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2025 was doozy. I know I don’t need to tell you that. Things were rather unpredictable and hard in a lot of different ways for a lot of people. Yet it the same time, there were people all over the country doubling down to do good work. People ready to make a difference in the lives of their neighbors. People ready to step up and show that we can make things happen.
Local leadership blew me away. I met people from all over the country who are creating jobs in small-scale manufacturing and supporting the spaces and programming these business owners need. Our inaugural SPARK 10 profiles in Next City showcased just a few of the amazing people out there leading the way.
Folks are stepping up for small manufacturing. More places are recognizing that these businesses are the source of invention, skills training, and the future of so many local economies. That states need to step in and support this sector in the face of tariffs, and that new investments in the ecosystem for these businesses is a good bet for the local tax base.
State and regional leaders get it. New philanthropic partners are bringing the expertise, funding, and connections needed to local leaders to help them build up the small-scale manufacturing sector and get projects moving. They recognize this sector will grow local revenues and help struggling local government budgets.
So where do we go from here?
We need to invest in and grow small-scale manufacturing to become the dominant economic system for communities in the US. This sector is now an "of course we need to" vs a "nice to have." We know that small-scale manufacturing is key to create thriving downtowns in places big and small, better paying jobs for more people, and more people feeling engaged in their community and democracy.
This sector is our competitive edge to grow local government revenue. It makes a place stand out because of the unique businesses there. When these businesses fill storefronts, they draw people together, but they also grow property values and local tax revenues. Our cash strapped local governments are already desperate and the need to address local revenues will only grow next year. Small-scale manufacturing helps us get there.
These businesses are also our homegrown trade businesses. This means that they sell products outside of the jurisdiction and bring revenue into the community through online sales and wholesale growth. This is true of artisan to advanced manufacturing enterprises, and these businesses need to be recognized for what they do.
What do we do in 2026?
1. Find the small-scale manufacturing businesses and understand their needs, help them stabilize and grow. Bring them together, tell their stories, and make sure they are visible in your community. Be loudly proud of these business owners and what they make.
2. Get state legislatures to step up and cover the short-term costs of the tariffs for product businesses with 50 or fewer employees as they redesign their supply chain and production plans, so these businesses don’t go bankrupt from this sudden market change.
3. Change local policies and programs to become “Product Business Friendly.” Even better, work with your property owners, business owners, and small business support partners to make sure the pipeline of support for this sector is not just ok, but robust.
What does this get us? A rising tax base. More people building wealth and involved in the local economy. A downtown people love.
Seems pretty good to me for 2026.