WASHINGTON (AFX) - A coalition of US manufacturing associations announced it will mount a coordinated effort to address the economic problems of an "overvalued" dollar.
"The time has come to take our initial teamwork approach to a higher level, and develop a broad and coordinated approach," said Jerry Jasinowski, President of the National Association of Manufacturers (NAM) in a statement.
Along with NAM, the group includes the Aerospace Industries Association, Motor Equipment Manufacturers Association, and four other industry groups.
The goal of the new initiative is "to develop a major grassroots campaign on the problem of the overvalued dollar," Jasinowski said. Although noting that the NAM has not called for direct action by the Bush administration to counter the strength of the dollar, Jazinowski urged the White House to "stop creating the impression that there's no such thing as an overvalued dollar."
The dollar remains well above levels seen in recent years, despite a drop against the euro and yen over the past month.
To date, Treasury Secretary Paul O'Neill, the Bush administration's chief spokesman on the dollar, has held fast to a strong dollar policy, despite pressure from US manufacturers.
Jasinowski urged the administration to signal it does not support an overvalued dollar.
"Subtle signs from government officials can have a significant impact -- and that's what we'd like to see," he said.
He listed job losses, declining sales by US firms overseas, and increasing risk of loss of domestic market share to imports, as major problems caused by an overvalued dollar.
O'Neill has consistently responded to manufacturer's complaints about dollar strength by saying that well-run firms are able to cope and excel even in the face of dollar strength.
He has cited using foreign exchange options and balancing a firm's sales and sourcing across currencies as ways to cope with currency fluctuations.
Jasinowski, however, said companies being hurt by the "overvalued" dollar "aren't slackards."
"They include winners of the Commerce Department's E-Award for export excellence, and the coveted Baldridge award," he said.