Our Solution
By Garry Hojan
A great and timely question.
Aerospace and manufacturing have an interesting overlap of government and business, which involves policies that cross the aisle.
The 2024 presidential election could significantly impact your aerospace manufacturing business in several ways:
The regulatory environment: Different parties and candidates have varying approaches to regulations that could affect aerospace standards, environmental policies, and safety regulations. A more favorable regulatory climate could ease compliance burdens. Unfortunately, it is impossible to predict what a specific candidate’s impact will have on the regulatory environment. We should look to historical party policy and standings as a marker for the most likely outcomes after the election.
Defense Spending: Aerospace often ties closely to defense contracts. If a candidate supports increased military spending, it could lead to more contracts and opportunities for your business. Historically the Democratic party has reduced defense spending while the Republican party has increased defense spending.
Infrastructure Investment: If the elected administration prioritizes infrastructure development, there could be increased funding for projects that benefit the aerospace sector, such as airport upgrades and new technologies. The Republican party is marginally more pro-aviation, while the Democratic party recognizes aviation value but is more concerned about climate change in its regulatory agenda.
Trade Policies: Your supply chain and market access could be affected by the stance on international trade, tariffs, and relations with key partners. Over the last several decades, there has been a shift within political parties over international trade. Traditionally, Democrats were suspicious of international free trade, and Republican policy encouraged it. Today, it could be argued that this has reversed. We have many moving parts today that affect our supply chain, which will be a key area for all manufacturing to watch.
R&D Funding: Changes in funding for research and development can influence innovation and technological advancements within the industry. Historically political party policy effects where R&D funding will be used, Republicans favor defense R&D where Democrats favor a more unilateral approach.
Workforce Policies: Labor policies such as minimum wage (state but may be influenced at the federal level based on administrative policy), immigration, education, can all impact your ability to attract and retain skilled workers.
The best preparation is keeping informed about candidates’ platforms and any potential policy shifts, this will help you anticipate and adapt to changes that may arise from the election.