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Sioux Steel Company
In this issue:Made in USA | Prognosis for 2016 exports | State exports as a percent of GDP
Sioux Steel’s CEO Scott Rysdon uses American-made steel in the manufacture of its Made in USA agricultural products.
International Business NewsFebruary, 2016
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2 Held & Associates
3 ToC & Letter from Publisher
4-5 How Heartland Exporters can claim: “Made in the USA” —Sioux Steel
6 Made in the USA—DuraComm Lighting
7 Made in the USA—Hayes Tooling & Plastics
8 Made in the USA, continued
9 Prognosis for 2016 Exports
10 January State exports as a percent of GDP
11 InterMark 3
12 Asia Today International
IBNewsmag TM: in this issue
If you are an exporter of a manufactured product, would you – can you – rightfully claim that it is Made in the USA?
By doing so, you may find it more appealing to your international customer giving you an edge over your competition because products made in America may signal a higher quality manufactured product.
Made in the USA may also provide a lower tariff on your goods if dealing with a Free Trade Agreement (FTA) country. You can read more about this in our feature article.
The Federal Trade Commission (FTC) has issued its official definition of what comprises Made in USA, and it raises more questions than answers. Especial-ly the part that says, “all or virtually all” the product has been made in America.” How does one define “virtually all?”
These are some of the issues we cover in this edition of IBNewsmag.
Frederick Baehner,Publisher
Publisher’s Letter
IBNewsmagTel 816.616.7779 Fax: [email protected]
6655 Troost Ave., Kansas City, MO 64131, USA
In God we trust!PUBLISHER/EDITOR:Frederick Baehner
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CONTRIBUTING WRITER: Jennifer Wietelman
ADVISORY BOARD:Jo Anna Edgerton, Doris Ganser, Paul Mastilak
page 3February 2016
Sioux Steel emphasizes its “Made in USA” products at this month’s National Farm Machinery Show in Louisville, KY
February 2016page 4
How Heartland exporters can claim
“Made in USA”
page 5February 2016
You have a unique product that you believe fulfills a niche foreign market. Because you manufacture it with all American-made com-ponents you make the claim that it is “Made in USA,” because there many countries that respond well to this claim and you can in-crease sales by selling to them, and maybe fly under tariff barriers.
Sioux Steel This is the claim made by companies like Sioux Steel Company in Sioux Falls, SD. A family-owned compa-ny dating back to 1918, Sioux Steel manufactures a wide assortment of steel dust suppression hoppers, multi-purpose storage buildings, safe grain bins, cat-tle gates and chutes, along with a wide array of steel products for the agriculture industry.
Its primary export products include grain systems, bins and moving tech equipment.
Fourth generation owner, Scott Rys-don, explained, “We find that we can get better con-tainer value on size to weight ratio with non-tubular items which are our grain systems, bins and grain material han-dling equipment. These are the items we export.”
“Our products and equipment are all Made in USA,” he explained.” Even our coiled steel is manufactured here in America. We don’t buy steel from other countries because our American-made steel pro-vides the higher tensile strength we need for stron-ger products.”
What exactly does it mean to be “Made in USA?”
According to its official watchdog, the Federal Trade Commission (FTC):
“Made in USA” means all or virtually the prod-uct has been made in America. That is all sig-nificant parts, processing and labor that go into the product must be of U.S. origin. Prod-ucts should not contain any – or only negligible – foreign content.
Because Sioux Steel items occasionally contain a negligible amount of foreign components, the com-pany can convey this claim with American flags on its products.” When foreign buyers see the flag it says to them that it is made in America,” said. Mr. Rysdon. “It really helps in making the sales process more effective.”
See more at: http://www.siouxsteel.com/
A more defining point comes from Peggy Kerr, Mar-keting Manager of Iowa’s International Trade Office. “In today’s world economy, it’s be-coming more and more unusual for a
Scott Rysdon, OwnerSioux Steel Company
Steel Grain Bins made in South Dakota’s Sioux Steel company.
Peggy Kerr, Marketing Manager Iowa International Trade Office
IBNewsmagTM
February 2016page 6
manufactured product not to contain some foreign content. Companies must be careful with ‘Made in USA’ claims.”
“When exporting to a country party to a free trade agreement (FTA) with the US, a company has to abide by that agreement’s rules of origin to deter-mine whether or not the good is considered originat-ing under the agreement and therefore eligible for the reduction or elimination of tariffs. Documenting how a product originates, or meets the rules of ori-gin, can make using the FTA negotiated tariffs com-plicated for some companies. If exporting to a coun-try not party to a FTA with the US, knowledge of their content rules is needed to determine whether or not you can claim US origin,” she explained.
“The research, record keeping and documenting add to a company’s cost of doing business, and in some cases could exceed the available tariff reduction. Companies whose products are not eligible for the reduced tariff, or choose not to participate, should
disclose this to their potential customer early in the quotation process,” Ms. Kerr concluded.
DuraComm Lighting An aspiring small business grappling with the “Made in USA” issue is DuraComm Lighting in Kansas City, MO. One of its leading products is a High Bay LED light for better illumination in warehouses and other large commercial and industrial buildings.
Light weight aluminum and cable-mount ready, Du-raComm’s High Bays produce up to 58,500 lumens per fixture and the DuraComm lighting team contin-ues to design and engineer new versions of its LEDs. One of its newest innovations includes a linear ver-sion suitable for both high and low bay applications that produces a range of 4,500 to 9,000 lumens.
Although they are assembled here, many of the components are only available from another coun-try and imported to complete both the High Bay and Linear LED fixtures. According to DuraComm CEO
Benny Lee, Chairman and CEOof DuraComm Corp., holding one ofits new Linear High Bay LED lights.
page 7February 2016
Benny Lee, “We would love to make the claim that our High Bays are ‘Made in America,’ but at this point we rightfully claim that they are de-signed, engineered and assembled in the USA, and hope to see a tariff reduction when we export to one of our free trade partners.”
For more, visit:http://duracommlighting.com/
Brian Murphy, a Senior Associate attorney with the law firm of Miller & Company explained that some manu-facturers incor-rectly make un-qualified “Made
in America” claims despite the fact that their products do not satisfy the Federal Trade Commission (FTC) “all or virtually all” U.S. parts and processing standard, which requires no, or negligible, foreign content. On the other hand, an “Assembled in USA” claim is acceptable when the “principal assembly” which is the “last substantial transforma-tion” occurs in the U.S.
Hayes Tooling & Plastics, Inc.Tucked into a corner of Olathe, KS, 3rd generation family-owned Hayes Tooling and Plastics manufactures
a wide array of Made in the USA injection-mold-ed plastic prod-ucts for con-sumer, military and commercial
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As former plant manager, now President Mario Zarlengo, puts in a great deal of his time inspect-ing and improving the company’s plastic output with much of it sold through international distributors in several countries including Cana-da, Australia, Germany and the UK.Hayes Tooling, continued on pag 8
Brian Murphy, Senior Associate Attorney,Miller & Company
DuraComm, continued from page 6
President Mario Zarlengo (r)inspecting product quality
IBNewsmagTM
February 2016page 8
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Hayes Tooling, continued from page 7
Hayes Tooling & Plastics: injection-molded plastic products for consumer, military and commercial markets
“Because we sell to domestic cus-tomers as well as international cus-tomers, we find that our ‘Made in the USA’ banner makes a real dif-ference,” said Mr. Zarlengo. “These past few years have seen a big sales boost by way of the Made in USA. We make every bit of our products here, including buying our molds from American companies.”
“Not only have our international sales increased, in some instances we have seen lower tariffs by sell-ing to Free Trade Agreement coun-tries with our Made in USA label,” he concluded.
See more at:www.hayestoolingandplastics.net
IBN
A selection of Hayes Tooling & Plasticsmilitary products
International Business News
page 9February 2016
2016 Trade Prognosis is Gloomy as Economy Slows2016 Trade Prognosis is Gloomy as Economy SlowsCreighton’s monthly survey of supply managers and procurement experts in nine Heartland states in Janu-ary point up that:
• The US trade deficit widened in December as a strong dollar and weak global demand continued to weigh on exports.
• Exports – for the 6th straight month January’s new export orders declined.
• Export weakness was led by Missouri, North Da-kota and Oklahoma, which more than offset export gains in Arkansas, Kansas, Iowa, Minnesota, Ne-braska & South Dakota combined.
• Over the past year, the region lost almost 20,000 durable manufacturing jobs but gained approxi-mately 3,000 non-durable jobs. • The strong dollar sank export orders, but boosted imports for the month.
• Both the US and Creighton surveys of supply man-agers indicate the economy is slowing down with little inflationary pressures at the wholesale level.
“Creighton’s monthly survey of supply managers and procure-ment experts in our nine states indicates economic growth remains negative (recession-ary) for manufacturing, but things have stabilized for the rest of the regional economy. Creighton’s monthly survey of bank CEOs in rural areas of 10 states also points to economic pullbacks with record low agriculture equipment sales indices and declining farmland prices,” said Prof. Goss.
Ernie Goss, Ph.D.
February 2016page 10
January Export Rank-ing as Percent of each State’s Overall Economy
Trade: The Creighton Economic Forecasting Group conducted the monthly survey of supply managers in nine states. It reports that total January new export orders registered an ane-mic 40.0, up some from December’s 33.8, but well below growth levels of 50.0. Professor Ernie Goss said, “The strong US dollar along with a weaker global economy made US goods less competitively priced abroad.”
The following is a ranking of Janu-ary’s state-by-state new export orders as a percent of its overall economy according to the latest US government data.
Arkansas exports represent ap-proximately 5.7 percent of the state’s overall economy. This puts Arkansas in 37th place among the 50 states.
Iowa exports represent approxi-mately 8.9 percent of the state’s overall economy. This places Iowa in 18th place among the 50 states.
Kansas exports represent approxi-mately 8.3 percent of the state’s overall economy. This places Kansas in 20th place among the 50 states.
Minnesota exports represent approximately 6.8 percent of the state’s overall economy. This plac-es Minnesota in 29th place among the 50 states.
Missouri exports represent approx-imately 5.1 percent of the state’s overall economy. This places Mis-souri in 39th place among the 50 states.
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Nebraska exports represent ap-proximately 7.1 percent of the state’s overall economy. This plac-es Nebraska in 27th place among the 50 states.
N Dakota exports represent ap-proximately 9.8 percent of the state’s overall economy. This places North Dakota in 13th place among the 50 states.
Oklahoma exports represent approximately 3.4 percent of the state’s overall economy. This plac-es Oklahoma in 48th place among the 50 states.
S Dakota exports represent ap-proximately 3.5 percent of the state’s overall economy. This places South Dakota in 47th placeamong the 50 states.
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page 11February 2016
The voice of international trade in the HeartlandNow in our 13th year of continuous publishing by InterMark3, Inc., IBNewsmag is an independent online magazine for Heartland traders - small to medium-sized enterprises (SMEs) - in our ten* state Midwest region. *Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, Oklahoma, North & South Dakota, Wisconsin and portions of the Chicago area.
In every issue, and on our website – www.IBNewsmag.com – we’ll bring you the latest international BREAKING NEWS – current news items that may affect your international business and of a regional interest for our Heartland region readers. In addition to special events, we will announce SME company news as appropriate. So feel free to send your editorial suggestions and news releases. Email them to: [email protected].
In this issue of Asia Today International:Linking Asia and Europe by land and by sea - China’ has brought together what it calls a ‘chorus’ of 170 countries and organizations for its One Belt, One Road concept to link and to develop economies right through Asia into Europe. Ambitious infrastructure projects will be financed through the China-sponsored Asian Infrastructure Investment Bank (AIIB), with Beijing acting as conductor of the assembled chorus of nations. Subscribe to Asia Today International:Visit http://www.asiatoday.com.au/
Florence Chong, Editor
WHERE THERE’S SMOKE . . .2016 is likely to be sym-bolised by the spectre of world leaders scram-bling to douse a series of economic and political spot fires, their attention diverted from the real problems . . .
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