Richmond County Daily Journal, NC
by Philip D. Brown
Textile industry leaders praised the efforts of U.S. Rep. Larry Kissell in advocating the Kissell Amendment of the economic stimulus package signed by President Barack Obama Tuesday during a conference call the same afternoon.
Kissell hosted a 45-minute conference call with leaders of the industry and the members of the press.
Implications of the legislation for the textile industry and the American government were discussed by Tuscarora Yarns President Peter Hegarty and Chairman and CEO Martin Foil; Bruce Raynor, president of UNITE HERE, the nation’s largest textile union and Highland Industries Director of Sales and Marketing Bret Kelley, along with the congressman.
The amendment is an extension of the Berry Amendment of 1941, which required the U.S. Department of Defense to purchase textile products procured and manufactured in the United States. The Kissell Amendment extends this to the Department of Homeland Security.
Apparent during the discourse, the bulk of the impact will be seen in the purchase of uniforms for the Transportation Security Administration (TSA).
“We’re very excited about this opportunity to extend the Berry Act,” Kissell told those on the conference call. “It’s been around for 60 years and worked well during that time.”
He noted help was required to get the amendment included in the bill, due to opposition in Washington, D.C.
Here in Richmond County, the International Textiles Group (ITG) Richmond Plant, formerly known as Burlington Worldwide, in Cordova manufactures wool products for use by the U.S. military, according to Plant Manager Doug Carter.
“Anything that requires the U.S. government to source textile products from the U.S. would be a benefit to us,” he said.
“It is too early to know what implications this could have for us,” said ITG Director of Corporate Communication Delores Sides. “Our plant in Cordova, as well as our plant in Raeford, do supply textiles to the U.S. military. We’re hopeful the expanded requirements to buy American products can benefit us.”
Richmond County Economic Development Director Rick Sago commented on the availability of experienced textile workers and facilities in the county, for industry recruitment.
“Anything Congressman Kissell can do to help our beleaguered textile industry can potentially help our county,” he said. “We support the textile industry, and we’d like to see it thrive.”
Bret Kelley’s company, Highland Industries, has its U.S. headquarters in Greensboro.
“For North Carolina, in particular, I’d like to point out why this is important to us. In the past 12 months we had 14 textile plants close in North Carolina, there have been 44 total across the country,” Kelley said. “Ten thousand three hundred people have lost their jobs in North Carolina in textile facilities over the past 12 months. That’s why this is very important, because it keeps jobs and production flowing in good times and in bad.”
American Manufacturing Trade Action Coalition Executive Director Auggie Tontillo spoke to the number of jobs to be retained and created by the legislation.
“It’s a little bit of an unknown universe, or quantity in terms of all the purchases that DHS makes that would fall under this amendment,” he said.
He explained that last year, $2.8 billion worth of textile products were purchased under the Berry Amendment, equating to 210,000 jobs in the United States.
National Council of Textile Organizations President Cass Johnson said it is unclear where the uniforms to be purchased under the Kissell Amendment have been coming from.
“I can tell you that there was a very sharp response to Mr. Kissell’s Amendment within Homeland Security. They did not want this to happen,” he said. “ … We went in to see Congressman Kissell and his staff on Friday, January 23, and here it is three weeks later, and we have the Kissell Amendment signed into law …
“It’s a real statement to Congressman Kissell’s determination as a freshman Democrat to make sure that the leadership heard his message that he needed this, that his district needed this and the industry needed this. It’s so rare you can get a law passed in your first term, or even in your first several terms as congressman.”
Several arguments were offered during the conference call for why this is a positive, including the collection of funds into the U.S. Treasury by workers and corporate taxpayers, and the desire of terrorists to acquire identical uniforms.
“Opponents of buy American provisions will argue that surely it must equate to some additional costs to the U.S. Treasury, but the opposite is true,” Tontillo said.
First, he noted the Kissell and Berry Amendments can be waived by the officer of the Transportation Security Authority (TSA) if the price of these products isn’t competitive with products manufactured overseas.
He also stated the TSA issues a $250 stipend to buy six pairs of pants and six shirts for new hires to the governmental entity.
“If you take that $250 and use that to buy uniforms made in Mexico, China or Pakistan or wherever, there is no return on that purchase,” Tontillo continued. “If you take that $250 and you buy those uniforms made in Ohio or North Carolina, made from U.S. components, when you take into account the wages that are paid, and the income tax that is paid by those workers and the corporate income tax that is paid by the U.S. companies involved.
“Conservatively, we get a $43.50 return on that $250 purchase to the U.S. Treasury in the form of taxes.”
He also noted the workers employed to make these products are not drawing unemployment benefits, or other aid from the government.
“In addition to getting the financial benefit, you also have a stable and secure production base,” he continued. “… TSA has put out circular after circular stating that al-Qaeda is seeking to get identical uniforms as its employees, and its officers need to be on high alert. It’s just nonsensical for us to say there’s no concern, and we may save 20 cents by buying it offshore – it simply is not the case.”
