Marshall: Make U.S. manufacturing competitive again

Working people across manufacturing states like Wisconsin have spoken. They want change. They want jobs. They want to be part of a dynamic, growing economy. And it all begins with American manufacturing. Our newly elected leaders must come together to make U.S. manufacturing competitive again.

Now, more than ever, manufacturing is making important contributions to our economy. According to the National Association of Manufacturers, manufacturers contributed $2.17 trillion to the U.S. economy in 2015. For every $1 spent in manufacturing, another $1.81 is added to the economy. That is the highest multiplier effect of any economic sector. In addition, for every one worker in manufacturing, there are another four employees hired elsewhere. Taken alone, manufacturing in the United States would be the ninth-largest economy in the world.

But manufacturers such as PPG need help to be competitive. Substantial policy changes that encourage manufacturing in the U.S. are critical, and we need to ensure our elected leaders make this a priority.

We must first address our national tax system to make it more competitive, encourage innovation and spur investment, job creation and economic growth. We can eliminate loopholes by simplifying the tax code. This creates a more equitable, balanced system and establishes a level playing field that fosters a fair and competitive environment for business.

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In addition, the U.S. has the highest corporate tax rate among developed countries. In recent years, nearly 60 countries have cut their corporate taxes to encourage economic growth. By standing still, the U.S. has fallen behind. Reducing the corporate tax rate to 25% or lower would make the U.S. tax system more competitive. If we are serious about creating a climate for economic growth, now is the time to adopt tax policies that empower U.S. companies to become more competitive and make our country a more attractive place to invest.

There is widespread agreement that the current system destroys jobs and suppresses wages for U.S. workers. We have an opportunity to use this common ground to make the U.S. more competitive with the introduction of territorial taxation, a system used by nearly every other major industrialized country. A territorial system taxes businesses on only income earned within a country’s borders. It applies to all businesses that operate within a country’s boundaries, whether that business is headquartered in that country or another.

Second, continuing to grow our skilled manufacturing talent pipeline begins with enhancing our education system. To compete and succeed globally, U.S. manufacturers require a high-quality, highly skilled workforce. According to NAM, more than 80% of manufacturers currently report difficulty in filling positions that require skilled workers. We must work with policy-makers to increase STEM education to address the ongoing skills gap and build the 21st-century workforce that manufacturers need.

Last, policy-makers must create an environment where regulation isn’t a hindrance to growth. Dollars spent by manufacturers on regulatory compliance for unnecessarily cumbersome or duplicative regulations are funds manufacturers could spend on capital investment or hiring new employees.

The technologies developed by manufacturers such as PPG play a central role in creating jobs and positioning the United States for economic growth in today’s competitive global marketplace. A more prosperous future begins with an economy that centers on a strong manufacturing backbone. We need our newly elected officials to help make U.S. manufacturing competitive again.

Jack Marshall is the plant manager at PPG’s Oak Creek coatings manufacturing facility.