At the start of the month, President Biden announced a $2T economic plan called the American Jobs Plan, including investments into infrastructure and manufacturing. In general, leaders in the metals industry have reacted favorably to the announcement because the plan could create millions of new jobs over the next two years, including new jobs within the metals industry, which plays a significant role in US manufacturing and infrastructure.
The American Jobs Plan
President Biden describes the American Jobs Plan as an investment in America that will create millions of good jobs, rebuild our country’s infrastructure, and position the United States to out-compete China. The plan includes intentions to increase spending on infrastructure to improve ports, waterways, and airports in the United States. Biden also has plans to enhance electrical grids, invest in manufacturing, and secure supply chains for significant resources like aluminum and semiconductors.
AISI Supportive but Critical about Funding
The American Iron and Steel Institute (AISI) has indicated support for the plan, thanking the Biden Administration for showing a commitment to improving waterways, roads, bridges, and other aspects of US infrastructure using American-made steel.
However, the AISI criticized the plan’s approach to funding, “In terms of funding, AISI’s view is that the best way to fund infrastructure is through a dedicated user fee rather than through the corporate income tax, revenues which go to the general treasury,” arguing that user fees would provide for more long-term funding by financing the Highway Trust Fund. Still, the institute believes the plan will be good for manufacturing jobs and encourage consumers to buy products made in America.
The Aluminum Association Wants to See Infrastructure as a Priority
The Aluminum Association has expressed optimism towards the American Jobs Plan. The association’s CEO, Tim Dobbins, released a statement saying, “We are pleased to see the Biden administration and the Congress focusing on infrastructure investment as the national priority that it is.” In addition, the Aluminum Association suggested the plan would provide an opportunity to modernize America’s recycling infrastructure, which is an essential step in securing aluminum supply chains and making the nation’s manufacturing industry more self-reliant.
After President Biden released details about the American Jobs Plan, many metal industry leaders seemed hopeful about his administration’s job creation plan. Investments into critical public infrastructure like roads and airports could bolster domestic manufacturing and create new job opportunities for professionals in the industry. While separate from the American Jobs Plan, a related part of the Biden Administration’s economic plan is a Made in America Tax Plan, which will reward corporations who use domestic manufacturers and discourage offshoring. Many in the industry are hopeful that together the two plans can shift job creation to individuals who live on US soil.
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