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The Good, the Bad, and the Ugly: An Update From Washington Presented by The Franklin Partnership, LLP and Policy Resolution Group at Bracewell March 2019

The Good, the Bad, and the Ugly: An Update From …...The Good, the Bad, and the Ugly: An Update From Washington Presented by The Franklin Partnership, LLP and Policy Resolution Group

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The Good, the Bad,and the Ugly:

An Update From WashingtonPresented by

The Franklin Partnership, LLP

and

Policy Resolution Group at Bracewell

March 2019

Proprietary and Confidential

Lobbying Firm – The Franklin Partnership, LLP

• Bi-partisan Washington, D.C.-based government relations firm

• 120 years combined experience; representing manufacturing industry since 2003

• Clients include: manufacturing associations, defense contractors, hospitals, cities

Strategic Communications Firm – Policy Resolution Group at Bracewell

• Wash, D.C.-based public affairs & strategic communications consultants

• Promote NTMA and PMA in print, digital and other media

• Support Franklin Partnership government relations efforts by designingand implementing coordinated strategic communications strategy

• Representing metalworking industry since 2003

Your Team in Washington, D.C.

Proprietary and Confidential

The Good: Washington’s Focus on

Workforce Development

The Bad: Washington’s Tariffs

Hurt Manufacturers

The Ugly: The Current State of

Washington & 2020 Politics

Agenda

Proprietary and Confidential

• Government questionnaires from Commerce, Census, State Dept.

• New OSHA workplace guidelines

• RoHS 2/RoHS 3/REACH compliance

• Commerce control list/U.S. munitions list/ITAR

• Economic development grants, loans, tax incentives

• Manufacturing specific tax provisions

• Green technologies/renewables information

• NAFTA/customs forms/tariff, duty rates

• Website design advice, social media strategy for sales

• Effective strategies for speaking to next generations

Association Support Services

Proprietary and Confidential

• 428,000 manufacturing job openings as of December 2018

• Estimated 2.4 million manufacturing job openings 2018-2028

PMA Takes a K-Retirement Approach to Recruitment

and Training Policy:

• MFG Day

• NIST WorkCred Credential Promotion

• Legislation to explain college costs vs. careers

• 2018 Perkins Career Technical Education Law

• Industry Recognized Apprentice Programs (IRAP)

• Higher Education Act – short term training

The Good: Workforce Development

Proprietary and Confidential

• New NAFTA Outlook Difficult

• 25% Tariffs on Steel, 10% on Aluminum

Remain

• 232 National Security Automotive, Auto Parts

Report sent to President

• 301 China Tariffs: 25% on 1,000+ items; 10%

on 5,745 imported items

The Bad: Tariffs and Obstacles to Trade

Proprietary and Confidential

Tariff Watch Matrix for Manufacturers

10-25% Steel/Aluminum 232 Tariffs

25% tariff on steel imports

(Australia exempt)

(Argentina, Brazil, South Korea have quotas)

10% tariff on aluminum Imports

List raw materials subject to tariffs/quotas

10-25% China Import Tariffs

25% tariff on 818 imports effective July 6

25% tariff on 284 imports effective July 31

10% tariff on 5,745 imports after Sept. 24

(increase to 25% on March 2, 2019 delayed)

List 4 pending on $267b of Chinese imports

List products/machines imported from China

25% Auto, Van, SUV, Truck, Part Tariffs

Tariffs would apply to all countries

Trucks under 10,000 lbs. included

Broad definition of “parts”

President could decide by May 18

List imported auto parts you further work

List autos assembled overseas you supply

10-50% Retaliation Against U.S. Goods

Retaliation already in effect for many goods

China adding more as U.S. adds more

25% tariff on exported U.S. autos

15% on U.S. stampings exported to India

List your products subject to tariffs

List customers’ products subject to tariffs

Proprietary and Confidential

The Ugly: The Current State of Washington

Proprietary and Confidential

• Gridlock, Impeachment Proceedings?

• Many Congressional candidates for President

• Republican will continue to support Trump

• Government shutdown

• Dreamers/border funding

• Democrats: stronger NAFTA labor, environment

provisions

• Infrastructure bill tied to debt ceiling, tax cut

rollbacks/increases

• Trump will not sign full repeal of rate reductions

The Ugly: The Outlook in Washington & 2020

Proprietary and Confidential

Potential Democratic Party 2020 Challengers

The Outside-the-Beltway Candidates

• Former Vice President Joe Biden

• Gov. Steve Bullock (Montana) Former Rep. John

Delaney (Maryland)

• former Gov. Jay Inslee (Washington)

• Gov. John Hickenlooper (Colorado) – former Gov.

• Former Rep. Beto O’Rourke (Texas)

• Mayor Julian Castro (San Antonio), former Mayor, HUD

Secretary

• South Bend Mayor Pete Buttigieg

• New Orleans Mayor Mitch Landrieu – former Mayor

• Gov. Terry McAuliffe (Virginia) – former Gov

The Inside-the-Beltway Candidates

• Cory Booker (New Jersey)

• Sherrod Brown (Ohio)

• Kirsten Gillibrand (New York)

• Kamala Harris (California)

• Amy Klobuchar (Minnesota)

• Jeff Merkley (Oregon)

• Bernie Sanders (Vermont)

• Elizabeth Warren (Massachusetts)

Billionaire Boys Club

• Howard Schultz (Starbucks)

• Tom Steyer (Billionaire environmentalist)

• Michael Bloomberg (former NYC Mayor)

Proprietary and Confidential

How You Can Make A Difference

• Become involved with your trade association

• Attend town hall meetings

• Attend fundraisers for members of Congress

• Participate in Annual Manufacturing Day – first Friday in October

• Host plant tours for students, parents, teachers, media, elected officials

• Support Association’s Political Action Committee

• Sign PAC Approval forms

• Participate in Media Outreach

Attend Annual Washington, D.C. Legislative Conference – April 9-10, 2019

Proprietary and Confidential

Questions?

The Franklin Partnership, LLP

[email protected]

[email protected]

Policy Resolution Group at Bracewell

[email protected]

www.metalworkingadvocate.org