NAM offers six-point plan to boost manufacturing recovery

Report offers ideas to create jobs and enhance innovation, productivity and competitiveness

01/21/2010


A new report finds that manufacturing fuels economic prosperity but requires pro-growth policies to create jobs and remain globally competitive. The report released by the National Association of Manufacturers and the Council of Manufacturing Associations was written by economists Joel Popkin and Kathryn Kobe, noted experts on issues related to prices, wages, productivity and technology.
"Policymakers must recognize that a vibrant manufacturing sector is important to our nation's economic recovery and long-term growth and prosperity," said Lori Anderson, chair of the CMA and president and CEO of the International Sign Association. "Manufacturing generates more economic activity per dollar of production than any other business sector in the country. Manufacturing industries perform almost two-thirds of the private sector research and development (R&D), driving America's leading edge in innovation and break-through technologies. But manufacturers in America face serious challenges that threaten to undermine their contributions to U.S. prosperity."
"America's capacity to generate wealth and long-term economic growth and jobs depends on the enactment of federal policies that encourage manufacturing innovation, productivity and competitiveness," said NAM President John Engler.
The report offers a number of specific recommendations to create jobs and enhance U.S. manufacturing innovation, productivity and competitiveness including the following:

o Reduce the corporate income tax rate on profits earned from production in the United States to match those of our major trading partners.
o Make the research and development (R&D) tax credit permanent to provide more certainty for private sector decisions to undertake R&D.
o Make the commitments now that will guide private sector decisions on R&D investment for cleaner energy technologies and more varied energy sources.
o Continue to improve our education system to enhance the pool of science, technology, engineering and math (STEM) graduates and support programs of technical training and certification.
o Assure the health of small businesses, for example, by widening the lowest corporate income tax bracket. They are niche suppliers of components and parts for finished goods manufacturers. And they are also important investors in and initiators of high-risk, ground-breaking innovative endeavors.
o Invest in all levels of infrastructure - transportation, communication channels and the energy grid.

"The large U.S. trade deficit is one of the starkest reminders of why a strong, productive and innovative U.S. manufacturing base is essential to our country's economic future," said economist Dr. Joel Popkin. "In 2008, U.S. manufacturers produced and exported $918 billion worth of goods to other countries. Those exports helped pay for more than half of our manufactured imports, but that's not enough to slow our indebtedness to foreign countries."
Dr. Popkin cited the erosion of America's leadership in R&D as another major challenge facing U.S. manufacturers. "The United States is still the leader in the absolute number of dollars spent. Its strong R&D position, however, is being eroded by the impact of the economic downturn and the rapidly expanding R&D programs in other countries. When the data is available, we expect to see the U.S. share of world R&D fell in 2009."
"America's future prosperity depends on policies that accelerate and strengthen manufacturing production here in the United States," said William E. Gaskin, president of the Precision Metalforming Association and former CMA chair. "To remain strong players in a competitive world, U.S. manufacturers need government policies that encourage continued innovation and productivity gains. In particular, we need policies that encourage public and private investments to enhance productivity, such as those in R&D, capital goods, worker training and early education that nurtures math and science proficiency."
The new report, "Manufacturing Resurgence - A Must for U.S. Prosperity," is available at www.nam.org/popkinreport .

 





No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
World-class maintenance: The three keys to success - Deploy people, process and technology; 2016 Lubrication Guide; Why hydraulic systems get hot
Your leaks start here: Take a disciplined approach with your hydraulic system; U.S. presence at Hannover Messe a rousing success
Hannover Messe 2016: Taking hold of the future - Partner Country status spotlights U.S. manufacturing; Honoring manufacturing excellence: The 2015 Product of the Year Winners
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
Improving flowmeter calibration; Selecting flowmeters for natural gas; Case study: Streamlining assembly systems using PC-based control; CLPM: Improving process efficiency, throughput
Putting COPS into context; Designing medium-voltage electrical systems; Planning and designing resilient, efficient data centers; The nine steps of designing generator fuel systems
Warehouse winter comfort: The HTHV solution; Cooling with natural gas; Plastics industry booming

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me