Federal Trade Commission Recieved Documents Jan. 16, 1996 P894219 B18354900040 January 12, 1996 Office of Secretary Federal Trade Commission Room 159 Sixth and Pennsylvania Avenue, N.W. Washington, D.C. 20580 Re: "Made in USA Policy Comment" FTC File No. P894219 Comments of Wright Tool Company Dear Sir/Madam: The Wright Tool Company is a family and employee owned business that has been manufacturing high quality sockets and wrenches since 1927 in Barberton, Ohio. Our contacts with customers and prospects in the professional portion of the tool market indicates a strong preference both for quality and a product made in the United States. Some people are strong unionists or nationalists and prefer U.S. made tools per se. Others know that historically the U.S. tools have been made to the highest and most comprehensive standards in the world, policed by product liability lawyers in a very competitive market with many large and small companies involved. As one of the smaller companies in the industry, Wright Tool lacks the recognition of our Fortune 500 competitors or the Craftsman brand. But, we gain an important degree of acceptance with a perspective customer when we tell them in person, or by advertisement, that we use no foreign blanks and not even any foreign steel. Indeed, the forging operation, because of its importance, is done by us. If the definition "Made in U.S.A." were enlarged, it would no longer strictly convey U.S. workmanship and would appear on lower quality tools and would lose not just part of its meaning but all of its meaning. The strict definition of "Made in USA" which now exists is a benefit not only to US manufactures and their employees, but much more importantly, to our consumers who have used it as a definite assistance in purchasing. I recognize that "Made in U.S.A." has a different connotation for other products and other consumer groups. The Hand Tool Industry will continue to offer the customer a choice of both qualities and countries of origin. I have no quarrel with that or the fact that some customers choose an imported product or lower quality product. My concern is that the choice be a knowing choice. I would welcome the opportunity to answer any questions based on a lifetime of experience in both engineering, manufacturing, and selling hand tools. Federal Trade Commission - 2 - January 11, 1996 I would also like to address the marking issue of separate markings for export under the existing regulations. First, the need to mark exported product differently from domestic product, this only occurs when the product has foreign content. Much of the product sold in the US today has no such foreign content and, therefore, those manufacturers have no problem. The US manufacturer that is complaining about the marking cost, already has four separately branded product lines in the US market that in many cases start with the same blank. So he is already incurring the cost of multiple marking and finds it acceptable. Second, marking is either the last or near to the last operation performed on the product and it is, therefore, perfectly practical to run large lots and carry most of the inventory in an unmarked condition and incur only a small cost penalty. It is this relatively small cost that needs to be weighed against the benefit lost by consumers and by manufacturers without foreign content. Sincerely, Richard B. Wright President RBW:slj cc: Fred Ikenson file: \finlaw\madeusa