In the wake of the 2016 presidential election, manufacturing business leaders have made their priorities clear to the incoming Trump administration, calling for a reduction in regulations, the closing of the U.S.-Mexico border, and lower corporate taxes. An unscientific poll conducted by IndustryWeek revealed that many individuals involved in the manufacturing industry see these policies as crucial for boosting economic productivity and competitiveness. The push for reducing regulations was particularly prominent, reflecting the sector’s longstanding grievance that excessive bureaucratic hurdles impede manufacturing efficiency and growth.
Reducing Regulations: A Longstanding Priority
The desire to cut regulations has been a consistent theme in the business community, especially within the manufacturing sector. Manufacturers have argued that stringent regulations create unnecessary burdens, increase production costs, and hamper innovation. They believe that a less regulated environment would significantly increase operational efficiency, allowing businesses to focus more on production and less on compliance. This sentiment was echoed in the IndustryWeek poll, where reducing regulations emerged as the most favored policy among respondents. Many manufacturers argue that deregulation would attract more investment to the sector, spur job creation, and enhance the overall competitiveness of American manufacturing on the global stage.
While the focus on reducing regulations is a common thread in industry circles, other priorities have also garnered attention. The call to close the U.S.-Mexico border, though polarizing, reflects concerns about trade dynamics and labor practices. Moreover, the manufacturing sector has shown an interest in lowering corporate taxes, arguing that high tax rates stifle investment and expansion. A more business-friendly tax environment, they contend, would enable American manufacturers to reinvest their savings into their operations, upgrading equipment, expanding facilities, and hiring more workers. This, in turn, would boost the sector’s output and contribute to broader economic growth.
Immigration Reform and Trade Tariffs: Mixed Responses
The poll results also highlighted mixed feelings about trade tariffs and immigration reforms. Interestingly, there was less enthusiasm for higher trade charges on Chinese imports and for modernizing and rebuilding the U.S. military, despite the industry’s ties to defense spending. Another point of contention was Trump’s promise to deport undocumented immigrants. Many trade organizations and the National Association of Manufacturers advocate for more comprehensive immigration reform. They argue that the current labor shortage in the U.S. manufacturing sector necessitates retaining potential workers rather than pursuing mass deportations.
Furthermore, many within the industry believe that imposing high tariffs on imported goods, particularly from China, could have unintended consequences. While tariffs aim to protect domestic industries, they can also lead to increased costs for raw materials and components, ultimately making American products less competitive. This has led some manufacturers to call for a more balanced approach to trade policy, one that protects domestic interests without triggering reciprocal tariffs or trade wars.
Overall, the key takeaway from the survey is that manufacturers prefer regulatory cuts over higher trade tariffs or increased military spending. They also favor pragmatic immigration policies that address labor shortages rather than mass deportations. This diverse set of priorities paints a nuanced picture of the manufacturing sector’s needs and desires as it looks to the Trump administration for policies that will foster a more business-friendly environment. Manufacturers firmly believe that such measures are essential for revitalizing the industry and ensuring its long-term competitiveness in the global market.
