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US manufacturers, on supply chain issues and near record-high inflation, are calling for action from politicians as midterm elections rapidly approach.

The National Association of Manufacturers (NAM) released its “Compete to Win” Agendacalling into action Tax policy, workforce development and other areas To boost US manufacturing competitiveness. NAM CEO Jay Timmons and board members also discussed the call for action plan in a call on Monday afternoon.

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Chuck Wetherington, president of BTE Technology, said during the call on Monday, “Solving the problems is the maker, but we need additional solutions from policymakers to ensure that we stay competitive and become more competitive, especially in the face of a recession. with possibility.”

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GDP fell in the first two quarters of 2022. According to Labor Department data, wholesale inflation remained high in August, with the annual figure rising 8.7% from a year earlier.

Wholesale inflation eases in August, but prices remain at decade high

One area in which NAM has called on elected leaders to take action is workforce development. Labor shortages in manufacturing are a “long-term problem,” Wetherington said on Monday.

Fernando Torres, vice president of operations for both Weatherington and Green Tweed, said producers are working to “upskill” existing workers and attract new ones.

To address sector-wide workforce challenges, NAM has called for expanding Pell Grant programs to “include short-term or accelerated learning models” and investing in apprenticeship and “earn-and-learn” programs. The group argued in its plan that the tax-free educational assistance employers can offer workers should be increased to $11,000 annually.

NAM has also said immigration reform could help address workforce challenges, calling on politicians to increase employment-based immigration as a percentage of green cards, and to replace nonimmigrant visa and temporary worker programs. Is.

durable goods

Meanwhile, the association has said the new tax incentives and other tax provisions will also help stimulate US manufacturing competitiveness and investment.

As an example, a board member pointed to provisions of CHIPS and the Science Act, which allocate more than $52 billion for domestic semiconductor research, development, manufacturing and workplace development and encourage investment in chip manufacturing. Provides tax credit to

Three areas of tax policy that are important to manufacturers are the research and development (R&D) tax credit, R&D spending capacity and capital investment and business interest deduction, Timmons said during the call.

US Manufacturing

Additionally, NAM has called for expanding and permanent tax deduction for business income earned “through a pass-through entity” and keeping tax rates for profits “low and competitive”.

Ketchie’s president and owner Courtney Silver said lawmakers looking to change tax policy could help prevent small manufacturers from getting “stuck between a rock and a hard place” when making decisions about company investments.

“It’s very important that we take action to expand and lock in that pass-through reduction, increase those incentives around R&D, and protect those provisions around full expense and interest deductions.”