SFNE President Testifies to MA Legislature’s Joint Committee on Economic Development and Emerging Technologies
SFNE Releases Press Release on MA Governor’s Economic Development Bill
Steel Fabricators Seek Relief from Unfair Foreign Competition on Public Construction Projects in the Governor’s Economic Development Bill
May 7, 2024
FOR IMMEDIATE RELEASE
BOSTON – The Massachusetts legislature must stand up for Bay State fabricators, factory workers, and manufacturers by passing legislation that prioritizes American-made products in government contracts, business leaders and advocates will tell state lawmakers on Tuesday.
The Joint Committee on Economic Development and Emerging Technologies will host a hearing on Tuesday to examine ways to strengthen Massachusetts’ economic leadership. Steel Fabricators of New England (SFNE) President Stephen Capone will testify that his organization strongly supports language in the Governor’s Economic Development bill that would give American manufacturers the first shot at fulfilling state taxpayer-funded construction contracts.
“An archaic public procurement policy has plagued the domestic steel fabrication industry for many years, a policy that awards the lowest bidder, not always the most economic bidder,” said Capone, who is also president of Capone Iron Corporation. “Fabricators in New England lose over 95% of public structural steel construction projects to foreign companies because we face unfair competition due to currency exchange rates and generous subsidies offered by their governments. They are not paying taxes here, or complying with local, state, and federal laws and regulations. These factors all contribute to their economies and benefit their communities, promoting growth and investment into their factories, not ours.”
Specifically, Capone and others are calling upon the legislature to include HB3108 and SB2026 in the Governor’s Economic Development Bill, both of which are designed to encourage U.S. production and investment. Reinvesting taxpayer money into the local and national economy encourages growth, expands the tax base, and creates more middle-class job opportunities. That in turn reduces the burden on social safety net programs.
Unfortunately, without these “Buy America” laws in place, local manufacturers often miss out on government-funded contracts, a missed opportunity to strengthen our state’s economy.
”Massachusetts workers and steel makers can compete with anyone in the world – if there’s a level playing field. But right now, that’s not the case,” Capone said. “Many Massachusetts companies can no longer justify the expense to bid on most public construction projects. These are our tax dollars, not theirs, but we are not benefitting from them; foreign nations, economies and communities are. There is no savings with foreign steel purchases. We are not saving money by purchasing cheap foreign steel. Our taxpaying fabricators and their employees would generate more tax revenue through their wages and economic spending than any upfront savings on foreign steel. Our taxes paying domestic fabricators and their employees for public projects would generate more tax revenue on their wages and economic activity vs. any upfront savings. Something is fundamentally wrong with this type of imprudent spending and policy.”
By purchasing more locally made goods, Massachusetts will also support the strong labor and environmental standards in place in the Bay State instead of bolstering foreign state-owned enterprises or rewarding companies that have offshored operations to dodge our strong labor and environmental regulations, other witnesses will testify on Tuesday.
“The Governor’s Economic Development Bill is a step in the right direction for Massachusetts factory workers and manufacturers,” said Brian Lombardozzi, vice president for State Governmental Affairs at the nonprofit Alliance for American Manufacturing. “It makes sense to give American companies and workers the first shot at taxpayer-funded contracts. It makes no sense to send that money abroad when there are folks here ready and willing to do the job. Ultimately, I hope Massachusetts will join the federal government and dozens of other states who have Buy America laws on the books that ensure tax dollars spent on iron, steel, and construction materials are reinvested right back into American workers, businesses, and communities.
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For more information contact:
Stephen Capone
President, Steel Fabricators of New England
President, Capone Iron Corporation
978-948-8000
s.capone@caponeiron.com
Steel Fabricators of New England
The Steel Fabricators of New England (SFNE) is an association of structural steel and miscellaneous metal fabricators and allied companies that serve the building and bridge construction markets in New England. The mission of SFNE is to promote the use of its members’ domestically fabricated structural steel and miscellaneous metals in buildings, bridges, and similar structures through education, legislative advocacy, and networking activities.