WASHINGTON -- President-elect Joe Biden's emphasis on rebuilding US manufacturing capacity is reason for hope that his administration will support domestic programs, the head of government relations at IPC wrote this week.
The focus dovetails with a revived bipartisan approach to securing the nation's manufacturing base, added Chris Mitchell, vice president, global government relations, IPC.
"More so than at any other time in the last half-century, US policymakers in both parties understand the need to better support US manufacturing and address supply chain concerns," Mitchell wrote in an association newsletter.
In the newsletter, Mitchell outlined how the Biden administration could affect the electronics manufacturing industry in the coming four years, starting with the proposed $400 billion investment in the infrastructure and industrial base. Biden's policy calls for a multipronged effort to buy and make products in America, with particular focus on smaller and women- or minority-owned businesses.
IPC is looking for the new administration to support new credit facilities and other funding incentives toward retooling plants for Industry 4.0. The trade group will look to establish metrics for capacity, capabilities, security and geographic diversity, and promote “trusted supplier” programs in domestic and international supply chains for critical sectors, Mitchell said.
Other areas of import are taxes and trade. Mitchell expects a return to more progressive tax policy, including an eventual attempt to rework some of the 2017 tax cuts. He predicts the Biden administration will to take a "more measured approach" toward with China, including a reduction in tariffs, while working to reestablish ties to the World Trade Organization.
These are "all positives for IPC members," he said.
"We are hopeful that the US will rebuild trade relationships with its allies, including a possible revival of multilateral trade pacts with Europe and Asia. We’ll also renew our call for a US-Mexico-Canada to spur greater economic collaboration across North America."
Another area where change is expected is regulation. "A Biden administration will be a sharp turn from the deregulation we have seen over the last four years. We anticipate Biden to start by reversing nearly 100 regulatory rollbacks from the Trump administration and initiating new actions like limits on 'forever chemicals,' also known as PFAS, some of which are used in electronics manufacturing," Mitchell said.
Such efforts will be accompanied by robust climate change initiatives, but Mitchell expects the administration will work with industry to ease in new restrictions so as not to stifle economic growth.
Finally, Mitchell forecast the incoming administration will emphasize education, especially for historically underrepresented groups, and credentialing and job training programs.