CAPITOL CONNECTION
NAM
The 2010 mid-term elections are now complete. While several key races are still too close to call, voters sent a very clear message to Washington yesterday. That message is good for manufacturers and the manufacturing agenda in the United States. Americans remain focused on economic growth and job creation, and their top priority is for the new Congress to advance policies that will ensure America's ability to successfully compete in the international marketplace.
The Republican Party had significant pickups in both chambers of Congress as well as in governors' races across the country. The GOP has gained control of the House of Representatives and increased its numbers in the Senate. In addition, its gubernatorial and state legislative victories will have profound implications on the federal redistricting that will begin after the 2010 Census results are released later this year. As a result, America could be in store for a substantially different political landscape again after the 2012 elections.
Regardless of the individual winners' party designation, the real winners of the 2010 elections are manufacturers. The biggest changes took place in key manufacturing states, particularly throughout the midwest from Pennsylvania, Ohio and Indiana to Michigan, Illinois and Wisconsin. Pro-manufacturing candidates scored big victories throughout this region and will be key players in promoting legislation needed for sustained economic growth and job creation.
When the 112th Congress arrives in Washington in January, its focus must be jobs, jobs, jobs. New jobs numbers are due to be released on Friday, and the unemployment rate is likely to remain near the current high rate of 9.6 percent. America's unemployment rate has been above 9 percent since May 2009, the longest period of sustained unemployment above 9 percent since records have been kept. The 111th Congress failed to adequately address key policies that impact jobs and even proposed tax increases that would be particularly harmful to manufacturers.
Fortunately for the new Congress, a comprehensive plan for supporting jobs and the U.S. manufacturing economy already exists. It is the National Association of Manufacturers' (NAM) "Manufacturing Strategy for Jobs and a Competitive America." This roadmap will help manufacturers in the United States create good, high-paying jobs and compete effectively in the global economy.
Throughout the campaign, incumbents and challengers stressed the importance of manufacturing to jobs and the economy, and many new members have expressed strong support for manufacturers' top priorities. Now it is time to see if their votes and actions will match their prior statements on key issues such as health care, energy supply and tax policy.
Manufacturers urge the new Congress to take immediate action to extend the lower tax rates enacted in 2001 and 2003, make the research and development (R&D) tax credit permanent, reduce the corporate tax rate to 25 percent or lower and increase the domestic energy supply to keep manufacturers' energy costs low. If Congress fails to make progress on these critical issues, the American people will conclude the new majority took power simply for the sake of power.
More than anything else, manufacturers are looking for certainty. Recent surveys of manufacturers show that the uncertainty caused by policies coming from Washington is causing many businesses to delay or put off hiring decisions and reduce investments that will make them more competitive. As it stands, manufacturers do not know what is coming down the pike, from increased taxes to greater regulatory burdens imposed by the Environmental Protection Agency (EPA).
In addition, the new House majority must do more than vote in favor of legislation that will support economic growth and jobs. It must become an advocate for the free-market system and educate the public about the differences between that system and one that is centralized and controlled in Washington.
It is critical to remain engaged with our newly elected officials to ensure they enact the policies in the NAM's Manufacturing Strategy. Manufacturers look forward to working with the new members of Congress to advance a pro-jobs, pro-manufacturing agenda that will revitalize the
U.S. economy.
Here's what we know:
U.S. Senate: 51 D, 46 R, 3 undetermined (assuming the two current Independents continue to caucus with the Democrats).
U.S. House: 238 R, 185 D, 12 undetermined.
Governors: 27 R, 15 D, 1 Independent, 7 undetermined.
State Senate Chambers: 7 have switched from Democratic control to Republican control (AL, ME, MN, NH, NY, NC and WI).
State House Chambers: 12 have switched from Democratic control to Republican control (AL, IN, IA, ME, MI, MT, NH, NM, NC, OH, PA and WI).
Jay Timmons
Executive Vice President
National Association of Manufacturers
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