The Three Dimensions of Government
Today, government influences business outcomes more directly—and more deeply—than ever before. This shift has not gone unnoticed, especially among mid-sized manufacturers and industrial firms that may never have viewed government as a core part of their strategy. As these companies begin to consider building or expanding their government affairs (GA) functions, a fundamental question arises: is the return worth the investment?
Answering that requires stepping back and seeing the complete picture. Government does not interact with your business through a single channel. It shows up in three distinct and powerful ways: as a regulator, as a funder, and as a customer. Each of these dimensions carries its own risks, rewards, and strategic levers. Focusing too narrowly on one means missing value—or exposing your company to unnecessary risk. So where should you start?
Government as Regulator
To many executives, the word “regulator” doesn’t generate a positive image. We tend to associate “regulations” with compliance burdens, bureaucratic inefficiencies, and non-value-added tasks that increase the cost of doing business. In that framing, regulators are simply something to be managed—and their impact, mitigated.
Companies with high-performing GA teams, however, flip the script. They ask a better question: Can regulation become a competitive advantage for us? You’d be surprised how often the answer is yes.
Take a closer look at your product lines, and you may find some that deliver measurable public benefits—whether that’s improved safety, energy savings, or emissions reductions. Why not engage with regulators to adopt standards that encourage, or even require, the use of those products? Even smaller companies can do this effectively, often by working through trade associations or coalitions.
Evaluating product lines through a regulatory lens might seem like a heavy lift, but it doesn’t have to be. Most companies already conduct regular strategic reviews. They evaluate markets, customer demand, supply chains, and product performance. Adding a government dimension to that analysis is not only achievable—it’s a natural and necessary evolution of your strategic process.
When companies shift their mindset from regulation as a cost, to regulation as a growth driver they begin to see opportunities others miss. They don’t wait for the rules to be written; they help write them.
Government as a Funder
What funding opportunities might your company be missing simply because no one is looking? Government at all levels—federal, state, and local—offers financial incentives that can materially impact growth, expansion, and innovation. Yet many companies commit to locations or investments without ever evaluating what public support may be available.
Timing is critical. Exploring state and local incentives before signing a lease or purchasing property can unlock grants, tax abatements, and workforce development funding. Tools like Manufacturing.gov and state economic development programs provide starting points. However, building an internal process to identify and assess these options early is where real value is captured.
At the federal level, funding is often tied to national priorities. Agencies such as the Department of Energy and the Department of Defense offer funding for R&D, advanced manufacturing, and strategic technologies. The question is not simply, “Do we qualify?” It’s, “Are we positioning ourselves to lead in areas government is actively funding?”
Engaging with these programs requires structure and foresight, not size. A well-aligned GA function can ensure the business doesn’t just respond to funding announcements—it anticipates them.
Government as a Customer
At first glance, it might not seem like advocacy plays a meaningful role in government procurement. After all, the procurement process is governed by detailed rules designed to ensure fairness, transparency, and competition based on commercial factors.
So what role does government affairs play here?
The answer lies in appropriations. The federal government cannot spend funds unless those funds are first appropriated by Congress. Members of Congress are often supportive of appropriations that generate jobs or sustain existing ones in their districts. For companies that benefit indirectly from government procurement, this matters.
Your company may not sell directly to the federal government. However, if you produce components that end up in government-procured products—such as those used in defense, infrastructure, or energy—you may be more involved than you think. In these cases, it’s worth asking: Could we be helping our end customer advocate for continued or increased funding?
The answer is usually yes. For example, if your product is incorporated into a military aircraft, the manufacturer of that system may welcome, and sometimes actively request, your support in advocating for appropriations. Your manufacturing footprint, and by extension your congressional delegation, becomes part of their case. This isn’t about lobbying; it’s about strategic alignment. Advocacy becomes a customer service tool.
Can a small team do all that?
Government affairs functions are often small—especially within manufacturing and industrial companies. That raises a fair question: Can a lean GA team truly add value across all three dimensions—regulator, funder, and customer?
The answer is yes, but only if the role of the function is understood correctly. At its best, a GA team isn’t just a doer—it’s a teacher. Its greatest impact often comes not from owning every initiative, but from equipping the broader enterprise to engage effectively.
A single GA leader may not be able to secure appropriations, shape regulation, and capture incentives alone. However, they can enable others to do so. They can help real estate teams uncover incentive opportunities before site decisions are made. They can teach sales teams how to support their customers’ advocacy strategies. They can work with product leaders to add a regulatory lens to portfolio reviews. In each case, the value isn’t in controlling the process—but in embedding government awareness into existing decision-making.
At TGS Advisory, this is exactly the kind of structure we help companies build. We work with organizations to operationalize government affairs—not as an isolated function, but as a strategic capability woven across departments. Our clients don’t just react to government. They engage with it deliberately, efficiently, and measurably.
So as you evaluate the role of government affairs in your business, ask yourself: Are we seeing the full picture? Are we navigating all three dimensions? Are we structured to teach—not just to do?
When you make the shift from reactive to strategic, government becomes not just a challenge to manage—but a lever to pull.
That’s what it means to see government in 3D.