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Blog Category: Domestic Manufacturing

Delivering an American Economic Comeback

Guest blog post by Penny Pritzker, Secretary of Commerce

All Americans love a comeback story. And that is the story that President Obama weaved in his powerful State of the Union address.

Thanks to the grit, resilience and hard work of the American people and our businesses, more than 2 million jobs were created last year and we hit the lowest unemployment rate in more than five years. We have a manufacturing sector that has added over half-a-million jobs. Our stock market is booming. We have record exports. Our housing market is rebounding. And we've cut our deficits by more than half.

And while we have more work to do to lift incomes, expand opportunity for our people and help businesses with the tools they need to grow and hire, both President Obama and I are optimistic about America's future.

We both know that 2014 can be a breakthrough year for America, and we are better positioned for this century than any nation on earth.

Summary of Twitter #MFGChat on ESA's Manufacturing Jobs report

Today @CommerceGov, @EconChiefGov, and @TheMFGInstitute joined the manufacturing community on Twitter to discuss the Economic and Statistics Administration’s “The Benefits of Manufacturing Jobs” report. #MFGChat is held monthly. Below is a selected transcript of the conversation.

Join Chief Economist Mark Doms and Gardner Carrick of The Manufacturing Institute for a Twitter Chat on Manufacturing Jobs on Friday

Following the release of the Economic and Statistics Administration’s “The Benefits of Manufacturing Jobs” report, Chief Economist Mark Doms and Gardner Carrick, Vice President of Strategic Initiatives at The Manufacturing Institute, will be holding a 30-minute Twitter chat responding to your questions about the report and the state of American manufacturing on Friday, May 11th at 1:00pm ET.

Manufacturing jobs provide benefits to workers with higher overall compensation than other sectors, and to the economy through innovation that boosts our nation’s standard of living.  Specifically, this report shows that:

  • On average, hourly wages and salaries for manufacturing jobs are $29.75 an hour compared to $27.47 an hour for non-manufacturing jobs. Total hourly compensation, which includes employer-provided benefits, is $38.27 for workers in manufacturing jobs and $32.84 for workers in non-manufacturing jobs, a 17 percent premium.
  • Even after controlling for demographic, geographic, and job characteristics, manufacturing jobs maintained significant wage and benefit premiums.  
  • The educational attainment of the manufacturing workforce is rising steadily.  In 2011, 53 percent of all manufacturing workers had at least some college education, up from 43 percent in 1994.
  • The innovative manufacturing sector relies more heavily on STEM education than non-manufacturing.  For instance, nearly 1 out of 3 (32 percent) college-educated manufacturing workers has a STEM job, compared to 10 percent in non-manufacturing. 
  • Higher educational attainment for manufacturing workers carries higher premiums and the size of the premium, including or excluding benefits, increases consistently with educational attainment.
  • Furthermore, the compensation premium has risen over the past decade across all levels of educational attainment.

Here's how you can participate:

  • Starting now, ask questions for Mark and Gardner on Twitter using the hashtag #mfgChat or at our Facebook page or in the comments here.
  • On Friday, May 11th, at 1:00p.m. EST begin following @EconChiefGov @TheMFGInstitute and #mfgChat to follow the conversation.
  • Check back on Commerce.gov later on Friday to see a summary of the conversation once it is completed at 1:30

 Be sure to follow @EconChiefGov on Twitter for the latest key economic indicators.

Economic and Statistics Administration Releases Report on "The Benefits of Manufacturing Jobs"

Stats and figures in Visual Form

Today the Economic and Statistics Administration released a report entitled "The Benefits of Manufacturing Jobs" (PDF) that explores benefits to workers and to our nation of a strong manufacturing sector. The current economic recovery has witnessed a welcome return in manufacturing job growth.  Since its January 2010 low to April 2012, manufacturing employment has expanded by 489,000 jobs or 4 percent— the strongest cyclical rebound since the dual recessions in the early 1980s.  From mid-2009 through the end of February 2012, the number of job openings surged by over 200 percent, to 253,000 openings. Coupled with attrition in the coming years from Baby Boomer retirements, this bodes well for continued hiring opportunities in the manufacturing sector.

The rebound in manufacturing is important, not only as a sign of renewed strength, but also because manufacturing jobs are often cited as “good jobs:” they pay well, provide good benefits, and manufacturing workers are less likely to quit than workers in other private sector industries. In fact, our analysis finds evidence in support of these claims.  Specifically, this report shows that:

Emphasizing Efforts to Improve Manufacturing Competitiveness

Deputy Secretary Rebecca Blank listens to members of the Council on Competitiveness Executive Board

Guest blog post by Deputy Commerce Secretary Rebecca Blank

Yesterday, I spoke to the Council on Competitiveness Executive Board about how the Commerce Department, working with the National Economic Council, leads the administration’s efforts across the federal government to promote a vibrant manufacturing sector in the United States.

Manufacturing is vitally important to supporting an economy that is built to last. Manufacturing accounts for 90 percent of our patents, 70 percent of private sector R&D and 60 percent of our exports–including a record $1.3 trillion in goods exported last year. The manufacturing sector has grown strongly over the past two years. After decades of losing manufacturing jobs, the manufacturing sector has been adding jobs for over two years. In the past 25 months manufacturing has added nearly a half million new jobs and 120,000 of those came in the first three months of this year. Importantly, these tend to be high-paying jobs with good benefits.

Even with these improvements in the manufacturing sector, there is much more work to do to ensure America remains competitive. The Department of Commerce recently released a report, “The Competitiveness and Innovative Capacity of the United States,” that discusses some of the challenges the U.S. faces in retaining its global leadership, particularly in manufacturing, and lays out a policy agenda to address these challenges.

Commerce has long worked on this issue through its Manufacturing Extension Partnership at the National Institute of Standards and Technology, which supports centers in every state that consult with companies facing technological problems and puts them in touch with scientists and engineers who can help solve those problems. For every dollar of federal investment, the MEP generates around $30 in new sales growth. This translates into $3.6 billion in new sales annually.

Some of the more recent efforts within the Commerce Department to build a policy environment in which manufacturing can flourish include:

Commerce Secretary John Bryson Visits Manufacturers in Tennessee

Secretary Bryson cuts ribbon at new Whirlpool manufacturing facility in Cleveland, TN

Today, U.S. Commerce Secretary John Bryson traveled to Cleveland, Tennessee, where he visited the Whirlpool Corporation for a ribbon cutting ceremony for their new, one-million square foot manufacturing facility. The $200 million factory is the largest premium cooking product manufacturing and distribution facility in the world, exemplifying the Secretary’s mission to help U.S. business build it here and sell it everywhere. The opening of the facility marked 100 years of Whirlpool manufacturing Made-in-America products.

While in Tennessee, the Secretary also made a stop in Chattanooga to visit the Volkswagen manufacturing plant, which builds the 2012 Passat. Volkswagen recently announced that they were adding a third shift to the operation at their Chattanooga plant in response to increased consumer demand, which will create over 700 additional jobs. This development is just one more example of the continued resurgence of the American manufacturing industry.

In fact, today, the Economics and Statistics Administration highlighted data showing that automakers are contributing heavily to the success of American manufacturing. The report finds that auto sales are at the highest level since the first quarter of 2008.

Building America’s Future: Smart Investments in Advanced Manufacturing

From the front row, Secretary Bryson watches President Obama at the Rolls-Royce Crosspointe Manufacturing Plant

Guest blog post by Commerce Secretary John Bryson

I had the opportunity today to join President Obama on a visit to the Rolls-Royce Crosspointe facility in Prince George’s County, Virginia. This facility manufactures components of some of the company’s most advanced airplane engines.  The company announced that it is planning to add 140 new jobs at Crosspointe and more than 100 additional jobs in Indiana manufacturing components for aircraft wings. 

As I have said and as the President said today, we are fully committed to helping U.S. businesses build things here and sell them everywhere.  The Crosspointe facility is an important example of how we are doing just that, and it was remarkable to have the opportunity to see these efforts in action.

Crosspointe received a $4 million investment from the Commerce Department’s Economic Development Administration (EDA) to help establish the Commonwealth Center for Advanced Manufacturing (CCAM).  Later this summer, the CCAM, an applied research center developed by eight companies, the state of Virginia, and three leading state universities, will open its doors.  This will help bridge the gap from research to product development while supporting the skills that workers need to get good jobs in advanced manufacturing.  In addition, CCAM will form linkages to local community colleges to promote workforce training and high-skilled employment.  The project is expected to create 128 jobs, while at the same time strengthening advanced manufacturing in the immediate area, and generating $22 million in private investment.

Support for Manufacturers in the President’s FY2013 Budget Request

President's Fiscal Year 2013 Budget Request Logo

Yesterday the president released his FY2013 budget request and Secretary Bryson announced the Department of Commerce’s requests. In the president’s budget, there is strong support for manufacturers by increasing investments in advanced manufacturing, new trade promotion efforts, and innovation investments.

To strengthen and extend Advanced Manufacturing research, Commerce's National Institute of Standards and Technology is requesting an increase of $45M for a total of $135M. These laboratory efforts are further leveraged with a request of $21M to support the Advanced Manufacturing Technology Consortia Program, and $20M for a NIST Centers of Excellence program. These programs will strengthen public-private partnerships and accelerate innovation focused on manufacturing and technology development.

The president’s budget provides $128 million for the Hollings Manufacturing Extension Partnership (MEP) to improve the competitiveness of small- and medium-size firms in manufacturing and service industries through custom consulting and product testing.

Secretary Bryson: Moving in the Right Direction on Jobs - Let’s Keep our Focus on Building it Here and Selling it Everywhere

Private Sector Payroll Employment (updated Feb 2012)

Guest blog post by John Bryson, U.S. Secretary of Commerce

Today’s employment numbers are yet another indication that our economy is moving in the right direction. The unemployment rate dropped to 8.3 percent and 243,000 jobs were added in January, making this the 23rd consecutive month of job growth. Private sector job growth has been driving the decrease in unemployment, with the private sector adding 257,000 jobs last month. The manufacturing sector alone grew by 50,000 jobs in January, showing that manufacturing is still an important and growing part of the American economy. In the last two years, manufacturing added 330,000 jobs in the U.S. – the strongest growth since the 1990s. And today, we learned that new orders for manufactured goods rose 1.1 percent in December 2011.

Despite this, our work remains far from over. We need faster economic growth to put Americans back to work and we won’t let up until everyone who wants a job can find a job. We must redouble our efforts to create an economy that is built to last. 

So what does that mean?  I can tell you first hand.  Over the past 10 days, I’ve traveled to Norfolk, Columbus and Pittsburgh to talk with businesses that are on the front lines of strengthening the elements of an economy built to last: American manufacturing, American energy, and training for American workers.

I’ve talked with manufacturers who are making everything from mattresses to advanced batteries. My message to them is a simple one: This Administration – this Department – wants to help more businesses like yours build it here and sell it everywhere.

We can and must build on the momentum the economy has gained in four key ways.

Secretary Bryson Travels to Pittsburgh to Tour Energy Company and Meet with Business Leaders

Secretary Bryson Travels to Pittsburgh to Tour Energy Company and Meet with Business Leaders

Secretary Bryson is in Pittsburgh, Pennsylvania today, where he has a busy day. He started his day meeting the Western Pennsylvania District Export Council (DEC) over breakfast. He shared the President’s outline for ensuring more items are made in America. The President has proposed an end to tax breaks for businesses that outsource, additional tax relief for those that bring jobs back, and lowering the tax rates for manufacturers, especially high-tech manufacturers. DEC members shared with him what they are hearing from their fellow business leaders about the challenges and successes of exporting into new and expanding markets.

After thanking DEC members for their hard work, Bryson toured Aquion Energy, a Carnegie Mellon University spin off and battery technology company. Bryson was joined by Pittsburgh Mayor Luke Ravenstahl and Aquion CEO Scott Pearson. They toured the development lab, the manufacturing floor, and battery assembly room. Aquion Energy is working on bringing new battery technology to market. This technology is a sodium-ion battery optimized for stationary storage applications with a targeted commercial release of 2012 in applications such as micro-grid support, off-grid generator optimization, and grid-level energy services.

Bryson and Mayor Ravenstahl then headed over to Carnegie Mellon University to participate in a discussion with business leaders and Carnegie Mellon Vice President of Research Rick McCullough. Bryson highlighted the President’s call for new energy economy and the Department of Commerce’s support for manufacturers. To compete in a global economy, U.S. businesses need to build it here and sell it everywhere, which is why Secretary Bryson has agreed to co-chair the national office for the Advanced Manufacturing Partnership. He is also relentlessly advocating for increasing America’s exports and investment in America’s companies, workers and ideas.