Lawmakers debate over America's ability to rebuild manufacturing without higher costs

WASHINGTON: The Senate’s conversation about American manufacturing quickly became a broader argument about China, tariffs, technology and the meaning of economic independence, as lawmakers and business leaders debated whether the United States can restore factory production without making life more expensive.

At a Senate Small Business and Entrepreneurship Committee hearing marking America’s 250th anniversary, Republicans and Democrats sharply disagreed over how to revive domestic manufacturing, protect small businesses and reduce dependence on foreign supply chains.

The hearing, titled “America 250: Industrialisation and the Rise of Small Manufacturers,” featured testimony from manufacturing executives, historians and economic experts who repeatedly stressed the importance of innovation, workforce training and federal support for smaller firms.

Senator Jon Husted of Ohio, who chaired the hearing, described manufacturing as the backbone of the American economy and said the sector continues to drive innovation and wage growth.

“Manufacturing matters,” Husted said. “Manufacturing drives new capital investment and innovation, which raises take-home pay for all Americans.”

Husted said manufacturing accounts for only 12 per cent of the US economy but finances 55 per cent of American research and development spending. He also noted that 98 per cent of manufacturing firms in the country are small businesses employing fewer than 500 workers.