Chemical Week 2 nd Annual Construction Chemicals Outlook Atlanta, GA November 16, 2005 Patrick J. Cleary, Senior Vice President, Communications, NAM blog.nam.org

Policy-Making Process Education: Public/Congressional Public Debate Congressional Debate Action

Fun Facts About Manufacturing: Over One-eighth (13%) of Gross Domestic Product 80% > retail 175% > transportation and utilities 88% > construction, mining and agriculture

Standing alone, it is: The world’s 8 th largest economy The world’s 8 th largest economy Larger than the economies of: Larger than the economies of: - Spain - Canada - South Korea and Mexico combined

Manufacturing is responsible for nearly two- thirds (62%) of all U.S. exports of goods and services. Manufacturing is responsible for nearly two- thirds (62%) of all U.S. exports of goods and services. Manufacturing is responsible for three fifths of all industrial R & D Manufacturing is responsible for three fifths of all industrial R & D Manufacturing is responsible for 90% of all patents. Manufacturing is responsible for 90% of all patents. - Agriculture: $60billion/yearly - Manufacturing: $60billion/monthly

Manufacturing employs 14 million people Manufacturing employs 14 million people

Challenges: Reduce the costs of doing business in the US NAM Study: 22% cost disadvantages vs. trading partners Regulations: --$180 billion cost of regulation --$32 billion workplace --Highest environmental costs Challenges: Taxes Health Care (1/6 of GDP)

Challenges: Legal Costs (2% of GDP) Larger than the economies of: Hong Kong Hungary Vietnam Venezuela PortugalPeru Algeria Israel RomaniaIreland Czech RepublicMorocco DenmarkNigeria ChileKazakhstan NorwaySingapore FinlandBelarus ……..and 173 others

Challenges: A level playing field with all trading partners Challenges: A level playing field with all trading partners Vis a vis China, this means: Vis a vis China, this means: - No currency manipulation - Respect for intellectual property - No illegal subsidies - Compliance with all WTO rules

Challenges:

Congressional Manufacturing Caucus Members 108 th CongressNAM Voting Record Chaka FattahPA0% Bob FilnerCA0% George MillerCA0% Major R. OwensNY0% Hilda L. SolisCA0% John TierneyMA0% nam.org/votingrecord

Congressional Manufacturing Caucus Members 108 th CongressNAM Voting Record Robert E. AndrewsNJ5% Eliot L. EngelNY5% Michael R. McNultyNY5% David R. ObeyWI5% Lucille Royal-AllardCA5% Tim RyanNY5% nam.org/votingrecord

Congressional Manufacturing Caucus Members 108 th CongressNAM Voting Record Martin Olav SaboMN5% Jose E. SerranoNY5% Nydia M. VelazquezNY5% Richard GephardtMO8% Stephen LynchMA9% Melvin L. WattNC9% nam.org/votingrecord

South Dakota Tom Daschle22% John Thune95% South Carolina Fritz Hollings10% Jim DeMint88% North Carolina John Edwards8% Richard Burr95% Making Progress

Our Message Manufacturing is critically important to the US economy and standard of living. Manufacturing is critically important to the US economy and standard of living. We are challenged as never before, here and abroad. We are challenged as never before, here and abroad. Before you vote/take action ask yourself “will this make US manufacturing more or less competitive?” Before you vote/take action ask yourself “will this make US manufacturing more or less competitive?” We will be watching how you vote and We will be watching how you vote and We will be informing our employees. We will be informing our employees.

“Just because you do not take an interest in politics doesn’t mean politics won’t take an interest in you.” “Just because you do not take an interest in politics doesn’t mean politics won’t take an interest in you.”-Pericles “The penalty that good men pay for not being interested in politics is to be governed by men worse than themselves.” “The penalty that good men pay for not being interested in politics is to be governed by men worse than themselves.” -Plato