'Made in USA': Simple in theory, costly in practice

  • Article by: Star Tribune staff writer
  • Updated: January 25, 2010 - 10:28 PM

A new Minnesota law intended to protect jobs is noble, officials say, but cash-strapped local governments are having hard time getting behind it.

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How much is a noble idea worth?

A new state law prohibits cities, counties, the state and other "public employers" from buying uniforms or safety equipment made outside the United States.

The idea, said the man behind the measure, Rep. Tom Rukavina, is to send a message about protecting American jobs and revenue. An admirable goal, say city officials and the League of Minnesota Cities, but the problem is that cash-strapped local governments have never been in a worse position to devote scarce resources to a philosophical ideal, even if they agree with it.

"A lot of the reason we're not recovering from the recession as quickly as some other countries are is because they still make things," said Rukavina, DFL-Virginia, adding that it is the only such statute in the country. "When you make things, turn natural resources into things, you also turn them into livable jobs."

But price and profit pressures have already moved many plants overseas; there's a premium for U.S.A.-made.

At Uniforms Unlimited, in Minneapolis and St. Paul, manager Julie Deshler sees the disparity up close.

• Imported Dickies cargo work pants sell for $22, retail. Pants made in Tennessee by Southeastern Shirt Co. cost $45.

• An imported Hanes golf shirt with a city logo is $17. A shirt made in Kansas by King Louie America is $28.

• An imported Dickies high-visibility shirt is $17. A shirt made in Chisholm, Minn., by Xtreme Visibility is $26.

The new law does allow public employers to buy imported products if "similar items are not manufactured or available for purchase in the United States."

What's available?

Deshler said she's been scouting what's available when clients make requests; she's had limited success. Some items don't seem to be available domestically, although she said she's exhausted all her resources.

"Tom Rukavina probably had his heart in the right direction, trying to say, let's keep Americans employed," Deshler said. "I understand that, but that law is 20 years too late."

Dean Putikka owns Xtreme Visibility in Chisholm; 23 of his 26 workers make items such as road crew safety vests.

They cost about $45, retail. He also sells an imported vest for $20. Both labor and materials cost more in the United States, he said.

"There are very few that are made in the U.S.A. because no one wants to spend the money," he said, adding that 90 percent of his sales are imports. "You don't have a choice but to do imports if you want to stay in business."

Several police departments alerted the League of Minnesota Cities to financial hardships the law may create.

Mike Goldstein is the police chief in Plymouth, where the current two-year city budget included $500,000 in cuts. His department has lost 5.5 positions, through attrition and layoff, and all discretionary spending has been trimmed.

In a previous life, Goldstein owned Cy's Uniforms, so he's seen the market from both the supply and the demand sides.

On the demand side, police departments have specifications for such things as shirt pockets for pens and pads, a tab to hold a badge, epaulets for a radio, water-resistance, fit and durability. On the supply side, a limited number of manufacturers may make products that fit the bill. Special or small orders often are cost-prohibitive or unavailable.

"Our hands are tied at what the manufacturers are willing or not willing to do," Goldstein said. "I am an American citizen and I absolutely believe in it. But you can't dispute the fact that the manufacturing process is global competition. ... We're being compelled to comply with something that's out of our control."

In Eagan, as in many other departments, all officers carry the same make of gun, in this case a Glock pistol made in Austria. Standardization allows departments to consolidate training and officers to exchange guns and ammunition, and department armorers are trained to repair one make and model.

Eagan Police Lt. Duane Pike and others were left wondering whether guns are included among the "safety equipment or protective accessories" specified under the law, and if so, whether they'll be forced to re-arm or retrain.

Eagan also is down two officers and a civilian position.

"This issue is not so much a U.S.A. versus other countries' items," he said. "It's a budgetary issue."

Back for revisions?

The Minnesota Police Chiefs Association opposed the measure last year. Now that it is on the books, executive director Harlan Johnson worries that ambiguities may lead department heads to inadvertently violate the law.

The measure, for instance, does not specify whether every component of a product needs to be produced domestically. At the same time, enforcement and penalties aren't clear.

The association and the League of Minnesota Cities may seek to bring the issue back to the Legislature.

"We understand the premise of the law, and the reason for it," Johnson said. "But we need flexibility in being able to perform our jobs, too."

Rukavina said he's open to reviewing wording, but said cities should cut elsewhere to comply with the law, to maintain American jobs, to end U.S. support of child labor and unsafe labor practices offshore, as well as processes that are harmful to the environment.

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