Jay Timmons, president and CEO of the National Manufacturers Association, joined Yahoo Finance to discuss manufacturing prospects under President Biden.
Video transcription
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SEANA SMITH: President Biden presents plans for using the Defense Production Act to combat the pandemic. This will help increase the supply of masks, make tests, help with the vaccination effort. So, to learn more about this, we want to bring Jay Timmons. He is the president and CEO of the National Association of Manufacturers.
And Jay, it’s great to talk to you again. I want to read an excerpt from your most recent statement you sent. And you said, a smart, targeted approach between management and manufacturers can shape the use of the Defense Production Act. I think, talk to me about what this partnership would be like and how you think your association can better help the Biden administration right now.
JAY TIMMONS: Sure, and that’s a great question. You see, the Defense Production Law was designed to help our country overcome the most difficult times, usually during the war. And, obviously, this is a new type of war. This is a war against the health and economy of the United States, the pandemic. Therefore, the Defense Production Law has been used several times over the past few months in the previous administration.
What we would like to see and I think what President Biden and his government are looking to do is create a partnership with manufacturers that is based on incentives, basically looking at manufacturers who are willing to change their operations and convert their lines to make PPE supplies doctors. In the vaccine supply chain, all these kinds of things can be strengthened through the use of the Defense Production Act.
ADAM SHAPIRO: What kind of discussion did you have with the new government about doing just that? Because I imagine that you are the point of organization so that you can reach those who actually do something.
JAY TIMMONS: Well, you know, yes, again, it was an interesting 10 or 11 months that we have been working with several of our member companies to produce this PPE and medical supplies and now the vaccine. It has been a frantic exercise, as you can imagine, as we try to accommodate the high demand for these products. We have had numerous conversations with the administration.
We couldn’t be more excited about the fact that Jeff Zients is leading the response to the pandemic. I can’t think of a better leader for our time for that purpose. We have had numerous conversations since President Biden was declared the winner of the presidential contest. And what we offer is our perspective on what has worked and what hasn’t worked in the past 10 months.
We talked about exactly what you just mentioned, the Defense Production Act, how it can be used as an incentive instead of a weapon for manufacturers and how we can work together to develop those essential goods and supplies that are needed to get us overcoming the obstacle, to take us beyond the goal line to really solve the pandemic problem and end it once and for all.
SEANA SMITH: Jay, from the conversations you are having, I think, which regions at the moment do you think are in better shape compared to those that need the most help now?
JAY TIMMONS: Are you talking about the pandemic?
SEANA SMITH: Yes, with regard to the pandemic and only in the supply, what they need only in terms of masks, with fans, with anything that manufacturers can help with. Are there certain areas, I think, in the US that need more help right now?
JAY TIMMONS: Yes, you know, this is a great question because it shrinks and flows depending on where you are in the country. So, see, I’m from the midwest of a small rural community in southern Ohio. Basically, it was not affected during the first months of the pandemic. But then, as more activities started taking place in my area of residence, as there was less focus on federal government leadership in terms of urging people to wear masks and social distance and stay away from the crowds, you started to see the virus spread keep in smaller communities.
So the initial response that manufacturers had to get involved was big cities like New York and Detroit, for example. Then we saw Chicago, others. Today, we still have the problem in large urban areas. Los Angeles is a clear example of this. But you are starting to see everything spread out. It doesn’t really matter. It doesn’t matter if it’s a red state or a blue state. It doesn’t matter if it’s rural, urban or suburban. You are seeing this everywhere.
My own father succumbed to COVID. And he was very, very careful, always wearing a mask, always distancing himself. He only went to the supermarket, like, once a week. This thing is very, very dangerous. And the manufacturers understand that, that’s why we have been working since the first day to try to control it, to stop the spread. And now our job, we believe, is to get everyone in America to roll up their sleeves and give them a chance.
ADAM SHAPIRO: Jay, when you talk about incentives for manufacturers, when the government uses DPA, does that help a manufacturer who can be assigned to pay for the transition to whatever product is to be produced?
JAY TIMMONS: Well, that is certainly one of the benefits of using it properly. Absolutely. I mean, if you think about a manufacturer that’s doing everything it’s doing, right, and there’s – and they raise their hands, which a lot of them have done over the past few months, and they say, look, we’re willing to quit our line for this product and redesign it to be able to make, say, masks. There has to be a financial – or there is a financial cost to do that. And most of them can’t just absorb it on their own. That is exactly why the DPA was created.
It was also created to allow the federal government to reuse certain contracts. We prefer not to see that. We prefer to increase production and not interfere with the contracts that many manufacturers have already signed for many of these products, many of these medical supplies. And we would like to see that we can increase American production of more personal protective equipment and more of these medical supplies here at home.
SEANA SMITH: Jay, before I let you go, I would just like to get a quick idea, because you made some statements. You spoke on Twitter about the disturbances we saw on Capitol Hill a few weeks ago and also about the backwardness and the transition of power initially from the Trump administration. You tweeted back on January 7, saying only briefly that this is not the vision of America that manufacturers believe and work so hard to defend.
I’m curious to know what you expect to hear from President Biden during his first 100 days, just in terms of helping to unify the country and bring the two sides together so that we can overcome some of the events that have taken place during the past few weeks.
JAY TIMMONS: Well, look, I think you’ve seen it in the past two days. I found today’s inaugural ceremonies and activity absolutely beautiful. And they represented the best in America. They represented an America that wanted to come together, heal and be able to move on. And when we are talking about healing, we are not just talking about physical healing and our health cure because of the pandemic, we are talking about healing the soul of this country, a very divided time for us. And I think most people are tired of it.
I can say that for manufacturers, we want to be part of the solution. We want to move forward, we want to ensure that the United States can continue to prosper, grow and continue to be a shining example of what democracy is and our constitutional form of government. And we want it to be a great example for the whole world. I think that’s what we’re looking for.
We will not agree with everything with this government. We do not agree at all with the previous government or the previous one. But there are so many things we can agree on – immigration reform, investment in infrastructure, trade deals, workforce development. There are so many things that have already been put on the table that give us a way to work together to strengthen our country.
SEANA SMITH: Jay Timmons, it’s always great to have you, president and CEO of the National Association of Manufacturers. Thank you for joining us.
JAY TIMMONS: Thanks for receiving me.