Investments in U.S. Manufacturing, Historic Buy American Update Fuel a Recovery That Is Made in America
Since his first day in office, President Biden relentlessly focused on an industrial strategy to revitalize our manufacturing base, strengthen critical supply chains, and position U.S. workers and businesses to compete and lead globally in the 21st century. This whole-of-government effort is leading to an historic recovery in domestic manufacturing—since President Biden took office, the economy added 375,000 manufacturing jobs – the most in nearly 30 years. The U.S. economy grew at the fastest pace in nearly 40 years in 2021, and manufacturing as a share of U.S. GDP has returned to pre-pandemic levels.
The Biden-Harris 21st Century industrial strategy, Made in America policies, and transformational investments such as the Bipartisan Infrastructure Law have catalyzed historic domestic investments by the private sector to bring good-paying manufacturing jobs back home. This includes nearly $80 billion in planned investments in semiconductor manufacturing and more than $100 billion in announced investments in electric vehicles, batteries, and critical minerals since 2021.
Echoing President Biden’s call in this week’s State of the Union speech, Congress must build on this historic progress by passing the Bipartisan Innovation Act. This legislation will make record investments in emerging technologies, critical supply chains, and American manufacturing to level the playing field for American workers and businesses and outcompete China and the rest of the world in the 21st Century.
Today, President Biden and Barbara Humpton, President and CEO of Siemens USA, will announce that Siemens will invest $54 million in expanded domestic production and create 300 jobs manufacturing critical electrical infrastructure that supports everything from electric vehicle chargers to data centers to industrial sites.
Lonnie Stephenson, International President of the International Brotherhood of Electrical Workers (IBEW) will also speak to how the Biden-Harris Administration’s Made in America policies support good-paying, union jobs across the country.
This builds on announcements from major companies bringing production back home:
- Intel announced a $20 billion semiconductor manufacturing fab outside Columbus, Ohio that will create 7,000 construction jobs and another 3,000 permanent jobs.
- General Motors announced its largest-ever $7 billion investment to create 4,000 new EV manufacturing jobs at sites across Michigan.
- Boeing and the Qatar Airways Group announced a $20 billion deal, including $6.8 billion to supply aircraft that will support tens of thousands of U.S. manufacturing jobs.
- MP Materials, who operate the only rare earth mine in the U.S., announced a $700 million investment to establish a fully domestic end-to-end supply chain for permanent magnets by 2025, which are used in electric vehicle motors, wind turbines, and defense systems.
President Biden will also announce the most robust updates to the implementation of the Buy American Act in nearly 70 years to ensure taxpayer dollars create good-paying jobs here at home, strengthen critical supply chains, and position U.S. businesses to compete in strategic industries.
The Federal government spends more than $600 billion each year buying goods and services.
President Biden believes that when taxpayers foot the bill, that spending should invest in American workers, manufacturers, and small businesses. In his first week in office, he signed Executive Order 14005, Ensuring the Future Is Made in All of America by All of America’s Workers, initiating a review of Buy American policy and establishing the first-ever Made in America Office in the Office of Management and Budget.
Since January 2021, the Made in America Office, codified by the Bipartisan Infrastructure Law, has already helped agencies implement Made in America requirements, launched a new website designed to provide transparency into exceptions from Made in America laws, and created a new Made in America Council to ensure we identify the best ideas and practices from across the Federal government to implement Made in America initiatives. The actions to date implement a whole-of-government agenda designed to maximize the use of taxpayer dollars on domestic products and services, strengthen our industrial base, and create good-paying, union jobs for Americans.
This rule is also consistent with international trade laws and will bring the U.S. in line with the domestic procurement practices of peer countries. It will allow the U.S. to use its purchasing power to seed and grow new and strategic industries, while continuing our work with allies and partners to diversify and strengthen international supply chains to mitigate the global disruptions we’ve seen from COVID-19, climate change, and geopolitical conflict.
Today’s final rule will deliver on President Biden’s commitment to “Make Buy American Real” by:
- Raising the domestic content threshold to 75 percent. Today, products qualify as Made in America for federal procurement if 55 percent of the value of their component parts are manufactured here. This final rule will increase that threshold to 60 percent this year, 65 percent in 2024, and 75 percent in 2029. This will close loopholes in the current regulation while allowing businesses to onshore manufacturing and adjust their supply chains to increase the use of American-made components. This change will create more opportunities for small- and medium-sized manufacturers and their employees, including small and disadvantaged enterprises, from all parts of the country.
To support this work, the Small Business Administration has created a new manufacturing office in its federal contracting division and agencies will work with the Hollings Manufacturing Extension Partnership to find and develop American sources for government needs.
- Strengthening domestic supply chains for critical goods with new price preferences. When President Biden took office, he signed an executive order to fortify our critical supply chains. Building off the release of the first-of-their-kind one-year industrial base reviews last week, this rule creates a framework to allow the government to apply enhanced price preferences to select critical products and components identified in a subsequent rulemaking. These preferences, once in place, will support the development and expansion of domestic supply chains for critical products by providing a source of stable demand for domestically-produced critical products.
The President’s Made in America policies are already supporting U.S. manufacturing, including small businesses, minority-owned businesses, and woman-owned businesses.
Last year, the Biden-Harris Administration announced new reforms to increase equity in Federal procurement, including increasing goals for Federal procurement, increasing transparency, and supporting new entrants to the Federal marketplace.
In just the last year:
- American Fashion Network, a U.S.-based SBA certified woman-owned small business, pivoted from strictly commercial work to manufacturing masks for the government during COVID. Building on that experience, AFN won its first major federal contract in 2021, for $46 million in Made in America apparel for the U.S. Marine Corps and is assisting in the pioneering of gender size inclusivity with the DOD across services, including maternity. The apparel is manufactured Garden Grove, California which employs workers 70 workers and Rochester, New York which employs 56 workers.
- Ferrara Manufacturing, a family-owned New York City business, began making PPE for city hospitals in spring 2020. After winning their first federal contract to make millions of Made in America PPE, they later won multiple contracts with the Defense Logistics Agency to produce coats for the U.S. Air Force, Coast Guard, Navy, and Military District of Washington. Their apparel is manufactured in New York City’s Garment District, where they employ over 100 workers who are SEIU-affiliated Workers United Union members. In 2022, the family hopes to add 150 new manufacturing jobs in their newly built factory in Queens, New York City.
- Brothers Body and Equipment, a service-disabled veteran-owned small business (SDVOSB) and a HUBZone certified company operates a 30,000-square foot manufacturing facility in Galion, OH. It is executing on more than $300,000 in contracts to produce equipment for the Departments of Veterans Affairs and the Army, allowing the 12-person firm to keep its doors open and recover from a 90% revenue decrease in 2021 as a result of COVID.
- Garrett Container Systems in Accident, Maryland manufactures aluminum storage and shipping containers. Awarded more than $500,000 in contracts for the Department of the Navy and the Defense Logistics Agency, the HUBZone-located business now expects to increase its workforce to more than 120 workers to deliver on contracts through FY23.
- Alkegen, a manufacturer of meltblown fiber filtration media (the critical component in NIOSH N95 respirators), recently completed expansion of its plant in Rochester, New Hampshire where its 125 employees manufacture Berry-compliant (100% Made in America) components for NIOSH N95 and surgical masks. The Make PPE in America Act, included in the Bipartisan Infrastructure Law, is catalyzing domestic investments like this one to make America’s health supply chain stronger and more resilient.
- Showa Best Glove, Inc was awarded two contracts totaling $81.3 million by the Department of Defense on behalf of and in coordination with the Department of Health and Human Services for the industrial base expansion of 1.6 billion nitrile exam gloves per year. The production capacity is being added to Showa’s Fayette, Alabama facility to increase domestic production of nitrile gloves. Showa Best Glove, Inc. has 265 employees at its Alabama location.
- Astrobotic Technology (AB) was awarded a $236M Task Order from NASA to deliver NASA’s Volatiles Investigating Polar Exploration Rover (VIPER) to the Moon’s South Pole in late 2023. VIPER’s flight to the Moon is part of NASA’s Commercial Lunar Payload Services (CLPS) initiative, which leverages the capabilities of industry partners to quickly deliver scientific instruments and technology demonstrations to the Moon. As part of its award, AB is responsible for the delivery of VIPER, including integration with its Griffin lander, launch from Earth, and landing on the Moon. AB is a 160-employee certified small business firm in Pittsburgh, PA, that builds and operates space technologies.