The Great Lakes State Comeback
For the past few decades, America has witnessed a hollowing out of its manufacturing sector, and the Midwesterners it served were the first victims of its decline. While Rust Belt families were the first to feel the effects, it rippled across the country to impact economies from coast to coast.
However, now, things are different. This can be seen with President Trump’s recent visit to auto factories in Michigan. It represents a larger trend of America’s manufacturing capabilities returning home, and the Midwest is at the forefront.
In Michigan, automobile manufacturers are taking steps that would have been unthinkable a few years back. General Motors is pouring $6 billion into U.S. manufacturing, including an expansion of its Orion Township factory and the continued production onshoring. Additionally, the company has added extra shifts at its Flint plant to increase production of American-made pickup trucks.
Ford has committed $3 billion for its BlueOval Battery Park in Marshall, adding 1,700 jobs, as well as an additional third shift for its Dearborn Truck Plant as its popular F-150 model continues to lead in pickup truck sales.
Stellantis has made investments worth more than $600 million in southeastern Michigan, adding a megahub plant in Van Buren Township and boosting production capacity in Detroit and Warren.
The past year saw the best sales of new vehicles since 2019. Ford shared its best-ever sales year in six years. General Motors achieved remarkable sales growth throughout its model range and recorded its best-ever sales of SUVs in decades. American manufacturing once again proves that investment in America leads to success for American workers.
Sound public policy has helped make that possible.
Trump's imposition of a 25 percent tariff on vehicles and light trucks that are produced elsewhere than the US was a signal that America is no longer going to be pleased with the offshoring of its manufacturing industry. The expansion of this tariff to cover medium and heavy-duty trucks further underlined the significance of the need for maintaining production domestically in the automotive industry. Simultaneously, however, recognizing the realities of contemporary supply chains, the government decided to lessen the effect of the parts tariffs on cars manufactured in the country.
Equally critical has been the effort to eliminate needless regulations that have tended to drive away investments. Over the years, there has been a steady increase in bureaucratic procedures, unnecessary regulations, and other costly requirements, making it more attractive for companies to set up factories in foreign countries than in America. Getting rid of red tape does not necessarily mean reducing the standards. What it means is that American companies would be free to focus on hiring workers and producing goods rather than dealing with excessive bureaucracy.
Manufacturing is much more than numbers. Manufacturing is the very basis of any country's resilience. A country able to produce its own cars, machinery, steel, technology, and components will be more prepared for any shocks from abroad.
This philosophy has been central to the efforts of the Lafayette Partnership. Policies that support competition, limited regulations, access to energy, and an “America First” approach to trade inspire entrepreneurs and provide our workers with the chance to succeed.
The President’s trip to Michigan renewed hope in the ability of America’s industrial heartland to outbuild everyone else in the world through their talent and determination.
The Midwest made the country into an economic powerhouse. The policies that incentivize investment, minimize regulations, and put the welfare of American workers first are once again leading the country to excellence.