WEBVTT NOTE This file was generated by Descript 00:00:00.180 --> 00:00:05.220 Jay Timmons is the CEO of the group for manufacturers, a national 00:00:05.580 --> 00:00:07.410 association for manufacturers. 00:00:07.410 --> 00:00:09.480 As we mentioned, he's out of the Ohio State. 00:00:09.810 --> 00:00:14.040 Done a lot of work for various political types of North Carolinas 00:00:14.040 --> 00:00:16.680 driving the voice of manufacturers. 00:00:16.680 --> 00:00:19.530 What's the number one thing, Jay, the president, gets wrong 00:00:19.830 --> 00:00:22.230 about manufacturing in America? 00:00:22.230 --> 00:00:24.540 All the stereotypes that are out there. 00:00:24.720 --> 00:00:26.640 What's President Trump most get wrong? 00:00:26.910 --> 00:00:28.260 You know, I think that, uh. 00:00:29.384 --> 00:00:32.894 What a lot of Americans get wrong is that manufacturing is a very modern 00:00:32.894 --> 00:00:35.745 technology driven, uh, operation. 00:00:36.015 --> 00:00:39.915 And it's not, it is not the, uh, manufacturing that you might think about 00:00:39.915 --> 00:00:41.685 from your father or grandfather's days. 00:00:42.105 --> 00:00:45.885 Uh, this is something that has, uh, a, a, a different type 00:00:45.885 --> 00:00:47.445 of skillset that's required. 00:00:47.715 --> 00:00:51.555 And so manufacturers right now are investing a lot in training that next 00:00:51.555 --> 00:00:53.265 generation of the manufacturing workforce. 00:00:53.265 --> 00:00:53.295 I 00:00:53.295 --> 00:00:54.825 saw a chart yesterday. 00:00:55.290 --> 00:00:58.620 That showed the complete lock in his philosophy, folks of 00:00:58.800 --> 00:01:05.340 individualistic America, the complete failure of America to retrain the 00:01:05.340 --> 00:01:07.110 workforce after the last 40 years. 00:01:07.170 --> 00:01:10.289 Lighthizer, among others has been great on this. 00:01:10.679 --> 00:01:16.020 How in God's name do we start acting like Europe and actually retrain 00:01:16.350 --> 00:01:19.110 manufacturing types put outta work? 00:01:19.199 --> 00:01:20.009 So, uh. 00:01:20.340 --> 00:01:24.390 Let's not act like Europe completely when it comes to manufacturing, but I agree 00:01:24.390 --> 00:01:30.120 with you that they have some really good, uh, apprenticeship programs and we were, 00:01:30.180 --> 00:01:33.240 we're pretty proud of our apprenticeship work that we do at the National 00:01:33.240 --> 00:01:37.830 Association of Manufacturers through the formerly known as the Toyota Fame Program. 00:01:38.100 --> 00:01:40.080 So we were spreading that across the country. 00:01:40.800 --> 00:01:43.860 I think what we really need to focus on though, if we, if we 00:01:43.860 --> 00:01:46.800 truly wanna grow manufacturing investment here in the United States. 00:01:47.250 --> 00:01:51.210 We've gotta make things less expensive here in this country. 00:01:51.240 --> 00:01:56.970 So by that I mean, uh, our tax policy 2017, those tax reforms, they were, 00:01:56.970 --> 00:02:00.179 as President Trump said, rocket fuel for manufacturing, investment, 00:02:00.390 --> 00:02:02.580 hiring, wage growth in our industry. 00:02:02.580 --> 00:02:03.750 Those things are expiring. 00:02:04.080 --> 00:02:06.554 I. And we need to get those, we need to get those renewed. 00:02:06.765 --> 00:02:08.655 And so we're waiting for Congress to do that. 00:02:08.895 --> 00:02:13.605 The regulatory burden is another big cost driver, about $50,000 per employee 00:02:13.605 --> 00:02:15.495 per year in compliance costs, right? 00:02:15.525 --> 00:02:16.275 For manufacturing. 00:02:16.275 --> 00:02:16.875 Should we need to do 00:02:16.875 --> 00:02:19.335 credits like LBJA million years ago? 00:02:19.695 --> 00:02:22.035 Just do direct credits to manufacturing? 00:02:22.125 --> 00:02:27.075 I think, uh, well, I think tax policy is actually, that would 00:02:27.075 --> 00:02:28.725 help drive that investment, right? 00:02:28.725 --> 00:02:32.145 So if you have lower tax rates and you're able to compete 00:02:32.145 --> 00:02:33.135 against the rest of the world. 00:02:33.810 --> 00:02:36.360 That's, that's really where I think we want to, we want to settle. 00:02:36.360 --> 00:02:36.420 Jay, 00:02:36.425 --> 00:02:39.120 what type of, what types of manufacturing jobs do we really 00:02:39.120 --> 00:02:41.580 wanna bring back to the us? 00:02:41.670 --> 00:02:44.100 Do we wanna bring textile mills back to the us? 00:02:44.100 --> 00:02:45.060 What do we wanna bring back? 00:02:45.180 --> 00:02:50.340 So I, I do think that the narrative that manufacturing, uh, the manufacturing 00:02:50.340 --> 00:02:53.670 workforce is a, is in decline, is actually a false narrative. 00:02:53.970 --> 00:02:59.280 We've had, we're right now at about 13, uh, approaching 14 million manufacturing. 00:02:59.775 --> 00:03:02.579 Uh, employees that's been pretty stable for the last decade. 00:03:02.609 --> 00:03:02.900 It's 00:03:02.900 --> 00:03:04.905 stable in the last 6, 7, 8 years. 00:03:04.905 --> 00:03:05.025 Yeah. 00:03:05.025 --> 00:03:05.114 Right. 00:03:05.114 --> 00:03:05.685 Give you that. 00:03:05.745 --> 00:03:06.015 Yeah. 00:03:06.315 --> 00:03:07.935 Uh, but we wanna grow it, right? 00:03:07.935 --> 00:03:09.075 We wanna grow that here. 00:03:09.225 --> 00:03:13.274 And so those jobs, and I, and I appreciate the question, those jobs are really, 00:03:13.274 --> 00:03:16.125 very, um, very different than in the past. 00:03:16.454 --> 00:03:16.845 Mm-hmm. 00:03:16.846 --> 00:03:20.385 So highly, um, high, highly technical job. 00:03:20.385 --> 00:03:24.765 So we want people to be trained with a very different set of skills than perhaps. 00:03:25.334 --> 00:03:26.655 Even five, 10 years ago. 00:03:26.655 --> 00:03:26.954 Right? 00:03:26.959 --> 00:03:27.079 Right. 00:03:27.434 --> 00:03:33.644 Um, and so to your very first question that falls on manufacturers to 00:03:34.304 --> 00:03:36.494 invest in training their workforce. 00:03:36.494 --> 00:03:38.804 And I, and I'm pretty proud of what we are doing in the sector right 00:03:38.804 --> 00:03:40.605 now to accomplish exactly that. 00:03:40.904 --> 00:03:43.725 But we need the, but we need those economic policies 00:03:44.114 --> 00:03:45.315 that help facilitate that. 00:03:45.704 --> 00:03:49.424 So it seems like, you know, a lot of folks are now questioning the 00:03:49.424 --> 00:03:52.364 value of a college education, and a lot of folks are saying, boy. 00:03:52.875 --> 00:03:55.605 Trade schools, Columbus, are, are really what unique. 00:03:55.609 --> 00:03:57.290 Talk to us about trade schools and how they, you're 00:03:57.290 --> 00:03:59.265 just so lucky to have an Ohio State person here. 00:03:59.715 --> 00:03:59.954 Come on. 00:04:01.005 --> 00:04:04.815 Talk to us about the trade schools are, are, they're becoming extraordinarily 00:04:04.815 --> 00:04:08.054 important in the manufacturing sector, but I, I, I also wanna 00:04:08.054 --> 00:04:11.535 say that we have something for everyone in manufacturing, right? 00:04:11.745 --> 00:04:16.245 You know, probably about 45% of the jobs in manufacturing require nothing more than 00:04:16.245 --> 00:04:18.404 a col, pardon me, a high school degree. 00:04:18.925 --> 00:04:23.815 Uh, but there are positions that are, uh, that require a four year degree or 00:04:23.815 --> 00:04:26.275 technical training, even advanced degrees 00:04:26.275 --> 00:04:27.020 all across the world. 00:04:27.140 --> 00:04:29.935 I wanna go to the a Pasal motion, and I'm gonna double barrel here. 00:04:29.965 --> 00:04:32.935 The Financial Times, I'm sorry I can't cite the author. 00:04:32.935 --> 00:04:34.345 It was one of their great newsletters. 00:04:34.915 --> 00:04:37.590 I. Had that wonderful survey three, four days ago. 00:04:37.740 --> 00:04:42.840 Everybody wants to bring J Timmons World back to America, more manufacturing 00:04:42.840 --> 00:04:47.010 jobs, but a huge body of Americans don't want to work in manufacturing. 00:04:47.220 --> 00:04:52.980 There's a poll, spoke volumes, but the videos that have gone viral, which is 00:04:52.980 --> 00:04:59.010 fat people like me sitting in a machine doing mundane factory work, that's the 00:04:59.010 --> 00:05:01.950 stereotype Paul was just talking about. 00:05:02.520 --> 00:05:02.910 I mean. 00:05:03.255 --> 00:05:12.015 The fear is you got some 400, 600, 800 people outside Hong Kong doing make work. 00:05:12.015 --> 00:05:12.075 Yeah. 00:05:12.195 --> 00:05:14.295 Do we wanna bring those jobs back here? 00:05:14.325 --> 00:05:19.425 So I, I, I wanna grow the types of jobs we have here in this country and, um, 00:05:19.425 --> 00:05:24.225 I, I know it sounds kind of tried to say, but I love opening up the doors to 00:05:24.225 --> 00:05:26.205 manufacturing facilities for young people. 00:05:26.445 --> 00:05:28.995 My daughter, Ellie, is traveling with me this week. 00:05:28.995 --> 00:05:29.895 It's her spring break. 00:05:30.240 --> 00:05:33.930 And, uh, we've, we've been able to go into a couple of, uh, plant floors 00:05:33.930 --> 00:05:37.200 and I think her eyes were opened about the possibilities in manufacturing. 00:05:37.200 --> 00:05:38.670 Those jobs are pretty exciting. 00:05:38.880 --> 00:05:40.230 They change constantly. 00:05:40.680 --> 00:05:44.370 And they provide really a lifelong, and, and frankly, did 00:05:44.370 --> 00:05:46.770 President Biden advance that with all his legislation? 00:05:46.860 --> 00:05:50.190 I think that the Chips and Science Act was very important for this country. 00:05:50.190 --> 00:05:53.490 I think that the investments that we made in infrastructure were 00:05:53.490 --> 00:05:54.930 very important for this country. 00:05:55.170 --> 00:05:57.660 And in the IRA bill that was passed, right? 00:05:57.690 --> 00:06:01.260 There were some policy provisions that we thought were very important as well. 00:06:01.260 --> 00:06:05.250 So look, I mean, manufacturing changes and I'm not gonna sit here and say that. 00:06:05.805 --> 00:06:08.535 You know, it's manufacturing is a Republican industry 00:06:08.535 --> 00:06:09.885 or a democratic industry. 00:06:10.005 --> 00:06:11.445 It's an American industry. 00:06:11.505 --> 00:06:11.775 And when 00:06:11.775 --> 00:06:13.009 manufacturing succeed, do they come, succeed? 00:06:13.125 --> 00:06:15.015 Do, come on, you've been in the trenches of the capitol. 00:06:15.285 --> 00:06:16.845 I mean, do what you just said. 00:06:16.845 --> 00:06:20.445 Is that app that Republics and Democrats are on the same page? 00:06:20.655 --> 00:06:22.365 I'm, I think every single person 00:06:22.365 --> 00:06:25.515 I talk to, I don't care if they're Republican or Democrat, they 00:06:25.515 --> 00:06:27.015 wanna see manufacturing succeed. 00:06:27.015 --> 00:06:28.320 Now, having said that, even people 00:06:28.325 --> 00:06:29.775 that went to the University of Michigan, 00:06:31.005 --> 00:06:32.655 that's, that's still out for debate. 00:06:32.925 --> 00:06:38.565 But listen, I. I understand that there are different philosophies on how to 00:06:38.565 --> 00:06:43.034 accomplish that, but I can tell you from what I, when I talk to manufacturing, 00:06:43.424 --> 00:06:47.594 uh, leaders, what they say is, reduce the cost of doing business here in the 00:06:47.594 --> 00:06:49.484 United States and we will flourish. 00:06:49.604 --> 00:06:54.315 And when either side or both sides focus on that, that is exactly 00:06:54.315 --> 00:06:55.455 what we'll see in this country. 00:06:55.635 --> 00:06:58.215 The cost of production, the cost of manufacturing in the 00:06:58.215 --> 00:06:58.664 us. 00:06:59.700 --> 00:07:03.810 My understanding from 60 years on this planet in business education is that 00:07:03.810 --> 00:07:06.930 it's higher here, materially higher here than the rest of the world. 00:07:06.930 --> 00:07:09.540 That's why the jobs went to other places around the world. 00:07:09.690 --> 00:07:12.870 Can the US compete on a cost basis? 00:07:12.870 --> 00:07:12.960 Yes. 00:07:12.960 --> 00:07:14.130 Manufacturing wise, do you think? 00:07:14.250 --> 00:07:14.910 Yes, they can. 00:07:14.910 --> 00:07:15.085 And how do we do that? 00:07:15.330 --> 00:07:15.900 And listen. 00:07:15.960 --> 00:07:19.590 Uh, some people will say, oh, well the cost of labor, you know what? 00:07:19.590 --> 00:07:20.280 Don't gimme that. 00:07:20.610 --> 00:07:22.110 I wanna pay our people more. 00:07:22.170 --> 00:07:24.330 I want our people in this country to be paid more. 00:07:24.540 --> 00:07:28.350 If we're gonna do that, that means that we've got a lower cost that 00:07:28.350 --> 00:07:29.970 we actually have control over. 00:07:29.970 --> 00:07:33.300 And I sound like a broken record, but I'm gonna go back to tax reform 00:07:33.300 --> 00:07:35.820 2017, those reforms were rocket fuel. 00:07:35.940 --> 00:07:39.090 And now we have members of Congress saying, well, maybe we don't have to 00:07:39.090 --> 00:07:41.040 do quite as much as we did before. 00:07:41.040 --> 00:07:43.410 Maybe we can raise taxes on small businesses. 00:07:43.620 --> 00:07:44.820 No, that's not gonna work. 00:07:44.880 --> 00:07:46.110 That's just not gonna work. 00:07:46.980 --> 00:07:50.220 What type of jobs, what types of manufacturing would you like to see? 00:07:50.700 --> 00:07:53.100 In the US that maybe we're not doing right now. 00:07:53.505 --> 00:07:56.594 Uh, actually we're doing almost everything. 00:07:56.594 --> 00:07:58.275 I just wanna do more, more of like, can we make an 00:07:58.275 --> 00:07:59.145 iPhone here? 00:07:59.294 --> 00:08:03.885 Well, versus, uh, we haven't foxcon in China, so I believe that those are the 00:08:03.885 --> 00:08:05.234 types of jobs that you'll see Right. 00:08:05.385 --> 00:08:07.034 Coming here with the right policies. 00:08:07.034 --> 00:08:07.275 Yeah. 00:08:07.365 --> 00:08:08.474 How do you respond? 00:08:08.474 --> 00:08:09.315 Technology 00:08:09.315 --> 00:08:09.854 production. 00:08:09.914 --> 00:08:10.155 Yep. 00:08:10.155 --> 00:08:10.156 Yep. 00:08:10.515 --> 00:08:13.515 In the last couple days, they, they've reduct the Trump are no 00:08:13.515 --> 00:08:15.255 visit to Texas to try to make. 00:08:15.659 --> 00:08:19.049 Uh, handbags for Louis Vuitton, whatever leather projects as well. 00:08:19.440 --> 00:08:21.750 How do you respond to the stereotype? 00:08:21.840 --> 00:08:29.250 Americans can't do the fine work that we get out of Asian manufacturing employment. 00:08:29.250 --> 00:08:30.539 I'll give you one example. 00:08:30.840 --> 00:08:35.520 Grech now owned by Fender makes white Falcon guitars in Japan. 00:08:35.970 --> 00:08:37.559 They're exquisite. 00:08:37.919 --> 00:08:41.395 Nothing was ever made like that outta Michigan years ago. 00:08:42.000 --> 00:08:44.970 How do you respond to the fact Americans can't do. 00:08:45.300 --> 00:08:47.550 The fine manufacturing work of Asia. 00:08:47.640 --> 00:08:49.050 Well, maybe we should do that in Ohio, 00:08:50.880 --> 00:08:52.650 but it's a big part of Ohio, right? 00:08:52.710 --> 00:08:57.870 No, I'm just, uh, listen, I think Americans can rise to the challenge 00:08:58.740 --> 00:09:02.610 of, of, of literally anything, uh, in the terms of manufacturing. 00:09:02.610 --> 00:09:06.690 But I do have to say this, we can't do everything here in the United 00:09:06.690 --> 00:09:10.290 States much as we would like to, but we can do a whole lot more. 00:09:10.590 --> 00:09:13.440 Right now we have 500,000 open jobs in manufacturing. 00:09:13.710 --> 00:09:14.760 Right, and to your point. 00:09:15.210 --> 00:09:18.360 Are people really inspired to go into manufacturing? 00:09:18.360 --> 00:09:21.840 That is the job of our manufacturing institute to make sure young people see 00:09:21.840 --> 00:09:23.189 well come pay is the solution there. 00:09:23.189 --> 00:09:23.400 Right. 00:09:23.400 --> 00:09:26.430 Well, pay is the highest in any sector of the economy. 00:09:26.460 --> 00:09:26.730 Okay. 00:09:26.790 --> 00:09:27.000 Right. 00:09:27.000 --> 00:09:27.600 The average pay. 00:09:27.600 --> 00:09:34.590 I, I must ask, how do you respond to job loss in Windsor, Ontario, in job 00:09:34.590 --> 00:09:39.630 loss, in Michigan, in manufacturing, auto, I mean, this is nuts what 00:09:39.630 --> 00:09:40.405 we're going through right now. 00:09:40.405 --> 00:09:40.645 Some of that, 00:09:40.645 --> 00:09:41.605 some of that is going south. 00:09:42.060 --> 00:09:44.970 Right where there are lower costs of doing business. 00:09:45.300 --> 00:09:50.220 Um, and some of that is demand and some of that is additional, uh, potential 00:09:50.220 --> 00:09:54.660 costs like tariff policy, uh, that could have a negative impact on our 00:09:54.660 --> 00:09:58.860 ability to be productive here in this country to lower the cost of production. 00:09:59.070 --> 00:10:01.590 We're hearing, you know, the whole discussion of tariffs are creating a lot 00:10:01.590 --> 00:10:03.180 of uncertainty in, in the marketplace. 00:10:03.180 --> 00:10:05.160 Are you hearing that from the manufacturers you talk to 00:10:05.250 --> 00:10:05.940 every single day? 00:10:06.660 --> 00:10:06.900 Yep. 00:10:07.170 --> 00:10:08.310 Uh, look, I, I, so are they just, 00:10:08.310 --> 00:10:10.920 are they pulling back on capital investments or are they, I think that 00:10:10.920 --> 00:10:11.415 there are very. 00:10:11.984 --> 00:10:15.915 To, to be, to be very blunt about it, I think manufacturers are very concerned. 00:10:15.915 --> 00:10:17.175 They wanna see progress. 00:10:17.175 --> 00:10:19.964 The president has given himself 90 days. 00:10:19.994 --> 00:10:22.875 I don't know what that's down to now, about 80, probably left to 00:10:22.935 --> 00:10:24.765 negotiate deals from around the world. 00:10:24.765 --> 00:10:28.964 And we, we, we are very hopeful that we're going to see some policies 00:10:28.964 --> 00:10:30.645 that are zero for zero tariffs. 00:10:30.645 --> 00:10:33.494 I understand the Italian Prime Minister is proposing exactly 00:10:33.494 --> 00:10:34.305 that right now for the au. 00:10:35.325 --> 00:10:37.215 Uh, but we also have a couple other issues. 00:10:37.215 --> 00:10:39.435 We've got critical minerals, critical inputs. 00:10:39.495 --> 00:10:39.615 Yep. 00:10:39.675 --> 00:10:45.375 Like critical minerals or, uh, machines for machinery, for shop floors, um, 00:10:45.405 --> 00:10:48.645 chemicals that we can't do here right now. 00:10:48.675 --> 00:10:53.655 We've gotta figure out a way to bring those into these discussions as well. 00:10:53.745 --> 00:10:55.720 Is there, and then incentives, by the way, partisan, but 00:10:55.720 --> 00:11:00.195 is there bipartisan support to fix, say pharmaceuticals 00:11:00.195 --> 00:11:01.814 are made in China or Europe? 00:11:02.145 --> 00:11:05.595 Or rare minerals have been co-opted by China. 00:11:05.955 --> 00:11:07.875 I don't see the bipartisan support. 00:11:08.085 --> 00:11:12.015 I, I, well, what I hear is we wanna make sure that our supply chain is 00:11:12.015 --> 00:11:15.375 strong and is, uh, kind of unbreakable. 00:11:15.375 --> 00:11:18.705 If you think back to COVID, our, our supply chain was broken. 00:11:18.945 --> 00:11:23.595 And so we weren't able to, to access things like PPE, we were, as an 00:11:23.595 --> 00:11:27.585 organization, we were calling the entire world to get PE here to New York. 00:11:27.585 --> 00:11:28.035 Actually, Lisa, 00:11:28.035 --> 00:11:28.755 put up your back. 00:11:28.755 --> 00:11:30.465 I want, we gotta go, but Jay Timmons. 00:11:30.765 --> 00:11:33.315 This is a manufacturing at your best. 00:11:33.585 --> 00:11:39.255 This is a Anthony Volpe, American made torpedo bat. 00:11:39.615 --> 00:11:41.175 I'm gonna ask you of New York Yankee. 00:11:41.175 --> 00:11:41.235 Yeah. 00:11:42.585 --> 00:11:45.885 That is a fine American manufacturing there. 00:11:45.885 --> 00:11:45.945 Yeah, 00:11:46.185 --> 00:11:47.265 exactly right. 00:11:47.415 --> 00:11:47.775 Let's. 00:11:48.285 --> 00:11:49.425 For the Great American game. 00:11:49.425 --> 00:11:49.815 Baseball. 00:11:49.845 --> 00:11:50.325 There you go. 00:11:50.595 --> 00:11:51.675 Yeah, let's hit it outta the park. 00:11:51.705 --> 00:11:52.305 Yeah, we're gonna hit 00:11:52.305 --> 00:11:53.055 it outta the park. 00:11:53.055 --> 00:11:55.815 And as the Yankees did last night, uh, Jake Timmons. 00:11:55.815 --> 00:11:56.745 Thank you so much. 00:11:56.955 --> 00:11:57.315 Chair. 00:11:57.315 --> 00:12:01.095 Uh, chief, CEO and President National Association of Manufacturers. 00:12:01.095 --> 00:12:03.465 Can't say enough about that conversation. 00:12:03.465 --> 00:12:05.805 Look for that out on digital here in a bit.