Good news continues to roll in for federal support of American manufacturing and industry. On July 28, 2023, President Biden issued the Executive Order on Federal Research and Development in Support of Domestic Manufacturing and United States Jobs.
To further accelerate the growth of American manufacturing, this Executive Order encourages investment into the fields of innovation, research & development, and the education and systems thereof. The goal is to improve how innovations created in the US go from conception to production.
The Breakdown
At its core, this new Executive Order aims to ensure the industrial well-being and national security of the United States. Research and development remain a vital component of American manufacturing. When inventions occur, or findings are identified in the US, there needs to be a compatible infrastructure in place to accelerate those innovations to usage.
The new Executive Order aims to do just that by delegating that any technological advancements formed on US soil will also be manufactured here, to the greatest extent possible. President Biden called on department leadership, like the Secretary of Agriculture and the Secretary of Energy, to implement these boundaries and to continue active efforts of supporting domestic manufacturing in their fields.
It’s not just the big players included here, as the Administrator of the Small Business Administration was encouraged to improve routes to funding and promote US technology creation from budding businesses.
The heads of major agencies, as several mentioned above, were called to adhere to a varied timeline of implementation to include tasks such as considering “exceptional circumstances” to US-based manufacturing, submitting reports to the Made in America Director, developing waiver applications, and establishing agency guidelines.
The Importance of Supporting American Manufacturing
A car is only as good as the engine under its hood. That’s what American manufacturing is to the nation. It ignites innovation and technology while expanding jobs, fueling the economy, and triggering growth. Without US manufacturing, there is no economy.
This is the main reason behind so much federal focus and support. The government recognizes that when things get built in America, it provides the foundation for the nation to succeed. That’s why the Biden Administration allocated $372 million of the 2023 budget to boost American manufacturing. Though that tab might seem like a lot, it’s a meager investment in an industry with a $2.35 trillion return to the US economy.
The United States is a powerhouse of innovation. We lead the way in spending in the field of research and development worldwide ($706 billion spent in 2019). However, this standing isn’t to be taken lightly. In fact, the US falls second to China for holding the most patents by country. America is spending the money, but in the field of innovation, there needs to be more to show for it. Hence, the new Executive Order issued last month.
Investing In Tomorrow
The importance of American manufacturing is not to be underestimated. And in a highly technological world, it’s the new discoveries and advancements that shape the way for tomorrow. Investing in the progress of emerging technologies with the manufacturing, systems, and jobs to support it is setting the foundation for future economic and technological well-being.
