Changes to federal defense rules are good news for longtime Blaine manufacturer
A Blaine manufacturer can maintain normal operations now that a new federal defense funding bill has closed a loophole that was hurting the company.
On Wednesday, Dec. 15 congress approved the 2022 National Defense Authorization Act. Included in the act is the closure of a loophole that previously allowed the U.S. Department of Defense to purchase ship anchor chains from foreign companies.
This loophole was impacting Blaine’s Lister Chain & Forge, a 110-year-old company that has landed contracts with the U.S. Navy and Coast Guard to build anchors and chains whenever new ships were being built since 1985.
The Navy recently took advantage of loopholes by accepting a design change that increased the size of the chains from 4 inches to 4.02 inches in diameter. The loophole allowed for foreign companies to handle production of chains more than 4 inches in diameter at a lower cost.
The Navy has been exploiting the loophole to avoid existing Buy America rules and instead procure chain from an overseas supplier, said U.S. Rep. Suzan DelBene, who worked with other U.S. representatives to close the loophole.
“If recent supply chain bottlenecks have taught us anything, it is we need a strong domestic manufacturing base, especially for military technologies and equipment,” said DelBene in a news release. “My fix in the 2022 NDAA will ensure that our Defense Department follows the letter and spirit of the law by bringing critical manufacturing and jobs back to Washington state.”
When news surfaced about the loophole impacting Lister last spring, company President Mike Stobbart said the 36-employee company would experience layoffs if that rule wasn’t changed. The company has had its facility in Blaine since 1988.
The bill now goes to President Biden for his expected signature.
