AMC Policy & Advocacy

For a comprehensive look at the Arizona Manufacturers Councils’ federal and state policy priorities for the current year, please reference the Arizona Chamber’s 2019 Business Agenda (pages 7-11).

Throughout the years, the AMC has been instrumental in achieving key legislative victories for the manufacturing community.  Here are just a few:

2018

  • Defeated Prop. 207: Small Business Tax Hike Initiative that aimed to raise income taxes on all Arizonans, with small businesses disproportionately affected. Negative provisions included:
    • Unfairly taxing some small business at nearly twice the rate of corporations.
    • Higher taxes for all Arizonans due to the elimination of bracket inflation indexing.
    • Arizona would have become the 5th highest taxed state in the nation for small businesses, up from the 38th highest.
  • HB 2154: Data Security, established business-friendly protocols for businesses responding to customer data breaches.
  • HB 2167: Arizona Commerce Authority Reauthorization, renewed the ACA, the state’s economic development arm, for another six years.
  • HB 2434: Regulatory Fintech Sandbox, made Arizona the first state in the nation to enable temporary, real-market testing of innovative financial products, services, business models and delivery mechanisms without incurring regulatory costs and burdens that may otherwise be imposed.

More Wins

  • SB 1416 in 2017 updates Quality Jobs and Quality Facilities tax credits; extends R&D credit; accelerates depreciation under certain conditions; and protects private sector investment in modernized public infrastructure.
  • SB 1413 in 2014 ensures that manufacturers will no longer pay sales tax on electricity or natural gas consumption, bringing Arizona into alignment with most states around the country;
  • HB 1442 in 2012 encourages world-class manufacturing projects by allowing the government to share in the financing of necessary infrastructure for large, high-dollar projects that create a sudden and significant need for public infrastructure; and
  • HB 2815 in 2012 removes the cap on income-tax credits available to companies that create qualifying new jobs in the manufacturing or export-related industries, and expands to other manufacturers a tax credit once only available to the renewable energy industry.  It also reduces the capital gains tax by 25% and extends the net operating loss carry forward from 5 years to 20 years.

Providing a strong voice to the manufacturing industry.

AMC Leadership

National Association of Manufacturers visits Arizona, hosts lineup of manufacturing and policy leaders

Spirits were high last week as manufacturing executives gathered in Scottsdale for the National Association of Manufacturers Spring Board of Directors meeting. The largest manufacturing association in the United States, NAM represents small and large manufacturers in every industrial sector and in all 50 states. The Arizona Manufacturers Council (AMC) is the official state affiliate of NAM.

The guest list included a star-studded collection of world leaders, celebrity speakers and top executives from iconic American manufacturing companies like PING, Ball Corp., Anheuser-Busch and others.

Vice President Mike Pence, Arizona Governor Doug Ducey, former U.S. Ambassador to the U.N. Nikki Haley, SBA Administrator and WWE co-founder Linda McMahon, and economist and author of “Trumponomics,” Stephen Moore, were among the featured speakers.

OPTIMISM HIGH

Consistent themes throughout the event emerged around the positive economic effects of NAM-driven policies like federal tax cuts and regulatory reform. The need for certainty on trade – particularly the need to develop an innovative, enforceable agreement with China and a strong sense of urgency around the passage of the USMCA – also remained at the forefront. The AMC and the Arizona Chamber of Commerce and Industry remain committed to leading advocacy efforts at the state level.

“Manufacturing in the United States is on the rise, and manufacturers are confident about the future,” said NAM President and CEO Jay Timmons at the three-day event at the Phoenician. Timmons is widely regarded as one of the most influential leaders in Washington today.

During the first quarter of 2019, an average of 91 percent of manufacturers reported an optimistic outlook about their own company and the economy according to the NAM Manufacturers’ Outlook Survey released March 5th. There were 12,834,000 manufacturing workers in February, with almost 1.4 million employees added since the end of the Great Recession – the most workers in the sector since December 2008.

While momentum is building, manufacturers expressed common concerns around trade, infrastructure deficiencies and workforce shortages.

USMCA, TRADE FIGURES PROMINENTLY

During his remarks, Vice President Pence urged manufacturers to “send a strong message to members of Congress in all 50 states that it’s time to approve the USMCA, and we must see it approved by Congress this year. “

Arizona’s international trade relationships remain vital to our state’s economy, especially with our strongest trading partners, Mexico and Canada. In 2017, Arizona exported $7.5 billion in goods to Mexico and $2.2 billion in goods to Canada. Trade with Mexico and Canada supported over 236,000 jobs in Arizona during the same year.

The AMC and the Arizona Chamber are working full tilt with the Arizona delegation to create a sense of urgency around the passage of the USMCA. The deadline for the U.S. International Trade Commission (ITC) to release an assessment on the agreement and its economic impact is expected in April of this

year and Congress will begin consideration of the agreement following the release of the ITC’s assessment.

“Ratification of the USMCA is the single most important issue facing Arizona. More than 236,000 Arizona jobs depend on our trade relationship with Mexico and Canada,” Arizona Chamber of Commerce and Industry President and CEO Glenn Hamer said.

WORKFORCE DEVELOPMENT CRITICAL

On the workforce side, the tightest labor market on record is welcome news to employees and jobseekers. However, a red-hot job market often spells challenges for employers.

Recent studies show nearly 3.5 million manufacturing jobs will be created in the next decade. But 2.4 million of those jobs could go unfilled. The inability to attract and retain employees remained the top concern for the fifth consecutive quarter in the NAM’s Manufacturers’ Outlook Survey. One in four respondents indicated that worker shortages had forced them to turn down new business opportunities.

Dawn Grove, Chairwoman of the AMC and Chairwoman of the Workforce Arizona Council added, “Manufacturers are growing so rapidly, they are necessarily reaching out to new populations — hiring returning citizens, those with disabilities and many who have been out of the workforce for years. Modern manufacturers are implementing advanced technologies, automation and robotics to improve quality, bolster safety and better compete globally, such that American manufacturing workers are becoming better skilled, more productive and receiving higher wages than ever before.”

In Arizona, efforts are underway to create a pipeline of manufacturing workers through the power of Career and Technical Education. Career and Technical Education (CTE) programs are being developed that give students the hands-on skills needed to enter and succeed in the workforce.

The AMC and the Arizona Chamber strongly support Governor Ducey’s fiscal year 2020 budget plan which includes a $10 million investment to expand CTE offerings across Arizona. Through a grant program, high schools with CTE programs will receive up to $1,000 for each student who graduates with a certification in specific industries.

During a special edition of Ham(m)er Time filmed at PING in Phoenix, Hamer and Timmons sat down to discuss current workforce challenges and how technological advancements will continue to fuel demand for skilled workers.

The two-week, eight-state tour concluded in Phoenix last week, with additional stops at Intel in Chandler and Four Peaks Brewery in Tempe.

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Made In Arizona

40 Products Made in Arizona

Look at all of the innovative products coming from Arizona! While it’s still important, cotton doesn’t even make the cut in 2018. Read this article to learn more about the latest trends in Arizona manufacturing.

40 Products made in Arizona (AZ Big Media)

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Manufacturing Resources

Presentations from the 2018 Environmental & Sustainability Summit

Each August the Arizona Manufacturers Council, together with longstanding member Snell & Wilmer, convene leaders in industry and environmental policy for a robust two day conference in beautiful Prescott, Arizona. If you missed this year’s conference, we’ve made available this year’s presentations and agenda, and we hope you’ll join us next year. Special thanks to each of our event sponsors, presenters, contributors, and attendees.

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2019 AZ Manufacturing Summit


News For Manufacturers

The Cutting Edge – October 2019

The industry is expected to add more than 12,000 new jobs in the state by 2020 according to the Arizona Office of Economic Opportunity (OEO). OEO projects an annualized growth rate of 3.6 percent for the manufacturing sector between 2019 – 2020.

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Honoring Arizona manufacturers

On October 3rd, the Arizona Manufacturers Council (AMC) hosted the 2019 Arizona Manufacturing Summit, which featured keynote speakers in the industry and concluded with an awards ceremony honoring standout leaders in manufacturing.

In her opening remarks, AMC Chair Dawn Grove highlighted the many manufacturing firms making waves in the state and recognized others for their creation of thousands of jobs, including Intel, Raytheon, Nikola and more…

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Ratifying the USMCA Is Critical for Arizona—and America

By: Linda Dempsey, Vice President, International Economic Affairs, National Association of Manufacturers Business owners know that market access is central to their success. A quick look at the math shows why: The United States makes up ... Read More

USMCA Passage is Critical for Arizona Manufacturers and Workers

Trade is important for Arizona, helping Arizonanians sell more of what they make to more customers around the world. More sales equal more well-paying jobs and a stronger economy across the state..

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