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The Biden administration will soon announce the first grant winners of a multi-billion-dollar competition to speed up development of technology to “remove carbon dioxide from the sky,” according to E&E News’ (subscription).

What’s going on: The “awards for so-called direct air capture hubs could define the future of the nascent DAC industry in the United States as well as the broader CO2 removal sector, experts say.”

• The Department of Energy received more than a dozen proposals in response to the $3.5 billion DAC hub competition, which was created in 2021 as part of the historic bipartisan infrastructure legislation and seeks to increase the use of DAC technology.
• The projects expected to be announced this month could get “between $3 million and $500 million in matching funds” for efforts such as DAC undertakings capable of capturing and storing one million tons of carbon dioxide every year.

What it is: DAC plants use filters, power, piping and fans to remove carbon dioxide from the air and sequester it underground.

• Just 27 such facilities have been commissioned globally, and the largest of these can remove 4,000 tons of carbon dioxide from the atmosphere annually.

The economic challenge: “At the moment, it costs around $700 per ton for a DAC facility to remove carbon from the air, according to the industry data clearinghouse CDR. The Inflation Reduction Act, meanwhile, increased the tax incentives for DAC operators to $180 per ton for the CO2 they permanently store.”

• To bridge that cost gap, last year Congress ordered the Biden administration to start a pilot program to pay DAC firms and developers of carbon-removal technology to remove emissions from the air.

The final say: “Manufacturers view clean energy solutions—such as carbon capture and sequestration/storage technologies and hydrogen—as important parts of our country’s energy present and future,” said 17�Թ����� Director of Domestic Economic Policy Brandon Farris.

• “Manufacturers are leading the charge in developing them and scaling them up for widespread use.”

Canadian dockworkers and their employers in British Columbia agreed to a labor contract Sunday, ending the uncertainty that has plagued the North American port system for the past month, according to .��

What’s going on: The International Longshore and Warehouse Union of Canada voted to ratify a four-year agreement with the British Columbia Maritime Employers Association following a tumultuous few weeks that included two dockworker strikes—one lasting 14 days and the other only a day.

• “The new deal includes increases in wages, benefits, and training,” according to BCMEA, which also said deal ratification would offer “certainty and stability for the future of Canada’s West Coast ports.”

Why it’s important: During the two-week strike, “[s]ome U.S. shippers reconsigned the destination of their containers to the U.S during that time. Other ocean carriers eventually went back to the Canadian ports and waited to unload both Canadian and U.S. freight.”

• Changes to shipping routes affect railroads, since fewer containers traveling by rail can be unloaded at ports during work disruptions.
• It could take the railroads weeks to clear the backlog of containers built up as a result of the work stoppage.
• While train trade from Canada to the U.S. is recovering, it still ended the week of July 29 with a 6.2% decrease, according to CNBC.

The 17�Թ�����’s take: “Disruptions to the interconnected North American supply chain have been a constant challenge for manufacturers over the past several years,” said 17�Թ����� Director of Infrastructure and Labor Policy. “We welcome the announcement that this agreement has been ratified and will continue urging swift resolution to labor negotiations that might further impede reliable and efficient freight movement.”��

U.S. scientists have achieved a net energy gain in a nuclear fusion reaction for a second time—this time, with a higher energy yield, according to .

What’s going on: The federal Lawrence Livermore National Laboratory in California announced Sunday that in an experiment on July 30, a fusion reaction produced more energy than it consumed, and more than a similar experiment produced last December.

• The December reaction used 192 lasers to produce a net gain of 1.1 megajoules of fusion energy, enough to power an average-size home for about half an hour, according to .
• The July reaction is said to have netted even more, though specific figures for it are not yet available.

Why it’s important: “Scientists have worked for decades to develop nuclear fusion as a source of effectively limitless clean energy,” Axios reports.

• However … “Scaling up the technology to support the electrical grid will require increasingly powerful lasers—and more of them,” according to Extreme Tech.

The last word: “The net gain of fusion energy—for a second time, and in a larger amount—is a tremendous milestone,” said 17�Թ����� Director of Domestic Economic Policy Brandon Farris. “It is further evidence of the enormous potential of nuclear power to help us meet our energy needs and energy-security goals.”

U.S. power companies are finding it increasingly difficult to get the large transformers they need to move electricity long distances—and the Department of Energy should step up to help them, the Government Accountability Office said this week, according to E&E News’ (subscription).

What’s going on: A “GAO report called on DOE to create a plan, with deadlines, to overcome growing delays and difficulties U.S. utilities are facing in getting new large power transformers that are required to move electricity across more than 160,000 miles of U.S. high-voltage lines.”

• Most of the transformers are imported from overseas, and there is still a shortage due to pandemic-related supply chain disruptions.
• In some cases, delivery times have more than doubled, and the largest of the transformers can cost up to $10 million.

Why it’s important: “Transformers are critical for the future energy mix, as they are needed to create a larger grid for increased wind and solar generation, according to analysts.”

• In 2027 the demand by North American power companies for large transformers will likely be about twice what it was in 2020, according to the DOE.

What can be done: The DOE should create a plan to get more power companies to take part in voluntary programs to loan out spare large transformers during emergencies, the GAO recommends.

• The largest of these sharing agreements, the Edison Electric Institute’s Spare Transformer Equipment Program, had 57 participating utilities as of March.
• Thirty-one utilities in 28 states have signed onto a grid program to furnish spare transformers during cyberattacks or natural disasters.

The challenges: “[S]hortages of skilled manufacturing craftsmen able to build the transformers’ complex windings are a significant challenge … [DOE] said it is working on expanding apprenticeship programs to address the issue.”

Our take: “Transformers and transmission lines are critical to meet our growing energy security needs,” said 17�Թ����� Director of Domestic Economic Policy Brandon Farris.​​​​​​

• “The 17�Թ����� will continue working with the DOE and others to ensure that current and future needs are met, including developing the next generation of the manufacturing workforce and breaking down permitting barriers to expedite the buildout of our grid.”

Manufacturing employment declined in July, marking the third decrease of 2023, according to the .

What’s going on: Jobs in manufacturing dipped by 2,000. Year to date, the sector has added just 11,000 employees, a significant slowdown from its pace of 385,000 in 2021 and 390,000 in 2022.

• However, the number of workers in the industry in July—12,985,000—is just short of the number in February, 12,988,000. The latter was the most since November 2008.
• Overall, the economy added 187,000 jobs in July, coming in under expectations, according to .

Wages: Average hourly pay of production and nonsupervisory staff in manufacturing increased 0.3% in July to $26.46, with 5.3% growth in the past year.��

Where employment is up: In July, manufacturing’s largest employment gains were in transportation equipment (up 5,600), computers and electronic products (up 2,500), miscellaneous nondurable goods (up 1,800), primary metals (up 1,700), miscellaneous durable goods (up 1,300)��and nonmetallic mineral products (up 1,000).

The 17�Թ����� says: “Total manufacturing employment has remained relatively resilient despite a challenging economic environment in the sector, including weaker demand, production and an uncertain outlook,” said 17�Թ����� Chief Economist Chad Moutray.
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A persistent shortage of construction workers in the U.S. is slowing the completion of everything from single-family homes to major infrastructure projects, according to .

What’s going on: To meet labor demands this year, “construction firms will need to attract an estimated 546,000 additional workers on top of the normal pace of hiring,” CNBC reports, citing data from Associated Builders and Contractors.

• “The construction industry averaged more than 390,000 job openings per month in 2022, the highest level on record, while unemployment in the sector of 4.6% was the second lowest on record.”

Why it’s important: The industry’s labor shortage is not likely to be resolved any time soon. When combined with rising materials costs, it will only worsen the backlog of projects, which is already at a four-year high.

What’s needed: The bipartisan infrastructure bill of 2021 allocated money for projects, but not for “enticing new workers … or training” them, according to CNBC. Another component of the solution: , a policy the 17�Թ����� has long advocated.

• “More money is going to need to be spent on training additional workers, bringing people into this industry,” a source told CNBC.
• Said another, “We should also be looking at ways to allow more people to lawfully enter the country and work in construction careers, whether that’s a temporary work visa program that’s specific to construction, or broader comprehensive immigration reform.”

Our take: “The record manufacturing construction activity seen in the U.S. is further straining an already tight labor market,” said Chad Moutray, chief economist at the 17�Թ����� and director of the Center for Manufacturing Research at the Manufacturing Institute, the 17�Թ�����’s 501(c)3 workforce development and education affiliate.

• “Leaders in the sector are trying to think of ways to differentiate themselves in the competition for talent. Such pressures—along with changing demographics—are likely to keep workforce challenges front and center over the coming years.”

The U.S. and Europe are working to address “China’s accelerated push into the production of older-generation semiconductors,” (subscription) reports.

What’s going on: Last year, the U.S. imposed restrictions on the export of certain advanced technologies to China. Beijing has reacted by investing heavily in building facilities making older chips that do not face such U.S. restrictions.

• Legacy chips—those produced using 28-nanometer-and-larger equipment—remain critical in the global economy as components of everything from electric vehicles to military devices.
• China is on track to build 26 semiconductor factories through 2026, while the U.S. is forecast to construct 16 facilities “that use 200-millimeter and 300-mm wafers.”

Why it’s a problem: “Senior EU and U.S. officials are concerned about Beijing’s drive to dominate this market for both economic and security reasons, [sources] said. They worry Chinese companies could dump their legacy chips on global markets in the future, driving foreign rivals out of business…”

• If that were to happen, Western firms could become reliant on China for the chips, the sources say, and that could pose a national security risk.

Importance of legacy chips: The global pandemic demonstrated that older-model semiconductors remain important, as chip shortages hit companies’ bottom lines.

• The U.S. and Europe have been trying to expand their own chip production to avoid a repeat. Efforts have included the 2021 CHIPS and Science Act, which set aside $52 billion to bolster domestic semiconductor manufacturing in the U.S.

​�ċ�ċ�ċ�ċ�ċ�ċA problem to solve: “Commerce Secretary Gina Raimondo alluded to the problem during a panel discussion last week at the American Enterprise Institute. ‘The amount of money that China is pouring into subsidizing what will be an excess capacity of mature chips and legacy chips—that’s a problem that we need to be thinking about and working with our allies to get ahead of,’ she said.”

The Department of Energy is loosening proposed energy-efficiency regulations for gas cooktops after reviewing data submitted by one of the 17�Թ�����’s trade association partners and a utility company, (subscription) reports.

What’s going on: “In a notice of data availability to be published in Wednesday’s Federal Register, DOE floated less stringent efficiency requirements for gas stoves. The initial proposal called for a consumption limit of 1,204 … British thermal units, or kBtu, per year, down from the baseline estimate of 1,775 kBtu per year. But the new proposal raises those figures slightly. Now DOE is proposing a limit of 1,343 kBtu per year, down from a recalculated baseline of 1,900 kBtu per year.”

• The Association of Home Appliance Manufacturers and PG&E provided the DOE with data on cooktops with higher consumption rates, which the agency had not used in its initial efficiency testing.
• “Other comments led DOE ‘to better understand’ what features consumers want in a gas stove, including multiple high input rate burners and continuous cast-iron grates,” POLITICO reports.

Why it’s important: Manufacturers would be required to spend more than $2.5 billion to comply with the originally proposed rules, according to the DOE’s own estimates. However, consumers would save just 12.5 cents a month in energy costs.

• The mandates would have been so strict as to make 96% of gas stoves on the market .

What Congress has done: In June the House passed the , which would prevent the DOE from advancing its unworkable stove requirements.

What we’re doing: The 17�Թ����� has held high-level discussions with policymakers on the importance of feasibility, affordability and consumer choice in rulemaking.

• To that end, in June the 17�Թ����� and members of the 17�Թ�����’s Council of Manufacturing Associations and Conference of State Manufacturers Associations created the , which aims to combat the recent regulatory onslaught by federal agencies.

The 17�Թ����� says: “Manufacturers depend on regulatory clarity and certainty,” ��17�Թ�������Managing Vice President of Policy Chris Netram.

• Throughout the year, the Department of Energy has proposed an unprecedented slew of regulations, and many were aimed at home appliances. The DOE is now taking steps toward a solution that is less likely to raise production costs significantly for manufacturers, and less likely to reduce the available features, performance and affordability for consumers.”

After an aggressive campaign by the 17�Թ�����, the U.S. Securities and Exchange Commission has scaled back a damaging cybersecurity proposal that would have been deeply problematic for manufacturers. Yet, the final regulations still impose compliance burdens on publicly traded companies. Here’s what manufacturers can expect now that the rule is finalized.

The background: Last year, the SEC proposed a new set of cybersecurity disclosure requirements for public companies.

• The centerpiece of the rule was a mandate to disclose cybersecurity incidents to the public within four days.
• The proposal also would have required detailed reporting on companies’ policies and procedures for responding to cybersecurity threats.

The problem: Requiring detailed public disclosures about cybersecurity incidents and processes could provide a roadmap to potential hackers, and sharing information about ongoing incidents could compromise efforts to stop an attack.

The 17�Թ����� response: The 17�Թ����� the SEC to make commonsense adjustments to protect manufacturers from attacks and give companies the flexibility to respond to cybersecurity incidents appropriately.

The result: The final rule is more tailored than the initial proposal, reducing the risk that companies will be forced to expose sensitive information. But its requirements still constitute new compliance burdens on manufacturers.

For the details of the final rule,��​r​​​​ead the��.

Every manufacturer should have the tools they need to be protected against cyberattacks. Check out —an exclusive cybersecurity and risk mitigation program for 17�Թ����� member companies and organizations.

With increased pressure from customers, regulators and even shareholders, sustainable business practices are no longer optional for manufacturers. From reduced energy and materials consumption to lower emissions and ethical sourcing, manufacturers are expected to meet ambitious new goals. Luckily, the Manufacturing Leadership Council has established a new member working group devoted to helping manufacturers reach these objectives.

Support set-up: With five virtual meetings each year, the M4.0 Sustainability and Net Zero Decision Compass Group will explore key issues, best practices and challenges related to creating sustainable, compliant and environmentally friendly operating strategies.

• At the first meeting, “,” on March 10, attendees heard from 3M Senior Vice President of Environmental Strategies and Fluorochemical Stewardship Dr. Rebecca Teeters and Lexmark International Chief Sustainability Officer John Gagel. Both speakers are also MLC board members.

Why the new group: The MLC decided to create the group after a survey of their more than 3,300 members revealed sustainability was a top member business concern.

• “We decided that given the intensity of interest in sustainability and related subjects, such as net zero and the circular economy, this was an opportunity to dedicate a whole new group to the topic,” said MLC Co-Founder, Executive Director and Vice President David Brousell.

Good for business, too: While manufacturers have been discussing and working toward sustainability for decades, recent growing concerns about climate change and other environmental issues are making the matter increasingly urgent.

• Manufacturers that take on sustainable business practices are seeing competitive advantages ranging from cost savings to higher product quality to increased shareholder and employee satisfaction.

Lessons from manufacturing peers: The new Decision Compass group will share sustainability strategies, the real-world achievements of manufacturing companies, knowledge about the use and application of advanced technologies and timelines for implementation.

• Participants will also be able to see how they stack up against other manufacturing companies.

Get involved: The MLC offers resources to help manufacturers improve their operations and learn about digital manufacturing. To learn more about the sustainability group or find out about MLC membership, email [email protected].