RSM McGladreyRSM McGladrey

Network Forum 2006Network Forum 2006Chicago, ILChicago, IL

June 6, 2006June 6, 2006

Patrick J. Cleary,Patrick J. Cleary,Senior Vice President, Senior Vice President,

Communications & Media, NAMCommunications & Media, NAM

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Fun Facts About Manufacturing:Fun Facts About Manufacturing:

Over One-eighth (13%) of Over One-eighth (13%) of GGross ross DDomestic omestic PProductroduct

• 80% > retail

• 175% > transportation and utilities

• 88% > construction, mining and agriculture

Standing alone, it is:Standing alone, it is:

The world’s 8The world’s 8thth largest economy 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 Manufacturing is responsible for nearly two-thirds (62%) of all U.S. exports of goods and services.(62%) of all U.S. exports of goods and services.

Manufacturing is responsible for Manufacturing is responsible for three fifthsthree fifths of all of all industrial R & Dindustrial R & D

Manufacturing is responsible for Manufacturing is responsible for 90%90% of all of all patents.patents.

-Agriculture: $60billion/yearly

-Manufacturing: $60billion/monthly

Manufacturing employs Manufacturing employs 14 million people14 million people

LEAN NOT SPOKEN HERE

Principles of LeanPrinciples of Lean

““Define Values”Define Values”

““Eliminate Waste to Make Value Eliminate Waste to Make Value Flow”Flow”

Reduce the costs of doing business Reduce the costs of doing business in the USin 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)

Legal Costs (2% of GDP)Legal Costs (2% of GDP)

Larger than the economies of: Larger than the economies of: Hong Kong Hong Kong HungaryHungaryVietnam Vietnam VenezuelaVenezuelaPortugalPortugal PeruPeruAlgeria Algeria IsraelIsraelRomaniaRomania IrelandIrelandCzech RepublicCzech Republic MoroccoMoroccoDenmarkDenmark NigeriaNigeriaChileChile KazakhstanKazakhstanNorwayNorway SingaporeSingaporeFinlandFinland BelarusBelarus…………..and 173 others..and 173 others

Energy Cost – Natural GasEnergy Cost – Natural Gas

Energy Cost - ResourcesEnergy Cost - Resources

Our MessageOur Message

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

““Just because you do not take an interest in politics Just because you do not take an interest in politics doesn’t mean politics won’t take an interest in you.”doesn’t mean politics won’t take an interest in you.”

-Pericles-Pericles““The penalty that good men pay for not being interested The penalty that good men pay for not being interested in politics is to be governed by men worse than in politics is to be governed by men worse than themselves.”themselves.”

-Plato-Plato

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