- In 2018, manufacturers added 263,000 new jobs. That was the best year for job creation in manufacturing in 21 years. (U.S. Bureau of Labor Statistics)
- In 2018, manufacturing wages increased 3% and continued going up—by 2.8% in 2019 and 3% in 2020. Those were the fastest rates of annual growth since 2003. (U.S. Bureau of Labor Statistics)
- Manufacturing capital spending grew 4.5% and 5.7% in 2018 and 2019, respectively. (U.S. Census Bureau)
- Overall, manufacturing production grew 2.7% in 2018, with December 2018 being the best month for manufacturing output since May 2008. (Federal Reserve Board)
Reconciliation & Manufacturing
Each year, the majority party in Congress can use a special rule – reconciliation – to group together and pass a small number of budget bills in the Senate with less votes than is typically required. This allows Congress to pass legislation quickly with a simple majority in the Senate.
But here’s the problem. The current budget reconciliation bill being considered by Congress includes increasing the tax rate on manufacturers and small businesses – changes that would decrease job creation, stall wage growth and limit investment made within communities.
The Negative Impact on Manufacturers:
According to the National Association of Manufacturers (NAM) most recent Manufacturers Outlook Survey, if Congress follows through on these changes included within reconciliation…
- Nearly 94% of manufacturers said that higher taxes would be harmful to their businesses.
- 91% of manufacturers will have trouble creating jobs and expanding
- 90% of manufacturers will have trouble raising wages
Protecting Tax Reform for Manufacturers
The tax reforms passed in 2017 put manufacturers in a position of strength — driving historic numbers of new hires, rising wages, strong capital investment and the best production in years.
According to the NAM’s recent tax study, increasing the tax rate for manufacturers and small businesses would have harmful consequences, which include:
- 1 million jobs lost over two years
- 500,000 jobs lost on average each year over the next decade
- $107 billion in GDP lost in first two years
See how manufacturers across America are reinvesting in their facilities, jobs, and their communities thanks to a more competitive tax code.
- Klaussner Home Furnishings (NC): “If Taxes Go Up, I Have Fewer Choices”
- JLS Automation (PA): “How Tax Reform Helps JLS Automation Grow and Give Back”
- Optimax Systems (NY): “How Tax Reform Helped Optimax Invest in Workers”
- Big Ass Fans (KY): “Tax Policy Makes Innovation Possible for Big Ass Fans”
- Rex Heat Treat (PA): “Small Manufacturer Leverages Tax Reform to Weather Tough Times”
- Bobrick Washroom Equipment, Inc. (TN): “Tax Reform Brings Jobs, Facility Growth to Tennessee Manufacturer”
- HM Manufacturing (IL): “Tax Reform Helps Illinois Manufacturer Invest in Workforce and Equipment”
- Eli Lilly (IN): “Eli Lilly and Company Invests in Medicine Innovation and New Jobs”
- Hancock Lumber (ME): “Tax Reform Brings New Benefits, Investment to Maine Manufacturer”
- BWX Technologies, Inc. (IN): “Tax Reform Helps Create 170 Jobs in Ohio and Indiana”
- Ketchie (NC): “N.C. Family-owned Manufacturer Has Best Year Yet”
- Ferroloy (KS): “Kansas Manufacturer Doubles Its Workforce”
- Miles Fiberglass (OR): “Oregon Manufacturer Sees 35% Increase In Business”
- Marlin Steel Wire Products (MD): “Maryland Manufacturer to Increase Hiring, Invest”
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Additional Resources for Manufacturers
For member organizations and state partners of the National Association of Manufacturers (NAM), the NAM has a dedicated team of staff ready to help your company or organization partner with Manufacturers United to advance our shared goals. If you have any questions, please contact the NAM Advocacy team at email@example.com.