Donald Trump, on the campaign trail, promised to "make America great again." One of those promises included bringing back American jobs in an effort to reignite U.S. manufacturing prowess lost to decades of companies going overseas. Trump's slate of campaign rhetoric included reworking trade deals, unfettering oil companies, bringing back coal and making America's working middle class a proud feather in his cap.
Unfortunately, U.S. manufacturing faces trying times in the face of Donald Trump's vision of America. The workforce in the manufacturing sector is growing old and getting ready to retire. Manufacturing isn't the same as it was 20 and 30 years ago when grunt work was more prominent. Now, better automation, robots and intuitive software make manufactured goods faster and for less money. The global economy is linked in an inexorable web that would be hard to undo.
Trump's presidency might affect U.S. manufacturing in several ways.
Infrastructure
Trump said he would use tax credits to help build infrastructure improvements in America. Trump's policies could help build roads, bridges, electrical wires, pipeline, train lines and more. He wants to invest $1 trillion over 10 years to accomplish this feat. Improving America's ailing infrastructure would create thousands of construction jobs. In terms of heavy equipment, U.S. manufacturing could see a lift as companies replace and create construction equipment and supplies for companies that need them. Every dollar spent on construction creates a $1.30 return on investment, so that's a good thing.
Technology
Tech companies may face harder times in the future with a Trump presidency. Many U.S. manufacturing firms rely on computer software from tech giants, such as IBM, Microsoft and Cisco, to run high-tech machines. The robotics, connected sensors and 3-D printers need software engineers to maintain the machines. Those companies rely on highly skilled and educated people from foreign countries to help run departments that bring technology to manufacturers.
While president-elect Trump promised to scale back on work visas for foreigners, that could hurt tech companies that try to attract the best and brightest people from all over the world. Trump must help foster manufacturing technology rather than hurt it if he wants the industry to thrive.
Energy
The energy industry stands to make gains from his pro-oil and pro-coal stances. However, Trump's policies may not have the booming effect he's looking for. Low fossil fuel prices may make oil and shale gas a bad investment for energy companies. He wants to expand hydraulic fracturing to make America independent of OPEC countries.
Auto Industry
One major arm of manufacturing in America comes from automakers. Trump plans to increase trade tariffs on Mexico, but that may make cars in America more expensive. Automakers ship jobs for parts to foreign countries because labor costs less, and the cars end up costing less for American consumers. Trump might hurt the auto industry with higher prices if he scales back trade deals or puts tariffs on foreign-made goods.
U.S. manufacturing stands at a precipice. It needs more high-tech workers and a better environment in which to grow. America has at least four years to determine if Trump the answer to a prayer, or if his policies make the situation worse.
Photo courtesy of Marc Nozell at Flickr.com
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