Industry Insights

In fall 2011, the National Association of Manufacturers (NAM) held its annual board of directors meeting. The event was attended by stakeholders from across the country, including U.S. senators and representatives, manufacturing company owners and managers and others working to improve and expand U.S. manufacturing abilities. BKD was represented at the event by Edward Crumm, national industry partner for BKD National Manufacturing & Distribution Group.

NAM President and CEO Jay Timmons introduced “A Manufacturing Renaissance,” the organization’s four-point plan for economic growth in the U.S. The plan focuses on expanding access to global markets, preparing the U.S. work force for more technical jobs, continuing the push for innovation and making the U.S. the world’s manufacturing leader.

NAM’s plan for manufacturing growth recognizes the global nature of our economy. Therefore, NAM says the U.S. must adopt policies that open access to new markets and expand existing markets. Reducing regulations and tariff barriers though trade agreements and modernizing the export control system are just a few actions the U.S. could take, from NAM’s point of view, to open new markets and expand current ones. 

The productivity of U.S. manufacturers heavily relies on work force quality. Based on NAM’s report, there is currently a shortage of skilled production workers and engineers in the U.S. NAM believes the National Labor Relations Board and Occupational Safety and Health Administration should address mandates that limit employer flexibility and discourage hiring. Working with these organizations to help them understand the effects of these mandates should be the first step to improve the flexibility and availability of the work force currently willing and able to work in the U.S. Education reforms and national skills credentials would also help employers train and find quality job candidates. NAM currently endorses a “nationally portable, industry-recognized” skills credentials system, which could greatly enhance the speed and efficiency of the hiring process.

Innovative products and processes are the cornerstone of U.S. manufacturing ability. As such, NAM is pushing for the promotion of research and development activities and protection of intellectual property (IP) rights. NAM believes working with the federal government to make the research and development credit permanent and supporting public and private sector research would promote U.S. research and development. IP created from the research must be protected in the U.S. and abroad through the efforts of the federal government and U.S. manufacturers.

While all of these ideas will improve the dynamic environment in which U.S. manufacturers endeavor every day, one of NAM’s overarching goals is for the U.S. to be the preferred place to manufacture goods. NAM believes that securing a dependable and affordable energy supply, encouraging stewardship, reforming tort laws and improving infrastructure are key to improving the situation for U.S. manufacturers. The U.S. is currently No. 1 in manufacturing output—a position NAM strives to maintain.

This article only discusses some of the ideas presented in “A Manufacturing Renaissance.” The entire document is available at the NAM website. For more information, contact your BKD advisor.