President Joe Biden’s “Made In America” Executive Order promises sweeping changes in the way our government supports American manufacturers and producers. In his speech announcing the initiative, the president singled out small businesses, which account for 44% of U.S. GDP and employ nearly half of all U.S. workers, at least three times, indicating that he fully understands what’s in game and how its administration can help stimulate the growth of small businesses and, by causation, the growth of communities and the economy.
With many local entrepreneurs affected by the pandemic, President Biden’s executive order stands as a document of hope and strategic action for small businesses. With an eye on the federal government as a client, now is the time to expand an existing business, or even start one.
Here are five ways small businesses could benefit from Biden’s “Made in America” plan.
1. More market information.
The OE provides a public website that answers the questions every smart business owner has about public procurement: Which companies have requested waivers? For which products? Why was the waiver refused? President Biden has already named Celeste Drake, a trade expert, to head the “Made in America” office. This level of transparency is essential and the advantage goes to small businesses, which generally do not have access to this type of strategic data, giving them a window on the competition.
2. Access to an ocean-sized market (which actively invites small business owners to party).
The federal government spends almost $ 600 billion a year on all kinds of goods and resources, some of which may be your own. Agencies are responsible for ensuring that small businesses have a better chance of making more of these dollars. In addition to the website, the new guidelines promise less paperwork (which will lower costs) and the creation of the aforementioned “Made in America” office to help boost American manufacturing. The OE is forcing federal agencies and contractors to purchase more products made in the United States, and in what could have considerable benefits, agencies must now identify and list a database of small and medium-sized American companies that produce goods and materials that each agency purchases. .
3. The ability to charge sustainable prices.
In the EO, Biden asks agencies to consider, in certain circumstances, paying more for products made in the United States if it helps foster the producer-based U.S. economy. We have seen how difficult it is to compete with offshore manufacturers and this is one way of leveling the playing field.
4. The ability to sell verified products made in the USA faster.
Currently, more than 50 percent of the cost of a product must be of American origin to be considered made in America. President Biden’s CEO will fill in the gaps that allow companies to fall below that threshold and still claim Made in America status. Whether you’re starting a business or in growth mode, owners of small businesses making products made here at home can quickly pivot to get audited to be in OE compliance – potentially increasing sales and deepen the trust between you and your consumers.
5. Power of the bully pulpit.
When the president speaks, people listen. Our state and government officials have invested significant political capital in celebrating American manufacturing, supporting small businesses, and competing with foreign countries, especially China.
Small businesses can help rebuild America’s supply chain. During the pandemic, everywhere we looked, products were stuck abroad. Supply chains were collapsing. Factory after factory have disappeared, taking with them thousands of American jobs. There is an incredible amount of work to be done to restore our supply chains and, with the government pledging its support, this is a space where small businesses can intentionally locate.
As business owners with 40 years of combined experience in blockchain, manufacturing, retail, apparel, and tech startup space, we know the demand for and interest in products made in Canada. United States and a system that promotes a more equitable distribution of wealth. Small and medium-sized businesses are a major driver of this transformation. Building on the “Buy America” laws passed in 1933 and 1982, President Biden’s executive order is seismic in scope and potential.