Chicago City Wire

As an association representing small and midsize manufacturers, we've seen members who have spent years pouring their heart and soul into building a business that creates high-quality, American-made products. They're a proud part of a manufacturing industry that accounts for nearly 20% of Illinois’ economic output. But today, their business—like many others—finds itself fighting for survival against rising costs, aging skilled workers, and the undeniable influence of China on the global market.

The reality is that small and midsize manufacturers are facing a perfect storm of challenges, and if we don’t act soon, the dream of a vibrant, Made-in-America economy will slip further from our grasp.

The Rising Tide of Costs

Let’s start with the basics: costs. Over the past several years, the cost of living has skyrocketed across the country, and this has inevitably trickled down to affect the cost of doing business. For manufacturers, this manifests in higher utility bills, increased energy costs, and skyrocketing raw material prices. What was once a manageable expense for small businesses is now a crushing burden. For example, electricity and natural gas prices have surged month over month, leaving manufacturers scrambling to absorb these costs or pass them onto consumers.

It’s not just the energy prices that have hurt. Labor costs are also rising in Illinois, and while manufacturers want to give workers higher wages, that means letting others go. The skilled trades are also facing a massive shortage, and it’s becoming harder and harder to find qualified individuals to fill roles that require years of experience and training. With fewer young people entering the workforce, many manufacturers are left turning to incorporating more technology, taking away from good-paying job opportunities.

The Shadow of China’s Influence

On top of these domestic pressures, manufacturers are grappling with the continued influence of China on the global supply chain. The massive influx of cheap, imported goods from China has been a thorn in the side of American manufacturers for decades and even more in recent years. While this influx may benefit consumers in the short term with lower prices, it’s a long-term threat to American jobs and industries. We’ve seen entire sectors of manufacturing, from textiles to electronics, outsourced to China or other low-cost countries.

The fallout from these trade imbalances isn’t just theoretical—it’s tangible. As Chinese companies flood the market with products made at a fraction of the cost, it becomes harder for small, American manufacturers to compete. We can’t compete with wages of $2 a day in China, and it’s increasingly difficult to justify the cost of American-made goods when consumers are swayed by the allure of cheaper alternatives. Even when our manufacturers can produce something competitively, the lead times for overseas shipments are often so long that it becomes difficult to meet customer demand without sacrificing quality or service.

This isn’t just a manufacturing issue—it’s an economic one. Every time a factory closes its doors in the U.S., it impacts not just the workers in that factory, but the communities that rely on them. And, inevitably, the cost of living rises further as fewer well-paying, blue-collar jobs remain in the U.S.

The Stakes for Small Manufacturers

Small and midsize manufacturers are the backbone of American industry. They are the companies that innovate, take risks, and keep the economy humming at the local level. But without a serious commitment to supporting they—through incentives for energy efficiency, investment in workforce development, and fair-trade policies—we risk losing a key piece of our economy.

It’s time for policymakers to recognize that the challenges facing American manufacturers are not just about economics; they are about national security, community stability, and the future of our workforce. We need lower taxes, fewer burdensome regulations, and policies that ensure fair competition, not just cheap imports.

At the end of the day, “Made in America” is more than just a label—it’s an economic lifeline. If we want to keep manufacturing alive in this country, we need to support small businesses and make sure that the future of American manufacturing is bright. If we fail to act now, we risk losing it all—not just as manufacturers, but as a nation.

Dennis LaComb is the Executive Vice President and Chief of Staff for the Technology & Manufacturing Association, an independent trade association exclusively funded by industry and solely focused on small and midsize manufacturers.