Revitalizing manufacturing: A blueprint for rebuilding the middle class | Guest opinion

Growing up in Ohio and Pittsburgh, I witnessed the collapse of once-strong middle-class communities into what is now known as the Rust Belt. The steel mills and factories that had been the lifeblood of our towns shuttered one by one.

This decline, precipitated by the pursuit of unilateral free trade, crippled the manufacturing industry, traditionally the backbone of America’s middle class. As we pivoted away from our manufacturing roots, we began to see the consequences: a shrinking middle class and a weakened national security.

According to the 2015 census , the middle class no longer constitutes the majority of Americans — a historic and troubling shift. It’s not hard to draw a line from the decimation of manufacturing to this decline. Manufacturing has historically been a traditional path to the middle class, offering well-paying jobs that don’t necessarily require a college degree. This loss is more than just economic; it’s a social and cultural unraveling.

I am not here to lament the past but to advocate for a brighter future.

In my book “Manufacture Local,” I lay out a comprehensive plan for revitalizing American manufacturing by extensively detailing the positive policy steps political leaders should champion to reinvigorate America’s industry.

Power of manufacturing

The Department of Defense has stated that “ Every dollar spent in manufacturing results in an additional $2.79 added to the economy, making it the highest multiplier effect of any sector .” Manufacturing is the main engine of innovation in the United States, responsible for 55% of all patents and 70% of all research and development spending. Each manufacturing job spurs seven to 12 new jobs in related industries.

Manufacturing creates jobs. Whether directly or indirectly, most jobs depend on it. A nation must always remember that services are dependent on manufactured goods and global trade is based on goods, not services. About 80% of world trade consists of merchandise trade, and only 20% is in services .

Look at the service sectors of our economy. There’s retail and wholesale, real estate, and even health care. All these industries are dependent on the movement and sale of manufactured goods. Even finance involves actions are reliant on manufacturing. Cut off manufacturing and, eventually, you will cut off every other sector that depends on it. Software cannot be provided without physical hardware. A realtor can’t sell a house until it’s built. A nurse can’t treat someone without medicine. A barista can’t make your latte without an espresso machine.

Those who say that America is now a service economy and that it is “postindustrial” do not understand postindustrial really means preindustrial — a nation that cannot produce its own goods, and that nation is weak and reliant on other nations.

National security

Beyond economic arguments, there’s a compelling national security rationale for revitalizing American manufacturing. America cannot have real national security unless it can produce the goods it needs during wartime. In times of war, supply chains are the first target. Local industrial capacity is the best defense against future wars.

A recent report by retired Brig. Gen. John Adams studying national security interests found that U.S. national security and the health of the nation’s defense industrial base are in jeopardy because of an over-reliance on foreign suppliers for critical defense materials. “America’s vulnerability today is frightening,” Adams wrote.

Solutions for rebuilding

The most powerful solutions to rebuild America’s industrial base are tariffs. Tariff is NOT a four-letter word.

Tariffs are the best tool to drive high-volume manufacturing back to American manufacturers so they can justify investment in automation and robotics.

Americans must ignore the cries of “protectionism” and “isolationism” and the lies that tariffs are a tax on Americans. Americans can buy American-made goods to avoid the tariffed foreign-made items, and this will create a circular economy with the expansion of manufacturing employment and the increased spending power its higher-wage jobs provide. Almost two-thirds of America’s GDP is consumer spending , but our current industrial policy does not service the buying power of our own people and reap the benefits.

Trade law enforcement is a priority to protect America when considering that the FBI has dubbed China’s theft of U.S. information one of the largest wealth transfers in the history of civilization.

U.S. public pensions have invested more than $68 billion in private Chinese entities over the past three years . Wall Street must be guided and incentivized to invest in American industry.

About 75% of the manufacturing industry is small businesses of 20 employees or fewer , and they need larger-quantity part orders to justify any investment in new equipment or employees. Large-quantity jobs will decrease the cost of American-made goods via economy of scale and accelerate the industries’ adoption of automation and robotics with the result of lower-priced “Made in America” products.

A vision for the future

During the time it takes for manufacturing to re-shore and tariffs to bring large-lot jobs back home, American-made goods will remain more expensive than goods produced overseas, especially in India and China, where sweatshop labor thrives, and environmentally harmful materials are readily available. A recent survey found that 70% of Americans prefer to buy American-made goods and that about 83% would pay up to 20% more for products made domestically .

Let’s reward Americans for buying American-made goods, which supports our industrial base, and direct tariff funds or canceled foreign aid to give a tax credit on “Made in USA” items.

With an average global tariff of 15%, the U.S. Treasury could replace the $461 billion the bottom 90% of income taxpayers pay.

In addition, investing in local mining and refining operations ensures that manufacturers have the raw materials they need, reducing dependency on foreign supplies. Embracing diverse energy sources will also lower manufacturing costs and bolster our economic resilience.

Revitalizing American manufacturing is not just about economic growth; it’s about ensuring national security and restoring the middle class.

As Alexander Hamilton wisely noted, “there is no nation stronger than the nation that is self-sufficient.” By adopting a grand manufacturing vision that puts America first, we can rebuild our industrial base, fortify our economy and safeguard our nation’s future.

As we look to the future, there’s hope. By embracing policies that support local manufacturing, we can rebuild not just an industry, but a way of life that provides economic stability and national security. The path forward is challenging but necessary. Together, we can turn the Rust Belt back into the backbone of America.

John Gardner, an entrepreneur who grew up in Ohio, is the author of Manufacture Local.

This article originally appeared on Akron Beacon Journal: Revitalizing manufacturing: A blueprint for rebuilding the middle class | Guest opinion