Why have tariffs, tax credits, comparatively low energy costs and increasing use of automation not had more of an impact on increasing American manufacturing?
The answer is found in what’s called the manufacturing gap, where the US publicly and privately financially supports basic research to create new technology but fails to financially support commercialization. Development stage companies in the US often struggle to borrow or raise the money needed to finance a new factory, particularly when those loans or investments can take many years to pay off.
The good news is that there is bipartisan support to solve this problem. Republican Senator Marco Rubio and moderate Democratic senators, led by Senator Chris Coons of Delaware, have proposed creating an Industrial Finance Corporation (IFC) that would fill the manufacturing gap and finance high-tech production nationwide.
The IFC would make long-term loans, own equity, and guarantee purchases for emerging companies, so they could commercialize their technology and products. Creating the IFC will support growth of a trillion dollar US ecosystem for industries of the future.
It must be done!