Category: Media

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”

Trump asks the question: Which do you like better Made in America or Made in the USA?

Trump asks the question: Which do you like better Made in America or Made in the USA?

 

9/11 Anniversary: America Remembers One of its Darkest Days

9/11 Anniversary: America Remembers One of its Darkest Days
Statue of Liberty and World Trade Center at Sunset, New York City, New Jersey, designed Minoru Yamasaki

Today, on the 9/11 anniversary, bells will toll and tears will flow as the nation marks a dark day in sorrowful yet hopeful ceremonies.

Continue reading “9/11 Anniversary: America Remembers One of its Darkest Days”

What it takes to be ‘Made in USA’

Athletic shoe maker New Balance says stamping Made in USA on its labels draws in customers

NEW YORK (CNNMoney) — With so much talk about the need to revive U.S. manufacturing and create jobs, more companies are touting their American-made roots in order to lure customers.

The notion that buying something made domestically will boost the economy has become an article of faith during the economic crisis. And many businesses are trying to capitalize on that by attaching a “Made in USA” label to their products.

Buying American-made goods has become personal, according to Dave Schiff, chief creative officer at Made Movement, a website that markets and sells only American-made products. Shoppers believe that supporting businesses that manufacture domestically could help them in return.

People are looking for “Made in USA” labels because they know that’s how jobs are created, he said. They think, “My son who is unemployed could benefit if I pay attention to a label. The economy at large gets a shot in the arm.”

But before a company can use the iconic label, it must comply with a complex set of rules that dictates its use.

The Federal Trade Commission has a dizzying 44-page rulebook that lays out the guidelines — and the specifics are enough to make your head spin.

For instance, domestically-made textiles, wool, fur or automobiles must, by law, have a “Made in USA” label. Companies aren’t required to disclose country of origin for most other products, but many choose to tout their American-made status in order to appeal to customers.

Companies looking for that boost from the label have to be able to prove that their final products are assembled or processed in the United States, according to the FTC. The agency doesn’t spot-check items that claim to be made in the United States, but it does investigate complaints.

Related: 7 hot Made-in-the-USA toys for the holidays

Of course, many manufacturers now rely on global supply chains, which makes it much harder to determine when a company can rightly make the claim. Regulators try to assess how much of a product’s total manufacturing cost comes from the United States.

For goods that have parts made in many different countries, the FTC relies on what it calls a “one step removed” rule. For instance, if a shirt is made with fabric from overseas, but sewn together in the United States, it can’t be labeled “Made in USA.”

But if a manufacturer uses U.S.-made fabric that is sewn together domestically using thread made overseas, it would be permitted to use the “Made in the USA” label.

Companies that can’t get all of their component parts domestically can use what the FTC calls qualified “Made in USA” claims, such as “Made in USA from imported parts” or “Assembled in the USA.”

Related: The manufacturing jobs boom is for real

While the distinctions may be minor, a failure to follow the rules can cost businesses a ton of money.

If the FTC finds a label to be deceptive, it can file a lawsuit and ask for a court-ordered fine or consumer redress. According to Matt Wilshire, an FTC staff attorney, fines go as high as $16,000 per mislabeled item sold, or for every day that the item was advertised.

“This could become a very large figure very quickly,” he said, citing one case that ended up costing a business nearly $400,000 in fines.

As costly as a labeling mistake could be, many feel like the regulations protect smaller businesses in the long run.

Brian Meck, who co-owns Fessler USA, a private-label manufacturer that makes clothing for retailers like Urban Outfitters (URBN), says that the regulations reward companies who pay higher costs to manufacture domestically by safeguarding the Made in USA claim. Without the rules, he said, big brands could benefit from the label while sourcing cheaper imported materials to cut costs, without anyone knowing the difference.

Meck also said that the regulations not only protect businesses, but also help consumers. “They give [consumers] the ability to know where their dollars are going and what they’re really supporting.”

For New Balance Athletic Shoe, which is the last U.S.- made athletic footwear brand, the pros of manufacturing domestically outweigh the drawbacks.

“From a cost perspective, you add different burdens — regulatory schemes, wage and benefits — compared to competitors,” said spokesman Matt LeBretton. “But the feedback that we get is pretty outstanding, so we do everything to make that continue to work.”

Source:http://money.cnn.com/2012/09/18/smallbusiness/made-in-usa-label/index.html

 

 

What Does the Future Hold for American Manufacturing?

The state of US manufacturing is likely to become a major campaign issue - Getty Images
The state of US manufacturing is likely to become a major campaign issue - Getty Images

Written by: BBC North America editor, Mark Mardell 

Drew Greenblatt is an enthusiast: proud of his company, Marlin Steel, and proud of the factory floor packed with state-of-the-art equipment.

I watch, fascinated, as a little white robot squeezes out a wire, putting kinks and bends in it as it emerges.

Then it hands it over to a slightly larger yellow robot, which holds it steady for a twist in the end before turning it over for another twist at the other end.

Oddly, I find this cutting-edge equipment rather cute and cartoonish.

The question is whether this endearing duo are merely the remnants of America’s industrial past or the sort of equipment that will make the USA world-beaters once again.

The factory floor space at Marlin Steel is being doubled and there is no doubt the company is doing well, prospering even, during the bad years. Continue reading “What Does the Future Hold for American Manufacturing?”

FDA Says Brazil’s Orange Juice Is Safe, But Still Illegal

 

Antonio Scorza/AFP/Getty Images Oranges for sale at a market in Rio de Janeiro.
Antonio Scorza/AFP/Getty Images Oranges for sale at a market in Rio de Janeiro.

NPR      by DAN CHARLES  February 22, 2012

If you happen to notice sometime later this year that you’re suddenly paying a lot more for orange juice, you can blame America’s food safety authorities. The U.S. Food and Drug Administration, after several weeks of deliberation, has blocked imports of frozen, concentrated orange juice from Brazil, probably for the next 18 months or so, even though the agency says the juice is perfectly safe.

The FDA’s explanation is that its hands are legally tied. Its tests show that practically all concentrated juice from Brazil currently contains traces of the fungicide carbendazim, first detected in December by Coca-Cola, maker of Minute Maid juices. The amounts are small — so small that the U.S. Environmental Protection Agency says no consumers should be concerned.

The problem is, carbendazim has not been used on oranges in the U.S. in recent years, and the legal permission to use it on that crop has lapsed. As a result, there’s not a legal “tolerance” for residues of this pesticide in orange products. Continue reading “FDA Says Brazil’s Orange Juice Is Safe, But Still Illegal”

How to Save U.S. Manufacturing Jobs

By Howard Wial @CNNMoney February 23, 2012: 5:34 AM ET

Howard Wial is a fellow for the Brookings Institution Metropolitan Policy Program.

At first glance, manufacturing jobs would appear to be a dying breed.

The United States lost 6 million manufacturing jobs between early 2001 and late 2009. And despite small gains during the last two years, the trend in manufacturing employment for the last 30 years has been downward.

That has led some to argue that long-term job loss in the industry is inevitable. But our research shows otherwise.

There are two common versions of the “inevitability” argument. One holds that U.S. manufacturing wages are too high to be internationally competitive. The other maintains that manufacturing job losses are the result of productivity growth. Both arguments are wrong. Continue reading “How to Save U.S. Manufacturing Jobs”