The Trump effect is kicking into high gear the closer we get to Inauguration Day with companies looking to move back to the U.S. given the president-elect’s proposed policies.
The Wall Street Journal reported:
Companies are increasingly exploring the economics of moving production to the U.S., as an overhaul of the U.S. tax code looms and President-elect Donald Trump calls out their peers for expanding abroad.
Fitbit Inc. in December met with one of the contractors that makes its fitness trackers. “We asked what the possibility of having them bring some manufacturing to the U.S. was,” said finance chief Bill Zerella, whose company sources its production in Asia.
A proposal to apply a border-adjustment tax to products that are imported into the U.S. while exempting exports is encouraging businesses to re-examine their supply chains. Contract manufacturers, which make products or components based on a client’s specifications, say there has been an uptick in calls asking them about the possibility of shifting some production to the U.S. since the election.
“We are starting to get more and more requests to do more analysis,” said Mike McNamara, chief executive of Flex Ltd., a Singapore-based contract manufacturer with operations around the world. While it’s early in the process, Mr. McNamara says he expects some manufacturing to be relocating to the U.S. “The conversations are incrementally building,” he said.
This is fantastic news. Trump’s simple policies have been needed for some time and if he follows through, it will be incredible to watch them finally come to fruition.
Manufacturing in the U.S. has been decimated over the years which has taken a devastating toll on the economic engine of the country — the middle class.
WSJ reported based on U.S. Bureau of Labor Statistics that manufacturing jobs as a percentage of the total private workforce have tumbled to 8 percent from 14 percent in 2000 and 27 percent in 1970.
Hopefully Trump sticks to his campaign promises and implements the America-first policies that got him elected. If he does, the U.S. could be in for an incredible several years and beyond.
We shall see.