How the Election Might Affect the Supply Chain

Regardless of where you happen to fall on the political spectrum, there is no denying that the election results will see a number of changes taking place across the spectrum in business, and the supply chain will undoubtedly be affected.

Drawing on his vast knowledge of the manufacturing industry in the Midwest and the supply chain industry as a whole, Supply Chain Digest Editor Dan Gilmore recently outlined the areas of supply chain practice that he thinks will feel the greatest effects of a Trump presidency.

Environmental Concerns

Gilmore feels that energy prices will ultimately remain low. After all, Trump has promised that he will keep coal miners in business and focus on American production of natural gas and oil. He points out that the CO2 emissions UN agreement signed by Obama is non-binding. Although he feels a cap-and-trade CO2 emissions program is not on the horizon, he predicts that many businesses will pursue CO2 reduction measures on their own.

Trade Policy and Business Regulations

A big part of Trump’s platform was denouncing trade deals that threaten American manufacturing. The U.S. trade deficit in goods with China reached nearly $4 trillion over the course of the last 16 years, and this situation is likely to change. Tariff hikes could be instituted in certain product areas on goods coming from China, and we could also see PR smear campaigns against firms that make offshoring moves. Trump has also said he’d like to see NAFTA renegotiated, although no one can say for sure how that might turn out. There are some genuinely concerning issues plaguing our nation when it comes to trade policy, but fixing them is not going to be easy or straightforward.

The levels of business regulation seen under Obama are also likely soften, with the National Labor Relations Board possibly leaning back in favor of businesses. In addition, the National Association of Manufacturers seems poised to get the reduction in U.S. business taxes they have been pursing for a long time in hopes of making American companies more competitive.