Pennsylvania’s manufacturing output totaled at $93.75 billion in 2018, according to the latest data from the National Association of Manufacturers. It is one of the highest-grossing sectors in the state and is thus vital for maintaining its local economy, especially in Kersey. The federal government focusing on domestic manufacturing sounds good on paper.
But with severe restrictions on all imports, especially those from China, the supply chains of those same sectors can be disrupted. In the end, it will come down to who will hold the reins after the election this November, and how legislators on the state level will work around that outcome.
Varied Methods, Though Same Intent
Whoever comes out on top in the 2020 election can enact different economic policies, although their end goals are the same. Both candidates want to see to it that American employment is preserved no matter who is elected. In July, Joe Biden showcased his strategy to restore domestic manufacturing and supply chains. He appended that in September when he added tax penalties for those who still choose to outsource, and tax credit for those who bring their operations back stateside.
This sounds very reminiscent of what President Trump would say regarding the issue. Trump, who had put tariffs on allies’ and rivals’ imports alike, was the one who promoted such policies back during his campaign in 2015, under the tagline of “America First.” Meanwhile, Biden seems to be proposing a tamer version of this philosophy. Whatever the case, it would seem that both are committed to improving domestic manufacturing as a whole.
Outcome of Industrial Businesses In Pennsylvania
On the subject of the tax credit, Pennsylvania officials had also begun talks with industry leaders about tax incentives for manufacturing. The House, along with the Senate Majority Policy, conducted a joint hearing to talk about the economic effects of the Local Resource Manufacturing Tax Credit. Industry leaders believe that using Pennsylvania’s dry natural gas resources for manufacturing will generate a significant amount of jobs. This, they say, will ultimately serve the overarching goal of current anti-outsourcing policies.
This is especially true for Kersey, where manufacturing plays a large part in the local economy. A sufficient tax break will provide more incentive for investors to take their business to PA. It will also relieve a considerable amount of financial burden from businesses. That will let them afford upgrades such as more advanced machinery and buying solid tires for skid steers.
The Future of Industrial Businesses in the U.S.
If Trump remains in office, the trade war with China will likely continue, and external trade will be limited. Biden says he will attempt to relieve the bad effects of sparse trade while still prioritizing American jobs and manufacturing. Whichever of them wins, however, their convictions and current economic policies align. This ensures that the industrial sector and American jobs as a whole will be given the attention they deserve.
The consensus is that increased domestic manufacturing can lead to good things for the economy. The point of contention is whether or not trade restrictions should be relaxed. Some propose alternate ways of competing with China’s economy, such as embracing open-source philosophies in design. Such methods, according to their proponents, will allow the US economy to compete overseas while avoiding the costs of a trade war.