As U.S. manufacturers struggle to recover from the brutal recession, a new report finds that manufacturing fuels economic prosperity, but requires pro-growth policies to create jobs and remain globally competitive.
The report released by the National Association of Manufacturers and the Council of Manufacturing Associations was written by economists Joel Popkin and Kathryn Kobe. The Wood Machinery Manufacturers of America, a trade association of U.S. manufacturers of woodworking machinery, cutting tools and supplies, is a member of the NAM's Council of Manufacturing Associations. WMMA is a sponsor of the report and two previous reports in the series that feature data and analysis about the importance of U.S. manufacturing to the nation's economy.
The report offers a number of specific recommendations to create jobs and enhance U.S. manufacturing innovation, productivity and competitiveness including the following:
- Reduce the corporate income tax rate on profits earned from production in the United States to match those of our major trading partners.
- Make the R&D tax credit permanent to eliminate one important uncertainty in private decisions to undertake R&D.
- Make the commitments now that will guide private decisions on R&D investment for cleaner energy technologies and more varied energy sources. Findings from that research will help mitigate energy price spikes and make domestic manufacturing production more attractive to both U.S. firms and foreign investors.
- Continue to improve our education quality and accessibility to enhance the pool of science, technology, engineering and math graduates and support programs of technical training and certification.
- Assure the health of small businesses. They are niche suppliers of components and parts for finished goods manufacturers. And they are also important investors and initiators of high-risk, groundbreaking innovative endeavors.
- Invest in all levels of infrastructure - transportation, communication channels and the energy grid.
The new report, "Manufacturing Resurgence: A Must for U.S. Prosperity," is available at www.nam.org/popkinreport.