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Secretary Locke Tours Embraer to Highlight Importance of Trade Relationship Between U.S. and Brazil

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Secretary Locke Tours Embraer 's Facility
Secretary Locke visited Embraer's Manufacturing Facility

U.S. Commerce Secretary Gary Locke today encouraged stronger U.S.-Brazil commercial relations during a visit to Embraer manufacturing facility outside Sao Paulo. Embraer is a Brazilian manufacturer of commercial, general aviation, and defense aircraft.  Locke toured the facility and saw firsthand how the company incorporates significant U.S. aviation content into its supply chain.  He also applauded the company for it integrated supply chain and encouraged further integration with American small-medium-sized enterprises.

"Embraer is a shining example of partnership between U.S. and Brazilian manufacturing that is a "win-win" and creates jobs in both countries," Locke said.

According to Embraer, the company has imported over $6 billion in goods from U.S. companies over the last five years.  Embraer recently opened an assembly facility in Melbourne, Fla. and currently employs 660 people in the United States at 5 facilities.

Brazilian firms have made substantial investments in the U.S. worth billions of dollars during the past decade. Between 2003 and 2010, 47 projects were announced with a total capital investment of $2.5 billion dollars. Completed, these projects could create 4,806 new jobs, in a cross-section of industries ranging from information technology to steel making.

U.S. subsidiaries of Brazil-owned firms employed 42,200 people in the United States as of 2008.

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Collaboration Between Global & Regional Inovation

Embraer is a great example where manufacturing innovation has changed from a competitive disadvantage to a collaborative advantage. The recent growth in Brazil has allowed for a disposable income for the first time in many years. Along with this and the potential exporting of future oil, a bilateral relationship with Brazil is essential for growth of jobs in both the US and Brazil. Tapping this market will enhance capital investments even more than it already has in the past decade.

As Rousseff and the President Obama look to enhance trade and development in both countries, we can reference Harvard professor Michael Porter's cluster theory and his emphasis on acting regionally while focusing on our long range use of assets to enhance global competition. Collaboration with all assets including capital investments, industry, technology, manufacturing innovation, and energy assets will lead to maximum competition.

To increase job growth and global success in the United States, it is important for the US to connect these basic innovative assets that Brazil currently officers through its growing economy. For example, the 2016 summer Olympics are to take place in South America, which will increase jobs where companies like GE and Embraer will continue to create "win-win" situations. If the US and Brazil's actions are strategically focused on the long range use of all assets, this will maximize our global competitiveness. Finally, what President Obama is doing will enable the US and Brazil to quickly collaborate in order to compete on a global scale. If we don't react fast enough there is a possibility that we will lose our competitive advantage.

MF-WLP

Jobs

Please keep up the good work. We need those jobs! Thank you.