NAM 2014 Annual Report
DELIVERING THE
MANUFACTURING
Manufacturing supports more than 17 million jobs, contributes $2.09 trillion annually to the U.S. economy,
has the largest economic impact of any major sector and accounts for more than three-quarters of all
private-sector research and development. Many policymakers and citizens do not understand the depth and
breadth of this manufacturing success story, and the NAM aggressively campaigned in 2014 to help them
realize our impact—and support our growth.
Capitalizing on the reach of his annual State of Manufacturing address, NAM President and CEO Jay Timmons
first touted the “manufacturing comeback.” He launched a narrative that carried manufacturers through
2014—and into the future.
“Today, I’m pleased to report to you that
manufacturing in America is making a
comeback. That’s a tribute to the hardworking
men and women who produce the goods
and generate the ideas that power the U.S.
economy as well as the global economy.
2014 NAM BOARD LEADERSHIP AND EXECUTIVE COMMITTEE
Chair
Vice Chair
Douglas R. Oberhelman
Chairman and Chief
Executive Officer
Caterpillar Inc.
Gregg M. Sherrill
Chairman and Chief
Executive Officer
Tenneco Inc.
Mary Andringa
Chief Executive Officer
and Chair of the Board
Vermeer Corporation
John W. Conway
Chairman of the Board and
Chief Executive Officer
Crown Holdings, Inc.
David N. Farr
Chairman and Chief Executive Officer
Emerson
Drew Greenblatt
President and Owner
Marlin Steel Wire Products LLC
Thomas W. Handley
President and Chief Operating Officer
Ecolab Inc.
R. David Hoover
Director
Ball Corporation
Collie L. Hutter
President
Click Bond, Inc.
Learn More
NAM President and
Chief Executive Officer
Jay Timmons
Kellie Johnson
President and Chief Executive Officer
ACE Clearwater Enterprises
Michael W. Lamach
Chairman and Chief Executive Officer
Ingersoll-Rand plc
Steven F. Leer
Executive Chairman
Arch Coal, Inc.
W. Kirk Liddell
President and Chief Executive Officer
Irex Corporation
John F. Lundgren
Chairman and Chief Executive Officer
Stanley Black & Decker, Inc.
Anthony J. Maddaluna
Executive Vice President,
President of Pfizer Global Supply
Pfizer Inc.
James S. Metcalf
Chairman, President and
Chief Executive Officer
USG Corporation
Small and Medium
Manufacturers Group
Chair
Al T. Lubrano
President
Materion Technical
Materials
Executive Committee
Members
Osamu Nagata
President and CEO
Toyota Motor Engineering &
Manufacturing North America
Ward J. Timken Jr.
Chairman, Chief Executive Officer
and President
TimkenSteel Corporation
J. Larry Nichols
Executive Chairman
Devon Energy Corporation
Charles Wetherington
President
BTE Technologies, Inc.
Rice Powell
Chairman and Chief Executive Officer
Fresenius Medical Care
Christopher C. Womack
Executive Vice President and
President, External Affairs
Southern Company
Alfred M. Rankin Jr.
Chairman, President and
Chief Executive Officer
Hyster-Yale Materials Handling, Inc.
Timothy M. Ring
Chairman and Chief Executive Officer
C.R. Bard Inc.
Darren Woods
President, ExxonMobil Refining
and Supply Company
Exxon Mobil Corporation
Thomas J. Riordan
President and Chief Executive Officer
Neenah Enterprises, Inc.
Ron Saxton
Executive Vice President
JELD-WEN, Inc.
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“These are manufacturers’ ideas to reignite
that beacon of hope, of optimism and of
opportunity that has always lit our path
forward. These are our ideas to guarantee
American Exceptionalism.
9
HEADLINING MANUFACTURING’S
COMEBACK
NAM President and CEO Jay Timmons promoted our
industry’s gains in an unprecedented number of speaking
engagements across the United States. From Houston to
Seattle, Charlotte to Milwaukee, the message was clear:
“The shale gas boom is fueling the manufacturing comeback,” Timmons
said at a Jones Day regional energy conference.
Manufacturing isn’t just making a comeback.
Manufacturing in America is back.
INFLUENCING KEY
WASHINGTON OFFICIALS
In hundreds of meetings with members of Congress and
key Administration officials in 2014, the NAM and the
manufacturing army advocated policies and secured legislative
and regulatory victories that made our industry stronger. But
policymakers also rely on the NAM for our expertise as the lead
advocate for manufacturers and as the conduit to a more than
$2 trillion industry. These congressional and Administration
leaders sought out our board meetings, executive committee
meetings and policy committee meetings as critical forums to
connect with manufacturers—and connect they did. The NAM
provided premier discussions for these high-level meetings of
the minds.
“It’s a long list, but let’s be clear—for America to maintain
our mantle of economic leadership, we need policies at the
federal level that help manufacturers seize the opportunities
before us, not policies that hold us back,” Timmons said at The
Chicago Council on Global Affairs. “Public policy matters, and
manufacturers—with their outsized impact on the economy—
have a responsibility to ensure policymakers hear our voices.”
NAM Board Chair and Caterpillar Chairman and CEO Doug Oberhelman and
the Caterpillar team cohosted the Smart Manufacturing Summit, providing an
opportunity for the forces behind the manufacturing revival to connect.
11
BRINGING REAL LEADERS TOGETHER
Through our first-ever Leadership Engagement Series, the NAM
is serving as a catalyst for change, advancing the manufacturing
agenda—your agenda. We brought leaders together—throughout
the country—to craft solutions and break the gridlock in
Washington. The series opened a dialogue with CEOs of the
top manufacturing companies in the world today. Through
this dialogue, we challenged more executives—hundreds of
executives—to get involved in the political process personally
and teach Washington a thing or two.
The panels offered manufacturers exclusive access to our
industry’s most innovative minds. The NAM harnessed the insight
and experience of our Board of Directors to convince their peers
all throughout the supply chain about the importance of reaching
out to their representatives—to not give in to, or give up on,
Washington, but to move it in the direction that we need. And
Washington is already paying attention, thanks to the NAM’s
efforts to publicize the Leadership Engagement Series in mustread Beltway publications like Politico and in newspaper op-eds
highlighting our thought leadership across the country.
In Chicago: (l-r) NAM Board Chair and Caterpillar Chairman and CEO Doug Oberhelman,
NAM Board Vice Chair and Tenneco Chairman and CEO Gregg Sherrill, Emerson Chairman
and CEO David Farr and NAM Small and Medium Manufacturers Group Vice Chair and
Neenah Enterprises President and CEO Tom Riordan
EXPANDING THE
MANUFACTURING ARMY
The Leadership Engagement Series
reached
LEADERSHIP ENGAGEMENT
SERIES: NATIONWIDE REACH
Seattle
Milwaukee
Detroit
Pella
Cleveland
Chicago
New York
Pittsburgh
Charlotte
In Detroit: Toyota Motor Engineering & Manufacturing North America President
and CEO Osamu Nagata
Houston
manufacturing executives
In New York: (l-r) C.R. Bard Chairman and CEO Timothy Ring, ACE Clearwater Enterprises
President and CEO Kellie Johnson, American Air Liquide Holdings Chairman and CEO
Michael Graff, Stanley Black & Decker Chairman and CEO John Lundgren and NAM
President and CEO Jay Timmons
Forums were held in 10 cities
13
BUILDING ALLIANCES
In 2014, our Council of Manufacturing Associations (CMA),
State Associations Group (SAG) and Allied Associations
Group members expanded the scope, reach and influence
of the NAM. With record attendance at NAM events and
programs, involvement in NAM issue advocacy campaigns
and participation in Manufacturers’ Center for Legal Action
cases, the NAM grew manufacturing alliances that moved our
agenda forward. CMAs, SAGs and Allieds played a central role
in the NAM’s fight to reauthorize the U.S. Export-Import Bank,
curtail the Environmental Protection Agency’s strict new ozone
standard and more.
A record-breaking
number of SAG members
gathered in 2014 in
Chicago, Illinois, for their
annual meeting. SAG and
Allied members engaged
with the NAM more than
ever in 2014, helping
to raise the profile of
manufacturing in every
state and Puerto Rico.
27
On a regular basis, the NAM gathers communications representatives
from CMAs to discuss strategies that can drive the public’s attention
to our industry and enhance our advocacy efforts.
The NAM empowered
our allies through
on-site visits, video
greetings, conference
calls, fly-in briefings
and member briefings
to 33 SAG and Allied
members, an 80
percent increase from
the previous year.
80
Increase
Increase in Winter
Leadership Conference
attendance over 2013
CMA leadership conferences in 2014 connected
manufacturing executives from a diverse range of
industry sectors.
26
Increase in Summer
Leadership Conference
attendance over 2013
2.9
Increase in CMA
membership over 2013
14
Increase in total CMA
revenue over 2013
15
REACHING THE
NEXT GENERATION
OF MANUFACTURERS
Millennials might be surprised by what they find inside a
21st-century manufacturing facility: high-tech shop floors,
cutting-edge technology and high-paying, highly satisfying
careers. From delivering his State of Manufacturing address
to headlining Iowa’s Advanced Manufacturing Conference,
NAM President and CEO Jay Timmons took the message of
modern manufacturing on the road in 2014. NAM initiatives
are transforming outdated perceptions, closing the skills
gap and leading science, technology, engineering and
mathematics (STEM) education initiatives to ensure current
and future workers have the right skills needed to sustain the
manufacturing comeback into the future.
EDUCATING THE PUBLIC
In front of the classroom and on the stage before
hundreds of students, Timmons inspired millennials to
take advantage of the opportunities that manufacturing
offers. “There’s no shortage of different paths within
manufacturing—from satellite technology to breakthroughs
in lifesaving medical devices or energy advances that
could power the world,” he said as the featured lecturer in
the University of Kansas’ Anderson W. Chandler Lecture
Series. “In manufacturing, you have the chance to invent,
to create and to bring innovation to the lives of those in
need. It’s a bright future with expansive opportunity.”
On October 3,
manufacturers in all 50
states opened their doors
to the public for the thirdannual Manufacturing
Day. More than 1,635
events, an 800 percent increase since
the inaugural Manufacturing Day in 2012,
demonstrated the power and vitality of
manufacturing to the public. By inviting
students and members of the community
into their facilities, manufacturers showcased
the dynamic, highly skilled jobs that our
industry offers.
In 2014, The Manufacturing Institute,
the NAM’s 501(c)(3) arm, continued to lead
efforts to address workforce development
issues. The Institute tackled perception
issues through the Dream It. Do It. program,
recruited highly skilled veterans
through the Get Skills to Work
program and recognized
women in our industry through
the STEP Awards.
17
CULTIVATING
MANUFACTURING LEADERS
As Washington becomes more complicated,
the voice of manufacturing leaders at all
levels—not just CEOs—is absolutely critical to
move the needle on our priorities. To that end,
the NAM hosted its inaugural Manufacturing
Executive Leadership Program in 2014.
This program, held jointly with the Center for
Creative Leadership, gave top manufacturing
executives from across the country an insider’s
training on how Washington works and
tools to advance their legislative agendas.
The NAM’s policy and government relations,
external relations and communications teams,
together with widely respected political leaders,
highly influential policymakers and formidable
advocacy experts, convened for three days
of educational sessions. These sessions
provide participants with insights to ensure
that when manufacturing executives engage
in the public policy arena, they will serve as
effective advocates for manufacturing in their
communities and sectors.
RECOGNIZING
LEGISLATIVE EXCELLENCE
The 2014 NAM Award for Manufacturing Legislative
Excellence did more than recognize the 270-plus members
of Congress from both sides of the aisle who consistently
supported the manufacturing community by maintaining a
voting record of 70 percent or higher. The award informed
voters about the priorities at stake in the elections. The NAM
advanced these priorities at congressional dialogues across
the country, connecting key lawmakers with manufacturers in
their districts.
In the 113th Congress, then-Rep. Cory Gardner (R-CO-4) (second from right)
accepts the NAM Award for Manufacturing Legislative Excellence from Golden
Aluminum, Inc. and the Colorado Association of Commerce & Industry (CACI), an
NAM SAG member. (l-r) Dave Petroy, Director, Marketing & Sustainability, Golden
Aluminum, Inc.; Jeff Frim, President & CEO, Golden Aluminum, Inc.; Chuck Berry,
President, CACI; Rep. Gardner; and Jerry Reed, Vice President, Human Resources,
Golden Aluminum, Inc. Photo by Evan Semón.
70
Voting record required to be
eligible for the award
270
Number of members of
Congress recognized with the award
19
“Manufacturing has always been
important to America’s growth. It brought
our country to a position of greatness. It
provided a path to economic stability for
millions of its citizens. Its output resulted
in higher standards of living and better
relations with people and countries from
across the world.
21
INCREASING INTERNATIONAL
ENGAGEMENT
CONVENING THE
MANUFACTURING ARMY
International leaders value the input and perspective of the
NAM because they recognize the association as the voice
of manufacturing in the United States. And so, the NAM is
becoming a key player on the international stage. Our goal:
advance policies that ensure manufacturers in the United
States thrive in the global marketplace.
In 2014, at the invitation of Sen. Tim Kaine (D-VA), NAM
President and CEO Jay Timmons attended the U.S.-Spain
Council Forum 2014, a gathering of Spanish and U.S.
governmental and business leaders, to discuss our vital
relationship and the importance of the Transatlantic Trade
and Investment Partnership (T-TIP). Timmons traveled
as part of the U.S. delegation; his itinerary included a
meeting with the king of Spain and a high-level forum—
with U.S. Trade Representative Michael Froman, among
others—to advocate an ambitious and comprehensive
T-TIP agreement. Beyond the summit, the NAM reached
an additional eight countries (Canada, Germany, the
United Kingdom, France, Switzerland, Belgium, Italy and
Ireland), engaging in critical discussions to expand market
opportunities for manufacturers in the United States.
In Belgium and Germany,
Timmons and NAM Vice
President of International
Economic Affairs
Linda Dempsey met
with U.S. diplomats
and European political
and business leaders to
advance manufacturing
priorities. As the
capstone of the trip,
Timmons delivered
remarks at Hannover Messe, the world’s largest industrial
trade fair. From regulatory cooperation and market access to
intellectual property, investment and cross-border data flows, he
spoke extensively about issues to tackle in the T-TIP negotiations.
“The United States and Europe have a vital opportunity to
strengthen our international economic policies and to broaden
and deepen the world’s largest trade and investment partnership,”
Timmons said.
The 2014 Manufacturing Summit brought upward of 500
manufacturers to Washington, D.C. Manufacturers participated
in more than 220 scheduled congressional lobbying visits,
attended a congressional reception with members of Congress
and congressional staff and heard addresses by Vice President
Joe Biden, Sen. Chris Coons (D-DE) and Sen. Mitch McConnell
(R-KY), the majority leader in the 114th Congress.
The NAM’s National Public Affairs
Steering Committee (NPASC), a
group of 150 leading corporate
public affairs and government
relations executives from the
NAM’s largest member companies,
bolsters our grassroots efforts
and offers insight on our public
policy positions and guidance on
our lobbying strategy. The NPASC
convened three times in 2014: in
the spring, in the fall and following
the election.
23
MAKING THE
MANUFACTURING VOTE
COUNT
With more than 17 million voters whose jobs
depend on manufacturing, manufacturers can
change election outcomes and elect candidates
who know how to create jobs, lead and govern.
And we did.
Well ahead of Election Day, the NAM expanded
our programs at every level to help break the
gridlock and turn out manufacturing voters.
We built a broad coalition of local, state and
national partners and allies to host employee
voter registration drives. We spearheaded getout-the-vote efforts during the primary season,
and we sent election teams armed with the
NAM’s voter guide and other proprietary election
materials to key states, including Colorado,
Iowa, Kentucky and North Carolina, in the fall.
These teams directly delivered NAM member
companies the resources they needed to
engage and educate their employees to help
them make informed decisions at the ballot box.
Manufacturing
How-To Guide
Underscoring these efforts: The NAM
Election Center, the one-stop shop for
customized election information, for how-to
guides on building effective and legally sound
get-out-the-vote strategies and for priority
issue education.
Far from marking an end to the NAM’s
efforts, Election Day only pushed us to work
harder for the remainder of 2014 and beyond.
The manufacturing electorate supported
candidates who are committed to increasing
growth, investment and opportunity. The
NAM is already ensuring that Congress
follows up on those commitments. As we
gear up to turn the corner to the 2016
presidential election, we are working to
create a new day in government—a rising
sun on an America that works again.
Building a
Get Out the Vote
Campaign
NAM staff members monitor the 2014 midterm election results late into the evening as they report out the
outcomes to NAM member companies via e-mail.
In 2014, the NAM’s federal political
action committee (NAM-PAC) hosted
22 events that raised more than
Your Voice, Your Vote.
Be a Manufacturing Voter.
www.nam.org/ElectionCenter
#MFGvoter
$350,000
to support pro-manufacturing allies
in Congress.
The NAM’s Post-Election Briefing examined the impact of the manufacturing vote and featured insights from
The Cook Political Report, as well as (l-r) NAM Senior Vice President of External Relations Ned Monroe, former
Sen. Blanche Lincoln (D-AR) and former Gov. and Sen. George Allen (R-VA).
25
“The NAM has evolved, innovated
and changed for the times—just
like the storied companies of our
association.
27
THE CENTER FOCUS
14 54
ADVANCING LITIGATION:
THE NEXT GENERATION OF
ADVOCACY
In its first full year, the Manufacturers’ Center for
Legal Action established the infrastructure—and set
the legal strategy—to sustain the manufacturing
comeback. As congressional gridlock and aggressive
regulatory overreach grew in 2014, the Center took
the manufacturing agenda to the courts, the next
generation of advocacy.
The Center launched a new General Counsel
Steering Committee and six Issue Advisory Groups,
giving NAM member companies a strategic voice in
what litigation to tackle. This critical input not only
enhanced and broadened the NAM’s relationships
with member companies, but also allowed the NAM
to better represent our members’ interests before
administrative agencies and the courts. The Center
formed additional coalitions within the manufacturing
legal community, building support for shared legal
priorities among member companies and key Council
of Manufacturing Associations and State
Associations Group allies.
With this infrastructure securely in place, the Center
doubled our litigation filings in 2014—and achieved
major court wins on environmental issues, conflict
minerals and labor. The Center also broadened the
issues on which the NAM actively litigates—and the
forums in which it does so. In 2014, the Center
engaged on a trade secrets matter before the
European Court of Justice, filed a first-ever amicus
brief in a World Trade Organization matter and joined
the food manufacturing industry in a challenge to
Vermont’s first-in-the-nation GMO labeling law.
In every way over the past year, the Center advanced
paths for manufacturers to shape the regulatory
environment and change the law.
Meet the team:
Quentin Riegel, NAM
Vice President and
Deputy General
Counsel; Patrick
Forrest, NAM Vice
President and Deputy
General Counsel; and
Linda Kelly, NAM
Senior Vice President
and General Counsel
Number of cases in
which the NAM was a
party
Number of cases in which
the NAM weighed in as
amicus curiae
FIGHTING FOR A FAIR WORKPLACE
The Center’s victory against the National Labor Relations Board’s (NLRB)
poster rule solidified the NAM’s fight against government overreach in
the workplace. We are taking that fight to the next level in our ongoing
challenge to the NLRB’s “ambush elections” rule. Manufacturers—both
employers and employees—need a fair workplace to thrive. Through
legal action, the NAM is determined to ensure a balanced playing field
and strong employer–employee relations.
ISSUE ADVISORY GROUPS connect in-house manufacturing
counsel at NAM member companies with the Center to identify,
prioritize and vet cases for legal engagement. The groups are organized
around six substantive focus areas:
Environment
and Energy
Labor and
Employment
Product and
Civil Liability
Intellectual
Property
Corporate Governance
and Shareholder
Liability
International
Trade
©
PROTECTING YOUR SPEECH
The Center’s work to protect free speech will continue
in 2015 with its ongoing case against the Department
of Labor’s Office of Federal Contract Compliance Programs, the challenge
to the Securities and Exchange Commission’s conflict minerals rule and
the Vermont food labeling case.
29
“American manufacturing has done its
part to get Americans back to work and
reclaim our standing as the world’s finest
manufacturing economy. Now it’s up to
our government to help pave the way for
the future, through enlightened policies
that will help drive sustained growth in
our most critical industries.
31
FUELING THE MANUFACTURING COMEBACK:
AN “ALL-OF-THE-ABOVE” ENERGY POLICY
IT’S HERE: THE MOST EXPENSIVE
REGULATION OF ALL TIME
AT A GLANCE: THE NAM’S KEYSTONE XL
ADVOCACY
The NAM continued to champion the critical need for “all-of-the-above”
energy strategies that protect our nation’s inherent advantages in energy
resources.
From the Speaker of the House of
Representatives to almost every
major news outlet in America, the
NAM’s message opposing the EPA’s
proposed ozone standard carried
far and wide. The NAM defined the
message and set the tone about
how much the unforgiving new
ozone standard could raise energy
prices, hobble economic growth
and hurt job creation. Back in July,
long before the EPA issued the standard in November,
an NAM-commissioned study showed it amounted to the
most expensive regulation of all time. Timmons presented
these facts in an August Wall Street Journal op-ed.
And, after the study’s release, the NAM aggressively
responded in every forum possible, explaining how the
new policies would impose
great costs on the job-creating
community while yielding little
commensurate environmental
benefit. Collectively, the NAM’s
efforts reached an audience of
240 million through 125 different publications, websites
and other media outlets. At the same time, the NAM’s
energy team toured the country, forging partnerships with
allies in key states to counter the standard.
Video: Manufacturers and Labor Agree: Keystone XL Needs to Be Built
How did the NAM do it? By demonstrating real leadership.
The NAM led powerful coalitions like the Partnership for a Better Energy
Future (PBEF), which opposed the Obama Administration’s burdensome
greenhouse gas regulatory agenda. Under the NAM’s direction, PBEF
flooded the Environmental Protection
Agency (EPA) with more than 1 million
comments from manufacturers across
the country. Policymakers simply could
not ignore PBEF’s impact. Nor could they ignore PBEF’s polling data
showing just how disconnected the EPA is from the everyday concerns of
voters from coast to coast.
NAM President and CEO Jay Timmons addresses the Kentucky Association of
Manufacturers Energy Conference.
The Manufacturers’ Center for Legal Action led powerful coalitions
of its own—and got results. The U.S. Supreme Court handed
manufacturers a decisive victory against the EPA’s onerous greenhouse
gas permitting requirements imposed on millions of manufacturing
facilities, farms, energy providers and other stationary sources. If left
in place, these burdensome requirements would have harmed virtually
every aspect of our economy.
Our work on greenhouse gases was just the beginning. From
advocating sensible ozone regulations to the Keystone XL pipeline, the
NAM showed decisive leadership on energy through bold actions and
demonstrable results.
Learn More
A Politico-sponsored energy panel brought together industry leaders,
including Ross Eisenberg, NAM Vice President of Energy and Resources
Policy, to discuss implications for Congress and the Obama Administration
in 2014.
Video: Five Simple Reasons to Approve Keystone XL
33
The NAM partnered with Ex-Im
allies to sponsor a Capitol Hill
policy briefing, allowing about
70 congressional offices to hear
directly from small businesses
that use the Ex-Im Bank—and
how it supports exports, job
growth and competitiveness.
In Pittsburgh, NAM President and CEO Jay Timmons joined Westinghouse
Electric Company President and CEO Danny Roderick and Pierre Paul
Oneid of Holtec International, Inc., a Westinghouse supplier, to speak with
reporters about the Ex-Im Bank’s impact on their businesses.
EXPORTING THROUGH EX-IM
Through the NAM’s leadership of the Exporters for Ex-Im
Coalition, countless meetings with key lawmakers and
Administration officials and the compelling firsthand
accounts of manufacturers who depend on the Export-Import
(Ex-Im) Bank for their very survival, we helped transform an
unfounded, disparaging narrative that threatened jobs in
the United States and global competitiveness. This shortterm extension of the Ex-Im Bank through June 30, 2015,
is an important victory—but it isn’t enough. Manufacturers
need a long-term reauthorization of the Ex-Im Bank to drive
economic growth.
Learn More
64,263
Number of pro-Ex-Im letters
sent to Congress through
the coalition’s website
The NAM and The Weekly Standard engaged Sen. Mark Warner (D-VA),
co-chair of the Senate India Caucus, and top policy minds on ways to
improve U.S.–India trade relations.
PAVING THE WAY FOR FAIR TRADE
In a Wall Street Journal Asia op-ed, NAM President and CEO Jay
Timmons called on India to pave the way for the Trade Facilitation
Agreement, a deal that could contribute an estimated $1 trillion
to the world economy. The Alliance for Fair Trade with India (AFTI)
grew even stronger under its second year of NAM leadership. The
NAM and AFTI urged President Obama to press Prime Minister
Narendra Modi to remove trade and investment barriers and to
strengthen intellectual property rights when the two leaders met for
the first time in September. The Obama Administration heeded our
calls, confirming that the United States would discuss trade issues
with Prime Minister Modi during his White House meetings. During
Prime Minister Modi’s visit to New York, NAM leaders expressed
manufacturers’ concerns directly to him. And we achieved
success. In a significant win for the NAM, the United States and
India announced an end to India’s blockage of the implementation
of the Trade Facilitation Agreement.
Learn More
The fall meeting of the NAM International Trade Policy Committee
included Bruce Andrews, Deputy Secretary of Commerce, and
Catherine Novelli, Under Secretary of State for Economic Growth,
Energy and the Environment.
MEMBERFOCUS
The National Association of Manufacturers
January 2014
TRADE PROMOTION AUTHORITY
The January 2014
Member Focus cover story
featured a testimonial
from an Illinois-based
manufacturer that is
leading the charge to
restore Trade Promotion
Authority (TPA), a
joint congressional–
Administration framework
for negotiating and
implementing trade
agreements that expired
in 2007.
ECONOMIC ANALYSIS • VIEWS YOU CAN USE • SAG PROFILE • CAPITOL CONNECTION • MANUFACTURING SCENE
35
COUNTERING GOVERNMENT
OVERREACH IN THE WORKPLACE
EDUCATING POLICYMAKERS ON TRADE
Manufacturers need the right policies in place to reach the 95
percent of consumers who live outside U.S. borders. These
policies include the following:
Trade Promotion Authority (TPA) that facilitates the
development and approval of trade agreements
A Trans-Pacific Partnership (TPP) and Transatlantic
Trade and Investment Partnership (T-TIP) that eliminate
foreign trade barriers and create new markets for U.S.
products
Intellectual property protections that safeguard the
innovation essential to manufacturing in the United
States
Led by NAM Vice President of International Economic Affairs Linda Dempsey,
the NAM brought member companies face-to-face with freshmen members
of the House of Representatives. Their goal: explain why TPA matters to the
manufacturing comeback.
In 2014, the NAM aggressively countered these actions. We
built on the success of the Manufacturers’ Center for Legal
Action’s case against the National Labor Relations Board’s
(NLRB) unlawful poster rule. And we took on perhaps
the biggest offender of bad ideas: the NLRB’s “ambush
elections” rule.
A Miscellaneous Tariff Bill (MTB) that ends higher taxes
on essential manufacturing inputs
At trade events across the country with member companies and
members of Congress, the NAM explained our priorities and
laid the foundation for open markets, a level playing field and
increased competitiveness in a global marketplace.
Leading the Alliance for Northwest Jobs & Exports,
the NAM assembled the largest business and labor
partnership in Washington State history to fight to
protect energy exports and trade growth in the Pacific Northwest. Expanding coal
export facilities will create close to 12,000 new jobs.
Learn More
The NAM recognizes that strong employer–employee
relations are the bedrock of manufacturing in the United
States. Without the thousands of men and women behind
everything from medical devices to automotive parts, soft
drinks to satellite technology and more, the manufacturing
comeback would grind to a halt. The federal government
must be a trusted partner for both employers and
employees. By stacking the deck against employers, the
government erodes trust and damages the credibility of our
nation’s job creators.
THE NLRB’S “AMBUSH ELECTIONS” RULE:
IN FOCUS
The rule changes longstanding
labor policy by shortening the
time frame for businesses to hold
union elections to as little as 14
days, even though more than 90
percent of elections are held within
56 days. A shorter time frame
robs employees of their ability to
make an informed decision on
union representation and hampers an employer’s ability to
prepare adequately for an election. The NLRB made the
rule even more egregious by requiring employers to hand
over the personal e-mails, private phone numbers, home
addresses and shift times of their employees to union
organizers—infringing on the privacy rights of employees
and the free speech rights of employers.
With the Center at the helm, we laid the groundwork for
an ongoing court challenge with allies in the business
community. We intend to once again be successful in the
courts—and to stop this rule from taking effect.
Chris Moore, NAM Senior Director of International Business Policy, testified
before a House Judiciary subcommittee hearing on trade secrets. These
vital assets increasingly come under threat in today’s connected and
mobile global economy, costing businesses in this country as much as
$500 billion annually, according to one estimate.
Learn More
37
TACKLING THE $2 TRILLION REGULATORY BURDEN
Complex, inconsistent and duplicative regulations hinder manufacturers in
the United States, forcing them to spend unnecessary sums of money on
compliance procedures, data collection and legal costs while making it nearly
impossible to plan for, and invest in, the future.
At the NAM, we are fighting back with an all-out effort. We are challenging
regulatory overreach in the courts. We are marshaling allies in all sectors of
business to push for action. And we are finding ways to build consensus
among Republicans and Democrats on the urgent need for regulatory reform
with facts and figures that drive headlines and produce results.
Regulatory Compliance Costs per Employee per
Year for Manufacturers, 2012 (in 2014 Dollars)
$19,564
Average of All
Manufacturers*
$34,671
Small Manufacturers
(< 50 Employees)
$18,243
Medium Manufacturers
$13,750
Large Manufacturers
(100+ Employees)
$2.028 TRILLION. That’s how much complying
with federal regulations costs the economy in lost
growth annually. “Manufacturers are hit hardest,”
NAM President and CEO Jay Timmons said on
CNBC. The NAM’s study disclosed the regulatory
burden—and the extent to which manufacturers bear
a disproportionate share of it.
Before we even released the study, our opponents
tried to discredit it, knowing how devastating it
would be to their false arguments. Thanks to our
rapid response strategy, they failed. Since that time,
media reports have continuously relied on the study
as a source for sound data. Our extensive rollout
campaign included testimonial videos from NAM
members, media outreach and digital ads.
NAM Chief Economist Chad Moutray
persuasively made the case for
regulatory reform before the House
Small Business Committee.
Learn More
House Majority Leader Kevin McCarthy (R-CA)
speaks at the launch of the NAM’s partnership
with the National Federation of Independent
Business—a key alliance on long-overdue federal
regulatory reforms.
210 200
MILLION
Total Potential
Audience Reached
Number of Media
Outlet Appearances
INVESTING IN INFRASTRUCTURE:
A LEGISLATIVE WIN
Despite pronounced congressional gridlock, the
NAM secured a crucial, and rare, legislative victory:
the Water Resources Reform and Development Act,
signed into law in June. It marked the NAM’s pioneering
commitment to rebuilding and modernizing our nation’s
crumbling infrastructure, including roads, bridges, utilities,
pipelines, transmission lines and transportation labs.
With a groundbreaking report on the costs/benefits of
infrastructure funding, the NAM proved that targeted,
long-term investment from the public and private sectors
is needed to increase manufacturing competitiveness.
And our report made leading headlines in The Wall
Street Journal and other newspapers across the country.
The findings armed our members with another tool to
educate their local, state and federal representatives
about this vitally important issue. Today, policymakers
know that a modernized infrastructure translates into a
bright future for manufacturing.
As NAM President and CEO Jay Timmons testified
before the Senate Environment and Public Works
Committee, “For manufacturers, infrastructure is a
competitiveness issue.” America has a fundamental
choice: whether our nation is to be yesterday’s story or
tomorrow’s. At the NAM, we’re deciding to be authors of
our future.
Learn More
Infrastructure Week
presented the NAM with
a platform to call for
robust investment—
and we did so at panels
around Washington and
at our headquarters.
Robyn Boerstling,
NAM Director of
Transportation
and Infrastructure
Policy, moderated
the Transportation
Infrastructure Summit
at the U.S. Chamber of
Commerce.
At a roundtable with
House highway and
transit lawmakers, NAM
Senior Vice President of
Policy and Government
Relations Aric Newhouse
called attention to what
manufacturers need:
a multiyear surface
transportation bill that
includes a long-term
funding solution for the
Highway Trust Fund.
39
An NAM Shopfloor brought together
manufacturing executives and
congressional staff to examine the link
between investment incentives and the
health, growth and competitiveness of our
industry in the United States. NAM Chief
Economist Chad Moutray and NAM Senior
Director of Tax Policy Carolyn Lee guided
the discussion.
REFORMING OUR NATION’S TAX
CODE AND ECONOMIC POLICIES
“The inability to achieve comprehensive tax
reform represents the single biggest failure
of leadership during a time of already historic
dysfunction in Washington. And manufacturers
are paying the price.”
– NAM President and CEO Jay Timmons
Until tax reform happens, manufacturers will
continue to toil under the highest corporate tax
rate in the world. To improve our competitiveness,
the United States must overhaul its tax system,
including for the two-thirds of manufacturers
organized as “flow-throughs” and pay taxes at
individual rates. In 2014, the NAM continually made
the case to the Obama Administration, to lawmakers
and to the public for a comprehensive fix. What’s
needed is a serious focus on comprehensive tax
reform.
As a leader of the Coalition for Derivatives
End-Users, the NAM guides more than 270
companies and business associations in
seeking strong, effective and fair regulation
of derivatives markets. NAM Director of
Tax Policy Christina Crooks moderated a
congressional briefing regarding the results of
a coalition survey of manufacturers and other
end-users. The findings were startling: New
margin requirements could force the median
company to post $125 million in collateral—
impacting capital expenditures, curtailing
business investment and limiting job creation.
The NAM will not relent, keeping the pressure on
our leaders to do the right thing.
Learn More
For more than a year, the NAM tackled the skills gap with an
eye on results, creativity and hands-on involvement through our
board-level Task Force on Competitiveness & the Workforce.
Led by Chip Blankenship, President and
CEO of GE Appliances & Lighting, the
SKILLS GAP task force convened at NAM headquarters
for the first time in February. These
manufacturing executives immediately
went to work, meeting with governors,
educators, members of Congress and
their staffs, think tanks, economic
development experts and countless others
to share experiences
and best practices. By
October, the task force developed a toolkit
that our members are already using to build
a workforce-ready talent pipeline in their
communities and train workers for the jobs
they need to fill.
OVERCOMING THE
MANUFACTURING
A GUIDE FOR BUILDING A
WORKFORCE-READY TALENT
PIPELINE IN YOUR COMMUNITY
Developed by the NAM Task Force on
Competitiveness & the Workforce / Summer 2014
The NAM, the
U.S. Chamber of
Commerce and
the ERISA Industry
Committee—
partners in
the Pension
Increasing
Coalition—
Pension
demonstrated that
Premiums:
The Impact on Jobs and Economic Growth
further premium
increases will have
a negative ripple
effect throughout the entire economy,
draining an average of 42,000 jobs per
year and resulting in a $51.4 billion hit to
the economy over 11 years.
May 2014
Sen. Ben Cardin (D-MD) met with
representatives from NAM member companies
on their priorities for reforming the tax code.
INSPIRING THE NEXT GENERATION
Manufacturers also need federal policies
aimed at closing the skills gap. The NAM’s persistent lobbying
helped secure yet another rare legislative victory in a Congress
beset by gridlock: the Workforce Innovation and Opportunity Act
(WIOA). Signed into law in July, WIOA gives federal programs
the ability to adapt to the needs and demands of employers and
employees in the future.
Our nation must finally move forward on comprehensive immigration
reform—not only because it makes us more competitive, but also
because it’s the right thing to do. The NAM’s voice broke through.
Partnering with traditional and nontraditional allies, the NAM built a
movement on social media: #timeisnow. On YouTube, we shared
a compelling personal immigration story from American Cleaning
Institute President and CEO Ernie Rosenberg, our 2014 Council of
Manufacturing Associations President. By the time President Obama
announced his executive action on reform, we were prepared to go
back to Congress yet again and demand action. Manufacturers are
counting on both President Obama and congressional leaders to end
the uncertainty by working cooperatively to fix our broken immigration
system.
41
ADVOCATING AFFORDABLE
HEALTH CARE
ADVANCING TECHNOLOGY,
ADVANCING MANUFACTURING
The top business challenge cited by more than 77 percent
of respondents in the December NAM/IndustryWeek
Survey of Manufacturers: rising health care and insurance
costs. These concerns have hovered near the top of that
list for much of the past two years due to uncertainties
surrounding implementation of the Affordable Care Act (ACA).
The NAM is increasing awareness about what
manufacturing really is—exciting, sleek and technologydriven. In 2014, we took that message across the country.
Whether it’s NAM President and CEO Jay Timmons
speaking to the Iowa Association of Business and Industry
or NAM Senior Vice President of Policy and Government
Relations Aric Newhouse addressing the Pittsburgh
Technology Council, the takeaway is clear: Today’s
manufacturing is advanced manufacturing, reaching new
heights of excellence and innovation each and every day.
To educate our members about existing law, the NAM led
ACA University, a series of webinars held in coordination
with the Council for Affordable Health Coverage and The
Latino Coalition. In 2014, more than 350 of our member
companies participated in webinars on health care
exchanges, open enrollment and tax implications.
With roughly 97 percent of NAM members offering health
care coverage to their employees, we need policies that
will support their decision to continue to do so. With the
NAM’s support, the House passed the Employee Health
Care Protection Act—and should it be reintroduced in 2015,
we will push hard to move it toward passage and ultimately
to the President’s desk. Our government relations team will
continue to work with policymakers on health care reform
that reduces out-of-control costs and improves patients’
access to care.
Learn More
Connected cars. Smart homes. Health care technology. 3-D printers. We saw
all of this and much, much, more from the 3,200 companies participating in
Show Manufacturers had a
the 2014
2014 International
International Consumer
Consumer Electronics
Electronics Show.
dominating presence once again this year. What we also saw was a heavy
dose of participation from government leaders and manufacturing policy
experts talking about how Washington can impact their business.
Learn More
In its second year in operation, the NAM D.A.T.A. (Driving the Agenda for Technology
Advancement) Policy Center positioned us as the authority on innovation. Our event in
San Francisco examined the intersection of manufacturing and technology—and how
it impacts Silicon Valley.
NAM Director of Technology and Domestic Economic Policy Brian Raymond serves on the
Board of Directors for the National Alliance for Jobs and Innovation (NAJI), a privatesector coalition dedicated to stopping unfair competition from the use of stolen intellectual
property through piracy, counterfeiting or trade secrets. The NAM and NAJI partnered on a
study examining the economic impact of software piracy on manufacturers in the
United States.
43
“If we can no longer rely on our political
leaders to lead us, it becomes our right
and responsibility to step up and show
them the way. What no longer seems
to exist in Washington, we can find in
ourselves.
45
“In the past four years under CEO Jay Timmons,
NAM has become an increasingly prominent
part of the conversation in the top regulatory,
legislative and legal issues of the day, and also
is getting more involved in electoral politics,”
the influential CEO Update said in its profile of
Timmons. “Yet the key to such influence is
not charging up the hill (or the Hill) alone,
nor a ‘my way or the highway’ attitude. It is
Timmons’ collaborative style that draws strength from broad coalitions
including left-leaning Hispanic rights groups on immigration and labor
unions in promoting the Keystone XL Pipeline.
RECOGNIZING OUR STRENGTHS
From our successful issue advocacy campaigns to our
winning communications strategies, the NAM received
unprecedented acclaim for our results-oriented leadership.
We used award events as platforms to focus the attention on
where it really belongs: the men and women who make things
in America. The awards themselves are secondary to the real
success achieved—broader awareness and appreciation for
the role played by manufacturers in the United States. These
awards are less about the NAM and more about the job
creators we serve every day.
CEO Update also recognized Newhouse as a Top Lobbyist for 2014.
As NAM President and CEO Jay Timmons accepted the Adam
Award,
he issued
a call accepted
to the business
As NAM Smith
President
and CEO
Jay Timmons
the Adamcommunity:
Smith
“It’s
timeato
get
to basics
and ensure
elected
Award, he
issued
call
to back
the business
community:
“It’s that
time our
to get
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embrace
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nation strong:
to basicsofficials
and ensure
that our
elected
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freeour
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what made
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liberty and
equal opportunity.” At right: Devon Energy Corporation
Executive Chairman J. Larry Nichols, a previous recipient of the award.
Among more than 4,000 entries for the Graphic Design USA Awards, only
15 percent merited certificates of excellence. The NAM received three
awards—for our 2013 annual report, our “hub” employee lounge and our
federal energy savings executive summary.
The NAM’s Alliance for Fair Trade with India campaign merited the American
Business Award Gold Medal for Communications Campaign of the Year.
Association TRENDS also recognized the NAM’s “What
Manufacturing Means to America” video.
In a highly competitive category, the NAM’s 2013 annual report won the
National Capital Chapter of the Public Relations Society of America’s Thoth
Award. NAM Senior Vice President of Communications Erin Streeter (right)
accepts the award.
The NAM’s video brochure took home gold at the Association TRENDS’
Salute to Association Excellence.
The Hill’s list of Top Lobbyists of 2014 featured Timmons
and NAM Senior Vice President of Policy and Government
Relations Aric Newhouse. “Timmons and Newhouse
are embroiled in many of Washington’s biggest brawls,
including disputes over environmental regulations,
Export-Import Bank reauthorization, immigration, tax reform and trade
and workforce issues,” the newspaper said.
Leading the NAM into the future: the NAM’s senior staff and leadership team.
47
INCREASING
OUR FOLLOWERS
126
70
increase on
Twitter
increase on
Facebook
EXPANDING
OUR REACH
142.5 MILLION
64.5 MILLION
Twitter users and
Facebook users heard
from the NAM in 2014
GROWING
OUR IMPACT
THE NEXT CHAPTER
At the Fall 2014 Board of Directors Meeting, the NAM elected
new leadership for the 2015–2016 term:
The NAM’s messages routinely appear in
highly influential news sources, such as
The Wall Street Journal, and our stories
are carried in widely read international,
national, regional and local outlets.
16,400
With more than
mentions, the NAM’s media presence in
publications increased 58 percent over
the past year. Our mentions in top-tier
publications increased 84 percent.
In 2014, the NAM upgraded our website and launched an advocacy
app, MFGWorks. These resources enhance the interactive experience
and serve as a critical tool in how we market the organization, how we
engage a greater audience and how we influence more people. We have
bolstered our issue advocacy campaigns and research products as well
to focus the debate on our policy priorities.
Vice Chair
Gregg M. Sherrill
Chairman and
Chief Executive Officer
Tenneco Inc.
John F. Lundgren
Chairman and
Chief Executive Officer
Stanley Black & Decker, Inc.
Matt Barr
Chairman and CEO
Carolina Color Corporation
Mark A. Cordova
President
Centennial Bolt, Inc.
Jeffrey S. Edwards
Chairman and
Chief Executive Officer
Cooper Standard Automotive
The NAM’s social media campaign reached and motivated the next
generation of manufacturing employees. In its first week alone, the
NAM’s #WeAreMFG campaign reached more than 2.8 million people.
Small and Medium
Manufacturers Group
Chair
Thomas J. Riordan
President and
Chief Executive Officer
Neenah Enterprises, Inc.
And nine members joined the NAM Executive Committee:
Thomas A. Burke
President and Chief Executive Officer
Modine Manufacturing Company
“Building and changing is what the NAM is all
about—just like building and changing is what
manufacturing is all about. And in that way—to
build and to change—is just about as American
as can be.”
– NAM Board Chair and Caterpillar Chairman
and CEO Doug Oberhelman on the association’s
leadership at our Fall 2014 Board of Directors
Meeting
Chair
Michael J. Graff
Chairman and CEO
American Air Liquide Holdings, Inc.
Scott C. Morrison
Senior Vice President and
Chief Financial Officer
Ball Corporation
Nicholas T. Pinchuk
Chairman and
Chief Executive Officer
Snap-on Incorporated
Marc Skalla
President
SASCO Chemical Group, Inc.
David T. Seaton
Chairman and
Chief Executive Officer
Fluor Corporation
Visit
www.nam.org
to meet our
2015 board
leadership and
full executive
committee.
49