Originally published in Governing Magazine, December 2, 2025.
They’re an important pipeline of skills, products and innovation for larger industries, but they’re reeling from tariffs. There’s a role for grants and tax breaks, and states need to track who these businesses are and what they do.
The ambition for the import tariffs President Donald Trump has imposed on countries around the world is to bolster U.S. industry, reshoring and growing large manufacturing plants. Yet manufacturing success depends as well on small-scale manufacturers, the inventors and training grounds for the larger-scale sector.
Small-scale manufacturers and other businesses are being throttled by the tariffs and need support to adjust and survive. States should step in to help — in both the short and long term. State economies can thrive with a strong and supported small-scale manufacturing sector or lose out on this economic engine and see it disappear without support.
Read the full article here.