5 Points Manufacturers Want To Hear In President Trump’s State of the Union Address

5 Points Manufacturers Want To Hear In President Trump’s State of the Union Address

 Tonight, I’ll be one of millions of Americans watching President Trump take the national spotlight and lay out his assessment of what the past year has meant for our country, along with his vision for what challenges we must meet in the next.  

As far as manufacturing is concerned, it’s hard to argue that 2017 was anything less than a staggering success. Manufacturers are reporting record-high optimism—nearly 95 percent, according to the latest National Association of Manufacturers’ outlook survey—and growing economic indicators are sparking even more confidence in our industry.

Manufacturing’s success has been so inspiring that President Trump has even invited a manufacturer, Steve Staub from NAM member Staub Manufacturing Solutions, to be his honored guest tonight in the First Lady’s box, along with his business partner and sister, Sandy Keplinger and skilled welder Corey Adams. It’s telling that manufacturers will have thebest seats in the House. 

The prospects for further growth in 2018 are strong—if we continue down that path of prioritizing manufacturing in America. But nothing is guaranteed.

So the President can use his State of the Union address not only to trumpet the fantastic economic growth of the past year, but also to remind the American people of how we achieved this record optimism. We can deliver future victories by using our past accomplishments as a blueprint.

With that in mind, here are five points manufacturers hope to hear from the President.

Manufacturers were right: tax reform is already boosting the economy.

We worked hard in 2017 to make historic tax reform a reality. We promised that a competitive tax code would prompt manufacturers to invest more into their businesses, their workers and their communities. 

Since President Trump signed the bill into law in December, we’ve seen a steady stream of great tax reform news. Businesses are handing out bonusesraising wagesexpanding benefitsincreasing their production capacity and hiring more workers.  

We’re heading in the right direction, and highlighting these stories will remind the nation of the tremendous impact that tax reform has had, and will have, for American workers. 

Congress must address infrastructure this year. 

Tax reform was a historic victory, but there is still much more that can be done to supercharge manufacturing. At the top of that list is a bold investment in our infrastructure. 

Congested roads, crumbling bridges and clogged waterways undercut manufacturers, making it harder to deliver for our customers safely and reliably. Passage of a 21st-century infrastructure bill will pave the way, literally, for manufacturers to keep expanding at a record pace. 

We’ve put forward additional ideas in our Building to Win plan, and we’re pleased that the administration has cited many of these ideas positively. The Trump administration has already taken steps on permitting reform, but updating our nation’s infrastructure requires a long overdue national conversation. President Trump can start that conversation tonight. 

A pro-growth, commonsense approach to regulations is working and it must continue.  

From day one, President Trump has provided substantial regulatory relief, both through executive action and through legislation. Among many examples, he ordered agencies to slash two regulations for every new regulation put in place, and his administration helped speed up the permitting process for manufacturing projects.

Rolling back outdated and overreaching federal rules freed many manufacturers to plan for the future and to grow their businesses. For too long, manufacturers had watched as regulations piled up. It’s a welcome change to have that burden finally reduced.

Going forward, the President and Congress can continue to provide relief to manufacturers and improve the overall regulatory system. As long as Americans recognize the benefits, we can bring people together around this goal. 

We need to grow the modern manufacturing workforce. 

According to research from the Manufacturing Institute and Deloitte, manufacturers will need to fill around 3.5 million jobs by 2025. But as many as 2 million could unfilled because we still need to equip workers with the skills that will be in demand.

In his first year, President Trump took steps to improve workforce development, and we hope he will further outline his vision tonight for the modern manufacturing workforce. One of his goals is expanding apprenticeships in America so that people can get real hands-on experience while also learning the skills needed for rewarding, well-paying manufacturing careers.

Last year, Secretary of Labor Alex Acosta invited me to serve on the Labor Department’s Task Force on Apprenticeship Expansion, and the NAM and the Manufacturing Institute look forward to continuing to work with the administration to turn this vision into a reality, while also raising awareness of the promising opportunities in modern manufacturing.

Manufacturing is the backbone of America. 

Finally, we hope President Trump will continue to make clear that manufacturing is as critical to the story of American exceptionalism itself. Manufacturers make America.

For centuries, manufacturing has offered Americans a chance to make, create and innovate—and build a rewarding life for themselves and their families. The face of manufacturing has changed over the years, but our story has remained the same. The NAM’s State of Manufacturing Tour next month will tell that story and share some of the names and faces of modern manufacturers in America.

With the right combination of good ideas, pro-growth policies and American optimism, manufacturing is poised to lead our country into the 21st century. We’re on the right path! 

Good luck tonight, Mr. President. 

Thank you for this article. Your Five Points are so true, and hopefully they will be included and addressed. However, I also wish that some focus would be on small manufacturers. Your organization included these facts in an article. The vast majority of manufacturing firms in the United States are quite small. In 2015, there were 251,774 firms in the manufacturing sector, with all but 3,813 firms considered to be small (i.e., having fewer than 500 employees). In fact, three-quarters of these firms have fewer than 20 employees. (Source: U.S. Census Bureau, Statistics of U.S. Businesses) Just about every study I have read showed that these manufacturers produce more innovation per employee than large manufacturers. Why is this? Well I know from hands on experience that the really small manufacturer's customers are the really large manufacturers. It is true, many of my manufacturing clients sell to large manufacturers. Companies like Georgia Pacific, Mitsubishi, and Gulfstream are just a few. The reason being it is a smart strategy that large manufacturers use to help with the shortage of workers. The problem is that the really small firms have the same problems, and it will remain a problem until they start thinking outside of the box. It is not the 60’s or 70’s anymore, we raise our children differently, so their perceptions are different. If they are willing to relocate, they have their pick of jobs. I have a client who is an automation manufacturer who truly cares about his employees. Because of this his employees stay. He developed a program where he hires kids in college, (a true apprenticeship program), they start on a part-time basis working the floor with some time in engineering. He spends a lot of time with them, and when they graduate, they start full-time with competitive pay. What is inspiring is that these kids really look up to him, and they are loyal. The problem is that this is expensive, not only dollar wise but time wise which in turn turns into dollar wise. There are programs that help with the cost but honestly many small manufacturers find it to difficult to use. Using the same client as an example, I went locally and federally, (ApprenticeshipUSA), for help, but honestly their contracts were ridiculous. The state organization’s contract was tedious, which is not uncommon with contracts, however, there were two lines in thousands that stated that at anytime they could change the contract and he would have to abide by it. Now come on. The problem with many of these programs is that the people that run them have never owned their own business, so they really do not understand the challenges. I am sorry that the comment was so long, your organization works on behalf of manufacturers in America, thanks for all you do, and I hope that the really small manufacturers benefit as well as the larger manufacturers.

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Thomas Blanchard

Assistant Director of Capital Planning & Project Management - University of Maine System

6 年

Will be watching and just as hopeful!

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Karen S.

Bus. Dev., Facilitating introductions for manufacturing in USA, coast to coast. Personal & Org. Dev. Coach, Cert. Appreciative Inquiry Practitioner

6 年

My expectation: High school learning must be equal to a community college level of learning. Kahn academy and Montesorri expectations added to educational grade school and preschool approach. Parental support and engagement during an improved economy must be a priority. Fix the roof while the sun is shining!! Community colleges and corporations must become attached at the hip to grow generations well equipped to support efficient, prosperous business in USA to lift ALL US citizens out of poverty, erase hunger and increase community connectivity we have lost in our country because of globalization.

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