In the heart of Wisconsin’s Rust Belt, a transformation is underway, spearheaded by Komatsu, the world’s second-largest mining equipment manufacturer. The company is expanding its U.S. operations, a move it attributes to the favorable environment for coal and critical mineral mining fostered by President Trump’s policies. This expansion is a tangible example of how the administration’s focus on revitalizing U.S. manufacturing, particularly in the energy sector, is reshaping the industrial landscape.
Komatsu’s new campus in Milwaukee’s Harbor District, a former Superfund site remediated during President Trump’s first term, stands as a testament to this revival. The site, reminiscent of Milwaukee’s industrial heyday, is now home to a prosperous new industrial center. The expansion is not just about manufacturing equipment; it’s about the technology that comes with it, signaling a broader reshoring of mining equipment manufacturing and technology to the U.S.
The Environmental Protection Agency (EPA), under President Trump’s administration, has been streamlining regulations to encourage energy development and attract companies to the U.S. “At EPA, we are untangling regulatory red tape at record speed, implementing durable, efficient policies that encourage U.S. energy development,” said Lee Zeldin, Administrator of the US Environmental Protection Agency. This regulatory environment, coupled with the administration’s tax policies, is breathing life back into towns across the country that have suffered from massive job losses as industry shuttered on U.S. shores and reopened overseas.
The “One Big Beautiful Bill,” proposed by President Trump, aims to make the Trump Tax Cuts permanent. This move is expected to incentivize domestic manufacturing and investment. The bill proposes a 15% corporate tax rate for domestic manufacturing and equivalent reductions for pass-through manufacturing activities. It also allows businesses to deduct the full cost of capital investments up front, rather than spreading the write-off over the life of the asset. This provision is expected to encourage companies to invest in research and development, fostering technological evolution and economic growth.
The impact of these policies is already evident. In 2018, R&D spending grew by 7.4% due to the Trump Tax Cuts. However, under President Biden, this growth slowed to 3.6% annually in 2022. The proposed tax cuts are not just good for businesses but also for everyday Americans, promising higher wages and increased take-home pay.
The reshoring of manufacturing operations also has environmental benefits. As Zeldin noted, “reshoring protects our environment because our standards to protect air, land and water far exceed those of any nation.” This is a significant point, given that countries like China, Mexico, and some in Southeast Asia absorbed a great deal of U.S. manufacturing during the Biden administration, often with lower environmental standards.
The expansion of Komatsu’s operations and the broader reshoring of manufacturing and technology to the U.S. could significantly shape the development of the mining sector. It could lead to increased investment in U.S. coal and critical mineral mining, fostering technological advancements and job creation. Moreover, it could spur innovation in mining equipment and technology, making U.S. operations more efficient and environmentally friendly.
However, the success of these policies hinges on the passage of the “One Big Beautiful Bill.” If passed, it could usher in a new era of prosperity for American workers, families, farmers, and small businesses, marking a significant shift in the U.S. mining industry’s trajectory. The bill’s provisions could also encourage other companies to follow Komatsu’s lead, further revitalizing U.S. manufacturing and the mining sector.