SJT Manufacturing expands output under Build America, Buy America Act
SJT Manufacturing, a Bayamón-based producer of electrical components, is relocating hundreds of product lines from Mexico to Puerto Rico as it positions itself to benefit from the federal Build America, Buy America Act.
The law, known as BABAA, requires U.S.-funded infrastructure projects to prioritize domestically manufactured materials, including electrical and construction components. SJT has already begun producing items such as inverters, lithium battery systems and solar panel parts previously sourced from China, a move the company says has increased revenue and created new jobs.
Luis Alemañy, president of SJT Manufacturing and vice president for Puerto Rican Industries at the Puerto Rico Manufacturers Association, called the law a “concrete opportunity” for the island’s manufacturing sector to tap into federal procurement pipelines.
“Build America, Buy America is a concrete opportunity for Puerto Rican manufacturers to enter value chains previously dominated by international suppliers,” Alemañy said. “It requires all public works projects or public procurement projects financed by the government to prioritize construction materials and products manufactured in the United States.”
SJT’s operational shift includes transferring production from Saltillo and Monterrey, Mexico, to Bayamón, along with expanded assembly and logistics services for U.S.-based clients.
Although Puerto Rico’s Central Office of Recovery, Reconstruction and Resiliency announced BABAA compliance protocols in early 2024 for all recipients of Federal Emergency Management Agency funds, Alemañy said that both private companies and local government agencies have been slow to adopt the requirements due to limited awareness.
“There is a lot of unfamiliarity in the private sector and the government about the requirements and benefits of this program,” he said. “At the PRMA, I will be identifying alternatives to guide and connect with qualifying manufacturing SMEs.”
Under BABAA rules, at least 55 percent of metal components in public works projects must originate in the United States. Alemañy noted that manufacturers in sectors beyond construction could also benefit from aligning with the act’s certification and sourcing requirements.
SJT Manufacturing is part of the SJT Group, which includes consulting and logistics divisions. The company is ISO 9001 certified.
