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The 51�Թ��� is intervening in a lawsuit to help the Securities and Exchange Commission defend a hard-won SEC rule that protects manufacturers and increases oversight of proxy advisory firms.

The background: Investment advisers and fund managers can vote on the policies of companies in which their funds invest. These fund managers often turn for assistance to proxy advisory firms, which recommend which way to vote. The problem is that proxy advisory firms have never been subject to SEC oversight, and as a result, their work has relied on questionable methodologies and ignored conflicts of interest—often causing problems for manufacturers and their shareholders.

The win: After years of 51�Թ��� advocacy, the SEC approved a landmark rule to regulate proxy advisory firms and increase transparency about the firms’ conflicts of interests and one-size-fits-all methodologies. This was a big victory for the 51�Թ��� and for manufacturers nationwide.

The lawsuit: Now, proxy advisory firm Institutional Shareholder Services has sued the SEC to stop the rule from going into effect—and the 51�Թ��� is stepping in to protect the progress it’s made.

• What we’re doing: The 51�Թ��� is filing a motion to intervene in the case—which essentially means that, if the motion is granted, it will become a party to the lawsuit, mounting its own defense of the rule in court and participating on the same schedule as the SEC. By taking on the role of intervenor, the 51�Թ��� will be better able to protect members’ interests and ensure the court understands why the rule is vital to manufacturers.

The bottom line: “The SEC’s rule on proxy advisory firms wasn’t just a victory for the 51�Թ���; it was a victory for accountability and transparency, and a victory for manufacturers across the country,” said 51�Թ��� Senior Litigation Counsel Erica Klenicki. “We are committed to defending this rule in court to ensure that manufacturers’ voices are heard and that manufacturers and manufacturing workers have the protection and support they deserve.”

Manufacturing is a key driver of the American economy—but how does manufacturing in the United States stack up against the rest of the world?

Recently, The Manufacturing Institute and KPMG—a professional services firms providing innovative business solutions and audit, tax, and advisory services—released a new assessment of the cost of doing business in the manufacturing sector for the United States and 16 other major manufacturing exporting nations around the globe.

High costs, but high value: The study found that primary costs (compensation, property, utilities, taxes and interest rates) in the U.S. are on average 16% higher than in the other markets—yet the U.S. ranks fairly high on the list overall at #5.

• Another number bears that out: over the past decade, in U.S. manufacturing has jumped from $569.3 billion in 2006 to a record $1,785.7 billion in 2019.

The benefits of tax reform: Tax reform made the U.S. a more desirable location for manufacturers, the study found. It compared how the U.S. would have ranked with its pre-reform corporate tax rate of 40% (the combined federal and state tax rate) instead of the post-reform corporate rate of 27%. With the old rate, the U.S. would have ranked only 11^th.

The benefits of skilled workers: A major U.S. advantage is its supply of high-skilled workers. According to the study, the U.S. ranks at the top of the list for real value added per employee, along with Ireland and Switzerland. As manufacturing has become increasingly advanced, the need for sophisticated employees keeps growing.

While it’s true that American manufacturing requires more skilled workers, as The Manufacturing Institute has previously shown, the existing workforce is still a big draw due to its productivity.

The bottom line: The United States is an attractive location for manufacturers, despite relatively high costs, because of high worker productivity and the overall business environment.

The last word: “We need to continue to push the envelope of technological innovation and workforce development and recruitment in the manufacturing sector,” said Chad Moutray, chief economist for the 51�Թ��� and director of the Center for Manufacturing Research at The Manufacturing Institute. “These efforts will serve to strengthen the sector overall, but also help to maintain the nation’s global competitiveness.”

Last night, the 2020 Manufacturing Leadership Awards Gala recognized some of the most innovative manufacturers in the country, at a virtual event hosted by the 51�Թ���’s . The MLC is a global business leadership network dedicated to preparing manufacturers for the opportunities and challenges posed by digitization, automation and technical advancement.

The winners: Presented to individuals and companies in 12 categories, including Sustainability Leadership and Artificial Intelligence and Analytics Leadership, the awards honor world-class manufacturing achievements. You can find the full list of honorees .

The word from the MLC: “Creativity. Innovation. Excellence. Enlightened leadership. These are the qualities that drive the people of manufacturing to create a better future,” said MLC Co-Founder and Executive Director David Brousell in his opening remarks. “In doing so, they help themselves, their companies and our collective industry improve the quality of life for everyone. . . . All across this country, innovation in manufacturing is on the march.”

Manufacturer of the Year: The MLC honored two manufacturers with Manufacturer of the Year awards: agricultural chemical and seed company Corteva Agriscience, and Humtown Products, which was honored for its work to popularize 3D printing in sand cores. You can check out our profile of Humtown .

Manufacturing Leader of the Year: This award went to Gerald Johnson, executive vice president, global manufacturing at GM, for his leadership in GM’s pivot to ventilator production in a partnership with Ventec Life Systems, code named Project V.

High Achiever Award Winners: The judges also presented high achiever awards to one winner in each category. Here’s the list:

• Lockheed Martin Corporation in the Artificial Intelligence and Advanced Analytics Leadership category for F-35 Augmented Reality Shop Floor Mobility
• Merck & Co., Inc., in the Collaborative Innovation Leadership category for Digital Fingerprinting
• Humtown Products in the Engineering and Production Technology Leadership category for Commercialization of 3D Printing in the Metal Casting Industry
• IBM in the Enterprise Integration Technology Leadership category for Migrating Supply Chain Quality Workload to Cloud
• Cooley Group in the Industrial Internet of Things Leadership category for Transforming Legacy Machinery into Smart Tech
• Hologic Inc. in the Operational Excellence category for Building a Culture of Operational Excellence
• Starkey Hearing Technologies in the Supply Chain Leadership category for Supply Chain Management Transformation
• The Boeing Company in the Sustainability Leadership category for Diverting Waste to Landfill While Upcycling Excess Airplane Carbon Fiber
• Nexteer Automotive in the Talent Management category for the Manufacturing Engineering Global Talent Management and Training Program

August saw a reduction in the number of available jobs for the first time in four months, according to the Labor Department’s Job Openings and Labor Turnover Survey, reports. However, manufacturing job openings rose that month, 51�Թ��� Chief Economist Chad Moutray tells us.

Manufacturing: According to Moutray, “Manufacturing job openings in August reached 460,000, up from 430,000 in July and the best reading since July 2019 (477,000). This improvement suggests that firms are once again increasing their interest in adding new workers, even as the sector attempts to rebound from the COVID-19 pandemic and the overall labor market has changed dramatically.”

Overall economy: The picture for the overall economy isn’t as strong:

• Job openings fell to 6.49 million—a decrease of 204,000.
• The job openings rate fell to 4.4% from 4.6% in the prior month.
• The number of people leaving their jobs voluntarily was 2.79 million in August—down 139,000 from the month before.

About half of the jobs lost during the COVID-19 pandemic have not yet been recovered.

This morning, the leadership of the 51�Թ��� Board of Directors—Trane Technologies Chairman and CEO and 51�Թ��� Board Chair Mike Lamach, Dow Chairman and CEO and 51�Թ��� Board Vice Chair Jim Fitterling, BTE Technologies President and 51�Թ��� Small and Medium Manufacturers Chair Chuck Wetherington and Protolabs President and CEO and 51�Թ��� SMM Vice Chair Vicki Holt—released a joint statement to reinforce the industry’s critical role in the fight against COVID-19. The statement reaffirmed manufacturers’ commitment to science and to what’s necessary to plow ahead.

• United in the fight: “As manufacturers for America’s goods and essential products, we have a strong message for our team members and the country. All Americans must do everything in our power to keep our workers, our communities and our fellow citizens safe from COVID-19.”
• Leading by example: “Our industry will continue manufacturing personal protective equipment, medical supplies and therapeutics, racing to develop a safe and effective vaccine and keeping consumer goods and the food supply plentiful. We have been able to do this throughout the pandemic and keep our workers safe because we follow the science.”
• Concluding words: “We all must follow best practices and look out for each other so we can keep the country open, supply the world and defeat this invisible enemy.”

Read the full statement here.

MFG Day 2020 looked a little different from last year, as the events celebrating modern manufacturing happened online instead of in person. But even amid the pandemic, there was a widespread outpouring of support for manufacturing, including from many policymakers. Here are some highlights, and a look at what’s next.

Bipartisan celebrations: on Thursday night designating Oct. 2 as National Manufacturing Day, while at least 28 governors and leading members of Congress marked the occasion by proclamation or on social media.

Illinois manufacturers have a proud history of ingenuity, innovation and resilience. And, despite the extraordinary challenges presented by COVID-19, they continue to persevere by adapting operations and offering life-saving solutions to this crisis.

— Governor JB Pritzker (@GovPritzker)

On , we celebrate the more than 4,000 manufacturers who call Maryland home. Their incredible innovation and creativity have been on display more than ever this year, and we are grateful for their many contributions to our state & to our nation.

— Governor Larry Hogan (@GovLarryHogan)

On National Manufacturing Day, we celebrate one of Ohio's most important industries, and the innovation and skill of manufacturing workers everywhere.

— Sherrod Brown (@SenSherrodBrown)

Hoosier manufacturers lead the world in innovation and growth. On we celebrate all the workers and job creators who build high-quality, made-in-America products that drive our economy forward.

— Jackie Walorski (@RepWalorski)

Virtual shop floor tours: Meanwhile, hundreds of manufacturers—in 49 states—invited students to “tour” their facilities via virtual events.

Proud to join our industry today to recognize the importance of modern manufacturing and inspire the next generation of talent nationwide.

— Caglayan Arkan (@Caglayan_Arkan)

PTC is bringing to life (and virtually, of course). Learn how we’re celebrating the next generation of .

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— PTC (@PTC)

Modern day has evolved tremendously and I’m proud we were able to offer a glimpse of it to students nationwide who joined 's virtual manufacturing tour and panel discussion as part of today’s 's event.

— Annette Clayton (@AClaytonBoard)

News coverage: MFG Day was also covered by traditional publications. 51�Թ��� President and CEO Jay Timmons on Yahoo! Finance discussing MFG Day and the need to practice safe social behaviors to combat COVID-19. And read two op-eds by Manufacturing Institute Executive Director Carolyn Lee on the importance of MFG Day, in the �����Ի���.

Still more to come: Be sure to join us on Tuesday, Oct. 13, at 12:00 p.m. EDT for (presented by Walmart) on how manufacturers are stepping up in response to COVID-19. You can also find more events throughout .

And don’t forget to share your own celebrations of manufacturing by using the hashtags #MFGDay20 and #CreatorsWanted on social media.

The CDC updated its guidance on transmission of COVID-19 to clarify that it spreads through airborne transmission, reports.

What it all means: While the CDC says COVID-19 is still much more likely to be transmitted through respiratory droplets when someone sneezes, coughs, talks or breathes, it’s also possible for smaller particles of the virus to stay in the air for several minutes—or even hours—and spread between people who are more than six feet apart.

Ventilation is key: The new guidance heightens the importance of proper ventilation in fighting the spread of the virus. The CDC clarifies that most airborne transmission happens in poorly ventilated indoor spaces, especially during activities like exercise or singing that might cause people to breathe more heavily.

The recommendation: The CDC is still recommending the same behaviors as before, which include:

• Wear a mask that covers your nose and mouth;
• Social distance by staying at least six feet away from others;
• Wash your hands frequently;
• Clean high-touch surfaces often; and
• Stay home if you feel unwell.

A word from the 51�Թ���: “For months, manufacturers have gone above and beyond the recommendations of health officials to protect the health and safety of our nation’s essential workers,” said 51�Թ��� Director of Labor and Employment Policy Drew Schneider. “Manufacturers are using existing ventilation systems and outdoor air to reduce airborne spread of COVID-19 by increasing air circulation, allowing outdoor air into facilities and using air purifiers. 51�Թ��� members are still following CDC guidance for social distancing, face coverings and proper hygiene and will continue to retool their facilities in accordance with the recommendations of health experts.”

Today is MFG Day 2020—the year’s largest day of action for modern manufacturing. But it doesn’t stop there: MFG Day launches a month full of manufacturing events, as companies and educational institutions show students, parents, teachers and community leaders the great careers that manufacturing has to offer.

A new look: Thanks to the pandemic, the annual tradition of manufacturing open houses has been transformed into a series of mostly virtual events. This year’s MFG Day will be like no other, offering opportunities for more connection and participation across the industry and country without the limitations of physical events and travel. Hundreds of events will be held throughout October.

A full schedule of national, local and regional events can be found at . The Manufacturing Institute is also hosting a series of flagship virtual events, including today at 12:00 p.m. EDT, presented by Salesforce, PTC and Rockwell Automation, and on Monday, Oct. 5, at 12:00 p.m. EDT, presented by PTC. Share these programs with your networks!

A word from the MI: “As we celebrate MFG Day across the country over the next month, we are reminded of the important role that modern manufacturing plays in each of our lives. From the masks and clothes we wear to the food we eat, modern manufacturing is at the heart of our country and, as the pandemic continues, will lead the way to our recovery and renewal,” said MI Executive Director Carolyn Lee. “This year’s MFG Day, more so than ever before, is a uniquely powerful opportunity to bring awareness to the high-paying, rewarding and meaningful career opportunities in our industry and to open minds to what’s possible with a career in modern manufacturing.”

And . . . Make sure to use the right hashtags to amplify the story of MFG Day: #MFGDay2020 and #CreatorsWanted.

When the history of COVID-19 is written, it will probably confirm that this was the greatest mobilization of manufacturing power since World War II. From food to ventilators to the vaccines themselves, manufacturers are making the products that keep Americans safe, comfortable and hopeful. And they’ve done it all while contending with an economic crash, a raft of new regulations and new safety procedures that had to be implemented at top speed.

These extraordinary demands on manufacturers call for an unprecedented degree of policy support, and the 51�Թ��� is making sure they get it. As of September, the 51�Թ��� has achieved 60 policy wins for manufacturers. We recently talked to 51�Թ��� Senior Vice President of Policy and Government Relations Aric Newhouse about the 51�Թ���’s work over the past six months. Here is a condensed interview.

The plan: The 51�Թ���’s three watchwords throughout the pandemic have been “response, recovery and renewal”—in that order, says Newhouse.

• “The response phase focused on immediate health care needs like PPE; the recovery phase centered around businesses’ reopening needs and support for employees; and our long-term renewal efforts worked to strengthen the overall sector and economy.”
• The first few months were occupied with response and recovery, but by late summer, policymakers started thinking about long-term renewal, Newhouse explains.
• The 51�Թ��� worked out a broad program of reform, which included onshoring and reshoring policies. “That’s actually a conversation we’ve been driving for a long time, because the U.S. should be the best place in the world to manufacture.”

What’s next? Manufacturing continues to struggle in this recovery phase, so policymakers need to do even more. As Newhouse put it, “A bipartisan stimulus package is important, and we hope Congress can come together with the administration to put additional liquidity into the economy, provide a safety net for employees, support the health care sector and create liability protections for businesses.”

How the 51�Թ��� succeeded: Relationships were absolutely key, Newhouse says. “In this environment, with so much incoming and so little time, policymakers turned to people they trusted—and that included the 51�Թ���. This was a real test of the association’s strategy and credibility, and our hard work over the past few years paid off.”

He continued, “At the beginning of the COVID-19 crisis, [51�Թ��� President and CEO] Jay [Timmons] called for an all-hands approach. He challenged the 51�Թ��� to rethink who we are and refocus to ensure we were being as effective as possible to meet the crisis. That’s exactly what we’ve done.”

Companies with COVID-19 outbreaks could be vulnerable to costly lawsuits over workers’ transmission of the virus to their families, .

• Roughly 7% to 9% of COVID-19 deaths in the U.S. are believed to be “take-home infections,” where someone contracted the disease at work and then infects family members at home.
• Praedicat, a firm that evaluates risks for insurance companies, calculates that these types of lawsuits could cost companies as much as $21 billion if the number of U.S. COVID-19 deaths reaches 300,000.

As we explained back in July, a number of COVID-19 liability lawsuits are likely to be brought forward over the next two to five years, and the flood of COVID-19 litigation isn’t expected to begin until spring 2022.

More to the story: The 51�Թ��� prevailed on Senate leaders—and the bipartisan Problem Solvers Caucus—to include key liability protections in draft COVID-19 relief legislation, while its efforts with manufacturing association partners continue to yield advances in many states.