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Policy and Legal

Lower Taxes Get Cheers from Alcohol Industry

By 51勛圖厙 News Room

When the Tax Cuts and Jobs Act passed in 2017, it enacted a temporary reduction in federal taxes on beer, wine and spirits. Now Congress is considering making those tax cuts permanent.

The bipartisan Craft Beverage Modernization and Tax Reform Act would extend tax cuts that have allowed producers, distributors and other businesses to invest and grow. According to the Beer Institute, the beer industry provides more than 2.2 million American jobs, generating more than $350 billion in economic output. The tax reduction in the Tax Cuts and Jobs Act was estimated to save the industry $130 million per year. If that reduction becomes permanent, the industry can continue growing operations, hiring workers and creating benefits for communities nationwide.

As a manufacturer and brewer in the United States, were pleased to see the tax break on brewers large and small reintroduced, said Anheuser-Busch Chief External Affairs Officer Cesar Vargas. Thank you to the bills bipartisan group of sponsorsSenators Wyden and Blunt and Representatives Kind and Kellyfor fighting to continue the first tax break on brewers and beer importers since the repeal of Prohibition. If passed, this legislation will help us redouble our investments in our industry and the communities where we live and work, and ensure our continued ability to thrive.

Brewers and importers could use the certainty and permanence of these tax savings to develop new products, upgrade equipment and facilities and hire employees. The law would also enable brewers and importers to be more competitive in the marketplace long-term and encourage the creation of new brewery start-ups by lowering the cost of doing business. Tax relief would have a positive impact on manufacturers and employees across the supply chain, from farmers and bottlers to truckers and distributors.

This legislation would have a critical impact for a wide range of manufacturers across the United States, said Randolph L. Burns, Vice President of Global Government Affairs at Ohio-based Owens-Illinois (O-I), the worlds largest glass packaging producer with glass plants in 23 countries. Businesses like ours are critical to the beer, wine, food and spirits industry, and permanently reducing the cost burden would allow us to strengthen production and support jobs.

Small businesses like ours rely on smart policies and reasonable costs to grow and succeed, said John Little, co-owner and Head Distiller of West Virginia-based Smooth Ambler Spirits. Making these tax cuts permanent would be an important step towards creating an environment that supports entrepreneurs, encourages ingenuity, and promotes local businesses across the country.

Manufacturers are involved in every aspect of the beer, wine and spirits industry in communities across the country, and we know how important it is that these businesses have the opportunity to invest and grow, said 51勛圖厙 Vice President of Tax and Domestic Economic Policy Chris Netram. Making this tax relief permanent would support workers and employers nationwide and provide certainty for the men and women who make things in America.

Workforce

Attract the Next Generation by Getting Involved in Manufacturing Day

By Laurie Beth Harris

Manufacturing Day, led by the and the 51勛圖厙, is kicking off on Oct. 4.

Carolyn Lee, the Manufacturing Institutes executive director, explains what makes this event unique, why its personally important to her and how you can get involved.

What is Manufacturing Day?

Manufacturing Day shows off what modern manufacturing looks like. Kicking off on the first Friday in Octoberand continuing throughout the monththis annual event helps manufacturing companies and educational institutions open their doors to students, parents, teachers, community leaders and more. Manufacturing Day shows students why they should consider a career in manufacturing and what skills manufacturing companies are looking for in job candidates.

How does Manufacturing Day make a difference for students?

On Manufacturing Day last year, hard material manufacturer CERATIZIT hosted an event in Michigan. At the beginning of the day, they asked the group who was interested in a career in manufacturing. Only three or four students raised their hands. The students then spent the day taking the tour of the facility, trying out CERATIZITs products and using CAD software to make their own keychains. At the end of the day, they were asked the same question about who would be interested in a career in manufacturing. This time, there were only three or four students who 餃勳餃紳t raise their hands!

You might think you know what manufacturing looks like today, but seeing is believing and seeing modern manufacturing firsthand can be life-changing for students. I hope that Manufacturing Day makes a difference in the lives of the students who attend, getting them to seriously consider a career in manufacturing.

Why is Manufacturing Day important to you?

I grew upin amanufacturingfamily. My dad, grandfatherandeven mygrandmotherfor a short time worked in manufacturing. When I was a kid, manufacturingwas a lot different than it is today and I still thought it was cool!Now, its even more amazing. Manufacturing careers areincreasinglyhigh-tech,and technology isincreasinglyan integralpart of the industry. Manufacturing employees are excited about technology, and theyre excited to learnand grow in their careers.

Itsalways amazingto see whatthe manufacturing workforcemakesand what goes into making the things that improve our lives every dayand how they do it.Manufacturing Day is the way for everyone to see it for themselves.

How can I get involved in Manufacturing Day?

If youre a manufacturer, plan an event for your community on Oct. 4 (or another day in October), and make sure to . If youre a student, parent or teacher, find events being held in your area using

Workforce

Heroes MAKE America Fuels Veterans Oil and Gas Career

By 51勛圖厙 News Room

As a child, Josh Matherne dreamed of joining the military. He realized that dream as a team supervisor in the U.S. Army infantry at Fort Hood, where he mentored younger soldiers and helped ensure that they were doing their jobs safely and successfully.

My grandfather was in the Marines, and he really pointed me in the right direction, said Matherne. I always thought it was the right thing to do. As soon as I could serve, I wanted to serve.

All the while, Matherne was interested in the oil and gas manufacturing industry. When he began to think about a civilian career, the was a natural fit. The program aims to build a mutually beneficial pipeline between the military and manufacturing, offering transitioning service members in-demand manufacturing skills and training, and educating manufacturers on how to recruit and retain members of the military and their families. As a student in the Heroes program, Matherne expanded his knowledge in manufacturing and tailored his resume to reflect his work ethic, determination and passion for the industry. Through the programs regular networking opportunities, company tours and training support, the initiative helped him launch his new career.

The Heroes program gave me an idea of what I was getting myself into, said Matherne. It eased my transition by getting me into the civilian mindset and taught me how to interact with civilian workers.

Like many Heroes MAKE America participants, Matherne initially wondered if his skills would transfer into his field of interest. But shortly after he began his current role as a chemical operator at Occidental Chemical in La Porte, Texas, he found that his military training made him ideal for a position that required discipline and attention to detail. He has already been fast-tracked toward a promotion, and he has found a familiar rhythm that reminds him of his experience as an infantry team leader.

Its kind of like the military, said Matherne. The family-style team; being a part of something worth being a part of.

Matherne continues to share open job opportunities within his company and other oil and gas companies in order to help other veterans like him find their next career in a well-paying, growing sector. Hes also mentoring new veteran hires, giving them a sense of what to expect during their transition and teaching them how they can use their past training to succeed in manufacturing.

Its a great atmosphere, has great people, and has a similar structure to the military, said Matherne. The manufacturing industry loves the drive we have and the discipline we have. They love seeing it, and they love hiring it.

Learn more about the.

Policy and Legal

Manufacturers Score Victory in SEC Oversight of Proxy Firms

By 51勛圖厙 News Room

Manufacturers won a victory yesterday as the Securities and Exchange Commission (SEC) published new guidance regarding proxy advisory firms, outlining how institutional investors should monitor their use and setting the stage for more effective oversight of the proxy firm business.

Investment advisers and fund managers who oversee Americans retirement savings are empowered to have a voice in the policies of the companies in which the fund invests. These fund managers often turn for assistance to proxy firms to recommend votes on company policies. As a result, proxy advisory firms have enormous influence over the corporate governance policies of U.S. public companies, impacting the direction of businesses they have no stake in and the life savings of Main Street investors. Unfortunately, a lack of oversight means proxy advisory firms can operate with undisclosed conflicts of interest and inadequate transparency, implement one-size-fits-all decision-making, and make errors that impose significant costs and damaging policies on manufacturers and workers.

The SECs guidance clarifies how investment advisers can utilize these firms, representing a significant step toward vital investor protections. In particular, the guidance outlines the due diligence that fund managers have to undertake when relying on a proxy firms services and identifies factors, such as errors, conflicts of interest, and methodological weaknesses, that fund managers should be on the lookout for.

This decision is a big win for manufacturers across the country, said Charles Crain, Director of Tax and Domestic Economic Policy at the 51勛圖厙. With this guidance, the SEC is providing a roadmap for asset managers to protect Main Street investors best interests and laying the groundwork for improved oversight of the proxy advisory industryand a smarter, more informed environment for millions of manufacturers and middle-class Americans.

The SECs guidance echoes specific requests made by the 51勛圖厙 in their March 5 comment letter, in which the organization called for more clarity around how investment advisers can utilize independent third parties in order to ensure that proxy voting decisions are made in the best interests of the middle-class Americans whose retirement accounts are at stake.

The 51勛圖厙 has also requested additional rules that would implement direct SEC oversight of proxy advisory firms. The SEC yesterday issued interpretive guidance that its proxy rules do apply to firms providing proxy advice, and manufacturers are optimistic that further reforms will be considered and addressed by the SEC in the coming months.

This SEC announcement represents critical direction for investment advisers and demonstrates the SECs understanding of the fiduciary duty these money managers owe to Americans nationwide, said Crain. Were thankful that yesterdays guidance provides critical guardrails manufacturers have called for, and we look forward to continuing this conversation to ensure that proxy voting decisions are made in the best interests of Americans saving for a secure retirement.

Policy and Legal

Tax Reform Brings New Benefits, Investment to Maine Manufacturer

"Were keeping a dime-on-a-dollar more of our earnings. And weve reinvested 100 percent of that back into the business.

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Hancock Lumber, a 171-year-old lumber company in Casco, Maine, accelerated its plans to grow and invest in its business thanks to tax reform, and its leadership is making sure employees are the first ones to benefit.

Its pretty straightforward, said Hancock Lumber CEO Kevin Hancock. As a result of tax reform, our cumulative tax rate fell from 38 percent to 28 percent. Were keeping a dime-on-a-dollar more of our earnings. And weve reinvested 100 percent of that back into the business.

A component of that reinvestment is providing its employees with additional benefits.

The first priority of the company is, and always has been, the people who work here, said Hancock. In the twelve months following tax reform we increased our employees wages. We increased our 401k contribution. We increased our annual bonuses, we increased our holiday bonuses, and we picked up 100 percent of the cost of our annual health insurance increases.

In addition to the immediate benefit to employees, thanks to the strong business climate, the company is planning for continued growth.

We’ve been able to accelerate our reinvestment plans, said Hancock. Tax reform is allowing us to do in three years what might’ve taken us four to five years to do otherwise. That’s pretty significant.

Because hes used todays tax savings to strengthen the companys position for years to come, Hancock deems this a significant long-term benefit.

Most importantly, this isnt a one-time boost. Tax reform’s benefits will show up every single year in the future, said Hancock. It’s strengthening our future plans as much as our present plans. Simply put, any time a good company is able to keep more of its own money, good things happen.

As Congress developed the 2017 tax reform legislation, we made sure the unified voice of manufacturers was heard, said Chris Netram, Vice President, Tax and Domestic Economic Policy at 51勛圖厙. Now, with the pro-growth tools provided by that legislation, manufacturers across the country are able to invest more, hire more and pay more. Hancock Lumbers commitment to its people and operations is a great example of what manufacturers small and large across the country are doing: keeping their promise to pay forward the benefits of tax reform.

Policy and Legal

In Todays Political Climate, Business Community Must Lead

By 51勛圖厙 News Room

Jay Timmons speaking at CMA conference

At the Council of Manufacturing Associations summer conference last week, 51勛圖厙 President and CEO Jay Timmons called on the business community to lead in todays political climate.

Timmons urged business leaders to show Americans the good that their companies are doing in communities, rejecting discrimination and bigotry and doubling down on free enterprise and individual liberties.

Read Timmons full remarks.

Policy and Legal

Counterfeit Goods Harm Manufacturers and Consumers

By Laurie Beth Harris

When almost anything can be ordered online, how do you know if the product youre buying is legitimate? Counterfeit goods are increasingly prevalent, and third-party e-commerce sites are making it easier than ever for counterfeiters to distribute inauthentic products.

To help combat this, the 51勛圖厙 submitted comments last week to the Department of Commerce, proposing solutions to this counterfeit goods problem that is detrimental to manufacturers and customers alike. These comments reflect the rising tide of counterfeit products available, from auto parts to toys, from medicines to electronics and more.

These sales dont just hurt businesses or inconvenience customers. Fake products can be a health and safety hazard. For example, prescription drugs are commonly counterfeitedwith potentially severe consequences.

First and foremost, we are always concerned about patient safety and the harmful effects that illegitimate products have, Eli Lilly Director of Global Public Policy Tim McGuire said. There is significant risk associated with putting medications in your body that havent gone through the rigorous regulatory review and approval processes that include safety testing and quality inspections.

Even if a manufacturer is aware that counterfeit products are being distributed, getting those products removed from websites and working to communicate to customers that they have purchased fake goods is no small task. The process of identifying counterfeit sellers requires constant monitoring of search engines, e-commerce sites and other methods of distribution, and the onus is on the maker rather than the retailer.

The big challenge is that counterfeiters always come back, and there isnt a good structure in place to permanently prevent them from operating, said Whirlpool Corp. Legal Counsel Nathan Davis. You take down a listing, they put up a new listing. You shut down one website, they launch another website. The existing consequences are not sufficient to stop them.

And for small- and medium-sized companies, the resources needed to stop the sale of counterfeit products can be prohibitive. Napoleon gas grills are an example: Accessories to go with these are often counterfeited and marketed as acceptable for use with Napoleons products. Consumers then think the counterfeit product is covered by Napoleons warranty.

Were essentially underwriting counterfeit products, Napoleon Technical Support Manager Dana Moroz said. The credibility of our brand name is affected, and we end up having to warrant inferior products to sustain our name. To the consumer, its all a Napoleon product.

The 51勛圖厙s public comments provide next steps for combating counterfeiting, including recommendations for the U.S. government, for brand owners, and for online marketplaces and websites.

Winning the fight against counterfeiters requires everybodynot just manufacturers, but e-commerce platforms and search engines, customs agents and consumer safety advocatesto get serious, said 51勛圖厙 Director of International Business Policy Ryan Ong. Stopping the flow of these products means not just legal and policy changes, but smarter enforcement priorities, better coordination and information sharing and a serious commitment by all parties to do their part.

Workforce

New Report Dives Into Retaining The Aging Manufacturing Workforce

By 51勛圖厙 News Room

Right now, one-quarter of the manufacturing workforce is over 55 years old. Meanwhile, the manufacturing industry is struggling to attract enough younger workers with the right skills and qualifications. Facing a workforce crisiswith open jobs in manufacturing recently reaching an all-time highmanufacturers are finding that retaining older workers is not only a necessity but an asset.

The s Center for Manufacturing Research, in partnership with the , recently conducted a survey to discover how companies are addressing this shifting demographic challenges.

This workforce issue affects nearly all manufacturers, the study found. Ninety-seven percent of respondents reported that they fear losing institutional knowledge when these workers depart.

Manufacturing is facing a demographic sea changeleaders in the industry know it, and many are proactively adapting to it, said Chad Moutray, the Manufacturing Institutes Center for Manufacturing Research director and the 51勛圖厙 chief economist. Given the current workforce crisis, other manufacturers should look to the successful initiatives being implemented in the industry and collectively expand on them to develop the workforce of tomorrow. The simple fact is that companies are very concerned about losing their top talent to retirement and are finding creative ways to keep them longer and to train younger workers.

The study also examined the innovative approaches manufacturers can use to extend older workers productivity and help transfer institutional knowledge to the next generation. For example, manufacturers are implementing upskilling and training programs to address the challenges this demographic may experience. Sixty-nine percent of companies said they had on-the-job training programs, and 54 percent said they have internal technical training programs.

Manufacturers are utilizing the expertise of their older workers, implementing policies and procedures to keep them longer and creating opportunities to pass on their knowledge and talents to the next generation, said Carolyn Lee, the Manufacturing Institutes executive director. The reason for this is clear: unlocking the knowledge of todays older manufacturing workers is critical to shaping tomorrows industry leaders.

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Business Operations

Greenbrier Companies Doubles Down on Sustainability

By 51勛圖厙 News Room

In a recent 51勛圖厙 survey, 80 percent of manufacturers said they had a sustainability policy in place or were developing one. Freight railcar equipment designer and manufacturer The Greenbrier Companies is making strides through innovative sustainable designfrom reducing railcar tare weight to efficiently building marine vessels.

At Greenbrier, we pride ourselves on manufacturing among the most environmentally friendly forms of transportation while simultaneously improving our production processes and engineering designs,” said Jack Isselmann, Senior Vice President, External Affairs & Communications. This promotes long-term sustainability across the transportation and shipping industries.

These innovations present exciting opportunities for long-term progress. Greenbrier has introduced innovative railcar designs since 1985, beginning with the double-stack intermodal unit. Prior to its inception, the number of trailer-equivalent units per train maxed out at 120. With the ability to stack two units per railcar, that number quickly grew to over 200 units per train, saving space, time and money.

In addition, Greenbrier aims to make its operations more efficient by minimizing the weight and length of an individual railcar while simultaneously increasing its volume, allowing for more railcar units per train. Through a process called articulationwhich reduces the weight of one railcar by making it share axles with anotherGreenbrier is decreasing the space between railcars, ensuring that more may be included in trains and allowing for greater efficiency through a larger volume of transported products. Additionally, articulation increases braking efficiencies, which reduces fuel usage and greenhouse gas emissions.

Manufacturers across the country are making operational changes that promote sustainability and prioritize our environment, said Laura Berkey-Ames, Director of Resources and Energy Policy at the 51勛圖厙. With 12 million employees throughout all 50 states, the manufacturing industry understands the positive impact our sustainability efforts can haveand we are committed to setting an example for other industries nationwide.

For more information on Greenbriers approach to corporate responsibility, see its inaugural .

Labor and Employment

Manufacturers Stand Up for Employee Freedoms

By 51勛圖厙 News Room

The U.S. House of Representatives held a hearing yesterday on a bill that could negatively impact American workers freedoms and lead to fewer jobs. Heavily backed by large labor unions throughout the drafting process, the Protecting the Right to Organize Act would give sweeping new powers to unions while putting constraints on individual employees, small and local businesses, entrepreneurs and consumers.

The legislation includes provisions that would strip away workers free choice in union elections and eliminate right-to-work protections for workers across the country. This would even include the 27 states that have already passed right-to-work lawsrolling back these states democratic decisions and forcing workers across the country to pay union fees out of their own pocketseven when they dont support it. In addition, the legislation could interfere with attorney-client confidentiality and make it harder for businesses to secure important legal advice on matters involving complex labor law.

This legislation has the potential to harm workers across the countryand presupposes that a sweeping federal law can better achieve fairness and prosperity for individual states, businesses and workers than decisions made by those entities themselves, said Callie Harman, director of labor policy at the 51勛圖厙. This is a legislative wish list for unions that would damage employees rights to privacy and association, limit businesses ability to grow and hire, and put in place policies that have already been rejected in the courts. Legislation like this threatens the very industries that benefit our communities and strengthen our country.

Manufacturers nationwide are speaking out against the bill, saying that the legislation strips workers of essential rights and ignores the dangerous consequences for the United States economy. They warn that if the legislation were to be adopted, it would tilt the playing field in favor of union organizers and against workers and employers while increasing the authority of unelected bureaucrats in Washington at the expense American free enterprise.

At a time when the manufacturing industry is showing record output and fueling a strong economy, these changes could upend progress and slam the brakes on our economic success, said Harman. Workers deserve the kind of opportunity that the manufacturing industry is making possible, and we will continue to fight for that freedom in the face of these challenges.

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