Made in the USA: More Consumers Buying American

Chris Rank | Bloomberg | Getty Images

A curious thing is happening among American shoppers. More people are taking a moment to flip over an item or fish for a label and ask, is it “Made in the USA?”

Walmart, the nation’s largest retailer, earlier this year announced it will boost sourcing of U.S. products by $50 billion during the next 10 years. General Electricis investing $1 billion through 2014 to revitalize its U.S. appliances business and create more than 1,500 U.S. jobs.

Mom-and-pops are also engineering entire business strategies devoted to locally made goods — everything from toys to housewares. And it’s not simply patriotism and desire for perceived safer products which are altering shopping habits.

The recession, and still flat recovery for many Americans, have created a painful realization. All those cheap goods made in China and elsewhere come at a price — lost U.S. manufacturing jobs. A growing pocket of consumers, in fact, are connecting the economic dots between their shopping carts — brimming with foreign-made stuff — and America’s future.

They’re calculating the trade-offs of paying a little more for locally-made goods.“The Great Recession certainly brought that home, and highlighted the fact that so many jobs have been lost,” said James Cerruti, senior partner for strategy and research at consulting firm Brandlogic. “People have become aware of that.”

“‘Made in the USA’ is known for one thing, quality,” said Robert von Goeben, co-founder of California-based Green Toys. All of their products from teething toys to blocks are made domestically and shipped to 75 countries.

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“Buying American” Generally Matters More to Women Than Men

Harris Importance of Buying American March 2013 woman

A majority of American adults believe that it is important to “buy American” across a variety of product types, according to results from a Harris Interactive survey, even if the definition of what constitutes an “American” product is not universally shared by respondents. Interestingly, while there were few gaps in the importance placed on “buying American” among Republicans and Democrats responding to the survey, women were more likely than men to feel it more important for each product category identified.

For example, women were:

  • 11% more likely to consider “buying American” important when purchasing major appliances (79% vs. 71%);
  • 10% more likely to consider it important for furniture purchases (78% vs. 71%);
  • 15% more likely to place importance on this factor when buying clothing (77% vs. 67%);
  • 14% more likely to find it important for car purchases (74% vs. 65%); and
  • 20% more likely to consider it important when buying home electronics (72% vs. 60%).

On each count, 18-35-year-olds were significantly less likely than any other generation to believe that “buying American” is important to them.

The survey finds that the definition of what constitutes “buying American” isn’t universally agreed upon. Three-quarters agree that a product needs to be manufactured within the US for them to consider it “American,” while a slight majority believe that it needs to be made by an American company for them to consider it “American.” Close behind, 47% agree that a product needs to be made from parts produced in the US for them to consider it “American.”

As the researchers note, the company perceived by respondents to be the most “American” – Ford – increasingly has cars which include parts produced abroad. Other companies showing up in the most “American” list – such as GE and Levi Strauss – also outsource some of their operations overseas.

Regardless of the extent to which these companies’ products meet consumer definitions, “Made in America” packaging can influence consumers. A study released last year by Perception Research Services found that about 8 in 10 shoppers notice “Made in the USA” claims in packaging, and about three-quarters of those believe that such claims make them more likely to buy the product.

According to the Harris survey results, the most commonly-cited important reasons for “buying American” are to keep jobs in America (90%), to support American companies (87%), and due to quality (83%) and safety (82%) concerns with products assembled outside of the US.

About the Data: The Harris Poll was conducted online within the United States between December 12 and 18, 2012 among 2,176 adults (aged 18 and over). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online.

Data for the “What company do you consider to be most ‘American’” question was conducted online within the United States between January 2 and 4, 2012 among 2,126 adults (aged 18 and over). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online.

Source: http://www.marketingcharts.com/wp/topics/automotive/buying-american-generally-matters-more-to-women-than-men-27559

 

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Woolrich counts on ‘Made in the USA’ product strategy

woolrich

How refreshing.

How bold.

That’s our initial reaction to the announcement last week by Nicholas Brayton, president of Woolrich Inc., that the over 180-year-old company headquartered in the quaint village of Woolrich since 1830 plans to introduce a 100-percent, American-made apparel collection this coming fall.

Not that Woolrich hasn’t done this before.

But if ever there was a time when American consumers need to rally around a company that has decided to bring some of its overseas apparel manufacturing back home, it is now.

In a letter to all of Woolrich’s customers, vendors and employees, Brayton announced Woolrich also will:

- Increase the yardage of wool produced in the woolen mill in Woolrich by 50 percent this year.

- Increase the firm’s American-made product offerings by 2015, ensuring that more than 50 percent of Woolrich woolen garments “proudly include American made wool.”

“In the coming months, for Woolrich to set and accomplish these goals, it’s going to take more than a company commitment. It’s going to take support from our loyal customers as well,” he said.

Details, we’re told, will be forthcoming as The Express has asked for a direct sit-down with Mr. Brayton to discuss and then report Woolrich’s ambitious plans so far as the privately held company is willing to reveal them.

Dear readers, if you missed Mr. Brayton’s letter published here last week, his words should be revealing and, honestly, quite profound to you in an age when many U.S.-based manufacturing companies have their products made on foreign land to reduce costs.

That has, over the past several decades, taken jobs from Americans.

Woolrich has been no exception.

Faced with a tough sales environment and working to cut costs to remain (as Mr. Brayton said) “relevant, competitive and solvent,” Woolrich has, in recent months, reduced its employee numbers and moved its design team from its local headquarters to the fashion capital of New York City.

Licensing its brand and various products has been a lifeline created with its licensing partner, the Italian firm of WP Lavori. Federal contracts to provide apparel and blankets to the U.S. military also have played a key role.

It’s a darn shame Americans aren’t more loyal to “Made in the U.S.A.” products.

They profess they are, but when they walk into a store, well, the sale of imported products show otherwise.

“In today’s world, the hard reality is that making things here is hard to do,” Mr. Brayton said.

Bringing more wool to the local mill should breathe new life into the longest, continuously running woolen mill in the U.S., which has been operating with a skeleton crew.

Among other things, Woolrich must ramp up marketing of its American-made apparel line of men’s and women’s outerwear and, perhaps, sportswear – something that can be very costly.

It should be a risk worth taking.

The “Original Outdoor Clothing Company” has among the most famous brands in the world, born when John Rich traveled from camp to camp in a mule cart during the great logging era of Central Pennsylvania to sell woolen fabric to loggers and their wives to make clothing.

Woolrich Inc, the “iconic American institution with a heritage that spans over 180 years,” is proudly “eager to begin writing the next chapter of the American manufacturing story.”

 

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source:http://www.lockhaven.com/page/content.detail/id/543349/Woolrich-counts-on–Made-in-the-USA–product-strategy.html?nav=5004

Barron’s Made in America: The Next Boom

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By: KOPIN TAN Barron’s JANUARY 2013

Barron's Made in America

Photo: Barron’s John Kuczala

Cheap natural gas and increasingly competitive labor costs are bringing factories and jobs back to the U.S. Eight ways to win.

 As the only industrialized superpower not decimated by World War II, the United States once made nearly 40% of the planet’s goods. These days, that number has shrunk to 18%. We make American Girl dolls in China, Levi’s jeans in Mexico, and enough movies in Vancouver to nickname it Hollywood North.

After decades of outsourcing, however, the U.S. is quietly enjoying a manufacturing revival, and companies like Apple (ticker: AAPL), Caterpillar (CAT), Ford Motor (F),General Electric (GE), and Whirlpool (WHR) are making more of their goods on American soil again. It isn’t just U.S. companies that are drawn to our cheap energy, weak dollar, and stagnant wages. Samsung Electronics (005930.Korea) plans a $4 billion semiconductor plant in Texas, Airbus SAS is building a factory in Alabama, and Toyota (TM) wants to export minivans made in Indiana to Asia.
The Rust Belt owes its new shine to many factors, including rising wages and industrial-land costs in Asia. But none is bigger than the U.S. energy boom. Thanks to a head start in extracting oil and gas from shales, North America now produces far more natural gas than any other continent. Unlike oil, gas isn’t easily transported across oceans, and a result is some of the world’s cheapest energy within our reach: Natural gas here costs $3.55 per million British thermal units, versus roughly $12 in Europe and $16 in Japan. Cheap energy not only reduces our trade deficit and our addiction to Middle East oil, it also makes our factories more competitive globally — a boon for a country that had gone from exporting American goods to exporting American jobs.The biggest beneficiaries are energy-guzzling companies like chemical producers and steelmakers, and Barron’s has identified eight stocks that should prosper in our gas-fueled manufacturing upswing. They are Southwestern Energy, LyondellBasell Industries, Nucor, Dover, Calpine, CF Industries, Williams, and Union Pacific. But any glow will also rub off on regional lenders, home builders, and local small businesses. “The U.S. is the Saudi Arabia of natural gas,” declares Nancy Lazar, co-head of the New York research firm International Strategy & Investment. “And Middle America is my favorite emerging market.”

Our energy boom got cracking with fracking, a controversial process in which pressurized fluids are pumped through rock formations, often a mile or more under the ground, to extract oil and gas. Critics condemn fracking, which they contend causes environmental harm, but even they agree that it’s led to an abundance of cheap gas. Over the past six years, U.S. production of petroleum and natural gas has jumped from 15 million barrels of oil-equivalent a day to 20.1 million, a 20-year high. Over the same period, imports have fallen from 14 million barrels a day to below eight million, a 25-year low.

It’s a sign of the times: Graduates from the South Dakota School of Mines & Technology — acceptance rate: 88%; mascot: Grubby the Miner — now command a median starting salary 16% higher than that of Yalies.

By 2020, the U.S. will become the world’s biggest oil producer, says the International Energy Agency. By 2025, North America will be a net energy exporter, predicts ExxonMobil (XOM).

That edge should remain ours for decades. “It isn’t just the huge reserves we have underground,” says Tim Parker, who manages T. Rowe Price’s natural-resource stock portfolios. “No one else has our predictable cocktail of infrastructure already in place, know-how, a relative abundance of water, and a favorable royalty regime that give landowners a stake in the exploration game.” Europe, for instance, is averse to fracking and has little infrastructure; Japan has hardly any shales; and while China has vast reserves, only shales nudging the Yangtze River have enough water for fracking.

Of course, an especially frigid winter could send gas prices soaring, but any such spike should be temporary. Given our expanding reserves and record inventory, commodity strategists expect U.S. natural gas to stay between $3 and $5 per million BTUs for years — well below prices abroad.

CHEAP GAS ISN’T THE ONLY booster in our tank. In the decade since China joined the World Trade Organization in 2001, that nation has become Earth’s low-cost factory. But wages and benefits there are rising 15% to 20% a year, while they’re stagnant here. Despite Beijing’s efforts to hold it down, the yuan has gained 33% against the dollar since 2005. Industrial land averages $10.22 a square foot across China, but rises to $11.15 in the coastal city of Ningbo and $21 in Shenzhen — compared with $1.30 to $4.65 in Tennessee and North Carolina. “Within five years, the total cost of producing many products will be only about 10% to 15% less in Chinese coastal cities than in parts of the U.S. where factories are likely to be built,” says Hal Sirkin, a senior partner at Boston Consulting Group. Add duties and shipping, and the cost gap shrinks further.

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Made in U.S.A. supplier summit coming soon

Retailing Today Magazine

January 17, 2013 | By Mike Troy

The first indication that something big was brewing with Walmart on the domestic sourcing front came last week.

That’s when Walmart announced internally at that SVP of home, Michelle Gloeckler, would assume additional responsibilities for a new U.S. sourcing and manufacturing initiative. Reporting to Gloeckler is Greg Hall who was named vp of U.S. sourcing and manufacturing after previously serving as vp of marketing for Walmart.com.

For complete article Source: http://www.retailingtoday.com/article/made-usa-supplier-summit-coming-soon

USapparel.com is for SALE!

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The U.S. apparel market is soaring to new heights with a clear resurgence of the American textile and garment industry.

Now for the 1st time in many years USapparel.com is for sale. A great opportunity for a large retailer or american manufacturer to obtain a high profile domain name.

Great marketing opportunity as the brand is well positioned for the #MadeinUSA movement in apparel. Recently, Walmart announced a $5 Billion commitment over the next 10 years to domestic sourcing. This is a great opportunity for one American brand.

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Quote: USapparel.com is the single most powerful domain name in defining a category, USA manufactured apparel, which is surging in America.  Americans want products made at home and US manufacturing is responding.  USapparel.com represents a multi-billion dollar industry which is only getting bigger.  USapparel.com tell consumers that you support American Made clothing.

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FLOTUS, First Daughters wear ‘Made in USA’ designers on Inauguration Day

First lady Micehlle Obama arrives on the West Front of the Capitol in Washington, Monday, Jan. 21, 2013, for the Presidential Barack Obama’s ceremonial swearing-in ceremony during the 57th Presidential Inauguration. (AP Photo/Win McNamee, Pool)
POSTED: Monday, January 21, 2013, 10:36 AM
Esther Lee, Philly.com

On the Roy G. Biv scale, the Obama family dominated the color spectrum in blues, indigos and violets Monday morning.

First Lady Michelle Obama stunned in a custom-designed, navy Thom Browne jacquard dress and coat, while her daughters dazzled in bright purple ensembles on Inauguration Day.

Thom Browne, a relatively obscure New York-based designer who grew up in Allentown, generated a tremendous amount of buzz within the realm of fashion and beyond after FLOTUS stepped out in his designs Monday. Although Browne, the brother of Pa. State Senator Pat Browne, is recognized largely for his contributions to menswear, the designer launched his womenswear line in 2011. Evidently, the President’s wife wearing his creation on Inauguration Day is a significant step forward in the women’s department for the designer. The two initially met at the Cooper-Hewitt National Design Museum awards in July 2012. Michelle Obama has since worn Thom Browne items to mark other public events.

The designer told the New York Times‘ Eric Wilson, “It’s one of those moments when I just can’t believe that happened.” The Today show’s Savannah Guthrie admitted she did not know who Browne was, although fans of the First Lady’s style will be well-acquainted with him soon.

As for the inspiration behind the outfit? Her coat – specifically the fabric – was created based on a man’s silk tie. Browne, who debuted his menswear line in Paris this weekend, told CNN‘s Alina Cho that he chose dark blue for the First Lady because he was “mindful POTUS might also wear navy.” Largely recognized for his menswear collections, Browne discovered that the First Lady had worn his designs Inauguration Day thirty minutes after viewers first spotted the Obama family at 9 a.m. The Inauguration went down one day after Browne caused fashion ripples in Paris where he debuted his Fall/Winter menswear line.

A fan of preppy American label J.Crew, FLOTUS linked the brand into her ensemble with her belt and shoes as she walked into St. John’s Church for a service earlier that morning. Regarding Obama’s use of the belt layered over the coat, J.Crew creative director Jenna Lyons told WWD, “It looks great. I hope Thom is alright with it.” The source of her lush, leather clover gloves were also a product of J.Crew – in good company with Italian luxury brand Portolano. As of Monday afternoon, the Valentina patent pumps werestill in stock on jcrew.com. The exact pair of gloves were nowhere to be found on the brand’s website, although interested buyers are recommended to scour auction websites like eBay.

She paired the outfit with a necklace by Cathy Waterman, while her cardigan was designed by another American designer – Reed Krakoff – whose creations she selected for Sunday’s swearing-in ceremony. The First Lady later swapped into boots later that morning, which were also designed by Krakoff according to a White House official.

Meanwhile, “Rosebud” Malia also wore an outfit from J.Crew, while her sister Sasha, Secret Service code named “Radiance,” wore a dress and coat from Kate Spade. Deborah Lloyd, creative director of Kate Spade New York told AP, “[Sasha] epitomizes the youthful optimism and colorful spirit of the brand. We are so proud to have been a part of this historic moment.” Lyons shared with Wilson that Malia’s coat was off the rack. Her buttons were customized for the affair. “You can see how the girls have grown up in the four years, and they’re still so alive and vibrant, but more sophisticated,” Lyons shared enthusiastically with the same media outlet.

As for their father, the President stepped outdoors in a blue tie, white shirt and dark suit, beneath the exact same Brooks Brothers overcoat he wore when he took the oath in 2009, WWD reports. Four years ago, the First Lady wore a sparkly yellow coat and dress by Isabel Toledo. Michelle Obama is a champion of consciously and thoughtfully selecting American designers to help raise their profiles.

Known for repeating outfits, she is unable to recycle this gem of a dress and coat. Her complete ensemble, including the accompanying accessories, will go to the National Archives.

Source: http://www.philly.com/philly/blogs/hautehouse_row/FLOTUS-First-Daughters-wear-Made-in-USA-designers-on-Inauguration-Day.html

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Wal-Mart warns suppliers on stricter measures

Made in Bangladesh

Associated Press
This photo illustration made Wednesday, Dec. 12, 2012, shows the label of a garment made in Bangladesh displayed outside the Wal-Mart store where it’s sold, in Atlanta. Wal-Mart Stores Inc. is alerting its global suppliers that it will immediately drop them if they subcontract their work to factories that haven’t been authorized by the discounter. (AP Photo/David Goldman)

By ANNE D’INNOCENZIO The Associated Press

BENTONVILLE, Ark. —

Wal-Mart Stores Inc. has alerted its global suppliers that it will immediately drop them if they subcontract their work to factories that haven’t been authorized by the discounter.

Wal-Mart’s stricter contracting rule, along with other changes to its policy, comes amid increasing calls for better safety oversight after a deadly fire at a Bangladesh factory that supplied clothing to Wal-Mart and other retailers. The fire in late November killed 112 workers at a factory owned by Tazreen Fashions Ltd. Wal-Mart has said the factory wasn’t authorized to make its clothes.

In a letter sent Tuesday to suppliers of its Wal-Mart stores as well as Sam’s Clubs in the U.S., Canada and the United Kingdom, the company says it will adopt a “zero tolerance” policy on subcontracting without the company’s knowledge, effective March. 1. Previously, suppliers had three chances to rectify mistakes.

Wal-Mart also said it plans to publish on its corporate website a list of factories that haven’t been authorized to manufacture goods for Wal-Mart.

Also, starting June 1, suppliers must have an employee stationed in countries where they subcontract to ensure compliance, rather than relying on third-party agents.

“We want the right accountability and ownership to be in the hands of the suppliers,” said Rajan Kamalanathan, Wal-Mart’s vice president of ethical sourcing, said in an interview with The Associated Press. “We are placing our orders in good faith.”

Wal-Mart will hold a meeting for clothing suppliers from the U.S. and Canada on Thursday to explain the new policy changes.

Kamalanathan said Wal-Mart is looking to create a fund that factories can tao to improve safety, but that is still in discussion. But he also said local governments and other suppliers and retailers have to do their part in boosting factory safety.

Critics quickly dismissed Wal-Mart’s moves as inadequate and said that the retailer needs to do more.

“It shows that Wal-Mart is feeling a great deal of pressure in the wake of public scrutiny,” said Scott Nova, executive director at Workers’ Rights Consortium, a labor-backed advocacy group. But he noted the company’s response isn’t adequate unless Wal-Mart and others pay their suppliers more so they can cover the costs of repairs.

“The upfront commitment from brands and retailers is essential if we are going to see real change,” Nova added.

Nova’s group is one of several organizations trying to get retailers and brands to sign a first-of-its-kind contract that would govern fire-safety inspections at thousands of Bangladeshi factories making T-shirts, blazers, and other clothes Americans covet.

The contract would call for companies to publicly report fire hazards at factories, pay factory owners more to make repairs and provide at least $500,000 over two years for the effort. They would also sign a legally binding agreement that would make them liable when there’s a factory fire.

PVH Corp., a New York City-based company that sells the Calvin Klein and Tommy Hilfiger brands, last March signed the agreement after a national TV news report that chronicled the dangerous conditions in one of its Bangladesh factories. But PVH pledged to start the program only if at least three other major retailers sign on. So far, only one has: A German coffee chain named Tchibo that also sells clothes. Nova said that his organization is in discussion with other retailers.

Wal-Mart says it has no plans to sign on to the contract. Brooke Buchanan, a Wal-Mart spokeswoman, says that the company can make a “positive impact on our global supply chain by both by raising our own standards and by partnering with other stakeholders to improve the standards for workers across the industry.”

Nova also noted that Wal-Mart needs to disclose a list of all the suppliers it currently works with so they can be monitored by independent groups. It also needs to disclose the results of all its factory inspections.

Richard Locke, head of political science at MIT and an expert in global supply chains, said that Wal-Mart also needs to re-evaluate its purchasing practices so its demands are not putting excessive pressure on factories to cut corners on safety. It also needs to provide better technical assistant training for factories so they can run their businesses better.

Wal-Mart ranks second behind Swedish fast fashion retailer H&M in the number of clothing orders it places in Bangladesh. Before the fatal fire there, Wal-Mart had taken steps to address safety, such as mandating fire safety training for all levels of factory management.

Building fires have led to more than 600 garment work deaths in Bangladesh since 2005, according to research by the advocacy group International Labor Rights Forum.

Copyright The Associated Press

All American Clothing Co. Finishes Record Setting Year In 2012

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The All American Clothing Co. has survived a clothing industry that has lost -84% of its labor force since 1995 as according to the U.S. Bureau of Labor Statistics.

The All American Clothing Co. announced today that the company has experienced another record year. In 2012 the USA made clothing company’s annual revenue increased 20% as compared to 2011. This marks the company’s tenth straight year of solid growth. A great sign for American manufacturers in today’s economy.

Due to its success the All American Clothing Co. has moved from a 5,000 square foot facility to a 55,000 square foot facility, doubled the amount of its inventory, and has created many new jobs at their headquarters. The American made clothing company now looks forward to a new year full of surprises in 2013 as they continue to grow and create jobs for American citizens.

About All American Clothing Co.

Lawson Nickol founded the USA Made clothing company in 2002 with a goal to make a difference. His dream was to support USA families and jobs by producing high-quality clothing in the USA at an affordable price. He founded the company with the help of his son BJ and wife Mary Ann Nickol. Together, the Nickol family started their company in the USA to provide jobs and a tax base that ultimately supports communities across the United States.

The All American Clothing Co. has overcome many obstacles to chase the American Dream. The All American Clothing Co. has survived a clothing industry that has lost -84% of its labor force since 1995 as according to the U.S. Bureau of Labor Statistics. The trend of outsourcing has made it tough on the company to compete with companies like them. The recession has kept consumers tight to their wallets and the American economy has been weak. These factors had the odds stacked against the success of the All American Clothing Co. But, with the help of many American Made supporters the has company pushed on.

Today, the Nickol family’s dream holds true. The All American Clothing Co. continues to grow and succeed by selling quality USA made clothing at an affordable price. The company and its supporters continue to create jobs and make a difference. Visit http://www.allamericanclothing.com or follow them onFacebook to help make a difference.

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Obama Push on Advanced Manufacturing Stirs Economic Debate

In a White House switch, pro-manufacturing advisers have the ear of the president.

Jobs plan: President Obama addressing manufacturing workers in 2012.

Before a packed arena at the national convention of the Democratic Party in September, Barack Obama outlined a vision for America’s economic recovery with manufacturing as its engine.

“After a decade of decline, this country created over half a million manufacturing jobs in the last two-and-a-half years,” Obama told the cheering crowd in Charlotte, North Carolina. “If we choose this path, we can create a million new manufacturing jobs in the next four years.”

To fulfill those promises, the White House is turning to an economic tool not seen in Washington for years: industrial policy.

Emboldened by a new cadre of advisors, the Obama administration has proposed policies to boost domestic manufacturing involving tax breaks, new R&D spending, and vocational training of two million workers including around advanced technologies like batteries, computing, aerospace, and robotics.

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