‘We Cannot Accept That Status Quo’: Joni Ernst Touts Need For ‘Great’ Comeback Of U.S. Manufacturing

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During Wednesday’s Senate Small Business & Entrepreneurship Committee hearing, Sen. Joni Ernst (R-IA) spoke about the U.S. manufacturing industry.

Transcript

00:00...manufactures, and ensure our industrial future is built right here at home.

00:06America is and has always been a nation of builders, men and women who roll up their

00:11sleeves, put in a hard day's work, and take pride not just in what they make, but what

00:17it means for their families, their communities, and their country.

00:21That entrepreneurial spirit is in our DNA.

00:25For far too long, Washington looked the other way as factories and farms shut down and the

00:29jobs that once sustained many U.S. families were shipped overseas.

00:35Despite the importance of domestic industrial production to our national security, production

00:40of critical goods was offshore to foreign countries.

00:44In doing so, we've made ourselves dependent on an international supply chain offering

00:49fast, mass-produced goods, mostly coming from China.

00:53This came at a cost, not just economic, but strategic.

00:57In January of this year, the U.S. recorded a $29.7 billion trade deficit with China.

01:04We've been massively reliant on our chief adversary for the goods and services we consume.

01:10Today, the manufacturing sector comprises only 10.1 percent of America's gross domestic product,

01:16a figure trailing most other industrialized nations.

01:21We've left ourselves economically beholden to the rest of the world and hollowed out our industrial core

01:27that once employed millions of Americans.

01:31We cannot accept that status quo.

01:34I believe in a great American comeback, one driven by the world's most talented workforce

01:40and a new era of domestic manufacturing ensuring this nation's economic security.

01:46We can make Made in America the norm instead of the exception.

01:51Thanks to President Trump's leadership, we are already seeing the early signs of a manufacturing revival,

01:57an industrial boom in Iowa and all across the country.

02:02No group is more eager to lead this charge than small manufacturers,

02:06who make up 98 percent of all manufacturing firms in the United States.

02:12They are ready to build, ready to grow, and they want to do it here in the United States.

02:17But Washington needs to do its part.

02:21It's time Congress acts to ensure that the federal government does not stand in the way of small

02:26manufacturers. We must empower them by providing them the tools they need to generate new jobs,

02:32to rebuild and fortify American supply chain stability, and to reduce our reliance on other

02:39countries, including adversaries. However, breaking ground on new manufacturing facilities,

02:45or upgrading existing ones, is a major investment. In many cases, these projects require long-term

02:52financing options, which can be particularly difficult for small businesses to access.

02:59That is why I was proud to introduce the Made in America Manufacturing Finance Act,

03:04along with another member of this committee, Senator Coons. This bipartisan legislation would double

03:10the SBA-backed loan limit from $5 million to $10 million for small manufacturers.

03:17By allowing manufacturers to access greater capital, my legislation encourages small manufacturers

03:24to invest in their operations and support the training and expansion of our manufacturing workforce.

03:30This is about leveling the playing field for American manufacturers on the world stage.

03:36It is a straightforward, common sense, and bipartisan solution to unlock the potential small manufacturers

03:42have to secure our national and economic security. I am also interested in how we can leverage another SBA

03:50program, the Small Business Investment Company, SBIC, to support small manufacturers. This program

03:57supports the flow of private capital to small businesses across the country. I'm grateful that we're joined today

04:04by Mr. Michelson from Iowa and Mr. Geis from Missouri, who invest in small businesses across the heartland

04:11through the SBIC program. I look forward to hearing from all our witnesses about how we can best align SBA

04:18programs and private investment to spark America's next industrial boom. The independence, prosperity,

04:26and security of our next generation depends on it. Thanks to our witnesses for being here today,

04:31and I look forward to your testimony.

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