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Blog Entries from 2014

Why the National Network for Manufacturing Innovation?

Why the National Network for Manufacturing Innovation?

Guest blog post by Barb Ewing, Chief Operating Officer for the Youngstown Business Incubator, and Scott Deutsch, Manager, Communications & Special Programs for the National Center for Defense Manufacturing and Machining

Youngstown Business Incubator is home to the National Additive Manufacturing Innovation Institute (“America Makes”), the pilot program for the President’s National Network for Manufacturing Innovation.

Too often, when we think about manufacturing, we think of large, multi-national corporations that once dominated the economic landscape.  However, as corporations continue to downsize and revamp operations, Small to Mid-sized enterprises (SMEs) are increasingly becoming the life blood of the nation’s manufacturing economy.

Large companies generally have the extra resources – both human and financial -to assume the risks associated with adopting new technologies. They view these investments as critical to becoming more efficient and flexible on a global scale. While the leadership at smaller firms may also recognize the potential benefits, limited technical expertise in house, challenges with their workforce and small (or nonexistent) capital budgets make it more difficult for SMEs to make those same kind of investments.

That’s where the National Network of Manufacturing Innovation (NNMI) can come into play. The NNMI are public private partnerships aimed at accelerating the development and adoption of cutting-edge manufacturing technologies for making new, globally competitive products.  Each institute in the network is an exciting new collaboration space for industry and academia to speed up innovation.  They are positioned to “bridge the gap” between basic research and industry needs.  The focus is to de-risk and scale up new materials and processes to solve the priority problems of industry.

Census Bureau Completes Release of All 364 Manufacturing Reports from Economic Census Industry Series

Census Bureau Completes Release of All 364 Manufacturing Reports from Economic Census Industry Series

In recognition of Manufacturing Day on October 3, the Census Bureau presents descriptions of its wide array of data products on the manufacturing sector of the economy. Additionally, statistics on all 364 industries in the manufacturing sector are now available from the 2012 Economic Census.

  • 2012 Economic Census Industry Series: A complete series of national-level data files on specific manufacturing industries, including, for instance, the number of establishments, payroll, number of employees, value of product shipments and services provided by businesses. News releases are available highlighting breweriesautomobile manufacturing, household appliance manufacturing andsemiconductor manufacturing. The economic census is conducted every five years.
  • 2012 County Business Patterns: Provides the only detailed annual information on the number of establishments, employees and payroll for nearly 1,200 industries at the national, state and county levels. This data set includes statistics for all manufacturing industries. Latest data were released in May.
  • Annual Survey of Manufactures: Includes three data sets: statistics for industry groups and industries, value of product shipments and geographic area statistics. Collected annually, except in years ending in 2 and 7, at which time these statistics are included in the manufacturing sector of the economic census.
  • Survey of Plant Capacity Utilization: Provides quarterly statistics on the rates of capacity utilization for the U.S. manufacturing and publishing sectors. Data for the second quarter 2014 now available.

Public-Private Partnerships: A Key Enabler for American Manufacturing Innovation

Steve Betza, Director of Advanced Manufacturing and Development at Lockheed Martin

Guest blog post by Steve Betza, Director of Advanced Manufacturing and Development at Lockheed Martin.

Headquartered in Bethesda, Md., Lockheed Martin is a global security and aerospace company that employs about 113,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

 

As we celebrate this year’s Manufacturing Day, Lockheed Martin is hosting hundreds of students, community leaders and government officials at facilities across the country, with the goal of inspiring our next generation of manufacturing leaders. We envision an exciting future for U.S. manufacturing – a future built upon a strong foundation of public-private partnerships.

At Lockheed Martin, we are breaking new ground in additive manufacturing, advanced materials, digital manufacturing and next-generation electronics. We produced the first additively manufactured parts to fly in space onboard NASA’s Juno spacecraft – currently on its way to Jupiter. We are launching new STEM and workforce development initiatives, conducting high-impact research, and publicly communicating the importance of manufacturing and job creation to the U.S. economy.

While these are promising steps, it’s important that government, industry and academia come together early and often to accelerate manufacturing innovation. As a nation, we need to successfully transition new technologies from the laboratory to production, and then bring them to the marketplace – both domestic and global. We believe that the National Network for Manufacturing Innovation (NNMI) has the potential to transform U.S. manufacturing on a grand scale. For this reason, we are active or committed Tier 1 members at all four Institutes for Manufacturing Innovation (IMIs) launched to date.

New tool shows manufacturing in America carries huge potential savings; a reshoring success “toy story”

New tool shows manufacturing in America carries huge potential savings; a reshoring success “toy story”

Guest blog by Dr. Sue Helper, Chief Economist, Economics and Statistics Administration

This week, as we celebrate the country’s vital manufacturing sector, we are excited to unveil a new tool that will allow manufacturers to calculate potentially significant savings that can be realized by manufacturing in America.

With the first iteration of Assess Costs Everywhere (ACE), we assisted manufacturers in deciding where to locate their operations by examining 10 cost and risk factors they should consider.  This week, we present “the Cost Differential Frontier,” or CDF, as part of ACE 2.0.  Developed by economists at the University of Lausanne, this calculator serves as a framework to consider total inventory costs and risks. 

ACE 1.0 examined factors such as labor; trade financing and regulatory compliance costs; product quality; shipping; travel and oversight; inventory; intellectual property; political/security risks; and other inputs to gain a better understanding about the sometimes hidden costs associated with manufacturing location decisions. Great work is underway to further our understanding of the financial implications of these factors.  Applying CDF, businesses for the first time can quantify potential savings that would be derived from reducing lead time, in conjunction with other factors. 

Because customer demand often fluctuates unexpectedly, companies should carefully consider the value of a domestic supply chain with shorter lead times.  Using offshore suppliers increases the time between order and delivery, often by months. As a result, the buyer must place the order based on a forecast.  As the lead time gets longer, the range of demand levels that must be considered becomes wider.  These fluctuations lead to costly stock-outs or overstocks.  The savings from offshoring may need to be large (20 percent or more) to compensate for these mismatch costs between supply and demand. Applying CDF, manufacturers can calculate exactly how the long supply chains and uncertainty add large hidden costs to production.

Moreover, real-life examples such as the successful reshoring story of U.S. toy manufacturer K’NEX demonstrate that the promise of ACE is more than just theoretical. Indeed, with ACE and CDF, a truly compelling case for reshoring is emerging.

U.S. Commerce Secretary Prizker Co-Chairs Economic and Commercial Dialogue with Poland’s Deputy Prime Minister Piechocinski

U.S. Commerce Secretary Prizker Co-Chairs Economic and Commercial Dialogue with Poland’s Deputy Prime Minister Piechocinski

Yesterday, U.S. Secretary of Commerce Penny Pritzker joined Polish Deputy Prime Minister and Minister of Economy Janusz Piechociński in co-chairing an Executive Session of the Economic and Commercial Dialogue (ECD). The ECD is a forum created by the U.S. Department of Commerce and the Polish Ministry of Economy to work specifically on strengthening the ability of our companies and investors to do business in each other's markets. Secretary Pritzker is traveling with a delegation of some of America's top CEOs who are members of the President's Export Council.            

At yesterday's meeting, Secretary Pritzker and the PEC CEOs addressed collaborative and tangible ways to increase trade and investment between the U.S. and Poland, particularly as Poland's economy continues to grow. Poland currently has the sixth-largest and one of the fastest growing economies in the EU, and growth is projected to continue in 2014. While bilateral trade between the U.S. and Poland has quadrupled over the past 10 years, reaching nearly $8.8 billion in 2013, there is tremendous opportunity for continued growth.

One mechanism to increase trade and investment between the U.S. and Poland is the Transatlantic Trade and Investment Partnership (TTIP), which is currently being negotiated between the United States and the EU. Once concluded, TTIP will combine the U.S. and EU markets into a stronger transatlantic marketplace, with more than 800 million customers. The U.S. considers Poland an important voice in TTIP negotiations.

Secretary Pritzker Hosts Innovation Roundtable with Polish Industry Leaders and Startups

Secretary Pritzker Hosts Innovation Roundtable with Polish Industry Leaders and Startups
U.S. Secretary of Commerce Penny Pritzker and a delegation of U.S. CEOs yesterday met with Poland's Minister of Higher Education and Science and a group of Polish innovators to discuss the country's efforts to encourage innovation in their economy. Secretary Pritzker was in Warsaw with a group of U.S. CEOs who are members of the President's Export Council. 
 
The Polish government has made the promotion of innovation a top priority. Poland will be receiving a total of $106 billion in funds from the European Union by 2020. Poland plans to invest about 70 percent of those funds to promote innovation. The United States is well-positioned to serve as a partner in these efforts by sharing best practices and engaging our private sector leaders in Poland to further promote innovation.
 
The discussion centered on obstacles that individuals and businesses are experiencing when it comes to innovation, and how the United States can serve as a partner in support of innovation in Poland. For example, while a strong commitment to R&D is one principal driver of innovation, Poland’s current spending on R&D is less than 1 percent of GDP.  
 
However, R&D is only one component of a strong innovation economy. The Department of Commerce is America's "innovation agency," and helps build an innovation ecosystem in the United States by supporting a strong patent system, making investments in regional business incubators and science parks, expanding access to broadband and developing technology standards. 

Manufacturing: Rebuilding America’s Economy

Manufacturing: Rebuilding America’s Economy

Guest blog post by Jay Williams, Assistant Secretary of Commerce for Economic Development

Last week, I was honored to participate in Partnering for Illinois’ Economic Future Second Annual Economic Summit hosted by Congresswoman Cheri Bustos (D-IL) in Rock Island, Illinois. This summit is the highlight of an initiative the Congresswoman launched in 2013 to foster economic collaboration in the 17th Congressional District of Illinois, and my keynote focused on the challenges and opportunities facing the American manufacturing sector, how we can prepare for success in the global economy, and what is being done at the federal level to help regions succeed. 

Manufacturing matters:

* Manufacturing supports 17.4 million U.S. jobs.

* Manufacturing career opportunities include engineers, designers, machinists, and computer programmers.

* The annual average salary of manufacturing workers is more than $77,000, which is approximately 17 percent more than similar workers employed in other sectors.

* For every $1.00 spent in manufacturing, the sector creates $1.32 for the U.S. economy. 

While some have been quick to write the obits for nearby manufacturing towns like Moline, and East Moline, Illinois, and Davenport, Iowa, it was refreshing to see the close collaboration taking place locally to bring manufacturing back. 

At the national level, we are working to support our manufacturers by supporting efforts to build the President’s National Network for Manufacturing Innovation (NNMI), which is working to accelerate development and adoption of cutting-edge manufacturing technologies.

Two weeks ago, U.S. Commerce Secretary Penny Pritzker spoke of the need for passage of pending bipartisan legislation that would establish the network. NNMI is all about keeping America – our manufacturers, businesses, and economy – globally competitive. NNMI is focused on helping America lead the global economy; boosting local, regional, and state economies, and most importantly, create new growth industries, right here in America. 

Secretary Penny Pritzker to Lead High-Level U.S. Business Delegation to Poland and Turkey

Secretary Pritzker met with young entrepreneurs, who are the future of a stronger Ukrainian economy, during her commercial diplomacy trip to Kyiv, Ukraine.

U.S. Secretary of Commerce Penny Pritzker will lead a high-level delegation of America’s top CEOs on an economic fact-finding mission next week to Poland and Turkey. Secretary Pritzker and the CEOs, all of whom are members of the President’s Export Council (PEC) will use the trip to identify immediate and long-term opportunities to increase trade and investment between the U.S. and Poland and the U.S. and Turkey, two high-potential, fast-growing markets. Through greater understanding of these markets, the Department of Commerce and the President’s Export Council can help U.S. companies gain better access to Poland and Turkey, so they can sell more of their goods and services abroad and support jobs here at home.

Following this trip, the PEC CEOs joining the mission will apply their commercial expertise to produce a report for President Obama, which will recommend actions the U.S. government can take to address challenges and increase trade and investment between the U.S. and Poland, and the U.S. and Turkey

Just prior to the PEC mission, Secretary Pritzker will visit Kyiv, Ukraine. Secretary Pritzker's visit to Ukraine was announced by President Obama during Ukrainian President Poroshenko’s visit to Washington, D.C. last week.  Secretary Pritzker, whose family comes from Ukraine, will use her time there to discuss with Ukrainian government and business leaders the reforms necessary to improve their business climate, attract private capital, expand opportunity, and strengthen the economy for greater investment and growth. She will also explore potential opportunities for additional commercial cooperation between the U.S. and Ukraine.

After her stop in the Ukraine, Secretary Pritzker will join the eight PEC members and Under Secretary of Commerce for International Trade Stefan M. Selig in Warsaw, where they will meet with Polish government officials and business leaders and gather insight on opportunities and challenges facing U.S. companies in each respective market. Following the stop in Warsaw, the group will continue on to Istanbul and Ankara, Turkey.

Supporting Manufacturers on Manufacturing Day and Every Day

Manufacturing is a crucial contributor to the economy of North Carolina and the entire United States.

Guest blog post by Greg Sizemore is the Director of the International Trade Administration’s U.S. Commercial Service team in North Carolina.

Cross-posted from Trade.gov.

Manufacturing is more than just a cornerstone of the U.S. economy; it’s a cornerstone of modern life.

The screen you’re reading this on is a manufactured commodity. The radio you’re listening to, the car you drove to work, the smartphone your kids keep staring at – your refrigerator, your TV, your medicine – all manufactured goods.

Many headlines about U.S. manufacturing are negative, focusing on increased global competition in the sector, but the fact is that the U.S. manufacturing industry is growing, it’s supporting jobs, and it is supporting higher quality of life here in the U.S. and around the world.

Manufacturing is also a major source of U.S. exports, and the International Trade Administration estimates that one in four U.S. manufacturing jobs is supported by exports. That’s huge for our economy and I’m glad that we’ll celebrate the industry on Manufacturing Day on October 3.

Here in North Carolina, our manufacturers are creating and exporting billions of dollars’ worth of transportation equipment, chemicals, electronics products plastics, and more. I’m glad that my office in Charlotte and our other Export Assistance Centers in the state get to work with local manufacturers to find opportunities to sell their quality products in foreign markets.

If you’re a manufacturer looking to do business overseas, here are some of the services an Export Assistance Center can provide for you:

  • Market Research: Find out you product’s potential in a given market. Learn about specific regulations that could affect your business model. This kind of information is crucial for your export strategy.
  • Gold Key Matchmaking: Who are the best distributors in a market? What potential joint venture partners exist? What are the best government contacts for you to have? We can find those contacts, make introductions, and make sure you spend your time doing what’s most important: managing your company.
  • Trade Missions: Imagine you could go on a trip to a target market, surrounded by market and industry experts, and meet the foreign government and industry leaders most relevant to your business. That is a trade mission. We connect you to the most relevant opportunities and contacts to make sure you have every advantage to being successful in a market.
  • Trade Leads: We have commercial diplomats on the ground in more than 70 global markets and they have their fingers on the pulse of the business environment. Let us tell you the most current and relevant opportunities for your business around the globe.

You should also consider attending an event in our DISCOVER GLOBAL MARKETS Business Forum Series. We have export-promotion events coming up in New York, Georgia, Minnesota, and – of course – North Carolina, to support your business in competing abroad. There’s no better event to give your company a leg up in the global marketplace.

There are many other ways the Commercial Service can support your manufacturing business, so contact your nearest Export Assistance Center for assistance.

As Manufacturing Day approaches, I want to thank the 50-plus North Carolina-based manufacturers who are opening their doors to the public on October 3. I hope many of you in the Tar Heel State, and around the country, will participate in Manufacturing Day this year!

Data Innovation Summit: Taking Advantage of Boston’s Big Data Movement

Under Secretary Mark Doms Speaks at the Big Data Innovation Summit in Boston, MA

Guest blog post by Mark Doms, Under Secretary for Economic Affairs

Cross-posted from ESA.gov.

I was honored to deliver the keynote address this morning to over 800 of today’s data leaders.  In preparation I had one goal: to tell the story of data -- how far the Department of Commerce has come and it’s potential for the future. These are exciting times. Over the past decade, jobs in data fields have grown at a rate 6 times faster than the economy as a whole, and these jobs pay 73% more than the typical American job.

The federal government provides fundamental statistical building blocks about our population, our economy, and our climate. This information is so pervasive that people often are unaware they are using government data. For instance, one survey found 301 billion weather forecasts are consumed per year -- information that is delivered by an array of sources, but begins with the National Weather Service, part of the Commerce Department’s National Oceanic and Atmospheric Administration. Indeed, many of the companies attending the Big Data Innovation Summit today in Boston rely heavily upon government data.  

Since 1790, when the first Census occurred, our government has taken the time to collect information that tells the demographic and economic story of our nation. We take this commitment very seriously at the Department of Commerce and we welcome user input.