What is the U.S. outsourcing more of than ever before?
As much as 70% of aerospace parts are now imported, which used to be as much as 100% of plane parts were made in the USA not too long ago. The U.S. shipbuilding and repair industry has declined dramatically, along with other fundamental industries like machine tools.
This isn’t news to founder of the Made in America organization, Don Buckner, who has been worried about the exodus of a strong U.S. manufacturing base since 1997 – before it really even started. However, many are finally realizing the situation we are in as a nation.
The COVID crisis showed how much we rely on other countries for such important products, like medical supplies and PPE. Also, technology and clothing manufacturing industries are incredibly vulnerable and must be rebuilt.
US Domestic Policies: Uncoordinated and Inefficient
For example, Tesla and General Motors, the most innovative American firms, no longer qualify for national consumer subsidies. Similarly, Department of Energy subsidies and loans for PEV and component producers are mostly no longer available. And US policy has never offered much meaningful assistance to companies interested in mining and processing raw materials in the United States, even materials crucial to PEVs or national security.
Keith B. Belton, John D. Graham, and Suri Xia, “‘Made in China 2025’ and the Limitations of US Trade Policy,” SSRN working paper.
Additionally, a recent report published by the Information Technology and Innovation Foundation, Boston University Institute for Sustainable Energy, and Fraunhofer USA’s Center for Manufacturing Innovation, details how the United States can rebuild a robust domestic manufacturing sector and tackle climate change by leveraging its considerable strengths in science, technology and innovation.
Buying American Made Creates a Circular Economy
Since $2.89 is the return on a dollar spent on U.S. manufacturing, verses a loss of $0.45 per dollar spent on an import, it only makes sense that’s is realistic to rebuild the infrastructure needed for a modern U.S. supply chain.
Mr. Don Buckner has believed tariffs have been the answer for decades and we’ve just now implemented them in the last few years in a heavy handed way to combat China’s domination. Fortunately, those tariffs have stayed in place for the most part, and there is more, new legislation than ever before, in reference to Buy American bills.
But protecting industry is critical no matter which way it’s done. Write your Representatives and stress the importance of U.S. Manufacturing strength to circle the dollar here rather than sending it overseas.