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January 19, 2017 01:00 AM

AAM supports Trump on job creation

Tire Business Staff
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    WASHINGTON (Jan. 19, 2017) — In a letter to President-elect Donald Trump, the Alliance for American Manufacturing (AAM) has weighed in on how the new administration can promote the resurgence of U.S. manufacturing.

    The six-page letter, penned by AAM President Scott Paul, notes that "Buy American" provisions for government procurement and the prioritization of U.S. manufacturing in tax reform are among ways the administration can help.

    Other features of a strong pro-manufacturing program, according to the letter, would be:

    • Prioritizing trade enforcement;
    • Reducing global industrial overcapacity;
    • Prioritizing job creation in trade agreements;
    • Penalizing currency manipulation; and
    • Pinpointing and mitigating strategic domestic industry vulnerabilities.

    Since 2000, the U.S. has lost nearly one-third of its manufacturing jobs and more than 54,000 manufacturing facilities, according to the AAM.

    "(We have) seen our global market share in manufactured exports shrink from 14 percent in 2000 to 9 percent in 2013," Mr. Paul wrote. "...This is unsustainable, and we agree with you that it is both possible and desirable to create a policy framework to support a resurgent, Made-in-America manufacturing base."

    AAM photo

    Paul

    Mr. Trump's recent "Buy American and Hire American" remarks were greatly encouraging to U.S. manufacturers and manufacturing workers, according to Mr. Paul, who wrote that AAM members "stand ready to put these words into action."

    Closely allied with "Buy American" is Mr. Trump's pledge to invest in the U.S. infrastructure using American-made iron and steel. According to Mr. Paul's letter, roads, bridges and water systems are among those things that could benefit from the use of American-made steel.

    Mr. Paul, in quoting a June 2016 statement by the president-elect, emphasized how investments in infrastructure could strengthen the U.S. Manufacturing base: "A Trump administration will also ensure that we start using American steel for American infrastructure…This alone will create massive numbers of jobs."

    Reforming the tax code to be more favorable to domestic manufacturers is also crucial, according to Mr. Paul.

    "As Congress considers reforms to the corporate tax code, we must make sure manufacturers don't end up paying for a tax cut tailored for Wall Street and retailers," he wrote. "Manufacturing is the foundation of our economic strength and faces unique global competition."

    At the same time, the AAM noted that President Obama fell short of his pledge of creating 1 million new manufacturing-sector jobs during his presidency. The trade group put the net gain over the past eight years at 315,000 jobs, in contrast wiht the George W. Bush era, when the U.S. lost 4.3 million manufacturing jobs.

     

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