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EMD-82-15 1 (1981-11-10)

handle is hein.gao/gaobabcqb0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 0NMGY AN0 MINIRALS B-204996 116836 NOVEMBER 10, 1981 The Honorable Malcolm Baldrige The Secretary of Commerce Dear Mr. Secretary: Subject: !Need for Better Monitoring and Analysis of Foundry Data by the Department of Commerce (EMD-82-15) This letter, like our recent report to you and Def nse Secretary Weinberger, discusses our concerns pertaining to the Nation's foundry industry. That first report 1/ discus ed foun- dry closures and their effect on defense production cap city and Federal data collection problems. This letter discussei deficien- cies in the organization and the foundry data analysis *ithin the Department of Commerce over and above the data collection problems stressed in our first report. The foundry industry, fifth largest manufacturing industry, is an integral part of our Nation's industrial base, as foundry castings are used in approximately 90 percent of all'U.8. durable goods production. The Department of Commerce's Office of Basic Industries (OBI) monitors and analyzes the foundry industry, but OBI has done little to provide a useable data'base. This is evidenced by inadequate staff, no permanent files, and ia general unawareness of all available Government and private foundry data. Because of this the OBI has been unable to contribute to useful analyses of key issues, i.e., foundry closures, reasons for the closures such as regulations! and imports, and impacts of closures on the industry such as production capacity. Much of the foundry data available is either contradictory ox inadequate, leaving to speculation the impact some of these issues have on the industry. STATUS OF COMMERCE'S MONITORING AND ANALYSIS The Office of Basic Industries is charged with monitoring and analyzing roughly 150 basic industries, one of which is foundries. OBI is considered the focal point for foundry industry information, both by other governmental entities _/Potential Impediment of Foundry Capacity Relative to National Defense Needs, (EMD-81-134, Sept. 15, 1981). /9(008457) 41<

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