One of the most polarizing elections in American history is now over and Donald Trump is the President of the United States. Trump promised to boost the American economy by bringing back jobs; however, the manufacturing industry has a right to remain skeptical of this promise. After all, it has been decades since American manufacturing was a strength of the economy. On the other hand, there are numerous reasons for Americans in the manufacturing industry to remain optimistic that manufacturing is on the rise. Numerous polls have already demonstrated that Americans are optimistic about the manufacturing outlook. Why is that?
President Trump has Promised to Lower Corporate Taxes
One of the biggest problems with the loss of manufacturing jobs to overseas is the high corporate tax rates imposed on American corporations, notably 35 percent. President Trump has promised to lower this tax rate to around 15 percent. This translates into more money in the pockets of the companies that they can then use to hire more employees and invest in the company. Companies may be interested in investing money in CNC automation technology. With lower corporate taxes, this can happen.
President Trump has Said he will Increase Infrastructure Spending
An increase in infrastructure spending will demand an increase in manufacturing jobs because, without the increase in manufacturing, there will be nothing to build this infrastructure out of. This means that companies will need to produce the materials used to build this infrastructure. This means more jobs in the manufacturing sector and more dollars heading into CNC manufacturing. There will be a significant amount of pressure on manufacturing companies to deliver the goods to fulfill the promises of the new president. This means a heavy investment in manufacturing jobs and manufacturing technology.
President Trump is Going to Renegotiate the Trans-Pacific Partnership
Also called the TPP, this agreement has drawn the ire of the entire manufacturing industry because this is seen as the culprit that led to the massive job loss and movement of manufacturing opportunities overseas. President Trump has promised to renegotiate this deal, leading to bigger benefits for US corporations that keep their jobs at home. This means that more companies are going to need to hire skilled manufacturing workers to fill these positions. Those interested in positions in the manufacturing industry should keep their eyes open for changes to this agreement.
President Trump will Alter the North American Free Trade Agreement
This deal has been called NAFTA and has led to a significant trade deficit with our trading partners. This deficit has placed a significant amount of pressure on American companies, specifically the manufacturing industry, because they feel they are fighting an uphill battle in the global market. A renegotiation of this deal in favor of American manufacturing could help to keep more companies in business, keeping more jobs available in the American economy. All of these reasons have combined to generate a positive outlook for the manufacturing industry under the new President.
Contact Tag Team Manufacturing today for all your cnc manufacturing needs. 303.841.5697.