Buy American- What Does That Mean?

July 13, 2015

Industry Week Reports that “Ford Plans Move for Compact Car Production Out of US.” What exactly does “Buy American” mean these days?

032609_buy_american.jpg

In 2009 , While two of the three  bankrupt thinking Detroit firms were using the government to bully their way through Bankruptcy, running roughshod on their suppliers and creditors, I wrote a piece about “The New Domestics.”

Here are a few points that I made in that article:

  • More than 70 percent of the value added in a new car is provided by the suppliers, not the assemblers;
  • More than 300 companies have created jobs in Ohio as a result of the state’s “New Domestic” auto industry;
  • Honda has plants or major operations in Alabama, California, Connecticut, Colorado, Georgia, Indiana, Iowa, Michigan, New Jersey, North Carolina, Ohio, South Carolina, Tennessee and Texas.
  • Mercedes has a plant in Alabama too.
  • And BMW has a plant in South Carolina.
  • Volkswagen has broken ground for an assembly facility in Chattanooga, Tennessee. (It’s been making cars since 2011, employs 2000 people)

So what is an American Car?

  • One made by my friends and neighbors;
  • Made from materials and parts purchased locally;
  • One that the first digit of the VIN is a “1”;
  • One that has more than 50% “domestic content;”

Want to know more about American Cars in 2015?

The MOST AMERICAN CARS

What is the US’s leading auto exported abroad?

Surprise Answer

Industry Week Article

Thanks to Draplin Design for the neat graphic.

Camry Photo

Postscript- Not to diminish the role of Canadian Manufacturers- nor their vehicle assembly plants.  PMPA members in Canada produce high volumes of high technology systems parts for the automotive markets- fuel injectors, anti-lock brake parts,  fluid power system components and much, much more. But the irony of the whole Ford “Wrap ourselves in the flag while we really export your jobs” marketing  is really the “driver” behind this post.

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U.S. Industrial Production to Grow 6% in 2011- Industry Week

June 17, 2011

MAPI forecasts that manufacturing production will increase 6% in 2011 and advance by 4% in 2012.

Industry Week  cites Manufacturers Alliance / MAPI report  and chief economist in their June 16th on line article.

“Manufacturing, though, is currently well positioned for growth. There is pent-up demand for consumer durables, firms are profitable and need to spend more for both traditional and high-tech business equipment, and strong growth in emerging economies is driving U.S. exports,” Meckstroth, added.

The group’s report found that manufacturing industrial production, measured on a quarter-to-quarter basis, grew at a 7% annual rate in the first quarter of 2011, after expanding at a 3.4% annual rate in the fourth quarter of 2010.

Manufacturing continues to lead the recovery. Hopefully this won’t be derailed by the continued hostile tone of regulators in Washington, upcoming Dodd Frank requirements, etc. etc..

Regulations Photo credit


State Of Steel Industry 2011

May 4, 2011

Industry Week’s report on the AISI’s annual meeting in Colorado Springs is the Official report on AISI website.

Here are a few key highlights.

  • U.S. steel shipments will rise 14% in 2011 to approximately 90 million tons as the industry continues to rebound from the recession,  according to Nucor Chairman and CEO Daniel DiMicco
  •  In March finished steel imports into the United States rose to their highest level since January 2009, said DiMicco, who also serves as AISI chairman.
  •  Demand from the commercial and residential construction industry remains weak and is not expected to reach pre-recession levels until 2012 at the earliest, said DiMicco.
  •  Increased demand from infrastructure construction projects has the potential create up to 3 million jobs over the next several years, said Mario Longhi, president and CEO of Gerdau Ameristeel Corp. and AISI director.

PMPA’s own Business Trends shows a recovery in progress. AISI reporting Steel Shipments up 14% and record imports confirm this- Steel is foundational to economic activity.

If you think steel prices are high now wait until  commercial and residential construction recovers in a year or so…