The United States manufacturing sector is on the way back but government policies need to help the comeback continue, according to a US industry group.
In the annual State of Manufacturing address in Houston, Texas on Tuesday, National Association of Manufacturers (NAM) President and CEO Jay Timmons said that a dynamic workforce, innovation and energy resources have all contributed to the improvements in US manufacturing.
However, he added that “overregulation, high taxes, rising health care costs and a lack of trade agreements” continue to have a negative effect on the industry.
“While there are many reasons to be optimistic about the future of American manufacturing, government overreach poses the single biggest threat,” Timmons said.
He singled out energy as an example and said that government imposes too much regulation in this area.
“It seems like all we hear from this Administration and its allies in Congress is that they want to put a stop to the use of oil, gas and coal, when the focus should be on developing and maintaining secure and affordable energy,” he said.
As the International Business Times reports, the US manufacturing sector has grown by 18 per cent since 2009. In 2013, manufacturing contributed US$1 trillion ($1.11 trillion) to the US economy and employed 11.3 million people.
According to forecasts by Manufacturing Alliance, the sector will grow by 300,000 jobs a year if manufacturing rises from 12 percent to 15 percent of the economy.