The surprising election of Donald Trump as President of the United States has caused an undeniable furor across the country, with echoes being heard around the world. To companies like EVS Metal, though, one of our biggest concerns is how his election will impact the manufacturing industry. Although the jury is still out on this subject, multiple outlets have already weighed in on the potential effects of a Trump presidency on the manufacturing sector.
Due to the number of campaign promises Mr. Trump made regarding increasing federal spending on infrastructure, several companies are feeling bullish regarding the outlook for manufacturing in the coming years. One of those is Caterpillar Inc., a behemoth in the manufacture of heavy machinery. They believe the combination of increased infrastructure spending paired with a reduction in corporate taxes and other regulatory concerns will be a boon to the industry overall. In fact, Caterpillar, U.S. Steel and John Deer all experienced major gains in their respective stocks post-election. However, other companies, such as Agco Corp, a major manufacturer of farm equipment, was not feeling quite as optimistic regarding Mr. Trump’s impact, due to potential constraints on free trade, in particular the difficulties that may result from the import and export of physical products.
There are also concerns overseas, particularly in China and India. A more protectionist view of trade would likely not sit well with these manufacturing giants, who rely on the United States as a major trading partner for finished products, as well as a buyer of raw materials. However, there could be benefits to the US if a more closed international trade policy were to materialize, according to Greg Autry, a researcher at Marshall School of Business. One of those is a possible decline in overseas infringements on U.S. company patents — a problem primarily seen in China — and the potential for the expansion of foreign companies’ manufacturing facilities in the U.S., particularly those that focus on Industry 4.0 innovations such as automation.
Finally, for American steel producers, the election of Donald Trump is so far resulting in only positive news, with most companies’ stocks gaining in the days after his election. While this is good news for U.S. steel, for businesses like EVS Metal that utilize American steel in the fabrication of products, the impact could result in overall price hikes that would be less-than-attractive to our customer bases. Once Mr. Trump takes office, we will likely have a better idea of the impact his presidency will have on manufacturing as a whole, and we will continue to cover this issue as it takes shape over the next four years.
EVS Metal is an American precision metal fabricator headquartered in Riverdale, NJ. Our machinists and operators utilize the latest technology to cut, bend and finish stand-alone items as well as parts for integration or assembly into more complex products. Our four ISO 9001:2015-certified locations comprise over 250,000 square feet of vertically-integrated manufacturing space and feature the most modern equipment available, from lasers and CNC machining centers to automated powder coating lines. We serve a diverse customer base across North America, providing a range of services from ITAR-compliant, quick-turn prototypes to high-volume production runs. Request a personalized metal fabrication quote online, or call (973) 839-4432 to speak with a specialist today.