Input Stories

One Pennsylvania manufacturer was expecting the second Trump administration to fire up the American economy and bring his company a host of new orders. But the reality of the administration’s policies on trade have only harmed the business, JLS President and CEO and NAM Board Member Craig Souser told NBC News.

An unpleasant surprise: “It’s been the most bizarre roller-coaster ride, where our enthusiasm going into this year was sky-high, and then it was just like the air came out of the balloon,” said Souser.

• “Nobody saw the magnitude of this coming. I don’t know if it was his plan or not, who knows, but it took what we thought was going to be a rebound year and made it really bad. We have some business, but it’s nowhere near what we expected—and we’re not alone.”

Warning lights: Many economic indicators are flashing warning lights for the American economy, NBC noted.

• “Since Trump’s tariffs went into effect, manufacturing activity has declined to its lowest point in five months amid higher costs, falling revenue and a decline in exports, according to an April survey of manufacturers by the Institute for Supply Management.”
• “Separate surveys by the Federal Reserve also showed a manufacturing decline in several regions in April, and the Bureau of Labor Statistics found the manufacturing industry as a whole cut around 1,000 jobs last month, amid overall job growth.”

Higher prices: Some of the equipment that Souser’s food packaging company needs is simply not made by U.S. suppliers, he told NBC.

• “The key robotics equipment he needs to make his machines at his York, Pennsylvania, facility are made in Europe, and companies like his now have to pay a 10% tariff to import European products into the U.S. Souser said he has no choice but to pass that cost along to his customers in the form of higher prices,” according to the outlet.

Defense setback: Scott Livingston, president and CEO of HORST Engineering in East Hartford, Connecticut, is seeing price increases for the materials he uses to make components for aerospace and defense clients. However, he can’t raise prices to compensate due to the company’s long-term contracts and will have to absorb the costs directly.

• “I do think that there is some good that will come to existing U.S. manufacturers. However, if I cannot build the capacity because my input costs are now going up, what have we gained?” Livingston said.  

Better policy: The NAM has been calling for the Trump administration to advance a “comprehensive manufacturing strategy,” which includes crucial pro-manufacturing tax reform, regulatory rebalancing, energy dominance through permitting reform, workforce development and commonsense trade policy.