Manufacture This

The blog of the Alliance for American Manufacturing

Donald Trump picks on offshoring companies, but there's a real benefit to manufacturing in America.

There’s a lot of consternation about President-elect Trump’s recent use of Twitter. Here he is weighing in on the machinations of the House GOP! Here he is, giving GM grief about considering moving a production line to Mexico. Here he just a few hours ago, giving Toyota the business about opening a plant in Baja California.

Toyota’s stock price subsequently dipped.

Anyway, Trump’s ad hoc way of addressing specific manufacturers rubs many the wrong way. Derek Scissors of the American Enterprise Institute told NPR:

"When you're president, you shouldn't be bothering one company. You should be changing policies such as corporate taxes, to change the whole landscape. Getting down into the details can't be done by Twitter."

That’s an excellent point, and we agree. When Trump moves from president-elect from straight-up president, we expect to see detailed policy proposals laid out. It’s a new administration, after all! That’s a very normal expectation to have.

As for the specific Twitter jabs Trump has made toward companies that are planning production in Mexico – and the response to them, which has questioned their wisdom – check out this very thoughtful letter to the editor over at USA Today, from a former auto executive:

"Ask yourself why the Asian and German car companies build plants in the U.S. Despite higher labor costs, they look at other areas to reduce production cost, like: freight, inventory, quality, among others. They do this because they want to increase U.S. sales. Domestic manufacturers should do the same."