The National Association of Manufacturers and several business groups are calling on Senate Majority Leader Charles Schumer (D-N.Y.), Speaker of the House Mike Johnson (R-LA), Senate Minority Leader Mitch McConnell (R-KY) and House Minority Leader Hakeen Jeffries (D-N.Y.) to consider the impact the new Environmental Protection Agency ruling on PM2.5 will have on businesses. 

PM2.5 refers to air particles that are less than 2.5 micrometers in diameter.

The EPA in March lowered the standard for PM2.5 in its National Ambient Air Quality Standards rule by 25%, down from 12 micrograms per cubic meter of air to nine. NAM has sued to block the new standard.

EPA calls for steeper cut with a faster timeline

NAM has that the EPA鈥檚 new ruling is far more restrictive than other countries, with the UK aiming to lower its standard to 10 micrograms by 2040. 

鈥淭he new standard will also put the United States at a disadvantage by hurting our ability to compete on the world stage. Our global competitors have adopted standards that are less stringent than the EPA rule and are phased in over a much longer time frame,鈥� a letter led by NAM says. 鈥淐ongress must act to stop this harmful rule before it takes effect.鈥�

Arizona job creators and legislative leaders weigh in

Last November, the Arizona Chamber of Commerce & Industry and the Arizona Manufacturers Council were part of a NAM-led coalition that argued against the EPA鈥檚 proposed rulemaking. In a letter Danny Seiden, president & CEO of the Arizona Chamber, remarked that wildfires a great deal of pollution to Arizona.

In a separate filing made in March, the Arizona Chamber, state Senate President Warren Petersen, and House Speaker Ben Toma are contesting the EPA ruling. 

New standard will crimp growth

NAM insists the congressional leaders should consider the negative effects the ruling will have on businesses, arguing the more restrictive regulation will make it more challenging for states to issue permits for building new facilities or expanding existing factories.

NAM also argued that the ruling puts the U.S. at a competitive disadvantage globally since other nations are not lowering their standards at the same rate. The European Union is not lowering its standard to 10 micrograms until 2030, while China is retaining its 35 micrograms standard. 

鈥淎mericans deserve a strong economy and a healthy environment. We urge Congress to pass a resolution of disapproval addressing the EPA鈥檚 actions as quickly as possible,鈥� the letter says.

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A bipartisan coalition of Western state governors is seeking greater flexibility from the Biden administration in achieving the strict ozone standards in the Clean Air Act. 

In a letter from Arizona Gov. Katie Hobbs (D), Colorado Gov. Jared Polis (D), Utah Gov. Spencer Cox (R), and Wyoming Gov. Mark Gordon (R), the governors cite 鈥渟ubstantial regionally specific challenges鈥� in meeting the law鈥檚 requirements, and say that they are 鈥渁larmed about the possible sanctioning of states that struggle to attain the standard.鈥澛�

The challenges 

The governors in their letter cite specific challenges borne by Western states in achieving the ozone standards:

• Elevated natural background ozone levels
• Biogenic contributors
•  Internationally transported pollution
•  Fast-growing populations
•  Wildfires

Mobile sources, which are under federal regulatory jurisdiction, thus limiting states鈥� regulatory authority. 

鈥淒espite ongoing work by Western states to improve air quality, including through accelerating the adoption of low and non-emitting vehicle technology, improvements in the use of small off-road engines, and the implementation of innovative programs to control emissions from stationary sources, these regional challenges leave Western states with a narrow set of tools and a difficult path to meeting the requirements of the CAA and attaining the NAAQS.鈥� 

NAAQS refers to the National Ambient Air Quality Standard. 

Potential sanctions undermine stated goals 

Failure to meet the standards could result in a loss of federal highway dollars. 

Losing out on highway dollars would undermine the goals of the Clean Air Act by halting projects that could reduce emissions and would undermine the goals of the Inflation Reduction Act and the bipartisan infrastructure law to modernize highway infrastructure to reduce congestion, which contributes to emissions. 

Potential solutions 

Among several potential solutions offered in their letter, the governors proposed: 

• Greater cooperation between the EPA and Western states to identify how the Exceptional Events framework can reflect increased wildfire activity, 鈥渁nd provide more consideration for the emissions benefits of wildfire mitigation strategies in reducing air pollution in the West and nationally鈥�; and
• Cooperation between the federal government and states to achieve a better process for the approval of projects with air quality benefits. 

Business community: Jobs at stake 

The National Association of Manufacturers last year said proposed EPA revisions to the NAAQs

would put at risk more than 300,000 manufacturing jobs nationally and would put more than a half-million jobs in a nonattainment zone by 2027. 

Last year, Danny Seiden, the president and CEO of the Arizona Chamber of Commerce & Industry, said before a joint legislative committee on air quality that the challenge of pollution originating in other states and countries was particularly vexing. 

鈥淲e are being punished for what other states and other countries are doing,鈥� he said. 

More Seiden: Stringent air quality rule will hurt our economic recovery and growth

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A jointly released by The Manufacturing Institute, the 501(c)3 nonprofit workforce development and education affiliate of the National Association of Manufacturers, and Deloitte, a top global consulting firm, highlights manufacturers鈥� concern that there is a shortage of potential candidates applying for critical jobs in the industry. 

Analyzing data made available by the U.S. Bureau of Labor Statistics and estimates of private investments from , the report鈥檚 authors calculate that 3.8 million American manufacturing jobs will be created between now and 2033. Nearly two million of these jobs could remain vacant because of a skills gap.

鈥淧andemic-driven shifts have already created hundreds of thousands of new jobs, and now we are seeing increased demand for digital skills that need to be met or risk further widening of the talent gap,鈥� Manufacturing Institute President and Executive Director Carolyn Lee said .

These modern manufacturing jobs don鈥檛 necessarily resemble the iconic assembly lines of post-World War II America. Instead, many of these positions require more advanced skills, stretching beyond basic manual labor. 

鈥淎 combination of digital skills, soft skills, and high-level technical skills show the fastest compound annual growth rates in manufacturing between 2019 and 2023,鈥� according to the report. In order for workers to acquire many of these skills, they need to undergo training or particular educational programs.

Despite this challenge, manufacturers believe that much of the talent gap can be filled through partnerships with and investments in technical colleges, industry associations, universities, and other similarly situated organizations. 

The report鈥檚 authors advise policymakers, business owners, and advocates to 鈥渓ook beyond the traditional talent pipeline鈥� partnering with a variety of organizations to engage groups that may have unique barriers to entering or re-entering the workforce.鈥�

鈥淭his report is another important reminder of how a state鈥檚 talent pipeline is essential to its manufacturing sector competitiveness,鈥� Arizona Manufacturers Council Executive Director Grace Appelbe said. 鈥淲e regularly hear from manufacturing job creators about their struggles to fill important jobs. We鈥檒l continue to bring together manufacturers and policymakers to ensure we鈥檙e making the right moves at the K-12 and higher education levels so that students are ready for fulfilling careers in manufacturing.鈥�

Arizona stands out nationally as a beneficiary of the manufacturing sector鈥檚 growth. A from real estate research firm Newmark released earlier this year found that Metro Phoenix is the country鈥檚 top market for manufacturing job growth. 

Joe Pitts is a native Arizonan currently working in the public policy space. He formerly served as program director at the Arizona Chamber Foundation.

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The Occupational Safety and Health Administration recently published a new that requires that both employer and employee representatives have the opportunity to accompany OSHA compliance officers during the physical inspection of a workplace. This has been referred to as the 鈥渨alkaround rule.鈥�

The original ruling was amended to include, 鈥淸t]he representative(s) authorized by employees may be an employee of the employer or a third party.鈥�

According to many business groups, including the National Association of Manufacturers (NAM) and the American Hotel and Lodging Association (AHLA), the new ruling OSHA鈥檚 authority.  

The AHLA joined the Coalition for Workspace Safety (CWS) in and a to the House Subcommittee on Workforce protections back in September. 

One worry is that the ruling will allow those engaged in actions against businesses 鈥� such as environmental activists and union organizers 鈥� to gather information to be used against the business and for the possible purpose of obtaining confidential information and targeting specific workers for a union organizing drive. 

鈥淭he final rule would fundamentally change the nature of the workplace safety inspections and put OSHA in the middle of organizing campaigns and/or labor negotiations between the employer and union,鈥� AHLA said. 鈥淭hese individuals, who could be union organizers, environmental activists, or engaged in some other campaign against the employer, could use the inspection as an opportunity to collect information about the workplace, target workers for an organizing drive, or simply obtain proprietary information.鈥�

Also, in another expansion of its authority, OSHA will be able to decide what third party qualifies as an 鈥渁uthorized representative.鈥� This ability was previously reserved solely for the National Labor Relations Board. 

鈥淭his is another clear example of the federal regulatory onslaught 鈥� a proposal that upends settled precedent and ignores the reasoned decision-making required by the Administrative Procedure Act. For these reasons, the NAM will be considering legal action to reverse this incredibly destabilizing decision,鈥� NAM said in a statement. 

The U.S. Chamber of Commerce said it would also consider legal action.

鈥淲e are disappointed OSHA has chosen to inject union organizing tactics into inspections that should be focused solely on workplace safety,鈥� U.S. Chamber Vice President of Workplace Policy Marc Freedman said. 鈥淭his regulation further demonstrates this Administration鈥檚 determination to aid unions whenever possible, even at the expense of an agency鈥檚 core mission. The Chamber is considering all options, including litigation, in response to this flawed rule.鈥�

Also, the ruling could property rights of employers and rights guaranteed by the fourth amendment. By including a third party in inspections alongside compliance officers, OSHA runs the risk of conducting searches on employers that may be deemed unreasonable, with no recourse available. Employers are safeguarded by the Fourth Amendment’s exclusionary rule in cases where OSHA secures an improper warrant. 

The final ruling goes into effect on May 31.

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A bill to continue the Arizona Commerce Authority for another four years cleared the state House of Representatives last week with broad bipartisan support and now heads to the state Senate.

HB 2417, sponsored by Rep. David Livingston (R-Peoria), passed 44-12.

The ACA is the state鈥檚 lead economic development agency and since its formation has been central to the attraction of major investments to Arizona, including TSMC, Lucid Motors, and LG Energy.

The agency was founded in 2011 by then-Gov. Jan Brewer and has been strongly supported for more than a decade by governors of both parties and successive Republican-controlled legislatures.

State Rep. Justin Wilmeth (R-Phoenix), touted the ACA鈥檚 accomplishments and reminded his fellow legislators of the agency鈥檚 contributions to the state鈥檚 prosperity.

鈥淭he ACA has helped to increase workforce growth by 28% and add $5 billion into the state’s general fund revenue over that time. It鈥檚 helped to create approximately 272,000 jobs and has yielded a capital investment of $115 billion into Arizona,鈥� he said. 鈥淭hese are all numbers every member should be proud of and make note of because I guarantee you that those who will vote for you will laud you for supporting their family鈥檚 ability to thrive and survive here.鈥�

Arizona Chamber of Commerce & Industry Vice President of Government Relations Courtney Coolidge said she was pleased to see such strong support for the legislation.

鈥淟awmakers from both parties understand how important the ACA is to the state鈥檚 economic success,鈥� she said. 鈥淲e look forward to discussing with senators the critical role the ACA plays in strengthening Arizona鈥檚 competitive standing and in positioning the state to continue to win more jobs.鈥�

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Senior officials from the Biden administration were in Phoenix last week to announce a new apprenticeship program investment by TSMC for aspiring semiconductor technicians. The initiative is part of Phoenix鈥檚 designation as a Workforce Hub, regions of concentration under a White House plan to ensure the country can meet the labor demands of the Chips and Science Act.

Under the $5 million investment by TSMC, the company intends to train 80 facility technician apprentices over five years, with support from Phoenix and the Arizona State Apprenticeship Office, and will scale over time and expand its curriculum to additional roles. As a part of this effort, TSMC Arizona will also recruit technician apprentices from local communities.

鈥淲hen we started recruiting for TSMC, we knew that attracting technicians would be one of our tougher challenges,鈥� TSMC Arizona President Brian Harrison said, adding that TSMC facilities are some of the most advanced in the world, and they use some of the most advanced equipment in the world. 鈥淥ur fabs and our equipment are not Oldsmobiles. They鈥檙e more like Formula 1 race cars.鈥�

Harrison said his company鈥檚 investment in the community goes beyond the multi-billion-dollar capital investment in the construction of two fabs at its north Phoenix campus and that TSMC intends to cultivate the area鈥檚 workforce in the decades to come. 

Maricopa Community College and Arizona State University serve as anchor institutions for the Hub, and the Phoenix region is now home to Arizona’s first semiconductor Registered Apprenticeship programs and the city鈥檚 workforce board is the first-ever to sponsor a Registered Apprenticeship program in the semiconductor industry.

鈥淭oday we鈥檙e launching a first-of-its-kind apprenticeship program, a philanthropic fund to lift folks into new career pathways and establish fruitful partnerships to curate the talent we need to fill the jobs of the future,鈥� Phoenix Mayor Kate Gallego said at the announcement. 鈥淲e are talking about the kind of jobs that we all want for this community.鈥�

The philanthropic contribution will come from the Arizona Community Foundation, which is leading the creation of a $5 million fund in partnership with other community-based organizations for equitable workforce development initiatives. The fund is designed to support 1,500 non-traditional-talent and underserved residents with training to enter in-demand jobs. The fund will provide grants to organizations that provide wrap-around services for workforce training and attainment.

The announcement also included news of a new collaboration between the Phoenix Union High School District and the West Maricopa Education Center, also known as WestMEC, to enable high school students to access in-demand advanced manufacturing credentials. Under the program scheduled to launch next fall, students will be able to earn certifications that will make them competitive for jobs in advanced manufacturing, with tuition covered by the state.

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Intel Corp. and United Microelectronics Corporation, a prominent global semiconductor foundry, have announced a collaboration to develop a 12-nanometer semiconductor process platform targeting high-growth markets like mobile technology, communication infrastructure, and networking. 

The new process node will be developed and manufactured in Fabs 12, 22 and 32 at Intel鈥檚 Ocotillo Technology Fabrication site in Chandler. Intel says that utilizing existing equipment in these fabs will significantly reduce initial investment requirements and enhance operational efficiency.

Production of the 12 nm process is anticipated to commence in 2027.

The new collaboration between Intel and UMC will provide global customers with new options for accessing semiconductors across different geographical locations beyond Taiwan. 

鈥淚ntel鈥檚 strategic collaboration with UMC further demonstrates our commitment to delivering technology and manufacturing innovation across the global semiconductor supply chain and is another important step toward our goal of becoming the world鈥檚 second-largest foundry by 2030,鈥� said Stuart Pann, Intel senior vice president and general manager of Intel Foundry Services.

Production will benefit from UMC鈥檚 extensive process leadership over decades and its track record of offering customers Process Design Kit (PDK) and design support to effectively deliver foundry services. 

鈥淭his effort will enable our customers to smoothly migrate to this critical new node, and also benefit from the resiliency of an added Western footprint,鈥� UMC Co-President Jason Wang said. 鈥淲e are excited for this strategic collaboration with Intel, which broadens our addressable market and significantly accelerates our development roadmap leveraging the complementary strengths of both companies鈥� 

Both companies will collaborate to meet customer demand and support the 12 nm process by facilitating electronic design automation and intellectual properties solutions from ecosystem partners.

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Amkor, the leading American provider of outsourced semiconductor assembly and test (OSAT),聽has unveiled plans to construct an innovative packaging and testing facility in Peoria, Arizona. Amkor estimates it will invest around $2 billion and create 2,000 jobs at the new facility.聽

Apple will be the first and largest customer of the new facility.

鈥淎pple is deeply committed to the future of American manufacturing, and we鈥檒l continue to expand our investment here in the United States,鈥� Jeff Williams, Apple鈥檚 chief operating officer. 鈥淎pple silicon has unlocked new levels of performance for our users, enabling them to do things they could never do before, and we are thrilled that Apple silicon will soon be produced and packaged in Arizona.鈥�

The city of Peoria, the Arizona Commerce Authority, and government authorities have strongly backed the project as part of Arizona鈥檚 growing semiconductor ecosystem, creation of high-tech employment opportunities, and enhancement of economic vitality in the Phoenix metropolitan area and beyond.

鈥淚t is no secret that our nation is reshoring its advanced manufacturing industries. We are proud of Peoria鈥檚 global leadership in this movement, and the significant capital investment and quality jobs that it brings to our community,鈥� Peoria Mayor Jason Beck said. 鈥淭his tremendous announcement is a credit to the City Council鈥檚 commitment to economic development, and staff鈥檚 hard work and dedication on this project.鈥�

Amkor initially established itself in the Greater Phoenix region in 1984 and is enthusiastic about broadening its influence in Arizona’s advancing semiconductor sector. This new manufacturing site will strategically position Amkor within a thriving network of front-end fabs, IDMs, and suppliers that already exist or are expanding in the area, such as TSMC, Intel, Applied Materials, ASML, and other key players.

Amkor has applied for funding through the CHIPS Act, which allocates around $280 billion in funding to enhance domestic semiconductor research and manufacturing within the United States. This includes $39 billion in incentives to support chip production within the country, a 25% investment tax credit for manufacturing equipment expenses, and $13 billion designated for semiconductor research and workforce training. The primary objective is to address the competitive challenge posed by China in this sector.

鈥淎mkor鈥檚 announcement is a historic step forward for Arizona that will bolster America鈥檚 national security and build a more resilient supply chain, bring billions of dollars into our state, and create thousands of good-paying jobs for Arizona workers,鈥� Governor Katie Hobbs said. 鈥淲ith this project, one of the most significant investments in advanced packaging in America, Arizona will solidify itself as a world leader in the semiconductor industry. I was glad to meet with the Arizona Commerce Authority and Amkor leadership in South Korea to discuss future investments in Arizona and am proud to have them as a partner. Together, we鈥檒l continue to expand the semiconductor ecosystem and continue Arizona鈥檚 long history of leadership in the advanced manufacturing sector.鈥�

As for Apple, the company鈥檚 investments in advanced manufacturing are part of the commitment the company made in 2021 to invest $430 billion in the U.S. economy over five years. Today Apple is on pace to meet its target through direct spending with American suppliers, data center investments, capital expenditures in the U.S., and other domestic spending.

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In a recent letter sent to the White House, the Arizona Chamber of Commerce & Industry and Arizona Manufacturers Council joined a coalition of business groups led by the National Association of Manufacturers in opposition to the Environmental Protection Agency鈥檚 proposed revised regulation of air particles that are less than 2.5 micrometers in diameter, also known as particulate matter 2.5 or PM2.5.

The new standard would severely constrict economic development by limiting the issuance of permits for new major construction projects like those made possible by the bipartisan infrastructure law and the CHIPS and Science Act, and would undermine manufacturers鈥� capacity to invest in modern technologies that tackle air quality issues, decrease emissions, and safeguard the environment, all while safeguarding manufacturing jobs and fostering economic growth.

Thanks to innovations in air quality management, PM2.5 levels have dropped a full 42% since 2000 according to EPA鈥檚 2022 Air Trends and National Emissions Inventory report.

EPA鈥檚 proposed regulations are estimated to threaten $162.4 billion and $197.4 billion worth of economic activity, potentially jeopardizing 852,100 to 973,900 existing jobs according to .

The letter highlights that PM2.5 emissions in the U.S. often originate from nonpoint sources like wildfires and road dust. The impact of Canadian wildfires on U.S. air quality, for example, surpasses that of industrial sources. 

Compliance with existing and potential new standards becomes challenging due to the influence of nonpoint emissions on the federal government鈥檚 determinations of whether an area should be found to be in nonattainment. The business groups argue that EPA鈥檚 Regulatory Impact Analysis lacks sufficient controls for achieving proposed standards nationwide.

Despite nonpoint sources being the main culprits, the coalition says the cost of compliance falls solely on certain entities, impacting job creation, innovation, and investment. 

Economic impacts will be localized, hindering new manufacturing facilities and jobs due to stricter standards. About 22% of U.S. counties could be deemed out of compliance, and even areas meeting proposed standards would have little room for new economic development.

The letter also raises concerns about the impracticality of standards set at background levels, making it nearly impossible for industries to comply since even minimal emissions could push an area out of attainment. This could lead to adverse outcomes like potential relocation of new facilities to countries with lower air quality standards, contradicting economic and environmental goals. 

鈥淢anufacturers across Arizona and the country are willing partners in the EPA鈥檚 efforts to improve air quality. Our processes are cleaner and more innovative than they鈥檝e ever been,鈥� Arizona Manufacturers Council Executive Director Grace Appelbe said. 鈥淏ut we can鈥檛 comply with regulations that are unattainable. The administration needs to maintain the existing standard to allow for much needed economic growth.鈥�

Image courtesy dave_7 from Lethbridge, Canada, CC BY-SA 2.0 <https://creativecommons.org/licenses/by-sa/2.0>, via Wikimedia Commons

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The Boeing AH-64 Apache Helicopter was crowned the inaugural 鈥淗ottest Thing Made in Arizona鈥� at a special reception last week hosted by the Arizona Chamber of Commerce & Industry and Arizona Manufacturers Council. Gov. Katie Hobbs was on hand to make the announcement and congratulate the winner and other finalists.

The competition was part of Manufacturing Month, the October-long celebration of Arizona’s thriving manufacturing sector. The contest, which garnered thousands of online votes, highlighted and acknowledged the remarkable contributions of the state鈥檚 manufacturing industry, which employs more than 630,000 people and injects more than $77 billion into the Arizona economy annually.

The backdrop for this exciting event was the Made in Arizona Tour, a two-day tour that granted attendees an exclusive glimpse into the inner workings of some of the state鈥檚 most prominent manufacturers. The tour showcased the innovation and industry of various companies, including Swire Coca-Cola, Viavi Solutions, NXP Semiconductors, Boeing, and Nammo Defense Systems, all of which play a pivotal role in elevating Arizona鈥檚 manufacturing sector.

The three contest finalists encompassed a wide array of industries, reflecting the diversity of the state鈥檚 manufacturing environment. They were:

• Lucid Air Sapphire – Representing the burgeoning electric vehicle sector, Lucid鈥檚 creations give a glimpse of the future of automobile manufacturing where luxury craftsmanship combines with a light carbon footprint.
• Boeing AH-64 Apache Helicopter 鈥� An enduring emblem of the aerospace and defense industry, the Apache makes the world a safer place.
• PING G430 Max Driver 鈥� The go-to choice for professionals and weekend duffers alike, PING showcases Arizona鈥檚 contribution to the world of custom sports equipment.

鈥淐ongratulations to Boeing for winning this inaugural recognition of all that Arizona’s manufacturing sector has to offer. The finalists, which represented industries as varied as electric vehicles, sporting equipment, and aerospace and defense, are just the tip of the iceberg when it comes to the depth and breadth of the state’s manufacturing sector,鈥� AMC Executive Director Grace Appelbe said. 鈥淚 anticipate that next year’s competition will also feature a wide range of products showing off the creativity and innovation of Arizona manufacturers.鈥�

The Hottest Thing Made in Arizona competition and the accompanying Made in Arizona Tour were components of Arizona Manufacturing Month, a month-long celebration dedicated to honoring the diverse and dynamic world of manufacturing within the state. Earlier in the month, the AMC recognized several exceptional manufacturers during its annual Manufacturer of the Year Awards. The event served as a platform for acknowledging excellence of small, medium, and large manufacturing sectors, as well as outstanding achievements in sustainability and innovation.

Queen Creek Mayor Julia Wheatley received the title of Manufacturing Champion, a testament to her advocacy for manufacturing and economic development within her community and the state.

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