Recently, a number of startups and small business CEOs, mainly those with Government contracts, openly gave positive responses on the recent 25 January 2021 news that President Joe Biden has officially signed legislation to tighten the “Buy American Act”.
“Within a very short time, there’s been a much more clear message being sent and a stronger level of support,” said Marisa Fumei-Smith, president of the textile manufacturer Two One Two New York. This business has recently shifted its production line from knitwear and apparel to personal protective equipment for local government agencies and companies.
The business has expanded over time, starting with 60 workers at the start of the pandemic to more than 400 workers. These include the two subcontractors that work only for Two One Two.
This act asks all required companies which accept the federal contract to be fully functional and based in the U.S and do not source any of their supply chains out of the U.S. This furthered the argument of rising costs since local production becomes too expensive to cater to. This, most importantly, also creates an oversight office.
Biden signs executive order promoting companies buy American
Desperate Times
Even when the coronavirus pandemic had not broken out, the industry was facing a huge setback because of a rapid decline in the United States-based manufacturing industry jobs and lax standards requiring companies to produce domestically. The Bureau of Labor Statistics has figured that more than 7.5 million jobs have been lost since the 1980s.
“There was a moment in time when every one of your customers said if you don’t move your business to China, you’re not going to have any business with us,” said James Wyner, CEO of Shawmut Corp., a textile manufacturer with headquarters in West Bridgewater, Massachusetts. This family has been operating the company for over four generations. Even though Shawmut has workers from all over the world, it has tremendously fallen within the federal small business classification for the textile finishing industry.
Cautious Optimism
Despite Biden’s new policy of improving conditions for U.S. manufacturers, the textile owners still think that it is not good enough for them.
Kathie Leonard, CEO of Auburn Manufacturing in Mechanic Falls, Maine, looks over the production process of high-heat fabrics required to make safety clothing for the automotive and shipbuilding industries. As a client to the defense industry, the company has not witnessed an achievable spike in government contacts compared to other textile manufacturers.
“I have yet to see that kind of business come to us,” she said. “The industrial sector is still floundering.
“We bid on a multiyear contract that should have been awarded in October, and it’s been extended,” she said. The defense contracts are costly, she said, and while they are essential, many have been postponed through the pandemic.
However, she is optimistic.
“This is going to be a nice little shot in the arm, to remember that we do have a lot of employees in this country that want to work, that want to make things. Let’s support them and buy the stuff that’s made here,” she said.
Conclusively, the small businesses have some hope after this policy and are certain to make the maximum use of it to strengthen their long-term planning and stability.
