NEMRA, NECA, NAED, NEMA Meet ton Industry Initiatives

At the NAED National, back in May, four of the electrical distribution industry’s associations (NEMRA, NAED, NECA, and NEMA) came together and signed an MOU (Memorandum of Understanding) that essentially said they were going to work together on some macro-industry initiatives where, theoretically, they could speak with one voice to have a greater megaphone, perhaps aggregate some funding, and, perhaps, leverage some relationships and / or expenses.

Major areas that were discussed where there could be efforts related to:

• Washington (and lobbying) where many interests align … and probably some don’t
• Electrification policy
• Workforce efforts … because, long-term, we need more electricians to get the work done
• Data quality
• Supply chain optimization

and others were discussed as “potentially.” Some of this “cross-association” dialogue was initiated a few years ago between NEMRA and NECA.

Recently the presidents of the four signatories visited Washington to have a strategy session and, perhaps more importantly, spend some time on Capitol Hill.

Jim Johnson, President of NEMRA, shared thoughts in this press release:

“Following the signing of the May 2024 Memorandum of Understanding (MOU) between NEMA, NEMRA, NAED, and NECA, the leadership teams from each association, along with Southwire President and CEO Rich Stinson, gathered in Washington, D.C., last week for a strategic planning session. The meeting centered around shared priorities, which culminated in visits to Capitol Hill to advocate for key legislative initiatives.

The morning session engaged the team to work collaboratively on three key issues:

• Workforce Development
• Supply Chain Optimization
• Electrification Policy Advocacy

During the session, participants worked to align goals, establish milestones, and define responsibilities for each initiative. Discussions led to the identification of clear wins, clarified association roles, outlined key activities, and set project timelines. Additional details on these initiatives will be shared at the upcoming NECA National Convention in San Diego, CA.

In the afternoon, the team had a full slate of meetings with Members of the Senate and House of Representatives.

• First up, was Senator Bill Cassidy (R-LA), Ranking Member of the Senate Health, Education, Labor, and Pensions Committee, and a member of both the Energy and Natural Resources Committee and the Finance Committee (the chamber’s tax-writing committee.) The group discussed energy supply and demand, electrification, permitting reform, workforce issues, and the need to maintain a favorable tax environment.
• Next, we met with Senator Peter Welch (D-VT), who has been very active on workforce issues and recently participated in an event with the Brookings Institute and NEMA entitled, “The energy transition and workforce development in the US.”  Senator Welch demonstrated a strong understanding of the workforce challenges and expressed his commitment to addressing the shortages faced by the industry.
• The MOU partners then met with Rep. Jason Smith (R-MO), Chairman of the House Ways and Means Committee, which is responsible for tax policy.  Chairman Smith has been hard at work with his committee members on a series of field hearings to understand the need for continuation of pro-business tax policies that impact our members and evaluating the effectiveness of the tax credits included in the Inflation Reduction Act.  This includes the corporate rate, the 199a deduction for pass though businesses, extension of the full deductibility of the R&D tax credit and protecting the alternative energy tax credits that incentivize electrification. The group also had the opportunity to impress upon Chairman Smith the importance of maintaining many of the tax credits in the IRA that have been instrumental in advancing the electrification of America.
•  A productive discussion followed with Rep. Burgess Owens (R-UT), a rising star in the Republican caucus and likely the next chairman of the House Education and Workforce Committee.  Rep. Owens was very engaged and passionate about crafting policies that will help young workers consider careers in the trades and was interested to learn what our members are doing to recruit and retain talent.
• The day on the Hill concluded with a meeting with Congressman Adrian Smith (R-NE, a member of the House Ways and Means Committee.  Discussions emphasized the need for continued pro-business tax policies established in the Tax Cuts and Jobs Act and the Inflation Reduction Act.

Overall, the week in Washington was a productive step forward, but it’s just the beginning. The MOU partners committed to meeting quarterly to further strengthen relationships and continue advancing these shared priorities. More updates will follow soon!”

Thoughts

When the MOU was announced, feedback from many manufacturers and distributors was “it’s good that the associations are finally talking to each other.” So, progress has been made which infers that there could be a path to executable deliverables.

Talking to Washington is nice, and, if you follow NEMA and NECA, they have had some legislative successes over the years in influencing policy, so this gets NAED and NEMRA some insights. Jim Johnson has been very involved in the Small Business Legislative Council advocating for independent manufacturer representatives, and small businesses in general, and has made regular trips to Washington over the years.

Personally, the most intriguing phrase in NEMRA’s press release is “Additional details on these initiatives will be shared at the upcoming NECA National Convention in San Diego, CA.” followed by “More updates will follow soon!” This can get to

1. can associations come together and collectively make actionable decisions
2. can they sell their members on the direction and generate support / adoption / utilization.

It’s presumed that additional funding will be necessary to execute what is conceived. Perhaps there will be requests for funding. The key is taking the first step and assigning resources.

And as an avid channel supporter, Channel Marketing Group is open to supporting NEMRA, NAED, NEMA and NECA’s efforts, and utilizing ElectricalTrends as a vehicle for sharing, and collecting, information to support the channel.