The Trump Administration is bringing American manufacturing back to the forefront, with recent efforts including a “Buy American, Hire American” executive order and an infrastructure plan that could positively impact the manufacturing industry. While these efforts aim to bring jobs back to the United States, enforce trade laws and boost the economy, they will also create impact on a local level.
Last week on Yellowhammer Radio, we spoke with Scott Paul, president of the Alliance for American Manufacturing, who shared why he’s optimistic about President Trump’s efforts and how they can positively impact Alabama’s manufacturing industry.
Yellowhammer Radio: Alabama has a rich history in manufacturing. I was shocked to see that Alabama currently has 252,000 people employed in manufacturing – with more than 60,000 supported by the steel industry. Those are impressive numbers.
Scott Paul: Those numbers show that manufacturing is still the backbone of this country. Alabama has a rich history of iron and steel and is still one of the most concentrated areas in our nation for making these products.
I’ve seen firsthand at Nucor, U.S. Steel and McWane facilities how hard the men and women employed in this industry work. The plant managers are smart and can turn a profit to keep people employed, but unfair competition, particularly from the Chinese government, is jeopardizing that.
Yellowhammer Radio: When you mention that unfair competition, jobs tend to go overseas – how many jobs have we lost in Alabama because of that?
Scott Paul: Alabama, like the rest of the country, lost about one-third of its manufacturing jobs from 2000 to 2010. We have clawed a little bit of that back, but we still need more than 41,000 jobs to make a full recession recovery.
There has certainly been new investment in the auto and aerospace sector, which proves to me that we can make it. Alabama is historically good at making things and has been for a very long time; there is no reason we can’t spur a manufacturing renaissance in this country.
Even though manufacturing is a smaller part of our economy in our nation and in Alabama, I still argue that it is irreplaceable. If you have a factory in a small town, it improves quality of life – more stores, more parks and more public services. We also export more because of manufacturing and research and development patents come out of manufacturing.
Yellowhammer Radio: Alabama is good at making things: iron, textiles, steel etc. Our steel industry isn’t just affected by competition overseas, but also towns reliant on other forms of manufacturing, like Fort Payne, once dubbed “the sock capital of the world.”
Scott Paul: If someone loses a manufacturing job, odds are they won’t be able to make nearly as much money. It doesn’t only impact their quality of life – it impacts their family’s future, as well as their community. The effects can be devastating, particularly in smaller towns where the factory is an anchor of employment.
Yellowhammer Radio: President Trump has put forth effort on “Buy American, Hire American” and during his campaign, railed on China for unfair trade practices as well as steel dumping. Could you share your thoughts and opinions on what you have learned over time with China’s steel industry and how it is negatively affecting U.S. jobs?
Scott Paul: During his campaign, President Trump delivered a detailed speech about what he would do on trade policy, particularly with respect to steel. If you look back to see what he’s accomplished, I would say it’s remarkably consistent. He’s followed through – or has begun to follow through – on many of these issues.
China’s overproduction of steel is choking Alabama’s steel industry, particularly in places like Fairfield. Private sector firms are competing against the Chinese government, which has virtually unlimited resources, to fund an industry that produces more steel than China can consume. Product is dumped on the world market, sinking prices and putting steel workers out of business.
We have mechanisms in our trade laws to push back against this. No administration, Democratic or Republican, has done it particularly hard, but Trump said he was going to change the way we do business and he has, by initiating trade actions that could result in tariffs on Chinese steel. He’s also enforcing the “Buy American” policy and investing in infrastructure.
Yellowhammer Radio: Tell us about the “Buy American” program. How can it impact tax dollars, not only in the United States but particularly in Alabama?
Scott Paul: “Buy American” essentially aims to recycle tax dollars, offering American workers the first shot at competing for business. We believe in our government’s policy, as Presidents Ronald Reagan and Franklin Delano Roosevelt supported, that iron and steel should be made in America and we shouldn’t outsource from China.
As we move forward with investments in infrastructure – rebuilding the tens of thousands of deficient bridges in our country or replacing 100 to 125-year-old water systems – we believe the laws should be vigorously enforced and our private sector firms should have first shot at these tax dollars. It’s a win for everybody – commuters, people who need clean water, taxpayers and manufacturing workers and their communities.
Yellowhammer Radio: How do you think getting those jobs back to the Alabama workforce will play a role in the upcoming Senate election in Alabama?
Scott Paul: Economy and jobs tend to be at the top of voters’ minds at the polls. Creating these opportunities is something not only America and our economy needs, but something voters want. The more politicians speak to this, the better off they’re going to be. It isn’t just dream or philosophy; it’s something we can do.
We have a core competency of manufacturing in this country and we have for a long time. But unleashing opportunity for our workers is important. Manufacturing is something you can have a bright future in without a four-year degree. While most will need some sort of training out of high school, there is a lot of opportunity out there. It’s a great way to keep young people in the state, spur economic growth and diversify the economy.
Scott Paul is president of the Alliance for American Manufacturing (AAM). He’s worked to make American manufacturing top-of-mind for voters and our national leaders through effective advocacy and data-driven research. Scott has hosted more than 80 “Keep it Made in America” events, including a presidential candidates’ forum on manufacturing, and has testified before seven committees of the U.S. House and Senate. He frequently appears on television news shows, and regularly blogs at Huffington Post. Scott is a co-author of the 2013 book ReMaking America.
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