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
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• 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
• 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
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Questions?
The Franklin Partnership, LLP
Policy Resolution Group at Bracewell
www.metalworkingadvocate.org