Michigan economic development wars

As we have previously mentioned here and here Michigan has set up various entities to promote the state’s companies for defense contracts. According to this article though the head of the state organization is upset with one of the regional ones for not doing enough. The state hired a retired USMC general to run their organization and now he is raising a dispute over the efforts of one setup for the Western part of the state to the point where he wants to establish his own organization to do the work of the existing one. I guess when you are going out for Federal dollars no effort is wasted.

ITAR screws up DoD contract

According to this article, a Canadian company, ABB Bomem Inc., was a subcontractor to a US firm making a system for the US military. It needed parts from an American company that were delayed several months due to the International Trafficking in Arms Regulations (ITAR). ITAR is a complicated legal process governing the export of American weapons and components to foreign entities. Since the Clinton scandals of the Nineties they have been ramped up a lot. Of course with the international integration of the worlds defense production they have also made it harder for US companies to do business with foreign nations and companies, as well as making it worse for foreign companies trying to get in to the large US market. This is why BAE, EADS and Finemeccanica are trying to buy US companies. Since they are already in the US and are considered American it makes it easier to operate under the ITAR.