▶ 0:21:29I first want to make aware to all the members here we have a you have a invitation on your desk right here for a christmas reception for the committee december 11th, and hope everybody can come and book that and we'll have some we'll have some fun with that. And then the other thing is we have a birthday in the house today. Beautiful. Nicole. Where's nicole? Stand up. Nicole. So I promise, nicole I'd sing her happy birthday.
▶ 0:21:59If y'all want to join in, it's fine. You ready? This is your birthday song. It does not last too long. Hey. Happy birthday nicole. Alright. Uh, good. And before we get started, I.
▶ 0:23:14Small business to order. And without objection, the chair is authorized to declare a recess of the committee at any time. I recognize myself for my opening statement. Uh, welcome to today's, uh, hearing titled made in the usa how main street is revitalizing domestic manufacturing. I want to begin by thanking our witnesses for being here today and across the country, made in the usa, businesses are driving local economic growth, strengthening domestic policy chains and revitalizing communities.
▶ 0:23:41They build, innovate and create good paying jobs in every corner of this country. Domestic manufacturing is critical to our economic strength, national security and job creation. In the first quarter of 2025, the manufacturing sector alone added $2.9 trillion in value to our economy and employed over 13 million americans. Small manufacturers make up nearly three quarters of the industry and are driving local innovation and resilience. Uh, revitalizing and expanding U.S.
▶ 0:24:12Manufacturing isn't just an economic priority. It's a national imperative. That's why president trump made bringing production back home a cornerstone of his economic agenda. And earlier this year, I introduced h.r. 3074, the made in america manufacturing finance act. This legislation supports president trump's onshoring and reshoring efforts by increasing access to capital for america's small manufacturers, and by helping small business access the capital they need.
▶ 0:24:38They can earn, or they can modernize, expand, and compete effectively on a global scale. In addition, technology will continue to help these small businesses modernize the industry, and advanced tools such as automation are essential for U.S. manufacturers to remain competitive and attract a new generation of the workforce. So you had small firms face regulatory burdens that cost small manufacturers nearly $50,000 per employee, which is twice as much as large manufacturers.
▶ 0:25:06Washington must cut red tape, so main street america and main street manufacturers can successfully innovate and they can grow. All of this depends on strong and skilled american workforce. And with 437,000 manufacturing job openings today and a projected 3.8 million new positions by 2033, we must invest in the next generation of american manufacturing, and manufacturers need robust skills training, apprenticeships and public private partnerships to meet industry demand.
▶ 0:25:35Programs like the department of labor's registered apprenticeships and the sba's new partnerships with trade, schools and workforce programs, and helping to prepare the next generation of skilled workers to invest america's manufacturing future. This committee is committed to supporting made in the usa manufacturing by removing barriers to growth, strengthening supply chains, and empowering the workforce. When american manufacturers succeed, america succeeds.
▶ 0:26:00So I want to thank our witnesses today for coming and joining us today, and I look forward to our discussion on how main street is revitalizing american manufacturing. The future of the main street america is made in the usa. So I now recognize our distinguished ranking member and my friend from new york, miss velasquez, for her opening remarks. >> good morning, and thank you, Mr. chairman.
▶ 0:26:24I appreciate the committee, and I want to thank all the witnesses for being here today. I appreciate the committee focusing this hearing today on the state of manufacturing and the important role that small businesses play, both in our national economy and our local communities. While manufacturing is incredibly important, so is farming and ranching.
▶ 0:26:48So I hope we can hold a hearing on the administration's decisions on beef, because as the small business committee, we owe it to the ranchers in this country to elevate the harm of this decision. According to the sba's office of advocacy, the us is home to over 600,000 small manufacturing firms.
▶ 0:27:14These small businesses create good paying jobs, contribute over $277 billion annually to payrolls and supply components and products that fuel american industry, from aerospace to health care.
▶ 0:27:30I look forward to hearing from the small businesses on our panel about their challenges and what we can do to ensure small manufacturers remain competitive and innovative, despite the difficult environment in which they operate. Unfortunately, we continue to see warning signs that policy decisions from the administration are making the environment more difficult for all us manufacturers, not less.
▶ 0:28:00This is especially true for small businesses in this sector. Despite the administration's claim of a manufacturing resurgence and booming economy, the manufacturing sector continues to decline. This morning, the bureau of labor statistics released data showing the us lost an additional 6000 manufacturing jobs in september.
▶ 0:28:25The revised august numbers show a total loss of 92,000 manufacturing jobs over the past year, with nearly a third coming in the past months. This month over month decreases are a cause for great concern, and I would like to talk about the elephant in the room.
▶ 0:28:51While some may call tariffs short term pain for long term gain, history shows that small manufacturers and their employees are unlikely to see benefits even if and it is a big if any so-called long term gains are realized.
▶ 0:29:10The office of advocacy further points out that when the overall manufacturing sector began to recover from earlier losses in 2010 and large manufacturers began to grow again, there was not equivalent rebound for small firms.
▶ 0:29:32Once manufacturing jobs are lost, it is the small firms are likely to recover. That is why we must take a holistic approach to retaining small manufacturers and their workforces, rather than implement a guacamole. Policies that do not account for the disproportionate and negative impacts on small businesses.
▶ 0:29:59This is most prevalent right now with tariffs. Chaotic tariff policies continue to be a major pain for small firms. I also share the concerns of our panelists on the ability of small manufacturers to attract, compete for, and trained skilled workforce. Manufacturing is a highly competitive labor market.
▶ 0:30:26According to nam, there were 409,000 manufacturing job openings in august of this year, and the us will face a shortfall of 1.9 million manufacturing workers by 2033. Working for small businesses, especially for family owned firms like 3-d, has many advantages.
▶ 0:30:49But to be frank, most small businesses cannot match the pay and benefits packages that large corporations offer. This puts small firms at a disadvantage when comparing competing for talent, as all manufacturers seek to fill the current and looming shortfalls of skilled workers.
▶ 0:31:11Therefore, I look forward to hearing from the panel about these issues and additional ways we can help to create an environment that provides businesses with opportunities for success. Thank you, Mr. chairman. I yield back. >> gentlelady yields back, and I will now introduce our witnesses. Uh, our first witness here with us today is Mr. charles crane. Uh, Mr.
▶ 0:31:35Crane is the managing vice president of policy and national association of manufacturers here in washington, dc. Uh, in this role, he leads the association's best in class team of policy experts and advocates working to achieve legislative and regulatory outcomes that support the growth and success of manufacturers in america. And prior to this, Mr. crane served as the association's vice president of domestic policy. Mr. crane began his career on capitol hill, working for members of the house committee on financial services and senate committee on finance.
▶ 0:32:06Mr. uh, Mr. crane received bachelor of arts in political science from mercer university, and that is, uh, toby the bear. Is it mercer, isn't he? Okay, great. I want to thank you for being with us today. Okay. Uh, our next witness here with us today is Mr. henry moser. Uh, Mr. moser is the founder and president of reshoring initiative in sarasota, florida. Uh, Mr. moser founded the reshoring initiative in 2010 to bring back american manufacturing and strengthen the nation's skilled workforce.
▶ 0:32:33His efforts have earned national recognition for him, including an induction into the industry week manufacturing hall of fame and honors from quality magazine, the economist and the manufacturing leadership council. Uh, before starting the reshoring initiative, he served in leadership roles at gf machining solutions, joining as president in 1985, and retired as chairman emeritus in 2010. Uh, Mr.
▶ 0:32:59Moser holds a bachelor of science in mechanical engineering and a master of science in engineering from massachusetts institute of technology, as well as master of business administration from the university of chicago. I'm looking forward to having your testimony and having you here today. Mr. moser, thank you. I now recognize my colleague, representative weed, from the great state of wisconsin to briefly introduce his constituent, who is appearing before us today, Mr. weed. >> good morning, and thank you, Mr. chairman.
▶ 0:33:27Today I have the privilege of introducing my constituent and friend, kurt voss. Mr. voss is the owner and chief executive officer of a family of companies headquartered in my hometown of de pere, wisconsin. Mr. voss founded a miralax over 20 years ago and has guided its growth from a small start up in 2004 to a multi-company entity that includes manufacturing, services, distribution, logistics and warehousing services and employing over 350 people.
▶ 0:33:54Earlier this year, miralax international announced a partnership with brett martin, a company based in ireland, to form american polycarbonate company, and to reshore polycarbonate manufacturing right in northeastern wisconsin. Outside of his work at miralax, Mr. voss serves on the board of directors for the green bay packers and the board of trustees of saint norbert college. As a member of the board of trustees.
▶ 0:34:18He helped lead the saint norbert church restoration project, which is now known as the cassandra voss center, in memory of his daughter. Entrepreneurs and great leaders like Mr. voss are what make northeastern wisconsin and the united states of america the greatest place in the world. Thank you for joining us today, Mr. voss. I'm looking forward to our important conversation. >> gentleman yields back. I thank you for that nice introduction. I now recognize the ranking member from the great state of new york, Mr.
▶ 0:34:49Velazquez, to briefly introduce our last witness appearing before us today. >> thank you, Mr. chairman. It is my pleasure to introduce our witness today, Mrs. shirley modlin. Mrs. modlin is the co-owner of 3d design and manufacturing, a family owned business in powhatan, virginia. She studied management and accounting before launching 3d design and manufacturing, starting the firm with her husband, david, in 2005.
▶ 0:35:15For 20 years, 3d has supplied both mechanical engineering design services and manufacturing engineering design services. 3d design employs 15 skilled engineers, mechanical technicians and electrical specialists.
▶ 0:35:36They work frequently with large corporations supplying their high quality products to the beverage, pharmaceutical, automotive and space technology industries. 3d is a long time member of small business majority and a strong and vocal advocate on behalf of small business manufacturers. Thank you for being with us this morning. >> gentlelady yields back and before recognizing the witnesses, uh, we'll go over the ground rules here. Okay.
▶ 0:36:04Uh, I'd like to remind them that their oral testimony is restricted to five minutes in length. You've got a clock in front of you, so watch that. Uh, if you begin to go over, you'll hear this, okay? And that means to wind it down. If you see the light turn red in front of you, it means your five minutes has concluded and you should wrap up your testimony. So with that in mind, I now recognize Mr. crane for his five minute opening remarks.
▶ 0:36:30>> good morning, chairman williams, ranking member velazquez and members of the committee. My name is charles crane, and I'm the managing vice president of policy at the national association of manufacturers. Manufacturing is a powerhouse for american prosperity. If us manufacturing were its own nation, it would be the eighth largest economy in the entire world. And that economy would be principally driven by small businesses, which make up 98% of our industry.
▶ 0:36:59These are startups with new and innovative business models disrupting markets, and their family owned businesses pass down through the generations as pillars of their communities. The most important investment that congress can make in these small businesses is smart public policy. Policy that lowers the cost of doing business in the united states, policy that creates the certainty that manufacturers need to invest millions of dollars in decades long projects.
▶ 0:37:28Policy that puts more people to work, puts more shovels in the ground, and that strengthens our nation's hand on the world stage. Congress has already taken a historic step in that direction, with a pro-growth tax bill that incentivizes and supports manufacturing investment by reinforcing and making permanent the 2017 tax reforms that led to record job creation and wage growth and capital investment across our industry, hr one strengthened america's
▶ 0:37:58Leadership as a manufacturing superpower, and it saved 6 million american jobs. Now, more must be done to unlock the benefits of this historic and transformative achievement. This committee has already approved the made in america manufacturing finance act to ensure that the sba's loan programs are working, as well as possible for small manufacturers who need capital to grow here at home.
▶ 0:38:22This bill is a great example of how congress and the administration can pursue what we've called a comprehensive manufacturing strategy. That means rebalancing unworkable regulations and reforming america's broken permitting process. It means investing in our nation's infrastructure and supporting american energy dominance. It means providing trade certainty that empowers manufacturers to make things in america.
▶ 0:38:50And it means investing in the manufacturing workforce of the future. We need all of these policies to build on the success of tax reform, to unlock small manufacturing growth, and to drive a true manufacturing renaissance. Let's start with permitting reform. We cannot become the best place in the world to build things.
▶ 0:39:13If it takes us 80% longer to permit projects here in the us as compared to other advanced economies, unclear timelines, overlapping statutes, excessive litigation these all raise costs for manufacturers or they home manufacturing projects entirely. Another roadblock to getting shovels in the ground is the burden of federal regulations.
▶ 0:39:37Small manufacturers spend on average $50,000 per employee every single year, just on compliance. This administration has already made tremendous progress in rightsizing the federal regulatory environment, meaning that more projects will get off the ground, not get stuck in quicksand.
▶ 0:39:54We also need both energy dominance and trade certainty to further unlock manufacturing investment, and all of the above energy strategy that harnesses america's abundant natural resources can power manufacturing into the future. While smart trade policy can ensure that we have the inputs and the machinery that we need to make things here at home, as well as the export markets to sell things around the world.
▶ 0:40:22Finally, for these investments to take root, we need a highly skilled manufacturing workforce with 400,000 jobs open across the sector, manufacturers are committed to upskilling and training programs, and we need policy makers to deliver workforce and immigration policy solutions to help us fill jobs with the skilled workers that we need. This is the road to a manufacturing renaissance.
▶ 0:40:48It runs through a comprehensive manufacturing strategy, ensuring that all parts of the federal government are rowing in the same direction toward an empowered, emboldened, exceptional manufacturing industry backed by the right policy choices, small manufacturers will deliver for our communities, for our country, and for our preeminence on the world stage. Because when manufacturing wins, america wins. Thank you. >> thank you. And I now recognize Mr.
▶ 0:41:17Mosher for his five minute opening remarks. >> thank you. Chairman williams, uh, ranking member velazquez and members of the committee. I'm honored to be here. Uh, I'm harry mosher, the founder and president of the reshoring initiative. So first, I'd like to summarize what's been happening. Manufacturing reshoring, plus fdi, foreign direct investment jobs.
▶ 0:41:39Have we track them and they have increased from about 11,000 in 20 10 to 240,000 per year last year. So annual rates go up a compounded 25% per year. So it's been a very aggressive, successful trend. About 50% of the jobs that come back are in small business.
▶ 0:41:59So the major way through reshoring to bring jobs to small business is for big companies to reshore decide to produce product here, source the components, the tooling, etc. From the small businesses. More effective industrial policy, something like what charles recommended can dramatically increase that rate of reshoring and fdi. You know, perhaps double it.
▶ 0:42:22And if we did that, our we could by say 2040 increase us manufacturing by about 40%, eliminating the goods trade deficit. That's our mission. Uh, a little background. The, uh, the companies, the big companies make the reshoring decisions. There's certainly some small companies that import things, but it's basically the big companies that do most of the importing. And they can they can make the reshoring decisions.
▶ 0:42:49And then the work goes to the small companies. Um, so it's essential to convince those big companies to reshore and then feed the market. An excellent example of this, a company I know well is ge appliances, headquartered in louisville, kentucky. They've been consistently reshoring and investing here, and they were the co-recipient of the 2025 national metalworking reshoring awards. They've done a great job.
▶ 0:43:16They've invested their current announcements come to a total of about $6.5 billion in investments, primarily for reshoring, primarily, uh, coming back from mexico and china. And as a result of that, they now have relationships with about 6500 us suppliers, mostly small companies, the kind of companies we're concerned about across all states.
▶ 0:43:41And they buy about $4.6 billion in materials, components and services each year from those companies. So that's the kind of that my perspective is feed the big, help the big companies reshore the small companies will win. Uh, the root causes of reshoring are essential to understand. We in 2025, we surveyed the big and the small companies and asked them why they offshored and why they now reshore. And the biggest barrier is price.
▶ 0:44:10The us price, the manufacturing cost of making something here is 10 to 20% higher than in most developed countries, and 50% higher, 60% higher than in countries like china. And unless we overcome that, differential companies will always be attracted to source their components offshore.
▶ 0:44:27The that price, that cost differential is primarily driven by a us dollar that's consistently 20% or more overvalued, making our cost higher expressed in common currency.
▶ 0:44:42The trend in 2025 started out well softened a little bit with in april, with liberation day recovered and we project the the total of reshoring and fdi to be about 10% lower this year than last year, but still about 220,000 jobs announced. So still, it's still a good year for the trend. We believe that one of the keys to reshoring is utilization of total cost of ownership.
▶ 0:45:11Companies are starting to recognize all the costs and risks associated with offshoring, and when they do that, they find out that they much of what they now import, they can reshore without government subsidies, etc. For example, comparing 190 cases of china versus the us, the us win rate goes from 8% based on price to 32% based on total cost to 46%. If there's also a 15% tariff on the product.
▶ 0:45:41So so getting companies to do that, to use those methodologies is the simplest, least expensive way to achieve what we want. Uh, some things that the us government and state and local governments can do. The department of labor, uh, still pushes college for all rather than a good career for everyone. And they have charts that talk about education pays $1 million more lifetime income than a high school graduate.
▶ 0:46:08And if they would change that to to include the income of apprentices, apprentice graduates, then the parents and the guidance counselors would see that, uh, that, that that kind of career is feasible. Thank you. >> thank you. I now recognize Mr. voss for his five minute opening remarks. >> hi, everyone. Thanks for inviting me to testify.
▶ 0:46:34Uh, I appreciate you soliciting feedback from those of us that are in the trenches, you know, with an eye towards finding additional ways the government can support, encourage, and enhance the success of small business. We know we all know the positive impact that a healthy small business community can have on our society. And part of that health includes creating an environment that encourages all of us to chase our potential.
▶ 0:46:58I assume you've read my submissions, but my story involves a hyper optimistic and hyper entrepreneurial guy. Me with a young family quitting a very good job, and deciding to take a shot at starting a business. In 2004. 21 years later, our enterprise, the family of companies, employs over 350 people and serves markets throughout the united states and canada.
▶ 0:47:24For perspective, the data tells us that of all the businesses that were started in 2004, only 20% of them are in business today. We feel very blessed to be one of that 20%. So, uh, so you have an idea what frames my mindset? Uh, we have ten culture statements which guide and inform how we run our business. Uh, they were part of the submission to you.
▶ 0:47:50Uh, we wrote them not to be in harvard business speak, but we wrote them in what we call a speak. One of them is, quote, is this a great country or what? Exclamation mark, question mark. The statement describes an intentionality around creating a culture of optimism and positivity. As optimistic and positive teams produce greater results than negative and pessimistic teams.
▶ 0:48:17If the business book said that to be successful, you needed to be negative and pessimistic. I would probably be one that would try to beat the odds, but thankfully I don't have to because it's good business to be positive and optimistic. The other the other part of the meaning of this culture statement for us refers to this country that we've been fortunate enough to be born in. I don't believe the luck story could have been written, at least in its current form, in any other country. This country is exceptional, meaning it is the exception.
▶ 0:48:45Our rights come from god and our government is created to protect those rights. Our free enterprise system is an extension of those individual rights. Every other country in the world, rights come from the government, and those rights can be taken away or granted based on government edicts. So while this country is far from perfect, we've been on a continuous improvement journey for about 250 years.
▶ 0:49:08We operate from the premise that the glass is 80% full, and our focus is to help it get it to 81% and more, so we don't spend our time with a hyper focus on the 20% that's empty. In my submission, I articulated a few items that I feel this committee should focus on, which could significantly improve things within the small business community.
▶ 0:49:30To be clear, we don't assume a victim mentality when facing challenges or look to the government to solve all of our problems. I suggest to focus on the following, and I can certainly give you my $0.02 related to these issues, I mentioned the easing of banking regulations and compliance costs for small banks to allow them to better serve their customers. Obviously, capital formation is critical in the starting and the growing of businesses.
▶ 0:49:58The cost of health care continues to escalate and the current structure is broken. Real reform needs to take place, enabling employers and employees to obtain affordable care and to become educated, enabling them to for them to become better educated consumers of medical services. We don't need more insurance reform. We need health care reform.
▶ 0:50:21Also, I'm acutely aware of the importance that small business plays in providing for societal needs. The capital derived from successful small businesses, benefits this country and its citizens in a variety of ways. It is literally the engine that runs this country. In many ways, this is under-publicized and I encourage this committee to use its influence to magnify that point.
▶ 0:50:46And finally, in my submission, I mentioned the current situation with our newest recently formed company, american polycarbonate company. It's a joint venture with a company in ireland called brett martin. We literally unplugged manufacturing equipment that was being utilized in ireland and reassured that equipment to de pere, wisconsin, a suburb of green bay. This this equipment cannot be procured in the in the united states.
▶ 0:51:13Now, I fully support the tariff strategy, which has had other positive effects on our businesses. I also understand that all significant, uh, positive policy changes, there will be some unintended consequences, but subjecting financial penalties like tariffs on equipment needed to reshore manufacturing to the united states obviously doesn't make sense and should be corrected.
▶ 0:51:39So thanks again for having me and I look forward to your questions. >> I now recognize miss maudlin for her five minute opening remarks. >> thank you, Mr. chairman and ranking member velazquez and the members of the committee, thank you for this opportunity to speak today. I'm the owner of 3d design and manufacturing, located in powhatan, virginia, and I also am a member of the small business majority.
▶ 0:52:08I have been for a number of years, um, 3d design and manufacturing provides manufacturing, engineering, design services, and obviously engineering design services. Uh, we work with large corporations in the beverage, pharmaceutical, automotive and space technology industries. Uh, I want to emphasize the small manufacturers being a critical part of america's economy.
▶ 0:52:35Uh, large corporations rely on the small businesses like mine to solve a lot of their problems. Um, for example, when an assembly line at a large business breaks down, they will call us and we will go out very quickly, diagnose the problem and make the repair part and actually go back and repair the machinery and equipment.
▶ 0:53:05Uh, this happens very quickly to keep these lines moving in these large corporations, in these big plants. So, uh, I appreciate the opportunity here to bring this to your, uh, to your desk. The importance of the small business in domestic manufacturing is essential.
▶ 0:53:25Uh, I do tell you that small businesses struggling under the current economic conditions, we've been 3d designing. Manufacturing has been in business since 2005, and we have never experienced such turmoil. This is largely due, unfortunately, to the tariffs.
▶ 0:53:52Our products are made in america, but we rely on aluminum, steel and alloys, uh, which are imported from canada and mexico. Uh, in addition to the bottom line, uh, hit we uh, tariffs create this uncertainty. Uh, so that is that I never know what tomorrow will hold a 25% tariff, a 50% tariff, no tariff, uh, tariff on aluminum tariff on steel, uncertain.
▶ 0:54:22Uh, it's very difficult in this environment to set prices for my customers. And this hurts. This hurts the small business. Um, while we're being battered about. We can't do that to our customers. We quote our jobs, and we hold our prices for at least five days.
▶ 0:54:43If in that five day period, uh, prices rise, we are going to take that hit. Um, we can't pass that on to our customers because we're in a highly competitive industry as a small manufacturer, and these customers could take their business elsewhere.
▶ 0:55:03So tariffs are an essential challenge also in finding employees, uh, after the tariffs rather to uh, one of our challenges is finding employees, um, because small manufacturers have to rely on a skilled workforce, they have to hit the floor and be able to work. And there's a tremendous shortage of these workers in manufacturing.
▶ 0:55:27It takes a minimum of a month to three months to see that employee put on the floor and begin to succeed in what they're being asked and expected to do. Um, we invest a great deal of money in training that employee, and unfortunately, once the employee gets onto the floor, uh, sometimes they don't work out. Sometimes they're not able to cut the mustard, if you will.
▶ 0:55:57Um, so this shortage of of workforce in our small manufacturing community is essential. Our 30 year veterans are retiring, and we do not have that up and coming skilled workforce to take their place. This is very, very important. Um, so to recruit positions for what we need, it is not easy. They have to have a great deal of training and experience.
▶ 0:56:23And unlike the large corporations, uh, they have these employees more, uh, ready to go on the floor. Um, we find ourselves challenged to hire, uh, because we are competing against large corporations who offer, uh, the big, uh, robust packages in benefits.
▶ 0:56:48So I suggest that that we, uh, we have some interest here, uh, to ask congress to assist by exempting small businesses, not just industries, but exempting from tariffs.
▶ 0:57:02I'm going to close by suggesting that we also, uh, if small manufacturing can continue to succeed and grow in the workforce, uh, if congress will take a look at this small community and invest. >> thank you for that. >> thank you very much. >> y'all did great.
▶ 0:57:32It's going to be a good hearing. Uh, I will say this, uh, every now and then you will see some people move in and out, go outdoors. You haven't made anybody mad. It's just we got a lot of people, a lot of committee hearings going on today. So that'll that'll that'll happen. Okay. Um, I now recognize myself for five minutes. Uh, Mr. crane, your organization has highlighted how excessive federal regulations stifle small manufacturers.
▶ 0:57:58Can you discuss how reducing red tape would directly improve the competitiveness of small and medium sized manufacturers nationwide? >> absolutely. Thank you for that question, Mr. chairman. As you mentioned in your opening remarks, small manufacturers bear the brunt of the federal regulatory burden that our industry faces as an industry writ large, we face about $350 billion every year in federal regulatory costs. For small manufacturers, it's about $50,000 per employee per year. We don't always have in house.
▶ 0:58:27I'm sure the small manufacturers on the panel can speak to this in house counsel and house accountants to comply with those burdens. So you've got to hire out expensive consultants. And those are resources that are diverted from more productive uses. Growing your business, investing in r&d, hiring new people, purchasing capital equipment. These are the pro-growth activities that drive the industry. And so dollars diverted from those to regulatory burdens that don't really work for small manufacturers anyway is really wasted. Wasted cost. Um. >> Mr.
▶ 0:58:56Mosher, the 2025 reshoring survey reveals that 30% of original equipment manufacturers have restored or working to reshore their operations in the last ten years, and 43% of contract manufacturers have restored or are actively reshoring for their customers. Uh, and you touched a little bit about that. What are the benefits of reshoring to the united states for manufacturers and for the us economy as a whole? >> thank you, thank you. >> thank you. I remember this the for the country. It's very obvious. It's it's more jobs.
▶ 0:59:28It's, uh, less income inequality. It's, uh, better smaller budget deficit. It's defense preparedness, you know, almost everything that should be on our priority list is achieved by the reshoring for the companies. It's a quicker delivery.
▶ 0:59:46It's the benefit of having engineering and manufacturing close to each other, able to speak the same language and optimize both the the, the design of the product and the process for making the product. Uh, it's, uh. Delivery. For example, the survey showed that that us manufacturers were willing to pay uh, ten to many of them were willing to pay 10 to 20% more for a one week delivery instead of a six week delivery.
▶ 1:00:14So if you make it here, you bring some extra value to your customers. I've got a much longer list than that, but those are the primary benefits. >> thank you, Mr. voss. Uh, what barriers do small manufacturers like miralax face when trying to adopt automation and advanced manufacturing tools? >> by the way, I'd add one thing, uh, to reshoring that's just having control of your future.
▶ 1:00:40And as organizations that are looking to build sustainable companies, you want to be able to control your future. And reshoring certainly does. That was primary in my mind in doing that. As it relates to your question, Mr. williams, um, I think it's it's education more than anything, not only for the workforce, but for us. Uh, I think we're all learning how we can use that automation and ai, etc.
▶ 1:01:02And, uh, a lot of us are taking, uh, fast track courses, uh, through various sources to be able to do that and stay ahead. At the end of the day, we're all in a competitive world and a competitive environment, and no different than being out of the woods with ten of your friends and a bear shows up, you got to make sure you can run faster than a couple of your friends. Well, it's the same thing in business.
▶ 1:01:28And, uh, that responds to your question, but we're going to have to do that if we're going to remain competitive, for sure. >> thank you. Uh, last question, Mr. crane. Small manufacturers are key to modernizing american manufacturing. So what are you hearing from nam members about workforce development opportunities? And to ensure that they can train and retain talent for the next generation of manufacturers? >> having skilled workers is absolutely an imperative for manufacturers. And specifically, we need manufacturing skilled workers to fill the 400,000 open jobs that we have.
▶ 1:01:57These are machinists, they're technicians, they're welders. They're electricians that make our factory floors run. And so the manufacturing industry has invested heavily in training and upskilling programs to ensure that we can meet that workforce need. What we need from federal policymakers is to do their part to ensure that our companies have the resources to offer those programs, to ensure that federal agencies are supporting programs to do education efforts as low as middle and high school.
▶ 1:02:25To talk about the promise of a manufacturing career. There's so much to be done on the domestic workforce side and on the immigration side to ensure that we have workers and that we have skilled workers for the manufacturing industry of the future. >> all right. My time is up, and I now recognize the ranking member for five minutes of questions. >> thank you, Mr. chairman. Uh, miss matlin, in your testimony, you states that the workforce shortage is urgent and will only worsen in the coming years.
▶ 1:02:56The national association of manufacturers has also referenced this structural workforce deficit, citing the need for almost 2 million more employees over the next decade. What could happen to small manufacturers if we do not properly invest in workforce development? >> thank you, ranking member velasquez.
▶ 1:03:24Um, if we do not have a workforce in small manufacturing, remembering that we do not have the resources to train on the floor, they need to come to the small manufacturer ready to hit the floor with a minimal amount of training to move forward.
▶ 1:03:39Uh, if we do not prepare our workforce and encourage our, our, our younger generation to come out of the technical and community colleges and, and come into the smaller manufacturing environment, um, we're going to be at a deficit. Small manufacturers support the large plants, the large corporations.
▶ 1:04:04Um, and so it's going to be a fallout if we do not have that workforce prepared. Uh, we're going to the small manufacturers are going to suffer, which is going to fall down, flow down, if you will, to the large corporations that we support. >> thank you.
▶ 1:04:23And, um, you know, we hear from small businesses that the president's tariff policies are harmful in and of themselves, but also that there's uncertainty and unpredictability are causing as much harm. Can you please briefly speak to the impact of tariffs on your business? >> yes.
▶ 1:04:46Uh, unfortunately, tariffs do create, especially today in this environment, uh, this unpredictability. So as I prepare for the next year, I'm uncertain what I'm, what I need to to do, where my revenue needs to go, what my costs are going to be. >> that's the bottom line.
▶ 1:05:07Uh, after the tariffs costs were passed on to you and your prices went up, have you seen any of those costs go back down as deals have been announced by the white house? >> no, they they do not go down. Prices do not go down. >> um, miss modeling.
▶ 1:05:29This committee passed legislation to raise the sba's loan guarantee limit from 5 million to 10 million for small manufacturers. How would that impact your firm? >> unfortunately, it wouldn't impact me. I couldn't take on that level of debt, especially in this economy, especially with this uncertainty. >> okay. Um, Mr.
▶ 1:05:52Cronin, you mentioned one of the aspects that you mentioned was immigration. What aspect of immigration were you referring to? >> thank you for that question, madam ranking member. Uh, as I said earlier, manufacturers need skilled talent to fill the open jobs that we have that both you and the chairman have referenced. When we think about immigration, we think about supplementing the domestic workforce. We are invested in training and reskilling that workforce.
▶ 1:06:20Um, but we do still have open jobs despite those efforts. And so having foreign born workers, both at the sort of what's called high skilled level of scientists and engineers to design programs, to design products, but also with the manufacturing skill, talent coming out of career and technical education systems that are machinists and technicians and electricians. We think there's a role for immigration policy to play as we continue as an industry, to invest in the domestic workforce.
▶ 1:06:47>> well, I guess that the administration is failing in in that respect because they are unwilling to deal with immigration policy. And of course, that will have a direct impact not only on manufacturers, but also farming and other aspects of our economy. Uh, Mr. voss, in your testimony, you showed that tariffs are having a counterproductive effect.
▶ 1:07:13These financial penalties are making your previous plan to reassure domestic manufacturing more costly and difficult. 74% of manufacturing firms have fewer than 20 employees. How can, uh, smaller companies deal with such dramatic cost increases if even larger small businesses are challenged in their onshoring attempts?
▶ 1:07:43>> well, to be balanced? I said that there was also many positive consequences of the tariffs. We've had. Customers who have their businesses have expanded as a result of the foreign competition being tariffed. Um, our, our prices actually have not gone up for the things that we bring in from overseas because the manufacturers overseas have largely ate those, uh, increases or the cost of the tariff.
▶ 1:08:10Um, all I would say is that, you know, we're all in competitive businesses. We have to find ways to compete. Uncertainty is all around us. Unpredictability is all around us. Uh, it's called being in business. >> it's around us every single day. >> yes. >> yeah. >> gentlelady yields back. Uh, I now recognize Mr. musser from the great state of pennsylvania for five minutes. >> thank you, chairman, very, very much. And thanks to our witnesses, we appreciate you making the trip and being here.
▶ 1:08:40Um, uh, it's, uh, certainly a very important subject. We most of us up here are former small business or large business owners, and we are here to support you and hear from you today what what we can best do to accomplish that. And, uh, we spend a lot of time talking to small businesses, so it's, um, refreshing just to hear your thoughtful remarks and and truly what we, uh, what you'd like to see if you were sitting in our seats.
▶ 1:09:08What would what would what would you do to, uh, to assist small business? So, um, uh, Mr. voss, I'll start with you. Impressive company. Congratulations. Um, uh, the the tax bill that recently passed bonus depreciation, 199 a and such. Um, how important was that? >> exceptionally important. Okay.
▶ 1:09:30Uh, and in fact, just to put it in perspective for the last question, the cost associated with the imperfection, I'll say, in the tariff of actually tariffing, reshoring, manufacturing, reshoring equipment was more than offset by the tax implications and tax savings, which allows us to pour more money into our business. >> good, good. Do you work with the sba at all at your size company? >> I have not, no. >> okay. And from reshoring perspective, what are you seeing? What are you seeing?
▶ 1:09:58Um, well, I guess this question would have to go to Mr. moser. What? What would you like to see us? See us do from the regulatory front, the tax end of things is largely accomplished. Uh, workforce. Uh, that litigious nature of things, uh, health care, uh, what's, uh, what's what's weighing on you most? What do you think? >> are you asking me or Mr. moser? >> I'm asking you. Mr. Mr. >> okay, well, how much time do you have? No.
▶ 1:10:29>> it's not. What? Health care. You have a long list. >> of big questions. So, yeah, health care is, in my opinion, we need to become better educated consumers of health care, period. And a lot of the reforms have been around insurance and how that works. And we need to, first of all, as a country, understand that we're all in this together. This isn't only on the on the backs of small businesses or big businesses to provide health care for their employees. The employees have to participate too, in the in the way.
▶ 1:10:57The best way they can do that is to become educated consumers. And if we can push that and then, frankly, put it in the hands of small business and big business instead of bureaucrats, I think we'd come up with a solution. >> and I think employer based health care is is so very important. My former company worked out really well. Are you familiar with association health plans? >> mhm. >> okay. So that's something as well we're going to hope to put in, in our in our health care plans. >> we've gone through.
▶ 1:11:25>> the whole gamut uh continuing to try to stay ahead of the curve and come up with new ideas. And uh, currently we're self-insured with a $100,000 deductible plan. But we're at the mercy of medical claims, and we constantly are educating ourselves on how we can keep those claims down by being better consumers of that medical care. >> thank you, Mr. crane. Um, from your more macro perspective, national association of manufacturers has manufacturing growing? Are we reshoring?
▶ 1:11:52Are we, uh, expanding? And what is there a particular sector that seems to be more so than others? >> it's a great question, congressman. I'll go back to what you said in your previous question is that the tax bill really laid the foundation for exactly the types of onshoring, reshoring and domestic growth that we want to see across the industry. And we've seen benefits from that tax bill from the smallest of small businesses all the way up the supply chain.
▶ 1:12:18Given the incentives that you all put in that law for research, investment, for capital, equipment investment, for new factory construction, um, that is driving capital investment. It's driving wage growth. It's driving job creation. That's what we saw back in 2017, 2018. And it's what we're already seeing now. Early signs of shortly after the tax bill passed our quarterly outlook survey, the optimism of the manufacturing industry jumped ten points just immediately following the tax survey. Uh, excuse me, following the tax bill.
▶ 1:12:47And so we expect that to continue to manifest in additional investment across the sector. >> um, taxes, regulatory reform, workforce. What about interest rates? >> uh, absolutely. The cost of capital continues to be a significant burden for manufacturers given inflation and rising interest rates. Um, so anything that the congress can do and the administration writ large, um, to reduce the cost of capital, we already talked about the sba, uh, legislation that you all have already approved. Um, that continues to be an issue for manufacturers.
▶ 1:13:16>> the best way of bringing down inflation is for supply to exceed demand. Right? Consumer, um, confidence. Uh, consumer purchasing is there. We need to increase the supply side. Uh, Mr. moser, unfortunately, I only have a few seconds left, but maybe we'll get back to you on what is being restored these days and what, um, how you see that impacting our economy. But my time has run out, and I will yield back. >> gentleman yields back. I now recognize Mr.
▶ 1:13:45Mcgarvey from the great state of kentucky for five minutes. >> thank you, Mr. chairman. Thank you all for being here today. I'm I'm proud to come from a place where people still make things with their hands. I'm from louisville, kentucky. We make every ford f250 and above right there in louisville we make ford escapes, lincoln corsairs, louisville slugger baseball bats are made by the steelworkers in louisville, kentucky. Right there on main street. We've got ge. We are a manufacturing hub in louisville, kentucky.
▶ 1:14:10And so when the president actually says he has a stated goal of having more manufacturing jobs in the united states, I agree with him. That's a goal I've had for a very long time. I want more people. I want more steelworkers. I want a third shift at ford. I want more united autoworkers. I want more people making stuff with their hands. Good paying jobs where people can provide for their families in louisville. So let's talk about tariffs and how this impacts this. Right? I've always said tariffs are neither good nor bad. Tariffs are a tool.
▶ 1:14:39A hammer is neither good nor bad. A hammer is a tool. It's it's really good for building a house. It's not so good for fixing your iphone because how you use a tool matters. And so when you see a president who is putting a 40% tariff on brazilian coffee and bananas, things that don't grow here in the united states, or a 50% tariff on lesotho, or, you know, a grand total of of tariffs on the islands of the mcdonald islands or the islands where the population is zero, unless you count penguins.
▶ 1:15:07This is not common sense from a guy who claims to be the president of common sense. So let's talk about how this is impacting people across this country and how this is impacting people. Right. In my district in louisville, kentucky, Mr. mosher, if you're a company that wants to make a $500 million investment in us manufacturing, but in order to make that investment, you need to import a german stamping press or an italian six axis robot or a japanese injection mold line.
▶ 1:15:35Do you have to wait until we start making those things in the us before you make your investment? Or are you just expected to pay an exorbitant tax on importing these machines? >> we feel very strongly that the the tariffs should not apply to capital equipment such as such as you described. Uh. >> but they do right now. >> I agree. But what we should do, we should have it not not apply.
▶ 1:16:00Uh, the us, the rate of us manufacturing, labor productivity has grown at 0 to 1% per year for 15 years, whereas china is growing at 6% per year. If we expect to catch up with them in terms of costs, if we expect to be competitive, we need massively great investments in our factories and a tariff on on the machines does not allow that to happen. >> and there's some things right now to get those businesses going, you have to get them somewhere else.
▶ 1:16:29But the jobs are here. I mean, I see this in my in in louisville all the time. We've got bigelow tea in louisville. They make over a billion tea bags a year. Every job they have is in the united states. They got to buy the tea because tea can't grow in the united states. Got to buy it from somewhere else. The tariff coming in is debilitating. We've got a great shower door manufacturers 310 tim moore they make glass, custom shower doors. But you know, a lot of that equipment that they have to use to make that glass comes from italy. You can't get it here.
▶ 1:16:57But every single job they have is in america. So, um, I've heard from so many companies, they want to bring jobs back to louisville, a major auto supplier who currently operates in mexico, a cardboard manufacturer with operations in northern europe, and even iconic american brands like ge appliances. Uh, as Mr. mosher pointed out. But to set up a new factory or to expand a current one, you need machines. Machines that are so specialized, they're only made in a few places.
▶ 1:17:22So what do you do if you need a machine that's only made in an ally country, an ally country like germany or japan or italy, where you have tariffs upwards of 15%? Or what if it's only made in china or vietnam, where the tariff rates go up over 100% and change every single week? Mr. crane, what can we do for a company like ge appliances or other, such as I mentioned, that want to build in the united states, but are facing such staggering start up costs, is there a way to get them relief? >> thank you for that question, congressman.
▶ 1:17:51I think it's the right framing as we think about tariffs as a tool in the president's toolbox. As you indicated, uh, the most important thing that we've heard from manufacturers is rising input costs, right? So if you look at our outlook survey that I referenced earlier, the top concern has been trade uncertainty. The second concern is rising input costs. Manufacturers want to make things here in america. We're committed to that vision. The tax bill incentivizes that right. There's immediate expensing both for capital equipment purchases and for the factories that you're going to build or expand to put the equipment in.
▶ 1:18:20Um, so we want policies to support and encourage further investment along those lines. And, and I think having the tariffs be less impactful for those pieces of equipment that you're bringing in to invest here in america would be a step in the right direction, as my my fellow panelists have said. >> and so what I hear you saying is how we use these tariffs matter and the way the president is using these tariffs right now, they're making things more expensive for people to buy. They're making it harder for businesses to expand.
▶ 1:18:48And they're making it harder for businesses to provide the things we need at a cost people can afford. Because how you use a tariff matters, and the president is not using them in a way that makes sense for american people or american businesses. Thank you, Mr. chairman, I yield back. >> could I respond to that because I want what you asked is exactly what I'm going through. You said, what does a business do when their tariff on equipment coming in from overseas? What they do is they pay the tariff. Gentleman's time.
▶ 1:19:12They get invited, invited to washington dc to talk about, uh, maybe not necessarily throwing the baby out with the bathwater and calling everything about tariffs bad, but instead making a modification to tariff policy. >> that gentleman's. >> specific thing. >> using the tool correctly. Right. >> gentleman yields back. Uh, now recognize miss van dyne from the great state of texas for five minutes. >> thank you very much, Mr. chairman. Thank you for the witnesses for joining us today.
▶ 1:19:35I think today's hearing comes at a pivotal time as small business manufacturers are leading a resurgence in american manufacturing, powered by new export opportunities, strengthened supply chains, major new investments and new tools from the small business administration that are helping firms to reshore and scale here in the united states, the trump administration is taking meaningful steps to create an environment where this revival can flourish. And house republicans have complimented these efforts, most notably through the one big beautiful bill, which ensures small businesses can keep more of what they earn and reinvest in their operations and workforce.
▶ 1:20:03As part of that broader agenda, and in conjunction with today's hearing, I'll be introducing my made in america integrity act. This bill strengthens penalties for companies that falsely claim that their goods or services are made in america to win federal contracts, because it's that kind of fraud that directly undermines the manufacturers who actually invest in american workers. This bill protects the integrity of that designation for those who have truly earned it. And of course, manufacturing grows dependent on tax certainty.
▶ 1:20:28The one big beautiful bill act made permanent key provisions like bonus depreciation, 20% small business deduction under section 199 a and immediate r&d expensing. Manufacturers have been very clear that without these policies, we would see fewer jobs, lower wages and slower growth. And I appreciate, Mr. crane, you and your association's comments today.
▶ 1:20:51Um, you and in your association members well know that the tax provisions in the one big beautiful act bill, one big, beautiful bill, particularly permanent bonus depreciation in section 199, a small business deduction and the r&d expensing have been critical to manufacturers. So can you speak a little bit to what making the 20% paths through deduction permanent. What that means for small and midsize manufacturers. >> absolutely. Thank you for that question congresswoman. Taking a step back.
▶ 1:21:17Coming into this year, the 199 deduction was scheduled to expire, as well as so many other provisions from the tax cuts and jobs act. Our analysis showed that had those provisions been allowed to expire, we would have lost 6 million american jobs, not a cost the economy could bear, and certainly not one that you all were willing to let it bear, which is what led to the passage of h.r. One. When we think about the pass through deduction, the 199 deduction, specifically that that you mentioned, 96% of manufacturers are organized as passthroughs.
▶ 1:21:47So they're effective tax rate. >> what percentage? >> 96% of manufacturers are organized as passthroughs. So their effective tax rate is dictated by whether or not the 20% 20% pass through deduction exists, thanks to the one big beautiful bill act. It does exist. It's made permanent. So we have a lower effective tax rate on a permanent basis that allows manufacturers to keep more of what they've earned and invest those dollars in their communities across the country. >> thank you, Mr. mosher.
▶ 1:22:11You were, um, I know that that that congressman had asked you a question, basically about reshoring trends that you have seen in your experience, what motivates some companies to be able to reshore operations back to the us? Can you just expand on that. >> in our in our survey this year, we asked companies. We gave them five choices of, uh, policy actions that could drive them to bring back what percentage of what they now import.
▶ 1:22:33And they gave nice responses for lower taxes, less regulations, uh, lower dollar, things like that. They give the highest priority to skilled workforce, significantly higher than any of the other things that politicians typically typically talk about. And because they, they, they, they understand that if we're going to increase significantly in manufacturing, you need more people to do it.
▶ 1:22:58And you need better trained people, because we don't do as good a job of training hours as, say, germany, switzerland, austria, china, do, where they have good apprentice programs, excellent training. So the combination of more and better trained people is the number one priority. >> and that should be a wake up call, by the way, to our universities and our our high schools.
▶ 1:23:20And this is exactly what we're trying to take on in ways and means to make sure that if you're getting federal dollars, that we're actually training a workforce that can get jobs and be successful and meet the needs of of our growing american businesses. Mr. voss, I appreciate you being here today, and I want to give you an opportunity to actually answer the question that you got stopped, um, during our last, uh, during the last questioning about, you know, the tariff concerns, I look at this as almost like a rubik's cube.
▶ 1:23:43It's tariffs trade on, um, and, uh, you know, our taxes and tariffs, trade taxes, being able to like, be able to be flexible, um, knowing what is working when it's working and being able to move on a dime, as opposed to doubling down on failure is really a smart a smart approach. What have you found as far as our tax policies and how that's being affected with our tariffs? >> well, there's many uh, puts and takes as it relates to an income statement of a business. Uh, taxes are one of the takes.
▶ 1:24:14Tariffs are one of the takes. The current tax uh in in incentives made it a put for us. So these things were constantly balancing those things. My point is that, you know, I'm not here as a political person. I'm here as a business person. And no one can debate the fact that, uh, manufacturers in the us have been at a huge disadvantage for decades. That's been started to be corrected. We've been competing against foreign competitors for since our existence.
▶ 1:24:43Uh, it's been very tough because of the unfairness associated with, uh, you know, how they're treated. Um, so it's a breath of fresh air. We're gaining business as a result of the tariffs. Um. Thank you. >> we gentlelady's time is up. >> the things that we put that we buy from overseas, we have not paid a very small fraction of what the tariffs is. They have eaten most of them. Now, on the other hand, tariffs have been bad for me because. >> the lady's time.
▶ 1:25:13>> the equipment that I got tariff on that probably shouldn't. >> awesome. Thank you very much. I yield back. >> gentlelady yields back. Uh, I now recognize miss simon from the great state of california for five minutes. >> thank you, Mr. chairman and ranking member velazquez, for holding this hearing. And thank you, you all, for coming out today. This has been very, very thoughtful and helpful. Um, I'm proud to represent the east bay in california, california's 12th district.
▶ 1:25:37And it's a district where innovators are building technologies that will power and define both this and the next generation, from artificial intelligence that can diagnose early stage disease to clean energy solutions that are powering the transition away from fossil fuels. Our small businesses are proving day in, day out that they are the backbone and the lifeblood of our economy.
▶ 1:26:00This summer, I had the privilege of spending time and touring a remarkable small business in my district that manufactures autonomous maritime drones. I know it's a thing. Maritime autonomous drones, the incredible technology at this small business is designed and manufactured, however, receives components sourced from 43 states across this great nation.
▶ 1:26:31And this small business is a model for how businesses can create hometown jobs, drive technological advancement, and support local communities. Their story serves as a powerful reminder that when we invest in small businesses deep in our communities, we are investing truly in the national supply chain. But even cutting edge technologies like these in my district face very similar challenges.
▶ 1:26:59Some challenges that we heard today, manufacturers across the country have been speaking out to, I think, members on both sides of the aisle in this committee about these challenges. How can they compete with larger businesses in recruiting and retaining a skilled workforce when employees and their families require and deserve not only fair wages, but affordable, comprehensive health care? Mrs.
▶ 1:27:29Maldon, I have a question for you. Actually a couple do your employees use aca marketplace? >> yes. >> yes they do. >> I love when you answer quickly. Thank you. You're definitely not a politician I appreciate that, I'm sorry.
▶ 1:27:45Um, the kaiser family foundation, miss modeling estimates that nearly half of all adults enrolled in aca, half of all adults who are enrolled in the aca marketplace are directly tied to small businesses.
▶ 1:28:01So my second question if the aca enhance premium tax credits expire at the end of this year, which we know they likely will with no intervention from this chamber, how will small businesses like yours, how will you make it? How will you absorb these costs? What are these costs? Walk us through. >> thank you for that question.
▶ 1:28:32Um, our employees have to be healthy. They, as individuals, they deserve access to affordable health care. Um, so without a healthy workforce, especially the small manufacturer who does not have a second person to take the place of that machinist who has become ill and needs to, you know, have that time off, um, or doesn't have access to
▶ 1:29:04Adequate health care to be able to come through that illness and come back onto the floor. So, yes, um, affordable health care. Without affordable health care, you're not going to have a healthy workforce and small manufacturers are going to suffer.
▶ 1:29:21>> you know, I want to double back on the question if in fact, I only have a few seconds left, but if in fact, by the end of this year, you and your employees will directly be affected by the decisions made in this chamber regarding health care, what does that cost you? What are you thinking about? What january will hold for you in terms of providing health care for your employees? What are the costs?
▶ 1:29:50>> I know that I cannot afford a group health policy. Uh, that is why my employers, I work on a reimbursement program where I pay my employees a certain amount of money each month to help them with their premiums for health care. Um, if, uh, again, I can only say that the, the health care, if the health care is not available and affordable to our employees, we cannot afford a group health policy.
▶ 1:30:18So we're going to have people that are uninsured and you're going to have a loss in the workforce. It's going to be a fall down, if you will, or a flow down, uh, because the employee without proper health care is not going to be able to come to work. We do not, in small manufacturing, have access to a second person to slip them into that job. So small manufacturing definitely. >> will suffer. Time is up.
▶ 1:30:48>> I appreciate your answer and thank you, Mr. chairman. I thank you for being here and expressing this real need. Thank you. >> gentlelady yields back I now recognize Mr. lalota from the great state of new york for five minutes. >> thank you, Mr. chairman. Mr. moser, how you doing this morning, sir? >> I'm doing fine. >> thank thanks. >> thanks for having me here. >> good. I understand you're the president and the founder of a company that is in the business of onshoring and reshoring. >> correct. >> um, so your business is to help bring back manufacturing jobs to america.
▶ 1:31:18>> we're nonprofit, and we help companies understand all the costs and risks of offshoring and provide them with tools to help them make the decision and implement it to bring the work back. >> that's noble work. Uh, how's business going? >> uh, we don't make any money, but but but we've achieved a lot. As I mentioned before, the the total number of jobs per year restored has gone from 11,000 in 20 10 to 244,000 per year last year.
▶ 1:31:46So the results are I'm pleased. I'm delighted. Overall. >> great. Yeah. We appreciate that work. And I don't mean to put you on the spot, but I read your biography. I see that you have a bachelor's and an mit and a bachelor's and master's from mit and an mba from the university of chicago. So I'm going to presume you're our numbers guy on the panel this morning, if that's okay with you. I hope it is. Yes. Uh, what do you understand about america's trade deficit? Uh, internationally. >> uh, current trade deficit is about $1.2 trillion. Goods.
▶ 1:32:17Goods trade deficit, 1.2 trillion. And it's it's been, uh, stable at about 4% of gdp for the last 15 years. And that's a that's a huge amount that the one of the results of that is that foreign entities hold about 20 trillion more us assets than we than we hold of foreign assets. And therefore, in effect, we're net paying out interest and dividends and so on, on that 20 trillion that otherwise could be invested here in our, in our economy.
▶ 1:32:48>> and on the 1.2 trillion goods trade deficit. And I appreciate you making that distinction. Uh, about what part of that is attributable to china? >> uh, china was about $300 billion. So about 25% of the trade deficit. And now last year, I think, or this year, one of the other, down to about 218 billion.
▶ 1:33:09So it's definitely come down because we've, you know, not buying as much, but some of what they used to ship to us directly, they shipped through mexico or canada or vietnam or somewhere else. So it's not, not, not quite as big a reduction as I described, but it's there's still huge. >> and back to the 1.2 trillion, um, what um, what would you how far back does that go? How long has it been that big of a trade deficit?
▶ 1:33:38>> it's been about 15 for about 15 years. It's been 4% of gdp, which means 15 years ago it was maybe 900 billion, as opposed to 1.2 trillion. >> should congress care about these trade deficits? Why? If they are important, why are they important? >> uh, they're incredibly important. You know, one of one of the things that one of the people I follow is, uh, ray dalio changing world order.
▶ 1:34:03Some of you have probably read and he describes how, uh, hegemons or empires or countries rise in the peak out and they fall. And one of the characteristics of, uh, of being up here and starting to fall is a declining competitiveness when it, when a country or an empire gets into that condition, it's not competitive. It's got too much debt. Uh, it can't pay its bills, uh, etcetera. That's when you can tell that they're doing this.
▶ 1:34:31And, and so by reshoring, by stabilizing, by reversing those trends, I'm convinced we can stay up here nice and solid. And rather than entering a decline. >> and you've explained a little of the ways that from a policy perspective, we can stabilize that negative trend and perhaps get back in the right direction. I've read some of dalio's material, and this is informative to me, and I'm aware of some of the numbers on long island, uh, district uh, I represent. We've lost a heck of a lot of manufacturing jobs.
▶ 1:34:59We used to have about 88,000 manufacturing jobs. Now we're in the mid 60s on that stuff and we're looking for solutions, um, towards that. Um, what is the benefit in your mind of onshoring reshoring jobs from a quality of life perspective, from an inflation perspective, from an affordability perspective, why should congress care to promote policies that onshore and reshore? >> uh, from from a national perspective?
▶ 1:35:27Uh, I think at the bottom line, the defense infrastructure, the ability to produce the the missiles and the bullets and the tanks and the everything else we need, hopefully we'll never need. But if we do need them, we have to be able to produce them. And we don't have anywhere near the capability to, to produce them, but also in terms of excellent jobs, used to be a manufacturing job was a great job. And and it's not seen that much anymore. And but it's starting to come back.
▶ 1:35:54And especially as we as we promote the success of reshoring, the success of manufacturing, more of our youth will choose that role and have excellent careers. >> thank you. Appreciate you being here today. >> thank you. >> Mr. chairman. >> thank you. >> gentleman. Yields back I now recognize miss skelton from the great state of michigan for five minutes. >> thank you so much, Mr. chair. And thank you so much to our witnesses today.
▶ 1:36:17Uh, you're you're getting a lot of similar questions around similar topics, but that's because these are the absolute most pressing issues, uh, to our small businesses, uh, and particularly our small manufacturers, uh, around the country. I know that's true. Uh, in my home state of michigan, where more than 600,000 manufacturing jobs are supported by over 12,000 companies. Just think about that. Uh, the conversations we're having today is absolutely critical.
▶ 1:36:45How to ensure small manufacturers can thrive in an increasingly globalized economy. In west michigan, we are home to a manufacturing plant for the only domestic supplier of the specific yellow pigments used for road markings. Unfortunately, an estimated 96% of these pigments used for road markings are sourced from foreign manufacturers, including china and india, enabling our taxpayer dollars to leave the us.
▶ 1:37:15That's why I have introduced the bipartisan paving the way for american industry act, which would ensure our roads are paved using paint that's made in america. Miss madeleine, my first question is for you. The current administration's chaotic tariff policies. Uh, my my colleague and I, Mr. mcgarvey, we talk all the time about how it is, uh, not inherently good. Tariffs are not inherently good or bad. They are simply a tool. Uh, the way they are been have been used, have left many manufacturers scrambling.
▶ 1:37:44What more can congress do to protect businesses like yours? And the one in my district, uh, that are critical to keeping our supply chains at home. Congress specifically. We're here to hear. We're hear from you. >> thank you for the question. Um.
▶ 1:38:05I have to say, to begin, exemption for small manufacturers, exemption from those tariffs, that would be the ideal position to take to encourage the and support the small manufacturing environment. >> I have a series of questions. So I'm going to kind of go through them quickly. But um, sticking with you, uh, Mrs.
▶ 1:38:31Maudlin, your testimony touches on the importance of having resources to train staff. One thing I really hear about from small business owners in my district is the need for more training resources. In addition, for their guidance on how to utilize the latest technologies for their business.
▶ 1:38:47Um, my bill, the wise act, just passed out of this committee on a bipartisan basis earlier this week, and it would ensure that small business, the sba, specifically adds educational content on utilizing artificial intelligence so business owners can have the tools that they need, uh, to strengthen their businesses. It's critical that we support entrepreneurs, uh, in this way.
▶ 1:39:11Are you aware of any programs through the sba that help small businesses currently, uh, embrace new technologies? >> I have to say that I am not currently aware of any sba programs that would directly assist the small manufacturing environment. >> and moving on. Thank you for that. Uh, we're hoping to change that.
▶ 1:39:39Uh, michigan is home to a manufacturing extension partnership program that has been a critical resource for manufacturers in our state for decades. The michigan manufacturing technology center has been uplifting businesses that support, uh, with the support of congressional congressionally directed mep dollars. In 2024 alone, mtc helped clients increase sales by over 158 million. Think about that revenue generation.
▶ 1:40:08Earlier this year, the trump administration notified mtc that it would not renew its mep cooperative agreement, jeopardizing 157 manufacturers. In my district, um, over 16,000 workers. I fought back, calling on the administration to renew the mep agreement. And uh, one as the administration later announced that they renewed this agreement, it was critical. Um, Mrs. maudlin, I want to ask, have you had any experience with the mep programs?
▶ 1:40:36And do you think sba could collaborate with mep centers to better assist small manufacturers? >> I have not had direct, uh, you know, work. I've not worked with an mep okay. Program. Um, but I do think I do understand it enough to to suggest that it would definitely be something that, uh, would benefit the small manufacturer.
▶ 1:41:01Um, and so the, um, the answer to that is because I have not used the mep, sba programs. Um, I just can suggest that it would be beneficial in the small manufacturing environment. >> okay, that's very helpful. Um, my time is up, so I yield back. Thank you. >> gentlelady yields back. I now recognize Mr. weed from the great state of wisconsin for five minutes. >> thank you, Mr. chairman. Thank you to all the great witnesses here today.
▶ 1:41:30This is a very good discussion and and very important to, uh, you know, our priority in reindustrializing this great country. And I think, uh, just really, um, appreciate all of all of your, um, you know, expertise in my district, from paper to shipbuilding, plastics to heavy manufacturing. Um, northeast wisconsin is a manufacturing powerhouse employing almost a quarter of the working population.
▶ 1:41:56Uh, in my district, also, 90% of all manufacturers are small businesses. Uh, we obviously have a lot of challenges. Uh, some of the challenges that we face are difficulty in finding skilled workers. And of course, we see a declining interest in our trades. And, um, so obviously that's, that's that's one of the major, um, issues that we're dealing with. Um, first question I'd like to, to go to though, um, Mr.
▶ 1:42:22Voss, in your statement, you talked about companies that you work with overseas. Um, in your experience that that you said were eating the cost of tariffs, can you can you expand on your experience in working with other companies and importing and the cost of tariffs? >> sure. So through the years, you know, we have imported from manufacturers abroad.
▶ 1:42:45Uh, we still do a much lesser percentage of the goods that we distribute, uh, come from foreign sources. But the ones that we continue to do now, we have not seen an increase in our costs because we've pushed back, because, frankly, if they would have put the burden of the tariff on us, they would have no longer been competitive.
▶ 1:43:07So in that case, the tariff did exactly what it was supposed to do in that they took a smaller slice of the pie rather than passing it on to the consumer here. And moving forward. We're seeing, uh, input costs, polycarbonate resin, for example. The cost of that is coming down. And that's going to be that's reflected in our pricing to our customers and our customers pricing in the marketplace. >> what would be the cause of those prices coming down or what? What would be the reason for that?
▶ 1:43:36>> well, first of all, competition. Second of all, they're petroleum based and the cost of petroleum has come down over the last couple of years or the last year for sure, not couple. >> uh, so. Well, and I also want to expand on, um, your experience that that you have right now, uh, in partnering with the irish company to reshore the polycarbonate manufacturing, how has controlling your supply chain benefited you? And tell us about that experience? >> well, uh, a good example.
▶ 1:44:07And I and I tell this story, you know, we had we were the master distributor for a couple of very large manufacturers, big companies, and we periodically get the dear valued customer letter that, uh, the prices, prices going up due to various things that they articulate in the letter.
▶ 1:44:25Well, it was just at that time that we were having a routine review of our business model with our new found partner, and our deal was that we were going to buy from, in other words, the polycarbonate manufacturing company sells to one of our our company to our sister company. And we were talking about the pricing along that.
▶ 1:44:47And, uh, we were pushing back because the pricing had come down a little bit, uh, since the last time we had reviewed this. And at the same time at the same week that we got letters from two of the major manufacturers that the prices had gone up. In talking to our partner who buys polycarbonate resin, they're one of the biggest polycarbonate manufacturers in the world. They said, well, that's not surprising because the cost of resin has actually come down. We wouldn't have known that as a distributor. But as a manufacturer, we do know that.
▶ 1:45:15So again, having our future in the hands of either foreign companies or, uh, companies that maybe are owned by private equity, uh, are different than having control your own future. And so that was a big driving force in our strategy. >> well, how. >> in your opinion. >> um. >> how are manufacturers, you know, what's their ability to reshore or expand their operations? How are they hurt? Uh, by overregulation. I hear about regulation.
▶ 1:45:43I was in my own business for 30 years. I struggled with overreaching government regulations on a daily basis. Very, very costly to $50,000 per employee. Um, can you expand? >> well, all I can say is, you know, my experience is that, you know what starts off as a good idea, uh, morphs and evolves, and you have people that are implementing those those policies and procedures, and they get overzealous and they want to justify their existence.
▶ 1:46:13And those bureaucracies continue to increase. And many times the regulations expand beyond what the original scope was intended to be. We haven't, frankly, encountered that to a large degree. So it's hard for me to comment specifically on that. >> all right. Thank you again to all the witnesses. With that I yield back. >> gentleman yields back. I now recognize Mr. olszewski from the great state of maryland for five minutes. >> uh, thank you very much, Mr. chairman. >> to our ranking member and to all all our witnesses.
▶ 1:46:43Appreciate you all being here today and to discuss how we can advance domestic manufacturing for american workers and families. Mr. mosier, I believe both you and I grew up watching businesses support our neighbors and families. Um, some of those businesses, unfortunately, being removed from global offshoring. My my story involves growing up in the shadow of a steel plant in eastern baltimore county. It was a bethlehem steel site.
▶ 1:47:05It was a site that produced, um, steel used to build ships in world wars, parts of the empire state building, the golden gate bridge, the chesapeake bay bridge. We employed roughly 31,000 steelworkers and other employees at the heyday of the plant.
▶ 1:47:23I also watched that plant collapse over several decades and the fallout from people losing their health care, losing their pensions after giving a lifetime of service to that manufacturing here in america. So we do need to uplift the american manufacturing industry. Uh, clearly, I was shocked, um, when we saw the tariff policies of this administration take place. I agree with my colleague, Mr.
▶ 1:47:49Mcgarvie earlier that it is a tool that can and should be used in important ♪and critical situations. I would have loved to have seen action with tariffs when china was dumping steel, um, very cheap steel that really put and pushed that plant, uh, towards its closure.
▶ 1:48:08And so, uh, certainly welcome the conversation, but think that tariffs need to be thoughtful as we do that in 2023 through both the infrastructure investment and jobs act and the inflation reduction act. That steel site that I spoke of earlier received investments to become maryland's first permanent offshore wind turbine factory under a new name, sparrows point steel.
▶ 1:48:32Sparrows point steel produces the monopile foundations and other steel components that's needed for maryland offshore wind projects, and has the capabilities to service the entire us offshore wind market on the east coast. It is a job creating engine there that has the potential to put thousands of people to work. Not in china, not in europe, but right here in america.
▶ 1:48:54And my concern is, after we've already gone through this experience where we've seen a steel plant shut down, we are now on the cusp of having a revitalization of manufacturing in my district. We are seeing an administration playing political games with arbitrary tariffs, but also skyrocketing health care costs and even trying to cancel support for the very projects they profess to believe in manufacturing.
▶ 1:49:20This administration pulled back a $47.4 million grant from this project, jeopardizing it. How is that making america great again? More recently, uh, we are also dealing with the fallout from the collapse of the francis scott key bridge. Uh, it is a critical lifeline, not just for maryland and the mid-atlantic, but for moving goods throughout this country.
▶ 1:49:43And so I stand ready to continue advancing opportunities and legislation to encourage manufacturing, um, and working on training that was mentioned earlier. Uh, and of course, look forward to those productive dialogs. So a few questions on that, because I'm also concerned about the impact of tariffs on that critical infrastructure project. So first on the bridge, um, clearly steel and other components are a big part of that construction.
▶ 1:50:06Um, would the panel here support exemptions for large scale american infrastructure projects that will rely on tariff goods that are going to drive up costs for businesses, consumers and taxpayers alike? Is that something that we think we could be supportive of? Um, in that work? >> exemptions from what. >> large scale infrastructure projects, such as the rebuild of the francis scott key bridge in baltimore? >> well, I agree that all those components should be sourced in the us.
▶ 1:50:35>> if and if not though, should, should, should steel or other products, if they're not sourced here, should they be charged a tariff? >> yes. Yeah. >> you think they should. Okay. Um, and then regardless of where the tariffs are coming or your positions on tariffs, I'm just curious for the panel here. Um, going back to that grant, um, for sparrows point steel, um, do you think we could or should look at ways to use that tariff revenue to support those projects rather than pull that funding from them?
▶ 1:51:08>> that's a policy question. You've got a million different projects and a lot of hands out. You've got to decide where it best goes. >> well, in general, should. >> we. >> be supportive? But should we be investing in. >> should we be manufacturing. >> in the united states? And when we have these types of opportunities to reintegrate manufacturing in the united states, I mean, is it good policy to pull awards when we have a $500 million manufacturing project on, on the, on the books, and that's moving forward and then pull that funding.
▶ 1:51:37>> I don't know enough about it to respond. >> all right. Thank you, Mr. chairman. I yield. >> gentleman yields back. I now recognize miss king haines from the northern mariana islands for five minutes from the mariana islands. >> thank you, Mr. chairman, and thank you to all of you for being, uh, making time to be with us today. I want to I'm from the marianas. And, um, you know, we have one economy we're trying to diversify to get because we've seen a lot of interest with regards to manufacturing. Right.
▶ 1:52:06Folks who want to come and set up shop there. So I'm very, um, focused on the conversation with regards to retaining the right amount of workforce to be able to sustain manufacturing, because we that is our biggest challenge. And so we've talked about the problems. Right? I think a lot of you have kind of alluded to different things.
▶ 1:52:29I'm kind of more focused on what is it that congress can do to actually address the problem so that, you know, however many years from now we don't have this massive amount of shortage, right, that can't sustain your industry. And I'll open up the floor to whoever wants to answer first. >> I can go first. Go ahead. I was just going to say we haven't talked that much about health care. And we we know about these credits that are expiring.
▶ 1:52:58Um, I just don't think we should keep subsidizing a broken system. The health care system is broken. We need a new strategy. So to the extent that we continue to tax ourselves to pay for broken strategy and then us employers, it costs us more to provide health insurance for our employees. That's what's got to stop. So this isn't about whether or not to extend a credit on a failing system throughout the system and start over and find a system that works and is cost competitive with the rest of the world.
▶ 1:53:29>> I could put that in perspective. It turns out that the, the, uh, average health care cost of a family of four in the us equals the average wage of a chinese worker, and the health care cost of the family in the us gets built into the burden that gets built into the cost, it gets built into the price, and therefore the health care costs.
▶ 1:53:49The higher health care costs in the us is a major reason why our costs are too high and why we lose based on cost or price relative to countries like china. So I agree entirely that something has to be done. >> can I follow up then? So are you attributing that cost to the inability to retain workforce?
▶ 1:54:10>> it makes our costs the cost of making a product too high in the us relative to other countries, and therefore us companies choose to import low priced products from offshore instead of buying higher priced, more or less equivalent products here in the united states. >> so I think there's two angles here. One, from the healthcare perspective. Certainly manufacturers view that as a critical tool to attract and retain talent across the industry.
▶ 1:54:3895% of manufacturing workers are eligible for a workforce health care plan through their employer. Uh, and north of 80% actually participate in one. Um, we have certainly heard, as has been referenced from our members, that the rising cost of health care are a significant cost driver for manufacturers. And so it certainly would help with the workforce situation to reduce those costs on sort of pure workforce policy. We certainly should support more training programs and apprenticeships.
▶ 1:55:06We've talked some today about education, about what the manufacturing industry is. It's not your grandfather's manufacturing industry anymore. It's not dark, dirty and dangerous. It's cutting edge. It's innovative. It's well paid. These are family sustaining careers. Uh, and so if we're supporting career and technical education programs to get manufacturing workers out of the cte programs and onto manufacturing shop floors, that's a huge step in the right direction of building manufacturing workforce of the future.
▶ 1:55:32In addition to immigration policies that help us fill the jobs that we might not be able to fill with the domestic workforce. So there's a lot of pieces to that puzzle to ensure that we have the skilled workers that we need to drive manufacturing forward. >> okay. I have a follow up question, uh, for you, Mr. crane. So, you know, in your testimony, you describe how large companies often have the resources to maintain internal training programs the small businesses lack. And you mentioned the need for policies that would allow small businesses to close that gap.
▶ 1:56:02Can you just be a little bit more specific so that we get an idea of what your thoughts are on that issue? >> absolutely. What we have heard from so many of our members is that they actually partner with local community colleges, cte institutions, uh, to to set up training programs or to even just ensure that the existing programs that that community college has are reflective of the skills that manufacturers need.
▶ 1:56:26And so, from my perspective, continued focus on those skills, specifically, uh, and in helping prospective students or adults who want to go back to school or even adults who are employed, uh, who want to gain those skills that we're really focusing from a policy apparatus on manufacturing specific skills. So machinists, technicians, welders, electricians, etc. If you have those certifications, that's going to set you up for success in manufacturing and help the industry writ large. >> I'm out of time.
▶ 1:56:55Thank you, Mr. chairman. >> gentlelady yields back I now recognize Mr. cisneros from the great state of california for five minutes. >> thank you, Mr. chairman, and thanks to our witnesses for being here today. Um, Mrs. maudlin, I'm going to start with you. Um, my colleagues always like to say that whenever they ask small businesses, not one says we need more regulation. However, they ignore that small businesses share their primary concern and cost and the uncertainty from tariffs.
▶ 1:57:24Uh, whenever I ask small businesses, not one says they want to pay more for supplies or increase their cost. Uh, do you want to pay more for your supplies? Have you ever heard of any small business owner saying they want to increase their cost? >> thank you for that question. Um, no. The we don't want to increase our cost. And I cannot fathom another small manufacturer wanting an increase in cost. >> yeah. So can you.
▶ 1:57:54Uh, what impact are the tariffs having and the uncertainty? Um, you know, I brought up in a markup yesterday. Right. Uh, all the small businesses in my district, the one thing they just say that they want is stability. Stability. But yet when the president decides he's going to raise tariffs 10% on canada because he didn't like a commercial we saw during the world series, there's no stability there.
▶ 1:58:21Um, what impact is the tariffs having, you know, with you and other small businesses that you know of? >> the impact of the tariff is first, you're absolutely right. It's unpredictable what's going to happen tomorrow. Okay.
▶ 1:58:39On the tariff side, we have to set prices and we have customers that the price is set and they're not going to accept and increase in price. Once price increases, it's not going to really come down.
▶ 1:58:58So the unpredictability in this tariff situation is uh, is really puts us in, as I said before, I'm trying to predict in forecast into 2026 at this time, and I'm finding it very difficult to do because I don't know what to expect. And because I use several different types of, of alloys and different types of, of metals.
▶ 1:59:27Um, and the tariffs are possibly suggested to be aluminum tariff might be 25%, today might be 45% a week from now. Um, one of the most expensive tariffs I have is the carbide. Carbide used in tooling that goes on all of the equipment that I use to cut the metal. So carbide right now is under 90% tariff.
▶ 1:59:53So the tooling that I use is almost unattainable. So the bottom line is small manufacturers don't have big margins. We don't have a lot of cushion. Uh, so this unpredictability in the tariff, um, policies, um, is really causing us to question sustainability. >> all right. Thank you, Mr. crane.
▶ 2:00:23Uh, in your testimony, you shared that it that in the national association of manufacturers outlook survey, trade uncertainty, rising raw material costs and increasing health care costs topped the list of concerns. If there was a way for you to share those concerns with the sba office of advocacy, and they then advocated research and did or did whatever they could to raise those concerns across the federal government. Would you welcome it? >> absolutely.
▶ 2:00:50The office of advocacy is a critical voice for small manufacturers within the sba and within the federal government at large. >> well, thank you very much for that. And so, you know, we are in the process of putting forth a bill that will do that will allow business owners to come forth and to raise their concerns when it comes to immigration, uh, tariffs, uh, as well as health care concerns for businesses. And uh, hopefully that will be welcomed by business there.
▶ 2:01:17So you can share with them and then have the the office of advocacy come out and report to us what input they are taking in. So, uh, that's coming in the future. And with that, Mr. chairman, I yield back. >> uh, gentleman yields back. I now recognize Mr. stauber from the great state of minnesota for five minutes. >> thank you very much. Chairman williams and ranking member velasquez for holding today's hearing. And thank you to all the witnesses for lending your insight into the resurgence of america's manufacturing space.
▶ 2:01:47Minnesota's eighth congressional district lives and breathes manufacturing from the iron ore on the iron range that feeds our steel mills to the small shops and fabricators in duluth, hibbing, brainerd, forest lake and across northern minnesota. Manufacturing is our neighbors livelihoods. When production moves overseas, it's a lost paycheck, a shrinking tax base and one more young person who decides there's no future for them in the trades.
▶ 2:02:12Back home nationwide, we're reminded that manufacturing is overwhelmingly a small business story. As Mr. crane notes, 93% of manufacturers have fewer than 100 employees and 75% have fewer than 20. These are the kind of employers we're talking about today. Family owned shops and small firms that are innovative but are also the most sensitive to tax hikes, regulatory costs and permitting delays.
▶ 2:02:37The one big beautiful bill act gave us a permanent pro-growth tax code with tools like immediate expensing and pass through deduction and higher estate tax exemption so family manufacturers can keep investing, hiring and passing their business on to that next generation. Mr. crane, for these small businesses, what are the top 1 or 2 policy changes beyond the tax code that will help them turn that tax certainty into actual investment in new equipment and jobs on the ground?
▶ 2:03:07>> thank you for that question, congressman. I would turn your attention to permitting reform. Uh, as you indicated, the tax bill has a number of incentives for manufacturing investment. But if you can't get the permit to get that investment off the ground, then the tax bill hasn't had the maximum pro-growth effect that we would have wanted it to write. And so with respect to permitting reform, if we can reduce the timelines for permitting, review and approval, then that gives manufacturers more certainty to invest in these long term projects.
▶ 2:03:33And if we can reduce the uncertainty associated with never ending litigation on the back end through judicial reform, both of those things would improve the permitting process. Here in the us, those are both governed by the national environmental policy act, nepa. There's actually a bill, funnily enough, being marked up today at the natural resources committee called the speed act to do exactly that. Um, so it's thrilling to see that we have momentum in the direction of permitting reform to build on the success of tax reform. >> thank you, Mr. crane, for mentioning the speed act.
▶ 2:04:02I just left the natural resources committee in support of that, and that is going to pass in a bipartisan fashion. I really appreciate you bringing that up, because permitting reform is a high priority for all industries. Thank you. Uh, you know, we've talked about the condition small manufacturers are facing here at home. I want to zoom out to the decision point where companies choose whether to keep chasing the lowest offshore price or bring production back to the united states. Mr.
▶ 2:04:27Moser, your testimony shows that reshoring and foreign direct investments have grown from just a trickle to hundreds of thousands of announced jobs a year, with roughly half of those in the small supplier community. From your experience, what are the main reasons companies decide to move production back to the united states? And what more can we in congress do to push large oems to deliberately bring more of their supply chain back to the small us manufacturers?
▶ 2:04:55In places like my hometown and my my district, northern minnesota? >> well, the main reasons they came back, they say, are first having manufacturing near engineering so the small manufacturer can work with the big, big company and communicate work together partner. The second was duty and freight and third was geopolitical risk. The risk of something happening over taiwan and being cut off for five years or something from your supply chains.
▶ 2:05:24So we came out with a geopolitical risk map that shows the probability of decoupling with each country. So the companies can calculate the risk of not reshoring and justify somewhat higher prices here. Um, in terms of actions that you can take, you know, one of the things in terms of the tariffs is to firm up the tariffs, especially for the big companies.
▶ 2:05:49They want to they're going to they're thinking about investing $1 billion and taking three years to build the factory and six months to hire people. And if they if the tariffs could go away halfway through that process, the guy who decided to do it gets fired. Okay. So we need to firm the tariffs up, make them solid, make them such that they're going to last at least through this administration, preferably the next. So the companies will believe and they will act. >> yeah.
▶ 2:06:13You know you talk about tariffs the 232 steel tariffs that both president trump and his first uh administration and then president biden, uh, they kept the 232 steel tariffs on because we know the belt and road initiative of the chinese communist party is to destroy our steel making and our mining industries here in the united states of america. We can't do that. We need certainty. We can lead the world. So with that, Mr. chair, I yield back. >> gentleman yields back. I now recognize doctor morrison from the great state of minnesota.
▶ 2:06:43Also for five minutes. >> thank you, mister chair. We're having a minnesota minute here. Uh. Minnesota here. Uh, I appreciate you, uh, chairman williams and ranking member velasquez. And I'm very honored to occupy her seat for the moment, for holding this hearing.
▶ 2:06:58Uh, and thanks to the witnesses for being here today to have this important conversation I've been hearing from so many small businesses, uh, small business manufacturers, specifically in my district and across minnesota, uh, about how the tariffs, the trump administration's tariff policy are making it impossible for them to plan and to grow as they work to navigate this level of unprecedented uncertainty. And I do just want to know, Mr. crane, you you mentioned that tariffs are a tool in the president's toolbox.
▶ 2:07:30And I just this administration is doing many unprecedented things that should not be normalized. And I just want to take the moment to remind all of us that tariffs should be a tool in congress's toolbox, according to our constitution. Um, Mr. crane, the national association of manufacturers outlook survey found that trade uncertainty is american manufacturers top concern for three quarters. Um, essentially since the start of the year.
▶ 2:07:57Yet there's limited um, you didn't talk so much about tariffs in your testimony. Um, about, uh, concerns or proposed solutions around that. I just want to give you the opportunity now to speak to the national association of manufacturers recommendations to address the impacts of tariffs and uncertainty on its small business members. >> thank you for that question, congressman. I'll start with the uncertainty piece, which is that manufacturers need certainty to plan for the long term. That's true with respect to tariffs. It's also true with respect to regulations.
▶ 2:08:26It's true with respect to tax. And so a lot of the policies that we've supported as an industry are designed to provide manufacturers, especially small manufacturers, with that certainty. So they can make those long term job creating investment decisions. With respect to tariffs specifically, uh, the conversation we've had today, I think is really instructive, uh, with respect to how tariffs are a tool in policymakers toolbox.
▶ 2:08:50Um, the dynamic that we've heard so often from our members is that they want to invest here in america, which is a goal that we obviously share with congress and share with the president to grow domestic manufacturing. But if you need an input from elsewhere to do that, there can be costs associated with that under the current tariff environment. In many cases, that's specialized equipment and machinery that comes from elsewhere. And some instances it's raw materials, it's energy resources, it's critical minerals.
▶ 2:09:16So what we've focused on is ensuring that manufacturers can bring those inputs and machinery here to make things in america. And in fact, tying that to your ability to make things here in america, which we think would allow the administration to maintain a tariff, a strong tariff environment, but also allow manufacturers to make things here in america. >> thank you for that.
▶ 2:09:35Um, today I'm introducing the small business relief act, which would exempt small businesses from president trump's baseline global tariffs and provide refunds to small businesses that were forced to pay them. Um, I'm wondering if, um, any of you have a perspective on that idea? >> can you repeat exactly what the bill would do? Sure.
▶ 2:10:02>> uh, it would exempt small businesses from president trump's baseline tariffs. So liberation day tariffs, uh, and then provide refunds to the small businesses that were forced to pay them. >> how do you define small business? >> uh, by the way, the sba defines them. >> which is how. >> depends on the industry. Um, but it's usually less than 500 employees, I think less than 7.5 million in revenues.
▶ 2:10:34>> you guys have an opinion on that? >> something to ponder. >> I'll throw in an opinion first. It's a nice idea, but my fear would be that the instead of the big companies importing material, they'd have their suppliers import the material. Uh, claim exemption under the small business act and and then sell it up to the big companies and they would have avoided they would have made the tariffs totally ineffective. Unless you have something in it to prevent that from happening, then that would be a concern. >> okay.
▶ 2:11:04>> thank you. If I could add to I think, um, with all due respect, you're exaggerating the effect on small business in the negative effect on tariff. We haven't had a negative effect. We've had a positive effect. We have customers that are able to compete more effectively, so they buy more product from us. >> respectfully, sir, that is not what I am hearing from small businesses in my district. Um, miss modlin, could you speak to the national association of manufacturers proposal, the us manufacturing investment program?
▶ 2:11:33What that would mean for small businesses like yours? >> thank you very much for the question. National association of manufacturers, in any way, shape or form to assist the small manufacturing environment would be welcomed. Um, so I can I can say that, uh, I would definitely encourage some conversation.
▶ 2:12:01To include the small manufacturing industry. >> thank you, thank you. And I see my time has expired I yield back. Thank you, Mr. chair. >> gentlelady yields back. I now recognize Mr. downing from the great state of montana for five minutes. >> thank you, Mr. chair. Thank you for holding this hearing. And thank you to the witnesses. Um, I wasn't planning on talking about, uh, health insurance at all, but, uh, some of the comments by messrs. Voss and crane kind of sparked some thoughts here.
▶ 2:12:29Um, you know, one of the things, uh, Mr. voss that you mentioned, uh, is you didn't want, uh, businesses or taxpayers through tax credits to be paying into a broken system. And, uh, one of the things I just want to be clear on that is, um, the tax credits that have gotten so much press the last couple of months, these enhanced premium tax credits only affect the individual market.
▶ 2:12:54So that's not affecting, you know, the small groups, which, you know, is probably mostly what you're talking about in terms of the costs for um, for an employer, for small business. But what we have seen, we do have a broken system. And those premium tax credits are trying to, you know, mask a broken system. But what we have seen are 15 years of rising provider costs, 15 years of rising drug costs.
▶ 2:13:19And because of that, we've seen 15 years of adverse selection, which has concentrated the risk, which is driving those costs up. But I agree with you 100%. Small businesses, um, and taxpayers shouldn't be bearing the brunt of those costs. So I appreciate those comments. Um, now, uh, on to my prepared remarks. Um, you know, first of all, I'm going to start with with you, Mr.
▶ 2:13:40Crane, in your testimony, you mentioned the 44% of us manufacturers plan to increase their ai and smart factory technology investments this year. What areas of manufacturing business operations has ai technology been the most effective in streamlining? >> we've really seen this across the industry. And thank you for that question. You know, I know a lot of times folks think about silicon valley when they think about ai. And I understand why that's the case. But it really has been transformative for the manufacturing shop floor.
▶ 2:14:09It's making workers more productive. It's making supply chains more efficient. It's making shop floors safer for those workers. We have really seen it across the industry. From a small business perspective. We want to make sure that small businesses aren't left behind from this transformative activity. And so anything we can do to ensure that they aren't burdened from seeking to adopt or understand these technologies will be a huge step in the right direction. >> what do you see as the biggest hurdles for manufacturers in adopting ai technologies and incorporating these into their business?
▶ 2:14:40>> so if you look at the the president's ai action plan, which is designed to support american ai dominance, which is obviously a goal that nam supports, I assume many of you do as well. He's focused, and we are, as well as preventing one size fits all regulations, there are certainly risks associated with ai, but those are risk case specific risks. Manufacturers using ai to make their supply chain more efficient doesn't present the same risk as generative ai, for instance.
▶ 2:15:07And so we want to be sure that any regulations that are applied to the ai space don't impact manufacturers ability to invest in this technology. >> um, obviously, uh, ai is going to have incredible power demands moving forward. We need to be able to power this. We need the energy production in the united states. What what should congress do to support increased energy production so that we can fuel this economic growth? >> so manufacturers are both producers and users of energy.
▶ 2:15:36We're disproportionately users of energy because of the energy intensive nature of manufacturing production. And that's even more true thanks to ai. So we need in all of the above energy strategy, we need to unleash america's natural resources, think offshore and onshore leases. Uh, we need more investment in critical minerals to improve battery technology. We need to invest in nuclear fuel so that we have more baseload power generation. But it's not just production, it's also transmission.
▶ 2:16:02Do we have a reliable, resilient, affordable grid that can get the electrons where we need them to go? And finally, do we have permitting reform to get these energy projects off the ground to ensure that we can invest in these energy resources that we need to power our industry? >> thank you very much. Uh, running out of time quickly here. Um, thank you for those answers. I'm going to move to Mr. moser. Um, thank you for being here today and your testimony.
▶ 2:16:27You highlighted a survey from this year showing that manufacturing costs are, on average, 50% higher in the united states than in china. What have been the most effective policies and arguments to overcome this financial incentive to offshore and convince businesses to or. I'm sorry. Yeah. To convince businesses to return their manufacturing operations to the us. >> probably. >> microphone, please. >> what has probably been the most effective so far?
▶ 2:16:54I'd say I believe the tariffs are starting. I mean, it's a difficult start but starting to become effective in the long run. We advocate most strongly that the use of total cost of ownership instead of price for making the sourcing decision, and if all of all the congressmen and the president would urge their constituent companies to do that, that alone could bring back a million jobs without without congress having to spend a penny. >> outstanding. Unfortunately, I've run out of time.
▶ 2:17:22Thank you all for your participation and your answers. And on that, Mr. chair, I yield. >> gentleman yields back. I now recognize Mr. petronas from the great state of florida for five minutes. >> thank you, Mr. chairman. Um, this has been great. I've been I've just really enjoyed all the the commentary, the questions, and especially y'all's participation.
▶ 2:17:40Um, I was back in the florida legislature years ago, and, um, at that time, governor rick scott was just adamant about trying to find advantages for manufacturers in the state. So we were successful in passing a sales tax exemption on manufacturing equipment and just trying to compete with the joneses of what other states are doing. But I've never kind of thought about here, you know, or or their advantages.
▶ 2:18:07I'm I'm all about, look, I'm in the restaurant business for 30 years and I'm all about, you know, not trying to reinvent the wheel, especially if I can steal somebody else's wheel and make a, make a, you know, a version of it that that works for me. Are we doing the same thing for y'all or are we taking advantage of other ideas or. I mean, look, an idea that you may have in one of your state markets that you're in. There's no reason why that can't be federal policy either.
▶ 2:18:37I just loved anybody to chime in with whatever I mean, and I really, uh, Mr. voss, I've wrote it all down. Um, you blasting the health care system as something I totally take to heart? Um, as as a family and a small business. Uh, that's something we feel every single day. How am I going to be competitive in the most competitive business? When you can go anywhere to serve dinner for your family? So. But any comments y'all have regarding solutions that we should be stealing from somewhere else?
▶ 2:19:07I'm good with that. Anybody? Yes, sir. >> are you asking what florida can do or what the us can do? Us. Both? Us? >> yes, sir. >> I come back finally to skilled workforce engineers. Uh, for example, uh, college loans should be preferentially awarded to people, americans that want to study engineering physics. Et cetera. Et cetera.
▶ 2:19:29And then, uh, those who don't get loans should be excellent candidates to become toolmakers welders, precision machinists who will. We'll have fewer, uh, defaulted loans, and we'll have more people doing the work that needs to get done. >> so let me dovetail off of that. Um, again, I don't know if the chairman sees it in his garage, but. Do we have the right temperament in the workforce in order to try to I mean, I know we can continue to throw money at education.
▶ 2:19:59Um, but are we are we are we sending the right type of people into the workforce that want to work in these type of positions? Are there are there other solutions that we're not thinking about? >> I think as, as they as the youth and their parents see manufacturing coming back and that once again, it's a wonderful career, a great way to get ahead. I was talking I was at a meeting two days ago, and the average service engineer for the machine tool companies is making somewhere between 100 and $150,000 a year. That's great.
▶ 2:20:29Which is which is higher than the average for phds. But the kids don't know that because the guidance counselors don't tell them. >> so my first own story, my first degree was a culinary arts degree, was a two year certificate program. And after I got finished with it, I thought, wow, I can do more of myself than just, you know, cook. But I got that immediate gratification. I just did something on my hands so I didn't have to look at a paper and see an a. I saw somebody enjoying what I just created. So I'm now I'm motivated to get to your point.
▶ 2:20:58You just said to want to go ahead and get a bachelor's degree. And, um, I get these roadblocks by academics because now none of the classes I took at the same institution would qualify towards a bachelor's degree because they were too specialized. So it was crazy. And I went as far as to the university president. I said to the college president, said, why is this a case? He says, jimmy, there's just a part of our society where we gotta keep the plumbers out of the classrooms.
▶ 2:21:26And it broke my heart, but it gave me, you know, a reason why. You know, I've gotta fight to make sure that, again, the tech schools get somewhat of equal footing with the glamor of the academic institution. >> I've got an actual story about that. And that a vp from, uh, wisconsin, I think prattville, one of their one of their colleges and. No, actually, he was from milwaukee area technical college, a big community college. >> are you listening? >> okay, milwaukee area technical college.
▶ 2:21:55And he was bragging about the fact that that institution was the second largest graduate school in wisconsin, because only madison got more people who already had bachelor's degrees, because the bachelor's degrees, who couldn't find a job to pay off their debt, came, came, and learned to become a plumber or a toolmaker, a welder, so they could make a good income and have a good career. >> well, I'm with you. I look, I'm I'm a big believer in the in the two year degree program. It, uh, I'm here because of it.
▶ 2:22:22Um, but it was a stepping stone to help me just become some maturity and, and understand the importance of, of workplace, you know, efforts. Anyway, thank you all for showing up. Thank you, Mr. chairman. >> gentleman yields back. Uh, I now recognize Mr. bresnahan from the great state of pennsylvania for five minutes. >> thank you, Mr. chairman. And to. >> the ranking member and thank you all for taking time out of your day. Uh, to come spend some time with us up here in on capitol hill.
▶ 2:22:49Uh, to into all the witnesses for appearing before the committee today. Uh, the need to expand domestic manufacturing in this country is more important than ever. And we must be clear eyed about the challenges that come with it. Years of offshoring have weakened our economy and left us vulnerable on overly reliant to foreign entities.
▶ 2:23:07In just a few months of working to bring manufacturing back home, we've already made tremendous strides to rebuild our domestic base, especially in northeastern pennsylvania and epa businesses that make products on american soil strengthen our economy, maintain a strong local workforce, and protect our national interests from foreign dependance from sugar notches on american paper bag company providing shopping bags and the amazon shipping bags for families across the country to gentex producing military grade fighter pilot helmets for our
▶ 2:23:37Troops. And today I am joined with one of our constituents, lieutenant gavin o'donnell, who is an f-18 super hornet pilot who actually wears one of those helmets that are manufactured and created in our district. So thank you for for tagging along today as well. Uh, one company that exemplifies the power of domestic manufacturing is I to m in mountain top, pennsylvania.
▶ 2:23:58Under ceo chris hackett's leadership, I to m is producing american made flexible polymer films that promote sustainability, bolster domestic supply chains and support high quality, good paying, local jobs. Um, I also want to highlight another company, united envelopes in monroe county, and their high quality mailers. These businesses, along with countless others around the district, have a profound impact on northeastern pennsylvania's economy and communities. But as we continue to expand domestic manufacturing, we must acknowledge the challenges ahead.
▶ 2:24:27Domestic manufacturing is great, but it means nothing if there is no power to keep the building running or workers to fill it. And, Mr. crane, I know you had made some comments about generating power, transmitting power, and ultimately distributing power. And as a former electrical contractor before coming to congress, I'm going to be definitely interested in some of your insight. But keeping good capacity aligned with industrial growth will be one of the most difficult, most important aspects of increasing domestic production.
▶ 2:24:52Um, if energy prices skyrocket and families can't afford to heat their homes, the benefits of domestic manufacturing won't mean much. I guess my first question would be, and to piggyback on a former question, um, you know, talking about permitting reform, I sat on a building america caucus, and we just had a bipartisan meeting yesterday about some intuitive ways and something that we are seeing locally.
▶ 2:25:15And perhaps you have some insight as to way that, you know, when you're talking about transmission, distribution, construction, you have the federal government, you have state government and local government involved. And the majority of new transmission lines that are are being created are usually falling within the parameters of one utility. Um, so I'd be really curious to see and get your perspective on on opening up transmission distribution, increasing the permitting time, and ultimately getting shovels in the ground faster.
▶ 2:25:44>> you're absolutely right that the we need to reduce the timelines to get permits reviewed and approved in order to get any type of manufacturing online, but certainly energy production and transmission, as as you just indicated, what we are seeing at the federal level, as well as at the local and state level, is often a lack of coordination. We have overlapping statutes. We have different agencies that have jurisdiction over bits and pieces of a permit or of of a statutory scheme.
▶ 2:26:10And so it results in a lot of box checking and paperwork for manufacturers who just want to get shovels in the ground. And so if we can streamline those processes, if we can increase coordination, then you're less likely to have those roadblocks at the outset of a project and less likely to have delays in terms of getting people actually employed and getting them to work. >> I appreciate that, Mr. voss.
▶ 2:26:32Uh, based on your experience leading a company that manufactures domestically, um, if you had a magic wand for companies looking to relocate to northeastern pennsylvania, and I'm going to give a quick plug here that within one day, cdl drive in northeastern pennsylvania, you can reach 60% of the united states population as well. Within 200 miles, you can reach 50 million americans. But sometimes that barrier to enter is extremely troublesome. What if you had a magic wand?
▶ 2:27:00What is one thing we can do as members of congress to help alleviate some of those stresses? >> well, there's a there's a list, um, obviously, access to working capital is really important. Uh, there's a lot of great ideas out there, and many times the reason they fail is because they ran out of money before they got to the finish line. So, I mean, that would be one big thing. Obviously, the business has to have a value proposition that translates into value in the marketplace. That's also important.
▶ 2:27:27And then fight and like, uh, for an even playing field. And that's all we can ask for. You know, I'm there's some comments today, like the sky is falling because of this tariff strategy. And I'm here to say it's exactly the opposite. And in the business world, it's filled with, uh, unpredictability. We have to adjust and we can't be victimized by whatever policies or things we can't can control and what we can't control. We got to develop a plan and work our way around it.
▶ 2:27:56And, uh, so from a congressional standpoint, I think the biggest thing from an, from a big picture standpoint is to understand and help everybody. >> gentleman's time. >> is up small business and what it does and then support it in every way we can, whether it's with health insurance reform, whether it's with, uh, banking reform. Whether it's carving out specifics of the tariff policy that could be improved. >> thank you. I yield. >> gentleman yields back. Uh, now, recognize Mr.
▶ 2:28:26Jack from the great state of georgia for five minutes. >> thank you, Mr. chairman. >> and I want to echo many of the things my colleague, Mr. bresnahan said. I want to thank, uh, gavin for his service. And I hope you're enjoying this hearing today. Your congressman is deeply respected. I'm proud to serve alongside him and sit to his right in this committee. And I'd like to thank you, Mr. chairman, for convening this important hearing. It's been inspiring to hear some of the testimony today.
▶ 2:28:53Increasing domestic manufacturing is a priority for this committee, and we are very proud of our record of success thus far, this congress. And likewise, we're proud of our record of partnership with the trump administration. Uh, I should note for the record that under administrator leffler's leadership, the small business administration is implementing its made in america manufacturing initiative, pledging to cut $100 billion in red tape and expand access to capital. Uh, one of the first legislative victories this congress had directly impacted my own district.
▶ 2:29:22I've got a company in my district that manufactures tankless water heaters, and it was subject to the most onerous, burdensome regulations you could imagine from the biden administration. And thankfully, we were able to use the congressional review act and earn a bipartisan majority and not just the house, but also the senate sending it to the president's desk for signature, enabling over hundreds, I would say, 300 jobs in my district to be saved thanks to our legislative action. So, uh, we have a record of success we're proud of in this committee.
▶ 2:29:52And I'd like to begin my line of questioning with Mr. crane. Although I should note at the outset, I understand you are a graduate of mercer university. Am I correct in that assumption? >> you are? That's correct. >> are you a georgia native by chance? >> I'm not. My grandparents lived in georgia for a big chunk of their life. I'm from birmingham, alabama originally. >> wonderful. Well, you're from alabama, so, Mr. chairman, we'll have to check his allegiances. Mercer is the, uh, one of the top ranked teams in division one, double a football, and it's playing auburn this weekend. So we're looking forward to the outcome of that.
▶ 2:30:21>> my folks are auburn grads and I'm a mercer grad. >> well, well I won't put you on the record. Um, but in that vein, uh, you've discussed today the importance of innovation for manufacturers and, and how manufacturers account for 53% of private r&d spending. So despite only making up 10% of gdp, they account for 53% of private r&d spending. So how do how do provisions like immediate r&d expensing ensure that manufacturers are able to continue to lead in innovation? >> thank you for that question congressman.
▶ 2:30:51You're absolutely right that innovation is the lifeblood of manufacturing. Innovation uh, is so critical that immediate r&d expensing had been the law of the land for 40 years. Um, reducing the cost of r&d and empowering manufacturers to invest more in transformational technologies. Unfortunately, that policy expired in 2022.
▶ 2:31:10And so through the one big beautiful bill act, you all revived immediate r&d expensing and made it permanent, providing manufacturers the certainty they need to invest in long term r&d projects and the capital availability they need to make those projects cheaper, to have life changing, life saving products on manufacturing shop floors and manufacturing labs across the country, which is so critical to our industry's place here in america and on the world stage.
▶ 2:31:36>> and you mentioned in your written testimony how the various elements of your comprehensive manufacturing strategy work together to support economic growth. So hoping you could elaborate a little bit more about that comprehensive manufacturing strategy and where you see us going in the next few years? >> absolutely. Uh, tax reform laid the foundation, but more must be done to build on the success of tax reform and to truly unlock growth and investment by small manufacturers.
▶ 2:31:59That means rebalancing regulations at a time when the small manufacturing industry shoulders a significant burden from federal compliance. It means permitting reform, which we've talked about today, helping companies get shovels in the ground faster and with less uncertainty on the back end from ongoing, never ending litigation. It means bolstering american energy dominance.
▶ 2:32:18So we have the power that we need to drive manufacturing in the future, and it means the workforce that manufacturers need, ensuring that they have the skills and that they exist at all to fill the 400,000 open jobs that we need. All of those policies work together to drive a manufacturing renaissance, which is something that the industry supports you all in congress support and the president supports. >> well, I thank you for your testimony today. I worked with the national association of manufacturing in my previous job and the first term, I was in the trump administration.
▶ 2:32:47And, um, I think your mission is noble, and I think we're all here committed to ensuring that manufacturing in america continues to thrive. And if I could close with Mr. moser, we've got 30s. Um, we'd just love for you to share with this committee in our remaining time the impact of, uh, of tax reform that we saw earlier this year through the one big beautiful bill act and where you see our economy headed because of it. >> I've long been in favor in favor of long been in favor of immediate expensing.
▶ 2:33:15And that that is absolutely essential because of the importance of increasing productivity in the us to become more competitive and to deal with our relatively limited number of skilled workers, so that that piece of the bill, I support the whole thing. But that piece especially is important. >> thank you both. And Mr. chairman, thank you for convening this hearing I yield back. >> gentleman yields back. And I also want to thank all of our witnesses for their testimony and for appearing before us today. We appreciate it greatly.
▶ 2:33:46Uh, without objection, members have five legislative days to submit additional materials and written questions from the witnesses to the chair, which will be forwarded to the witnesses. I want to again ask the witnesses. Please respond promptly if that happens. I want to thank you again for being here. If there's no further business. Without objection, the committee is adjourned.