Revving Up 2024: What Manufacturers Need to Keep America Thriving
As the torch of American leadership enters the uncertainty of another election cycle, the manufacturing sector, a cornerstone of the nation’s economy, stands at a critical juncture. Jay Timmons, president and CEO of the National Association of Manufacturers (NAM), has laid out a clear blueprint for what the industry needs from the next administration to continue its upward trajectory and maintain its global dominance. Timmons’ insights, provided during a recent discussion on FOX Business, offer a roadmap that any aspiring occupant of the White House would do well to heed.
The 2017 tax cuts, enacted during former President Trump’s term, served as a much-needed adrenaline shot to the manufacturing sector. Timmons enthusiastically recounted how these tax reforms acted as “rocket fuel” for the industry, leading to record levels of investment, job creation, and wage growth. As the expiration date of these tax cuts looms in 2025, the manufacturing sector’s continued prosperity could be in jeopardy. Both sides of the political aisle are currently mulling over the possibility of raising taxes on manufacturers, a move Timmons warns could stifle growth and compromise America’s leadership position on the global stage.
Enter Donald Trump and his vice-presidential running mate, Senator JD Vance of Ohio, who have made it clear that renewing these tax cuts is a cornerstone of their campaign. With the NAM representing 14,000 member companies and a workforce of 13 million, the stakes couldn’t be higher. Timmons emphasizes the industry’s need for a top-down review of the myriad regulations that have become increasingly costly. Regulatory expenses, estimated at $350 billion annually, are hampering the sector’s ability to invest in new technologies, plants, equipment, and job growth. Smaller manufacturing businesses, which make up 74% of the sector and typically have fewer than 20 employees, feel the pinch even more acutely.
The current administration under President Biden, according to Timmons, has shown a willingness to listen to manufacturers’ concerns but has been slow to enact meaningful changes. This sluggishness is a cause for concern, especially as manufacturing additions in the upcoming August employment report are projected to be flat. With the average annual salary for manufacturing employees exceeding $98,000, the sector not only offers lucrative careers but also serves as a vital component of the national economy.
Looking ahead, Timmons and NAM plan to engage with both the Trump-Vance ticket and the Harris campaign. The objective is to ensure that whoever takes office comprehends the critical importance of maintaining tax cuts and conducting a thorough review of costly regulations. The future of American manufacturing, and by extension, the nation’s economic health, hinges on these pivotal issues.
In this high-stakes election, the manufacturing sector’s blueprint for success is clear but challenging. The next administration must prioritize policies that bolster investment, job creation, and wage growth while eliminating regulatory burdens. Timmons and the NAM are committed to advocating for these priorities, ensuring that the manufacturing sector continues to thrive and contribute robustly to America’s global leadership.
