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Why don't American companies, doing business here in the US, using American employees have preference for federal contracts?

I have a manufacturing business and we have several contracts..some federal so I am familiar with "the system". It just amazes me how many contracts are given to foreign businesses. I can't compete with their cheap labor...an example of a recent contract I bid on...the very cheapest I could turn out the item (15% actual profit margin for me) was $8.00...the business (from Thailand) got the contract for $2.00 a shirt. I could barely get the fabric and thread for that. I use all American made products/components and my labor comes from taxpaying American citizens.

It just seems to me it would be smart for the govt to use the American product even if the cost was more...because not only does the cash stay "in country" but they will get some of it back via taxes.

What are your thoughts? Would you be willing to contact your legislators and ask them to start giving American companies preference? If so, thank you not just from myself but from anyone that would benefit. :)

Answer Question
 
yourspecialkid

Asked by yourspecialkid at 10:51 PM on Feb. 10, 2011 in Politics & Current Events

Level 35 (74,634 Credits)
Answers (23)
  • I can't compete with their cheap labor-

    There's your answer.
    The almighty dollar is all that matters.
    It's so short-sighted, IMO.
    We need to become a protectionist country-
    Sisteract

    Answer by Sisteract at 10:55 PM on Feb. 10, 2011

  • YSK- This makes my blood boil!!!!
    Sisteract

    Answer by Sisteract at 10:55 PM on Feb. 10, 2011

  • The company I work for that provides gas masks to our military, police, firemen and many other countries (we are mass producing toddler and baby ones right now for the ME. a HUGE order) is British owned. And they are expensive.
    Carpy

    Answer by Carpy at 11:00 PM on Feb. 10, 2011

  • cheap labor
    mommy_of_two388

    Answer by mommy_of_two388 at 11:06 PM on Feb. 10, 2011

  • Yes, I would YSK!

    I'm sure that your quality is MUCH better, therefore making your product the better value because it would last longer and not shrink or fall apart after the 1st or 2nd time it came out of the washing machine.

    Import quality is not so great...
    agentwanda

    Answer by agentwanda at 11:23 PM on Feb. 10, 2011

  • Can't compete with cheap labor. My company outsources to Manila, Philippines to a company called Accenture. Interestingly enough I read online last year that Accenture was one of the top growing US companies....why? They are headquartered in NY yet only have a couple hundred employees there. They have several hundred thousand employees overseas. I hardly call a company that does nothing but outsource for other companies American just because HQ is close by, but whatever. Anyway, my company got rid of hundreds of employees making an average of $12-16 an hour to replace them with those in the Philippines that we pay the equivalent of $1.50 US dollars an hour. How do you compete with that.
    Astraea_79

    Answer by Astraea_79 at 11:32 PM on Feb. 10, 2011

  • Thank you ladies.

    It just makes me so angry...both sides of the aisle wring their hands and wonder how to "create" jobs. Hello, people like me can create them if we can get the market to sell our product to! It really isn't rocket science! There could be a LOT LOT LOT of new good paying jobs created if only the govt would decide to buy within. They talk about "investing" money in different things..why not this..no real investing at all..just the choice to pay a little more and use an all American business...the jobs will create demand for jobs.

    ...okay I'm stepping off the soapbox now....for a few minutes anyway.... LOL!
    yourspecialkid

    Comment by yourspecialkid (original poster) at 11:34 PM on Feb. 10, 2011

  • Wasn't that a part of NAFTA?
    lovinangels

    Answer by lovinangels at 1:01 AM on Feb. 11, 2011

  • Wasn't that a part of NAFTA?

    ***

    And wasn't it BILL CLINTON who signed off on it?!
    LoriKeet

    Answer by LoriKeet at 7:39 AM on Feb. 11, 2011

  • I'll be willing to contact a rep when the average American worker wants to settle for a little less in pay, and a little less in benefits. Sounds terrible I know...but IMO the average American worker wants too much in benefits and too much salary for the actual jobs they do. For example, the averge UAW employee. Non skilled labor should never have earned $75 an hour. And we wonder why cheap labor was brought into the equation? A postal worker, makes $85K a year for Non Skilled labor.Ridiculous.


    http://www.factcheck.org/askfactcheck/do_auto_workers_really_make_more_than.html

    jewjewbee

    Answer by jewjewbee at 7:54 AM on Feb. 11, 2011

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