ROWLEY — Congress and the president wouldn't put a firm "America first" clause into the economic stimulus package, but a Rowley company is doing its own bit of politicking to encourage American firms to buy American-made products.
As part of its "Local Stimulus Campaign," Capone Iron Corp., a major structural steel and miscellaneous iron fabricator/contractor in Rowley, has come up with slogans, logos and a publicity campaign to get its message out.
"Given the current economic climate, we felt it was necessary to remind developers, owners and general contractors how important it is to hire local American companies for their construction projects," company president Stephen J. Capone said. "We need to support the local economy at this time."
The firm invited state Sen. Bruce Tarr, R-Gloucester, to its kickoff event yesterday. Though Tarr was unable to attend, Capone is dedicated to making the public aware of the importance of hiring and buying American.
"With the economy how it is, a lot of taxpayers' and companies' money has been pumped into the economy, and a lot of it is going to foreign contractors," project manager Mike Farley said. "We want to make people aware and encourage owners, government officials and the public to look toward American."
Despite a "Buy American" provision being passed by the Senate in the $900 billion stimulus package, Farley said the language makes the clause easily circumvented, and that many developers are still hiring foreign contractors.
The clause was watered down from its original language, due to fears that such restrictions would spark a trade war and further the economic downturn, or violate international trade agreements. Currently, the clause requires that all steel, iron and "manufactured goods" used for stimulus-backed public works projects be produced in America. It also states that foreign materials may be used if the quality or quantity from U.S. suppliers is insufficient, or, if the cost of U.S.-produced goods makes the total project cost more than 25 percent above the cost if foreign goods are used.
"The wording (of the Buy American provision) is toothless — there are innumerable loopholes," Farley said. "The lack of meaningful provisions has hurt the American steel business."
Farley said that one of the hardest hit steel regions is New England, due to its proximity to foreign contractors, such as in Canada, which can subsidize costs.
"We take the position that, very frequently, we're not playing on a level playing field. Certain foreign contractors have governments subsidizing them, allowing them to submit artificially low numbers," Farley said. "Jobs are put out to bid to a developer or contractor, and we can bid competitively, but we can't always beat a subsidized number."
Because they can submit lower numbers, Farley said that the Beverly High School, Taunton High School and Taunton Trial Courts, all publicly funded projects, were built by foreign contractors.
"Obviously in the construction business, the bottom line is very important, just like in any business," Farley said. "But that is one of the major concerns: If you're looking purely to the bottom line, that's a perfectly good business model, but what are the long-term ramifications of that choice? It's in the best interest and the public's interest if taxpayer dollars are kept in the community."
Farley believes the local stimulus campaign will encourage local job growth, which would help avoid situations like the recent layoffs the company was forced to make due to the recession.
Capone now employs more than 40 fabricators, erectors, supervisors and office staff, and is involved in projects for Oracle Software in Burlington, the Shaw's/Star Market in Chestnut Hill, and the Boston Medical Center. Recently, completed projects include the North Shore Mall expansion project, Patriot Place in Foxborough, and a new theater at the Pike School in Andover.
"If more local taxpayers were aware of this issue, it'd go a long way to bringing it to the forefront and saving jobs," Farley said. "Our initiative might ripple out and generate other economic benefits in the local area."
As part of the campaign, Capone is using its new emblem, which was designed by Farley in a companywide contest, on banners and hard hats on job sites, and on all company correspondence.
The logo features an American eagle emblazoned with the Capone logo, clutching two steel beams in its talons, and the motto "Creating American Jobs - Generating American Tax Dollars - Supporting the American Economy" surrounding the eagle.
"We hope this program will result in more business, not just for our company, but for all local subcontractors facing foreign competition in the marketplace," Capone said. "We welcome the opportunity for competition, if it's on a level playing field."