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The new from the ITI Foundation offers strategies to maintain U.S. strength, spur greater innovation and increase domestic production.

U.S. policies spur success: “America still leads in innovation and drug development, in large part due to effective life-science policies, including significant federal investment in life-sciences basic research, robust intellectual property (IP) protections, effective technology transfer policies, investment incentives, and, importantly, drug pricing policies that enable companies to invest in high-risk drug development.”

Recommendations for policymakers: The paper suggests U.S. policymakers should focus on four key areas:

• Maintaining U.S. strength in pricing, tech transfer and intellectual property—and avoiding oppressive drug price control schemes that damage competitiveness;
• Boosting innovation through investment and additional tax incentives that promote research and development;
• Increasing domestic production, including via tax credits and additional funding for key research institutions; and
• Combating foreign mercantilism by making sure that America’s trading partners pay their “fair share” for new drugs, treatments and other medical products.

Innovation in the time of COVID-19: At a time when U.S. pharmaceutical companies are central to the fight against a global pandemic, the ability to innovate successfully is of paramount importance. The U.S. House Committee on Energy and Commerce held a on Tuesday that discussed the issue, titled “Pathway to a Vaccine: Efforts to Develop a Safe, Effective and Accessible COVID-19 Vaccine.”

The 51�Թ��� says: “The research ecosystem we have in the United States supports a global leadership position of biopharmaceutical innovation,” said 51�Թ��� Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling. “Manufacturers are committed to building upon that innovation—but it’s clear that government-led pricing restrictions and importing bad health care policies used by our competitors is not the way forward.”

Related . . . The 51�Թ��� has launched a new six-figure television and digital ad campaign aimed at potential rules to address drug pricing through International Price Indexing and drug importation.

The new bill—an 51�Թ��� priority introduced by Rep. Jackie Walorski (R-IN)—would boost the manufacturing industry’s ability to innovate.

The numbers: U.S. manufacturers spent more than $270 billion in R&D in 2018—or nearly two-thirds of all private-sector R&D.

The bill: Rep. Walorski’s bill would further support manufacturers seeking to invest in critical research and development, including:

• Doubling the traditional R&D tax credit from 20% to 40%;
• Doubling the alternative simplified tax credit from 14% to 28%; and
• Making it easier for small businesses to access the R&D tax credit.

An 51�Թ��� priority: The 51�Թ��� has consistently pushed lawmakers to include R&D tax policies as part of additional COVID-19 legislation—including in a to congressional leadership last week. The 51�Թ���’s also calls for enhancing the R&D tax credit.

A word from the 51�Թ���: “The manufacturing industry is the backbone of American research and development,” said 51�Թ��� Senior Director of Tax Policy David Eiselsberg. “This bill would support jobs, boost innovation and help ensure America’s future competitiveness.”

And speaking of 51�Թ��� tax priorities . . . the Treasury Department sealed a major victory for manufacturers this week by finalizing a rule that will provide relief for manufacturers with high-taxed foreign income.

• The problem: 2017’s tax reform created a new foreign minimum tax, which imposed a minimum 13.125% tax on foreign earnings. Due to the way the tax interacted with existing international rules, manufacturers with high-taxed foreign earnings could be subject to the new minimum tax.
• The solution: Treasury adopted key 51�Թ��� recommendations in its final rule, which creates an elective high-tax exception that would spare manufacturers from paying additional U.S. tax if foreign earnings are subject to a foreign tax rate greater than 18.9%. The rule represents an important step toward implementing the foreign minimum tax according to congressional intent.

Wearing a face covering in public spaces isn’t just about protecting other people—it’s also about protecting America’s reopening, jobs and manufacturing industry.

That’s the message of the 51�Թ���’s recent series of public service videos calling for the widespread use of face coverings in public—something manufacturers have been encouraging for months.

What else is spreading besides ? Viral social posts about facial coverings that aren't grounded in facts.

— The 51�Թ��� (@ShopFloor51�Թ���)

On social media, the videos have reached more than 1.4 million people and have been amplified by high-profile figures, including the U.S. surgeon general, U.S. senators and members of the media.

51�Թ��� leads the way: 51�Թ��� President and CEO Jay Timmons was among the first in the business community to call for social distancing and promote the use of face coverings as essential to reopening the U.S. economy.

• “The one thing that we know right now that you shouldn’t be doing is you shouldn’t be coming in contact with other human beings, outside of your immediate family, your nuclear family. That’s it. That’s all the people are asking,” Timmons in April.
• “It’s really that simple. If you want to be a patriotic American, put on a face covering,” Timmons in May, putting on a face covering himself.

Wearing a face covering is a simple and effective way to combat the spread of . Manufacturers are on the front lines of this crisis, but we all have a part to play in protecting our communities. Thanks for continuing to highlight the importance of masks.

— Jay Timmons (@JayTimmons51�Թ���)

To slow the spread of , we all need to be wearing a face covering in public.

— Jay Timmons (@JayTimmons51�Թ���)

We all must follow the guidance of Jerome Adams and wear face coverings in public. That is why launched a series of ads highlighting the importance of this simple and effective health precaution.

— Jay Timmons (@JayTimmons51�Թ���)

Innovation amid crisis: “Our members are innovating at a rapid pace to meet the needs posed by the pandemic, and our team is responding in kind by addressing one of the most critical challenges we face in keeping our workers safe and the industry and country open,” said Erin Streeter, senior vice president of communications and brand strategy at the 51�Թ���. “We’re doubling down on creativity to see us through this crisis, so you’re seeing new tactics like deploying social media influencers to help, illustrations and designs to break through and a total guerrilla-style campaign that leverages all of our communications assets—51�Թ��� leadership, owned media, earned media and social media—to get the job done.”

#MasksEqualMoney: This week, the 51�Թ��� unveiled a series of illustrations on Instagram that show how essential masks are to keeping the American economy open and protecting frontline workers.

A post shared by (@shopfloornam) on Jul 22, 2020 at 5:18am PDT

TikTok stars join in: To reach young people, social media stars Granny Coy Bundy and Grandpa Charles Mallet lent their platforms to the 51�Թ���.

A post shared by (@shopfloornam) on Jul 10, 2020 at 6:25am PDT

Wearing a face covering in public isn’t about you. It’s about people we care about like .

— The 51�Թ��� (@ShopFloor51�Թ���)

Ripple effect: “We didn’t just dip our toes into this challenge; we dove in given the urgency of the public health and economic crisis,” said Streeter. “We’ve relied on the strength of our creativity to press this forward—and we’re seeing our member companies, partner associations and other business and public health entities helping to amplify our messages. We’re also seeing others follow our lead to collectively create a force multiplier effect that is making a difference.”

This significant victory on an 51�Թ��� priority protects manufacturing employees and investors, the 51�Թ���’s experts say.

The backstory: Investment advisers and fund managers who oversee Americans’ retirement savings have a voice in the policies of the companies in which the fund invests. These fund managers often turn for assistance to proxy advisory firms to recommend votes on company policies—giving these firms enormous influence.

The problem: Proxy advisory firms have never been subjected to SEC oversight, leading to questionable methodologies, errors, conflicts of interest and a lack of transparency in how they make decisions.

The victory: After years of advocacy by the 51�Թ���, the SEC released landmark standards today that do two critical things:

• Proxy advisory firms will be regulated by the SEC, subjecting these previously unregulated firms to critical oversight and bringing needed transparency to their conflicts and methodologies.
• Asset managers will receive guidelines laying out how they can exercise due diligence appropriately if they use proxy advisory firms to ensure they are protecting the best interests of investors.

The bottom line: “This is a big win for manufacturers and for manufacturing workers who have money in pension plans, retirement plans and other investments,” said 51�Թ��� Director of Tax and Domestic Economic Policy . “For years, the 51�Թ��� has fought for accountability and transparency. This new regulatory framework will protect manufacturing workers and ensure that their investments receive the responsible care they deserve.”

What if your next best defense against COVID-19 is a high-tech ring? What if you could get a kit, complete with a pulse oximeter, to monitor your symptoms properly at home? All these devices and more are in development, and at some point on their journey, many of them pass through independent testing laboratory UL. We recently talked to UL Life and Health Sciences Americas General Manager and Global Technical Excellence and Programs Director Deborah Jennings-Conner, who gave us a look into this fascinating frontier of invention.

How to make a ventilator: As we know, plenty of manufacturers have refitted their factories to make medical devices, respirators, ventilators and many other crucial supplies. The process is much more complicated than you might expect, says Jennings-Conner.

• For one thing, most manufacturers are used to replacing parts when they have to. But for medical devices? Not possible. You cannot arbitrarily substitute components; the product has to be “exactly what the regulator approved.”
• So part of the difficulty in converting factories lies in retraining staff, Jennings-Conner warns. That’s why auto manufacturers were such a good fit for ventilator-making—they were already used to stringent quality management requirements.
• Furthermore, manufacturers of medical devices must be able to learn about “any adverse effects, from production to market,” and then report those to the FDA. She points out that most manufacturers aren’t used to that sort of rigor.

New innovations: Jennings-Conner walked us through some of the fabulous new inventions that UL is helping get to market. These are the sorts of things that could transform our medical experiences even after COVID-19, she predicts.

• A UV sanitation room: Made by PurpleSun, this modular paneling system uses ultraviolet light to disinfect entire rooms of equipment—and better yet, it’s mobile. The UL-certified model E300 Modular Paneling System is now in production.
• Wearable devices: These are big news, says Jennings-Conner. Take the Oura ring, which the NBA bought for its players and staff to wear (on a voluntary basis). It’s a powerful piece of technology, which tracks your pulse, heart rate variability, physical activity and temperature. Heart rate variability can be an early indication of sickness, she notes. In fact, a recent study found the Oura ring can predict COVID-19 symptoms up to three days in advance with 90% accuracy.
• At-home medical kits: UL is in discussions with Graftworx, a company that makes devices that monitor patients’ symptoms at home. One such device is the “forgettable smartpatch,” which the wearer can put on and forget about—while it continuously records clinical metrics that can be transmitted to physicians. The pandemic has reordered patient care by forcing many more people to use telemedicine, notes Jennings-Conner—and such devices could make remote medicine a thousand times more powerful.

Inside the factory: If you’re wondering how all this happens amid lockdowns and social distancing, UL’s processes are also subject to innovation. UL has started “witnessing” its clients’ tests over video and auditing their facilities remotely. Oh, and this works in reverse—UL has done testing on behalf of some customers who closed their facilities, installing cameras in its labs so they can watch.

Advice for manufacturers: “Talk to us at the beginning,” says Jennings-Conner. “Once you’re set in your design, it’s hard to go back; that can be cost prohibitive, especially if you’ve already picked your suppliers. Talk to us early, and we can help you navigate the regulatory pathway and support smoother market access.”

Mollie Foerster wanted to become a librarian, but she faced a problem that many high school students do. The degree would be costly, and a librarian’s salary wouldn’t make up for it. Luckily, she found a great alternative: a manufacturing career, made possible by the Federation for Advanced Manufacturing Education (FAME), a cooperative learning program founded by Toyota and overseen by The Manufacturing Institute.

Today, Foerster says proudly, “With my degree, along with my onsite experience, I will always be able to find a job.”

Finding FAME: At her parents’ encouragement, Foerster enrolled in the Southern Indiana FAME chapter after high school. The program trains students of all ages and backgrounds, from recent high school graduates to experienced manufacturing employees looking to advance their careers. FAME students earn a two-year Associate’s Degree while working in their sponsor’s manufacturing facility as an Advanced Manufacturing Technician (AMT). This was exactly what Foerster was looking for.

The benefits: Foerster’s favorite thing about the FAME AMT model was “the integration of school and work.” Working at a Toyota manufacturing plant part-time while also attending school prepared her well for the workforce, she says—much better than school alone would have. Some of the benefits included:

• Mentoring opportunities that paired her with experienced leaders who encouraged her to solve challenging problems and offered help when needed—“They allowed me to learn from my mistakes without actually making mistakes”;
• Fabrication instruction, which helped her improve her skills in a marketable area where she previously had no experience;
• Public speaking practice, which has made her “a better and more confident” presenter—something she’s sure will be helpful every day in her new career.

What’s next? Having graduated from the FAME program, Foerster plans to begin work full-time at Toyota. She also expects to start her bachelor’s degree online through Purdue’s partnership with Vincennes University.

Advice for future FAME students: “Try and absorb as much as you can in the next two years,” says Foerster. “Don’t just memorize the information you need to know for tests, do your best to actually understand everything you’re being taught. At work, take on as many projects as they will give you. Ask your mentor and other team members for help. As long as you work hard and continuously try to improve yourself, you will achieve great things.”

With thousands of new respirators and medical devices in production due to COVID-19, who makes sure they meet safety standards and regulations? Independent testing laboratories provide these needed services. Due to the pandemic, they’re working overtime, helping manufacturers produce equipment for doctors, nurses, other frontline workers and even the rest of us.

We talked to one company, Intertek, about how it’s responding to the new reality. Intertek is one of the largest testers of consumer and industrial products in the world, with a network of more than 1,000 laboratories in over 100 countries. It’s had to adapt to increased demand—and requests for help from companies trying to keep their employees safe.

Meanwhile, the company has also adapted to the restrictions imposed by the lockdowns.

• Curbside pickup: With some customers unable to travel from their facilities—or even their homes—Intertek began sending out vans from its labs to pick up samples from manufacturers across the country.

• Virtual inspections: Some of Intertek’s inspections and audits involve sending employees out to manufacturers’ facilities. As these in-person inspections became more difficult, Intertek created a virtual program called InView, through which inspectors can video chat with customers and inspect products and workspaces remotely.
• Online training: With everyone stuck at home, Intertek has also faced a surge of requests for online and remote training courses. Led by the company’s experts, these courses cover everything from best practices to new standards to product safety pitfalls.

The last word: Intertek’s Vice President of Marketing, North America Derek Silva says, “Intertek has been testing products for more than 100 years to help ensure people’s health, safety and well-being. We recognized early on that our greatest contribution to fighting the pandemic was to keep doing what we do best, only faster and with greater flexibility for manufacturers.”

This is a week of dramatic energy developments—some mostly good, some bad and some mixed. Here’s what manufacturers need to know.

The (mostly) good: The Jordan Cove liquid natural gas terminal in Coos Bay, Oregon, received approval from the Department of Energy on Monday, clearing the way for the West Coast’s first liquefied natural gas terminal capable of exporting low-carbon energy to Asia.

• Why it matters: The project offers increased energy security for the United States while also enabling a shift to cleaner fuels—the kind of modern initiative that will play a key role in climate action.
• A note of caution: The DOE approval isn’t the final word; activists will continue fighting the project in court and try to keep manufacturing progress from being made.

The bad: Even though the project won a 7-2 victory in the Supreme Court just three weeks ago, Dominion Energy and Duke Energy were forced to cancel the Atlantic Coast Pipeline on Sunday.

• Why it matters: The project was intended to energize Mid-Atlantic manufacturing with clean natural gas, but years of court battles and needless permitting delays exhausted it. As 51�Թ��� President and CEO Jay Timmons on Twitter, “All those who depend on reliable sources of American energy are disappointed.”

The bad cont’d: On Monday, a DC court ordered the Dakota Access Pipeline to shut down until yet another additional environmental review is completed, on top of many previous reviews.

• Why it matters: This underground pipeline benefits communities across the Midwest and provides a clean, safe route for oil transportation.

The mixed: The Supreme Court refused to let the Keystone XL project start building again—but at the same time, it did reinstate a critical nationwide permit system for other new energy infrastructure projects.

• What to expect: Activists have already threatened to attack other projects with the same arguments they used against Keystone XL, which could hold up much-needed progress.

The last word: “At a time when we have faced record-breaking unemployment and our country is struggling to get back on her feet, we can’t tell families to wait through more unnecessary delays or until the courts sort things out in a few years,” 51�Թ��� Vice President of Energy and Resources Policy Rachel Jones says. “We have run out of time for political wrangling. Manufacturers need policymakers to cut through the fighting so we can build more, do more and make more.”

The pandemic has brought many people around to that longstanding means of mobility and exercise, the bicycle. And for Kent International, a bicycle manufacturer with facilities in New Jersey and South Carolina, that has meant busy days as it works to meet newfound demand.

We checked in with Chairman and CEO Arnold Kamler, who told us all about the company’s response to high demand and its stringent requirements for worker safety.

The numbers: According to a study by market researcher NPD Group, demand for bicycles (and related items, like helmets) by 75 percent in April, compared to last year. At Kent International, they noticed, Kamler says.

• During the peak demand period in April and May, Kent’s customers were selling between 12,000 and 15,000 bicycles per day, representing more sales than they typically see even in the 10 days before Christmas.

Strained supplies: Some of that demand has led to challenges, Kamler notes. With bicycles flying off the bike racks, Kent has put limits on what its biggest customers can order. A few months ago, one customer put in a request for about a million bicycles, to be shipped in one week—an order generated by algorithms and just not possible to fulfill, says Kamler.  Meanwhile:

• The pandemic has interrupted global supply chains, making it difficult for Kent to get some required parts.
• It has also hampered transportation, preventing Kent from sourcing all the trucks required to deliver its products, particularly in the Los Angeles commercial zone.

Safety procedures: Kamler says the company is putting employees first, by designing rigorous standards to reduce risk and prevent COVID-19 transmission.

• Gloves and masks are mandatory in Kent’s facilities. (Protective eyewear was already a requirement.)
• Temperature monitors throughout the building are used to check for fevers.
• More spacing in the facility allows employees to practice social distancing.
• Testing is available at a local hospital, and Kent offers testing leave so that employees who are concerned they might be sick can get checked—even if they have no symptoms.
• Vigorous tracing ensures Kent can alert any employees who might have been exposed to a sick coworker, so they can get tested, too.

The last word: “We have a job to do: to protect our workers,” says Kamler. “We’re treating employees how we would want to be treated, and making sure they stay safe. We’re staying vigilant—because it doesn’t matter that you were perfect from April to June if you get sloppy in July.”

Dan Mitchell didn’t expect to join the Army, which means he couldn’t have expected to translate his military experience into a career in manufacturing. But thanks to The Manufacturing Institute’s Heroes MAKE America program, that’s where he is now.

The son of Fish and Wildlife Service officials, Mitchell set his heart on the Army while a Boy Scout in high school. As he describes it, he entered West Point as “a bright-eyed, bushy-tailed 17-year-old”—and faced a wake-up call. It wasn’t at all like the movies!

Instead, Mitchell learned that Army life involved doing a great number of small, important things effectively. He spent time in maintenance at industrial facilities, managing safety and operations, and tracking armored units and heavy vehicles. Whether he was keeping his room clean or doing inspections or ensuring the safety of weaponry, he learned that routines were vital. It was a lesson that would serve him well in his next career.

Heroes MAKE America: After eight years in the Army, Mitchell heard about the Heroes MAKE America program from some of the 145 soldiers under his command, and he quickly signed up.

• While the COVID-19 pandemic prevented his Heroes class from touring facilities—“I was excited for the Frito-Lay tour,” he says, “and that’ll stick in my craw for my entire life”—he calls his experience in the program “phenomenal.”
• From general career support, such as help with building a LinkedIn profile and drafting a resume, to the “invaluable” Certified Production Technician course, Mitchell saw Heroes MAKE America as a vital program that offered him critical tools.
• “It was eye-opening to see the level of skilled labor and craftmanship that’s involved in modern American manufacturing,” Mitchell says. “It spoke to me. I had no idea of the width and breadth of opportunities, or how interesting and dynamic and challenging the jobs are.”

A new job: As he begins his new role as a production supervisor at Daikin Applied Americas in Minnesota, Mitchell sees manufacturing as a natural fit. “What I did in the Army doesn’t directly translate to what I’m doing now, but it’s pretty darn close,” he says. “I’ve still got a lot to learn, but I’d be way behind if I hadn’t gotten the Heroes training.”

Words of advice: “For anyone who has been a leader in the Army—as long as you’re willing to learn and put in the work—manufacturing is an obvious choice.”