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Highlights

In a prior report, GAO discussed foundry closures and their effect on defense production capacity and Federal data collection problems. GAO reviewed the deficiencies in the organization and the foundry data analysis within the Department of Commerce over and above the data collection problems stressed in the first report.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Commerce The Secretary of Commerce should initiate preparation of memorandums of understanding with the Secretary of Labor and the Administrator of the Environmental Protection Agency for the purpose of keeping OBI apprised of planned, ongoing, and completed work related to the foundry industry.
Closed - Not Implemented
Commerce feels a Memo of Understanding is not necessary. It has established a division responsible for collecting information on how the governmental regulations affect the foundry industry. This increased activity should satisfy the recommendation.
Department of Commerce The Secretary of Commerce should ensure that adequate resources are assigned within OBI to ferrous and nonferrous casting and foundry equipment sectors. Also, the Secretary should require OBI to establish continuous contact with the Department of the Interior's Bureau of Mines for beneficial collaboration in the development of the foundries' sector industrial model being sponsored by the Bureau.
Closed - Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Commerce Through the Department's designated Chief Economist, the Secretary of Commerce should direct OBI to annually develop a list of foundries closed, reasons for the nature of the closure, and other data necessary to determine the impact of closures on the foundry industry, such as capacity and employment effects.
Closed - Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Commerce Through the Department's designated Chief Economist, the Secretary of Commerce should direct the Bureau of the Census to include in the Census of Manufactures or Current Industrial Reports reconciliations or explanations for the discrepancies in foundry shipment data between these two publications.
Closed - Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

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