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American Made Advocacy: New Congress, New Opportunities
Last month, I spent two days in Washington, D.C., discussing the need for policies that level the playing field for our technology providers and the tens of thousands of workers they employ. As you might expect, the 2024 elections have reordered Washington, but doors remain open for the manufacturing community, and I am optimistic that actions to reshore and rebuild are possible.
After talking with veteran lawmakers as well as those new to politics, I have a few thoughts that will inform PCBAA’s approach in the 119th Congress.
Industrial Policy Remains a Priority
Democrats and Republicans don’t agree on everything, but both sides see that long and vulnerable supply chains present challenges to our national security and economic competitiveness. The COVID-19 pandemic is happily a distant memory, but we cannot forget what we learned from that experience. We saw why supplier risk must be mitigated by reducing reliance on far-flung and vulnerable logistics operations. While few expect a continuation of all the Biden administration’s efforts, I didn’t meet with anyone in Washington willing to abandon our made-in-America mission.
Why Isn’t the U.S. Investing in PCBs?
Across the globe, governments have reduced their dependency on China to achieve supply chain resilience that better balances risk and business needs. On every continent, we’re seeing incentives and initiatives to build new PCB factories. The U.S. is now competing with more countries than ever to capture a larger slice of the nearly $81 billion global PCB market. We must remind lawmakers that Thailand, Malaysia, and other nations are scrambling to exploit new opportunities and are investing billions at a time when the U.S. government is not.
Tax Reform Can Help Transform American Manufacturing
Elections have consequences and new priorities. It will likely be more difficult to implement sweeping legislation like the CHIPS and Science Act. With this in mind, we are focused on incentives, like the 25% tax credit included in HR 3249, the Protecting Circuit Boards & Substrates Act. Congress is considering a large tax bill that would move early in the next Congress, and we are lobbying hard for them to include a 25% tax credit for the purchase of American-made PCBs.
Educate New Government Leaders About the Microelectronics Ecosystem
Americans are understandably focused on the change at the White House, as well as a new Republican majority in Congress, but some of the most consequential policymakers for American manufacturing lie elsewhere. At the Departments of Commerce, Defense, and Energy, and the Federal Trade Commission, new political appointees will fill critical roles focused on the defense industrial base, AI supply chains, trade policy and tariffs, and many more areas of concern. PCBAA, IPC, and our member companies have educated the previous set of political appointees and career federal executives, and we benefited from funding from the Defense Production Act. We begin again with President Trump’s appointees and will work across federal agencies to get the support we need to grow.
Our industry should be a beneficiary of the expected focus on made-in-America. This is why PCBAA and IPC are working together to educate new faces in Washington about the critical role that PCB manufacturers, assemblers, and materials providers play in the entire microelectronics ecosystem. With the exception of support for PCBs and substrates through the Defense Production Act, the industry was largely ignored by other government agencies in the previous administration.
We start the new year with bipartisan support in Congress, strong partnerships with like-minded organizations, and the power of our growing membership base. When the winds of change blow through Washington, the PCB industry needs to present a united front.
This column originally appeared in the January 2025 issue of PCB007 Magazine.
More Columns from American Made Advocacy
American Made Advocacy: Success in Washington Requires Patience, Persistence, and Sustained FocusAmerican Made Advocacy: The Administration Changed, but Our Industry’s Needs Remain
American Made Advocacy: There's No Substitute for American-made Microelectronics
American Made Advocacy: Let’s Finish the Fight to Build and Buy American
American Made Advocacy: The U.S. Economy Needs Trusted PCBs
American Made Advocacy: Domestic Manufacturing Takes Center Stage on Capitol Hill
American Made Advocacy: Changing Leadership and Three Years of Advocacy in D.C.
American Made Advocacy: Batting .333: Great in Baseball, Not in Microelectronics