If President Donald Trump is able to renegotiate trade deals to be more U.S. friendly during his first 100 days in office, it is both good and bad news for American manufacturing. On the one hand, corporate income tax will probably be reduced to 15%. That should be plenty of incentive for U.S. manufacturers to create jobs in the U.S. On the other hand, an import tax of 35% will probably be applied to U.S. manufacturers who continue to produce abroad and bring those products back into the U.S.

This import tax will put you and your company at a distinct price advantage against these companies, but only if you are ready.

If you are a small to mid-size manufacturer that does not produce abroad, it is all good news…but only if you are ready for the onslaught of new business that could come your way. Here are five steps you should immediately take:

  1. Ramp up your manufacturing capacity right now. If you have longer lead times for raw materials or work in process, now is the time to prepare for the coming demand.
  2. Start the recruiting process for additional employees. Assume that a fair amount of training will be involved so you need to get them in place early so you have time to train them.
  3. Prepare marketing and promotional programs to alert the market and your customers that you are ready to meet the demand.
  4. Differentiate yourself from your competition early in the game. If you are competing against the import tax group from abroad, the “buy America” angle will look really well. Play that up early and often. 
  5. Play the “let’s help make America Great Again” campaign for all that it is worth. Hop on the Trump train and position your company as the company that is helping Make America Great Again - and invite your customers to be part of that effort.

You may need additional capital to make this investment. Now is the time to talk to the banks and get your credit lines in place. When you need credit is not the time to ask for it. When you go the bank be sure and have solid projections to show them about how much market share and additional profit you are targeting. And I would suggest a revolving line that you only pay for when you use it.

One last tip: the other thing you should be ready for is the massive infrastructure build that will take place in the first year of the Trump administration. Almost any American manufacturer will benefit from this, but only if they are ready.

Tip provided by Steven L. Blue

Steven L. Blue is the President & CEO of Miller Ingenuity, an innovative company revolutionizing traditional safety solutions for railway workers, and author of the new book, American Manufacturing 2.0: What Went Wrong and How to Make It Right.

For more information, please visit www.SteveBlueCEO.comwww.milleringenuity.com 

Upcoming Events

August 9 - August 11 2022

MaximoWorld 2022

View all Events
80% of Reliabilityweb.com newsletter subscribers report finding something used to improve their jobs on a regular basis.
Subscribers get exclusive content. Just released...MRO Best Practices Special Report - a $399 value!
“Steel-ing” Reliability in Alabama

A joint venture between two of the world’s largest steel companies inspired innovative approaches to maintenance reliability that incorporate the tools, technology and techniques of today. This article takes you on their journey.

Three Things You Need to Know About Capital Project Prioritization

“Why do you think these two projects rank so much higher in this method than the first method?” the facilitator asked the director of reliability.

What Is Industrial Maintenance as a Service?

Industrial maintenance as a service (#imaas) transfers the digital and/or manual management of maintenance and industrial operations from machine users to machine manufacturers (OEMs), while improving it considerably.

Three Things You Need to Know About Criticality Analysis

When it comes to criticality analysis, there are three key factors must be emphasized.

Turning the Oil Tanker

This article highlights the hidden trap of performance management systems.

Optimizing Value From Physical Assets

There are ever-increasing opportunities to create new and sustainable value in asset-intensive organizations through enhanced use of technology.

Conducting Asset Criticality Assessment for Better Maintenance Strategy and Techniques

Conducting an asset criticality assessment (ACA) is the first step in maintaining the assets properly. This article addresses the best maintenance strategy for assets by using ACA techniques.

Harmonizing PMs

Maintenance reliability is, of course, an essential part of any successful business that wants to remain successful. It includes the three PMs: predictive, preventive and proactive maintenance.

How an Edge IoT Platform Increases Efficiency, Availability and Productivity

Within four years, more than 30 per cent of businesses and organizations will include edge computing in their cloud deployments to address bandwidth bottlenecks, reduce latency, and process data for decision support in real-time.

MaximoWorld 2022

The world's largest conference for IBM Maximo users, IBM Executives, IBM Maximo Partners and Services with Uptime Elements Reliability Framework and Asset Management System is being held Aug 8-11, 2022