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A Row Of EV Chargers, Made In USA

How the Buy American Act Can Supercharge Your EV Charger Biz

Published on Jan 12, 2024 2:50:44 PM by Jim Erhart

Jim Erhart

In the heart of the American manufacturing story lies a powerful tool that breathes life into local industries and paves the way for a sustainable future - the Buy American Act. As manufacturers embark on a journey to reshore their products, particularly in the E.V. charger industry, this legislative gem becomes a crucial beacon to domestic fabricators. We'll look at multiple facets of this Act, how the legislation prioritizes American-made products in government contracts, and how fabricators such as Accurate Metal Fab can help OEMs make their products domestically.

What Is The Buy American Act?

Made in The USA GraphicThe Buy American Act (BAA), enacted in 1933, prioritizes using American-made materials and products in government procurement projects. This means that when the U.S. government purchases goods or services, it must first consider American options before looking internationally. The specific stipulations of the BAA vary depending on the project and funding source, but generally, a certain percentage (often 55%) of the product's components must be sourced domestically.

For E.V. charger manufacturers, the BAA presents both a challenge and an opportunity. While the initial hurdle may seem daunting, reshoring metal components like enclosures and brackets presents a strategic path to compliance. With fabricators specializing in making these crucial elements, manufacturers can seamlessly integrate American-made components into their existing designs. Or engage with engineering teams to reimagine and remove costs from that design.

This approach meets BAA requirements and unlocks potential benefits like shorter supply chains, enhanced brand image, and the chance to tap into lucrative government contracts.

The Buy American Act: Unveiling the Numbers

While many articles touch upon the basics of the Buy American Act, let's dive into the statistics that genuinely paint a vivid picture. Did you know that between 2008 and 2018, the federal government spent over $5.4 trillion on contracts, with a staggering $44.6 billion directed toward foreign suppliers? That amount could have fueled many domestic industries and job creation.

But what about E.V. chargers? Right now, only a fraction of government spending on infrastructure projects for electric vehicles finds its way back to American manufacturers. In the fast-evolving electric mobility landscape, seizing the opportunities the Buy American Act offers could be a game-changer.

Re-Shoring Success

Rows of Metal EnclosuresAs mentioned earlier, the Act stipulates that a certain percentage (often 55%) of a product's components must be sourced from the U.S. But here's the secret sauce: it only says some elements. That's where reshoring comes in. Think of it as a sugar substitute. You can still have some components from overseas, but others can be done onshore. By focusing on the metal components – the enclosures, the brackets, the sturdy backbone that houses your technological marvel. Partner with fabricators like Accurate Metal Fabricating to source those parts and gain supply chain improvements. They'll bend, weld, and powder-coat your vision into tangible reality, meeting all the Buy American Act's requirements while maintaining your design's integrity.

The Buy American Act, while daunting, is a manageable monolith. In fact, it represents a hidden opportunity for savvy manufacturers and OEMS like yourself and work with a domestic contract manufacturer. Consider it a chance to tap into the vein of American manufacturing and inject your charger with a potent dose of "Made in the USA." Think of the headlines: "Sustainable Energy Meets American Ingenuity," "Hometown Heroes Power Up the Electric Future." The marketing possibilities are as electrifying as a Tesla on an open highway. Your metal components aren't just about ticking compliance boxes. It's about tapping into a network of skilled American manufacturers, shortening your warehousing needs and supply chain constraints, and injecting your product with a dose of local pride. 

Challenges And How To Mitigate Them

made in usa induvudualsOf course, reshoring comes with its own set of challenges. Logistics, costs, and finding the right partners all need careful consideration. But remember, the potential rewards are as boundless as the open road. You could unlock massive government contracts, build brand loyalty with environmentally conscious consumers, and pioneer the American E.V. revolution.

So, the next time the Buy American Act feels like a roadblock, it isn't. It's just a detour. But this detour guides you towards a future that allows you to tap into new markets and potential. Finding the right partner is crucial, and we are ready to help when you are. The road ahead is paved with promise; the question is, will you seize the opportunity? Reach out to us today for a quote.

Topics: Metal, Fabrication, Metal Enclosure, powder coating

Jim Erhart

Written by Jim Erhart

Jim Erhart serves as the Marketing Manager for Accurate Metal Fabrication. Jim has more than 15 years of experience working in the metal and steel industry with a focus on steel tubular (HSS) products in various sales and marketing roles. He received a bachelor’s degree in Human-Computer Interaction from DePaul University and an MBA with a concentration in Marketing from Saint Xavier University.