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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” →

Labor, Made in America, Made in USA, Media, NAFTA/CAFTA, U.S. Jobs Project

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?

 

Aerospace, Apparel, Automotive, Business, Economy, Jobs, Made in America, Made in USA, Manufacturing, Outsourcing, Power of Consumers, Technology, U.S. Jobs Project

US Manufacturing Races Against ‘Biological Clock’

Moneynews Logo

By Michael Kling

Updated By Adam Reiser

John Ratzenberger on FOX NEWS Neil Cavuto

http://video.foxbusiness.com/v/3974724693001/john-ratzenberger-on-trade-schools-as-college-alternative/?#sp=show-clips

The lack of young people entering the manufacturing field threatens the future of the U.S. manufacturing renaissance, warns a new study.

Older workers, who dominate manufacturing, are leaving the work force in droves, but few young people are entering the field to replace them, according to the study from information and technology company ThomasNet.com. The study included responses from 1,209 engineers and purchasing agents, business owners and managers and sales and marketing executives from manufacturers, distributors and service companies.

Over three-fourths of manufacturing employees are 45 and older, the survey indicates.

“With Generation Y (18 to 32 years old) expected to make up 75 percent of the work force by 2025, and older employees exiting in droves, manufacturing’s ‘biological clock’ is ticking away,” the report notes.

Yet most manufacturers show a lack of urgency to fill their pipeline with skilled workers.

Three-quarters of companies surveyed say 25 percent or less of their work force are in the Generation Y age group. While 29 percent say they will increase employment of Generation Y workers in the next two years, almost half expect their numbers to stay the same.

Manufacturers say negative perceptions about work in their industry prompts young people to avoid the sector. But instead of being dirty, boring work, modern manufacturing is a high-tech world of computer-aided design and production. Half of survey respondents say a career in their industry provides satisfaction as well as competitive wages and benefits.

The shortage of skilled workers comes at a time when the industry is rebounding. Over half of manufacturers grew in 2012 and nearly two-thirds expect to grow this year. Nearly seven out of 10 will introduce new products this year.

“Considering that many companies (42 percent) are increasing employee headcount this year, the time to cultivate a new work force is now,” the study stresses.

Lack of basic skills in young workers is a drawback.

Manufacturers are developing partnerships with schools to help improve training and increase their emphasis on science, technology, engineering and mathematics. “The jury is out on whether these efforts alone will be enough,” the study says.

The United States is well-positioned to revitalize its manufacturing sector, says Philip Odette, president of Global Supply Chain Solutions, in an article for ManufacturingNet, an industry news site.

“The only thing missing is enough skilled workers to maintain the momentum.”

Companies must work to educate young people about the advantages of a career in manufacturing, he explains.

“Even something as simple as recording yourself demonstrating a process can boost the credibility of your company and increase its presence in the minds of students and teachers in your local area,” he advises. “Videos of new equipment or an impressive process don’t have to be reserved to sales pitches — they can be investments in attracting a new work force.”

Source: http://www.moneynews.com/Economy/manufacturing-skill-workers-US/2013/11/07/id/535317

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American Refining Group, Inc. is First Oil Refinery in the U.S.A. to Become Made in USA Certified®

Made in USA Certified® proudly grants Certification to American Refining Group, Inc. in Bradford, Pennsylvania, the birthplace of the U.S. domestic oil industry more than 100 years ago.

american refining

BRADFORD, Pa.–(BUSINESS WIRE)–October 14, 2013

American Refining Group, Inc. has successfully completed the Made in USA Certified proprietary supply chain audit process and is the first oil refinery to be granted license to use the Made in USA Certified® Seal for the following products: Brad Penn® Lubricants, Kensol® Naphthas and Distillates and Kendex® Base Oils, Custom Blends, Waxes and Resins.

American Refining Group, Inc, a privately owned facility, is situated on approximately 131 acres in Bradford, Pennsylvania, McKean County and the birthplace of the U.S. domestic oil industry over 100 years ago. The refinery has a rated capacity of 11,000 barrels/ day processing 100% Pennsylvania Grade Crude. This type of crude is available domestically and American Refining Group purchases the majority of their crude from sources in Pennsylvania, Ohio, New York, and West Virginia. It is the oldest continuously operated lube oil refinery in the world. They strive to supply their customers with consistent quality products and flexibility in working together, delivering the highest quality service.

American Refining Group’s stocks are converted into high quality waxes, lubricant base oils, gasoline and fuels, as well as a wide variety of specialty products. American Refining Group’s state-of-the-art blending and packaging facilities have the capability of producing a full spectrum of finished lubricant products. These products are available in a broad range of package sizes including bulk and these products can be delivered either by rail and/or truck. Our total commitment to quality is proven through our packaging plant and refinery being ISO 9001:2008 certified and Made in USA Certified.

Director of Marketing for American Refining Group, Roy Sambuchino states, “We felt that it was important to become Made in USA Certified to be able to distinguish our products as being truly “Made in USA” which is a strong part of our heritage and something our customers value. The Made in USA Certified seal gives our consumers added assurance in their purchases.”

Made in USA Certified’s Co-Founder & President, Julie Reiser stated, “The Bradford refinery was founded in 1881 at the height of the domestic oil boom and is the oldest continuously operating lube oil refinery in the world. Oil refinement in the USA is a critical piece of our Nation’s past, present and future. We congratulate this historic company on their on-going innovation and the good paying jobs they create for hard working Americans in the Bradford, Pennsylvania region. We are proud to certify ARG’s select line of products.”

Made in USA Certified® is the only Registered “Made in USA Certified” Word Mark with the U.S. Patent and Trademark Office and is the leading non-partisan, independent third party, certification company for the “Made in USA”, “Product of USA”, “Grown in USA” or “Service in USA” claims. The USA-C™ Seals show that a company bearing these trust marks has gone through a rigorous supply chain audit to verify compliance with our strict certification standards. Together, We Create Jobs in the USA!

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Manufacturers and businesses struggle to find skilled workers
Skilled Workers
Job seekers attend a Career Source mixed-industry job fair at the Holiday Inn in Somerville on Nov. 27, 2012.

BOSTON — Dozens of people walked around a recent Somerville job fair handing out resumes. There was Jim Lundy, 53, an English teacher with a Ph.D. and 30 years of experience. When he could not find a teaching job, he started a business that sells used blue jeans, but has been unsuccessful. There was Isabel Sendao, 38, who lost her job in marketing and sales a year and a half ago and is keeping current on the latest technology while interviewing for jobs. There was Sandy Carr, 51, who worked at non-profit and social service jobs for three decades. She was laid off when a medical billing firm went under and has been doing temporary and contract work until she can find something full-time.

“Job searching’s a constant thing to be doing these days,” Carr said.

At the same time, there are businesses in Massachusetts looking for workers. Denise Petersen, who works in human resources for B&E Precision Aircraft Components in Southwick, said her company is looking for computer numerically controlled machinists and burr hands, a type of skilled laborer. The company is competing with other local tool companies and having a hard time finding workers with the necessary skills. “As experienced or skilled workers leave, it’s getting more difficult to find people in those areas that have experience,” Petersen said.

The “skills gap” is a fact of life in the recovering economy. Jobs are opening up and workers are seeking them. But the unemployed workers do not always have the same skills that employers are looking for. In some cases, industries have shifted during the recession, some recovering faster than others. In other cases, the recession actually delayed the skills gap, as older workers pushed off retirement. With the recovery, some of those workers are preparing to leave.

Continue reading “Manufacturers and businesses struggle to find skilled workers” →

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Is Apple Prepping a ‘Made in USA’ Boom?

It could hinge on whether it picks Intel to make more chips for it

Dec 4, 2012, 9:42 am EST  |  By Brad Moon, InvestorPlace Contributor

Two potentially huge Apple (NASDAQ:APPL) items hit the radar in quick succession over the past few days.

First came rumors that the company was in talks with Intel (NASDAQ:INTC) to replace Samsung as the processor supplier for its mobile devices. Then, as the first shipments of Apple’s new iMac PCs arrived, reports rolled out that at least some of them bore an “Assembled in USA” sticker. CEO Tim Cook rose to prominence at Apple for moving production to China, but could the company be on the verge of a shift back to “Made in America?”

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If Intel manages to score the coup of becoming the chip supplier for Apple’s mobile devices, that would be a big story for both Intel and U.S. manufacturing. It was only weeks ago that Apple was supposedly in talks with Taiwanese chipmaker TSMC(NYSE:TSM) about the possibility of replacing Intel CPUs in its PCs with TSMC chips based on ARM (NASDAQ:ARMH) architecture.

Intel CEO Paul Otellini (the guy who brought Apple into the Intel fold but failed to break into the mobile market) retires, and all of a sudden Apple and Intel appear to be making up for lost time. With most of Intel’s chip fabrication plants in the U.S. (including factories in Oregon, New Mexico and Arizona), domestic manufacturing would benefit tremendously. Apple sold 43 million iOS devices last quarter alone — that’s a lot of chips.

Then there’s the story of the “Assembled in USA” iMacs that’s burning up the tech sites right now. Some (but not all) of Apple’s latest iMacs have been arriving on doorsteps adorned with the usual “Designed by Apple in California” message. But instead of “Assembled in China,” they’re marked “Assembled in USA.”

The FTC has very specific rules about how to qualify for that label. To comply, Apple has to be doing much more than just screwing bases onto cases. A factory somewhere in the U.S. has to be building these things.

How could you justify assembling a computer in the U.S. if you can pay ridiculously low wages in China? First of all, those low wages aren’t as low as they used to be. According to The Atlantic,they’re five times what they were in 2000 and expected to continue rising at the rate of 18% per year. At the same time, U.S. labor productivity has risen, while U.S. manufacturing wages over the past five years are now back at the level they were in 2000, adjusted for inflation.

Earlier this year, The New York Times did the math and calculated that if Foxconn workers were paid equivalent U.S wages, it would add $65 to the cost of an iPhone. On a $649 device (the price of a base iPhone 4S at the time) with an estimated materials cost of $203, this would require Apple to either hike prices or bite the difference, cutting into its margins significantly.

However, an iMac is much more expensive. The cheapest is $1,299, so a potential uptick in labor costs may be less noticeable. And then there’s its size.

To get a sense of what it must cost Apple to ship one of these all the way from China, I tried an experiment using FedEx‘s (NYSE:FDX) shipping calculator to compare the cost of shipping a 1.4-pound box (iPhone) and a 42-pound box (27-inch iMac) from Foxconn in Shenzhen to the FedEx hub in Memphis. The result: $448.732 vs. $2,620.72.

Obviously, Apple isn’t paying anything near the rate Joe Public would, and it also uses other shipping companies. But the point is clear.

Shipping an iMac costs six times what it costs to ship an iPhone. If a worker at Foxconn in China ismaking $2.50 an hour compared to an average U.S. manufacturing wage of $19.15 (a difference of $16.65), so long as an iMac took 3.5 hours or so of labor to assemble, Apple would be breaking even by shifting manufacturing back to the U.S. based on the savings in shipping costs.

That’s all hypothetical. But it shows how plausible it is that under current conditions, Apple might shift production of bigger products from China back home. Plus, Apple was facing limited supply of the new iMacs based on problems at Foxconn, so maybe it’s decided to take matters into its own hands. Perhaps a hit on margins is worth the insurance against a hit on revenue if Foxconn can’t keep up.

It doesn’t hurt that the iMac is a relatively low-volume product (compared to iPads and iPhones) and that Apple already has an assembly facility in Elk Grove, Calif., where it built iMacs until 2004 and once employed 1,500 workers. Apple continues to refurbish iMacs for resale at this site, so it retains some technical and distribution capability. As TechCrunch notes, employment at that facility has jumped 50% this year, suggesting something is up.

While it’s possible that Apple merely messed up on its iMac labeling or that Intel Inside iOS devices is wishful thinking on Intel’s part, it’s also possible that between the company’s flagship PC and its determination to free itself from all vestiges of bitter rival Samsung, Apple is shifting toward “Made in America.” If so, here are a few things to watch for:

  • Without a doubt, Intel shares would surge. The company has been largely shut out of mobile, and gaining Apple’s business — even if it does so under license from ARM — would immediately vault Intel into a market leader. If it inked a mobile deal with Apple, those rumors about Apple seeking to shift its iMacs and MacBooks away from Intel would likely go away as well.
  • Apple’s margins could well take a hit, and even a small decrease could spook investors. Still, computers make up less than a quarter of Apple’s total revenue (and iMacs are a small subset of that), so the actual bottom-line impact of assembling PCs in the U.S. would likely be minimal and may well be offset by “Made in America” goodwill among domestic consumers.
  • Shipping companies could actually take a hit from any loss of Apple business. During the iPad 3 launch, for example, it was reported that Apple’s massive shipments form China (at premium rates) boosted the price DHL charged customers for international shipments by 20%. A steady stream of Apple shipments come from China to the U.S., and the vast majority (if not all) is by air.

At the time of writing, Apple hadn’t officially commented on either the “Assembled in USA” iMacs or the Intel talks. Expect all eyes to be on Cupertino for Cook’s response to both. In the meantime, the search is already on for a way to identify the U.S.-assembled iMacs while still in the box, so that consumers can choose them — and send Apple the message that they prefer to buy American.

As of this writing, Brad Moon from http://www.investorplace.com didn’t own any securities mentioned here.

Made in USA Certified:  www.USA-C.com

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Made in the U.S.A. Bucking a 30-year Trend

Jeremy Quittner | Inc.com

For Lumitec, a lighting product company in Delray Beach, Florida, manufacturing in the U.S. is essential, but so is exporting to clients overseas.

Lumitec’s products, which are designed for extreme environments, require exact specifications that need frequent product monitoring. So the lag time to make changes typically associated with manufacturing thousands of miles away in China is not an option. To accommodate these needs, Lumitec’s headquarters are in a 10,000-square foot facility that can handle the customization and assembly that clients require.

Lumitec is like an increasing number of small companies that are manufacturing in the United States, and bucking a 30-year trend of outsourcing such production overseas.

These companies find increased control, quality, and production standards domestically that may cancel out the cost savings that could come with manufacturing overseas. They are also turning the table on recent history in other ways, by exploiting sales in international markets, and uncovering opportunities by selling their goods to other countries in addition to domestically. They find the ‘Made in the U.S.A.’ stamp brings them unexpected cachet.

“We attend trade shows outside of the U.S. and people are always pleasantly surprised that we manufacture in the U.S.,” says John Kujawa, chief executive of Lumitec, which exports its lighting products to more than 30 countries. “it is understood that many products manufactured in the U.S. are greater quality than those from certain other countries.”

John Kujawa founded Delray Beach, FL – based Lumitec Inc.

Manufacturing businesses have added 500,000 jobs in the United States since 2009, though the sector has a lot of ground to make up, having lost 2.3 million jobs since the start of the recession. States that led the way were Michigan, Ohio, Indiana, Texas, and Illinois, which combined added a quarter of a million of those jobs over the same period.

Continue reading “Made in the U.S.A. Bucking a 30-year Trend” →