Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
For more than 70 years, the United States has had domestic sourcing or “Buy America” laws on the books
to ensure that American-made goods and materials have preference over imported products with respect
to government procurement and infrastructure projects. Including domestic sourcing requirements in
job creating legislation would be the most effective way to ensure taxpayer dollars are used to create and
maintain jobs and manufacturing capacity to the maximum extent possible, thereby vastly improving the
stimulative effect of government spending. Under current law, domestic sourcing requirements apply to
general government procurement, materials for highway and transit infrastructure investments, projects
funded by the
America” is a proven job creation tool that is broadly supported by Congress, the American people, and
hundreds of local governments throughout the United States. Domestic sourcing laws comply with our
international trade obligations and are utilized by numerous foreign governments. For all of these reasons,
“Buy America” provisions should continue to be utilized in infrastructure and other spending bills so that
our manufacturing base can thrive and so that more Americans can earn a paycheck and contribute to the
overall welfare of the nation.
American Recovery and Reinvestment Act of 2009 (the Recovery Act), and elsewhere. “Buy INFRASTRUCTURE INVESTMENT AND BUY AMERICA ARE NEEDED TO
REVITALIZE AMERICAN MANUFACTURING
The deterioration of our industrial base, caused in large measure by a drastic shift of employment to overseas
factories, is cause for alarm as lawmakers search for answers that will result in more than just a “jobless
recovery.” To put it simply, the manufacturing sector has been disproportionately slammed by this recession.
According to the Bureau of Labor Statistics, manufacturing employment has fallen by 2.1 million jobs since
December of 2007.
Even worse, the steady and increasing decline in manufacturing in the United States has been ongoing
for a much longer period. According to an article by Richard McCormack in the January/February 2010
issue of
loss of 5.5 million or 32 percent of all manufacturing jobs since October 2000. The last time fewer than 12
million people worked in the manufacturing sector was in 1941. In October 2009, more people were officially
unemployed (15.7 million) than were working in manufacturing.”
Moreover, the nation is in a fragile and jobless recovery after the fastest and most severe economic contraction
since the Great Depression. In 2008, the country lost 2.6 million jobs; the largest loss in over sixty years. At
the start of 2009, approximately 750,000 jobs vanished in a single month and unemployment reached 10.2
The American Prospect, “Manufacturing employment dropped to 11.7 million in October 2009, a INTRODUCTION
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percent and has remained at 10 percent for the last three months with no appreciable signs of decreasing in
the short term.
Substantial federal, state, and private investment in our highway, transit, sewer, and clean energy
infrastructure, must be made if the United States is to revive our economy and create good manufacturing
jobs.
Given the dire problems the economy has experienced and continues to experience, the inclusion of domestic
sourcing requirements in an upcoming job creation bill is the smart thing to do. It would ensure that the
materials used in a myriad of infrastructure projects are produced by workers and companies in the United
States to the maximum extent possible.
produced overseas, re-employ manufacturing workers here at home, and help bring back production
capacity in sectors of our economy that have been hard hit by the brutal downturn, including the steel
industry.
It would also minimize taxpayer funds going to pay for materials Indeed, a
policies, noting that potential benefits include “
improvements that can stimulate economic activity and create jobs…”
added]. Likewise, a report released by the
2008 Government Accountability Office (GAO) study describes the benefits of “Buy America”protecting domestic employment through national infrastructure(GAO-09-36; December 12, 2008) [emphasisAlliance for American Manufacturing (AAM) in January of 2009, How Infrastructure Investments Support the U.S. Economy: Employment, Productivity and Growth
that roughly 18,000 new jobs would be created for every $1 billion in new infrastructure spending on our
nation’s transportation, energy, water systems, and public schools. To adequately meet the nation’s assessed
infrastructure needs over the next five years, the report estimates that a minimum of $87 billion per year
is needed, of which $54 billion would come from the public and $33 billion would be private investment.
Importantly, according to that report, manufacturing employment gains from infrastructure investment can
, shows increase by up to 33 percent
inclusion of strong domestic sourcing provisions.
We must recognize that we no longer live in a closed economy. Thus, substantial sums of taxpayer funding
intended for investment and job creation here at home could instead wind up going overseas into the
hands of foreign producers and governments unnecessarily unless we ensure that domestic sourcing rules
are incorporated into federal procurement for a wide range of infrastructure projects. It would be a very
unwelcome outcome for the American people if manufacturing jobs and capacity instead were created
overseas.
China, European nations, and many other foreign governments have already made commitments to heavily
invest in their industrial base, which is an important step in capturing the technology that will support
when the amount of domestic materials purchased are maximized with the 4
Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
sustained employment in the 21
now and in the years to come.
st century. We must do the same if the United States is to successfully compete BUY AMERICA ENJOYS STRONG SUPPORT
Domestic Sourcing requirements enjoy broad support from the American public and from all levels of
government. A February 4, 2009,
Manufacturing, found that 84 percent of Americans favored “Buy America” requirements in
Act
Congress adopted strong domestic sourcing requirements within
Senate provision was added with no objection in the Appropriations Committee, and on February 4, 2009,
the full Senate voted 31-65 against a McCain amendment (vote #44) to strip out the language. Meanwhile,
the House Appropriations Committee voted 55-0 to include the provision in its version of the bill.
To date, more than 500 local, state and municipal governments have passed “Buy America” resolutions of their
own, pledging to ensure that American-made materials are used to the fullest extent possible in infrastructure
projects funded by the
Harris Interactive poll, commissioned by the Alliance for AmericanThe Recovery(66 percent strongly, 18 percent somewhat) and only 11 percent of Americans opposed.The Recovery Act on a bipartisan basis. TheRecovery Act. BUY AMERICA COMPLIES WITH OUR INTERNATIONAL OBLIGATIONS
“Buy America” requirements are fully compliant with our international trade obligations.
“Major International Commitments
many exceptions to those commitments). In fact, the
provision be “
products from numerous countries with which the United States shares reciprocal trade agreements may be
used, providing a powerful incentive for countries with closed procurement systems, such as China, to adopt
reforms that promote fair, reciprocal trade.
The entire framework for international procurement rules is founded on reciprocity. Access will be granted
to our government procurement market for goods from foreign countries (under agreements like the WTO’s
Government Procurement Agreement), if foreign countries have agreed to grant U.S. goods reciprocal access.
Countries that have made no legal commitments have no legitimate expectation to access our procurement
market and otherwise could choose to under-stimulate their own economies and “free-ride” on those who
take appropriate measures. Not fully implementing “Buy America” requirements would reduce or eliminate
any incentives for the vast majority of countries that close their procurement markets to open them. Many
See Attachment” (outlining major commitments the U.S. has with other nations and theRecovery Act explicitly states that the “Buy America”applied in a manner consistent with U.S. obligations under international agreements.” To that end, 5
Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
countries that have refused to take on such reciprocal obligations have domestic-sourcing policies for their
own stimulus spending.
BUY AMERICA IS WORKING
The Alliance for American Manufacturing (AAM) has gathered numerous stories describing the success of
“Buy America” requirements in both saving or creating manufacturing jobs and capacity in the midst of a
severe economic downturn.
the attached success stories document that reflect how domestic sourcing provisions can create jobs.
See Attachment “Success Stories on page 9.” Below are two examples taken from Pennsylvania
two public transportation rail projects, funded in part by $3.7 million from the
Steelton plant is one of three rail-producing plants in the U.S. that compete with imported products. The
“Buy America” requirement ensured that workers in Steelton, Pennsylvania, that are organized by the United
Steelworkers were given an opportunity to manufacture over 125,000 linear feet of rail for Southeastern
Pennsylvania Transportation Authority (SEPTA) projects. Throughout the United States, steel plants have
been running at less than 50 percent capacity during this economic downturn. Infrastructure investments,
combined with “Buy America” provisions, have helped to avoid layoffs and to put Americans back to work.
– ArcelorMittal, a steel company, and its workers have undertaken new business resulting fromRecovery Act. ArcelorMittal’s Oregon
and expand capacity throughout supply chains for small businesses. A prime example is United Streetcar of
Clackamas, Oregon, which is building the first modern streetcars to be manufactured in America in nearly 60
years. It is set to build seven streetcars for the city of Tucson, Arizona, and another six streetcars for the city of
Portland, Oregon, as part of system expansions. The work is partially funded by the federal government – not
under the
that at least 60 percent of a vehicle contain domestic content. As a result, the work will create manufacturing
jobs for an entire network of companies, small and large, both locally and throughout the United States. For
instance, local supplier Miles Fiberglass will manufacture front and rear shell pieces for the streetcars. In 2009,
it was forced to lay off 35 workers, but it then rehired 10 workers because of new business. “Buy America”
provisions ensured that government spending helped to create new American jobs, instead of jobs overseas.
– “Buy America” provisions have the potential to rejuvenate established industries, create new ones,Recovery Act, but under the Federal Transit Administration’s “Buy America” statute, which requires NEXT STEPS
According to the White House, the
between three and four percentage points to our Gross Domestic Product (GDP) in the third quarter of 2009.
However, many economists are predicting that the impact of the
Recovery Act has already saved or created up to two million jobs and addedRecovery Act will begin to diminish in the 6
Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
middle of 2010, which could dampen the prospect of a robust economic recovery.
With unemployment remaining at 10 percent and steep job losses continuing on a monthly basis in the
manufacturing sector, Congress should immediately take additional steps to counter the negative impact
of this recession and set our economy on a path to creating the manufacturing jobs and capacity needed to
compete successfully in the 21
In this regard, Congress has already begun to act. On December 16, 2009, the House of Representatives
voted 217-212 to adopt and send to the U.S. Senate the
H.R. 2847). The bill includes $48.3 billion for infrastructure investments and includes a strong domestic
sourcing requirement identical to the provision found in the R
transparency in the process of waiving domestic sourcing requirements help to ensure that waivers, for
example, are not granted unnecessarily based on unavailability. By requiring that the waiver request be posted
online at the responsible federal agency, domestic manufacturers and their workers will be given the chance
to respond and supply American-made goods. Also, a more specific definition of manufactured goods would
help to ensure that the procurement of American-made manufactured goods occurs to the maximum extent
possible. More specifically, manufactured goods should be substantially transformed in the United States and
have domestically-sourced components accounting for a high percentage of the cost of the goods.
In addition, the House-passed
laws already on the books for the Federal Highway Administration (FHWA) and the Department of
Transportation (DOT). These amendments will apply to any new funding in a jobs spending bill as well as
to future funding under these existing statutes. They are intended to increase transparency for the waiver
process, as noted above, and also to stop the practice of avoiding application of “Buy America” requirements
to bridge projects by splitting up the project into separate pieces (i.e. segmenting). The House bill also
requires a semi-annual GAO report detailing the number and the extent of waivers to the “Buy America”
laws involving the FHWA and the DOT. Finally, funds in the
Amtrak to purchase new equipment, including locomotives and passenger cars, carry a requirement that the
manufacturing be conducted in the United States.
The House measures are good steps in the right direction and should be adopted in the Senate with the
additional improvements outlined. Also, the prohibiting of segmentation should not be limited to bridge
projects but should apply to any project.
st century.Jobs for Main Street Act of 2010 (House message onecovery Act. Improvements that create moreJobs for Main Street Act also includes improving amendments to “Buy America”Jobs for Main Street Act of 2009 provided to 7
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A C
loser Look at Buy America and Our Trade Obligations International Trade Agreements and Buy America.
America rules, as it always has, in full compliance with its obligations under international trade
agreements. It is important to note, that such negotiated trade agreements already allow for domestic
preferences under a number of circumstances. These preferences were carefully negotiated and it
would be unwise not to utilize them to the fullest extent possible, just as our trading partners do. For
example, funding for highway and transit programs is exempt under all international agreements. It
is also worth noting that the United States does not have any trade agreements with many trading
partners, including the so-called BRICK countries (Brazil, Russia, India, China, and Korea). These
issues are examined in more detail below with respect to our NAFTA and WTO obligations.
The United States will implement Buy Buy America Requirement and NAFTA and WTO.
agreements apply where the federal government provides grants and other funding to state and local
authorities for highway, transit or airport projects. Other exceptions and limitations in the WTO
Procurement Code substantially limit its application.
NAFTA Chapter 10 does not apply at all to procurements by state and local governments, including
procurements funded by federal grants, such as those made pursuant to the Federal Transit Act (19
U.S.C. App. § 1601, et seq.) and the Federal Aid Highway Act (23 U.S.C. § 101 et seq.). North
American Free Trade Agreement: Statement of Administrative Action, Chapter 10 (A) (1) (c).
Therefore, NAFTA presents no bar to a Buy America requirement being incorporated into the
stimulus legislation.
As noted, there is a big difference between Buy America statutes and the 1933 Buy American Act.
This difference matters greatly as to whether, and the extent to which, the WTO Procurement Code
( Code ) may apply or conflict with these two distinct domestic-sourcing preferences.
that the Code is an agreement that must be positively opted into by product and by governmental
As described below, neither of these1 Understand 1 The 1933 Buy American Act does conflict substantially with the Code (and NAFTA). The 1933 Act establishes a preference for
domestically-produced goods and services when a federal governmental agency/authority is purchasing them for use by the federal
government. Therefore, as the Code was designed specifically to give foreign bidders the same footing as domestic bidders, it
conflicts with the 1933 Act. However, there are exceptions in the Code which permit a preference for procuring domestic goods and
services. The main exceptions are for national security purposes and where necessary to protect health, safety, or intellectual property.
See: Art. XXIII. Also, the Code does not apply to set asides on behalf of small or minority-owned business or to certain specified
purchases by the Department of Defense. See: General Notes and Annex 1, respectively.
MAJOR INTERNATIONAL COMMITMENTS
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Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
entity. Simply by becoming a signatory to the Code the USG did not automatically bind all state and
local authorities or cover all products.
2 Importantly, the Code alone governs the obligations among WTO members in regard to government
procurement and, thus, to the extent that a Buy America preference does not violate the Code,
such preference will not violate any other WTO rule or agreement. As noted, there are numerous
limitations and exceptions to the Code s application:
First, the Code will not apply if a governmental entity has not expressly opted in. In the United
States, 13 states have not opted into the Code; thus a Buy America preference in their purchasing
decisions would not conflict and is permissible:
Second, Local governments (except for a few cities) have not opted in and are not covered by the
Code in any manner;
Third, the Code does not apply to the 37 states that opted into it when they receive federal grants
or other funding for highway and mass transit projects
related to highway and transit projects would not violate the Code;
Fourth, while certain port authorities (e.g., Baltimore Port Authority) opted into the Code, when
they receive federal grants or funds for airport projects the Code does not apply.
America preference for stimulus spending on airport projects would not violate the Code
Fifth, 12 states that opted into the Code made reservations that their purchases of construction grade
steel, motor vehicles and coal would not be covered. See: Annex 2, note 1.
There are other exceptions that apply to all 37 states that opted into the Code. The Code cannot be
read to prevent a state from applying a restriction involving general environmental quality and shall
not apply to preferences or restrictions that promote development of distressed areas and business
owned by minorities, disabled veterans or women.
3 Thus, a Buy America preference in spending4 Thus, a Buy 2 There is a positive list of federal entities (Annex 1), state entities (Annex 2), and other quasi-governmental bodies (Annex 3) to
which the Code applies. There is also a positive list of products to which the Code applies (Annex 1). Further, there are several major
export-oriented trading partners like China, India, Russia and Brazil, which are not signatories.
3 See: Annex 2, The Agreement shall not apply to restrictions [Buy America preference] attached to Federal funds for mass transit and
highway projects ).
4 See: Annex 3, note 1, With respect to these entities [port authorities], the Agreement shall not apply to restrictions attached to
Federal funds for airport projects. ).
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Neptune Technology Group, Inc. – Alabama
Despite what is said by
outside the U.S. In fact, The “Buy America” provision supports
a Tallassee, Alabama, company that supplies water metering products and automatic meter reading/
advanced metering infrastructure systems for utilities to implement system and infrastructure
upgrades in their communities. Neptune President Chuck DiLaura says, “We’re proud to say that
our company can meet the Buy American provisions of the ARRA…By keeping our manufacturing
operations here, we’re able to employ more than 580 people who work hard to ensure that our
customers receive the highest quality products and systems. Our customers will find that by complying
with the ARRA, they’ll be in a much better position to upgrade their systems, now or in the future.”
opponents of the Buy America provision, not all water equipment is madeNeptune Technology Group, Inc., WaterWorld
; May, 29, 2009; Neptune Helps Utilities Meet ‘Buy American’ Provision for Stimulus Funding Smart – California
The Sonoma-Marin Area Rail Transit Board of Directors decided on a new generation of
environmentally friendly railcars in the North Bay. Four manufacturers have indicated to SMART
that they are interested in building vehicles for this project. They include Brookville Equipment Corp.
of Brookville, PA; Nippon-Sharyo Ltd. of Japan; Siemens Corp. of Germany; and U.S. Railcar LLC of
Columbus, OH. All four have indicated they would build SMART’s fleet of about a dozen vehicles in
the United States, meeting the Federal Transit Administration’s “Buy America” requirements.
Empire Report
; July 15, 2009; SMART Picks Heavy American Railcars Val-Matic Valve & Mfg. Corp. – Illinois
Val-Matic, a leading manufacturer and marketer of check valves, quarter turn shut-off valves, air
valves, and foot valves for water/wastewater, industrial, and building applications based in Elmhurst,
IL, has announced that its products meet “Buy America” requirements and that when purchasing
its products, customers can “feel confident in meeting all provisions without sacrificing price and
delivery time.”
WaterWorld
; June 25, 2009; Val-Matic Meets ‘Buy American’ Requirements of Recovery Act Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
Buy America Success Stories
Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
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Pike Industries – Maine and neighboring states
Pike Industries, a New England construction company with operations in Maine, New Hampshire,
Vermont, Massachusetts, and Rhode Island, was awarded $31.5 million from the
complete various roadwork construction projects that will create jobs directly and indirectly through
subcontractors and increased business activity at local sawmills, hotels, fuel companies, convenience
stores, and coffee shops. Not insignificant is the fact that Pike produces its inputs domestically and
that the work funded by the
41 asphalt facilities throughout New England.
Recovery Act toRecovery Act and the “Buy America” requirement will help to support its Winnisquam Echo
; June 10, 2009; Stimulus Funds Branch Out as Road Projects Begin Portland Press Herald
; March 23, 2009; Paving Project on I-295 Putting Stimulus to Work Morning Sentinel
; March 23, 2009; Stimulus money funding I-295 work East Jordan Iron Works— Michigan
EJIW, a family owned and operated business with over 125 years of experience in the field of
infrastructure component manufacturing, is proud to announce that all of their projects are 100%
Made in the U.S.A. and compliant with the Buy America provision requirement in the stimulus
bill. EJIW has two foundries, located in East Jordan, Michigan and Ardmore, Oklahoma, a modern
fabrication facility in Youngstown, Ohio, in addition to stocking and distribution centers across the
country.
EJIW website
Schoolcraft Bridge – Minnesota
A bridge project on County Road 9 over the Schoolcraft River in northern Hubbard County,
Minnesota, is funded in part by the
a Hubbard County engineer who is overseeing the project, domestically sourced inputs, including
cement, plywood, and 55,000 pounds of reinforced steel, are being used because of the “Buy America”
requirement.
Instead of using foreign inputs, which are less stimulative for job creation, domestic steel is being
used to create 30-foot I-beams to support the bridge deck. Steel rebar is also used in the project.
The local engineer also reports that the Buy America requirements are not burdensome and are
Recovery Act and will use American-made goods. According to Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
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Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
not an impediment to the project. The project came in under budget (with $600,000 allotted, but
only $430,000 needed to complete the project). The bridge construction is moving quickly and is
complete, or nearing completion.
(
Local Contact: Jed Nardeen, Hubbard County Assistant Engineer, 218-732-3302
D-L Online; July 27, 2009; Stimulus Bridge Project Begins in Northern Hubbard County) Hubbard County website
Bridge Replacement – Missouri
An $8.5 million bridge replacement near Tuscumbia, Missouri, is being touted as the first stimulusfunded
infrastructure project. The new 1,000-foot long, 28-foot-wide bridge will replace the existing
75-year-old Osage River Bridge, which is the same length and just 20 ft wide. The bridge’s 570-foot
main span will be made with 395 tons of steel produced in the U.S. because of the “Buy America”
requirement. In total, 419 tons of steel will be used. According to bridge fabricator DeLong’s,
Inc., this job helps to keep its employees working and also benefits the steel mills that produced the
unfinished steel input.
AISC
, February, 24, 2009, Steel Bridge Kicks Off Infrastructure Stimulus Program ITT Corporation – New York
ITT Corporation announced on July 23, 2009 that they are able to meet Buy America provisions for
all of its water and wastewater products to help contractors meet stimulus requirements. With $60
billion of stimulus bill spending earmarked to support water, wastewater, and energy infrastructure
projects, ITT’s ability to manufacture, assemble, test, and research in its U.S. facilities puts it in
an ideal position to be a ready partner for infrastructure undertakings. The first of batch of BAcompliant
pumps manufactured for the Claywood Park Public Service District’s wastewater facility
in Parkersburg, West Virginia were sent out by ITT’s Pewaukee, Wisconsin manufacturing facility on
August 31, 2009.
WaterWorld
; August 31, 2009; ITT ships first products under ARRA Buy America ITT Press Release
; July 23, 2009; ITT ready to meet Buy American requirements of federal stimulus package Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
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Pamlico Sound Oyster Reef Restoration— North Carolina
The North Carolina Coastal Federation began a project on September 7, 2009 for building and
monitoring 47 acres of oyster reefs in the Pamlico Sound near Belhaven, North Carolina. Partnering
with local contractors, universities, the NC Sea Grant, and the state’s Division of Marine Fisheries,
the project is being paid for, in part, by a $5 million Recovery Act grant administered by the National
Oceanic and Atmospheric Agency.
The project requires over 54,000 tons of limestone marble to be quarried from a local site in New Bern,
NC, which will then be barged offshore from coastal Belhaven. Local raw material providers, the
local trucking and tug-boat/barge industries, and coast-based commercial fisherman will cooperate to
implement the oyster sanctuary project over the course of the next two years.
Raw materials used in
America” provision. Todd Miller, executive director of the North Carolina Coastal Federation,
projects that around 140 jobs will be created by the mining and barge loading processes alone. This
is in addition to the long-term economic benefits of commercial and recreational fishing enabled by
reef reconstruction.
Recovery Act projects must be procured in a manner consistent with the “Buy Sea Grant North Carolina
; September 9, 2009; Oyster Reef Stimulus Project Begins Public Radio East
; September 21, 2009; Oyster Reef Restoration Project in Pimlico Sound Underway Lincoln Electric – Ohio
Lincoln Electric will be using welding consumables, manufactured by using green rod or strip melted
in steel mills in the U.S., in order to meet “Buy America” requirements for infrastructure investments
under the
and are procured through Lincoln’s Specials Department.
The products that meet the Buy America requirements include:
Recovery Act. These welding consumables perform at the same level as their counterparts •
Stick Electrode – Excalibur® 7018 MR, Excalibur® 7018-1 MR •
Flux-Core Wire – UltraCore® 71C, UltraCore® 71A85, UltraCore® 71A75 Dual •
The Lincoln Electric Company, headquartered in Cleveland, Ohio, is the world leader in the design,
development, and manufacture of arc welding products, robotic arc-welding systems, plasma and
Submerged Arc Wire – Lincolnweld® L-61® and Lincolnweld® LA-75 Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
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oxyfuel cutting equipment, and has a leading global position in the brazing and soldering alloys market.
AMT
; November 18, 2009; Lincoln Electric Offers New Buy America Welding Consumables Oregon Iron Works (United Streetcar) – Oregon
Investing in domestic supply chains can promote growth in new industries in the U.S. A good
example is United Streetcar of Clackamas, Oregon, which is building the first modern streetcars
to be manufactured in America in nearly 60 years. It is set to build seven streetcars for the city
of Tucson, Arizona, and another six streetcars for the city of Portland, Oregon, as part of system
expansions. The work is partially-funded by the federal government and complies with the Federal
Transit Administration’s “Buy America” Act that requires at least 60 percent of a vehicle contain
domestic content. As a result, the work will create manufacturing jobs for an entire network of
companies, both locally and throughout the U.S.
•
was forced to lay off 35 workers, but has rehired 10 workers because of new business.
Miles Fiberglass will manufacture front and rear shell pieces for the streetcars. In 2009, it •
Miles Fiberglass to the streetcars. The new business allows it to avoid laying off employees.
Northwest Technologies provides brackets and mounts that help attach panels made by •
Penn Machine Co. of Johnstown, PA, manufactures wheel sets with gear boxes. •
Recaro of Auburn Hills, MI, manufactures seats. •
Milwaukee Composites supplies floor material. •
supplying materials to United Streetcar.
At the formal unveiling of United Streetcar’s tram in Portland on July 1, 2009, Transportation
Secretary LaHood said these are “the first streetcars to be manufactured in America in nearly 60
years.”
Watch a video about the project
Local businesses Columbia Body Manufacturing and Platt Electric Supply also benefit byhere. Railway Gazette
; July 2, 2009; ‘Buy America’ Tram Unveiled Oregon Business
; July 1, 2009; Made in Oregon Infrastructurist
; July 1, 2009; Unveiled: First American-Made Streetcar in 60 Years DJC
Local Firms Amid Recession
; June 24, 2009; United Streetcar Contracts Trickle Down in Portland: Deals to Manufacture Streetcars Lead to Work for Promotional Video
Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
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Waiver for Rail Project – Oregon
In 2009, the Department of Transportation’s Federal Highway Administration (FHWA) posted a
notice of a request for a waiver on Manganese turnout castings and LV Braces needed for use in a
Recovery Act
not available in sufficient or reasonably available quantities in the United States.
Tina DeMao, a Field Coordinator with the Alliance for American Manufacturing, researched the
product and quickly identified a domestic producer, Nortrak, that was willing and able to provide
American-made products. She then contacted the FHWA and requested that the waiver be denied.
The FHWA followed up on her investigation, denied the wavier, and has since contacted the Oregon
Department of Transportation to move the project forward while using American-made goods.
project in Oregon. The waiver was sought because it was believed that the product was ManufactureThis
; December 9, 2009; Buy America Works ArcelorMittal – Pennsylvania
ArcelorMittal has been called upon to provide rail for two Southeastern Pennsylvania Transportation
Authority (SEPTA) projects funded by a $3.7 million stimulus grant. The Steelton plant is one of
three rail-producing plants in the U.S. and will provide over 125,000 linear feet of rail for the SEPTA
projects.
http://www.pennlive.com/midstate/index.ssf/2009/08/holden_says_hell_push_for_addi.html
quarter production at the Steelton facility has been down over 20 percent compared to prior periods,
and this was the first time in five years that plant managers have had to implement layoffs as a costcutting
mechanism. Dave Wirick, the Steelton plant’s general manager, is optimistic that more
orders will be placed as the government continues to award rail grants.
Third ArcelorMittal Press Release
; February 9, 2009; Stimulus at Steelton: Rail orders demonstrate regional impact of funds The Patriot-News
; August 27, 2009; Holden says he’ll push for additional rail stimulus money next session Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
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GE Transportation – Pennsylvania
The “Jobs for Main Street Act of 2010” includes $800 million “for [Amtrak] fleet modernization,
including rehabilitation of existing and acquisition of new passenger equipment, including fuelefficient
locomotives.”
According to
Transportation, based in Erie, PA, and will reportedly help “sustain 1,900 GE and supplier jobs.”
According to the
Business Wire, the language is written in such a way that the funds will benefit GEErie-Times News, this 100+ year old plant has already made substantial worker cutbacks
, including nearly 1,500 permanent layoffs in September. According to the article: [The] financial hit to the community — the loss of nearly 1,500 of Erie’s better-paying
jobs, effective in 60 days — is substantial, said Jim Kurre, professor of economics at Penn
State Behrend. “It’s very bad news for the local economy. Anytime we lose manufacturing
jobs that are good-paying jobs it hurts especially,” he said. “Because GE buys from so many
suppliers in the local area, it will have a ripple effect on our economy and elsewhere.”
GE Transportation will still need to compete to get the business, though it is worth noting that
Representative Dahlkemper, Senator Specter, and Senator Casey have been pushing for the funds
and
According to
requiring the Transportation Secretary to adhere to “buy American” rules for Amtrak even if the
equipment in question ‘cannot be bought and delivered in the United States within a reasonable
time.’ (Existing law allows the U.S. DOT to waive Amtrak “buy American” rules in such cases.)”
praised the inclusion of funds for the new energy-efficient fleet.Streetsblog Capitol Hill, “What’s more, the House jobs bill also includes language Business Wire
; December 16, 2009; GE Transportation Moves Closer to Securing New Amtrak Passenger Locomotive Order Erie-Times News
; September 16, 2009; GE cuts jobs: Work force to be fewer than 4,000 Senator Specter Press Release
House Jobs Bill
; December 17, 2009; Specter, Casey, Dahlkemper Laud Inclusion of $800 million for Amtrak in Streetsblog Capitol Hill
; December 16, 2009; House Jobs Bill Could Make General Electric’s Amtrak Wish Come True Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
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Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
Northeast Building Products – Pennsylvania
An
manufacturer of windows. New business related to the repair of broken down housing by the
Philadelphia Housing Authority has kept workers on the job. The work is funded, in part by $127
million, from the
3,000 people would not have jobs without this funding.
The benefits extend beyond construction jobs. Alan Levin, CEO of Northeast Building Products,
has hired 100 new workers to help build the windows for the public housing renovations.
Because of the “Buy America” provision, manufactured products in Philadelphia and elsewhere in
the United States are being used, putting Americans back to work.
ABC Evening News report on Recovery Act spending shows the positive benefits for a PhiladelphiaRecovery Act. According to Carl Green, Executive Director of the housing authority, ABC News
Traktionssysteme Austria (TSA)
Traktionssysteme Austria (TSA), a traction motor producer predominantly based in Austria, is “now
building motors in the USA with a local company” so that it can meet Buy America requirements
for light rail vehicles. This market has a significant European presence with the likes of Alstom in
France, Siemens and Bombardier in Germany, and Skoda Electric in the Czech Republic.
Railway Gazette
; June 26, 2009; Dedicated to the Traction Motor Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
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Alliance for American Manufacturing • www.americanmanufacturing.org • 202 393 3430
About AAM
The Alliance for American Manufacturing (AAM) is a unique non-partisan,
non-profit partnership forged to strengthen manufacturing in the U.S. AAM
brings together a select group of America’s leading manufacturers and the
United Steelworkers. Our mission is to promote creative policy solutions on
priorities such as international trade, energy security, health care, retirement
security, currency manipulation, and other issues of mutual concern.
Contact
Alliance for American Manufacturing
727 Fifteenth Street, NW
Suite 700
Washington, DC 20005
phone: 202-393-3430
fax : 202-628-1864
email: info@aamfg.org 
Buy America
Longstanding United States
Feb. 2010
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