Executive orders: Biden to sign order to strengthen American manufacturing

Similar executive orders signed by former President Donald Trump had little effect because his government waited to formalize changes until his penultimate day in office. By contrast, Biden will set a deadline of 180 days to deliver fundamental changes to the process, according to an administration official.

“He believes that we can rebuild the vitality of American manufacturing and our industrial strength. A large part of this is centered on the idea that when we use taxpayer money to rebuild America, we buy Americans and support American jobs,” said the official.

The order follows others signed by Biden last week directing additional aid to the neediest Americans, as well as starting the process of raising the minimum wage for federal contractors and workers to $ 15 an hour.

Closing gaps in federal purchases

Currently, a patchwork of federal rules requires that a portion of government spending on things like infrastructure, vehicles and other equipment be restricted to goods made in the United States. But there are gaps depending on the material, the purchase price and what qualifies as American.

Biden’s executive order will change the way national content is defined and measured for qualified products, as well as increase the required limit. It will also create a senior position in the Management and Budget Office to oversee the process by which contractors can request exemptions from Buy American rules, with the aim of reducing the number of exemptions granted.

Management will also create a public website that will publish all requests for exemptions and direct agencies to proactively connect with small American manufacturers that are often left out of the process.

What happened to Trump’s promised momentum

The manufacturing sector did not get the momentum Trump has repeatedly promised. The number of jobs in the industry grew during the first two years of his administration – albeit at almost the same pace as under President Barack Obama – but slowed in 2019 after the momentum for Republican-backed tax cuts passed and Trump’s tariffs in China created uncertainty for companies.

The pandemic hit manufacturing hard while the rest of the economy slowed. The sector is still down 543,000 jobs since February 2020, according to the Bureau of Labor Statistics.

“Trump talked about buying and hiring American a lot, but his executive orders didn’t mean much,” said Scott Paul, president of Alliance for American Manufacturing.

“There is an opportunity here for Joe Biden to really be a ‘Made in America’ president,” he added.

Paul said he is looking forward to seeing Biden close the loop in the current federal procurement process, as well as fulfilling his campaign promise to buy $ 400 billion in American-made goods and materials for infrastructure projects.
Biden’s American purchasing policy may involve some foreign trading partners. Canada’s Foreign Minister Marc Garneau said in a statement interview with CBS News on Sunday that “this could compromise the strong integrated supply chains that exist between our two countries.”

.Source