When the White House Meets the Factory Floor: A History of Presidential Influence on Industry

On the cusp of the Great Depression, a poem from our March 1929 edition titled The Manufacturers' Friend celebrated Herbert Hoover as a champion of American industry. At a time when the nation was headed toward economic collapse, manufacturers saw in Hoover a leader who understood their struggles—someone who had once been an engineer, a businessman, and an advocate for industryy. Yet, as with many presidents before and after him, their support was often mixed, shifting between hope and frustration as policies unfolded.

Manufacturers have long looked to the White House for leadership, policy, and vision—but not always with enthusiasm. From George Washington’s push for domestic production to modern initiatives shaping high-tech and green industries (and yes, tariffs!), presidential decisions have frequently spurred both progress and discontent. Let’s take a look at the U.S. presidents who built (or broke) American manufacturing.

Founding Fathers and Manufacturing: The Birth of an Industrial Nation

When George Washington took office in 1789, the United States was largely an agrarian society, heavily dependent on foreign goods. But Washington understood that true independence required economic self-sufficiency. He championed American-made products, urging citizens to buy domestic goods and wear locally produced textiles. His Treasury Secretary, Alexander Hamilton, reinforced this vision with his Report on Manufacturers, advocating for protective tariffs to shield budding American industries from European competition.

Thomas Jefferson, by contrast, was skeptical of large-scale industrialization, believing an agrarian society best suited the young republic. Yet, as president, he made pragmatic concessions—his Embargo Act of 1807, while disastrous for trade, inadvertently spurred domestic manufacturing by cutting off European imports, forcing American industries to grow.

James Madison carried forward Washington’s vision by implementing protective tariffs to nurture nascent industries. The War of 1812 further highlighted the need for self-reliance, solidifying manufacturing as a cornerstone of American economic policy.

The Industrial Revolution and Presidential Policy

As the 19th century progressed, industrialization transformed the nation. Andrew Jackson’s presidency marked a shift, as he opposed the national bank, limiting credit access for manufacturers. However, he also pushed for tariffs that had mixed effects, protecting some industries while straining agricultural exporters.

No president was more instrumental in manufacturing’s rise than Abraham Lincoln. His administration aggressively promoted industrial expansion during the Civil War, supporting railroad construction, awarding government contracts, and implementing the high Morrill Tariff to shield domestic industries. Lincoln’s policies helped solidify the North’s industrial dominance—a legacy that would shape the post-war economy.

Ulysses S. Grant continued this trajectory, presiding over the Gilded Age, a period of explosive industrial growth. High tariffs protected manufacturers, and rapid infrastructure expansion—fueled by government incentives—drove the rise of steel, railroads, and mechanized production.

The Progressive Era: Balancing Growth and Reform

By the early 20th century, manufacturing was booming, but with it came monopolies, unsafe labor conditions, and growing economic disparities. Theodore Roosevelt took on these challenges with his trust-busting policies, breaking up industrial giants to ensure fair competition. While some manufacturers resisted regulation, Roosevelt’s approach ultimately encouraged innovation and market dynamism.

Woodrow Wilson, on the other hand, lowered tariffs through the Underwood Tariff Act, a move that manufacturers viewed with skepticism. While this reduced consumer prices, it also exposed American businesses to foreign competition. However, Wilson also established the Federal Trade Commission to curb unfair business practices, a measure that protected smaller manufacturers from corporate overreach.

The Great Depression and Manufacturing Resilience

Herbert Hoover entered office with strong ties to industry, and manufacturers initially welcomed his policies. The Smoot-Hawley Tariff aimed to shield domestic production from foreign competition, but instead triggered retaliatory tariffs worldwide, exacerbating the economic downturn. Despite these setbacks, Hoover remained committed to public works projects, including the Hoover Dam, which provided jobs and drove demand for industrial materials.

Related: What Manufacturers Were Saying About Tariffs in 1930

Franklin D. Roosevelt took a different approach with his New Deal, injecting federal funds into massive infrastructure projects. Programs like the Tennessee Valley Authority (TVA) and the Works Progress Administration (WPA) revitalized manufacturing, providing both direct employment and a surge in demand for steel, cement, and machinery.

Post-War Boom and Globalization

Following World War II, manufacturing became the backbone of America’s economic dominance. Dwight Eisenhower’s interstate highway system fueled industrial expansion, connecting factories to markets like never before. Meanwhile, John F. Kennedy and Lyndon B. Johnson’s policies emphasized technological advancements, setting the stage for aerospace and defense manufacturing booms.

Richard Nixon and subsequent leaders faced the growing rise of globalization. While American manufacturers faced increased foreign competition, trade agreements and technological innovations kept the industry evolving. Ronald Reagan’s presidency saw deregulation and tax cuts that encouraged industrial investment, though some sectors struggled with offshoring trends.

During Bill Clinton's presidency from 1993 to 2001, the U.S. manufacturing sector underwent significant transformation due to globalization and technological innovation. One of the defining actions was the implementation of the North American Free Trade Agreement (NAFTA) in 1994, which aimed to remove trade barriers with Canada and Mexico. While NAFTA increased U.S. exports, it also sparked controversy over job losses in manufacturing as companies moved operations to regions with cheaper labor. Alongside this, the rapid advancement of technology during Clinton's tenure introduced automation into manufacturing processes, which, while enhancing efficiency, reduced the demand for manual labor in some traditional sectors. However, the economic boom of the late 1990s helped offset some of these challenges by creating a period of low unemployment and high productivity, even though manufacturing's share of GDP relative to services began to decline.

George W. Bush's term from 2001 to 2009 was marked by economic challenges that deeply affected U.S. manufacturing. Entering office amidst a recession triggered by the dot-com bubble's burst, the sector struggled with decreased demand. The landscape shifted further with China's accession to the World Trade Organization in 2001, accelerating the offshoring of manufacturing jobs to China due to its lower labor costs and vast market. Bush's tax policies aimed at stimulating economic recovery had mixed effects on manufacturing; while they encouraged some investment, the sector felt the strain of globalization.

The financial crisis of 2007-2008 brought about severe downturns, leading to significant job losses in manufacturing, notably in the automotive industry, which necessitated government interventions like bailouts. Bush's energy policies, focusing on deregulation and alternative energy, offered new avenues for manufacturing but also highlighted the sector's need to adapt to new economic realities and global competition.

The 21st Century: Reinventing American Manufacturing

In the modern era, presidents have focused on revitalizing U.S. manufacturing amid persistent global competition and fast-moving technology. Barack Obama’s Advanced Manufacturing Partnership sought to strengthen supply chains and invest in high-tech industries. Donald Trump’s "America First" policies and subsequent tariffs on steel, aluminum, and Chinese imports aimed to protect domestic industries, a move welcomed by some manufacturers while increasing costs for others.

Joe Biden continued efforts to rebuild American manufacturing, emphasizing infrastructure investment and clean energy production. His administration’s focus on semiconductor production and supply chain resilience reflected the evolving priorities of modern industry.

From Washington’s early tariffs to Biden’s investment in high-tech manufacturing, U.S. presidents have shaped industry through strategic policymaking. Manufacturers have consistently responded to presidential decisions, aware that the direction set in the Oval Office influences their success. While views on leadership vary over time, one constant persists: the dynamic relationship between American manufacturing and the presidency underscores a history defined by adaptation, innovation, and the pursuit of economic growth.

Further Reading: Trump 2.0 & Manufacturing: The Latest Executive Orders & Policies Impacting Manufacturers