Category: Internet

Adam Reiser: Trump administration struggles to enforce ‘Buy American’ EO 13788

Nearly eight months after President Donald J. Trump signed his executive order “Buy American and Hire American,” an expert on certifying whether goods are made in the United States shared with Big League Politics the challenges in certification and enforcing Trump’s intentions.

 

 

 

Adam Reiser, the CEO and founder of Certified, Inc., told Big League Politics he is seeing no action in the executive branch to move the president’s executive order forward.

A source familiar with how the White House drafted the executive order told Big League Politics: “There are zero teeth in it, you know? Let’s of fanfare, lots of publicity, back-slapping and hand-shaking with Trump–and now, it is getting resisted, like as if it meant nothing.”

According to the president’s directive, all agencies were supposed to have turned into both the Department of Commerce and the Office of Management and Budget how they plan to comply. These plans are to include, searchable databases of certified vendors, storage arrangements for the documents and simplifications of their internal procurement procedures.

Reiser said Trump’s executive order was the president’s attempt to bring federal procurement back in synch with the law.

The Buy American Act of 1933 was signed by President Herbert Hoover the day before he handed over the White House to President Franklin D. Roosevelt. The Act was championed by Rep. Joseph W. Byrne, (D.-Tenn.), then the chairman of the House Appropriations Committee and later Speaker of the House.

Byrne’s idea was that given support by the Hearst newspapers and by Hoover’s Commissioner of Customs Francis F.A. Eble, who would go on to start the Buy American Club.

“The law says that the U.S. government has to show preferential treatment to U.S. manufacturers,” Reiser said. “It is so the government has to buy from its own.”

Reiser said that from the 1970s, the federal government has been providing waivers to the 1933 law. “In the 1980s and 1990s, it has picked up big-time.”

When the president signed Executive Order 13788, the White House was optimistic.

President Donald J. Trump holding his Executive Order 13788 at the April 18, 2017 Kenosha, Wis., signing ceremony. (White House photo)

A senior administration official speaking on background on Easter Monday, the day before the executive order was signed in the headquarters of the tool company Snap-On in Kenosha, Wisconsin, said the executive order would correct the abuse of the Buy American Act waiver process.

“Okay, so the culture immediately changes across the agencies.  We have a lax enforcement, lax monitoring, lax compliance,” the official said. Continue reading “Adam Reiser: Trump administration struggles to enforce ‘Buy American’ EO 13788”

Look Out China, US Manufacturing is Headed for No. 1

Look Out China, US Manufacturing is Headed for No. 1

Advanced manufacturing technologies are helping to push the United States back toward being the most competitive manufacturing nation in the world, according to a new survey of global CEOs and other senior executives. Continue reading “Look Out China, US Manufacturing is Headed for No. 1”

Is Made In America More Than Just Hype?

IS 'MADE IN AMERICA' MORE THAN JUST HYPE. Made in USA Jeans, Made in USA shoes
A L.L. Bean shipping center in Freeport, Maine. Photo: Joe Raedle/Getty Images

As the media tells it, American-made goods are having a “moment.” But the numbers tell a different story. Continue reading “Is Made In America More Than Just Hype?”

U.S. Demands China Block Cyberattacks and Agree to Rules

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Reposted from The New York Times

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Mark Landler and David Sanger  |  March 11, 2013  |  The New York Times

WASHINGTON — The White House demanded Monday that the Chinese government stop the widespread theft of data from American computer networks and agree to “acceptable norms of behavior in cyberspace.”

The demand, made in a speech by President Obama’s national security adviser, Tom Donilon, was the first public confrontation with China over cyberespionage and came two days after its foreign minister, Yang Jiechi, rejected a growing body of evidence that his country’s military was involved in cyberattacks on American corporations and some government agencies.

The White House, Mr. Donilon said, is seeking three things from Beijing: public recognition of the urgency of the problem; a commitment to crack down on hackers in China; and an agreement to take part in a dialogue to establish global standards.

“Increasingly, U.S. businesses are speaking out about their serious concerns about sophisticated, targeted theft of confidential business information and proprietary technologies through cyberintrusions emanating from China on an unprecedented scale,” Mr. Donilon said in a wide-ranging address to the Asia Society in New York.

“The international community,” he added, “cannot tolerate such activity from any country.”

In Beijing, a spokeswoman for the Chinese Foreign Ministry, Hua Chunying, did not directly say whether the government is willing to negotiate over the proposals spelled out by Mr. Donilon. But at a daily news briefing Tuesday she repeated the government’s position that it opposes Internet attacks and wants “constructive dialogue” with the United States and other countries about cybersecurity issues.

Until now, the White House has steered clear of mentioning China by name when discussing cybercrime, though Mr. Obama and other officials have raised it privately with Chinese counterparts. In his State of the Union address, he said, “We know foreign countries and companies swipe our corporate secrets.”

Continue reading “U.S. Demands China Block Cyberattacks and Agree to Rules”

Made in the USA: More Consumers Buying American

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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.

Continue reading “Made in the USA: More Consumers Buying American”

It’s Cool Again to be ‘Made in America’

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Advertising Age the new emerging market

Domestic Goods Are All the Rage — But Are They Good for the Bottom Line?

By:  Published: February 18, 2013

Not since the 1970s has “Made in America” been such a hot way to market your product.

On one end is Walmart‘s promise to buy an additional $50 billion in U.S.-made merchandise over the next decade; on the other are designers touting investments in New York’s shrinking garment district as a way to justify higher prices.

At the Financial Times’ New York Conference last month, Brunswick Group executive Susan Gilchrist said that Made in America is “not just about the PR opportunities. Purely from an economic view, China is losing its cost advantage.”

In 2001, the average hourly wage in China was 58¢, according to data from the Boston Consulting Group. By 2015, it will be $6. Combine that with the high productivity of American manufacturers and low energy costs, and the cost gap will close for most categories of goods to just 7% by 2015.

It’s making more business sense to manufacture in the U.S. But does it make marketing sense as the focus of a brand’s message?

In a September survey of more than 1,000 Americans by the Boston Consulting Group, more than 80% said they preferred U.S.-made goods, and that they would pay more for said goods. The same questions were asked of 1,000 Chinese consumers: 47% prefer Made in America.

Yet actions and sentiment are two different things: It often comes down to quality vs. a deal. When American-made goods deliver both, it works. “Consumers are starting to make a different tradeoff,” says Harold Sirkin, senior partner and managing director at BCG and author of the study. “Retailers are able to sell goods at a slight premium, but not too much.”

The push has support from celebrities such as Martha Stewart and Jay-Z. And American manufacturing is the raison d’etre of year-old ad agency Made Movement.

“Made in America will succeed for the same reason organic has succeeded,” said Dave Schiff, a founder of the shop. “Just like people didn’t want to eat food that was poisoning them, they want to live in a better economic climate.”

Made in America is nothing new for some brands. New Balance, American Apparel, Red Wing and Pendleton have been producing in the U.S. for years.

Others are making a push to sell more U.S.-made products. Apple recently announced it would bring some Mac production back to the U.S. And apparel brands like Club Monaco have launched lines and products marketed specifically as “Made in the USA.”

Walmart, meanwhile, sells more than $400 billion of goods each year, so some analysts say its commitment is meaningless when it comes to the bottom line. But Walmart spokesperson Randy Hargrove said that two-thirds of its products are “made here, sourced here, or grown here.” Most of that, of course, is food — Walmart is the nation’s largest grocer. This new batch of funds will help create jobs in areas where Walmart typically spends overseas, such as apparel, sporting equipment and furniture.

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To learn more about Made in USA Certification: http://www.USA-C.com

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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.

Continue reading “Barron’s Made in America: The Next Boom”