Trade issues cause schism between NAM and American manufacturers

Two new industry associations have emerged in the wake of a National Association of Manufacturers (NAM) board vote last fall, which actually went against an earlier membership vote.

At issue is support of legislation in Congress to combat Chinese currency manipulation, which is viewed by many smaller U.S. manufacturers as reaping unfair trade benefits for the Chinese—and for multinationals with operations in China—at smaller manufacturers' expense. In an earlier vote, NAM membership favored supporting the legislation, but the NAM board reversed course.

The reversal, at least in part, has spawned one new association—Washington-based American Alliance for Manufacturing (AAM)—and changes to an existing one: The Michigan Tooling Association, which is broadening its focus and renaming itself The Tooling, Manufacturing & Technologies Association (TMTA).

The charter of both is to advocate stronger national policy favoring domestic manufacturers.

“AAM seeks to promote good public policy solutions that strengthen American manufacturing,” says John Swain, communications director. The organization comprises a relationship between U.S. Steel Corp., and the Steelworkers Union. Scott Paul, formerly of the AFL-CIO, has been named executive director.

“It's an innovative collaboration that exemplifies the commitment of the partners to strengthen American manufacturing,” says Swain. Though the list of policy issues is likely to grow, Swain cites currency manipulation, trade, and retirement and health care as focal points.

While AAM was more circumspect, TMTA has been pointed in its criticism of the larger organization that receives much of its funding from multinational, global manufacturers.

According to a TMTA press release, many domestic NAM members “feel they have been betrayed” by NAM's decision not to support HR 1498, known as the Hunter-Ryan bill in the last Congress. The legislation, originally sponsored by Reps. Duncan Hunter and Tim Ryan, specifically addressed the issue of Chinese currency manipulation, and was cosponsored by 178 other representatives fairly evenly split between Republicans and Democrats.

“The board of the Michigan Tooling Association was frustrated with NAM's inactivity of support on behalf of manufacturers—especially small, domestic manufacturers,” says Rob Dumont, president and CEO of TMTA. “We felt that if NAM wasn't going to do it, we will. Our goal is to advance the interests of all domestic manufacturers within the U.S.”

TMTA reports new members in Kentucky, Colorado, Illinois, North Carolina, South Carolina, and Alabama.

“We're vitally interested in seeing that proposed currency legislation gets support,” says Dumont, adding that what was HR 1498 (Hunter-Ryan) in the last Congress is now HR 782 in the new—and it garnered 52 cosponsors in the first six weeks of the new Congress. “But we're not a one-shot cannon,” Dumont concludes. “We'll be pursuing other trade issues as well.”