The NAM continues to warn lawmakers about the impact sequestration will have on manufacturing jobs based on our recently released study. On Friday the Center for Strategic and Budgetary Assessments (CSBA)  released a detailed background report which provides a “comprehensive account-by-account and outlays analysis of its potential impact on the DoD budget” according to CSBA’s website.

Both reports make the same conclusion: Sequestration will cost America jobs in the defense sector.

Todd Harrison, author of CSBA’s backgrounder cites that DoD contractors would face reductions in contract awards, extensions, and options. DoD may also be forced to renegotiate contracts that would result in increased costs to the government. DoD’s civilian employees would be hit especially hard. In order to meet the budget numbers, there would have to be a decrease in 108,000 of these jobs. Mr. Harrison also provided a slide presentation to illustrate these important points.

We encourage you to tell your Members of Congress about the job-killing defense cuts that will soon face manufacturers. Please visit the NAM’s Manufacturing Works website if you would like to take action and contact them directly. 

Brian Raymond is director of technlogy and domestic economic policy, National Association of Manufacturers.

A bipartisan group of 19 leaders of the House Small Business Committee sent a letter to the Federal Trade Commission (FTC) yesterday urging them to use their existing authority to crack down on companies using stolen intellectual property to create an unfair advantage over US manufacturers. The NAM applauds these Members of Congress for working up to the last few hours on the last day of the Congressional session until they return in September fighting for manufacturers.

The investments manufacturers make in information technology which they then use to run their businesses, design their products and service their customers is what gives them an innovative edge over their competitors. These IT tools can create that edge in the marketplace that many small businesses use to grow their operations and create jobs.

Unfortunately, many of these small manufacturers, sometimes unknowingly, are competing on an unlevel playing field. Their competitors, primarily from outside the US, are using pirated or stolen information technology for which they pay nothing. This unfair advantage translates into lost revenue and jobs for US manufacturers playing by the rules.

The NAM is very sensitive to the global supply chain that is integrated into manufacturing enterprises of all sizes. Just as the Members of Congress said in their letter, the FTC should not to disrupt or burden manufacturers as they pursue the bad actors. The NAM agrees and we are committed to working with governments at all levels to ensure US manufacturers continue to win and create jobs.

Brian Raymond is director, technology  and domestic economic policy

A number of Senators – led by Sen. Hutchison (R-TX) and Sen. McCain (R-AZ) – introduced an updated version of their Strengthening and Enhancing Cybersecurity by Using Research, Education, Information, and Technology Act or “SECURE IT” Act today. This new bill makes important changes to address the privacy concerns that have been raised during both the House and Senate debate. It also clarifies the legislation to ensure it does not place unnecessary reporting and regulatory requirements on manufacturers. 

This bill will help facilitate the sharing of information between the public and private sector – a tool manufacturers do not have now and have told Congress it should be the highest priority if cybersecurity legislation is to help protect critical infrastructure. It does not increase the cost or regulatory burden on companies. This means manufacturers can have the flexibility to continue to drive research and engineering that will push cybersecurity innovation and improvement faster than any government mandated standard. 

The NAM supports this updated legislation and continues to call on the Senate to move the debate forward and pass legislation that helps to increase the readiness level of our nation’s critical assets against cyberthreats.

The NAM-supported Cyber Intelligence Sharing and Protection Act (H.R. 3523) recently passed the U.S. House of Representatives with strong bipartisan support. This bill is the first step toward better securing our nation and our economy from emerging threats in cyberspace. The focus now shifts to the Senate which has signaled it will take up cyber legislation later this month.

Manufacturers supported this legislation because it would permit the public and private sector to share cyber threat intelligence with each other. As owners and operators of the vast majority of our country’s critical infrastructure, manufacturers are sometimes the first line of cyber-defense in today’s interconnected world. If able to provide and receive intelligence – while vigorously protecting the privacy of their customers, suppliers, and employees – the private sector will be better able to protect itself from those with malicious intent.

What this legislation does not do is create a new bureaucracy or a regulatory regime. It does not give the government any ability to monitor or censor private networks. In fact, no new authority is granted to the government. That includes the intelligence community, the Department of Defense, and the National Security Agency. Most importantly, company participation is completely voluntary with no entity required to participate or share information.

There is broad support across the business community for this NAM-endorsed approach. The Senate now has an opportunity to send a bill to the President for his signature. Manufacturers know that our economic security is directly related to our cybersecurity. It is time for the Senate to act on legislation that will strengthen our nation’s cybersecurity and not create a new and unnecessary regulatory burden.

As part of what is being called “Cyber Week” by House Leadership, the chamber is scheduled to vote on four cybersecurity bills Thursday and Friday. The NAM sent a letter to Capitol Hill this morning in support of all the bills. Why do we support efforts to strengthen the cybersecurity of our nation? We tell House Leaders this in our letter:

Manufacturers through their comprehensive and connected relationships with customers, vendors, suppliers, and governments are entrusted with vast amounts of data. They hold the responsibility of securing this data, the networks on which it runs, and the facilities and machinery they control at the highest priority level. Manufacturers know the economic security of the United States is directly related to our cybersecurity.

Since manufacturers build and own the U.S. cyberinfrastructure and ecosystem, the NAM has been advocating aggressively for common-sense legislation that removes the barriers that prevent the public and private sector from sharing cyberthreat information. The Cyber Intelligence Sharing and Protection Act (H.R. 3523), one of the bills being considered this week, helps to solve this problem.

The NAM has also called for improving how the Federal government coordinates its cybersecurity R&D efforts as well as the importance of a highly-skilled Federal cyber-workforce. The other three bills on the calendar address these issues important to manufacturers.

We applaud the bipartisan efforts in the House to get these bills to the floor. We are looking forward to a full debate in the Senate which is likely coming soon!

The California State Senate will soon take up SB 1161, a measure on internet-based services and the negative impact unnecessary regulation can have on their growth and ability to create jobs.

This bill would reaffirm California’s current stance toward IP enabled services – useful tools to consumers and businesses such as Microsoft’s Skype – and other innovative technologies that can see their economic growth stifled for the developers and the customers that use them if unnecessary regulations are imposed. This measure would not affect current law protecting consumers of the ability of the legislature to enact future legislation.

Manufacturers are continuing to increase their dependence on the internet and the services enabled and delivered by it to serve their employees, customers, and shareholders. Companies rely on an open and competitive internet to help ensure their growth. In order to continue to foster continued investment, job creation and innovation in this area, it is important that policies, like California’s not unduly regulate services.

The California Senate Committee on Energy, Utilities and Communications will hold a hearing on this measure April 17.

Manufacturers make significant investments in information technology to increase their competitive edge both here and abroad. Software specifically helps drive efficiency in product design, communication, manufacturing processes, customer safety, enterprise efficiency, and even environmental impact. Now more than ever the IT leveraged by manufacturers provides an increasing competitive advantage in the global marketplace.

Unfortunately, not everyone is playing by the rules. Many companies – usually from outside the U.S. – are illegally utilizing pirated software inside their enterprise. This practice provides for an unfair advantage over manufacturers that follow the law. It can lead to job loss, a drain on innovation, and a direct negative impact on the bottom line.

A bipartisan group of sixteen Senators recently sent a letter to the Federal Trade Commission (FTC) calling for action on this practice that hurts manufacturers. The Senators cited a recent request submitted to the FTC by the National Association of Attorneys General (NAAG) asking for the Commission to address this unfair competition.

Last year when the NAM released our “Four Goals for Economic Growth” it gave policymakers the blueprint for ensuring the U.S. remains the best place in the world for manufacturers. In it, we urge them to recognize intellectual property (IP) as the basis of America’s innovative economy. The NAM knows that IP is a critical aspect of our manufacturing economy. The NAAG says in their letter that “The importance of the manufacturing sector to the U.S economy cannot be overstated.” We’re glad to see more leaders recognize that if you aren’t doing what is right for manufacturers and their IP, you aren’t doing what’s right for the economy.

The highest-ranking Republicans of five Senate Committees introduced a bill today targeted at increasing the ability of companies to share cyber threat information and best practices with each other and with the government.

The Strengthening and Enhancing Cybersecurity by Using Research, Education, Information, and Technology Act or “SECURE IT” Act would allow for voluntary information sharing across the cyber community and protect information owners from liability stemming from those actions. The new bill would also help secure government networks, increase the penalties for cybercrime, and would prioritize cybersecurity research using existing government dollars.

The authors of the SECURE IT unveiled the bill at a press conference this morning. In each Senator’s remarks at the event consistent themes emerged: The goal of the legislation is to break down the existing barriers to information sharing without increasing the liability or regulatory burden on companies.

The NAM believes an effective and trusted partnership between the public and private sectors is the best way to reduce the cyber risk faced by manufacturers today. This can be accomplished by sharing information in a penalty-free environment and not adding to the regulatory burden when there are mechanisms that already exist to monitor and strengthen our networks.

We are pleased that an issue of such high importance to manufacturers is now center-stage in both the House and Senate legislative agenda. We encourage the leaders on Capitol Hill to work together and address this important issue to manufacturers.

The long-awaited and much-discussed cybersecurity bill was introduced in the Senate today. It is titled the Cybersecurity Act of 2012, S. 2105. The authors of the bill have worked long and hard on this legislation and they should be applauded for their attempt to address this issue important to manufacturers.

Manufacturers through their comprehensive and connected relationships with customers, vendors, suppliers, and governments are entrusted with vast amounts of data. They hold the responsibility of securing this data, the networks on which it runs, and the facilities and machinery they control at the highest priority level. Manufacturers know the economic security of the U.S. is directly related to our cybersecurity. 

S.2105 recognizes the critical link between the expertise of the private sector and role of government and puts a heavy emphasis on collaboration between the two. The bill also calls for creating mechanisms that will encourage government sharing of timely and actionable threat and vulnerability information with the private sector. It addresses the issues of securing government-owned networks, streamlining existing cybersecurity offices, and dedicating significant attention to developing the next generation of the Federal cyber workforce.

While many of these provisions in the newly-introduced legislation have merit, the National Association of Manufacturers remains concerned about the new regulatory regimes created throughout the bill. The sponsors have said publicly there will be no new bureaucracies or heavy-handed regulation as a result of this bill. (continue reading…)

For at least one week this year the loudest bells and whistles in Las Vegas were not in the casinos; they were found in convention center at the 2012 Consumer Electronics Show (CES). Manufacturers took center stage and the NAM was there to see it live and in person. We walked the show floor and talked to our member companies about their latest technology. We also had an opportunity to hear first-hand from Members of Congress what to expect on Capitol Hill in 2012.

Most conventioneers were exposed to something those of us at the NAM and our members already know: manufacturers are driving innovation in technology. They saw Ford’s latest cars stocked full of computing power. They learned how Microsoft’s Kinect is driving new breakthroughs in how manufacturers can interact with their customers. They explored how Texas Instruments is helping manufacturers reduce waste, increase energy efficiency, and improve safety.

In addition to new innovations, Washington’s tech policy leaders were in town. We talked with staffers from the Hill who are championing legislation to shut down websites that sell counterfeit goods. We heard lawmakers announce intentions to push legislation to protect data of consumers. We heard the FCC chairman talk about the spectrum “crunch” and what that means to companies in the US.

It was clear that all those in attendance now understand even more that manufacturers are the bedrock of our innovation economy – from the technology that fits in the palm of your hand and the kind that you park in your driveway.