Posts Tagged ‘Made in USA’

Buy Less and Buy American for the Holidays and Beyond

Tuesday, November 2nd, 2021

Americans are already feeling the effects of supply chain shortages even before the traditional holiday shopping season starts on Back Friday, the day after Thanksgiving.  Ads by retailers are advising consumers to do their holiday shopping early to avoid not being able to get the items they want to give as presents.  Even if you buy early, holiday shopping won’t be easy this year. Since the supply chain shortage is predicted to last well into next year, the solution is to buy less and buy American.

In the article “It’s time for Americans to buy less stuff” that appeared on Vox October 21, 2021, Terry Nguyen wrote: “Instead of opting to order our Christmas presents early, perhaps now is the time to reconsider America’s great shopping addiction.”  He asks, “When the stuff we want is so hard to get ahold of, why go to such great lengths to buy it?” He opines, “Consumers have the option to not order items manufactured overseas, to source things locally from small businesses or artisans. We also have a choice that eliminates the potential for shipping or supply chain mishaps: We can just buy less.”

The rest of the article reveals that his motivation for the “buy less” recommendation is based on his concern for the environment.  He comments, “We know that our collective consumption of consumer goods, from the creation of plastic toys to the fossil fuels that ship them to our homes, isn’t good for the environment.”  He points out “The higher-income consumers among us use far more resources than the less well-off and are responsible for influencing shopping norms at large.” He asks, “Must we continue to drown in our unlimited and unfettered need for more stuff, or could we start buying less?”

Because Chinese products are so cheap, we’ve become a nation that throws things away instead of fixing them.  When small appliances cost so little, we buy a new one instead of getting the item fixed.  We are constantly bombarded with ads encouraging us to buy the newest version of a product to keep up with the latest features. Our closets and dressers become stuffed with the latest trends in clothes, shoes, and accessories.  Adopting a personal philosophy to buy less would have personal benefits in addition to environmental and societal benefits.    

Nguyen writes, “On a recent podcast, New York Times opinion writer (and Vox co-founder) Ezra Klein encouraged listeners not to think of their consumption decisions as individual or as only affecting themselves. Rather, they serve as mechanisms for ‘social, political, and moral contagion.’”

It’s not just a question of how much to buy; it’s also a question of what to buy and where you buy it. Nguyen stated,  “About 70 percent of the US economy, after all, stems from consumer spending.” Therefore, the choices we make as consumers affects our whole economy.

As a result of the shortages experienced during the early stages of the COVID pandemic, consumers are more interested in buying American, According to a June 2020 study cited in USA Today, the results of a poll by FTI Consulting showed that “40% of Americans are no longer interested in buying products that are stamped with “Made in China. Nearly 80% are now willing to pay higher prices to companies that close their Chinese factories.”  

The results of a survey conducted last summer by the Reshoring Institute showed that nearly 70% of Americans prefer “Made in USA” products and over 50% would be willing to pay more for American-made products. 

Many people may say, “I can’t find American-made products to buy.”  However, as more and more consumers choose to buy American, there are more and more products available that are “Made in USA.”  When I attended the first “Made in America” trade show held in October 2019 in Indianapolis, IN, I was amazed at the variety of products on display at the show.  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 children’s toys, clothing, cleaning products, skin care and makeup, specialty foods, and tools, toys. 

While there were the more traditional plastic, rubber, and metal fabricators that exhibit at shows like WESTEC, FABTECH, and Design2Part shows, there were also companies that probably don’t exhibit at traditional trade shows, including a company that builds roller coasters. I had the pleasure of briefly meeting My Pillow’s founder and President, Mike Lindell, after he was interviewed by radio talk show host Mike Gallagher in a studio set up on the show floor.

I had the pleasure of participating in a panel featuring the following women business owners: linens. 

  • Barbara Creighton, CEO Sarati International, Inc. — offers custom formulation formulations and private label skin care products.
  • Beverlee Dacey, owner of Amodex Products — Ink and Stain Remover liquid solution
  • Connie Sylvester, owner of ARM-LOC — producer of the ARM-LOC Water Rescue Innovation that slides onto the victim’s forearm and locks into place for a rescuer to pull the victim to safety
  • Leigh Valentine, founder of Leigh Valentine’s Beauty — offers high quality skin care, wellness and beauty products that are clinically proven

At the show, I also met the Regional Sales Manager of the Made in America store, which has a store located in Elma, NY that features over 9,000 Made in USA products. In addition, there are hundreds of products that can be purchased online at their website. 

In addition, you can also find the names of companies that make products in America at the website of The Made in America Movement.  You can search by category, such as automotive, beauty and skin care, children, clothing – men, clothing – women, footwear, home goods, kitchen, pets, etc.  

The above resources should help you be able to buy more “Made in USA” products. I encourage you to choose to buy more American-made products in the future.

 After the 2019 Made in America show, the Made in America company began publishing a weekly newsletter highlighting companies making their products in America.  I was very disappointed that the 2020 show scheduled for Detroit, MI and the 2021 show scheduled in Louisville, KY had to be canceled because of the COVID pandemic.  I am looking forward to attending the 2022 show in Louisville, Kentucky on Oct. 6-9, 2022. Put the date on your calendar and plan to attend.

When we choose to buy “Made in China,” we create jobs in China, cause job loss in the United States, and provide China the money to build up their military. When we choose to buy “Made in USA,” you can be sure you’re getting American quality and not a cheap, foreign knock-off. Buying American increases the demand for domestic products, which creates more higher paying jobs in America, and puts more money into the national budget. In addition, every manufacturing job generates several other jobs that support the primary manufacturing employee. It also reduces our imports and encourages more exports, which would reduce our trade deficit and reestablish balance in American trade. Most importantly, we reduce our overdependence on China every time we choose to buy American. We cannot remain a free nation if we are not self sufficient in making the products needed for the health, safety, and national defense of our country.

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CPA Annual Trade Conference was a Virtual Success

Wednesday, April 7th, 2021

The Coalition for a Prosperous America held its annual trade conference virtually for the first time on March 23 – 26, 2021. I had the pleasure of attending the annual trade conference in person six years in a row when it was held in Washington, D. C., but last year’s conference had to be canceled on short notice because of COVID shutdowns.  This year’s virtual conference was free to all CPA members and the program ran from 11 AM – 4 PM ET each day. The conference was a huge success because of the valuable content of the sessions, lack of technical glitches, and Melissa Tallman’s hard work.

On the first morning, CEO Michael Stumo and Board Chairman Zach Mottl of Atlas Tool welcomed everyone and gave an overview of the conference.  Michael Stumo outlined the following CPA’s priorities for 2021:

  • Promote reshoring of pharmaceutical and health care products
  • Fix overvalued dollar
  • Support customs enforcement vs. lawlessness
  • Create model tariff schedule to increase tariffs across the board  
  • Support decoupling from China
  • Focus on domestic production of energy, oil, gas, and renewables, such as solar
  • Continue Job Quality Index, now licensed to Bloomberg and Yahoo Business
  • Show how job quality affects minorities
  • Support reshoring of semiconductors
  • Support Country of Origin Labeling (COOL) for beef, pork, and online sales

The first session was a panel on Reshoring Healthcare, moderated by Rosemary Gibson, author of China RX.  Panelists were, Eric Edwards, Phlow Pharmaceuticals, Usman Ahmed, Nexus Pharmaceuticals, Jon Toomey, CPA Government Relations Director, and Rep. Vicky Hartzler (R-MO), pre-recorded.

Rep Hartzler said in October 2019, she and Rep. John Garamendi (D-CA) introduced H.R. 4710, the Pharmaceutical Independent Long-Term Readiness Reform Act. “The legislation requires the Department of Defense to identify the vulnerabilities faced by our country’s dependence on Chinese pharmaceuticals, and to only purchase American-made raw materials, medicines, and vaccines for the military.” While the bill wasn’t passed in the last session, they were able to get part of it into the NDAA for 2021.

Eric Edwards said he founded Phlow last year as a public benefit corporation to use advanced manufacturing technology to produce critical and essential drugs using strategic partnerships with Civica Rx, Virginia Commonwealth University’s Medicines for All Institute, and AMPAC Fine Chemicals to make chemical precursor ingredients, active pharmaceutical ingredients (APIs), and finished dosage forms for over a dozen essential medicines to treat hospitalized patients with COVID-19-related illnesses.

He said, “In May 2020, we were awarded federal funding of $354 million for advanced manufacturing of America’s most essential medicines from BARDA, ASPR, and DHHS  [Biomedical Advanced Research and Development Authority (), part of the office of Assistant Secretary for Preparedness and Response (ASPR) at the U.S. Department of Health and Human Services]  We now have 20 employees and will be up to 50 by mid-year, ramping up to 350 by next year when we are in full production.”

Usman Ahmed shared that Nexus was founded in 2003 by his parents in Lincolnshire, Illinois, using contract manufacturers in the United States and Europe difficult-to-manufacture, high-quality specialty and generic drugs. However, when critical drug shortages became apparent at the start of the COVID pandemic, they made plans to build their own manufacturing plant in Pleasant Prairie, WI. When the plant opens soon, they will shift some of the manufacturing in-house to make medications including those used in critical care, cardiac care and the central nervous system.

Rosemary Gibson said that the research for her book revealed that 80% of pharmaceuticals are made in China, so there is a critical need to reshore.  Last October, the FDA published a list of 227 drug and biological product essential medicines, as well as a list of 96 device medical countermeasures.

The next session was “How Can a Currency Policy Contribute to ‘Build Back Better” Industrial Strategy,” moderated by CPA board member Marc Fasteau.  Panelists were, Joe Gagnon, Senior Fellow at Peterson Institute for International Economics, Brian O’Shaungnessy, Chairman of Revere Copper, Jeff Ferry, CPA Economist, and Robert Scott, Senior Economist and Director of Trade and Manufacturing Policy Research at the Economic Policy Institute.

Jeff Ferry stated that the value of the U.S. dollar has gone up by 30% since 2013, and the overvalued dollar depresses our economy and increases our trade deficit. Each one-billion-dollar trade deficit costs 6,000 jobs, so our 2020 deficit of ___ cost four million jobs.  Goss capital inflows in 2020 were $40 billion. The dollar is currently overvalued by 24.6%.  If the dollar was devalued by 6%/year, it would achieve trade balance in four years and add 3.7 million jobs and add 1% to the national GDP.

Brian O’Shaughnessy said that Revere was founded by Paul Revere in 1801 so may be the oldest company in the U.S. The Revere line of cookware was sold off in 1989, so now Revere makes copper sheet, plate and strip for industrial applications.  He said, “all of our principal competitors have gone bankrupt because of overvalued dollar making it difficult to compete in the global marketplace, and foreign competition has prevented investment.”

Joe Gagnon stated that the trade deficits prove that we have an overvalue dollar, and the dollar has been overvalued for a long time.  We need to have a countervailing currency intervention to address the overvalued dollar.  Other countries are buying U.S. currency to build dollar reserves, and the U.S. could buy foreign currencies.  We could also tax foreign purchases of U. S. dollars.

Rob Scott discussed past actions to rebalance currency and said that from 2000 – 2013, foreign government currency manipulation contributed to the problem and from 2014 to the present, private investors buying dollars and other U.S. assets have added to the problem.  He said, “Action is needed now to rebalance the overvalue dollar to create good paying jobs for non-college graduates.  The simplest way is to charge a tax on net purchases of assets” as proposed by the Market Access Charge that CPA has endorsed.

The first day ended with a report by CPA Government Relations Director, Jon Toomey, giving an inside view of what to expect in 2021. Future articles will cover the rest of the conference.

The major sponsors for the conference were:  MFGgear™, The Consilio Group, IT Guidepoint, SK International, and Amodex. Other sponsors were Liberty Tabletop, MadeinAmericaAgain.org, MadeinAmerica.com and my book Rebuild Manufacturing – the key to American Prosperity.

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Buying “Made in China” May Support Slave Labor

Tuesday, September 22nd, 2020

One of the consequences of President Clinton’s granting China Most Favored Nation status and allowing them to become a member of the World Trade Organization is that China took over production of consumer goods previously made in the USA. As a result, the consumer products you buy that are “Made in China” may be made by slave labor.

The Global Slavery Index published by the Minderoo Foundation “estimates that on any given day in 2016 there were over 3.8 million people living in conditions of modern slavery in China, a prevalence of 2.8 victims for every thousand people in the country. This estimate does not include figures on organ trafficking…Much of its rapid economic development has been the result of a domestic economy specialising in the production of labour-intensive, cheap goods for export. Forced labour mainly occurs in the production of these goods, including in the manufacturing and construction sectors, as well as in more informal industries…,Other labour-intensive industries in China are also creating a demand for low-paid foreign labour. The sugarcane industry in China’s southern Guangxi province attracts an estimated 50,000 illegal Vietnamese workers. Factory towns in Southern China have been found to employ illegal workers from Vietnam on a widespread basis.”

The Index commented that “The Chinese government officially announced in November 2013 that it would abolish the Re-education through Labour (RTL) System, in which inmates were held and routinely subjected to forced labour for up to four years. However, a 2017 report by the US-China Economic and Security Review Commission alleges that China still maintains a network of state detention facilities that use forced labour.”

The purpose of the U.S.-China Economic and Security Review Commission is to monitor, investigate, and submit to congress an annual report on the national security implications of the bilateral trade and economic relationship between the United States and China, and to provide recommendations to Congress. If you read a chapter or two from any of the reports from 2017 – 2019, you would realize that Congress is not doing enough to address the threats China poses to the U.S.

In the staff research report, “U.S. Exposure to Forced Labor Exports from China,” Alexander Bowe, Research Fellow, write, “China maintains a network of prison labor facilities that use forced labor* to produce goods intended for export—a violation of U.S.-China trade agreements and U.S. law. U.S. officials continue to face considerable difficulty in combating exports of these forced labor products, since cooperation from Chinese interlocutors has remained at low levels for years. U.S. Immigration and Customs Enforcement (ICE) agents have not been permitted to make site inspections in China since 2009…”

In an article on June 11, 2019, the Epoch Times reported, “In undercover footage shot inside China’s notorious Masanjia labor camp, prisoners are shown hunched over work tables, with piles of wire diodes—an electronic component—on either side of a rubber mat. They do this work 15 hours a day, while being fed subsistence meals and receiving a pittance or no pay at all. Some inmates, exhausted, are shown lying down to sleep under their work tables.”

Another Epoch Times article of August 25, 2020, states, “For three years on and off, Li Dianqin worked for about 17 hours a day making cheap clothing—from bras to trousers—in a Chinese prison. She worked for no pay and faced punishment by prison guards if she failed to meet production quotas. One time, a team of about 60 workers who couldn’t reach their quota were forced to work for three days straight, not allowed to eat or go to the bathroom. The guards would shock the prisoners with electric batons whenever they dozed off.”

On March 1, 2020, the Australian Strategic Policy Institute released a report that stated, “Since 2017, more than a million Uyghurs and members of other Turkic Muslim minorities have disappeared into a vast network of ‘re-education camps’ in the far west region of Xinjiang…This report estimates that more than 80,000 Uyghurs were transferred out of Xinjiang to work in factories across China between 2017 and 2019, and some of them were sent directly from detention camps.”

The report explains, “Under conditions that strongly suggest forced labour, Uyghurs are working in factories that are in the supply chains of at least 82 well-known global brands in the technology, clothing and automotive sectors…”  The whole list is too long to publish in this short article, but it includes: Amazon, Apple, BMW, Calvin Klein, Carter’s, Cisco, Dell, General Motors, Google, Hitachi, HP, L.L.Bean, Mercedes-Benz, Microsoft, Mitsubishi, Nike, Panasonic, Polo Ralph Lauren, Puma, Samsung, Sharp, Siemens, Skechers, Sony, Toshiba, Victoria’s Secret, and Volkswagen.

It is noted that “ASPI reached out to these 82 brands to confirm their relevant supplier details. Where companies responded before publication, we have included their relevant clarifications in this report. If any company responses are made available after publication of the report, we will address these online…a small number of brands advised they have instructed their vendors to terminate their relationships with these suppliers in 2020.” The full report can be downloaded here.

On August 13, 2020, The New York Times updated a visual investigation revealing that “As the coronavirus pandemic continues to drive demand for personal protective equipment, Chinese companies are rushing to manufacture the gear for domestic and global consumption. A New York Times visual investigation has found that some of those companies are using Uighur labor through a contentious government-sponsored program that experts say often puts people to work against their will.”

The next time you are ready to buy an article of clothing or a pair of shoes “Made in China,” think about what the working conditions were like for the workers who made these items. Remember that “Made in China” could mean being made in prison by slaves or forced labor at private companies. Avoid buying from online websites as much as possible as current law doesn’t require information on where a product is made. Choose to buy Made in USA whenever possible. Take a look at the variety of products available at these websites:  www.madeinamericastore.com, www.buydirectUSA.com, and of course, www.themadeinamericamovement.com, which publishes my articles.

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Why Software Should be Made in USA

Tuesday, September 1st, 2020

Our modern world runs on computers and the software that controls them.  Software makes our computers usable for such activities as word processing, accounting, engineering design, production planning, Enterprise Resource Planning (ERP), communication, CGI, 3D printing, teleconferencing, and videoconferencing, not to mention the thousands of Apps for iPhones and Android phones. Software controls many functions of automobiles, trains, boats, ships, and airplanes. If software fails, it can mean the loss of life.  This is why is just as important for software to be Made in USA as it is for manufactured goods.  It is also important for software to be developed in the USA so we can make sure that there is no embedded malware, spyware, or backdoors.

My own manufacturers rep sales agency has been computerized since 1988, and I couldn’t function without my systems. I have also been participating in teleconferencing since 2011 for monthly meetings of  the Coalition for a Prosperous America and giving webinars since 2013 after publishing my second edition of Can American Manufacturig be Saved? Why we should and how we can in 2012.  I have used a variety of programs for videoconferencing, such as Cisco’s Webex, www.GotoWebinar.com, and www.vimeo.com.  Earlier this year I gave a webinar using Zoom. 

After the COVID-19 pandemic hit and shutdowns on nonessential businesses went into effect, many of my customers and prospects started working from home. Many of my customers are in the defense and military supply chain, and my contacts are purchasing agents and engineers. My contacts began to tell me that they were participating in staff meetings using Zoom. The meetings were most likely discussing current contracts and new products in development, but may have included proprietary or classified material.

As the months went by, it became more and more common to hear about Zoom meetings.  I began to wonder how Zoom had taken over the marketplace for videoconferencing from all of the other programs I had previously used. Then, one of my business associates told me that Zoom was allowing people to use its teleconference software for free.  I also heard that Zoom was a Chinese company, but I learned that is not true when I checked it out.

According to Wikipedia, “Zoom Video Communications, Inc. (Zoom) is an American communications technology company headquartered in San Jose, California…Eric Yuan, a former Cisco Webex engineer and executive, founded Zoom in 2011, and launched its software in 2013.”

On April 15, 2020, CNBC reported “Co-founder and CEO Eric Yuan, who previously worked on the Webex video calling product that Cisco acquired in 2007, is the largest individual shareholder of Zoom with 3.9% of the stock’s outstanding shares. He emigrated from China in 1997, when he was 27, CNBC previously reported, but he is a U.S. citizen, according to a December regulatory filing.” The concern about China is probably because CNBC also reported “Zoom’s product development team is based “largely” in China, and it operates research and development centers in that country, according to the company’s most recent annual report.”

Wikipedia explained its exponential growth: “During the COVID-19 pandemic, Zoom saw a major increase in usage for remote work, distance education, and online social relations. Thousands of educational institutions switched to online classes using Zoom. The company offered its services for free to K–12 schools in many countries.”  Chinese companies often sell products at or below cost to take over market share, so Zoom may be following this example. But, I don’t know how any company can afford to give away its product for free unless it is receiving funding from another source.

Regarding Zoom, Wikipedia states “Its software products have faced public and media scrutiny related to security and privacy issues.”  These criticisms cover “security lapses and poor design choices” and “its privacy and corporate data sharing policies.”

An article titled, “Zoom security flaws and Chinese links make US authorities nervous,” on Telecoms news of April 6, 2020, clarifies the connection to China, stating, “the software appears to be developed by three companies in China, all known as Ruanshi Software, only two of which are owned by Zoom. The ownership of the third company, also known as American Cloud Video Software Technology, is unknown. The article states “700 employees are currently in China, which is not unusual as it can save on salaries in comparison to the US, though it does open up the firm to pressure and influence from the Chinese Government.”

This same article reported that Zoom has servers in China that were used by mistake during the initial surge of usage after the COVID-19 pandemic struck. The article’s author, Jamie Davies wrote:

“By default, all participants’ audio and video in a Zoom meeting appears to be encrypted and decrypted with a single AES-128 key shared amongst the participants. The AES key appears to be generated and distributed to the meeting’s participants by Zoom servers. Zoom’s encryption and decryption use AES in ECB mode, which is well-understood to be a bad idea, because this mode of encryption preserves patterns in the input.”

These encryption keys could also be distributed through Chinese servers, which is a bad idea for anyone as companies can be legally compelled by the Government to hand over these keys. Zoom has said this oversight has been corrected and no international meetings will be routed through Chinese servers, but the damage may well have already been done.”

As a result of these concerns, Wikipedia states, “In March 2020, New York State Attorney General Letitia James launched an inquiry into Zoom’s privacy and security practices; the inquiry was closed on May 7, 2020, with Zoom not admitting wrongdoing, but agreeing to take added security measures. Also, in May 2020, the Federal Trade Commission announced that it was looking into Zoom’s privacy practices.

While there is no evidence of wrong-doing on the part of Zoom as of this writing, the fact that their programming is said to be done in China raises troubling security concerns, as programmers in China could easily be pressured by their government to put back doors into the software they write. This is why it is as essential to our national security to keep computer software development in our own country, just as it is important to keep drug development and medical equipment manufacturing in our own country.

Until the FCC investigation is concluded, some security experts are recommending that the President issue an executive order prohibiting the use of Zoom by government agencies, as well as defense contractors to insure no classified or proprietary information is compromised.

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