How “One Big Beautiful Bill” Could Benefit Manufacturers and the North American Industrial Ecosystem
Donald Trump recently released a list of ten economic principles that are included in his bill for sweeping economic reform, which he describes as the “One Big Beautiful Bill.”
For Prince, which has successfully created a hybrid model combining manufacturing and assembly operations at Mexican maquiladora facilities with a robust U.S.-headquartered network of manufacturing, engineering, logistics, and customer service, the policies Trump has proposed will create a competitive advantage.
In this blog post, we examine the details of the “One Big Beautiful Bill” as we understand it, and discuss how we can expect it to help Prince directly, its customers, the industries it serves, and how it will attract foreign companies to both the Mexican and US manufacturing sectors.
Tax Cuts: Making Capital Easier to Come By
The first of the “Ten Big Policies” included in his bill is a simplification of the corporate tax code and a reduction in the corporate tax rate. Tax cuts are a benefit for Prince Manufacturing because they mean the company will have an improved tax position on its income earned in the United States.
Corporate tax relief could lead to a higher effective tax rate for Prince, freeing up capital for increased investment in automation technology, training, facility expansions, etc. in both the U.S. and Mexican facilities.
Prince also serves a number of industrial customers and segments with products like automotive components, heavy equipment, HVAC systems, electrical infrastructure, and more. Corporate tax cuts would also help Prince’s customers expand their orders, invest in new products, or reshore additional components and parts.
This latter point is particularly important because, with the right incentives, Prince Manufacturing is fully prepared to take advantage of new reshoring demand as it arises.
Enhanced Tax Credits for U.S.-Based Manufacturing (And Mexico as Part of a Cross-Border Supply Chain?)
Trump’s second point is an extension of the first, which would provide additional tax credits to companies that establish, reopen, or expand manufacturing operations in the U.S.
The measure could apply to U.S. companies that operate maquiladora facilities in Mexico, provided the cross-border activity is seen as an integrated part of a supply chain that benefits the U.S. economy.
Prince Manufacturing is precisely the kind of hybrid maquiladora operation that could benefit the most. Prince’s model of U.S.-based engineering, logistics, and customer service combined with the operational and cost-efficiency of maquiladora-based manufacturing would be a natural fit for Trump’s reshoring incentives should the bill offer preferential treatment for nearshoring and “Made in America” (perhaps in the form of “Made in America” labeling support, procurement advantages, tax deferrals, etc.). We can expect Prince Manufacturing to be a beneficiary.
For foreign firms, Prince Manufacturing and other companies like it offer an appealing entry point into the North American market. A European supplier of automotive components, for example, looking to reach the U.S., may see value in working with Prince rather than starting from scratch.
Rolling Back Unnecessary Regulations
Trump has long been critical of the EPA, OSHA, and other regulatory bodies that he feels weigh down American businesses with unnecessary bureaucracy and costs. Rolling back these regulations is one of the primary objectives of the bill, and is one of the policy areas in which the present administration will have the most flexibility with regard to the legislative process.
Rollbacks will have a more direct impact on Prince Manufacturing’s operations in the United States. A less onerous regulatory environment would reduce time-to-market for the expansion of facilities, such as the Prince Manufacturing Assembly and Distribution Center for operations in North Carolina, and generally make it easier to respond to changing customer needs.
Facility Expansion
Prince’s customers would also benefit from increased responsiveness. Many are looking for contract manufacturers that can react quickly and efficiently to new orders, so eliminating layers of compliance requirements will help Prince Manufacturing serve them.
Tariffs on Imports from China and Other “Non-Cooperative” Countries
Trade policy is one of the most critical points in Trump’s economic agenda, and we can expect his administration to leverage tariffs in order to incentivize domestic production while punishing imports from non-compliant countries.
Tariffs on Chinese goods in particular could present an opportunity for Prince Manufacturing and other companies that have developed successful U.S.-Mexico supply chains. Prince, with manufacturing and assembly operations in Mexico and a robust U.S. infrastructure in place to support them, is the ideal candidate to service businesses looking to move away from Chinese suppliers.
The shift in sourcing from Asia to North America will give new incentives to automakers and other manufacturers to consolidate production and assembly operations closer to the U.S. market. Prince already has decades of experience manufacturing automotive components as well as recreational vehicles, and power distribution in these sectors, so the bill could help drive new growth in the coming years.
Infrastructure Improvements
In the long term, Trump has proposed a major infrastructure program for the U.S. that would cover highways, railroads, energy grids, and seaports.
While more of a backstop than an urgent consideration, we should not discount the importance of such investments to a company like Prince Manufacturing.
Transportation costs are a core metric of any manufacturing operation’s competitiveness, and improvements to U.S. infrastructure, especially along key trade corridors and border access points, would only serve to enhance Prince’s position. Reducing transport costs for getting parts from Prince’s Mexican facilities in Monterrey or Juarez to assembly/testing hubs or distribution centers in the U.S. will make its value proposition even more attractive to potential customers.
If we consider the connectivity along the U.S.-Mexico border (energy, water, telecommunications, etc.), it is a key area where the incoming administration may be able to move faster and more efficiently than previous governments. The Prince Manufacturing network straddles that border, and we can expect the company to benefit directly as a result of this policy effort.
Energy and Environmental Policy
Trump’s promised energy policy overhaul may also include some positive elements for Prince Manufacturing. The president-elect’s emphasis on domestic production and energy independence, along with his call to eliminate “harmful and unnecessary” environmental regulations that artificially drive up energy costs for manufacturers, should lower and better predict energy costs for American manufacturers.
Prince Manufacturing’s electrocoating and metal finishing operations are among the most energy-intensive in its production process. The more predictable and affordable energy prices become, the better.
Programs to Support Workforce Development and Technical Training
In the past, Trump has proposed or advocated for programs to help fund technical training, apprenticeships, and vocational training that are tied to labor needs of manufacturers.
One area of the bill that will be keenly watched by Prince and other manufacturers will be initiatives to help U.S. companies attract and retain skilled workers without relying on costly degree programs.
Prince has long benefited from a labor pool of skilled, factory-floor and production technicians and operators in both the U.S. and Mexico. These workforce development incentives could help the company further develop its training and retention programs and take full advantage of a larger labor pool in order to improve quality, employee satisfaction, and efficiency.
Prince’s customers will see the benefits of enhanced employee training programs, as well. Better-trained employees lead to higher-quality products and shorter ramp-up times for new production runs.
Veterans, the Underemployed, and Community College Partnerships
Veterans are another population that Trump has promised to help through job training programs, infrastructure investment, and even industry partnerships. Community college partnerships will also be a key area for workforce development.
Again, the Prince Manufacturing Corporation is a natural beneficiary of such programs. Prince can look to veterans as an expanded source of talent to support its expansion plans, especially in states like Indiana, South Carolina, North Carolina, and Texas, where the company either has operations or logistical partnerships.
Foreign Companies Can Get In on the Action
Trump’s reshoring agenda may seem like an initiative for purely domestic companies, but the present administration may look to offer preferential terms to foreign firms that choose to invest or expand manufacturing operations in the U.S.
This could come in the form of specific carve-outs for new plants and jobs created in the U.S., or through benefits for the transfer of intellectual property or know-how into the U.S. and the domestic ecosystem.
Any foreign company entering the U.S. market will seek to rapidly scale operations and get to market as efficiently as possible, and this is where a company like Prince Manufacturing comes in. Prince can provide an “in-market” partner for global companies looking to sell into the U.S. as part of a contract manufacturing relationship with the flexibility, and quick turnaround that the Trump administration has been touting as a benefit for companies taking the “America First” approach to manufacturing.
A Boost for Prince Manufacturing?
What we can say is that every component of President Trump’s economic plan to this point has positive implications for Prince Manufacturing’s operations and the value it provides to customers. Every sector of its business will see some benefit: its domestic assembly and distribution operations, its customers, and the clients it serves.
Prince is not only well-positioned to weather the next industrial cycle, but the company also has a unique opportunity to participate in and even lead the way during an unprecedented expansion of American manufacturing.