Throughout the recent tax reform debate, the National Association of Manufacturers (NAM) pushed hard for pro-growth tax reform that would move our economy and our country forward. We said the right kind of tax reform is what manufacturers need to create more jobs, improve the quality of life for workers and build more in our country.
After all, in a study commissioned by the NAM a few years ago, we estimated that pro-growth tax policy changes would add nearly 1.5 percentage points to investment growth on an annualized basis, with real GDP up almost 1 percent annually. It would also add roughly 500,000 jobs per year (not just in manufacturing).
The most recent NAM Manufacturers’ Outlook Survey also reflected the growth potential for tax reform, with the majority of respondents saying that it would allow them to increase capital spending, expand their businesses and hire more workers.
Well, Congress and President Donald Trump followed through on their commitment to pass tax reform into law. Now, manufacturers are following through on their commitments to hire more workers, create more well-paying jobs, invest more in America and raise wages.
We are already starting to see it.
For instance, we have heard from BTE Technologies President Charles Wetherington, who told us that, due to the new tax reform law, he plans to invest in new product development and expects to hire 20 percent more workers.
In addition, Marlin Steel Wire Products President and Owner Drew Greenblatt told us that his company has already hired 10 percent more workers to manage more than $1 million worth in new equipment the company plans to buy—all thanks to tax reform.
And on it goes. This is exactly why we fought so hard for tax reform.
What’s more, the types of jobs manufacturers create are usually high-paying, averaging $82,023 annually, including pay and benefits, and these jobs have far-reaching impacts into the larger economy. For every $1.00 spent in manufacturing, another $1.89 is added to the economy. That is the highest multiplier effect of any economic sector. In addition, for every worker in manufacturing, another four employees are hired elsewhere.
In short, tax reform doesn’t just benefit manufacturers and businesses. It doesn’t just help consumers and workers. It boosts the entire economy.
We’re seeing good news elsewhere, too. Companies like Comcast, Boeing, Wells Fargo and AT&T have already announced plans to give bonuses to hundreds of thousands of employees and invest back in their communities.
As we move further into 2018, we expect to see more encouraging news of investment, expansion, hiring and job creation.