Bayer Corp. CEO Calls for Action

Gregory Babe, CEO of Bayer Corp. recently gave a speech titled “The Importance of Strengthening U.S. Manufacturing,” at IndustryWeek’s IW Best Plants Conference. Below are some excerpts from his speech.

“Your father, like mine, built stuff. It’s what we do. It’s what gets us out of bed in the morning,” Babe said. He then warned that manufacturing could become a lost art, if we don’t act quickly.

“When we look at the long term, the events that impact our success, only 12% are within our control. Therefore we must reach outside of our factory doors to impact these decisions,” Babe said.

While some propose to increase taxes as a way to improve our economic situation, Babe disagrees. “We can’t tax our way to prosperity and we can’t wall out our competitors.”

In the area of Property Rights, Babe feels that the U.S. tax system is an obstacle to innovation, investment and job creation. “Our tax rate of 35% is the second highest of the OECD countries. Only Japan’s rate is higher than ours and most countries are lowering their rates.”

Babe calls for action. “We must start a conversation and keep it going. We need to talk with elected officials and thought leaders and regulators. We need talk with the general public and our employees.”

While organized groups such as the American Chemistry Council and the National Association of Manufacturing are lobbying for manufacturers, “we shouldn’t leave it to them to carry all of the water for us,” Babe said.

“Consider forming a PAC to support candidates. Write op-eds. Keep a dialog going with customers and suppliers and employees.”

“Employees can be the best ambassadors for political change.” Babe said that Bayer educates its employees through meetings that present all sides of an issue. He then asks them to become actively engaged. “Legislators pay very close attention to letters and calls they receive from the constituents.”

The decline of manufacturing in the U.S. isn’t an historical inevitability, Babe said. “In fact history teaches us that prosperity really is a choice. We can affect the factors that encourage economic growth or we can discourage them. The only question is whether we have the determination and the political will to keep it alive in America.” ◆