Military and Government Spending Bolsters U.S. Manufacturing
We’ve seen an uptick in military-related orders this year. There’s a lot of opportunity in this sector. A look at the United States’ annual military budget reveals just how much. The Department of Defense’s (DoD) discretionary budget for this year is $722B, which reflects an increase of $17B over last year. The Biden Administration has requested $737B for fiscal year 2023, and approval is expected.
But it’s not just the budget driving orders. CNN reported in November that our nation’s munitions stockpile is running low, partly due to the support we provide to our allies. Of course, government spending includes much more than military procurements, and we’re seeing a lot of business from those other industries, too.
This might have something to do with the Buy American Act (BAA) requirements, which recently became more stringent. As of October 25, products purchased with federal taxpayer dollars now need to be made with at least 60% American made component parts to meet Buy American Act (BAA) requirements. This reflects an increase from the previous requirement of 55%, and it’s the first of three planned increases that are expected to end with a final requirement of 75% by 2029.
The BAA statute is designed to encourage federal agencies to procure manufactured end products and construction materials from U.S. suppliers. Its primary goal is to increase reliance on domestic supply chains and reduce the spending of taxpayer dollars on foreign-made goods.
As a U.S. business, Sirois Tool is well positioned to help companies comply with the BAA while assisting our country with its military needs. Our ISO 9001 and AS9100D certifications reflect our robust quality system, and our International Traffic in Arms Regulations (ITAR) registration confirms Sirois Tool is recognized by the U.S. government as capable of supporting all military and homeland security products while safeguarding information and technologies that affect our national security.
We have earned the trust of our federal government, and we expect to build on that in the years ahead. Contact Us today to see what we can do for you.