
December 16, 2024
A change in national leadership is often accompanied by changes – opportunities and challenges that ripple across states and industries.
With President Donald Trump set to return to the Oval Office in 2025, the manufacturing sector is anticipating some significant changes to policies directly impacting them, both at the state and national levels.
Manufacturing is a crucial aspect of Wisconsin’s economy, with nearly 9,200 manufacturing plants employing more than 574,000 workers and a contribution of almost $70 billion annually – ranking Wisconsin second in the U.S. for manufacturing employment concentration.
The high percentage of the workforce employed within the manufacturing industry indicates the increasingly significant role manufacturing plays in the state’s overall economy.
Therefore, as companies plan for the future, accounting for anticipated changes sparked by a change in administration is a necessary part of the strategic planning process.
Anticipated policy changes
The National Association of Manufacturers (NAM) has noted that previous tax reforms under President Trump, specifically the Tax Cuts and Jobs Act of 2017, positively impacted wages and investments in manufacturing.
Crediting those statistics and the promises made throughout the election, many manufacturers are optimistic about potential collaboration with the new administration to address challenges the industry is facing, such as rising business costs, regulatory burdens and energy policies.
The prioritization of economic growth through tax cuts and deregulation is a highly anticipated change by many manufacturers.
The anticipated decrease in corporate tax rates is expected to create a more favorable environment where businesses can expand and innovate.
For instance, the Tax Cuts and Jobs Act of 2017 reduced the corporate tax rate from 35% to 21%, which has been linked to a significant increase in capital investments – estimated at
about 20% for firms experiencing average tax changes – and job creation within the manufacturing sector.
This approach aims to encourage domestic production and bolster the competitiveness of U.S. manufacturers, allowing them to better contend in a global market.
Regulatory environment
Some manufacturers are particularly concerned about regulatory burdens that could potentially hinder growth.
Pursuing an aggressive deregulatory agenda, as is anticipated, could likely include rolling back regulations established by the current administration, as well as revisiting former regulations. Specific areas of focus could include:
- Right-to-repair laws, which could be potentially disruptive to supply chains and intellectual property protection
- Overhaul, Maintenance, Modification and Repair (OMMR) contract regulations
- Environmental regulations, with potential rollbacks of emissions standards for power plants, vehicles and energy production
Additionally, a comprehensive review of federal regulations affecting various industries, including manufacturing, is likely to be on the agenda.
Energy policies
Energy policy will be a critical area of focus under the new administration, with the potential to significantly impact the manufacturing sector.
While President Trump has expressed intentions to expand fossil fuel production, there’s growing recognition that a balanced approach incorporating both traditional and renewable energy sources could offer the best path forward.
This hybrid strategy could provide manufacturers with stable, affordable energy prices crucial for maintaining competitiveness, while also addressing environmental concerns and long-term sustainability.
Workforce development
It’s no secret that one of the most pressing challenges facing manufacturers is workforce shortages.
Implementing policies aimed at enhancing vocational training and education programs to better prepare workers for jobs in manufacturing is critical.
This could involve partnerships with educational institutions to align curricula with industry needs, ensuring a skilled workforce ready to meet the demands of modern manufacturing.
There is hope and optimism throughout the industry that the Trump administration will agree to reform some policies, particularly the H-1B skilled-worker visa program.
Streamlining this program could help attract global talent and fill critical skill gaps in the manufacturing sector, further supporting economic growth and innovation.
Insights from industry leaders
As the owner/CEO of Imaginasium, I look forward to helping develop strategic growth plans for manufacturers and advocating for favorable economic policies and business environments.
We can drive measurable industry expansion while showcasing the industry’s vital contributions to the broader economy.
As one would imagine, there is a collective desire among Wisconsin manufacturers to remain competitive on a national level.
I believe collaboration between manufacturers and all levels of government is essential.
By focusing on strategic solutions tailored to the unique needs of Wisconsin’s manufacturing landscape, businesses can position themselves for success under any new administration.
Conclusion
As President Donald Trump prepares to take office again, Wisconsin’s manufacturing sector stands at a crossroads as they anticipate policy shifts.
Manufacturers who are up to date on these policies and are ready for these and any other potential changes are poised to adapt and thrive in this evolving landscape.
The collaboration between industry leaders and the new administration will be crucial in shaping a prosperous future for manufacturing in Wisconsin and beyond.
With the upcoming changes presenting both opportunities and challenges, stakeholders must remain engaged and proactive in advocating for policies that support sustainable growth for manufacturing in Wisconsin.