"I dont buy for one second that the vitality of the American manufacturing is a thing of the past," said Biden at the signing of the Order

"I don't buy for one second that the vitality of the American manufacturing is a thing of the past," said Biden at the signing of the Order

US President Joe Biden has signed an executive order aimed at strengthening domestic manufacturing and US supply chains in government procurement.

The 'Made in America' executive order directs the federal government to spend taxpayer dollars on American-made goods produced by American workers using American-made components. It also fulfils President Biden's promise to make 'Buy American' real and close loopholes that allow companies to offshore production and jobs while still qualifying for domestic preferences.

Contracting alone accounts for nearly US$600bn in federal spending, according to the Executive Order, which states federal law requires government agencies to give preferences to American firms. However, these preferences have not always been implemented consistently or effectively. Some of these requirements, which shape how the government preferences domestic goods and services in what it buys, have not been substantially updated since 1954, during the Eisenhower Administration. 

"It is long overdue that the US government utilises the full force of current domestic preferences to support America's workers and businesses, strengthening our economy, workers, and communities across the country," the statement read.

Specifically, the Executive Order (which can be found here):  

  • Directs agencies to close current loopholes in how domestic content is measured and increase domestic content requirements.
  • Appoints a new senior leader in the Executive Office of the President in charge of the government's Made-in-America policy approach.
  • Increases oversight of potential waivers to domestic preference laws.
  • Connects new businesses to contracting opportunities by requiring active use of supplier scouting by agencies.
  • Reiterates the President's strong support for the Jones Act.
  • Directs a cross-agency review of all domestic preferences.
  • Supporting America's Workers through Federal Purchasing.

"I don't buy for one second that the vitality of the American manufacturing is a thing of the past," said Biden at the signing of the Order. "American manufacturing was the arsenal of democracy in World War Two, and it must be part of the engine of American prosperity now. That means we are going to use taxpayers' money to rebuild America. We'll buy American products and support American jobs, union jobs."

Earlier this week, US lawmakers called on the President to prioritise purchasing 'Made in America' Personal Protective Equipment (PPE) adding there were not enough orders of PPE to fill the capacity the US currently has to manufacture.

National Council of Textile Organizations (NCTO) president and CEO Kim Glas commended the President for taking action in his first days in office to strengthen the domestic supply chain and manufacturing base.

"Increasing the domestic procurement threshold and the price preferences for domestic goods under the current Buy American law will bolster domestic production and stimulate more investment in US manufacturing.

"We believe it is critical that taxpayer dollars are used to invest in American manufacturing and our workforce. It is essential that we close loopholes in our Buy America laws, expand application and product coverage of domestic content rules, and close unnecessary contract waivers that undermine American manufacturing and its workforce."