Remarks of the Honorable John Engler

President and CEO of the National Association of Manufacturers

before the

U.S. House of Representatives Committee on Standards and Official Conduct

June 7, 2006

Chairman Hastings, Members of the Committee, thank you for the opportunity to be with you today.

I am John Engler, President of the National Association of Manufacturers, a 501(c)(6) tax exempt trade association. We were formed in 1895 in Cincinnati, Ohio, and for the past 110 years we have played a unique role in promoting a strong manufacturing economy and economic growth, resulting in higher living standards for all Americans.

The NAM represents more than 14 million workers in the manufacturing economy. Every day, the members of our Association and our staff exercise our Constitutional right to “petition the government.”

In simple terms, we lobby Congress and the executive branch to educate and inform about the impact of legislation, executive actions or proposed policies affecting manufacturing in this country.

To help make our case, the NAM has traditionally sponsored educational visits to manufacturing facilities throughout the country.

This allows Members of Congress and their staff to learn firsthand how we make world-class products in America.

Since nearly all of these manufacturing facilities are located outside of Washington, D.C., it is necessary to travel to get to them.

The formula for such plant tours is quite straightforward.

One: Trips take place during congressional recesses.

Two: NAM picks plant locations and arranges the tours with the manufacturers – our member companies.

Three: Twelve-to-15 congressional staff members are selected and commit to participate.

Four: All trips are approved beforehand by the House Committee on Standards of Official Conduct or the Senate Select Committee on Ethics.

Five: Congressional staff members see and experience things they have never before seen and experienced, and return to Washington better able to advise Members on issues related to manufacturing.

Six: The NAM provides all required information in a timely fashion for staffers to file their disclosure report.

Allow me to provide two examples. During a congressional tour in the Greater Chicago Area in 2005, NAM member companies hosted 15 staff members on a series of plant visits and policy discussions.

One stop on the tour included a visit to Quality Float Works, a 90-year old, family-run manufacturing facility with 20 employees who make liquid leveling devices. 

We spent 45 minutes on the shop floor, watching the unique manufacturing and welding process and then another 45 minutes discussing policy challenges facing the company. 

The company’s top two issues are repeal of the death tax and high health care costs.

Along with this visit to a small facility, we also toured Illinois Tool Works’ Signode facility, where the staff members viewed the production of steel strapping and related special products. 

Illinois Tool Works is a global producer of products and systems that add value to other manufacturers' products; the company operates more than 600 manufacturing facilities around the world. 

Its top two issues are the cost of steel and the high cost of health care.

For the record, I am submitting an official itinerary of our tour, which will give you a full description and timeline.

You can see that these tours provide valuable, firsthand education about the importance of manufacturing to our nation’s economy. Conducted on a bipartisan basis, they offer congressional staff members unfettered access to company leaders and employees at manufacturing facilities.

Even before the House passed H.R. 4975, The Lobbying and Transparency Act of 2006, on May 3rd, the debate leading up to the adoption of the legislation had a chilling effect.

The NAM was forced to suspend our educational trips for the remainder of the year due to a devastating drop in participation.

These regrettable cancellations happened despite the fact that the main provision of section 301 of H.R. 4975 would allow travel by Members, officers, and employees related to their official duties and paid for by a private source if the trip was certified ahead of time as in compliance with House rules.

Mr. Chairman and members of the Committee, since 2003 the NAM has voluntarily complied with the intent of section 301. Still, our program could not continue this year because of the travel bans by personal congressional offices, an apparent Leadership moratorium, and staff reluctance to be seen traveling anywhere.

The NAM has played by the rules – even before there were rules. I am pleased to note that the official itinerary I just submitted to the record was in fact approved by the House Committee on Standards of Official Conduct and the U.S. Senate Select Committee on Ethics.

I have copies of those signed committee approval forms for submission as well.

Mr. Chairman and Members, ending these tours will impede the ability of the NAM membership to provide input on issues before Congress that directly affect the livelihoods of Americans and our country’s economic welfare, and it will result in Members of Congress losing the expertise that their staff can acquire.

Globalization requires that elected leaders see firsthand how manufacturing facilities operate and what challenges they face from international competition.

I see it as an obligation for members of Congress and their staff to understand the economic sector that provides growth and stability for our nation’s economy.

The only way to meet that obligation is to walk the plant floors and observe and learn how things are made in America.

Legitimate educational trips and fact-finding missions will help Congress better reach decisions that reflect the realities of the workplace and this nation’s manufacturing economy. Regardless of the cause, ending these educational visits would benefit neither Congress nor the American people.

Thank you.

-###-