It’s
no secret that United States uniform companies are
producing less and less of their products at home. Indeed,
as the country became flooded with lessexpensive imports
over the past two decades, many factories relocated off
shore in an effort to compete and to avoid certain extinction.
And the closing of businesses means the loss of jobs.
In the past three years alone, an additional 2.6 million
manufacturing jobs have been lost, with no reversal in
sight. As the United States economy becomes more global
and continues its shift toward services and high tech,
the term “Made in America” runs the risk of
becoming a quaint phrase from the past, a relic of a bygone
era much the way “golly gee” and “groovey”
before it.
In
light of this, UniformMarket began to question the relevancy
of measures designed to buttress and encourage manufacturing
in the United States. Of particular interest was the Berry
Amendment, a law that in part applies to the uniform and
apparel industries. Does it keep jobs here? Can it be
enforced? Does it create opportunity or are there too
many loopholes for abuse? Does the law even matter anymore?
The
answers are a resounding maybe. It depends to whom you’re
talking and individual perspectives. But before going
into details, a primer. Originally enacted in 1941, the
Berry Amendment was effectively reiterated as a part of
each subsequent defense appropriations act until it was
codified as 10 U.S.C. 2533a in 2002 by section 832 of
Public Law 107-107. Regarding purchases of textile and
apparel items, the Amendment requires that funds made
available to the Department of Defense (DoD) may not be
used to purchase clothing; tents, tarpaulins, or covers;
cotton and other natural fiber products, woven silk or
woven silk blends, spun silk yarn for cartridge cloth,
synthetic fabric or coated synthetic fabric, canvas products,
or wool (whether in the form of fiber or yarn) or items
of individual equipment manufactured from or containing
such fibers, yarns, fabrics, or materials unless it is
grown, reprocessed, reused, or produced in the United
States.
In
other words, covered end items, components, and materials
purchased with funds made available to DoD must be produced
wholly in the United States. The law is implemented through
the Defense Federal Acquisition Regulation Supplement
(DFARS) at Subpart 225.7002. The Berry Amendment contains
several exceptions, including acquisitions that are at
or below a certain threshold and those items purchased
outside the United States in support of combat operations.
In
addition, waivers to Berry Amendment restrictions on foreign
purchases are permitted if the Secretary concerned determines
that the items in question cannot be acquired when needed
in a satisfactory quality and sufficient quantity at U.S.
market prices. Waivers are uncommon, with only 36 textile
and apparel related exceptions since 1998.
But
when they do occur, they are not without controversy.
The flap several years back over the procurement of a
black beret illustrates some of the pitfalls associated
with waivers of Berry Amendment restrictions. To mark
the army’s anniversary in the new millenium, its
Chief of Staff required that all soldiers be issued new
berets by June 14, 2001. With only eight months to fulfill
the requirement and only one known U.S. beret manufacturer,
the procuring agency obtained a Berry Amendment waiver
so that some of the items could be obtained from suppliers
outside the United States. One of the foreign manufacturers
had a factory in China, and many of the berets were being
made there. Moreover, prices for the overseas berets were
14% higher than that of the American supplier. And in
the end, the June 14th deadline became impossible to meet,
raising questions as to the urgency in the first place.
Hearings were held, with Congress questioning the propriety
of the Berry Amendment waiver, and many in the industry
wondering aloud if the contracts were politically motivated.
And
there are other suspicions surrounding Berry. Some in the
uniform industry suspect corners being cut and down right
cheating going on when it comes to determining what is made
where. “There just aren’t enough inspectors
out there or resources available to ensure that every item
is made in the U.S.,” says Andrew Nagle of AB Emblem.
“There are too many ways around Berry, too many subcontractors
that can be overlooked. I don’t mind having the amendment,
but it should be enforced. Everybody should be on a level
playing field.”
Others
aren’t so sure. “There is no such thing as a
level playing field, and there are special preferences and
exceptions throughout this industry,” notes Michael
Spiewak of I. Spiewak & Sons. “Could there be
cheating going on? Sure, but I doubt it. There are inspections
at the factory level and prior to shipping to the factory.”
Indeed, much of the doubt surrounding Berry is anecdotal.
Hard evidence of abuse is difficult to find, but when it
has existed and was reported, the DoD took appropriate action.
But
is Berry still relevant, given manufacturing’s gloomy
outlook? Although ambivalent, Spiewak says there’s
a good reason to keep Berry. “Without it, there would
be zero percent domestic manufacturing, and no product development.”
With
no domestic manufacturing, dependence on foreign sources
for vital military products could lead to quality problems,
product delays, and even denial of vital items from adversarial
suppliers who may not agree with U.S. security objectives.
According to the American Manufacturing Trade Action Coalition,
there are numerous examples of this. During the Vietnam
War Sony withheld TV cameras used to guide tactical missiles.
And in 1983, Japanese Socialists blocked the sale of ceramic
packaging used in U.S. cruise missiles to protest Reagan
Administration policies. The Berry Amendment, says the coalition
and others, ensures military readiness through an active
defense industrial base and provides a reliable domestic
source for goods during war times.
The
country’s new-found patriotism also bodes well for
Berry. “Since the terrorist attacks and the Iraq War,
I’ve seen a slight reversal away from imports and
more requests for made in the U.S. products,” says
Daniel Broome of S. Broome Uniform Accessories. And while
the company imports more than it used to, the New York based
business has no plans to discontinue production in the states.
What
does the future hold for Berry? Some predict that the shrinking
manufacturing base will render it irrelevant within the
next five years. Others vow to fight for Berry, because
it protects what all Americans hold dear – jobs. “Without
the amendment, I’d probably close my factory too,”
notes Spiewak.
UNIFORMMARKETNEWS
Made To Measure Magazine, Halper Publishing Company
830 Moseley Rd, Highland Park, IL 60035, United States
847-780-2900 telephone, 847-780-2902 fax info@uniformmarket.com