In the wake of the RNC taking place here in Milwaukee, Komatsu and the Association of Equipment Manufactures held a press conference at the Komatsu South Harbor Milwaukee campus on July 15.

Komatsu North America CEO Rod Schrader, AEM Vice President Kate Fox, and AEM Senior Vice President Kip Eideberg were joined by three elected officials to discuss policy making in the world of equipment manufacturing.

The panelists included Bryan Steil, US Representative for the 1st Congressional District of Wisconsin, Bill Haggerty, U.S. Senator from Tennessee and Glenn Youngkin, governor of Virginia.

Starting things off, Schrader said, “We will need our elected officials to advance pro-manufacturing policies that strengthen American manufacturing, competitiveness and national security. That's why we are here today, to hear from this very distinguished group of lawmakers about what should be done to unleash the full power of American equipment manufacturing.”

Youngkin emphasized Virginia’s role in the manufacturing world, citing CNBC’s #1 ranking of Virginia in education, and recent $5 billion dollars in tax relief. He said there’s been $74 billion in capital invested in Virginia.

Haggerty focused on foreign investments and regulatory practices by the federal government. Haggerty said Tennessee’s GDP and wage growth was below the national average and unemployment was higher than the average. Opening up direct foreign investment into Tennessee industries like manufacturing has allowed the state to soar in terms of economic growth.

However, he also noted the threat regulatory practices can put on the manufacturing industry saying,

“The regulatory burden, the regulatory costs that we've seen just in the past three and a half years. The regulations that agencies have added, the present value of $1.6 trillion. 13.5% of the GDP of the manufacturing component of America is taken up by regulatory compliance. That is a tax that is unseen by the average American. It's significant, it's real, we have to address it.”

Steil was asked what the future holds for the equipment manufacturing industry in Wisconsin. Manufacturing contributes over $70 million to the state's economy yearly, about 20% of its economic output.

“Because the policies both at the federal and the state level have real-world consequences, in particular in the manufacturing space, We could look at the Trump-Ryan tax cuts that had a huge impact that will be on the table as we look out through the next year in post-election. In particular, if we think about two pieces of that, the R&D tax credit and accelerated depreciation.”

He also emphasized education’s role in the industry. He said there’s “not really a federal answer because each state, as we would all know, is very different on what those workforce needs are.”

When asked by Fox on how to decrease the negative impact taxes and regulations on the industry, Steil had this to say:

“After Chevron deference has now been overruled, we as legislators, in particular, in the Senate and the House, have a huge opportunity to rightsize this. We've seen, for example, the EPA really run roughshod over congressional intent. The Supreme Court is finally shifting that back to elected officials to have a say in that matter. Grabbing that lifeline that the Supreme Court has given elected officials in the House and in the Senate, is going to be absolutely essential as we go forward. Because the burden that is placed on businesses from a regulatory standpoint is stifling. In particular, a period of time when inflation is hot, when costs are going up and it's harder for families to afford the things that they need. We need to be focused in on Washington on policies that bring costs and inflation down. The number one focus of that should be rightsizing a lot of the regulatory state.”

Overall, the speakers highlighted the importance of unity in the nation’s politics, particularly after the attempted assassination of Donald Trump just days prior.

Watch the full version of this episode of On The Record