Hamer, Timmons: Energizing the Future of Manufacturing, Starting in Texas

President Trump is using tariffs as a central tool in trade policy, moving swiftly on a campaign promise. While tariffs get the headlines, manufacturers need certainty to strengthen America’s competitive edge, create jobs and achieve energy dominance. That means reining in excessive regulations, accelerating permitting reform, ensuring a competitive tax code and making America the best place to invest and build.

Recently, the National Association of Manufacturers and more than 100 manufacturing organizations sent President Trump a roadmap to roll back harmful regulations and unleash growth. Manufacturers already face a $350 billion annual regulatory burden. Small manufacturers spend over $50,000 per employee per year on compliance. This money is better spent on raising wages, hiring, growth and innovation. And with tariffs adding price pressures, the need for regulatory and tax reform is urgent.

Nowhere is this clearer than in Texas—the backbone of American energy and a manufacturing powerhouse.

Texas is a global leader in liquefied natural gas exports, which support hundreds of thousands of jobs and billions in economic growth. That’s why President Trump’s decision to lift the LNG export pause was critical for securing U.S. energy leadership.

A recent NAM study found that U.S. LNG exports have the potential to support over 900,000 jobs and add $216 billion to GDP by 2044. Expanding LNG infrastructure will strengthen energy independence, reduce global emissions and cement America’s energy dominance.

Glenn Hamer, president & CEO of the Texas Association of Business.

But lifting the pause alone isn’t enough. LNG projects—and other energy infrastructure investments—remain stuck in a slow permitting system.

The federal permitting system is broken. Whether it’s an LNG terminal, a new pipeline or a next-generation energy facility, it takes 80% longer to approve projects in the U.S. than in other advanced economies. Some projects drag on for a decade—so long that the technology is outdated before construction begins.

The NAM’s roadmap urges the administration to prioritize permitting reform, including reconsidering rules that add new layers of environmental reviews and delay energy and infrastructure projects, and implementing permitting reforms in the Fiscal Responsibility Act. Manufacturers need a government that moves at the speed of business. 

Even if permitting and regulatory hurdles are cleared, manufacturers also need tax certainty. The 2017 tax reforms fueled manufacturing job creation, yet key provisions have expired, while others are set to lapse. If Congress fails to renew tax policies, it could cost America six million jobs, including 1.1 million in manufacturing, according to a recent NAM and EY study. Texas alone could lose 547,000 jobs and $51 billion in wages.

Manufacturers need a tax code that supports investment, preserving the 21% corporate rate, 20% pass-through deduction, full expensing for equipment and strong R&D incentives. Without tax certainty, manufacturers will delay expansions, cut jobs and lose innovation opportunities.

Energy incentives also help Texas manufacturers stay competitive, driving private-sector investment, job creation and energy advancements. These incentives ensure manufacturers develop next-generation technologies in America, sustain the industry’s strength and ensure national energy security.

Still, manufacturers need a strong workforce.

Texas has more than 850,000 manufacturing workers, but demand for skilled labor is outpacing supply. A Manufacturing Institute and Deloitte study projects a shortfall of 1.9 million U.S. manufacturing jobs by 2033. If we want to sustain growth, we must expand workforce training, strengthen apprenticeships, bolster legal immigration and create new pathways into high-wage careers.

Texas has always been a leader in energy, manufacturing and innovation. But to maintain that leadership, manufacturers need certainty. And President Trump’s commitment to preserving tax reform, cutting red tape and accelerating permitting reform aligns with the industry’s needs. 

By getting these policies right, Texas can fuel America’s energy dominance, empower manufacturers and create the next generation of high-paying jobs.

Editor’s Note: The above guest column was penned jointly by Jay Timmons, president and CEO of the National Association of Manufacturers, and Glenn Hamer, president and CEO of the Texas Association of Business. The column appears in the Rio Grande Guardian International News Service with the permission of the author. Both can be reached by email via mtaylor@rosscomm.com.

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