America’s industrial base is in the midst of a generational shift. Federal tax reform, restructured trade relationships, and sweeping permitting changes are redefining what it takes to invest, build, and operate in the United States. For manufacturers navigating expansion or reshoring decisions, understanding how these policies align—or collide—with real-world project execution has never been more critical.
The Policy Environment: Opportunity Meets Complexity
Recent legislative activity has opened a window of opportunity for domestic manufacturing. The passage of the One Big Beautiful Bill Act, a sweeping tax package signed into law in July, extended key provisions of the 2017 Tax Cuts and Jobs Act, including a 21% corporate rate and incentives for capital equipment and R&D.
“The new tax structure should act as rocket fuel for U.S. manufacturing,” said Charles Crane, Managing Vice President of Policy at the National Association of Manufacturers. “The question isn’t whether it will drive investment—it’s how much the current uncertainty will limit that potential.”
At the same time, a “right-sizing” of federal regulations is underway, aiming to reduce the $3 trillion annual regulatory burden on U.S. businesses. Streamlined permitting and clearer environmental standards could accelerate project timelines for manufacturers, especially in energy-intensive and infrastructure-dependent industries.
Added context: According to the National Association of Manufacturers, regulatory compliance costs small manufacturers an average of $29,000 per employee per year—nearly double that of the average U.S. business.
Permitting Reform: The New Competitive Frontier
For decades, the permitting process has been one of the biggest obstacles to speed-to-market in U.S. project development. Federal data show that it takes roughly 80% longer to permit an industrial project in the U.S. than in other advanced economies.
Today, that’s beginning to change. The Environmental Protection Agency and Department of Commerce have introduced new pathways to allow limited site work before final approvals. A move that could cut early-stage project delays by months.
“The Trump administration has asked companies to identify which rules are most problematic,” said Hunter Vogel, Managing Director at Ankura. “They’ve created cross-agency teams focused on unlocking those bottlenecks, especially for projects deemed critical to national or economic security.”
At the local level, these changes underscore the growing importance of site readiness. Counties and regions that can move faster on air permitting, wetlands mitigation, and infrastructure planning will be positioned to win more projects.
GLS Insight: In the current environment, a “permit-ready” site can create the equivalent of a six-to-nine-month competitive advantage in project delivery, often the deciding factor in site selection.
FDI and Domestic Investment: The U.S. Holds Its Ground
Despite volatility in global markets, the U.S. continues to outperform its peers in attracting high-value industrial investment. In 2024, foreign direct investment (FDI) announcements reached record highs, with the U.S. capturing 29% of global announced capital expenditures, up from a historical average of 9–10%.
Even as total project counts have declined, the average size and capital intensity of projects have increased—especially in semiconductors, advanced manufacturing, and clean energy.
While the number of projects is down slightly, U.S. manufacturing remains remarkably resilient. What we’re seeing is fewer but far more complex projects that require robust infrastructure, power availability, and long-term talent planning.
Workforce: The Critical Constraint
No policy can offset a lack of skilled labor. As the baby boomer generation retires and immigration channels remain uncertain, workforce availability has emerged as the single most limiting factor in U.S. manufacturing expansion.
Manufacturers currently face an estimated 400,000 open positions nationwide, with the greatest gaps in technician, machinist, and electrical trades. Many communities are responding with apprenticeship models, high-school technical programs, and public-private partnerships designed to align training with employer demand.
For economic developers and manufacturers alike, the message is clear: workforce planning must begin well before the site is selected.
The Path Forward
The U.S. manufacturing landscape is being redefined by the intersection of policy certainty, permitting reform, and workforce innovation. Together, these forces are shaping not just where companies invest but how quickly those investments translate into production and long-term competitiveness.
For manufacturers, now is the time to align capital strategy with evolving regulatory and labor realities.
For communities, it’s an opportunity to modernize site readiness and workforce ecosystems to meet the moment.