House Republican Conference Chairwoman Lisa McClain (R-Mich.) came to New Jersey last week as part of a multi-state tour of manufacturing companies. The purpose of the visit was to explain the benefits the recently passed One Big Beautiful Bill Act (OBBBA) will have on the industry.
The Act, which made provisions in the 2017 Tax Cut & Jobs Act permanent, provides incentives to manufacturers such as: reinstating full expensing for new and used machinery, equipment, and certain building improvements; eliminating taxes on overtime pay, which would incentivize hourly workers to work more hours, potentially increasing productivity in the manufacturing sector; and making permanent the 20% small business deduction, which benefits many manufacturing businesses that operate as pass-through entities.
Accompanied by Representative Tom Kean Jr. (NJ-R) and officials from the National Association of Manufacturers (NAM), McClain said the tour was about having honest conversations with manufacturers to find out “what their asks” are.
The group listened to the challenges of Bihler of America, a Phillipsburg-based manufacturer of precision automation systems for stamping, forming, welding, and fastening. Since 1976, its Phillipsburg facility has supported the automotive, e-mobility, electrical, medical, and industrial sectors through cutting-edge manufacturing, retrofits, and contract production services.
Bihler CEO Maxine Nordmeyer, whose father co-founded the company in partnership with Otto Bihler Maschinenfabrik GmbH & Co., Germany, said the company and its divisions have grown from 20 employees in 2007, when Nordmeyer became CEO, to 350 today. Last year, the company reported more than $100 million in sales.
However, Nordmeyer said Bihler USA is in a downturn-mode after losing a major client. This year, it provided the USDOL with a WARN notice that it will lay off 66 workers. “We were anticipating more losses, but we were able to save jobs,” Nordmeyer said. This was accomplished by conducting more business with existing clients and actively looking for new customers, she said.
The company is also being impacted by the Trump administration’s trade tariffs, since it has to source certain materials from overseas suppliers. It is also experiencing a labor skills gap due to retiring engineers.
Nordmeyer said she is happy with the direction that President Donald Trump is taking the country, as she referred to the OBBBA, but said her clients are paralyzed right now because of the tariffs. She added, “As this all gets [sorted out] and everyone gets an understanding of what the numbers will be, I think things will be very positive. We are starting to see more orders coming in. I see that as a positive sign that things will pick up by the end of the year.”
McClain told Nordmeyer that the tariff situation will be settled in time. “We are closer today in having things settled than yesterday, but I can’t give you an exact date,” she said. “The president is keenly aware that there are things we can’t source here, and we have to make some adjustments for that.”
Meanwhile, Kean discussed some of the overall economic benefits of the OBBBA, including the increase of the SALT deduction cap to $40,000, no taxes on tips, and no taxes on social security benefits for the majority of senior citizens.
Commenting on the purpose of the tour, McClain said she wanted to get closer to manufacturers. “The reason we are working with organizations like NAM is because we want to come see and touch [manufacturing businesses] because they know what is better – they can anticipate a policy’s unintended consequences better than we can ever do in Washington. We need communication from the ground level as opposed to from the talking heads,” she said.
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