Construction Industry Opposes Obama “Buy American” Stimulus Plan

Wednesday, June 17, 2009

Contractors are complaining about a key provision of the Obama administration’s stimulus package requiring materials for new infrastructure projects to be made in the United States. Associated General Contractors of America (AGC) says the “Buy American” mandate is slowing down projects and raising costs, owing to the fact that builders have often turned to foreign suppliers in certain instances.

One example cited by AGC pertains to water treatment facilities, which involve materials that are either made only overseas, or cost considerably less. The situation is forcing contractors to decide between accepting stimulus funds, and paying more for domestically-made parts, or opting out of the assistance provided by the American Recovery and Reinvestment Act. Other problems cited involve contractors being unable to get certification that all components of equipment used are U.S.-made.
The protectionist provision is also rankling officials in Canada, home to suppliers for American builders, and could provoke a “full-blown trade war” if Canadians decide to counter with their own barriers, argues AGC.
-Noel Brinkerhoff
Stimulus Threatens to Cause ‘Full-Blown Trade War’ (by Michael Grabell and Amanda Michel, ProPublica)
Stimulus Is Helping Contractors, But Buy American Poses Threats (Simonson Says, Associated General Contractors of America)


Clark 7 years ago
the article says some parts are made overseas, not true 20 yrs ago,I saw cheap parts made in Mexico thrown in the garbage, now it's all Chinese and Mexican, made it is cheaply made and doesn't fit right, it is rare when you find American made parts now, and imho, we are building substandard buildings with this cheap crap ,it is no surprise that the ABC would support foreign crap, Maximum profit at any cost, they screw their employees and their customers UNAMERICAN
BoB 7 years ago
To say "Construction Industry" sends a false message as it implies that every member of this industry is opposed.

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