The U.S. has to revitalize manufacturing by changing the way companies do business here, Deere CEO Samuel Allen told CNBC Thursday.
Allen, speaking as president of the Council on Competitiveness, said a new report from the group includes a wide range of recommendations to do that.
However, he acknowledged many of those ideas would require action by a politically dividedU.S. Congress.
"There is some potential" for action in 2013, no matter who is elected president in 2012, he said. "Maybe I am an eternal optimist."
The recommendations include cutting regulations. "If everybody would have to look at a cost benefit tradeoff to that regulation, I think we would be much, much better off and still be able to do the things that some of these regulations were intended to do," said the Deere executive .
The council also favors replacing the double taxation system with a territorial system to facilitate repatriation of earnings. Allen said this would be a big help to smaller U.S. manufacturers.
"The argument I’ve made when I meet with people on [Capitol Hill] is, if you don’t create an environment for people to repatriate [earnings] then they stay offshore and that doesn’t help the country either," he said.