On October 3, 2024, the National Association of Manufacturers (NAM) President Jay Timmons praised the recent agreement between the International Longshoremen’s Association and the U.S. Maritime Alliance to extend the Master Contract until January 15, 2025. This agreement has allowed ports to reopen, averting a strike that could have jeopardized $2.1 billion in daily trade and reduced GDP by $5 billion per day. Timmons emphasized the critical role of operational ports for manufacturers, stating that the NAM represents nearly 13 million manufacturing jobs and contributes $2.87 trillion to the U.S. economy. [0d6995f1]
The roundtable discussion hosted by NAM on September 20, 2024, with Representatives Carol Miller (R-WV) and David Kustoff (R-TN), had already highlighted the importance of tax reform for the manufacturing sector. The representatives discussed the positive impact of the corporate tax rate reduction to 21% in 2017, which has led to job creation and increased wages in the industry. However, concerns were raised about the expiration of pro-manufacturing tax provisions at the end of 2025, which could adversely affect the sector. [4d123f47]
In addition to the port strike discussions, Timmons warned of significant economic consequences from the ongoing Boeing strike, which has lasted 20 days and involves 33,000 workers, potentially costing $1.65 billion regionally. The NAM is advocating for the immediate restoration of R&D expensing, which manufacturers have been adversely affected by since the expiration of the provision in 2022 that allowed full deduction of R&D costs. Senators Young and Estes are pushing for legislative action to restore these tax incentives, stressing the need for competitiveness against countries like China, which offers a 200% super deduction for R&D expenses. [0d6995f1]
The advocacy for pharmacy benefit manager (PBM) reform remains a focal point for NAM, which continues to oppose price controls that could hinder innovation in the biopharmaceutical sector. NAM Vice President Charles Crain previously warned that such measures could threaten the economic contributions of biopharmaceutical firms, which accounted for $355 billion and supported 291,000 jobs in 2021. [d87845eb]
Moreover, Rep. Randy Feenstra (R-IA) is actively working to repeal the estate tax, which is set to revert to $6.8 million in 2026, posing a significant threat to family-owned businesses, particularly small manufacturers. As the deadline for the estate tax reduction approaches, the voices of small manufacturers continue to grow louder, underscoring the critical need for Congress to act in favor of maintaining the increased exemption and ensuring that reforms in both healthcare and tax policy support the sustainability of family-owned businesses across the United States. [d87845eb]
