4 issues brought up by national manufacturing leader during Wisconsin visit
Jay Timmons stood at a podium in the cafeteria of Husco International headquarters and looked into a camera that was streaming his speech and proclaimed, “the state of manufacturing in America remains steadfast and resolute.”
Timmons, president and CEO of National Association of Manufacturers, was visiting Husco and Waukesha County Technical College, and gave an address on the current state of manufacturing for its 14,000 member companies which employ millions of workers.
“Despite everything happening around us like the threat of a recession and global conflict, manufacturers are still leading the way forward,” Timmons said. “Although our industry and our country will need to make audacious and, yes, sometimes uncomfortable changes to adopt to economic, political and global challenges.”
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Companies across industries continue to look for employees to hire as the job market remains competitive.
As employers raise wages, increase benefits, some are looking to Washington, D.C. to get some assistance with the challenges that exist.
Austin Ramirez, president and CEO of Husco, which designs and manufacture hydraulic and electromechanical components for automotive and off-highway applications, called manufacturing the “backbone of the American economy and we are proud of it.”
Manufacturing was "front and center" in Biden's State of the Union address earlier this month, Ramirez said.
"Few industries bring Republicans, Democrats and independents together like manufacturing,” Ramirez said. “We want more than words. We want elected leaders that are focused on delivering real solutions not just name calling and partisan fighting. We want to keep growing and keep winning.”
Here are some takeaways from Timmons’ speech that show how manufacturers are looking for the Biden administration and Congress to find some solutions.
Immigration reform needed to address worker shortage
A major problem businesses are facing is the lack of workers available to fill vacant job positions. As birthrates decline, this challenge will persist for several years.
Timmons pointed to immigration reform as one possible solution.
“Anyone who has fled a brutal war and is seeking safety from Afghanistan, Ukraine or the next conflict, shouldn’t have to wait to work if they’re here legally,” Timmons said. “For those who come here to seek asylum and who have a legitimate claim, their average wait time is four years or more and its only expected to grow.”
Timmons credited Husco for hiring Afghan and Burmese refugees to address its own shortages.
“After months of trying to hire second shift positions, with limited results, Husco leapt at the chance to recruit refugees from Afghanistan,” Timmons said.
Timmons said some businesses offer legal support to help employees navigate the path to citizenship, financial services and classes to learn English.
“Unfortunately, not everybody and not everyone has the resources or an extensive support network and our government, quite frankly, our government is not making this process any easier,” Timmons said. “We have a huge backlog of people waiting for visas or work authorization for the United States, so let's change that.”
Timmons said Congress should work to shorten the process for immigrants to legally work in the United States.
“Nearly 800,000 manufacturing jobs are open right now... so we simply can’t wait,” Timmons said. “We know that between this and the crisis at our border, our immigration system is broken. Broken. But we can fix it.”
Restoring 2017 tax deductions
The 2017 tax reform legislation changed much of what can and can’t be deducted for individuals and businesses.
Timmons said some of the changes the Biden administration has made to that legislation has had a negative impact on businesses.
“Companies used to get bigger deductions for things like research and development, or for buying new machines that make jobs safer and easier and the air cleaner,” Timmons said adding limiting those deductions effectively creates an additional tax on businesses.
“That means less new machinery, less research. Meanwhile, China gives manufacturing companies there a 200% deduction for R&D, which is 20 times as much as what we give in America," he said.
Tackling Chinese counterfeiting ‘epidemic’
Timmons said Congress needs to address the issue of Chinese companies making counterfeit versions of American products.
“Counterfeiting is a problem of epidemic proportions," he said.
"The NAM’s research shows that in 2019 alone, counterfeits cost businesses across the U.S. $131 billion and 325,000 American jobs. And 87% of counterfeit products seized at our borders in 2019 came from China,” Timmons said.
“So, if we’re going to counter China, then we must hold China accountable for the trade commitments it has already made to the U.S. And we have to forge ambitious, cutting-edge trade agreements with our allies.”
Reforming permit process
Building anything in America always includes some kind of permit or inspection by local officials, and it can be a long and tedious process.
Timmons said the process to build should be streamlined.
“Why, in the 21st century, should it take five or 10 years just to approve construction of highways that move your product or to build the power plants that will supply more sustainable electricity to your factories and homes?” Timmons said.
“Let’s just modernize that process, fewer delays, fewer needless lawsuits. It’s not about cutting corners. It’s about keeping up with the world around us.”
This article originally appeared on Milwaukee Journal Sentinel: 4 issues brought up by national manufacturing leader during local visit
