There was a time in American history when the vast majority of manufacturing facilities, including foundries, were family-owned small businesses. Major trusts like U.S. Steel or conglomerates like Litton Industries got the newspaper headlines in much of the 20th century, but small businesses from the start have been the cornerstone for manufacturing. 

It was even true when America’s independence from Great Britain was declared, with seven foundry owners signing the document.  Of the 56 original signers, John Adams, Sam Adams, Thomas Jefferson and Dr. Benjamin Rush are best remembered, but the seven foundrymen-signers are commemorated on a plaque in the lobby of American Foundry Society (AFS) headquarters in Schaumburg, Illinois. 

Now, we are a quarter of the way into the 21st century and 11 months from now, the United States will be celebrating its 250th birthday. America maintains a robust economy that provides tremendous economic opportunity. Manufacturing employs roughly three million people and constitutes at least 10% of economic output. Foundries are essential to manufacturing for reasons that Modern Casting readers understand. Even today, after waves of industry consolidation, most foundries are small businesses. 

Always Advocating 

AFS advocates year-round in Washington, D.C., for public policies conducive to strong growth in the manufacturing sector. In nearly every communication with the administration policymakers, members of the House and Senate, and related audiences, AFS emphasizes that the vast majority of the nation’s 1,700 foundries are small businesses. Whether owned by a single family, a consortium of entrepreneurs, a larger company or an equity firm, hundreds of these foundries easily meet a U.S. Small Business Administration (SBA) definition of a small manufacturing business with under 500 employees.

The SBA Office of Advocacy is well aware of the special challenges and higher per-employee costs that smaller businesses face, but lawmakers and congressional staff don’t always understand these realities. That is where AFS and allied organizations come in, explaining the impacts and advocating for specific proposals that will benefit the nation, the communities in which they operate, as well as manufacturers and their workers. 

AFS members scored a major victory in early July when Congress and the president agreed to extend the 2017 tax incentives, which were in the process of being phased out. Had they expired, metalcasters would have faced higher taxes themselves, not to mention the negative impact the higher taxes and expiring incentives would have had on foundries’ customers. The hope is that the enactment of the tax law will inject at least some element of certainty into business planning.

Much Work to Be Done

Congress recently adopted a permitting reform measure, but much more work is needed on that front. AFS is strongly urging Congress to take up a trade bill in 2025 and to include language to strengthen the power of government and private parties to crack down on trade cheats. More action is needed to ensure adequate supplies of affordable electricity and transportation fuels. Government training programs need to be streamlined and improved. 

In addition to federal policies, which are the focus of AFS, several states have metalcasting associations that are vital AFS partners, advocating in the state capitals. I will be convening an “Essential Updates from State Capitals” webinar on October 29, featuring the leaders of these state groups.

America––and by extension Canada and Mexico––must never lose its focus on supporting and encouraging small businesses, which are the lifeblood of local communities and the engines that drive much of our economic growth.