Testimony on HB 284 — Alliance for American Manufacturing (Brian J. Lombardozzi)

Summary

Testimony from the Alliance for American Manufacturing (AAM) urging support for HB 284, which would require US-produced iron and steel on state-funded projects. The testimony describes AAM as a labor-management partnership between the United Steelworkers and some of America's leading manufacturing companies. It argues that state procurement policies do not infringe on the U.S. government's constitutional authority to conduct foreign policy and that Ohio's state agencies are already accustomed to applying Buy America preferences on federally funded programs. It closes with the name of Brian J. Lombardozzi, Vice President of State Governmental Affairs.

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Full text

 Support HB 284– Require US-produced iron, steel be used on state-funded projects
On behalf of the Alliance for American Manufacturing (AAM), I urge you to support HB 284 –
Require US-produced iron, steel be used on state-funded projects.

AAM is a labor-management partnership between the United Steelworkers and some of America’s
leading manufacturing companies. Together, we support policies that benefit both American workers
and companies doing business here in the United States.

Reinvesting tax dollars into the local and national economy promotes growth, expands the tax base, and
– by creating more job opportunities for middle-class Americans – reduces the burden on social safety
net programs.

As companies continue to invest in their U.S. operations, they modernize plants to make them safe and
efficient, and create jobs in the process. This legislation will ensure that as Ohio regulates the way U.S.
manufacturers do business, Ohio will do its best to encourage U.S. production and investment. HB 284
will ensure that compliance with U.S. environmental and labor standards is the standard for doing
business with the one of the globe’s biggest customers.

Ohio’s state agencies are already accustomed to applying Buy America preferences when executing
programs funded by federal grants. This longstanding practice by the federal government, and many
state governments, is well-understood by contracting officers and bidders on public projects. Florida,
Illinois, Indiana, Maryland, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania,
Texas, Virginia, West Virginia, and others all have similar domestic preferences in statute.

The legality of applying a preference for domestically produced Iron and steel in Ohio’s procurements
and construction of public works is not in question. When a state government, through its agencies or
local subdivisions, procures goods or services for its own use, it is a market participant like a private
party. As such, a state enjoys the same rights that a private purchaser does in choosing its suppliers to
carry out contracts – rights affirmed by federal courts. State procurement policies neither have an effect
in foreign countries nor involve the state in the conduct of the foreign affairs of the United States.
Therefore, such policies do not infringe upon the U.S. government’s constitutional authority to conduct
foreign policy – a detail misguided Buy America critics often omit.

Indeed, Ohio should use its purchasing power to complement its public policy objectives. Unlike their
foreign competitors in places like China, India and Russia, United States manufacturers are heavily
regulated and do not rely on subsidies from their government to make them more competitive. Ohio’s
procurement policies should not be divorced from its public policies. Taxpayer dollars should not be
used to bolster foreign state-owned enterprises, nor should they reward companies that have moved their
operations, investment dollars, and jobs away to foreign countries that lack or completely
disregard reasonable environmental and workplace safety regulations.
Criticism of Buy America preferences often portrays other nations’ markets as completely unfettered.
But don’t be fooled. They are not. Hidden amongst the rhetoric is the fact that both Canada and the
European Union preserve markets for their own domestically produced products in lieu of obligations
otherwise required by trade agreements, and their governments indicate that they intend to spend their
own tax receipts on domestically produced goods or otherwise enact barriers to foreign goods.

Without these sensible changes enacted into law, Ohio will continue a path of sending Ohioans’ hard-
earned tax dollars to foreign firms when American workers stand to do the work. Our manufacturers
and workers are anxiously watching, hoping that you will support these commonsense and necessary
fixes to existing state law. Vote in favor of support HB 284 – Require US-produced iron, steel be used
on state-funded projects, tell these manufacturers and workers you support their jobs, their businesses,
and their communities. We urge your support for HB 284.

Sincerely,



Brian J. Lombardozzi
Vice President of State Governmental Affairs
202-393-3430


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