Stimulate manufacturing to boost jobs, NAM chief says
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Prospects for a jobs-creating manufacturing renaissance would increase if the federal government concentrates on an economic policy based on pro-manufacturing policies on taxes, energy and other issues, the new head of the National Association of Manufacturers said Thursday.
"Manufacturing really does lead to economic growth. It leads to better paying jobs," NAM president and CEO Jay Timmons said during a meeting with the Post-Gazette's editorial board.
Mr. Timmons' two-day visit to Pittsburgh included stops at member companies and a speech to the Allegheny Conference on Community Development. He took over leadership of the manufacturing organization in January. The industry group has 11,000 members, most of them small and medium-sized companies involved in manufacturing.
The association's manufacturing agenda includes lowering the corporate tax rate to 25 percent, energy-independence based on using all forms of energy, including coal and nuclear power, and reducing regulations that it says make U.S. companies less competitive.
"All of the issues we talk about are absolutely vital to reducing the cost of doing business," Mr. Timmons said.
Exports by U.S. manufacturers have accounted for a sizable chunk of the economic recovery that occurred following the collapse of financial markets in 2008. Manufacturing accounts for 11 percent of the gross domestic product and employs nearly 12 million people, including 570,000 in Pennsylvania.
Mr. Timmons said there was the potential for a U.S. manufacturing renaissance. But he said that wouldn't happen unless law and regulatory changes address the 18 percent cost disadvantage U.S. manufacturers have over major U.S. trading partners. Many factors contribute to the disadvantage, but the most immediate relief from Washington is likely to come from tax, energy, and regulatory initiatives currently being discussed, he said.
NAM supports greater domestic offshore drilling, something Mr. Timmons said President Barack Obama was also supporting once again. Mr. Timmons said the problem had been U.S. Department of Interior delays in issuing new permits, inertia he said that goes against the administration's wishes.
"I believe the White House is committed to moving the process along," Mr. Timmons said.
First Published May 27, 2011 12:00 am
