3/14/2016 3:04:00 PM
HEADLINES
NAM’s Raymond: Manufacturing Secrets Can Be Stolen on Flash Drive
A simple flash drive can give away your manufacturing secrets to competitors around the globe, the director of innovation policy for the National Association of Manufacturing warned the fastener industry.
Employees can be bribed by foreign companies or countries to turn over a flash drive that gives away company secrets that once would have filled a truckload, Brian Raymond told a joint session of the National Fastener Distributors Association and Pacific-West Fastener Association. Then a mirror factory somewhere else in the world can begin using the technology that a U.S. manufacturer developed.
“Government action is needed in updating the U.S. Privacy Act,” Raymond declared.
“Digital information flies around the world in a way that was not imaginable 30 years ago,” Raymond said.
Manufacturers have had to learn about cybersecurity and intellectual property theft. E-mails, pricing, business plans, customer information and company strategies are on computers and servers around the world. The manufacturer–customer relationship is built on the trust that strategic secrets will not be shared beyond the partners.
But Raymond is concerned the federal government is signaling its intent to access customer information of U.S.-headquartered manufacturers when that information is stored on servers outside the United States.
NAM supports the proposed bipartisan Law Enforcement Access to Data Stored Abroad Act – LEADS Act – to update current law by balancing needs of law enforcement and national security while securing the privacy of the communication between manufacturers and customers.
LEADS would update the Electronic Communications Privacy Act of 1986.
Without change, customers may choose not to do business with U.S. manufacturers because of the perception that information will be shared with the U.S. government.
“The bill will also safeguard Americans’ electronic data stored abroad and establish a balanced process for how U.S. law enforcement can obtain this data while respecting the sovereign rights of other countries,” Raymond said.
LEADS would “facilitate the flow of data across borders while also helping to reduce data-localizing efforts.”
NAM’s Manufacturers’ Center for Legal Action filed an amicus brief to overturn a ruling in favor of this government action. But during the legal challenge, “uncertainty continues to mount for the 95% of consumers who live outside U.S. borders—undermining the trustworthy relationship manufacturers have worked so hard to build around the world and our ability to compete in the global marketplace.”
Raymond joined NAM in 2011 after a career including policy roles with Rep. Anna Eshoo (D-CA), IBM and NetApp Corp.
The NFDA joined NAM’s Council of Manufacturing Associations for representation on government issues.
Innovation is helping U.S. manufacturers compete around the world, Raymond said. “Manufacturing = Innovation.”
The U.S. spends the most on R&D and holds the most patents, Raymond pointed out. “Smart cars and smart houses need manufacturing.”
Intellectual property is a company’s “most valuable asset” and U.S. innovation is “the envy of the world.”
“Data is the new oil or currency,” Raymond suggested.
Raymond cited NAM statistics that every dollar in manufacturing adds $1.40 to the U.S. economy.
Raymond forecast more 3D printing. Noting aerospace has been using 3D printing for more than a quarter century, 3D machinery is now more accessible to small manufacturers.
NAM has grown to 14,000 members interested in “what happens in Washington DC because impacts us in business,” Raymond said.
“Our goal is to make the U.S. the best place to manufacture.” Web: NAM.org
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