What’s the Deal with the BABA (Built American Buy American) Act?
Choosing American: How BABA is Shaping the Future of U.S.-Made Goods
Have you noticed more buzz around “Made in America” products lately? You can thank the Build America, Buy America (BABA) Act for that. Since 2023, BABA has been shaking things up by prioritizing American-made materials in federally funded projects. While its main goal is to support U.S. manufacturers and create jobs, its influence is going beyond construction sites and government contracts–it’s starting to impact everyday purchasing decisions.
What is the BABA Act?
BABA, introduced in November 2021 as part of the Infrastructure Investment and Jobs Act, makes one thing clear: if federal funds are paying for it, it better be made in the U.S. This applies to roads, bridges, broadband networks, and other infrastructure projects. The core materials under this act include:
Iron and steel, which must be entirely sourced from the U.S.
Manufactured products require at least 55% of the component costs to come from U.S. sources.
Construction materials like drywall and wood also need to be U.S.-made.
Of course, there are exceptions (called “waivers”) for scenarios where American-made options aren’t feasible due to cost, availability, or public interest. However, overall, BABA means big opportunities for domestic manufacturers and local economies.
How BABA is Encouraging Buyers to Choose American
BABA does more than just set buying rules–it’s actively reshaping the way the U.S. market works. Here’s how:
- Creating a Guaranteed Market for U.S. Products
By requiring federally funded projects to source materials domestically, BABA creates steady demand for American-made goods. This consistency gives U.S. manufacturers breathing room to innovate and grow, knowing they have a reliable customer base. It’s a win-win for businesses and the economy.
- Turning Compliance into a Competitive Edge
Want that lucrative federal contract? You’ll need to use American-made materials. This incentivizes more companies to prioritize U.S. suppliers, helping to expand the market for domestic goods. Think of it as a ripple effect–the more businesses comply, the stronger the demand for American products becomes.
- Raising Consumer Awareness
BABA isn’t just about businesses–it’s also encouraging consumers to think differently. Companies that promote their “Made in America” compliance are putting domestic products in front of more people, tapping into increasing consumer interest in supporting reliable supply chains and local jobs.
- Strengthening Local Economies
When dollars stay within U.S. borders, everyone benefits. BABA ensures American businesses and communities thrive. From creating jobs to boosting spending in local economies, the act helps build a more self-sufficient and resilient economic ecosystem.
- Building Trust Through Transparency
BABA brings a sense of accountability that’s often missing in global supply chains. Its strict material origin requirements, backed by documentation and verification, create transparency. Whether you’re a consumer, taxpayer, or business owner, you can see exactly how and where your dollars are making an impact.
Final Thoughts
The BABA Act isn’t just a policy; it’s a movement toward a stronger, more self-reliant American economy. By prioritizing U.S.-made materials, BABA encourages businesses and consumers to re-evaluate their options and consider the long-term benefits of supporting local manufacturing.
Sure, the act faces its share of challenges, like convincing private companies to change their procurement strategies or winning over skeptics. But its potential to transform industries is undeniable. For American manufacturers and business owners, BABA isn’t just a mandate — it’s an opportunity to lead the charge in revitalizing U.S. industries and creating lasting growth for the workforce.
By choosing American, we’re not just building better roads and bridges–we’re building up local businesses.
