August 2019
MiMfg Magazine
25
USMCA Will Boost Michigan Economy and Jobs
By Chuck Hadden, MMA President & CEO
For Michigan manufacturers,
access to rules-based, tariff-free
global trade is imperative to the
economic prosperity and the
livelihoods of more than 634,600
workers across the state. As
manufacturing is one of our top
industry employers, ensuring the
ability for manufacturers to sell
more of what they make to more
consumers around the world
is paramount.
It’s no secret that exports to
North America are important,
yet it may not be known just how
much. According to the National
Association of Manufacturers, last
year Canada and Mexico purchased
$34 billion in manufactured goods
from our state, while the rest of
the world purchased $21 billion.
Put simply, our bordering nations
buy more manufactured products
from our state than the rest of the
world combined.
Moreover, while Canada and
Mexico represent less than 4 percent
of the global economy, they are
major purchasers of Michigan goods,
supporting more than 117,000
manufacturing jobs — jobs that
pay on average approximately
$78,000 compared to the average
salary of nearly $47,000 for
workers across all private non-
farm industries.
Over the past three years,
480,000 manufacturing jobs were
created across America, including
26,000 in Michigan. And while we are experiencing a time of
economic growth and opportunity,
it’s important not to lose sight of
what is at stake.
Serving the interests of
manufacturers through the MMA
for over 25 years, I have seen the
positive impact of free trade on
our state’s economy, and so I fear
what could happen without it.
Without a modern trade deal with
tariff-free trade across North
America, the manufacturing
industry would be thrown into
chaos. Michigan’s manufactured
exports to Canada and Mexico
could face a minimum of $1.1
billion to $5.2 billion in extra
taxes — enough to devastate
any business.
I remain hopeful that our
lawmakers will see the economic
opportunities and the stricter
provisions included in the United
States-Mexico-Canada Agreement
(USMCA) that previous trade
agreements have lacked. The
USMCA will strengthen and
modernize rules to spur economic
prosperity, increase access to
Canada and Mexico, and finally
create an even playing field for
U.S. manufacturers. It will also
impose stricter labor and intellectual
property safeguards, from trademarks
and copyright standards to trade
secrets and patent protections,
all of which are essential to U.S.
and Michigan’s innovative
manufacturing industries.
organization as part of our
long-term strategic growth and
financial initiatives, creating a
captive channel cab manufacturer
provides Spartan greater flexibility
and an optimized cost structure to
fuel additional, profitable
growth,” said Adams.
Residing on five acres in
Madison Heights, this new facility
will improve quality while reducing lead times by utilizing world-class
flexible manufacturing technologies.
As Spartan Motors continues to
grow and expand by reinforcing its
commitment to U.S. manufacturing,
DTM also provides a pipeline to
highly skilled talent with unique
competencies in the areas of
fabrication, welding, quality
assurance, and manufacturing
optimization.
6
[In June], Mexico ratified
their end of the agreement, and
fortunately for us, the economic
and employment forecast for the
USMCA remains bright. If
ratified, data from the U.S.
International Trade Commission
shows that the USMCA would
create 176,000 jobs and have a
positive impact on U.S. trade,
both with USMCA partners and
with the rest of the world.
Notably, U.S. exports to Canada
and Mexico would increase by
$19.1 billion and $14.2 billion,
respectively, and manufacturing
would experience the most
substantial gains in output,
exports wages and employment.
Considering that 95 percent
of the world lives outside the
U.S., it’s essential that Congress
ratifies the rule-based, tariff-free
trade agreement on the table.
Free trade is the gateway for
American workers, manufacturers,
and Michiganders to economic
opportunity, ingenuity, and the
American dream.
This originally appeared as an opinion editorial
in The Detroit News on July 10-11 of 2019
Daryl Adams, president and
CEO for Spartan Motors