Archive for the ‘Made in America’ Category

What Can Individuals Do to Rebuild American Manufacturing?

Tuesday, September 24th, 2024

You may feel that there is not much you can do as an individual to rebuild American manufacturing to create jobs and protect our national security.  This isn’t true?  Remember that our country was founded by a small group of people that did indeed change the world by forming the United States of America. American activist and author, Sonia Johnson said, “We must remember that one determined person can make a significant difference, and that a small group of determined people can change the course of history.” Eleanor Roosevelt echoed this sentiment saying, “Never doubt that a small group of thoughtful, committed citizens can change world; indeed, it’s the only thing that ever has.”

Here are suggestions of what each one of us can do:

As a Consumer:  It matters if we buy American-made products.  Our addiction to imports has played a major role in creating our high trade deficit, especially with China, where most of the consumer goods we import are manufactured.

We lost 5.8 million manufacturing jobs from 2000 – 2010 because of importing so many goods from China and other Asian countries.  In contrast, American-made products create American jobs, reduce our trade deficit, and reduce our budget deficit from increased tax revenue. Each time you choose to buy an American-made product, you help save or create an American job.

When you shop in person, look for the country-of-origin labels of goods. Most imported goods are required to have these labels.  Don’t throw things into your shopping cart without checking labels. The most important step is to make a commitment to buy American made products. Commit to make a fair effort to find made in the USA products. Make a promise to yourself to buy the “Made in USA” product even if it costs more than the imported product. It is a small sacrifice to ensure the well-being of your fellow Americans. The price difference you pay for “Made in USA” products keeps other Americans working.

If the product you are looking for is no longer made in America, then buy the product from another country besides China, which has nuclear warheads aimed at American cities. By buying Chinese imports, American consumers have provided the funds for the bulk of China’s military buildup. American service men and women could one day face weapons mostly paid for by American consumers. Instead, you could patronize impoverished countries such as Bangladesh or Nicaragua, which have no military ambitions against the United States.

In addition, by buying a product “Made in USA, you would reduce the “carbon footprint” caused by shipping the product thousands of miles by container ship, using a greater amount of fossil fuel than shipping within the United States.

If you are willing to step out of your comfort zone, you could ask to speak to the department or store manager of your favorite store and tell them that they need to start carrying more “Made in USA” products if they want to keep you as a customer. If you buy products on line or from catalogs, you could contact these companies via email with a similar message. Your communicating with a company does have an effect because the rule of thumb in sales and marketing is that one reported customer complaint equals 100 unreported complaints.

If you think that Americans no longer care about where goods are made or have concerns about the safety of foreign products, you may be surprised to learn that poll after poll shows that the majority of Americans prefer to buy American.

A survey of 1,000 U.S. adults by Morning Consul  in  May 2023 with regard to their views of  products made by American companies vs. Chinese companies revealed the following:

  • 65% of U.S. adult consumers claimed to sometimes or always buy “Made in America” products intentionally
  • 43% prioritize purchasing American-made products rather than prioritizing other options like quality, sustainability, or affordability
  • 48% are willing to pay higher amounts for U.S.-based products. 39% responded they would pay between 6%-10% more for said products

If you are having trouble finding “Made in USA” products, you can search “buy American” on the internet.  A few of the sites you will find are:

www.madeinusa.com

www.ionlybuyamerican.com
https://www.themadeinamericamovement.com/made-in-usa-companies/
https://www.madeinamerica.co/pages/thelist
https://madeinamericastore.com/home/

www.buyamericanmart.com

www.americansworking.com

www.shopunionmade.org

www.MadeInUSAForever.com

www.stillmadeinUSA.com

There are also brick and mortar stores springing up around the country that are either stocking only “made in America” products, such as the Buy American Store  and the Urban Outfitters stores. Even stores like Wal-Mart and Target are carrying more “Made in USA brands due to customer demand.

As American consumers, you have many choices to live safely and enjoy more peace of mind with American products. It’s high time to stop sending our American dollars to China while they send us all of their tainted, hazardous, and disposable products. If 200 million Americans refuse to buy just $20 each of Chinese goods, that’s a four-billion-dollar trade imbalance resolved in our favor – fast!

As a Voter:  Voter apathy is partially responsible for the state of our affairs as a country. Too many people have decided that there is nothing they can do on an individual basis and have stopped voting.

Americans have been “sold down the river” by politicians on both sides of the aisle – Democrats and Republicans. Democrats profess to support “blue collar workers” and unions, yet NAFTA and the WTO treaties were approved and went into effect under the presidency of Democrat Bill Clinton. Republicans have professed to support business, yet they have voted to approve harmful trade agreements like NAFTA and have primarily supported policies that benefit large, multinational corporations rather than the small businesses that are the engine of economic growth in the U.S. and the foundation of the middle class.

Remember that the U.S. President isn’t a king or dictator; there are only a limited number of actions a president can do by Executive Order.  It’s the job of the President’s administration to set policies, but Congress turns the policies into laws. This makes it just as important to choose to vote for the right person for your Congressional Representative and Senator as it to vote for the President because very few of the policies proposed by the President will be turned into law if Congress is controlled by the opposition party.

In order to help manufacturers succeed and grow to rebuild our domestic manufacturing industry, manufacturers need affordable corporate tax and interest rates because manufacturing is a capital-intensive industry. They need affordable and reliable energy sources because it takes energy to manufacture every product.  They need protection from the unfair trade practices of China, such as:

  • Currency Manipulation – undervaluing the yuan against the U.S. dollar to capture market share with lower prices
  • Product Dumping – selling at or below cost to destroy their American competitors. 
  • Trans-shipping – shipping to an intermediary country before shipping to the U.S. from that country in order to hide that the product was made in China.

When you choose who to vote for President or Congress, examine both their campaign promises and their track record. It’s important to support candidates that would support and protect American manufacturers.  Here are a few questions you can ask:

  • Do they support more harmful trade agreements?
  • Will they increase enforcement of current Agreements to reduce trade cheating?
  • Will they enforce penalties on trans-shipping of steel and aluminum?
  • Will they continue the tariffs on Chinese steel, aluminum, solar panels and add tariffs on other goods imported from China?
  • Will they support “Buy America” for all government agencies and not just the military?
  • Will they keep tax rates at an affordable level?
  • Will they institute policies to provide affordable and reliable energy produced in the U.S.?

We cannot afford to export our wealth and be able to remain a first-world country. We cannot lose our manufacturing base and be able to remain a “superpower.” In fact, we may not be able to maintain our freedom as a country because it takes considerable wealth to protect our freedom.

You can play a role as an individual in saving our country ? the company you save or the job you save by your actions may be your own in the future. It’s time to shed apathy, become involved, and vote for the candidate that will best protect American manufacturers and help rebuild American manufacturing.

Excitement Builds as Manufacturers Prepare to Open Doors to the Public

Tuesday, September 3rd, 2024

This year Manufacturing Day will be Friday, October 4th, 2024. This is the day when manufacturers nationwide open their doors to the public for plant tours or participate in manufacturing expos to display their innovations.

It’s interesting to look at how this special day started.  The National Institute of Standards and Technology (NIST) blog describes how it happened.  In 2011, Dileep Thatte of NIST Manufacturing Extension Partnership (MEP) met with Ed Youdell, the new President & CEO of the Fabricators and Manufacturers’ Association at their office in Rockford, Illinois “to share how NIST MEP is focused on helping U.S. manufacturers incorporate innovation, new technologies, productivity and quality improvement techniques and develop their workforce.” 

In the course of the meeting, they developed the idea of having a special day to have FMA members get involved with NIST MEP. Then, they decided it should have a broader scale and created Manufacturing Day. They decided to conduct a pilot event in the Midwest and planned the first Manufacturing Day for the first Friday of October 2012 to allow enough time for outreach and planning.  The first year featured about 240 events and generated a great deal of enthusiasm among the people who participated. 

“The idea was to allow the manufacturers to open their doors in any way they see fit to invite the community, their schools, their educators, the legislators, and others, so that they see what is modern manufacturing and the value of manufacturing for the community.”

The goal was to dispel the myth that manufacturing is “dumb, dangerous, and dirty” so parents, educators, and students “could see that modern manufacturing is different than the traditional image of manufacturing.”  Modern manufacturing is “high tech,” involving computers, Computer Numerical Controlled (CNC) machines, robotics, automation, 3D printing, and other “cool” tools. “It’s about creativity, innovation, teamwork and technical skills.”

This reason this is important is that there is a significant shortage of skilled workers in the U.S. and the gap is expected to widen even more unless more youth start entering the manufacturing workforce. According to a 2021 study “by Deloitte and The Manufacturing Institute, the manufacturing skills gap in the U.S. could result in 2.1 million unfilled jobs by 2030.” We must address this workforce gap by changing the perception of manufacturing jobs, and Manufacturing Day is one of the best ways to change this perception.

By 2014, other national organizations such as the Association for Manufacturing Excellence (AME), the Association for Manufacturing Technology (AMT) and SME had jumped on the bandwagon to promote Manufacturing Day.  In San Diego where I lived, the four major chambers, the Greater San Diego Regional Chamber, the East County Chamber, North County Chamber, and South County Chamber, all had events that day ranging from a breakfast with speakers from the manufacturing industry to expos where manufacturers exhibited their products.  Manufacturers all over the county opened their doors to visitors and gave tours. Attended the breakfast put on by the Greater San Diego Regional Chamber and then went on three of the 25 tours scheduled in San Diego County. The producers of Manufacturing Day 2014 bragged that “This year’s Manufacturing Day set another record with almost twice as many events as last year. The final count was over 1,650 events in all 50 U.S. states, three Canadian provinces, and Puerto Rico.”

The NIST blog article, states “In 2016, the National Association of Manufacturers (NAM), an organization with membership in excess of 14,000 manufacturers, began leading the Manufacturing Day initiative. NAM, through their workforce development and education partner, The Manufacturing Institute, has done a magnificent job of supporting this initiative.

We moved to Riverside County in the fall of 2018, and on Manufacturing Day, I began my day by attending the special event in Menifee at Mt. San Jacinto College to introduce their new Makerspace to students.  The auditorium was nearly filled with students form Santa Rosa Academy where a panel of business professionals and professors shared the value of their education to their careers.  The event was sponsored by the City of Menifee, the Menifee Valley Chamber of Commerce, and CMTC. The audience was welcomed by Major Bill Zimmerman and Tony LoPiccolo, Executive Director of the Chamber. Fortunately, I was able to get a private tour of the MakerSpace by Hal Edghill, the MakerSpace specialist, before the students had finished listening to the panelists. I only had time to visit two companies because they were located so far apart and held in the same time period between 10 AM and 2 PM.

In 2019, I attended the first Made in America trade show that was held October 3-6th in Indianapolis, IN. The event began during Manufacturing Week declared by President Trump and the show opened to the public on the national Manufacturing Day. The NIST blog states, “In 2019, more than 325,000 students, teachers, and parents participated in MFG Day which consisted of more than 3,000 events held across all 50 states and Puerto Rico.”

Unfortunately, the COVID Pandemic lockdowns of 2020 curtailed the in-person special events and plant visits, but MFG Day 2020 because a virtual day, celebrated online instead of in person. “Even amid the pandemic, there was a widespread outpouring of support for manufacturing, including from many policymakers.”

The NAM website states, “The White House issued a proclamation on Thursday night designating Oct. 2 as National Manufacturing Day, while at least 28 governors and leading members of Congress marked the occasion by proclamation or on social media.” 

MFG Day 2021 was October 1st, and “manufacturers throughout the nation hosted open houses, factory tours and job fairs—both on site and online—to introduce young people and others to the promise of modern manufacturing. And many companies and leaders took to social media to show their support and love for the industry.

Besides the proclamation of President Biden, at least 15 states issued their own Manufacturing Day proclamations, and more than 40 congressional representatives publicly marked the occasion.

MFG Day 2022 and 2023 resumed having more emphasis on in-person events, plant tours, and expos.  Over 14,000 manufacturers across America now participate in country-wide celebrations

In June 2023, the Manufacturing Institute of NAM hosted a webinar, “Making the Most of Your Event,” featuring “seasoned MFG Day hosts sharing about their own events, best planning tips, lessons learned, ideas for school and community events.  The purpose of the webinar was to “share tips, insights and resources for companies interested in putting on their own MFG Day events.”  The webinar is available to watch here on YouTube for companies and organizations interested in hosting an event or plant tour for 2024.

In the article about the webinar, MI Director of Student Engagement Jen White, said, “Being involved with MFG Day, hosting events, using the branding that’s available on the website, registering your events on MFGday.com and all of our resources and toolkits are 100% free to you,” said White. “You do not have to be an MFG Day sponsor. You do not have to be an NAM member. It is 100% free for you to use. We want as many companies and partners of manufacturers involved in MFG Day as possible.”

I highly encourage you to sign up to be involved in Manufacturing by sponsoring an event, opening up your company for a plant tour, or attending an event or plant tours in your area at this website.  I certainly plan to attend as many plant tours as are logistically possible in my region of Riverside County, California.

Access Trax Expands Opportunities for Outdoor Fun for the Disabled

Tuesday, July 23rd, 2024

Many disabled people that have to use walkers or wheelchairs are deprived of experiencing outdoor activities they used to enjoy, such as going to the beach, going fishing at lakes, or other outdoor activities.  A new American-made product produced by Access Trax is restoring their ability to enjoy outdoor activities. Access Trax specializes in outdoor portable pathway solutions for wheelchair and handicap access for sand, gravel, grass, and more. Their premier product is the Trax modular pathway.

I learned about this product when I had lunch recently with a long-time friend, Kathy Roberts.  Access Trax was co-founded by her niece, Kelly Twichel.  Kathy said that Kelly wanted to help disabled people because her mother (Kathy’s sister) had a stroke when Kelly was only 12 and then spent the rest of her life being disabled before she died in 2020. Kathy connected me with Kelly, and I had the pleasure of interviewing her virtually last Friday.

Kelly said “While I was a student at the University of St. Augustine for Health Sciences in San Marcos in 2016, Eric Packard and I were tasked to create an assistive technology device as part of our course work to become occupational therapists. Our inspiration came from a desire to assist local adaptive surfers in crossing the sand to the water’s edge while maintaining dignity and independence.

We tested numerous prototypes in cooperation with the local adaptive surfing community before I graduated with a degree in Occupational Therapy in 2017. After we had achieved a successful design, we launched the company in early 2018. Our mission is for everyone to access the outdoors.”

She said that they got some good news coverage in 2019 and 2020 from local news outlets that helped increase their sales (see featured news coverage here). 

She added. “We were on the verge of having to shut our doors in early 2020 and were saved by winning the highly competitive Federal Express Small Business Grant Contest and receiving a grant of $50,000. I was interviewed by Shawn Styles of CBS 8 San Diego News after winning the grant.  This grant helped us to be able to nearly triple our sales in 2021 over 2020. All together, we have won over $100,000 in different grants since 2017, and we have been able to increase our sales every year.”

Kelly explained, “Besides selling our Access Trax mobile panels to individuals and families for personal use, we are also selling them to the National Park Service, City and County Park and Recreation Departments, and the U.S. Department of Veterans Affairs. Our latest customers are movie crews using the panels for outdoor film productions.”

Some of the benefits for these entities are:

  • Stable walkway for ADA compliance
  • Durable and reliable for years
  • Quick and easy set up and maintenance
  • Stake down panels for permanence  
  • Ability to customize the pathway

I asked Kelly if she had any patents, and she replied, “Eric and I were granted a design patent in 2021 and we have three trademarks.  I recently applied for a design trademark on our logo. Our portable wheelchair access mats are durable, lightweight, foldable for use on terrain like sand, gravel, dirt, mulch, grass, and snow.  They work with mobility devices and heavy equipment of up 1,000s of pounds.”

In answer to my question about manufacturing, she said, “No, we buy the raw material from a company in Florida and have a company in San Diego size the panels and add our logo. Then, my employees and I assemble the panels into our standard kits and ship them to customers using Federal Express.”

I asked if Eric is still involved in the day-to-day operations, and she said, “No, he is a silent partner now.”

Kelly said, “We give back to the community in three main ways. First, we sponsor outdoor adaptive sports events so participants can get the access routes they need over sand and grass.  We have been an in-kind sponsor of events for the U.S. Open Adaptive Surfing Championships since 2017.

Second, I travel around the country to speak on subjects such as the value of adaptive sports and recreation, assistive technology, universal design, and how to become a social impact problem-solver. I share information based on my background as an occupational therapist and what I’ve learned with Access Trax.

Third, I joined a small group of San Diego-based nonprofits and businesses focused on empowering people in the community who use wheelchairs for mobility. The group coined their name the “Mobility Community Access Partners” or MCAP for short. Our first goal was to host an event in San Diego to bring people together. In June 2022 we hosted the first ever Adaptive Sports, Recreation and Resource Fair in San Diego. The event included adaptive sports such as wheelchair basketball, adaptive fitness, kayaking, boccia ball, and adaptive over-the-line.”

Kelly added, “Access Trax was a co-host of the June 3rd 2023 event “San Diego Adaptive Sports, Recreation & Resource Fair”. We also co-hosted it again last month on June 29th, 2024 at the same place (recap video).”

I told her that I have being doing what I could to first save and then rebuild American manufacturing since my first book, Can American Manufacturing be Saved? Why we should and how we can” was published in 2009.  I’ve been using my God-given talents to write two more books since then, the latest being Rebuild Manufacturing – the Key to American Prosperity

I told her that besides writing hundreds of blog articles, I have been giving back by helping and mentoring inventors since 2014 as a board member for the San Diego Inventors Forum (SDIF)and was also a mentor for the CONNECT Springboard program for startup companies in San Diego from 2015 – 2018.   

Kelly, said, “I went through CONNECT ALL at the Jacobs Center in 2019, which used to be partly supported by CONNECT. It was a business accelerator that supported local San Diego small businesses with an emphasis on minority and low-to-moderate income founders. When I went through the accelerator, it was a free, six-month program with mentorship, learning modules, and access to a beautiful brand-new coworking space. The program ran from 2019 until 2024 and each cohort was about 4 months long with about 10-15 founders each. Unfortunately, this program recently lost funding and the building was purchased by San Ysidro Healthcare so we lost our co-working space. But I will forever be grateful for that accelerator and the folks who managed it.”

Kelly later emailed me that the former CONNECT ALL is now The Jacobs Center’s Business Accelerator program  The website says it “is the region’s first low to moderate-income and diversity-focused business accelerator program, guiding startups that want to grow rapidly with all the support they need to be successful. A partnership between the City of San Diego, CONNECT w/ San Diego Venture Group, and the Jacobs Center, the Business Accelerator was founded to provide participants with mentors, free co-working space, and guidance on how to scale their businesses.”

I told her that It’s very important to support companies like hers to restore our domestic manufacturing base. SDIF didn’t get to have any in-person meetings for three years because we lost our meeting location at AMN Healthcare’s conference center during the COVID pandemic lock downs, and Zoom meetings didn’t work out.  Finally, we found a new location to resume meeting in person last September, so we just had our 11th meeting on July 11th. I told her that our group supports the national organization, US Inventors, that is working to restore our broken patent system. Our group currently meets the second Thursday of the month at the law offices of Knobbe Martens in the Carmel Valley area of San Diego.  and invited her to our next meeting on August 8th. I thanked her for her time and wished her continued success for her much-needed product for disabled people.

What Would be The Benefits of the ONSHORE Act of 2023?

Wednesday, July 12th, 2023

The COVID pandemic proved that we cannot rely on imports of products needed to protect the health and welfare of Americans. Offshoring of manufacturing left the U.S. vulnerable to supply chain disruptions. We cannot defend our country if the products needed by the military and defense industry become unavailable because of being sourced offshore, especially in China. It’s time for all Americans to wake up to the dangers of being dependent on other countries for manufacturers goods, especially one that has become a threat to our country.

Strengthening domestic manufacturing capabilities, especially for industries of the future, is critical for economic and national security. We must forge a new path by rebuilding American manufacturing to win the international competition for good jobs, sustained economic growth, and rebuild a strong, secure domestic supply chain if we want to remain a free country.

I am glad to see that Congress is finally paying some attention to this need:  On June 8, 2023, Senator Mark Kelly (D-AZ), Senator JD Vance (R-OH), and Senator Tom Cotton (R-AR) introduced S.1915 – ONSHORE Act of 2023, a bipartisan bill to boost domestic manufacturing and strengthen supply chains that will help bring critical supply chains back to America by assisting communities of all sizes with the site development needed to attract manufacturing facilities. 

The joint press release states: “The U.S. faces a shortage of shovel-ready sites with the necessary infrastructure and workforce for companies to quickly begin construction on new manufacturing facilities. The ONSHORE Act creates a Critical Supply Chain Site Development Grant Program within the Economic Development Administration, which would assist communities, including small towns and tribal communities, with site development to attract manufactures from critical industries to build new facilities in their area.” 

Senator Vance stated, “As our nation takes the necessary steps to reshore critical supply chains and spur innovation, everyone in America should reap the rewards This bill would deploy capital broadly to ensure the foundations of tomorrow’s industry and growth are laid in underdeveloped regions. If enacted, it will deliver good-paying jobs, build vibrant communities, and strengthen supply chains—in Ohio and around the country.” 
 
Senator Kelly stated, “As we work to bring manufacturing supply chains for critical industries from microchips to critical minerals back to America, we have to maximize this opportunity by making sure there are enough sites with the infrastructure and workforce needed for new facilities. For a lot of small towns and tribal communities, the biggest barrier to attracting investment is the cost of getting sites ready for development. We’re working to fix that, which will boost manufacturing and create good-paying jobs in every corner of our states and the country.” 
 
Senator Cotton stated, “We cannot rely on other countries like China for our essential technologies. The technologies of tomorrow should be tested, researched, and made in America. This legislation will help make the necessary investments in our communities to make that possible.”

So far, the OSHORE ACT has received enthusiastic support from the International Economic Development Council (IEDC), the Global Business Alliance, the Greater Phoenix Economic Council, the Arizona Commerce Authority, and JobsOhio..

Nathan Ohle, President & CEO of IEDC said, “The ONSHORE Act will provide communities with essential resources to aid in attracting supply chain manufacturers. Economic developers across the U.S. will welcome this new initiative and IEDC urges the swift passage and implementation of the ONSHORE Act.”

Nancy McLernon, president & CEO of the Global business Alliance, said, “Site readiness is a critical consideration for international companies planning major investments in the United States… and urges all Senators to support this measure and other policies that make it easier to invest in America.”  

Chris Camacho, President & CEO of the Greater Phoenix Economic Council said, “The availability of shovel-ready sites with the necessary infrastructure and skilled workforce is a crucial factor in attracting companies to invest in Greater Phoenix and bolster U.S. supply chains. This program ensures that strategic mega sites and regionally impactful locations are properly prepared for new industrial investment. With enhanced site-readiness, the United States will be better equipped to compete globally, foster the growth of critical industries, and ensure the production of essential products domestically.”

Sandra Watson President & CEO, Arizona Commerce Authority, said, “We applaud Senator Kelly for leading on this important legislation. This ONSHORE Act will significantly strengthen U.S. competitiveness for new manufacturing opportunities, bringing more jobs and investments to Arizona.”

J.P. Nauseef, JobsOhio president and CEO, said, “I applaud the introduction of the ONSHORE Act, which will help Ohio and the rest of the United States more fully capitalize on this generational opportunity by expanding the number of sites that are ready to support major development projects.”

I can see that basic infrastructure, such as road access or water and power utility hookups, is an important factor affecting where a new manufacturing facility is built, but there are so many abandoned manufacturing sites throughout the country that I question the need for the Economic Development Agency’s Critical Supply Chain Site Development Grant Program. There are also large retail stores, such as former K-Mart stores, that could be converted to manufacturing sites by remodeling and changing zoning. The redevelopment of these sites would provide good opportunities to revive the industrial base of states hard hit by offshoring, such as Michigan, Ohio, and North and South Carolina.

In my opinion, there is a greater need for a new type of Small Business Innovation grant program to fund establishing manufacturing plants to manufacture components and systems that are no longer made in the U.S. because of being offshored to China and other Asian countries.  This type of grant would also provide new industrial investment, including in rural and tribal communities, and regions with high unemployment.  These companies would help position the U.S. to compete against adversaries like China, boost domestic manufacturing, and build resilient supply chains. 

Priority for receiving such a grant should be given to proposals that would manufacture critical components and systems needed by our military and defense industrial base.  Semiconductors and batteries are not the only critical products that need to be onshored/reshored.  Components such as capacitors, resistors, inductors, transformers, connectors, and flex circuits also need to be returned to being made in the USA.

This kind of investment will better position the U.S. to compete against international competitors like China and the European Union and ensure more critical products are made in America.  

It’s the supply chain … stupid!

Tuesday, April 4th, 2023

Ever since the COVID pandemic started three years ago, we have suffered from disruptions in supply chains for many products used in our daily lives as well as products and components needed for our consumer products, industrial, and defense industries.  Why?  Because we stopped making things in the USA. We outsourced everything from household goods to high tech products, as well as pharmaceuticals and medical devices. First, it was to friendly countries like the Philippines, Puerto Rico, and Taiwan, and then it became predominantly China after they entered the World Trade Organization in 2001.

The shortages of semiconductors, has made news headlines for the past two years. Semiconductors are used in everything from consumer products such as cell phones, computers, and TVs as well autos, trucks, airplanes, boats, ships, drones, and space vehicles.  There is hardly any product that doesn’t have a semiconductor in it these days, even refrigerators and washing machines. Many other electronic and electro-mechanical components are also no longer made in the USA.

Our domestic innovation capacity is contingent on a robust and diversified industrial base. Our loss of manufacturing capabilities has led to a loss in innovation capacity. When manufacturing heads offshore, innovation follows. We currently lack the ecosystem of innovation, skills, and production facilities to have the secure and resilient supply chains required for economic security. As a result, we are no longer self-sufficient in producing the products we depend on for our modern way of life.    

Even worse, we are no longer self-sufficient in producing the goods and systems needed to defend our country.  Our national security and freedom as an independent country is at risk. This fact was confirmed in the article “From rockets to shells, Pentagon struggles to feed war machine,” from the March 25th issue of the New York Times which stated, “The United States lacks the capacity to produce the arms that the nation and its allies need at a time of heightened superpower tensions…Industry consolidation, depleted manufacturing lines and supply chain issues have combined to constrain the production of basic ammunition like artillery shells while also prompting concern about building adequate reserves of more sophisticated weapons including missiles, air defense systems and counter-artillery radar…illustrated by the shortage of solid rocket motors needed to power a broad range of precision missile systems, such as the ship-launched SM-6 missiles made by Raytheon…Other shortages slowing production include simple items such as ball bearings, a key component of certain missile guidance systems, and steel castings, used in making engines.”

There are two main ways that government can help rebuild the domestic manufacturing base:  penalize offshoring to other countries and incentivize American manufacturers to make is here or reshore their manufacturing to the USA.  The Biden Administration and Congress have reacted to this supply chain crisis within the last year by passing the following legislation:

CHIPS and Science Act of 2022 to “boost American semiconductor research, development, and production, ensuring U.S. leadership in the technology that forms the foundation of everything from automobiles to household appliances to defense systems.”

Amendment to The Federal Acquisition Regulation (FAR) Buy American Act – “This rule increases the domestic content threshold initially from 55 percent to 60 percent, then to 65 percent in calendar year 2024 and to 75 percent in calendar year 2029.”

Uyghur Forced Labor Prevention Act – This Act changes U.S. policy to establish “a rebuttable presumption that the importation of any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China.” Previous law required companies to take reasonable care to avoid products produced with forced labor. This Act requires companies to prove that products from Xinjiang province were not produced with forced labor.

While these new laws and amendments to previous laws will help ease future supply chain disruptions, the real solution to the supply chain crisis is to change the financial calculations to enable making as much as possible in the United States. The Reshoring Initiative has been working towards this goal since its founding in 2010 by promoting the use of the Total Cost of Ownership Estimator® developed by Harry Moser

According to the Reshoring Initiative 2022 Data Report, “Reshoring plus FDI have followed a strong upward trend for 13 years. The underlying trend is driven by the recognition that, in many cases, the total cost of offshoring exceeds that of sourcing domestically. There have been peaks and valleys in the trend. 2017 was driven by the 2017 tax and regulatory cuts. 2018 and 2019 declined due to the trade war. The trend resurged from 2020 to 2022 driven by companies recognizing their vulnerability to supply chain disruptions and, most recently, to geopolitical events.”

The report states, “Jobs announced in 2022 were a record breaking 364 ,000 up from 238 ,000 in 2021. The total number of jobs announced since 2010 is now nearly 1.6 million…we expect 2023 and 2024 to remain strong, continuing at approximately 350,000 job announcements per year. If the current trajectory continues, the U.S. will reduce the trade deficit, add jobs, and become safer, more self-reliant and resilient.”

We need continue to rebuild our domestic manufacturing industrial base if we are going to achieve the goals of Industry Reimagined 2030 to have 50,000 more world-class domestic American manufacturers and a $1 trillion GDP by 2030

How to Buy More Made in USA Products

Tuesday, March 21st, 2023

More than 70% (72%) of American consumers prefer American-made products and nearly half (48%) say they’d be willing to pay around 10–20% more. An exclusive poll about buy-American shopping preferences from Retail Brew and The Harris Poll was conducted among a nationally representative sample of 1,986 US adults from July 22–24, 2022.

Overwhelmingly, Americans want to know where their products are made, and they can do so at retail stores by looking for a “Made in USA” label when they shop in person.  However, when they shop online, there is no country of original information provided in the description of a product by the top online e-commerce companies, Amazon, eBay, and Etsy.

In 2020, The COOL Online Act  (S. 3707) was introduced by Senator Tammy Baldwin to require a prominent country-of-origin description for all products sold online as well as clear disclosure of the country in which the seller of the product is located. However, big retailers including Amazon want to hide where their products are coming from and lobbied to prevent this bill from being voted on by the Senate.  The text of this bill was added as an amendment to the Endless Frontier Act (S. 1260), which passed the Senate, but was not voted on by the House.  A similar bill is planned to be introduced this year.

In addition, all of the e-commerce companies take advantage of the “De Minimis” rule, created by Congress as  Section 321 to the Tariff Act of 1930. “De Minimis” is Latin for “too trivial or minor to merit consideration.” Its purpose was “to avoid expense and inconvenience to the Government disproportionate to the amount of revenue that would otherwise be collected.”

A White Paper by the Coalition for a Prosperous America (CPA) states, “The 1938 Congress set low-dollar thresholds for three different importation scenarios, assigning a $5 threshold for bona fide gifts and personal effects travelers brought with them, and a $1 de minimis for  any other situation…Congress raised our de minimis threshold to a whopping $800 in 2015. China’s is 50 yuan, which is less than $8.  Goods eligible for de minimis treatment enter the U.S. free of duties and taxes…Express consignment companies like FedEx and UPS and e-commerce sites like Amazon and eBay are the primary actors lobbying to keep de minimis as a giant open-border backdoor.

“U.S. Customs & Border Protection (CBP) itself acknowledges that raising the de minimis threshold

changed the very nature of international trade.” Under the traditional paradigm, businesses would contract foreign manufacturers, entering into supply contracts, importing particular products by the container-load, and then distribute products to domestic retailers. “Large shipments would be consigned to a single purchaser, and typically consist of the same or similar goods. Under the new paradigm, that same shipping container has individual packages destined for hundreds of individual customers who are fulfilling the legal role of “importer…”

“For regular imports, the law requires importers to provide Customs & Border Protection (CBP) an advance manifest of the incoming cargo describing it. But de minimis shipments, including millions of e-commerce packages, typically arrive with no advance information.”

CPA recommends that Congress “fix this by lowering the threshold back to $9 ($5, but adjusted for inflation).”

One company is leading the effort to adopt a private sector solution.  Don Buckner Sr., recently contacted me about the new online marketplace he is developing to provide consumers with easy access to domestic manufactured products. MadeInUSA.com.  Customers will be able to identify and search by three sourcing categories: Made in USA, Made in USA with US & Global Materials, and Assembled in the USA. They may also search by a Business Certification such as Veteran, Women, Minority, GSA Holder, or Small Business. This will increase a company’s visibility, allowing access to opportunities they might not otherwise have.  Vendors must certify that products displayed on the site are produced in compliance with the Federal Trade Commission Made in USA claim. Strict adherence is required for all vendors.  MadeInUSA is now registering vendors and products at https://madeinusa.com/vendor.  The website is scheduled to go live in late 2023.

I asked what will make his website different from other websites offering Made in USA products, and

Don said, “MadeInUSA.com is an Enterprise level eCommerce marketplace specifically designed to highlight and promote vendors to domestically produced products. MadeInUSA.com is built using the latest technology and is the most comprehensive, secure, online resource for consumers and corporate buyers  As the premier and trusted online marketplace for products made in the USA, the site offers a doorway between U.S. manufacturers and the world.”

Customers will be able to identify and search vendors by one of three categories: Made in USA, Made in USA with US & Global Materials, and Assembled in the USA. They may also search for vendors by a Business Certification such as Veteran, Women, Minority, GSA Holder, or Small Business. This will increase a company’s visibility, allowing access to opportunities they might not otherwise have.

Don explained, “The MadeInUSA.com eCommerce platform is based on a drop ship model and will collect and pay all sales tax and shipping costs. All the manufacturers must do is build it and box it”

The website is now open for vendor applications to offer products directly to consumers. Vendors may list products for free but must certify that products displayed on the site are produced in compliance with the FTC Made in USA claim. Strict adherence is required for all vendors. Manufacturers and vendors can register by visiting https://madeinusa.com/vendor to submit an application.   

U.S. consumers prefer to buy domestic products.  Today, it is hard for consumers to do that and easy for imports to by-pass customs duties.  Congress has legislators working to fix labeling and import duties. I applaud the focus of Don Buckner to reconnect U.S. manufacturers to the U.S. consumers and to create American jobs through increased demand for USA branded products. 

Industry Reimagined 2030 is working with national associations and the private sector to increase consumer purchases of U.S. goods. We share the same commitment that buying USA-made products isn’t just patriotic, it’s an investment into our communities, our labor force, and our economy.  We aim to increase U.S. purchases by $500 billion that will result in 2 million jobs by 2030.  

Manufacturing is Critical to Our National Defense

Tuesday, July 21st, 2020

The final reason that manufacturing is important is that manufacturing ensures that the U.S. has a strong industrial base to support its national security objectives. We need to preserve our national and homeland security to be able to produce the goods that allow us to defend our national sovereignty.

American manufacturers supply the military and Defense Department with the essentials needed to defend our country, including tanks, fighter jets, submarines, unmanned vehicles (drones) and other high-tech equipment. The same advances in technology that consumers take for granted support the military, particularly soldiers fighting overseas.

In the keynote address “Lessons for a Rapidly Changing World” at the CA World conference in 2003, Dr. Henry Kissinger, former U.S. Secretary of State, said, “The question really is whether America can remain a great power or a dominant power if it becomes primarily a service economy, and I doubt that. I think that a country has to have a major industrial base in order to play a significant role in the world. And I am concerned from that point of view.” He added, “But if the outsourcing would continue to a point of stripping the U.S. of its industrial base and of the act of getting out its own technology, I think this requires some really careful thought and national policy probably can create incentives to prevent that from happening.”

As more and more manufacturing was outsourced offshore, the warnings of the dangerous consequences continued.  Joe Muckerman, former director of emergency planning and mobilization in the Office of the Secretary of Defense, wrote a guest editorial entitled “Without a Robust Industrial Base DOD Will Lose Future Wars” in the April 17, 2008 edition of Manufacturing & Technology News. He opined:

Joe Stalin said that World War II was not won on the battlefields of Europe but in Detroit. Had Stalin lived until the end of the Cold War, he probably would have arrived at a similar conclusion. The U.S. won the Cold War because it maintained technologically superior strategic weapons at a level that deterred the Soviet Union from attacking our vital interests. The United States was able to sustain this force for half a century during which the U.S. economy prospered while that of the USSR collapsed. … Today the U.S. industrial base is fast becoming global and the U.S. economy is in trouble.

In April 2011, the Information Technology & Innovation Foundation (ITIF) released the report, “The Case for a National Manufacturing Strategy,” by Stephen Ezell and Robert Atkinson which  echoed my strong belief that manufacturing is critical to our national security:

They wrote, “If we lose our preeminence in manufacturing technology, then we lose our national security. This is because:

  • As the U.S. industrial base moves offshore, so does the defense industrial base.
  • Reliance on foreign manufacturers increases vulnerability to counterfeit goods.”

The report revealed that the “United States has diminishing or no capability in lithium-ion (Li-ion) battery production, yttrium barium copper oxide high-temperature superconductors, and photovoltaic solar cell encapsulants, among others. … Additional examples of defense-critical technologies where domestic sourcing are endangered include propellant chemicals, space-qualified electronics, power sources for space and military applications (especially batteries and photovoltaics), specialty metals, hard disk drives, and flat panel displays (LCDs).”

On July 21, 2017, President Trump issued Exec. Order 13806, “Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States,” whose “primary goal was to conduct a comprehensive assessment of the industrial base and develop a set of specific, actionable recommendations to mitigate or eliminate the identified impacts.”

In December 2017, President Trump set forth “The National Security Strategy of the United States of America,” to put American First in which he stated, “A healthy defense industrial base is a critical element of U.S. power and the National Security Innovation Base. The ability of the military to surge in response to an emergency depends on our Nation’s ability to produce needed parts and systems, healthy and secure supply chains, and a skilled U.S. workforce.”  Since then, President Trump’s economic policies have focused on putting America First to protect our national security through the following:

  • Renegotiating NAFTA and KORUS
  • Corporate and personal tax cuts
  • Regulatory reform
  • Tariffs on steel, aluminum, and other Chinese goods tax cuts
  • Strengthening Buy America requirements for federal government procurement 

As required by E.O. 13806, on Oct. 5, 2018, Deputy Secretary of Defense Pat Shanahan, on behalf of Secretary of Defense Jim Mattis, presented the report, “Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States,” to President Trump. Note:  The  unclassified version is available here.  This 146-page report comprehensively assesses every aspect of the defense industrial base. 

One important factor noted was “The decline in the U.S. manufacturing industry, relative to prior periods of great power, creates a variety of risks for America’s manufacturing and defense industrial base and, by extension, for DoD’s ability to support national defense. Risks range from greater reliance on single sources, sole sources, and foreign providers to workforce gaps, product insecurity, and loss of innovation.”

 The U.S. cannot rely on other countries to supply its military because their interests may run counter to its own.  If we faced a real military threat to our homeland, how would we assure access to the industrial and military goods needed to defend our country when most of these items are being manufactured in China? We cannot risk being held hostage to foreign manufacturers when it comes to products that are essential for our national security and the U.S. military. The COVID-19 pandemic has taught us that we must source critical pharmaceuticals, PPE, and medical devices in the U.S. to protect the health and safety of American citizens.  In turn, it is crucial that key components and technologies that are critical to the production of U.S. weapons and other products needed by our military and Department of Defense be produced within the United States.  This is the only way that we will be able to protect our national security and keep America a free country.


 

Who Are My Heroes? Part Two

Tuesday, April 28th, 2020

My additional heroes are people with whom I connected after my first book, Can American Manufacturing be Saved? Why we should and how we can was published in 2009. We shared a focus on doing what we could to save and rebuild American manufacturing. Again, they are presented alphabetically, not chronologically.

Greg Autry, Ph.D., is “an educator, writer and technology entrepreneur. He researches and publishes on space commerce, entrepreneurship, technology innovation and trade policy. He is an Assistant Professor of Clinical Entrepreneurship with the Lloyd Greif Center for Entrepreneurial Studies in the Marshall School of Business at the University of Southern California, where he teaches entrepreneurship and technology commercialization courses.” I met Greg when he was a doctoral candidate at the Merage School of Business at UC Irvine, before he became Senior Economist for the non-partisan, non-profit organization. Coalition for a Prosperous America,  We were also fellow board members of the non-profit American Jobs Alliance for five years. Dr. Autry is the co-author of the book Death by China and a producer on the documentary film, Death by China, (directed by Peter Navarro). His opinion articles have been published in major news outlets including the San Francisco Chronicle, LA Times, Washington Times, Wall Street Journal, and SpaceNews. He was a regular contributor to Huffington Post and is now a regular contributor to Forbes. He is currently on the advisory board of the Coalition for a Prosperous America.

Den Black is President of the non-partisan, non-profit organization, American Jobs Alliance (AJA). He earned a BSME at Kettering University and worked as a Senior Strategist, Futurist, Innovator at Delphi Automotive Systems for 37 years.  Den invited me to join the board of AJA in 2012 after he was referred to me by Executive Director, Curtis Ellis after we met when he was on a West Coast trip. AJA is “dedicated to fostering the public’s understanding of the American System of free enterprise, a system established by the Founding Fathers of the United States to develop the domestic economy of the United States and promote the employment of Americans in diverse occupations through investment in infrastructure and promotion of key industries and technologies in the United States.” Currently AJA is promoting a window decal  “Boycott China for Jobs, Human Rights, Peace” and AJA’s affiliated website:  www.GetOutofChina.us.

Don Buckner is the Founder and CEO of MadeinAmerica.com, MadeinUSA.com, and MadeinAmerica.org. His vision started in 1998 “when he attempted to find several American-made products online, but was unable to do so. Frustrated, he took matters into his own hands, purchasing the Domain MadeintheUSA.com. The website served as a directory resource connecting patriotic consumers to more than 300,000 American-made manufacturers for several years. He also acquired the Domain MadeInAmerica.com.” After the company he founded in 1997, Vac-Tron Equipment, was acquired in 2018, he and his wife decided to invest some of their profits to hold the first Made in America trade show.  They rented the convention center in Indianapolis, IN, where the first show was held October 3-6, 2019. I met Don when I attended the show as one of the many featured panelists and speakers.  The next Made in America show will be held at the TCF convention center, Detroit, Michigan Oct. 1-4, 2020. 

Dan DiMicco, is an American businessman who is the former CEO and chairman of Nucor Steel company and is now Chairman Emeritus. Dan was appointed to the United States Manufacturing Council in 2008 by then-U.S. Commerce Secretary Carlos M. Gutierrez, and served on the board until 2011. Dan also served on the boards of the National Association of Manufacturers and the World Steel Association on the Executive Committee. He also served as a Senior Trade/Economic Advisor to the Trump Campaign and the Lead on the USTR Transition Team. He currently serves on the Board of Directors for Duke Energy Corporation and continues to represent Nucor on the US Council on Competitiveness. He is currently Chairman of the Coalition for a Prosperous America (CPA). He is the author of American Made: Why Making Things Will Return Us to Greatness, published in 2015. I had the pleasure of hearing Mr. DiMicco speak as the keynote speaker at several of the Manufacturing Summits held in California between 2013-2018, when I was the chair of the California chapter of CPA and at the Trade Conferences held by CPA in Washington, D. C. during this same time period.

Curtis Ellis was the Executive Director of the American Jobs Alliance, an independent non-profit organization promoting pro-jobs and Buy American policies, when I met him after my first book was published. He recommended me as a potential board member to Den Black of AJA. He had previously worked in Congress and on federal, state and local campaigns. For his work as a journalist, producer, writer and reporter, he has appeared on 60 Minutes, HBO, NBC, CNN, NPR and in the NY Times, San Francisco Chronicle, Chicago Tribune, TIME, Huffington Post, The Hill, and other outlets. His commentary has appeared on CNN, MSNBC and radio shows nationwide. Currently, Mr. Ellis is currently Policy Director with America First Policies. He served as senior policy advisor on the 2016 Trump-Pence campaign, was on the Presidential Transition Team, and served as special advisor to the U.S. Secretary of Labor in the International Labor Affairs Bureau in 2017.

Ian Fletcher, author of Free Trade Doesn’t Work, What Should Replace it and Why, published in 2011. When I met him, he was a Research Fellow at the U.S. Business and Industry Council. Alan Tonelson asked him to meet me when he was in southern California in the summer of 2010, not long after I started writing blog articles. When, he switched to becoming the Senior Economist of the Coalition for a Prosperous America in early 2011, he suggested I join CPA, which I did.  I immediately read his book from which I learned everything I didn’t know about the dangerous effects of our trade agreements. While he was at CPA, he and Michael Stumo (CPA CEO) edited the second edition of my book, Can American Manufacturing be Saved? – Why we should and how we can, which was published in 2012 by CPA. Ian was a featured speaker at several of the above- mentioned Manufacturing Summits.  He was educated at Columbia and the University of Chicago, and he lives in San Francisco. He is currently on the advisory board of the Coalition for a Prosperous America.

Rosemary Gibson is a “national authority on health care reform, Medicare, patient safety and overtreatment in medicine, as well as “an award-winning author, inspirational speaker, and advisor to organizations that advance the public’s interest in health care.”  She is the co-author of China RX, published in 2018, as well as Medicare Meltdown (2013), Battle Over Health Care (2012), Treatment Trap (2010), and Wall of Silence (2003). I met Ms. Gibson when she was a featured speaker at the Made in America trade show in October 2019. With the outbreak of the COVID-19 pandemic this year, her book is getting the full attention it deserves as an expose of the offshoring to China of pharmaceuticals, PPE, and medical devices.

Harry Moser founded the Reshoring Initiative in 2010 after 25 years as the North American president of GF AgieCharmilles, now GF Machining Solutions. The mission of the Reshoring Initiative is to help bring manufacturing jobs back to the U.S. using the Total Cost of Ownership Worksheet calculator he developed. Harry was inducted into the Industry Week Manufacturing Hall of Fame 2010 and was named Quality Magazine’s Quality Professional of the year for 2012…won the Jan. 2013 The Economist debate on outsourcing and offshoring, and received the Manufacturing Leadership Council’s Industry Advocacy Award in 2014. Harry and I connected in August 2010 after he read my blog article about the importance of understanding Total Cost of Ownership.  He told me I wrote about what he just started and trained me how to use his TCO worksheet, authorizing me to be a speaker on behalf of the Reshoring Initiative.  

James Sturber is the author of What if Things Were Made in America Again: How Consumers Can Rebuild the Middle Class by Buying Things Made in American Communities, published in 2017. Subsequently, he founded the Made in America again organization. After obtaining a law degree, he “devoted his career to public policy, law and entrepreneurship.  He began his career as legislative assistant to a member of the U.S. House of Representatives, focusing on matters before the Committee on Energy and Commerce.  He subsequently practiced legislative and administrative law in Washington, D.C. I met Jim at the Coalition for a Prosperous America trade conference in Washington, D. C. in 2018. When I read his book, I discovered we had some up with much of the same data in our research as my last book, Rebuild Manufacturing – the key to American Prosperity was also published in 2017. He currently co-chairs the Buy American committee for CPA of which I am a member.

Alan Uke is a San Diego businessman, entrepreneur, and community leader, who “started his company, Underwater Kinetics, 41 years ago while attending the University of California at San Diego. Uke holds over 40 patents and exports his SCUBA diving, industrial lighting, and protective case products to over 60 countries.”  He is the author of Buying America Back, A Real-Deal Blueprint for Restoring American Prosperity, published in 2012. Uke documented that in 2011, the U.S. had a trade deficit with 88 countries provides a chart showing the trade balance with every country with which the U. S. trades. When we met for lunch, I found out that he was also a member of the Coalition for a Prosperous America, so we had something else in common. “He is also Founder Emeritus/Founding Board President of the San Diego Aircraft Carrier Museum which acquired the USS Midway in June 2004.”

I would be remiss in not giving Honorable Mention to the many members of the U.S.-China Economic and Security Review Commission that was “created on October 30, 2000 by the Floyd D. Spence National Defense Authorization Act of 2001…” The primary purpose of this Commission is “to monitor, investigate, and report to Congress on the national security implications of the bilateral trade and economic relationship between the United States and the People’s Republic of China.” Beginning in December 2002, the Commission submitted “to Congress a report, in both unclassified and classified form, regarding the national security implications and impact of the bilateral trade and economic relationship between the United States and the People’s Republic of China. The report shall include a full analysis, along with conclusions and recommendations for legislative and administrative actions, if any, of the national security implications for the United States of the trade and current balances with the People’s Republic of China in goods and services, financial transactions, and technology transfers.”  I read several of the reports as I was researching my three books, and each year, China’s unfair trading practices threats to U.S. national security, and other violations of the principles and terms of China’s membership in the World Trade Organization were well documented.  Yet, no action was taken by Congress under the administrations of President Bush or President Obama.   

I met many other people at the Made in America trade show last October, some of whom have recently joined the CPA Buy American committee. Some of these people could very well be listed in a future article on my heroes as I get to know them and their work better.  I would encourage you to join our efforts to rebuild America’s economy to create jobs and prosperity by becoming a member of CPA.

Who Are My Heroes? Part One

Tuesday, April 21st, 2020

As you might expect my heroes are people who have played a role in trying to alert Americans to the effects to our economy of the decimation of American manufacturing and the dangers of outsourcing manufacturing to China and other countries.  These are real people and none are elected officials.

This month marks the 13th year of my journey to do what I could to save American manufacturing. In May 2007, I e published one of my periodic San Diego County Industry reports that I had been writing since 2003.  I titled it, “Can U.S. Manufacturing be Saved?” My report had grown from four pages to 13 pages, and I realized that what I was documenting about the loss of manufacturers in San Diego and California was going on all over the country.  That’s when I made the decision to start writing my first book, Can American Manufacturing be Saved? Why we should and how we can, published in May 2009.  In the course of researching and writing my first book, my second edition of the same (2012), and my third book, Rebuild Manufacturing – the key to American Prosperity (2017), I have connected with many people who shared my concerns and were early advocates of saving American manufacturing.

My first set of heroes are those who either wrote books, articles, or newsletters that I came across researching my first book. When I was writing my reports, I was blaming the loss of manufacturing in California on the bad business climate, high taxes, and the cheap Chinese wages. These heroes expanded my knowledge greatly by showing that it was our primarily our national trade and tax policies, the trade cheating of China and other Asian countries, and corporate greed that was responsible for losing over five million manufacturing jobs between the year 2000 and 2009.  In alphabetical order, my heroes are:

Michael P. Collins is author of Saving American Manufacturing, Growth Strategies for Small and Midsize Manufacturers, published in 2006 and its companion handbook, The Growth Planning Handbook. Prior to becoming a writer, he was Vice President and General Manager of two divisions of Columbia Machine in Vancouver Washington. He is President of MPC Management, a consulting company that focuses exclusively on the problems and challenges of small and midsize manufacturers (SMMs) of industrial products and services. His book is written from the viewpoint of what manufacturers can do to save themselves and grow their business.  I arranged for him to come to San Diego to give a presentation to the Operations Roundtable of the American Electronic Association in 2011.

Lou Dobbs, is an American television commentator, radio show host, and the anchor of Lou Dobbs Tonight on Fox Business Network, and author of Exporting America, Why Corporate Greed is Shipping American Jobs Overseas, published in 2004 as hard cover and 2006 as a paperback. In his book, he “takes aim at the corporate executives and Washington politicians who profit by exporting U.S. jobs overseas—and shows readers what they can do to save not only their own careers, but the American way of life.

Ralph Gomory, who is well-known for his mathematical research and his technical leadership. For twenty years he was responsible for IBM’s Research Division, and then for 18 years was the President of the Alfred P. Sloan Foundation. He is the co-author with the late William J. Baumol of the book, Global Trade and Conflicting National Interests, published by MIT Press in 2001. After connecting by phone and email for years, it was nice to finally meet him at the Coalition for a Prosperous America trade conference in Washington, D. C. in 2018.

Richard McCormack, journalist and founder/publisher of Manufacturing & Technology News which he found in 1994. McCormack also served as the editor of the 2013 book on revitalizing manufacturing, ReMaking America. I read every issue of MT&N from July 2007 until it stopped publication at the end of 2016. He was also recognized as an American Made Hero by AmericanMadeHeroes.com for his newsletter “coverage of the profound financial and economic ramifications of the shift of industrial capability from the United States to Asian competitors.” He wrote “thousands of articles on outsourcing, industrial and technological competitiveness, government policies, and trends related to management, quality, technology and markets.”Mr. McCormack is currently Press Secretary and Program Manager, Office of Public Affairs, for the Department of Commerce.

Peter Kent Navarro is a Harvard Ph.D. economist and author of several books. I read his book The Coming China Wars, published in 2006, while I was researching my book. At that time, he was a professor of public policy at the University of California, Irvine. He currently serves in the Trump administration as the Assistant to the President, Director of Trade and Manufacturing Policy, and the national Defense Production Act policy coordinator. I first met Mr. Navarro when he was a professor at the University of California, San Diego and running for mayor in 1992. I also had the pleasure of seeing him when I attended the trade conference in 2018. I also read his book, Death by China, which he co-authored with Greg Autry, published in 2012.

Raymond Richman, Howard Richman (son), and Jesse Richman (grandson), authors of Trading Away our Future: How to Fix Our Government-Driven Trade Deficits and faulty Tax System Before It’s Too Late, published by Ideal Taxes Association in 2008. Raymond died in October 2019 at the age of 101. His tribute by Ideal Taxes states, he “authored four books, dozens of journal articles and hundreds of commentaries about economic development, tax policy and trade policy…Beginning with a commentary in the Pittsburgh Tribune-Review on September 14, 2003 (The Great Trade Debate), he became one of the first advocates of a policy of balanced trade, an alternative to the free trade vsfair trade debateHis essential argument was that trade, free or not, benefits both countries if it is balanced.” I am sorry that I didn’t get to meet him before he died.

Roger Simmermaker, author of How Americans Can Buy American: The Power of Consumer Patriotism, third edition published in 2008. He also writes Buy American Mention of the Week articles for his website and World New Daily. His book provides a guide to assist American’s who wish to purchase products made in America and discusses the importance of “Buying American” for the future economic independence & prosperity of America. He earned special recognition as an American Made Hero. After years of connecting to him by phone and email, it was a pleasure to also meet him at the same trade conference in 2018.

Alan Tonelson, a Research Fellow at the U.S. Business and Industry Council Educational Foundation, and a columnist for the Foundation’s globalization website, Tradealert.org and a Research Associate at the George Washington University Center for International Science and Technology Policy. He is also the author of The Race to the Bottom, published in 2000. “He has written extensively on the trade deficit between the United States and other countries. He has also written on free trade, globalization and industrial decline. He argues that U.S. economic policy should aim for “preeminence” over other countries, just as, he believes, other countries’ economic policies seek their own national interests. He is critical of various forms of “globalism” and internationalism.”

When I was researching my first book, the U.S. Business and Industry Council was the only organization that had a written plan to save American Manufacturing.

I introduced my book as a speaker at the Del Mar Electronics Show in San Diego County, California on May 6, 2009, and had my book on display at my company’s booth at the show. One of the first persons to buy my book was Adrian Pelkus, President of contract manufacturer, A Squared Technologies.  He was also the informal leader of the steering group running the San Diego Inventors Forum.  He invited me to the next SDIF meeting which I attended, and then invited me to join the steering committee, which I did.  After reading my book and endorsing the purpose and ideas I presented in my book, the steering committee changed the focus of SDIF from helping inventors source their products in China to sourcing the manufacture of their products in the U.S.

The SDIF meetings have an informal curriculum of topics to cover in a year, and I have been giving an annual presentation on how to select the right manufacturing processes and vendors to make their products.  It has a pleasure to be able to help so many inventors and entrepreneurs source their products in America.

My connections to theses heroes led me to connections with many other people and organizations who became part of my second set of heroes after my book was published.  I will write about these people in My Heroes Part Two. 

China RX Exposes Risks of Dependence on China for Medicines

Tuesday, November 26th, 2019

After her presentation at the Made in America trade show last month, I met Rosemary Gibson, co-author with Janardan Prasad Singh of China RX, published in 2018. China RX is an expose of the pharmaceutical industry just as Death by China by Greg Autry and Peter Navarro was an expose of the general manufacturing industry. China RX describes how the pharmaceutical industry has transferred the manufacturing of generic drugs to China, which has resulted in great risk to the health of Americans as well as a substantial risk to our national security.

If you take prescription drugs, over-the-counter medication, or vitamins, then this book is a must read for you. I was horrified to learn that both of my blood pressure medications (Amlodipine and Lisinopril) are produced in China. Would you believe that 80% of all ingredients of pharmaceuticals and 100% of ascorbic acid are now made in China according to Ms. Gibson’s presentation.  We are talking about antibiotics, birth control pills, antidepressants, pain relievers, not to mention drugs that treat HIV/AIDS, cancer, bipolar disorder, and epilepsy. The list even includes antidotes to Ebola and Anthrax. Doesn’t that frighten you?

The authors immediately capture your attention with the story of one of the victims of the contaminated heparin blood thinner scandal of 2008, Bob Allen, MD.  Heparin is routinely given to patients to prevent the formation of blood clots in the blood vessels, but in his case, the contaminated heparin caused blood clots leading to such a massive heart attack that his heart completely failed, and they had to remove his heart and hook him up to an artificial heart until he could have a heart transplant. Unfortunately, the heart transplant three months later didn’t succeed, and Dr. Allen’s death became another statistic of the 246 reports “made by healthcare professionals to the FDA about deaths associated with heparin from January 1, 2008 to May 31, 2008.” However, “As with all reports it receives, the agency makes no claim of certainty that a death was caused by a drug.”  

How did the pharmaceutical industry start sourcing pharmaceuticals in China? In Part II, “Pivot East:  How it Happened,” the authors document the complex chain of circumstances that led to China becoming a major source of pharmaceuticals.  The story is similar to what was described by the authors of Death by China. Once a patent for a drug ends, the manufacture of generic versions to that patented drug begins. Competition reduces the price of the drug sometimes to the point that the original manufacturer can no longer compete in producing the drug. In order to retain any market share, the original manufacturer may seek to reduce manufacturing costs by subcontracting the manufacture of the drug to an outside source.  Due to lower costs of labor and other costs of doing business, China became the source of choice. This outsourcing benefitted American pharmaceutical companies to begin with, but in the long-run has led to the decline of the American pharmaceutical industry resulting in closed plants and loss of jobs.

The authors point out that corporate America, and particularly multinational corporations, focus on short-term, profit-driven outcomes whereas China focuses on long-term outcomes. When American companies source production of goods or pharmaceuticals, they are essentially transferring the technology and know-how to Chinese vendors. The outcome for such pharmaceutical companies as Baxter, GlaxoSmithKline, Johnson & Johnson was that their Chinese vendors began to produce their own brands to compete with their former customers. As they have done with other manufactured goods, Chinese pharmaceutical companies began to flood the U. S. market with lower cost drugs driving prices down to the point that American companies stopped producing certain medications. For example, the authors state that the last plant making aspirin in the U. S. closed in 2002.

You might be asking yourself, why doesn’t the Federal Drug Administration put a stop to importing drugs and medicines produced in China? In Chapter 9, “Are Drugs from China Safe,” and Chapter 10, “Made in China, Sue in America? Good Luck” the authors outline the complex factors that prevent the FDA from preventing this from happening. 

In chapter 11, “The Perfect Crime,” the authors state: “A poorly made or deliberately contaminated prescription drug is a perfect crime. It is hard to detect. Manufacturers keep the public in the dark. Regulators are tight-lipped so they don’t offend manufacturers. Perpetrators are rarely caught. Most victims are unaware.” They outline how the underfunding of the FDA is a major source of the problem. In fact, in 2014, there were “Only two full-time FDA staff members are assigned to work in the agency’s office in China to inspect drug-manufacturing facilities…”  While funding has been increased since then, the authors conclude that “outsourcing of America’s medicine making is so complex it seems impossible to ensure that they are safe.”

Chapter 12, asks the question “Where does the Secretary of Defense procure his medicine?  You would hope that the answer would be made in America. The authors write, “They must be made in the United States or in an approved country according to the Federal Trade Agreement Act (TAA) of 1979. China is not a designated country. The TAA allows for exceptions when no other source is available…” Thus, when the authors contacted the Pentagon to see which drugs were made in China due to lack of availability, “A spokesperson replied that the department has had to buy thirty-one prescription drugs from China.” The same is true for the Veterans Administration that provides healthcare for all of our veterans and their families.

In chapter 13, The authors do an outstanding job of showing the danger to our national security. by being dependent on China as a source of vital medicines and medical devices. They quote Dr. Goodman, dean of the Milken Business School of Public Health at George Washington University, saying, “It is a matter of national security that we have the essential drugs we need…I think it is time for an examination, for some of the most critical drugs, and it’s not just drugs, medical supplies, masks are all made overseas. Do we need to think about having at least some resilient manufacturing capacity built in this country?”

The book concludes with the authors’ ten-step plan to bring the pharmaceutical industry home. You need to read this for yourself.  Relying on China for the bulk of our medicines and medical supplies makes about as much sense to me as if we had bought these products from the Soviet Union during the Cold War. China has not become the more market-oriented or more rule of law country that some hoped would happen. They have changed from producing commodities to going after advanced technology production in pursuit of their plan to become the Super Power of the 21st Century. China could bring the U.S. to its knees and achieve their goal by simply disrupting the supply of critical drugs to America. Medicines are essential to life. Think of what could happen if we had an epidemic, and China withheld the antidote. Congress and the White House must take the steps the authors recommend to ensure the health of Americans and our national security