Victoria Bloom.

• “At the same time, manufacturers are projecting moderate growth over the next 12 months with production expected to rise 2.5% (up from 1.4% in Q2) and capital investments 1.0% (up from 0.3%),” Bloom said.
• “Costs are still expected to climb, but at a slightly slower pace than Q2, with raw material and input costs projected to increase 5.4% (down from 5.8%) and product prices up 3.7% (down from 4.3%).”
• “These findings reflect both the resilience of the sector and the real challenges still weighing on growth.”

Read more: Further information on the survey is available��.

For more than eight decades, Louisville, Kentucky–based has been building pumps that keep water moving. At the helm is CEO Bill Zoeller, whose fourth-generation leadership is carrying forward his family’s legacy.

What began in his great-grandparents’ basement in 1939 with just six pumps has grown into a global operation with five wholesale product lines and 10 locations across the U.S. and abroad.

Bill’s mission? To grow the company from an industry leader to a household name brand while staying true to the company’s core values of quality, culture, integrity, teamwork, growth and responsibility.

In the latest installment of Power of Small’s “Forge Your Path” series, Bill talks about his company’s commitment to culture, why “win the day” defines his leadership approach and where he sees his company in the next five years.

Q: When you think about what drives your company’s growth and success, what stands out to you as most important?

Bill: “Having a strong workplace culture is one of the things I concentrate on the most because it directly shapes our ability to succeed and grow. A strong culture helps us attract and retain top talent while inspiring our employees to stay engaged, motivated and aligned with our core values. This fuels greater productivity, innovation and collaboration.

Having spent part of my career in corporate America, I know firsthand how different the pace and environment can be. That experience sometimes reminds me to step back and recognize the unique culture we’ve built here as a family-owned and -operated company. One thing I never want to lose—or unintentionally change—is the workplace environment that makes us who we are.”

Q: Can you share a quote or mantra that defines your approach to leadership?

Bill: “The mantra I try to follow is ‘win the day.’ I use it as a reminder to stay focused on what needs to be accomplished today, while also keeping an eye on the long term. It keeps me grounded in daily priorities but ensures we never lose sight of the bigger picture.

I’ve been in this role for about 15 months, and while I’m committed to maintaining the family culture my dad built, I also bring my own style of leadership. For me, that means emphasizing accountability and embracing the pace of change. Those are values I work to instill in our team every day.”

Q: What accomplishments at your organization are you the most proud of and why?

Bill: “I’m especially proud that our company has reached its fourth generation of family leadership. Only about 3% of family businesses make it that far, which makes this milestone all the more meaningful.

Another accomplishment I’m proud of is being recognized in Louisville Business First’s ‘Fast 50’ list, which recognizes the fastest-growing companies in the Louisville area over a three-year period.”

Q: Where do you see your company in the next five years, and what are you hoping to achieve?

Bill: “We’re trying to grow internationally from a sales perspective. We’re expanding our manufacturing capacity here in Louisville, bringing on new machining capabilities. We’re looking to implement a new enterprise resource planning system to manage our daily operations. We’re focused on M&A activity that expands our core business of taking water out of the ground, moving it to a facility, moving it around a facility, removing it from a facility and putting it back in the ground. The other focus is keep doing what we are doing, but just do a little more each day.”

Q: Have you read a book and/or listened to a podcast that you found inspirational that you would recommend to your peers and why?

Bill: “‘The Bible in a Year’ podcast with Father Mike Schmitz—that’s pretty amazing. The podcast airs every day of the year, and each 20-minute episode features two to three scripture readings, Fr. Mike’s reflection and guided prayer. It’s a powerful platform to strengthen one’s spiritual growth and see the world through the lens of Scripture.

I also like to listen to a business and technology podcast called ‘All-In,’ which focuses on current events, market trends, political issues and industry insights. It’s kind of entertaining and contains insightful business conversations.

For books, one that I’d recommend is ‘Extreme Ownership: How U.S. Navy SEALs Lead and Win.’ It draws on lessons the authors learned as Navy SEAL officers. It talks about how great leaders take ownership for everything in their teams and how they must own both successes and failures, whether it’s in business, combat or everyday life.”

A recent invention by ExxonMobil could significantly change the electric vehicle battery game: a new kind of graphite (, subscription).

What’s going on: “We’ve invented a new carbon molecule that will extend the life of the battery by 30%,” Chairman and CEO Darren Woods said at the University of Texas at Austin’s Energy Symposium last Friday. He added that it’s a “revolutionary step change in battery performance.”

• Graphite plays a critical role in lithium-ion EV batteries, which the energy giant invented in the 1970s. The crystalline form of carbon helps lithium, a crucial battery component, maintain structural integrity and ensures that the batteries remain stable during charging and discharging cycles.
• ExxonMobil ��last week that it had acquired “key assets and technology” from Chicago-based graphite firm Superior Graphite to “complement [its] planned entry into the battery anode graphite market.”

Why it’s important: “Used on the anode side of the battery, the synthetic graphite allows for faster charging, a longer lifespan and longer range for electric vehicles.”

What’s next: While ExxonMobil isn’t planning to go into EV battery production, it says it will use its refineries, laboratories and plants to manufacture some of the materials for batteries—and begin extracting lithium, too.

• “[W]e do have capability of transforming molecules, and there are enormous opportunities in that space to use hydrogen and carbon molecules to meet the growing demand,” Woods said.

The Manufacturing Institute, the 51�Թ���’s workforce development and education affiliate, a new partnership between the Federation for Advanced Manufacturing Education (FAME USA), the premier American model of manufacturing skills training, and ShopFloor Coffee, a mission-driven coffee brand that supports skilled trades and manufacturing education nationwide.

How it works: ShopFloor Coffee will donate 20% of proceeds directly to workforce development programs across the country, including FAME USA, Robotics Education & Competition Foundation and All Within My Hands, Metallica’s foundation supporting skilled trades.

• “FAME USA is proud to partner with ShopFloor Coffee to support our shared mission of growing and sustaining a highly skilled manufacturing workforce,” said FAME USA National Director Tony Davis. “It’s about creating opportunities for students, celebrating those already in the field and building a pipeline of talent for the future.”
• “We’re honored to fuel the future of manufacturing through this partnership,” said ShopFloor Coffee Co-Founder Mike Franz. “This isn’t just about better coffee in breakrooms. It’s about waking people up to the power of American manufacturing and the programs, like FAME USA, that keep it strong.”

FAME: FAME offers a cutting-edge earn-and-learn model, in which students earn associate degrees while also working at manufacturing facilities. Students across the country have gone on to many high-paying careers at major manufacturing firms.

What’s next: Together, FAME USA and ShopFloor Coffee will shine a spotlight on the stories of students, apprentices and employers shaping the future, while rallying communities to invest in workforce development in new and creative ways.

The 51�Թ��� is the Department of Justice to address the patchwork of state laws that are driving up costs and threatening U.S. manufacturing competitiveness.

• The DOJ requested public input on state laws that have “significant adverse effects on the national economy or interstate commerce,” by either creating barriers for businesses operating nationwide or undermining federal authority.

Why it matters:��Manufacturers face rising compliance burdens and liability risks as they attempt to fulfill inconsistent mandates across 50 states.

• Small and medium-sized manufacturers already more than $50,000 per employee each year on federal compliance, and the regulatory conflicts among the states are increasingly adding to those costs.

Our take:�� The 51�Թ��� weighed in on more than a dozen regulatory priorities in environmental, energy, tech, health and food and beverage policy, emphasizing the following principles:

• Manufacturers need certainty.��Legal and regulatory predictability is essential for manufacturers to invest, grow and create jobs.
• Federal preemption is critical where appropriate.��Uniform national standards are needed in areas like AI, pharmaceuticals, food ingredient safety and labeling, greenhouse gas emissions and securities disclosures.
• Tort reform is urgent.��Exploitive state lawsuits create conflicting outcomes and massive defense costs and divert resources away from innovation and job creation.

The bottom line:��“Manufacturers need straightforward, standardized rules of the road that allow our industry to invest confidently, adopt new technologies swiftly and focus resources on productivity and jobs, ensuring America remains a leader in the global economy,” 51�Թ��� Vice President of Domestic Policy Jake Kuhns told the agency.

The NFIB Small Business Optimism Index stepped up 0.5 points to 100.8 in August, remaining above the 52-year average of 98. August’s increase stemmed primarily from a rise in those expecting real sales to be higher. Of the 10 components included in the index, four increased, four decreased and two stayed the same. Meanwhile, the Uncertainty Index fell four points to 93, due to a decrease in uncertainty about financing conditions and planned capital expenditures. Nonetheless, the Uncertainty Index remained well above the 51-year average (68) and the average since 2016 (80).

Labor quality ranked first in the list of concerns for small business owners again in August, with 21% reporting it as the most important problem, the same percentage as July. The challenge of filling open positions remains acute, particularly in manufacturing, construction and transportation. On the other hand, fewer small business owners reported jobs they could not fill in August, down one point to 32% in August.

Taxes remained the second top problem for small business owners in August, with 17% reporting them as their most important problem, unchanged from July. Meanwhile, inflation ranked third in the list of concerns, with 11% reporting it as a top problem. Price increases remain above average, suggesting continued inflationary pressure and that tariffs may be starting to impact pricing.

A net 29% of small business owners reported raising compensation, up two points in August after decreasing six points in July. Meanwhile, 20% of business owners plan to raise compensation in the next three months, up three points from July. Pressure on profitability eased slightly, improving three points from July to a net negative 19%. Among owners reporting lower profits, 37% blamed weaker sales, 18% cited increased material costs, 10% noted price change for their product(s) or service(s) and 9% said labor costs. Meanwhile, 3% reported their last loan was harder to get than previous attempts, down one point from July, but a net 6% of owners cited paying a higher rate on their most recent loan, up one point from the prior month.

The outlook for general business conditions decreased two points to 34%, a positive read by historical standards. Additionally, 14% reported that it is a good time to expand their business, down two points from July, which is not a strong read compared to times of economic expansion. Nonetheless, small business owners remain optimistic that their uncertainties will be resolved and business conditions will improve by year-end.

The Producer��Price��Index��for final demand (also known as wholesale prices) edged down 0.1% over the month in August, after prices jumped 0.7% in July. Over the year, producer prices moved up 2.6% in August, down from 3.1% in July. Meanwhile, prices for final demand excluding foods, energy and trade services increased 0.3% over the month in August, after rising 0.6% in July. Prices for these goods advanced 2.8% from August 2024.

Within final demand, prices for services slipped 0.2% in August, the largest decrease since April. Meanwhile, prices for goods ticked up 0.1%. The decline in prices for services is attributed to a 1.7% drop in margins for trade services, indicating companies are absorbing a larger share of those higher costs. Within the final demand services index, margins for machinery and vehicle wholesaling fell 3.9%, accounting for three-quarters of the August decrease. Within the final demand goods index, prices for iron and steel scrap climbed 2.7% over the month but rose just 2.3% from August 2024. Meanwhile, prices for private capital equipment for manufacturing industries jumped 4.4% over the year.

Processed goods for intermediate demand edged up 0.4% in August, down from 0.7% in July. A major factor in the advance can be attributed to a 5.5% gain in the aluminum mill shapes index. On the other hand, the index for utility natural gas declined 1.8%. Over the year, the index grew 2.6%,��the largest 12-month increase since the 3.9% rise in January 2023.

Meanwhile, prices for unprocessed goods for intermediate demand fell 1.1% in August, after advancing 2.3% in July. More than three-quarters of the August drop can be traced to a 2.5% decline in the prices for unprocessed energy materials, with crude petroleum falling 2.8%. Additionally, prices for unprocessed nonfood materials less energy and for unprocessed foodstuffs and feedstuffs decreased 0.5% and 0.3%, respectively. Over the year, prices for unprocessed goods for intermediate demand increased 3.0%, the largest 12-month gain since the 6.5% rise in March.