NEW YORK CITY — Stephanie Wilson was reaching for a receipt inside a paper shopping bag from Saks Fifth Avenue when she found a letter pleading, “HELP HELP HELP.”
The note, which Wilson found after buying a pair of Hunter rain boots at Saks in September 2012, was signed Tohnain Emmanuel Njong and was accompanied by a small passport-photo sized color picture of a man in an orange jacket, she said.
The letter, which also included a Yahoo email address on the back, triggered a hunt for the whereabouts of the mystery man.
Wilson showed the missive to the Laogai Research Foundation, a Washington, D.C.-based advocacy group founded to fight human rights abuses in Chinese prisons. The nonprofit foundation began investigating using its contacts on the ground as well as online, a representative confirmed to DNAinfo New York.
But when Njong’s Yahoo email address bounced back, the nonprofit was unable to locate him.
Harry Wu, the founder of Laogai Research Foundation, spent 19 years in a Chinese prison factory, known as laogai. He said he took steps to verify the letter and believes that Njong took a huge risk in writing and sending it.
“There would be solitary confinement until you confess and maybe later they increase your sentence — or even death,” Wu said.
His organization referred the letter to the Department of Homeland Security, which investigates allegations of American companies using forced labor to make their products.
Homeland Security officials confirmed to DNAinfo that they were made aware of the letter, but could not say if they investigated it or are currently looking at Saks in connection to it. They also could not discuss Wilson’s claim that DHS agents interviewed her in June 2013.
But a DHS official said it’s not the first report of a cry for help letter from China ending up on American shores.
According to DHS senior policy adviser Kenneth Kennedy, the department was made aware of a woman in Oregon who made international news in 2012 when she discovered a similar letter detailing abuse and grueling labor in a Chinese prison when it fell from a Halloween decoration she’d bought at Kmart.
The Oregon letter was anonymous, though The New York Times later tracked down the man who said he wrote it.
A representative for Saks Fifth Avenue confirmed that the store was notified of the letter by the Laogai Research Foundation in December 2013 and said the company took the allegation seriously and launched an investigation, according to Tiffany Bourre, spokeswoman for Hudson’s Bay Company, which took a controlling stake in the famous department store last December.
Bourre said Saks does have its paper shopping bags made in China, but the company was unable to determine the specific origin of the bag that contained Njong’s letter and photo.
Hudson’s Bay Company is currently in the process of ensuring all vendors meet the new company’s standards on workers’ rights, Bourre added.
“HBC has a rigorous social compliance program that outlines our zero tolerance policy, which includes forced labor,” she said.
Two U.S. laws make it illegal for products made using slave, convict or indentured labor to be imported into the United States, according to Kennedy. However investigations are difficult with DHS required to prove how much a company knew about its own supply chain.
“Was there actual knowledge [of slave, convict or indentured labor?] Or was there knowledge that they avoided knowing or seeing?” Kennedy said. “All that plays into the investigation.”
A legal clause known as the consumptive demand exemption, which Kennedy referred to as “the Achilles heel of these laws,” can also greenlight imports regardless of the type of labor used if domestic consumption cannot be met otherwise.
In recent weeks, using the now-inactive email address and social media accounts, DNAinfo located a man who said he wrote the letter that Wilson found.
In a two-hour phone interview, a man who identified himself as Njong said he wrote the letter during his three-year prison sentence in the eastern city of Qingdao, Shandong Province.
Unprompted, Njong described obscure details in the letter, like its mention of Samuel Eto’o, a professional soccer player on English premiere league team Chelsea, who like Njong is from Cameroon in West Africa.
He added that he wrote a total of five letters while he was behind bars — some in French that he hid in bags labeled with French words, and others in English, he said.
Njong, who is now 34, said he had been teaching English in the southern Chinese city of Shenzhen when he was arrested in May 2011 and charged with fraud, a crime he said he never committed.
He said he was held in a detention center for 10 months while awaiting a government-sponsored lawyer, who represented him at his court trial and sentencing. He said he was barred from contact with the outside community.
Njong’s arrest and imprisonment were confirmed by his legal aid lawyer in China, whose name DNAinfo is withholding for the lawyer’s protection.
Embassies for Cameroon in Beijing and Washington did not return emails or calls for comment. The Chinese embassy in New York did not respond to requests for comment.
Njong said he was imprisoned in the eastern city of Qingdao, Shandong Province, where he was forced to work long days in a factory, starting at 6 a.m. and continuing as late as 10 p.m. He sometimes made paper shopping bags like the one from Saks, while other times he assembled electronics or sewed garments.
Each prisoner was required to meet a daily production quota, Njong said. He said he and the other convicts were given a pen and paper to record their productivity — and that he used that pen and paper to secretly write his letters.
“We were being monitored all the time,” Njong said. “I got under my bed cover and I wrote it so nobody could see that I was writing anything.”
He said he hoped the letter would help lead someone to him.
“Maybe this bag could go somewhere and they find this letter and they can let my family k
now or anybody [know] that I am in prison,” explained Njong.
Njong said he was discharged from prison in December 2013 — he received a reduced sentence for good behavior — and was put on a plane back to Cameroon, where he reunited with relatives who had no idea what had happened to him and had believed him to be dead, he said.
After struggling to find work in his home country, Njong recently moved to Dubai and secured a job that will allow him to stay there.
He said that though his imprisonment ran its course without intervention, he was happy that his letter made its way into at least one person’s hands.
“It was the biggest surprise of my life,” said Njong. “I am just happy that someone heard my cry.”
Wilson, who has never spoken to Njong, said she thinks about his plea for help all the time. She had always been mindful of the products she purchased and where they were made in a bid to avoid sweatshop labor, but she never thought to worry about generic products like shopping bags.
Wilson has worked for the nonprofit Social Accountability International for the last four years.
“This has been the biggest eye-opener for me,” Wilson said. “I have never once thought about the people making my shopping bag or other consumable products like the packaging of the food I buy, or the pen I write with or the plastic fork I eat my lunch with.”
China Could Overtake the U.S. as World’s No. 1 Economy This Year
in EconomyThis day, of course, was always going to arrive. The ascent of China to the world’s No. 1 slot has been inevitable ever since the country embarked on its great quest for wealth in the 1980s. With a population heading toward 1.4 billion, the question has been when, not if, China will topple the U.S. from its lofty perch. Still, we can’t ignore the historic significance of that switch. The U.S. has been the globe’s unrivaled economic powerhouse for more than a century. The fact that China will replace the U.S. at the top is yet another signal of how economic and political clout is rapidly shifting to the East from the West.
That quickly gets everyone’s passions boiling over. To many Chinese, becoming No. 1 is vindication for what they feel has been two centuries of humiliation at the hands of an aggressive West and proof that its authoritarian, state-capitalist economic model is superior to the democratic, free-enterprise systems of the U.S. and Europe. In the U.S., losing the top spot is seen as a symbol of America’s decline on the world stage.
Yet we shouldn’t get ourselves too worked up. These new figures don’t mean as much as many people think. Leaving aside the obvious statistical questions the report raises about the value of GDP figures generally, where the U.S. and China rank misses the more important point: bigger isn’t necessarily better.
On the flip side, if the U.S. slips from its No. 1 position, it doesn’t spell doom. The U.S. still has a substantial lead in innovation, and its dominant position in many industries and sectors is not about to vanish. New York City will remain the world’s premier financial center, and the dollar will reign supreme on the world stage for some time to come. Still, wherever the U.S. ranks, its economy too is badly in need of reform. Better infrastructure, a smarter tax code, an improved education system and more determined efforts to close the income gap would also strengthen the economy’s foundation for growth.
America is Declining at the Same Warp Speed That's Minting Billionaires and Destroying the Middle Class
in GovernmentFor the past three decades, the Republican Party has waged a dangerous assault on the very idea of public education. Tax cuts for the rich have been balanced with spending cuts to education. During the New Deal era of the 1940s to 1970s, public schools were the great leveler of America. They were our great achievement. It was universal education for all, but today it’s education for those fortunate enough to be born into wealthy families or live in wealthy school districts. The right’s strategy of defunding public education leaves parents with the option of sending their kids to a for-profit school or a theological school that teaches kids our ancestors kept dinosaurs as pets.
“What kind of future society the defectors from the public school rolls envision I cannot say. However, having spent some time in the Democratic Republic of Congo—a war-torn hellhole with one of those much coveted limited central governments, and, not coincidentally, a country in which fewer than half the school-age population goes to public school—I can say with certainty that I don’t want to live there,” writes Chuck Thompson in Better off Without Em.
Comparisons with the Democratic Republic of Congo are not that far-fetched given the results of a recent report by Organization for Economic Co-operation and Development (OECD), which is the first comprehensive survey of the skills adults need to work in today’s world, in literacy, numeracy and technology proficiency. The results are terrifying. According to the report, 36 million American adults have low skills.
It gets worse. In two of the three categories tested, numeracy and technological proficiency, young Americans who are on the cusp of entering the workforce—ages 16 to 24—rank dead last, and is third from the bottom in numeracy for 16- to 65-year-olds.
The United States has a wide gap between its best performers and its worst performers. And it had the widest gap in scores between people with rich, educated parents and poor, undereducated parents, which is exactly what Third World countries look like, i.e. a highly educated super class at the top and a highly undereducated underclass at the bottom, with very little in the middle.
The report shows a relationship between inequalities in skills and inequality in income. “How literacy skills are distributed across a population also has significant implications on how economic and social outcomes are distributed within the society. If large proportions of adults have low reading and numeracy skills, introducing and disseminating productivity-improving technologies and work-organization practices can be hampered; that, in turn, will stall improvements in living standards,” write the authors of the report.
There is a defined correlation between literacy, numeracy and technology skills with jobs, rising wages and productivity, good health, and even civic participation and political engagement. Inequality of skills is closely correlated to inequality of income. In short, our education system is not meeting the demands of the new global environment, and the outlook is grim, given the Right’s solution is to further defund public education while ushering kids into private schools and Christian academies aka “segregation academies.” The Republican-controlled South is where you see the Right’s education strategy in action. “Inspired by home-school superstars such as Creation Museum founder Ken Ham, tens of thousands of other southern families have fled their public-school systems in order to soak their children in the anti-intellectual sitz bath of religious denial.” In other words, we’re dumb and getting dumber.
While charter schools aren’t unique to the South, conservative states tend to respond most enthusiastically to their message, which makes Republican-controlled states ground zero for the further degradation of public education. The U.S. will likely continue to poll like countries like Indonesia and Tanzania, rather than Japan and Sweden when it comes to meeting the demands of a global economy.
Despite their hype and profits, study after study show that kids in charter schools perform no better on achievement tests than kids in public schools. But the correlation between a strong public education system and social mobility is demonstrated clearly in the OECD report. A 2006 report by Michael A. McDaniel of Virginia Commonwealth University showed that states with higher estimated collective IQ have greater gross state product, citizens with better health, more effective state governments, and less violent crime. In other words, were we to invest more in public education, we’d be instantly more intelligent, healthy, safe, and financially sound.
“The principal force for convergence [of wealth] — the diffusion of knowledge — is only partly natural and spontaneous. It also depends in large part on educational policies,” writes Thomas Piketty in his 700-page bestseller Capital in the Twenty-First Century . In other words, if we really want to reduce inequality, and if we really want to be a global leader in the 21st century, we need to invest more into our education system, which requires the federal government to ensure the rich and the mega-corporations pay their share. But we need to act now.
Polo Ralph Lauren Clothing Line to be Made in Rochester
in American Made, Manufacturing & SourcingUnder the contract with Polo Ralph Lauren, Hickey Freeman will manufacture the company’s “Blue Label” line of tailored suits and sport jackets. The work — which could lead to more Polo contracts for Hickey, Granovsky said — is expected to begin next month.
The deal will increase Hickey’s revenue by at least 10 percent, Schumer said.
Granovsky said the deal was worth about $1 million. He said there will be at least two other such contracts with major clothing labels in the coming weeks.
“There is stability now at Hickey Freeman,” Granovsky said.
Schumer said, “To be able to bring together two dynamic, trailblazing American clothing brands is a huge step forward for Hickey Freeman.”
Officials declined to provide details about the pending contracts, but said the additional work will help Hickey achieve its goal of full factory employment by 2015. The workforce now numbers 415.
Schumer said Hickey’s fortunes improved when Grano bought it in part because Grano also owns the Canadian high-end men’s clothier, Samuelsohn, and understands the importance of quality tailoring over quick returns on investments.
The new deal, and the stability Schumer and Granovsky cited, is in contrast to Hickey’s tumultuous business life over the past several years.
After longtime owner Hartmarx Corp. filed for bankruptcy in 2009, the British private equity firm Emerisque Brands and SKNL, an Indian clothing manufacturer, bought Hartmarx’s assets. Then the holding company they formed, HMX Acquisition Corp., itself filed for bankruptcy in 2012.
Months later, Authentic Brands Group LLC bought Hickey Freeman and turned running Hickey Freeman and sister clothier Hart Schaffner Marx over to W Diamond Group Corp., a private company created by HMX CEO Doug Williams and his wife.
W Diamond Group then sold the Hickey to Grano.
Granovsky said his company is committed to Rochester. “Hickey Freeman isn’t going anywhere,” he said.
The move to Hickey is part of Polo Ralph Lauren’s “Made in America” initiative whereby some of its production will be brought back to the United States, Schumer and Grano company officials said Monday.
The Blue Label brand has been manufactured in Italy. The deal and others to come could boost production and add up to 50 jobs in the next three years.
No one from Ralph Lauren attended Monday’s news conference at the factory on North Clinton Avenue in Rochester.
Granovsky said Lauren is bringing the jobs back from Italy because of the preference American shoppers have shown for products made in this country.
“When Ralph Lauren made the uniforms for the U.S. Olympic team, he became aware of the importance of American-made,” Granovsky said.
Lauren designed and made the uniforms and other clothing for the U.S. Winter Olympics team that competed this year in Sochi, Russia.
Photo Stencil Adds Manufacturing Plant in Golden, Colorado
in UncategorizedPhoto Stencil, LLC provides high-performance stencils, squeegee blades, thick film and metal mask screens, and tooling for the surface mount technology (SMT) assembly, solar, and semiconductor industries. Its innovations include the patented AMTX E-FAB® electroformed stencils, high-performance, proprietary NicAlloy™, NicAlloy-XT™, laser-cut, and chemetch stencils, and patented electroformed E-Blade® squeegee blade. Stencil design support and customer-specific design libraries are also provided. Founded in 1979, Photo Stencil is headquartered in Colorado Springs and has a manufacturing facility in Mexico. For more information follow us on www.Linkedin.com/company/Photo-Stencil-llc, visit www.photostencil.com, or email info@photostencil.com.
ContactsPhoto Stencil, LLC
Rachel Miller-Short, +1 719-304-4224
rshort@photostencil.com
Pentagon Sneaker Policy Could Give New Balance a Boost
in UncategorizedActing Deputy Secretary of Defense Christine Fox announced Friday that the Department of Defense will provide military recruits with American-made footwear, rather than giving stipends to buy shoes.
U.S. Rep. Niki Tsongas, a Lowell Democrat, has estimated that the military had spent about $180 million on cash allowances for recruits to buy sneakers since 2002.
U.S. shoe makers and lawmakers from Maine, Massachusetts and Michigan lobbied for the change to preserve some of the country’s few remaining shoe plants. In 2012, Rep. Mike Michaud of Maine provided a pair of monogrammed New Balance sneakers to the president, urging him to require the Defense Department to follow a law requiring military personnel to wear U.S.-made clothing from head to toe.
Save Our Steel Jobs! #SOSJobs
in UncategorizedBut unless our government fully enforces the on-the-books rules, these companies might get away with their bad behavior – and that puts American jobs directly at risk.
So we’re going to do something about it!! Today, the Alliance for American Manufacturing (AAM) is rallying with workers in Lorain, and we need you to stand with us … in person and online.Here are five steps you can take to help build a healthier manufacturing economy.
It’s going to take all of us, pulling together, to make sure these American workers have a fair shake in the global marketplace. But with your help, we can get this done. So take the five steps! Join us in Ohio via our livestream today! And we’ll keep it made in America.
Chicago-Area Manufacturing Grows at Fastest Pace Since October
in UncategorizedRising demand for durable goods such as automobiles and business equipment is driving gains in manufacturing, which makes up about 12 percent of the economy. Faster job creation would generate wage growth, accelerating the pace of consumer purchases and resulting in more orders for factories.
The median forecast of 49 economists surveyed by Bloomberg was 57. Estimates ranged from 54 to 60.5.
The national factory index, produced by Tempe, Arizona-based Institute for Supply Management, probably advanced to 54.2 this month from 53.7 in March, according to the Bloomberg survey median ahead of the May 1 release.
The report showed orders, production and employment all jumped this month compared with March.
To contact the reporter on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net
To contact the editor responsible for this story: Carlos Torres at ctorres2@bloomberg.net
Shopper Finds Prison Laborer's Cry For 'HELP' Inside Shopping Bag
in Uncategorized“We are ill-treated and work like slaves for 13 hours every day producing these bags in bulk in the prison factory,” continued the letter, which was tucked into the bottom of the bag. It ended, “Thanks and sorry to bother you.”
“I read the letter and I just shook,” said Wilson, 28, an Australian who lives in West Harlem. “I could not believe what I was reading.”
The letter, which also included a Yahoo email address on the back, triggered a hunt for the whereabouts of the mystery man.
Wilson showed the missive to the Laogai Research Foundation, a Washington, D.C.-based advocacy group founded to fight human rights abuses in Chinese prisons. The nonprofit foundation began investigating using its contacts on the ground as well as online, a representative confirmed to DNAinfo New York.
But when Njong’s Yahoo email address bounced back, the nonprofit was unable to locate him.
Harry Wu, the founder of Laogai Research Foundation, spent 19 years in a Chinese prison factory, known as laogai. He said he took steps to verify the letter and believes that Njong took a huge risk in writing and sending it.
“There would be solitary confinement until you confess and maybe later they increase your sentence — or even death,” Wu said.
His organization referred the letter to the Department of Homeland Security, which investigates allegations of American companies using forced labor to make their products.
But a DHS official said it’s not the first report of a cry for help letter from China ending up on American shores.
According to DHS senior policy adviser Kenneth Kennedy, the department was made aware of a woman in Oregon who made international news in 2012 when she discovered a similar letter detailing abuse and grueling labor in a Chinese prison when it fell from a Halloween decoration she’d bought at Kmart.
The Oregon letter was anonymous, though The New York Times later tracked down the man who said he wrote it.
A representative for Saks Fifth Avenue confirmed that the store was notified of the letter by the Laogai Research Foundation in December 2013 and said the company took the allegation seriously and launched an investigation, according to Tiffany Bourre, spokeswoman for Hudson’s Bay Company, which took a controlling stake in the famous department store last December.
Bourre said Saks does have its paper shopping bags made in China, but the company was unable to determine the specific origin of the bag that contained Njong’s letter and photo.
Hudson’s Bay Company is currently in the process of ensuring all vendors meet the new company’s standards on workers’ rights, Bourre added.
“HBC has a rigorous social compliance program that outlines our zero tolerance policy, which includes forced labor,” she said.
Two U.S. laws make it illegal for products made using slave, convict or indentured labor to be imported into the United States, according to Kennedy. However investigations are difficult with DHS required to prove how much a company knew about its own supply chain.
“Was there actual knowledge [of slave, convict or indentured labor?] Or was there knowledge that they avoided knowing or seeing?” Kennedy said. “All that plays into the investigation.”
A legal clause known as the consumptive demand exemption, which Kennedy referred to as “the Achilles heel of these laws,” can also greenlight imports regardless of the type of labor used if domestic consumption cannot be met otherwise.
In recent weeks, using the now-inactive email address and social media accounts, DNAinfo located a man who said he wrote the letter that Wilson found.
In a two-hour phone interview, a man who identified himself as Njong said he wrote the letter during his three-year prison sentence in the eastern city of Qingdao, Shandong Province.
Unprompted, Njong described obscure details in the letter, like its mention of Samuel Eto’o, a professional soccer player on English premiere league team Chelsea, who like Njong is from Cameroon in West Africa.
He added that he wrote a total of five letters while he was behind bars — some in French that he hid in bags labeled with French words, and others in English, he said.
Njong, who is now 34, said he had been teaching English in the southern Chinese city of Shenzhen when he was arrested in May 2011 and charged with fraud, a crime he said he never committed.
He said he was held in a detention center for 10 months while awaiting a government-sponsored lawyer, who represented him at his court trial and sentencing. He said he was barred from contact with the outside community.
Njong’s arrest and imprisonment were confirmed by his legal aid lawyer in China, whose name DNAinfo is withholding for the lawyer’s protection.
Embassies for Cameroon in Beijing and Washington did not return emails or calls for comment. The Chinese embassy in New York did not respond to requests for comment.
Njong said he was imprisoned in the eastern city of Qingdao, Shandong Province, where he was forced to work long days in a factory, starting at 6 a.m. and continuing as late as 10 p.m. He sometimes made paper shopping bags like the one from Saks, while other times he assembled electronics or sewed garments.
Each prisoner was required to meet a daily production quota, Njong said. He said he and the other convicts were given a pen and paper to record their productivity — and that he used that pen and paper to secretly write his letters.
“We were being monitored all the time,” Njong said. “I got under my bed cover and I wrote it so nobody could see that I was writing anything.”
He said he hoped the letter would help lead someone to him.
“Maybe this bag could go somewhere and they find this letter and they can let my family k
now or anybody [know] that I am in prison,” explained Njong.
Njong said he was discharged from prison in December 2013 — he received a reduced sentence for good behavior — and was put on a plane back to Cameroon, where he reunited with relatives who had no idea what had happened to him and had believed him to be dead, he said.
After struggling to find work in his home country, Njong recently moved to Dubai and secured a job that will allow him to stay there.
He said that though his imprisonment ran its course without intervention, he was happy that his letter made its way into at least one person’s hands.
“It was the biggest surprise of my life,” said Njong. “I am just happy that someone heard my cry.”
Wilson, who has never spoken to Njong, said she thinks about his plea for help all the time. She had always been mindful of the products she purchased and where they were made in a bid to avoid sweatshop labor, but she never thought to worry about generic products like shopping bags.
Wilson has worked for the nonprofit Social Accountability International for the last four years.
“This has been the biggest eye-opener for me,” Wilson said. “I have never once thought about the people making my shopping bag or other consumable products like the packaging of the food I buy, or the pen I write with or the plastic fork I eat my lunch with.”
U.S Manufacturing: U.S. Production Costs Catching Up With China
in NewsU.S. factories can make goods at the same cost or even cheaper than those made in Eastern Europe, according to a Boston Consulting Group report on Friday. And it is now less than 5% cheaper to make goods in China compared with the U.S.
Global shifts in manufacturing costs can be seen beyond America’s borders, the report said. Manufacturing in Mexico is more cost effective than in China, for example, while Brazil has become one of the most expensive manufacturing centers in the world.
These kinds of changes have prompted American businesses to rethink their supply chains in the aftermath of the global recession. Faced with rising wages in China and high oil prices, many are reconsidering the appeal of manufacturing close to home.
Wal-Mart Stores Inc. and Apple Inc. are just some of the companies that have committed to manufacturing some of their products in the U.S.
But Hal Sirkin, a coauthor of the BCG report, said many firms are still making production decisions “on the basis of a decades-old worldview that is sorely out of date.”
“They still see North America and western Europe as high cost and Latin America, Eastern Europe and most of Asia — especially China, as low cost,” he said in a Friday statement. “In reality, there are now high- and low-cost countries in nearly every region of the world.”
TPP: What's At Stake With The Trade Deal?
in UncategorizedUS President Barack Obama’s trip to Asia this week and his meetings with Japanese Prime Minister Shinzo Abe and South Korean President Park Geun-hye present an important opportunity to refocus attention on the TPP.
It is the most significant trade agreement the US is negotiating, representing 40% of world trade and a destination for over 60% of US exports.
As importantly, the TPP is strategically significant as it is the economic dimension of a broader US rebalancing towards Asia.
The two largest economies involved in the TPP are the US and Japan. Their intensive bilateral discussions have been aimed at liberalising each other’s markets for a range of goods in sensitive areas such as agricultural products and cars.
Progress in US-Japan discussions will significantly improve prospects for concluding the TPP. Mr Obama should use his trip to Tokyo this week as an opportunity to push Mr Abe to liberalise faster.
More countries may also potentially join the trade grouping. South Korea is not a TPP member, but Ms Park has indicated the country’s desire to join.
China’s views of the TPP will also be discussed in Tokyo and Seoul. The US has made it clear that China is welcome to join the TPP if it can demonstrate a willingness to live up to the rules being negotiated.
This reflects the strategic dimension of the TPP – to be a template for economic growth in the region.
Over the last 12 months, most of the sticking points that Japan had against joining the TPP seem to have been resolved.
On the five so-called “sacred” agricultural products, the US has already agreed to let Japan keep its tariff on rice, wheat and sugar in exchange for Japan taking non-tariff measures to increase the imported quantities. On beef, Japan seems to have gotten away by agreeing to lower tariffs by 9% in the distant future. Negotiations are still ongoing about the tax restrictions on pork.
The domestic political climate also favours Mr Abe. The rival opposition party, the Democratic Party of Japan, promoted the TPP while it was in power. Among major opposition parties, the Japanese Communist Party is the only one who has been consistently against the TPP.
According to a poll by Japan’s public broadcaster NHK, 31% of people supported joining the TPP, while 14% were against it and 45% said they were indifferent.
Japan’s government estimates the economy will expand by 0.66% as a result of the elimination of tariffs. When we include non-tariff deregulation, the economic benefit will be much larger, probably to the tune of 2% to GDP.
Beyond economic pluses and minuses, the TPP brings forth a much broader and compelling national interest as far as Japan is concerned. With geo-political pressure from China intensifying, it is also in Japan’s interest to solidify its alliance with the US and other Asia-Pacific nations.
While I believe any political arrangement to isolate China would be neither wise nor feasible, a strong economic alliance among Asian countries would be a good bargaining chip to convince China towards a friendlier and mutually beneficial relationship with Japan.
Japan should and is ready to embrace the TPP.
China stands to gain considerably by joining the TPP. Most immediately, it would add China to a growing coalition of countries co-operating to increase trade and investment across dimensions that have been frustrated in traditional multilateral forums.
Moreover, joining negotiations with high ambitions provides China greater scope for defining its own form of participation than abstaining and joining later, after an agreement is reached by earlier members.
An omission as notable as China’s weakens the total benefits of any agreement reached. In addition to helping the TPP build momentum, Beijing throwing its weight behind the TPP would also help frame China as a meaningful advocate for reform and positive change.
Over the past few years economic growth in China has slowed by about one-quarter as debt ballooned.
The TPP’s focus on services, investment and government procurement, among other trade issues, would dovetail nicely into China’s current efforts to reform its economy. This includes managing local government debt while growing social services offered to a larger share of rural-urban migrants.
China joining the TPP would offer immediate reputational benefits, and plant the seeds for boosted economic activity once an agreement is reached.
Given China’s ambitions, abstaining from the TPP would not only be a conspicuous omission, it could also sow the seeds for slower investment and services trade activity in the future, given stronger policy incentives elsewhere.
Vietnam is set to gain the most from the TPP due to the potential for a greater share of the apparel and footwear market, particularly in the US and Japan.
In 2012, Vietnam exported almost $7bn (£4.2bn) worth of apparel to the US, which accounted for 34% of US apparel imports. Vietnam also exported $2.4bn worth of footwear.
The TPP will allow Vietnam to export apparel to the US at a 0% tariff rate, which will make Vietnamese exports even more competitive.
Vietnam enjoys several competitive advantages, such as low labor costs, and benefits from being closer in proximity to major textile exporters China and South Korea. It also enjoys strong government support such as subsidies on financing, energy and trade promotion.
This is unlike most US free trade agreements which adopt a “yarn-forward rule”, which states that yarns used to make the textile or apparel must have been produced in the TPP country.
The yarn-forward rule benefits the US yarn and fabric industry because it exports yarn and fabrics to TPP countries like Vietnam. The industry accounts for two million jobs in the US.
However, the “yarn-forward rule” does not benefit Vietnam since most of its yarns and fabrics are sourced from China and South Korea, which are non-TPP countries.
There are other challenges that would have an impact on Vietnam. TPP rules relating to state-owned enterprises may affect the government’s dominance in the garment industry.
According to the US Congressional Research Service, Vinatex, which is owned by the Vietnam government, reportedly accounts for 40% of apparel production and 60% of textile production.
It remains an open question as to whether the TPP rules will prompt greater privatization of the sector.
Adidas and Nike Supplier Goes on Strike in China, Halting Output
in UncategorizedWorkers at the shoemaker, a supplier to companies including Adidas AG and Nike Inc. continued to strike for a seventh day, disrupting output, spokesman George Liu said today. Yue Yuen, based in Hong Kong, offered to add a monthly living allowance of 230 yuan ($37) at its factories in southern China starting May 1, Liu said yesterday. It also agreed to bring forward to next month a social-security benefit plan originally scheduled for 2015, he said.
Workers have disrupted production in Yue Yuen’s Dongguan factory complex, which employs more than 40,000 people, since April 14 in a dispute over pay, benefits and the right to pick their own union. More than 50 percent of the workers were on strike today, Liu said. China Labour Watch, which estimated the striking workers at about 30,000, said a small number had returned to work, without quantifying it.
Employees were seen coming to the plant, clocking in and then leaving yesterday. Some workers, who asked not to be identified because they or their family members could lose their jobs, said yesterday that they were still on strike.
Rising CostsThe labor dispute adds challenges to Chinese manufacturers faced with disruptions as wages climb and workers demand better compensation. Rising costs have also prompted some employers to move production abroad.
Employees interviewed at the factory yesterday and on April 19 said the company had failed to agree on demands for more pay, a change in contract status and reimbursement for unpaid benefits contributions. Some demanded no punishment for strikers and the right to elect their own union leaders.
At least 80 percent of the workers won’t take the offer, said Xiang Feng, 28, a worker in the factory’s finance department. The company’s plan to raise monthly contributions for social security would make it compulsory for employees to boost their own share of payments, she said.
“Workers may end up with a take-home salary almost unchanged or maybe even lower than before,” Xiang said.
More DemandsThe strikers expanded demands after an initial dispute over contributions to government-mandated social security and housing benefits for workers. The local government is fully aware and supportive of Yue Yuen’s proposed plan, Liu said.
Monitoring group China Labour Bulletin said on its website strikers at the Dongguan facility numbered at least 10,000, while Yue Yuen said April 16 that more than 1,000 were striking. Wal-Mart Stores Inc. and International Business Machines Corp. faced strikes earlier this year in China by workers demanding better compensation.
China’s wages are set to increase by 10 percent or more in 2014, driving more low-cost manufacturers out of the country and boosting consumption, according to analysts at firms including Bank of America Corp.
Nike has produced more shoes in Vietnam than in China since 2010. Adidas said in 2012 it would close the last factory it owned in China.
Riot PolicePolice with riot gear and dogs were present outside Yue Yuen’s 1.4 million-square-meter (15 million square-foot) Dongguan complex yesterday. Dozens of workers were taken away by police last week, the official Xinhua News Agency reported April 17, without saying why the workers were taken. No one was injured and there were no clashes, Xinhua reported.
Police have told workers not to congregate around the factory, said three workers who asked not be identified because they or their family members could lose their jobs.
Taiwan-based Pou Chen Group, the shoemaker’s parent company, is in discussions with the local government to resolve the striking workers’ concerns and an investigation will be conducted as soon as the strike ends, Adidas China said in an e-mailed statement April 18.
Nike is aware of and concerned by the events and is “continuing to monitor the dialog between factory management and the workers, as well as production at the factory,” the Beaverton, Oregon-based company said by e-mail on April 18.
Operations at a Yue Yuen factory in Jiangxi province in eastern China have returned to normal today after a production disruption, Liu said. Workers began a strike April 18 because they didn’t want to pay social security insurance, he said.
Yue Yuen, which had 423,000 employees as of 2012, was founded in 1988 by Taiwanese owners and has factories in China, Vietnam and Indonesia, according to its website.
Learn How One American Manufacturer Is Fighting to Keep Jobs in the USA
in UncategorizedWhen an American made product is purchased by a consumer it means they have given manufacturers a reason to keep jobs in the USA. Keeping Americans employed means working class families have money for education, homes, and yes home resort items such as spas that were not previously afforded. It is amazing how buying American made products can trigger a positive economic cycle which will eventually have an upward effect on the quality of life for Americans across the nation and it all can be done by purchasing products that are Made in the USA.
Small or large any purchase of products Made in the USA helps a member of an American community flourish. By encouraging consumers to make a conscience decision to buy American made products, Coleman® Spas will help build the economy and rejuvenate the strength and determination of the American spirit.
To learn more about Coleman® Spas visit www.colemanspas.com. Members of the media interested in speaking with a Coleman® Spas representative contact Amy Malone, amalone@colemansale.com or 909-620-0480.
About Coleman® Spas
The Coleman® story began over 114 years ago when W.C. Coleman began manufacturing lanterns in Wichita, Kansas. Since then, Coleman® has built its trusted reputation based on its beliefs that nothing is really sold until it gives 100% satisfaction and that every Coleman® product must be the best of its kind. Customers trust that Coleman® products will provide all the comforts of home on any dark and cool night under the stars. Coleman® has been a respected name in the world of outdoor recreation for decades and has gained a solid reputation with consumers by manufacturing the world’s best camping products.
The same innovation and exploration that ignited Coleman® lanterns has inspired the creation of the Coleman® Spas collection. Coleman® Spas are manufactured in the United States with cutting-edge technology and affordability. Coleman®Rugged Rotomold Spas, Acrylic Spas and Swim Spas are built with quality and can be trusted to last from generation to generation. Buy Coleman® Spas and buy with confidence.
Dam Shame: Hoover’s Workforce Nears Retirement – Gov’t Scrambles To Fill Jobs
in NewsA wave of retirements is about to hit Hoover. Two-fifths of the dam’s current employees will be eligible for retirement in the next five years, leaving the government scrambling to fill 40 upcoming vacancies.
The Interior Department agency that oversees Hoover is moving to fast-track hiring for its department-wide openings. But the dam’s aging workforce, mostly baby boomers closing in on retirement age, are part of a specialized group of hydroelectric engineers and electricians with a skill set not widely taught or available across much of the country, spokeswoman Rose Davis told FoxNews.com.
“It’s an interesting choreography at the dam,” she said, noting the next batch of workers will have to ditch their high-tech training tools and approach fixes using classic engineering techniques.
“It’s hands-on training,” said Davis, with the department’s Bureau of Reclamation. “We teach mechanics and hydro electricians how the dam works. If the signals go off, this is what it means. Do you hear something funny? Do you smell something funny? We teach them to fix generators from the 1930s.”
Hiring at the massive dam-turned-tourist attraction has slowed significantly in recent years, with the biggest blows coming during last year’s partial government shutdown and the sequester — a series of automatic budget cuts that went into effect on March 1, 2013.
The Hoover Dam, located 30 miles southeast of Las Vegas, was constructed in the 1930s and is considered one of the country’s finest engineering and architectural achievements. Located on the border of two states, the structure harnesses the power of the Colorado while creating America’s largest reservoir. It provides billions of kilowatt-hours of hydroelectric power to residents of Nevada, Arizona and California — and the lake supplies water to those states.
Towering at 726 feet high and 1,244 feet long, the dam was one of the largest man-made structures in the world when it was constructed. Contractors were given seven years to construct the 6.6 million-ton barrier. They finished it in five, with a total workforce of 21,000.
But the folks tasked with keeping the site operational today are dwindling – a stark reminder not lost on Interior Secretary Sally Jewell when she visited the area in December.
During a tour of the control center for the Hoover, Parker and Davis dams, Jewell, 58, noticed it was being run by two men – the younger being her age.
“I’d like to say that was a good thing, but it really isn’t very good,” The Las Vegas Review-Journal reported her saying.
Instead, engineers who have retired are now being rehired as consultants to teach a new generation of workers how to handle turbine generators and other equipment crucial to the day-to-day operation.
“The older (worker) had retired and was brought back as what we call a returning annuitant,” Jewell said. “Lives in Alabama. Flies back once a week to take his turn running Hoover Dam.”
At Rowan University in New Jersey, which houses a popular engineering program, spokesman Joe Cardona explained that the Nevada site is “a very niche industry.”
“You are not going to find someone teaching 1930s technology so what’s happening at the Hoover Dam is that they are partnering with local universities in Arizona and Utah to find fits for these spots,” he said.
It’s not to say that the Hoover Dam hasn’t received any upgrades. It has.
Most recently, the government commissioned a new wide-head turbine for the dam’s N8 unit which almost immediately produced a 2 percent efficiency gain. Other improvements include replacing old cast-steel wicket gates with new stainless steel ones that open wider to allow more water in with more force.
Six of the dam’s 17 turbine generators have gotten upgrades since 2005.
But another problem plaguing the Reclamation department is retention.
As of December, 140 of the 800 employees working in the Reclamation’s Lower Colorado Region were eligible to retire in less than five years.
“The millennials are hardest to keep,” Davis said. “We lose a lot of people to the private sector. This includes everyone from human resources to engineers, who may think, ‘I might need to move to the private sector to get my next raise.’”
Some of the engineering jobs — including those in the mechanical, civil and electrical fields — listed under the Bureau of Reclamation on USAJOBS.gov offer salaries exceeding $90,000 for workers with more experience. The jobs, though, can pay as low as roughly $40,000 for those with less experience, depending on the position and location.
Still, Davis said finding workers for the Hoover location – a national landmark only a short drive from Las Vegas – is much easier than filling spots in more remote areas. Next door in California, state officials have been struggling to fill posts and retain workers for the vast State Water Project, a massive water and power system.
Chris McManes, a spokesman for the Institute of Electrical and Electronics Engineers, told FoxNews.com that making sure specialized jobs like the ones at Hoover are backfilled is pivotal.
“When it comes to hydroelectric power generation and power engineering in general, IEEE-USA is concerned that we have an adequate supply of younger electrical engineers ready to fill the jobs of people who are retiring,” he said.
Made in USA Steel To Be Used On New Tappan Zee Bridge
in UncategorizedThe state Thruway Authority included a Buy America provision in its contract with Tappan Zee Constructors, the consortium designing and building the bridge, that requires it to use steel and iron manufactured in the United States.
Buy America provisions restrict the use of foreign steel, iron and items containing steel and/or iron on a contract to one-tenth of 1 percent of the total contract cost or $2,500, whichever is greater, according to the DOT.
The Thruway Authority is replacing the Tappan Zee Bridge with a 3.1-mile twin-span cable-stayed bridge with angled main span towers, making it the largest bridge construction project in the history of New York. It will also be the world’s widest bridge.
It’s also the biggest transportation design-build project in U.S. history, according to Infra Insight, a blog that tracks infrastructure projects.
The inclusion of American-made steel plate in the new bridge bucks a trend of steel made in China being used in major infrastructure projects. China-made steel was recently used in the Verrazano-Narrows Bridge and San Francisco-Oakland Bay Bridge.
ArcelorMittal’s Burns Harbor facility supplied high-performance steel for the bridge pilings last year and will continue to provide steel to the steel fabricators High Industries and Hirschfeld Industries Bridge, who are two of the major contractors on the five-year project.
“We are very pleased to have been selected to provide our high-performance plate material for this major, historic infrastructure project,” said ArcelorMittal USA Plate CEO John Battisti. “Our USA plate team has been keenly involved in weekly meetings with our customers on the planning, development and delivery of these plate products, to ensure they are pleased with our performance during all phases of the project.”
American Institute of Steel Construction President Roger Ferch said the contract shows the U.S. steel industry remains competitive.
He said the award of the Tappan Zee structural steel contract to American companies “validates the fact that the United States steel construction industry has the capacity, capability and collaborative spirit to meet our nation’s needs.”
To date, 53 of the 121 subcontractors and suppliers working on the project — approximately 44 percent — are disadvantaged business enterprises, according to a press release from the state.
Disadvantaged business enterprises are small businesses which are at least 51 percent owned by socially and economically disadvantaged individuals. The federal certification includes “minority-owned business enterprises” and “women-owned business enterprises” that meet certain federal requirements.
Gov. Andrew Cuomo and the Federal Highway Administration made a commitment to ensure that at least 10 percent, or $314 million, in subcontracts associated with the New NY Bridge project will go to businesses that qualify as disadvantaged business enterprises, according to the state.
Among the subcontractors, 23 percent of the disadvantaged business enterprises are based in the Hudson Valley.
“Our team is committed to providing meaningful opportunities for disadvantaged businesses and the team members of Tappan Zee Constructors have a solid track record of meeting and exceeding participation goals,” Carla Julian, TZC community outreach/diversity manager, said in a press release.
Tappan Zee Constructors is expected to finish the bridge, which is designed to last 100 years without any significant structural maintenance, in early 2018.
Zippo Lights Up Homegrown Manufacturing
in Consumer ProductsVeterans Benefits Bill Blocked
in UncategorizedRepublicans and Democrats normally agree on the need to enhance benefits for the nation’s 22 million veterans and their families, but Republican senators wanted to lower the amount of spending in the bill. The GOP senators also wanted to include a measure that would have imposed new sanctions against Iran, which President Obama has warned against doing at this time. Senate Majority Leader Harry Reid blocked the amendments from being considered.
“Shame on the Republicans for bringing base politics into a bill to help the veterans,” Reid said on the Senate floor Thursday morning.
The bill would have improved benefits for veterans, including better health care and dental services provided by the VA. It also would have guaranteed post-9/11 veterans access to in-state tuition rates at public colleges and universities in any state.
American Company Goes To The Mat For ‘Made In America’
in American Made, Automotive, Domestic Sourcing, Jobs, Made in USA, Manufacturing, Production, Small BusinessAt a time when flag-waving couldn’t be more in fashion, David MacNeil knows a thing or two about standing up for American products. Or at least resting your muddy boots on them. While creating jobs in the process.
U.S. Olive Oil Producers Want Stricter Guidelines For Imports
in UncategorizedBut it doesn’t seem to be working. The recently passed farm bill excluded a clause that would have allowed for government testing of domestic and imported olive oil to make sure it was labeled correctly. The main concern is foreign producers cutting their extra virgin olive oil with other oils yet still labeling it as extra virgin.
The U.S. Department of Agriculture classifies olive oil as “virgin olive oil, or blends of virgin olive oil and refined olive oil.”
A recent U.S. International Trade Commission report on olive oil outlines how international standards are often unenforced, which can allow for mislabeling. The report highlights the differences in each country’s standards, production, consumption and distribution.
A “national standard of identity” enforced by the government would permit “more aggressive U.S. action,” Eryn Balch, North American Olive Oil Assn. executive vice president, said in a statement. That action would include injunctions and seizures against unscrupulous participants in the olive oil market.
The American Olive Oil Producers Assn. plans to keep putting pressure on the USDA to perform mandatory quality testing for all olive oils.
Are you an import-only olive oil buyer? Let us know in the comments below.
Why China's Ugly Manufacturing Report Should Be Ignored
in UncategorizedMarkets around the world started selling after the report came out.
However, economists agree that we shouldn’t jump to any conclusions based on this one report.
“Surely this flash PMI has quite big market impact and markets have already been hit today,” said Bank of America Merrill Lynch’s Ting Lu. “However, our suggestion is still to downplay it due to the poor quality of this HSBC flash PMI in the year beginning. The survey period of the HSBC flash PMI was 12-18 Feb, but the first six days in February are national holidays and many SMEs, which could be the majority of the HSBC PMI sample, were not open until mid-Feb, so the quality of this flash PMI could be quite low.”
“Also note that PMI data are heavily seasonally adjusted, but the seasonal adjustment is quite inaccurate due to the different timing of Chinese New Year holidays and short record (since year 2005),” added Lu. “Actually the HSBC PMI did a poor job in predicting turning points of the Chinese economy in the past two years.”
The HSBC’s PMI is computed using monthly replies to questionnaires sent to purchasing executives.
“The sample period is very short, covering only seven days (12-18 February) according to the index’s compiler, Markit, with a response rate of approximately 85%-90% our of a total sample of about 420 manufacturers,” said Barclays’ Jian Chang and Jerry Peng, who also acknowledged many of Lu’s criticisms.
Unfortunately, market participants already appear to be trading on the news.
NoNetz Defies Industry Experts
in UncategorizedNoNetz announced today that they will do everything in their power to continue to have their swimsuits made in Brooklyn, NY. Expert fashion and business consultants have advised NoNetz to go offshore to China, stating it was the only way to get to profit. After much internal debate, they have decided to stick to their original commitment, believe in the loyalty of their customers, and keep jobs and the money in this country for as long as they can. CEO, Kym Timpano: “NoNetz needs to sell at least 3000 bathing suits this year in order to remain made here.” They are actively petitioning local and state politicians to incent and/or subsidize manufacturers and business owners who stay in this country. What they have currently found is although Made in the USA is popular rhetoric, there is little to no action plans behind it. It is NoNetz’s belief that being a good business person and being a good American should not be mutually exclusive concepts.
About NoNetz Anti-Chafe Swimwear
NoNetz has replaced the traditional mesh/net brief in boys and men’s bathing suits with their unique, anti chafe, anti bacterial liner. Their liner has completely eliminated the chafing rash 9 out of 10 men and boys experience at the beach.
Wave Good-bye to Irritating Swimwear.
For more information, please visit http://www.NoNetz.com.
About NoNetz
We are sisters, wives and mothers who love beach vacations, but for years have seen our sons and husbands get uncomfortable, chafing rashes from the mesh in their bathing suits. Then our sister experienced what millions of other Americans are currently experiencing: Loss. She lost her health, her job, her marriage & her house. We decided to develop a better, more comfortable bathing suit for guys with the hope that one day, we can help our sister build a better, more comfortable life for her and her family.
For more information, please visit http://www.NoNetz.com.
Be Sociable, Follow us!
U.S. Olympian Duffle Bags Made By Local Company
in Uncategorized“One of their designers was searching online, found our website, gave us a call around 5 [p.m.] one day. Someone happened to be in the office still after everyone had left; picked up the call and said ‘yeah, that’s something we can do,” Jo Nathan Abbey said.
“They made it apparent right from the beginning how important it was that all companies that manufacture products from the U.S. It’s an honor to work with a company like Ralph Lauren,” Carol Maynard said.
Over 500 duffles were made for each Olympian and Paralympian. Extras went to the Olympic Village store and are already sold out.
“To see our products get in something as big as this, it’s more personal than an industrial product. It’s huge for every employee. Morale is definitely up because of that,” Maynard said.
“Sure, Fieldtex is hoping their Olympic exposure leads to more business, but that wasn’t the point. They just wanted to be involved. And what’s more American than a homegrown company with a melting pot of employees from 23 different nations supporting Team USA at the Olympics,” Abbey said.
“It really pulled people together. We have something like 170 employees and we had people in the office snipping threads towards the end making sure every little piece got together,” production manager Cynthia Helander said.
The bags were actually produced last summer, and speaking of summer-
“We are going to be waiting for that next call from Ralph Lauren and for the next Olympics,” she said.
Riverside To Close Cut/Sew Factory, Laying Off 140 People
in Uncategorized“We worked diligently for many months to secure new contracts that required ‘Made in USA’ garments. However, a recent volume reduction in our largest federal government uniform program made the costs of domestic production unsustainable,” said Lisa V. Zeanah, Riverside chief executive officer.
The news was broken to employees Tuesday.
Zeanah said the closing will complete the transition of Riverside’s production of uniforms and apparel to contractor partners.
“We have decided to close our remaining domestic production facilities and move this volume to our established contractor partners. We value the dedication and long-term commitment our employees have shown over the years, but at present we have exhausted our options to keep Riverside employees sewing garments in he USA,” she added.
Zeanah, daughter of former Riverside CEO Jerry Vereen, said senior management, customer service, website design, product development, supply chain management, marketing, accounting and quality control laboratory testing will continue at the Moultrie headquarters at 301 Riverside Drive.
Zeanah said it was a difficult decision but that the company felt that consolidating production into fewer facilities will improve “our ability to manage our supply chain and will position Riverside for solid growth for many years to come.”
She added, “We hope that the community will support the affected employees as they transition into other work. We are coordinating with our local Department of Labor to provide assistance.”
Darrell Moore, executive director of the Colquitt County Development Authority, said, “Riverside has been a cornerstone of the Colquitt County community for more than 100 years. They have provided stable employment opportunities for our citizens and have been a model corporate citizen. Our community will do everything we can to support Riverside as they work through this transition and will be there to help them maintain their operations in Moultrie.”
Founded by and managed by the Vereen family for over a century, Riverside has provided work wear and protective apparel in the U.S. In addition to Moultrie, Riverside owns and operates facilities in Atlanta and the Dominican Republic. Additional information about Riverside can be found at www.RiversideUniforms.com and www.RiversideFR.com.
Medicines Made in India Set Off Safety Worries
in UncategorizedIndia’s pharmaceutical industry supplies 40 percent of over-the-counter and generic prescription drugs consumed in the United States, so the increased scrutiny could have profound implications for American consumers.
F.D.A. investigators are blitzing Indian drug plants, financing the inspections with some of the roughly $300 million in annual fees from generic drug makers collected as part of a 2012 law requiring increased scrutiny of overseas plants. The agency inspected 160 Indian drug plants last year, three times as many as in 2009. The increased scrutiny has led to a flood of new penalties, including half of the warning letters the agency issued last year to drug makers.
“There are some people who take a very sinister view of the F.D.A. inspections,” Keshav Desiraju, India’s health secretary until this week, said in a recent interview.
The F.D.A.’s increased enforcement has already cost Indian companies dearly — Ranbaxy, one of India’s biggest drug manufacturers, pleaded guilty to felony charges and paid a $500 million fine last year, the largest ever levied against a generic company. And many worry that worse is in store.
“If I have to follow U.S. standards in inspecting facilities supplying to the Indian market,” G. N. Singh, India’s top drug regulator, said in a recent interview with an Indian newspaper, “we will have to shut almost all of those.”
The unease culminated Tuesday when a top executive at Ranbaxy — which has repeatedly been caught lying to the F.D.A. and found to have conditions such as flies “too numerous to count” in critical plant areas — pleaded with Dr. Hamburg at a private meeting with other drug executives to allow his products into the United States so that the company could more easily pay for fixes. She politely declined.
India’s drug industry is one of the country’s most important economic engines, exporting $15 billion in products annually, and some of its factories are world-class, virtually undistinguishable from their counterparts in the West. But others suffer from serious quality control problems. The World Health Organization estimated that one in five drugs made in India are fakes. A 2010 survey of New Delhi pharmacies found that 12 percent of sampled drugs were spurious.
In one recent example, counterfeit medicines at a pediatric hospital in Kashmir are now suspected of playing a role in hundreds of infant deaths there in recent years.
One widely used antibiotic was found to contain no active ingredient after being randomly tested in a government lab. The test was kept secret for nearly a year while 100,000 useless pills continued to be dispensed.
More tests of hospital medicines found dozens more that were substandard, including a crucial intravenous antibiotic used in sick infants.
“Some of the fake tablets were used by pregnant women in the post-surgical prevention of infections,” said Dr. M. Ishaq Geer, senior assistant professor of pharmacology at the University of Kashmir. “That’s very serious.”
Investigations of the deaths are continuing, but convictions of drug counterfeiters in India are extremely rare.
Satish Reddy, president of the Indian Pharmaceutical Alliance, said Indian drug manufacturers were better than the F.D.A. now contends. “More rigorous enforcement is needed, for sure, but this impression that India is overrun with counterfeits is unjustified,” Mr. Reddy said.
But Heather Bresch, chief executive of Mylan, which has plants in the United States and India, said regulatory scrutiny outside the United States was long overdue. “If there were no cops around, would everyone drive the speed limit?” Ms. Bresch asked. “You get careless, start taking risks. Our government has enabled this.”
She has gone to conclaves of regulators from Europe and elsewhere to coordinate policing, but Indian officials have so far not attended such meetings.
Many of India’s drug manufacturing facilities are of top quality. Cipla, one of the industry’s giants, has 40 plants across the country that together can produce more than 21 billion tablets and capsules annually, and one of its plants in Goa appeared just as sterile, automated and high tech on a recent tour as those in the United States.
Cipla follows F.D.A. guidelines at every plant and on
every man
ufacturing line, and the company exports more than 55 percent of its production, said Yusuf Hamied, the company chairman.
But Benjamin Mwesige, a pharmacist at the Uganda Cancer Institute in Kampala, said in an interview in July that the institute had stopped buying cancer drugs from India in 2011 because it had received shipments of drugs that turned out to be counterfeit and inactive, with Cipla labels that Mr. Mwesige believed were forged.
He became suspicious when doctors began seeing chemotherapy patients whose cancer showed none of the expected responses to the drugs — and who also had none of the usual side effects. The drugs that had been prescribed were among the mainstays of cancer treatment — methotrexate, docetaxel and vincristine. Laboratory tests confirmed that the drugs were bogus, and Mr. Mwesige estimated that in 2011 20 percent of the drugs that the institute bought were counterfeit.
Enforcement of regulations over all is very weak, analysts say, and India’s government does a poor job policing many of its industries. Last month, the United States Federal Aviation Administration downgraded India’s aviation safety ranking because the country’s air safety regulator was understaffed, and a global safety group found that many of India’s best-selling small cars were unsafe.
India’s Central Drugs Standard Control Organization, the country’s drug regulator, has a staff of 323, about 2 percent the size of the F.D.A.’s, and its authority is limited to new drugs. The making of medicines that have been on the market at least four years is overseen by state health departments, many of which are corrupt or lack the expertise to oversee a sophisticated industry. Despite the flood of counterfeit drugs, Mr. Singh, India’s top drug regulator, warned in meetings with the F.D.A. of the risk of overregulation.
This absence of oversight, however, is a central reason India’s pharmaceutical industry has been so profitable. Drug manufacturers estimate that routine F.D.A. inspections add 25 percent to overall costs. In the wake of the 2012 law that requires the F.D.A. for the first time to equalize oversight of domestic and foreign plants, India’s cost advantage could shrink significantly.
Some top manufacturers are already warning that they may leave, tough medicine for an already slowing economy.
“I’m a great nationalist, an Indian first and last,” Dr. Hamied said. “But companies like Cipla are looking to expand their businesses abroad and not in India.”
American businesses and F.D.A. officials are just as concerned about the quality of drugs coming out of China, but the F.D.A.’s efforts to increase inspections there have so far been frustrated by the Chinese government.
“China is the source of some of the largest counterfeit manufacturing operations that we find globally,” said John P. Clark, Pfizer’s chief security officer, who added that Chinese authorities were cooperative.
Using its new revenues, the F.D.A. tried to bolster its staff in China in February 2012. But the Chinese government has so far failed to provide the necessary visas despite an announced agreement in December 2013 during a visit by Vice President Joseph R. Biden Jr., said Erica Jefferson, an F.D.A. spokeswoman.
The United States has become so dependent on Chinese imports, however, that the F.D.A. may not be able to do much about the Chinese refusal. The crucial ingredients for nearly all antibiotics, steroids and many other lifesaving drugs are now made exclusively in China.
Manufacturing Renaissance Real, Maybe Not What You Think
in UncategorizedBy 2010, the manufacturing dominance America had relied on since the late 1800s was officially over; that year China supplanted the U.S. as the world’s largest manufacturing nation in terms of output, producing goods worth $1.92 trillion compared to America’s $1.86 trillion, according to United Nations data.
Yet in the years since the financial crisis, U.S. manufacturing has begun reinventing itself and rising again. There is indeed a renaissance in American manufacturing, economists say, and one that can still be a source of pride. But the sector looks far different from the past, offering fewer jobs and demanding higher skills than ever before.
Since 2010, the U.S. has regained a net 568,000 factory jobs. The Reshoring Initiative, an organization aiming to “return manufacturing home,” estimates that about 150 companies have “reshored,” or moved positions from overseas to the U.S. since 2010, contributing about 80,000 jobs or 15 percent of the total manufacturing jobs added.
“Jobs are coming back, and there is a renaissance,” said Claude Barfield, a scholar at American Enterprise Institute and former consultant to the Office of the U.S. Trade Representative. “There are jobs in widgets you would never have thought of before, but that’s not always translated into lots and lots of jobs.”
There are several reasons why more and more companies want to manufacture in the U.S. now. Energy costs have declined, and American labor productivity has increased. International transportation is still costly, and shortening a supply chain can save a company money while giving it more control over production. And wages in China and surrounding areas are starting to rise, along with political unrest in East Asia, Barfield said.
The expansion of the last four years is continuing. Durable goods manufacturing contributed more than any other sector to U.S. economic growth in 2012, according to the most recent data available from the Bureau of Economic Analysis. The durable goods output rose 9.1 percent in 2012, after increasing 6.8 percent in 2011. By comparison, the private services-producing sector grew 2.7 percent in 2012.
Manufacturing’s dollar-share of gross domestic product increased in 2012 for the third consecutive year to 12.5 percent, its highest share of GDP since 2007, though still less than half its contribution during the 1950s.
David A. Rosenberg, chief economist for Gluskin Sheff + Associates Inc., said Monday that the Chicago Purchasing Managers Index for January shows that “manufacturing activity in the industrialized heartland has been expanding for nine months in a row.”
Even though U.S. manufacturing has contracted sharply since the mid-20th century and prospects that it will ever return to its former size are virtually nil, American manufacturing remains one of the most productive in the world, contributing $1.87 trillion to the nation’s economy in 2012, according to the Bureau of Economic Analysis. Though China is producing slightly more output than the U.S, its production takes about 10 times more workers.
In other words, American factories are producing more than ever with fewer workers. And unlike the low-end goods with thin profit margins produced in China and other developing nations (toys, shoes, consumer electronics, etc.), the expensive and complicated goods many American factories now produce — medical equipment, computer chips, commercial and military jets and oil and gas equipment, to name a few — require specialized skills.
“The U.S. has always been a leader in manufacturing,” Veronique de Rugy, senior research fellow at the Mercatus Center of George Mason University, said. “While it’s seen a slight decline in the past few years, it’s clear that it’s going through a renaissance right now. It is still not only leading, but really gigantic.”
De Rugy is quick to clarify that no one can know how much U.S. manufacturing will grow or for how long. But she believes the shift in global manufacturing taking place, with developing countries producing low-end goods and developed countries producing high-end goods, will make U.S. manufacturers increasingly attractive to American and foreign companies.
“I think what a lot of companies are realizing is that it may not be that cheap to produce abroad,” she said.
Chad Moutray, chief economist for the National Association of Manufacturers, said he’s seeing increased investment in American manufacturing.
“We keep hearing about manufacturers that are increasing production here,” he said. “There’s been a lot of investment from companies using natural gas, plastic, fertilizers.”
A lot of that investment is coming from abroad, he added.
According to a national poll conducted in early January and released Monday by the Alliance for American Manufacturing, Americans cite manufacturing job loss as a top economic concern, above taxes, income inequality, education and retirement security.
The White House has launched two hubs for high-tech manufacturing in Raleigh, N.C., and Youngstown, Ohio, connecting businesses to universities that can help the U.S. in advanced technologies. In his State of the Union address, President Barack Obama promised to launch six more hubs this year.
Stuart Hoffman, chief economist of PNC Financial Services Group, explains in a late-January report that the manufacturing sector seems well-positioned to continue growing this year, with recovery in Europe driving exports, job and income gains driving consumer spending, and a budget agreement between Obama and Congress that has reduced policy uncertainty and will likely increase business investment in equipment. “Manufacturing will continue to expand in 2014,” Hoffman wrote.
Senate Bill Would Benefit Manufacturing
in UncategorizedThe pilot program laid out in Senate Bill 6515 would allow five new manufacturing facilities statewide to receive a tax credit for a portion of each of their construction costs. At least two would have to be in Eastern Washington.
The goal, Young said, is to address Washington’s lack of incentives for attracting businesses. And when it comes to bringing in new and expanding businesses, it’s a competition with the rest of the U.S.
Each company would get a tax credit equal to their state and local retail sales taxes on the construction. The credit will max out after a project reaches $10 million.
The project must be a new building or multiple new buildings at a single site that are used primarily for manufacturing.
Today at 5 p.m. is the cutoff for voting on bills in their house of origin. The bill for the pilot program has passed the Trade & Economic Development committee and the Senate Committee on Ways & Means but still needs to be taken to a floor vote.
Businesses would have the flexibility to invest some of their business and occupation tax back into the company to hire more employees or to expand, Brown, R-Kennewick, told the Trade & Economic Development committee.
“This is just smart economic development which results in jobs,” she said.
Young said the proposal came out of an idea to have zones where business could locate and be exempt from paying business and occupation taxes as long as they reinvest that money to expand their business.
For example, New York has created tax free zones where businesses can open and expand. According to the Start-Up NY initiative, those businesses can be free from business, corporate, state, local, sales and property taxes for a decade.
Young said Washington can’t go quite that far because the state does not have an income tax.
But “we needed to have something that gave us an incentive to get businesses in here.”
The Tri-Cities needs to stop relying on Hanford and work on creating the future of the local economy, Young said. Bringing in more manufacturing also means bringing in jobs that pay well enough to support a family.
As mayor, Young’s goal is to see 1,000 new jobs created in Kennewick’s urban growth area. The city is in the process of getting that area expanded by 1,263 acres south of Interstate 82 and west of Highway 395 specifically for industrial development.
Benton County commissioners have not voted on the proposal yet. And Young said the city still will need to put in infrastructure to the area. City officials are in discussions with the state Department of Transportation on adding an interchange to connect Hildebrand Boulevard across I-82.
The pilot program was supported by the Tri-City Development Council, the city of Kennewick and the Tri-City Regional Chamber of Commerce.
Carl Adrian, TRIDEC’s president and CEO, told the Trade & Economic Development committee that it represents a measured approach that is a good step forward to addressing what the state needs to encourage businesses to choose Washington communities.
— Kristi Pihl: 582-1512; kpihl@tricityherald.com
Foxconn To Begin Manufacturing TVs in U.S. Soon?
in UncategorizedFoxconn already has a silent presence in the US; a partnership sees the Taiwanese company manufacture many of Vizio’s panels in Asia. Last month, Vizio and Foxconn demonstrated a 120-inch 4K TV at CES, and it appears that Foxconn’s chairman believes the only way that TV and similar models will make it to US stores will be if they’re made in the country.
A new TV plant in the US would represent a major investment in the country’s marginalized electronics manufacturing industry. Foxconn previously announced plans to open a $30 million facility in Pennsylvania that will employ 500. That plant is focused chiefly on research and development, an area that should be bolstered by a partnership with a further $10 million investment in research at Pittsburgh’s Carnegie Mellon University. Foxconn has also been meeting with Google recently to discuss a partnership in advanced manufacturing robotics, something that could be important for the creation of electronics in a country with relatively expensive labor when compared to China.
Foxconn Chairman Hopes to Step Back from Role
in UncategorizedHe outlined imminent plans for expanding manufacturing in the U.S. and producing 120-inch television sets. He also spoke about his hopes of passing on the baton to younger leaders by spinning off parts of his sprawling electronics empire. Gou said his aspirations have expanded beyond making gadgets to broader goals, such as assisting young entrepreneurs in Taiwan and creating higher-value jobs.
“I believe I can work for another decade, but even if I do, I want to change the type of work I am doing,” said the 63-year-old executive, adding that he wants to spend more time on medical research and public service, but has no plans to retire.
“I am trying to decrease the influence of Terry Gou at Foxconn.”
As proof, Gou asked different department heads — all clad like Gou in dark blue, Foxconn jackets — to speak in turn, although he frequently chimed in.
It was an unusual press event by any standards — held in an unheated warehouse with corrugated metal walls that housed the company’s annual internal science fair of sorts, where different departments showcased their best gadgets. These included a smart motorcycle that sends driving data to the cloud, and a wireless smartphone charger, both of which will be launched in Taiwan within months by Foxconn’s clients, executives of those departments said.
The display of cutting-edge technology hidden in a shabby warehouse is fitting for Foxconn — a company still largely known as a low-margin factory, but which harbors far greater ambitions.
While still dependent on its business of making iPhones and other gadgets for other companies, Foxconn has been expanding aggressively into businesses ranging from telecom services to software.
The company is also increasingly focused on building highly automated factories based not in China, but in the backyard of Foxconn’s customers.
“We are building factories in the U.S., in Indonesia, because we want to cater to customers there,” Gou said.
Gou said a two-hour conversation last November with a representative of U.S. investment promotion organization SelectUSA had spurred his interest in investing in the U.S. beyond the plant in Harrisburg, Pa., that has already been announced.
“We have many big projects in the U.S. coming up,” said Gou. “For instance, is it possible to make our 120-inch TVs in Taiwan and ship them over? It’s impossible. We have to make them on site.”
Gou has previously said the company was studying the feasibility of building an advanced large-screen panel factory in the U.S. Foxconn will begin mass-producing 120-inch TVs for Vizio in the fourth quarter, Gou said, although he did not specify where they would be produced.
Gou also said that he believed a strong manufacturing sector was a crucial underpinning for a country’s economy.
“Why is the U.S.’s middle class shrinking?” Gou asked. “It is because the manufacturing sector has left…I can’t agree with any economists who say that a bigger share of the service sector is always better.”
Gou also said the company is looking to hire 15,000 new engineers in Taiwan this year. “The problem is we can’t find so many,” he said.
Getting Back To Work
in UncategorizedUnlike unsuccessful government attempts to stimulate the economy through pet projects, the Wal-Mart initiative has the potential to lift a wide variety of U.S. manufacturers through its massive global distribution network. The Boston Consulting Group predicts the $250 billion investment will create 1 million jobs.
In an era when there are as many disincentives to work than incentives, the ad’s pro-production narratives are uplifting.
“At one time, I made things,” the voice of Rowe says during the “I Am a Factory” ad that starts with the image of a closed manufacturing site, complete with a padlocked gate. “I was mighty and then one day, the gears stopped turning.
“But I am still here, and I believe I will rise again. We will build things, and build families, and build dreams. It’s time to get back to what America does best.”
The ad then closes out with the sponsor’s message: “Over the next 10 years, we’re putting $250 billion to work to help create new manufacturing jobs in America.” And that’s followed by Rowe saying, “Because work is a beautiful thing.”
It’s an encouraging sign that the world’s largest retailer is making such an enormous investment in the world’s largest economy, which, until overtaken by China in 2010, also boasted the world’s largest manufacturing sector.
Perhaps America could reclaim that title if more companies followed Wal-Mart’s lead and the government made it less onerous to make products on our own soil.
We simply cannot get by with a service-based economy alone. It’s Economics 101: A country that produces little of what it consumes eventually will lack the wealth to consume anything. As the saying goes, we all can’t press one another’s pants for a living.
Some of us actually need to make the pants.
Bill Encourages US-Made Flags For Veterans' Graves
in UncategorizedMichigan now requires local governments to furnish a U.S. flag and holder for graves of local veterans upon the request of a veterans’ organization or five voters.
The bill requires local governments to post on their website that they bought foreign-made flags and flag holders because competitively priced and comparable-quality products made in the U.S. weren’t available.
Local governments not in compliance could have to pay up to $500 in fines.
8 Star Automobiles Made at American UAW Plants
in UncategorizedThat’s a great deal of venom directed the UAW’s way. A glance at the award-winning automobiles produced at UAW plants in the U.S. tells quite another story. From sports cars that pace the auto industry to compacts that sell more than any other model on the planet, union plants have countless feathers in their caps. Here are eight world-class cars and trucks made at America’s UAW plants.
The slick-looking Ford Fusion injected a considerable dose of style into the midsize segment known for its blandness. U.S. auto consumers responded to the new Fusion in kind, making it No. 11 in the list of top-selling vehicles of 2013. In fact, the Fusion’s 27 percent gain over its prior year sales was the biggest boost of any automobile in the top 15.
Good news about the Fusion became great news for Detroit when Ford announced it was bringing production of the car to its Flat Rock, Michigan, plant in August 2013. UAW officials joined Ford corporate officers in celebrating the arrival of the Fusion. As Volkswagen learned from its entirely unionized German plants, the road to automotive success is often paved with cooperation between workforce and management. In bringing production of its world-class car back to Michigan, Ford clearly agrees.
GM’s top-shelf sports car is cleaning up automotive awards. Fresh off its win as North American Car of the Year, there appears to be nothing capable of stopping it. The new iteration of the sports car legend improves upon both the horsepower and fuel efficiency of the previous model. How did Chevy pull off that feat? It’s one triumph of engineering that has industry observers suggesting Detroit is in the midst of a true revival.
UAW workers at the GM plant in Bowling Green, Kentucky, assemble the Corvette, where enthusiasts can tour the facilities. There may be no better example of craftsmanship on the auto market today.
Jeep may be part of Chrysler, which is part of Italian automaker Fiat, but the Jefferson North Assembly Plant where UAW Locals 7, 412, and 889 make the 2014 Grand Cherokee is pure Detroit. In August 2013, the plant celebrated the completion of its five-millionth vehicle — a Billet Silver 2014 Jeep Grand Cherokee.
Consumers are on board, too. The Grand Cherokee took twenty-first place among all vehicles sold in the U.S. in 2013 while winning Most Loved SUV in America from Strategic Vision. Critics agree as well. Autobytel.com named the Grand Cherokee 2014 SUV of the Year.
The one foreign-branded car on this list belongs to Japan’s Mitsubishi Motors Corporation. UAW workers at the Mitsubishi Motors North America plant in Normal, Illinois, make the Outlander Sport SUV that won Top Safety Pick designation from the Insurance Institute for Highway Safety (or IIHS) for 2014. If those laurels weren’t enough, the Automotive Science Group (or ASG) honored the Outlander Sport for Best All-Around Performance in 2013.
If the evidence points to any conclusion, it’s that United Auto Workers have no problem racking up awards for their automobiles — whether working for the Detroit Three or a foreign car company at an Illinois plant.
Talk about being on a roll. The Ford Focus is the best-selling car in China, which helped it become the best-selling car on earth for the second straight year when the stats were tallied in January 2014. The One Ford global approach is winning on many levels, but it all starts on the automaker’s home turf in Michigan.
UAW employees who assemble the Focus at the Wayne, Michigan, plant are the only Ford team that builds electric vehicles, plug-ins, hybrids, and old-fashioned gas-powered automobiles in the same facility. Milestone for 2013: Ford sold well over one million Focus models across the globe on the year.
The 2014 Motor Trend Car of the Year is — you guessed it — union-made at the GM Lansing Grand River plant. UAW Local 652 members assembled their millionth vehicle at the Lansing, Michigan, plant in 2013. Fittingly, it was the same 2014 Cadillac CTS that Motor Trend said took the fight to the top German luxury cars and won. Is it a coincidence that these elite vehicles are all union-made in the U.S. and Germany?
Perhaps, but the union crew will get a new task in the coming months when the 2015 Chevy Camaro is assigned to Lansing Grand River. In other words, the good times will continue to roll at this facility for years to come.
UAW members don’t shy away from “supercars,” either. At the Conner Avenue Assembly Plant in old Detroit, the union crews put together the blazing SRT Viper, a monster that houses an 8.4-liter V10 engine capable of producing 640 horsepower on 600 lb-ft of torque. Clear a lane.
In fact, the SRT
Viper is so lethal that
dealers were reportedly afraid to let test drivers behind the wheel of the Viper. Specimen of such a high level of style and performance are rare anywhere. In Detroit, only union hands make them run.
Ford is starting to crank out high volumes of its 2015 Mustang in anticipation of a warm reception to the stud pony car. As much a symbol of America as any automobile in history, the muscle-bound Mustang retains its brawn while maintaining much of its aggressive look.
Tasked with producing the new version of the iconic Mustang is the crew at the Flat Rock Assembly Plant, where production moved in 2004. In April 2013 UAW teams assembled the one-millionth Mustang in Ford’s history. Judging by the enthusiasm for the 2015 model, they can expect to be making many more muscle cars in the years to come.
Honorable Mentions on this list go to the Ford F-150, Chevy Impala, Cadillac ATS, and Ford Escape — just a few more of the winning brands union members produce.