Why are the Section 301 of the Trade Act of 1974 tariffs all policymakers and stakeholders talk about in Washington, D.C.?

The White House is on the verge of determining the fate of our domestic forging industry and altering our position as a global superpower. Forging producers all over the United States are facing numerous challenges threatening to put them out of business. Without the continuation of the tariffs, there is an extremely disproportionate playing field.

For years, unfair trade practices by China and others have threatened the viability of the American forging industry. Since 1979, the United States has seen 226 forging plant closures, equaling a loss of over 25,000 jobs. The COVID-19 pandemic illustrated the fragility of supply chains and the necessity for a strong manufacturing sector in the United States. Because forged parts are strong and reliable, they are vital in safety-critical applications. Rarely seen by consumers, automobiles and trucks may contain more than 250 forgings, and planes more than 1,000 forgings. Every industry from aerospace, automotive, energy generation, agriculture and more requires forged components. If it moves on land, in the air or on the sea, it contains and relies on forgings.

The recent Department of Defense Report on Strengthening Defense-Critical Supply Chains required by Executive Order highlights the criticality of forgings to national security. According to the report, foreign suppliers (such as China) can provide a completed part for the same cost a U.S. forge would pay for just the raw materials. China alone accounts for 50% of global forging manufacturing, and in the last five years has taken another 9% of the global market share.

The Executive Order on America's Supply Chain calls for support for a robust national forging industry; without it, our national security is at severe risk. The magnitude of the threats to our shared national security and prosperity should not be underestimated. Policymakers in Washington, D.C., must recognize the erosion of our domestic manufacturing capacity as a long-term security threat. Without a strong domestic manufacturing base, the U.S. is unable to respond to current and future security threats effectively.

Forging operators in America are being pushed out of business because of aggressive dumping and raw material subsidization of forged products by overseas actors. It is an action by other countries to sacrifice our national manufacturing capacity and capability for their gain. Today, we're competing against Chinese forging companies that use unfair trade practices, extremely low wages, subsidized raw material, lax environmental controls and a Chinese Communist Party intent on destroying our forging and other critical industries.

We urge you to use your voice to advocate for continued Section 301 tariffs against China. Now is the time to act before it is too late and we fall prey to even more predatory practices from China. The manufacturing sector is the backbone of the economy and without national production, we are in grave danger of foreign actors monopolizing global forging. We need your support to tell our policymakers to save the United States forging industry before we cease to exist.

Forging Industry AssociationStop blaming the supply chain for your woes

Since the pandemic began, I've seen and heard (through Crain's Cleveland Business, etc.) that companies large and small are deciding to close, scale back or hold on expansion — and the top reason they cite are supply chain woes.

Now don't get me wrong, the supply chain has been stretched and stressed, but please, don't blame that. There is always a way — and has always been a way — to get whatever you want and need, even through a global pandemic. Now, is it worth the cost, of rerouting or finding alternatives? That's a different problem, but it's not caused by the supply chain.

What is supply chain? It's an entire process of steps from factory identification, selection, production, inspection/quality control, factory-to-port logistics, sea freight, domestic port and customs clearance, then domestic transport.

Do you think the Port of Long Beach in California was efficient and smooth sailing before the pandemic? Do you think China is the only place you can get bottles, foil, aluminum cans, or other goods? Do you realize there are thriving factories in Latin America, the Philippines, Vietnam — and yes, Taiwan and China — if only you know how to find them, vet them and get what you need? Hint: It's not Alibaba or websites like them. We operate in a global economy, and that's not going to change.

It's so common in this country to want to blame someone or something for our woes. It's because of him or her or an event (war in Ukraine, the COVID pandemic, a longshoreman strike, etc.). No. The reality is you quit. You decided it wasn't worth it, you didn't want to push forward, find another way, look for alternatives. To be clear, that's your choice, but it wasn't the supply chain. Problems are always intertwined with opportunities if you choose to look and act, not quit.

This country was built on the backs of manufacturing (my family were steelworkers from Gary, Indiana). And let's face it, those days are over.

Reshoring and bringing manufacturing back to the U.S. sounds great — and I'm all for it — but just ask Intel how their $20 billion proposed investment outside of Columbus is working out for them. Ohio should be rolling out the red carpet and Intel should be picking out office furniture at this point. But the deal has been delayed until recently because of squabbles in Congress over funding. If this is how our government is working on reshoring, I'm not real optimistic for small-to-medium companies anytime soon.

But there is another critical challenge many businesses are facing which places domestic manufacturing at an important disadvantage to their global peers: a severe shortage of workers. Twenty dollars per hour to work at Taco Bell — and they can't hire anyone, so they close at 7 p.m.?

Here's a question for the reader: How impressed have you been with any customer service interaction lately? Anywhere? At a store, online, airline reservations, etc.? Right now, only the biggest of the big U.S. companies can afford to overpay (and they are) for workers — some good, many mediocre. And that is leaving many small, medium and medium-large companies desperate for employees.

My humble request — DON'T QUIT — compete! Find a partner who can help you locate, vet, inspect global suppliers to position your company for the next generation and beyond. Oh, and don't believe everything you see or hear on broadcast news. This is an excellent time to capture market share.

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