Executive Briefings

Develop a Stimulus Plan to Encourage U.S. Retailers to Use U.S. Manufacturers

How do we encourage more companies to manufacture in the U.S.? Let's develop a plan that asks each state to take a portion of its federal stimulus money and allot it towards specific tax incentives that will enable U.S.-based companies to convert to U.S.-based manufacturers.

In order for the proposed stimulus project to be effective, companies would need access to a list of the actual items open for bid that details specific product characteristics and maximum price points per unit. This list could be created through an open request for proposal process that asks big-box retailers to request bids from U.S. manufactures for any or all items they had been manufacturing overseas for the past three years or more.

If a big-box retailer were to become involved such a stimulus project, they would need to agree upon a price for a minimum of two years and change their RFP process from annually to biannually. This would give them the opportunity to lock in pricing for two years. Any retailer would also have to commit to awarding the production of its goods to a U.S.-based manufacturer that is able to demonstrate the ability to effectively manufacture the items on the list in the U.S. for the same or lower price than is currently being offered by overseas manufacturers. Overseas manufacturers must not be permitted to re-bid at lower prices, and only companies that have been manufacturing overseas for three years or more should be eligible to participate in the stimulus project.

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How do we encourage more companies to manufacture in the U.S.? Let's develop a plan that asks each state to take a portion of its federal stimulus money and allot it towards specific tax incentives that will enable U.S.-based companies to convert to U.S.-based manufacturers.

In order for the proposed stimulus project to be effective, companies would need access to a list of the actual items open for bid that details specific product characteristics and maximum price points per unit. This list could be created through an open request for proposal process that asks big-box retailers to request bids from U.S. manufactures for any or all items they had been manufacturing overseas for the past three years or more.

If a big-box retailer were to become involved such a stimulus project, they would need to agree upon a price for a minimum of two years and change their RFP process from annually to biannually. This would give them the opportunity to lock in pricing for two years. Any retailer would also have to commit to awarding the production of its goods to a U.S.-based manufacturer that is able to demonstrate the ability to effectively manufacture the items on the list in the U.S. for the same or lower price than is currently being offered by overseas manufacturers. Overseas manufacturers must not be permitted to re-bid at lower prices, and only companies that have been manufacturing overseas for three years or more should be eligible to participate in the stimulus project.

Read Full Article