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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.

 

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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.

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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 vs. fair trade debate. His 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. 

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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  

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Women Lead Made in America

Tuesday, November 12th, 2019

Few people are aware that more than 11.6 million firms are owned by women, employing nearly 9 million people, and generating $1.7 trillion in sales as of 2017.  In fact, women run businesses are helping to lead a resurgence in American manufacturing.

Many women-run businesses participated as exhibitors in the Made in America show, and as I mentioned in my last article, I participated as a panelist for the Women Leading America Made session that featured five women running their own American-made businesses. Moderator Rose Tennent asked each of us to briefly describe our businesses.

Barbara Creighton, CEO of Sarati International, Inc. started her company in 1992 in south Texas to make private label prescription drugs, proprietary drugs, and skin care products. She said, “We develop custom formulations and then private label them. We make products like you would purchase, and we private label them. We are woman owned and woman run.”

Beverlee Dacey, owner of Amodex Products, said that her parents started the company in the early 1970s, and now she runs it.  “We make a soap-based product that is an ink and stain remover liquid solution and do our own manufacturing in Bridgeport, CT. Amodex is the only stain remover recommended by the manufacturer of Sharpie to remove Sharpie ink from anything.”

Connie Sylvester said, “I am an inventor and founder of two companies, Water Rescue Innovations and Mommy-Armor USA.  I founded my first company six years ago in Duluth, MN to make the ARM-LOC water rescue device that slides onto the victim’s forearm and locks into place so that a rescuer can pull the victim to safety.  I sell to a male-dominated industry of first responders, fire-fighters, police, and rescue squads. I’m often the only woman telling men how to rescue people.”

She shared how she started her second company, Mommy Armor USA. On February 14, 2018, after she dropped off her son at school, she got a text message saying there was a school shut down due to a shooter. She was thankful that it wasn’t at her son’s school, but her heart broke for the 17 parents that lost their children at Parkland in Broward County, Florida.  She said, “There was a problem, and I came up with a solution. I had some bullet proof material and suggested to my son that I could make a bullet-proof backpack, but he said they had to leave their backpacks in their lockers. I asked what they got to take to class, and he said they get to take their 3-ring binders. My other son said they get to take their daily planners. So, I got the idea of making a bullet-proof cover for the 3-ring binder and the daily planner.”

She then demonstrated how the bullet proof daily planner could be attached to the 3-ring binder and how it could be used to shield your body like armor. She is just launching the product in time for Christmas.  She has the Mommy Armor fabricated by a company in the hills of the Appalachian Mountains, Capewell Aerial Systems LLC.

Leigh Valentine, founder of Leigh Valentine’s Beauty said that she went through a terrible divorce, lost everything, slept on the floor, and was on welfare for a while. Then, the Lord gave her an incredible idea for a non-surgical face lift product made from plant extracts that dramatically firms skin and takes away wrinkles.  She was on the QVC shopping network for 14 years and sold over 40,000,000 products.  She said many people have told her she could save money by buying from China, but she said, “All of my products are made in America, and I try to buy as much as I can in America.”

I shared that when I started my sales agency 34 years ago, I chose to only represent American manufacturers.  I was a woman in a man’s world because I started out selling castings, forgings, and extrusions. No buyer or engineer I saw had ever been called on by a woman.  I visited all of the companies I represented and learned everything I could about their manufacturing so I would be informed. When I saw what was happening to manufacturing and how it was being decimated, I started writing blog articles and reports and then wrote my book. Can American Manufacturing be Saved” Why we should and how we can that came out in 2009. A second edition came out in 2012, and I have written over 300 articles in the past ten years. We have saved American manufacturing, and now we need to rebuild it. I showed everyone my latest book, Rebuild Manufacturing – the key to American Prosperity.

Rose asked us to what message we would give to a woman who has an idea for a product or who has already started her own business.  Leigh said, “You really have to fight to bring your product to market. I partnered with some people that I wish I never had partnered with.” She would advise women that if they need a partner “be careful to pick a partner that has the same values and vision you do. They will steal from you and lie.” In the end, it cost her $6 million to end the partnership.

Beverlee said, “When you run a company, don’t think you are ever going to reach an equilibrium where you don’t have problems. Every single day there are stress and problems. Then you realize that the problems don’t go away, they just get bigger and worse.  It is normal.  It is part of what you do when you run a company. The other lesson I have learned is don’t grow too fast. There is only so much you can do and only so much you can do well. We are only a five-person company. When we got picked up by Lowes, we made the decision not to go with Home Depot because we wanted to be a good partner to Lowes.”

Barbara said, “Don’t believe all the lies that are being sold to young people. There is no a glass ceiling. Men created the glass ceiling to keep women down. I have never felt held back by a glass ceiling. I was the first women on the west coast to sell chemicals, and the first women in land development. The ceiling is only created by you.”

Connie said, “Don’t set the bar too low and never give up.”  She did high jumping like her brothers and they never lowered the bar for her even though she is only 5 ft. 3 in.  She actually coached track and field for five years.

I said that I would advise a woman to never stop learning. “I recently got my certificate in Lean Six Sigma to be of more service to my customers. Service is all I have to offer — service to the companies I represent and service to my customers.  When I started my company, I chose a motto:  you achieve your goals by serving others.”

Rose commented that there seems to be more comradery at this trade show and asked us to share what we thought about the show.

 Leigh said, “It is such an honor to be here. I am thrilled and honored to be here. This is a movement, and we’ve got to stick together and support each other’s businesses.”

Connie said, “This is like a family. I was actually at another Expo here and saw an announcement on the TV in my hotel about this show, and I knew I had to be here.  When I walked the aisles, I knew I had found my people. Everyone of these people know what it takes to make products in America.  We could have hit the easy button and made things cheaper in other countries, but we chose to make our products in America.”

Barbara said, “In this incredibly divisive world, we need to help one another. I am extremely excited about being able to share joy. I just try to lift others up. We are Americans and are proud to be Americans, and we want to have joy in a country that has given us amazing opportunity.”

Beverlee said, “The Made in America movement has been around for awhile now, but what I have enjoyed the most is that for the first time we have a “hubable” wheel where there were a lot of silos. All of us here are together in this.  It’s not a trade show, it’s a forum.”

I said, “This show is a dream come true for me. Most people don’t realize that manufacturing is the foundation of the middle class. We lose manufacturing and we lose the middle class. We’ve had wage stagnation for 20 years, and my children aren’t as well off as I was. We have to get the message across to our children and grandchildren of how important it is to make things in America again. I heard it said that there are only three ways to create tangible wealth: “Grow it, mine it, or make it.” We need to create wealth for our country by making things in America so we can have a safe and free country. After our panel session ended, we said that we would look forward to seeing each other again at the 2020 Made in America Show. We know it will be even bigger and better, so don’t miss it.

Posted in Innovation, Made in America, Manufacturing | No Comments »

Made in America 2019 Trade Show Sparks New Revolution

Tuesday, October 22nd, 2019

It was a dream come true to see so many innovative companies making products in America when 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. Not only was it the largest-ever public showcase of American made products, the focus was different than any other trade show I’ve ever attended. 

My plane from San Diego arrived too late Thursday to attend the gala kickoff party where the band Big & Rich and special guest Ted Nugent entertained the audience. While at the show, John Rich announced his generous donation of over $50,000 to Folds of Honor, a nonprofit organization that provides educational scholarships to families of military servicemen and women who have fallen or been disabled while on active duty in the U.S. Armed Forces.

Fox News sent Fox & Friend’s correspondent, Carley Shimkus, to report live from the show on Friday and Saturday, and she did an update every hour (watch the videos at foxnews.com).

On Friday, opening ceremonies began at 9:00 AM, an hour before the show opened to the public. After prayer was offered, a color guard presented the flag for saluting, and the national anthem was sung anthem, the audience was welcomed by show’s founder and chairman, Don Buckner, and COO, Brad Winnings, and Indianapolis Mayor Joe Hogsett welcomed everyone.

Then, Lloyd Wood, Deputy Asst. Secretary for textiles, Consumer Goods and Materials made brief comments on behalf of the Trump Administration, noting that 500,000 manufacturing jobs have been created since the beginning of 2017, there are 7,000,000 current job openings, and 300 companies of the National Council for American Workers have signed a pledge to expand apprenticeships  He also mentioned that President Trump just signed trade agreement with Japan and is working on trade agreement with United Kingdom.

Economist Stephen Moore, was the featured pre-show speaker. Highlights of his comments were:  average income has increased by about $5,000 per year since 2017, unemployment is down to 3.4%, and Black and Hispanic unemployment is at record low.  Federal tax revenue was higher than any previous year; regulations are down by 34%, yet air quality is better as CO2 emissions have been reduced by 70-80%. Also, for the first time, we are a net exporter of oil and gas.  

Radio talk show host Mike Gallagher, one of the most listened-to radio talk show hosts in America, broadcast his show Friday at the booth of Mike Lindell of My Pillow fame. Mr. Lindell had a booth for his new venture, My Store, which will feature only American-made products for online sales. He was one of the guests on the show along with economist Stephen Moore and Mike Lindell.

After the show opened, there was a simultaneous schedule of speakers from 11:00 AM to 3:00 PM.  Harry Moser, founder and president of the Reshoring Initiative started off the sessions with “What’s Happening with Reshoring.”  By using the TCO Estimator, nearly 3,000 companies have reshored manufacturing to America since 2010 creating nearly 800,000 jobs.  Next, marketing guru, Steve Schwander discussed “How to listen to the customer.”  After lunch, the afternoon sessions were “Protecting your IP from abuse in China” by Amy Wright and “Stay out of trouble when making Made in the USA claims” by Russell Menyhart. Mark Andol, CEO of General Welding & Fabricating, concluded the afternoon session by telling how his Made in America Store has reached big milestones in its mission to save and create American jobs by boosting US manufacturing for nearly a decade. His store in Elma, NY features over 9,000 Made in USA products.

I didn’t spend my time listening to these presentations as I wanted to see the displays by exhibitors.  Outside of the Consumer Electronics Show in Las Vegas, I’ve never been to a show with so much variety of consumer products.  Of course, most of the products exhibited at CES are made offshore, whereas all of these products were made in America.  It was a pleasure to see American made bedding, mattresses, furniture, rugs, draperies, flatware, dinnerware, cook ware, cabinets, and other kitchen goods. These are all industries that some said were lost forever.  There were also bicycles, sports equipment, tools, and toys.  It was especially nice to see Made in America apparel and make up.

While a few of exhibitors probably exhibit at county fairs for their homemade crafts and food stuffs like candy, popcorn, pickles, and sausage, other exhibitors were the more traditional plastic, rubber, and metal fabricators that exhibit at shows like WESTEC, FABTECH, and the regional Design2Part shows. There were also companies that probably don’t exhibit at traditional trade shows, including a company that builds roller coasters.  With about 300 exhibits, it took me both days to completely walk the show as I stopped to talk to so many exhibitors. 

While Friday’s show ended at 5 PM for the public, it was followed by a dinner and speeches for exhibitors, sponsors, and VIP’s.

First, Don Buckner shared his story of how and why he started the Made in American show.

Mr. Buckner said, “I started a company in my garage 20 years ago and recently sold it.  Now I have the resources, capitol, and desire to finally do something.  We decided to make a difference. So, we came up the idea of a trade show in Indianapolis. We rented the Indianapolis convention center for the first week of October to bring 700-800 manufacturers and celebrate U.S. manufacturing in a way that’s never been done before. If you draw a circle around Indianapolis, about a 200-mile radius, probably about half of our manufacturing is in that circle. And the other thing is the heartland of this country truly does believe in buying American-made products being pro union, pro-labor and blue collar.  The name and brand of Made in America has been around for over 100 years. It has value and means quality.  According to Consumer Reports, 80% of Americans still want to buy an American made product, and of those 80%, 60% of those are willing to pay a premium for an American product….” 

Next, Wahl Clipper Corporation, the household name in grooming, presented a $75,000 check to Jeremiah Paul, spokesperson for Wounded Warriors for the Wounded Warrior Project.

Hernan Luis y Prado, founder and CEO, described Workshops for Warriors (WFW), which is a GuideStar platinum-rated nonprofit that provides training for veterans, wounded warriors and transitioning service members to fill America’s void of qualified CNC machining, 3-D printing, welding and advanced manufacturing workers. Since WFW is located in San Diego, I’ve written three articles in the past to support his mission and goals.

Alfredo Ortiz, President and CEO of Job Creators Network, briefly explained that JCN is a nonpartisan organization whose mission is to educate business leaders, entrepreneurs, and employees and provide them “with the tools to become the voice of free enterprise in the media, in Congress, in state capitals, in their communities, and their workplaces—allowing them to hold politicians accountable to job creators and their employees.”

Paul Wellborn, President and CEO of Wellborn Cabinets, accepted the award for American manufacturer of the year on Friday night because he had to leave the show to attend the wedding of his grandson on Saturday. A whole Made in America kitchen was on display at his company’s booth. The award categories highlighted rebuilding America’s manufacturing workforce through reshoring and innovations in manufacturing techniques. The rest of the awards were presented on Saturday night.

My Pillow’s founder and President, Michael J. Lindell, ended the evening with his personal story of going from being a crack addict to becoming a multimillionaire business owner thanks to the intervention of friends and help from God. The evening event lasted until 9:30 PM and ended with a closing prayer.

There is no way to do justice to the show in one article, so my next article will cover day two of the show.

One of the video promos for the trade show said, “There was a time not too long ago when a little elbow grease and a whole lot of pride defined American made.  We were industrialists driven by determination and innovation. We set the bar for quality and ingenuity, generation after generation. Something changed — Technology, foreign influence, loss of respect for the American worker.  It cost us our jobs, factories, communities, our homes. Some called it a natural evolution.  We call is the spark of a new revolution. We are redefining the next chapter in American made history bringing prosperity to the red, white, and blue behind every man and women committed to returning our country back to its glory days of manufacturing.  We invite you to join us in this monumental revolution.  The power of change belongs to us…” 

I believe this trade show did become the spark of a new revolution and I am joining it. I made it my goal ten years ago when I published my first book, Can American Manufacturing be Saved?  Why we should and how we can to do everything I could for the rest of my life to first save and then rebuild American manufacturing to create prosperity. I am glad I am no longer a lone voice in this cause. Please join us.

Posted in Economic Development, Made in America, Manufacturing | No Comments »

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