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Blog Category: Economy

Accelerating Advanced Manufacturing in America

Cross-Posted from The White House

Blog by Secretary of Commerce Penny Pritzker and Director of the National Economic Council and Assistant to the President for Economic Policy Jeff Zients 

On Monday, we had the privilege of participating alongside the President in a meeting with his American Manufacturing Partnership (AMP) Steering Committee.

AMP -- led by its co-chairs, Dow’s Andrew Liveris and MIT’s Rafael Reif -- presented its final report with a set of new recommendations, and we discussed additional policy steps we’re taking to respond to them.

The President created AMP -- a working group of 19 leaders in industry, academia, and labor -- in June 2011 as part of his continuing effort to maintain the competitive edge on emerging technologies and invest in the future of our manufacturing sector. We’ve come a long way since then, and the policies fueled by AMP’s recommendations have been a big contributor to that progress.

When the President first launched AMP, unemployment was at 9.1 percent. We were just starting to see some fragile signs of life in the manufacturing sector after more than a decade of erosion. But not many shared our view that together we could build a foundation to revitalize American manufacturing or that manufacturing could continue to play a central role in our economy and our ability to innovate.

Contrast that picture to today. Growth has steadily strengthened and recently accelerated, with GDP rising 2.6 percent over the past year, faster than the 2.0 percent annualized pace of the preceding two years. Job growth is accelerating too. Unemployment is now down to 5.9 percent, falling 1.3 percentage points in the last year.

Our manufacturing sector is getting stronger too. After more than a decade of job losses, we’ve added more than 700,000 manufacturing jobs over nearly five straight years of job growth. Those jobs lead to others along the supply chain and in local communities. U.S. manufacturing is now growing at nearly twice the rate of the economy, the longest sustained period of outpacing the overall economy since the 1960s.

Last year, for the first time since 2001, the U.S. was ranked first in a survey of business leaders as a destination for investment, a ranking we repeated this year. In another recent study, 54 percent of American manufacturers with operations overseas reported they are considering bringing manufacturing back to the United States. 

And AMP has been central in getting us here.

Secretary Penny Pritzker Returns to Chicago for First Official Visit

Secretary Penny Pritzker Returns to Chicago for First Official Visit

U.S. Secretary of Commerce Penny Pritzker returned to Chicago yesterday, making her first visit to her hometown in her official capacity as head of the Department.
 
Speaking at an event hosted by Google and World Business Chicago, a public-private partnership that seeks to foster private sector growth and jobs through the advancement of a business-friendly environment, Secretary Pritzker delivered remarks and participated in a “fireside chat” with Chicago Tribune reporter Melissa Harris.

She focused on the Obama administration’s efforts to grow the economy and create jobs, as well as some of her top priorities going forward: the need to invest in infrastructure, help workers develop skills for 21st century jobs, reform the immigration system and support R&D and innovation.
 
As Secretary Pritzker noted, infrastructure is critical to the economy. Unfortunately, the United States has deferred trillions of dollars in infrastructure investment over the years. Under President Obama’s leadership, however, the United States has improved 350,000 miles of roads, 6,000 miles of rail, and 20,000 bridges. The Commerce Department has deployed more than 100,000 miles of broadband since 2009.

Obama Administration Awards $20.5 Million In Make It In America Challenge Grants

Secretary of Commerce Penny Pritzker, along with U.S. Secretary of Labor Thomas E. Perez, and Delta Regional Authority Federal Co-Chairman Chris Masingill, today announced the 10 winners of the Make it in America Challenge, an Obama administration initiative to accelerate job creation and encourage business investment in the United States. The 10 grantees will receive a total of $20.5 million for projects supporting regional economic development, advanced skills training, greater supply chain access and other enhancements. The programs are designed to encourage U.S. companies to keep, expand or re-shore their manufacturing operations—and jobs—in America, and to entice foreign companies to build facilities and make their products here.

The Commerce Department’s Economic Development Administration (EDA), the Labor Department’sEmployment and Training Administration (ETA), and the Delta Regional Authority (DRA) are providing funding for the winning proposals. Additionally, Commerce’s National Institute of Standards and Technology Manufacturing Extension Partnership (NIST MEP) plans to make awards in early FY2014.

“Given our competitive advantages in energy costs, research and development, labor productivity, and intellectual property protection, there is no better place to do business than the United States," said U.S. Secretary of Commerce Penny Pritzker. The Make it in America Challenge grants support innovative, regionally-based strategies that will encourage businesses to capitalize on those advantages.”  Full release

Manufacturing Award Grants Will Invite Lasting Investment for Our Communities

Guest blog post by U.S. Secretary of Commerce Penny Pritzker

This past spring, the Commerce Department launched the Investing in Manufacturing Communities Partnership (IMCP), a first-of-its-kind initiative to provide communities with the resources needed to create and implement development plans and recognize their full economic potential.

I’m so pleased to announce 26 grant award winners have been selected by the Department of Commerce. Along with our agency partners – the Department of Agriculture, the Environmental Protection Agency, and the Small Business Administration – we are awarding $7 million in grants and investments that comprise the first funding phase of the Investing in Manufacturing Communities Partnership.

The communities selected as winners by the Department of Commerce represent 17 different states. They have developed cutting-edge plans that capitalize on these communities' comparative advantages as a place to do business. These plans make investments in public goods, and encourage collaboration between multiple public and private entities to expand the area's commercial appeal to investors. In total, the first funding phase of the program provides 44 planning grants and investments.

The IMCP stemmed from the recognized need to effectively accelerate manufacturing investment in the United States. Too often, communities have relied on the practice of “smokestack chasing” to attract investment, in which communities will offer tax breaks and subsidies to attract the attention of a single firm. Economists have found this approach often yields a low return for taxpayer investment. The Obama administration seeks to encourage and assist American communities to not merely make efforts to attract individual investments but instead to transform themselves into manufacturing hubs that that draw all kinds of businesses.

Improving the Economic Measurement Toolkit: Partnerships between Businesses and Federal Statistical Agencies

Director Steve Landefeld

Businesses and federal statistical agencies have a long history of working together to produce something that is vitally important to both groups: the nation’s economic measurement toolkit.

Steve Landefeld, director of the Commerce Department’s Bureau of Economic Analysis, charted the history of this collaboration and underscored the importance of continuing that partnership during a panel session Tuesday at the National Association for Business Economics’ (NABE) annual meeting in San Francisco.

This public-private partnership has produced concrete results over the years. For example, BEA partnered with IBM to develop a new type of price index that captured the effect of changes in technology. And BEA worked with Chrysler to develop a new price index for motor vehicles.  The Chamber of Commerce has also hosted conferences that led to important changes in the way the U.S. and other countries measure their economies. NABE has served as an important forum to spur additional ideas on the measurement front.

Commerce Announces $15 Million to Boost Competitiveness of U.S. Manufacturers

U.S. Secretary of Commerce Penny Pritzker today announced $15 million in U.S. Economic Development Administration (EDA) grants to support 11 Trade Adjustment Assistance Centers (TAACs) in California, Colorado, Georgia, Illinois, Massachusetts, Michigan, Missouri, New York, Pennsylvania, Texas, and Washington that help manufacturers affected by imports adjust to increasing global competition and create jobs.

“The Obama administration is committed to providing communities with the resources they need to succeed in a global marketplace,” Secretary Pritzker said. “The grants announced today will strengthen the competitiveness of the U.S. economy by providing funding for programs that help companies make improvements in such critical areas as advanced manufacturing, engineering, marketing, quality control, information technology, and market development.”

Secretary Pritzker Completes Third Leg of National Listening Tour

Phot of Prizker touring the EC

Today, U.S. Secretary of Commerce Penny Pritzker wrapped up the third leg of her nationwide listening tour, during which she is traveling across the country to meet with businesses and thought leaders, entrepreneurs, academics and Department of Commerce employees. While in Nashville, Tenn. and Pella and Des Moines, IA, she heard from various groups and industry representatives about their priorities, concerns and ideas on how the public and private sectors can work together to strengthen the economy and create American jobs.

“Nashville, Pella, and Des Moines epitomize the entrepreneurial spirit that is driving economic development and job creation in the United States,” said Secretary Pritzker. “From leveraging the creative economy to making investments in advanced manufacturing, businesses in these states are getting it right. As I continue my listening tour over the next few weeks, I’m looking forward to hearing more from businesses and entrepreneurs about how the Department can serve as a bridge to the business community to protect, promote, inform and anticipate what America needs to be competitive and innovative in the 21st century.”

In Nashville, Secretary Pritzker visited the Entrepreneur Center, a nonprofit business incubator that helps connect entrepreneurs with investors, mentors and resources that are crucial to accelerating the launch of their startup businesses. While at the EC, Secretary Pritzker toured the facilities with its president and CEO Dr. Michael Burcham and met with facility staff and young entrepreneurs working in a wide variety of fields, and heard how funds from a grant from the Department’s Economic Development Administration enabled them to expand capacity three-fold. The secretary was also joined by the team from Commerce’s Minority Business Development Agency’s (MBDA) regional office in Memphis, and encouraged collaboration between MBDA and the entrepreneurs who work with the center.

Secretary Pritzker then headed to Iowa where she visited Jaarsma Bakery and toured operations at Vermeer Corporation in Pella. Over its 65 year history, Vermeer has grown to become competitive on a global scale, earning a Presidential award for exports, in recognition of their efforts to increase exports. Vermeer serves customers with forage, specialty excavation, environmental and underground equipment products to more effectively and responsibly work farms and ranches, improve infrastructure, and manage natural resources. She also visited Dwolla, Inc. and the Iowa State Fair.

Full release

Secretary Pritzker Speaks with Top Business Leaders on Commerce’s Work to Support American Businesses

Secretary Pritzker speaks with American business CEOs

Since taking office two weeks ago, Secretary Penny Pritzker has made it clear that engaging with the business community is a top priority.  Her commitment to this effort is evidenced by recent calls to top CEOs: Jim McNerney, President and CEO of Boeing, and Ursula Burns, CEO of Xerox Corporation.

Given her extensive experience in the private sector, Secretary Pritzker understands not only the importance of the Department establishing close ties with the business community, but more importantly what can be learned from meeting with local business leaders (both large and small companies).  It is only through these intimate conversations, that one can adequately understand and further address the issues many businesses face.

During her conversations with CEOs, Secretary Pritzker asked what their biggest challenges were and what how she, as Commerce Secretary, could help companies become more competitive both in U.S and abroad.  The Secretary also established an open line of communication, welcoming feedback from CEOs and business leaders to help her develop strategic goals and her agenda over the next few months. 

Secretary Pritzker’s outreach to the business community is just beginning.  This week marks her first trip as part of an overall listening tour. Conversations such as these are part of her overall commitment to being a strong advocate for U.S businesses to help businesses grow and create jobs to strengthen our economy. 

Exporting to Africa: The Success of the DBIA Campaign

President Obama and Senegal President Sall at press conference. Photo by White House, Pete Souza.

President Obama believes sub-Saharan Africa could be the world’s next major economic success story. That is why in June 2012, he issued the U.S. Strategy Toward Sub-Saharan Africa (PDF) to escalate the U.S. efforts to stimulate economic growth, trade, and investment in the region. One year later, the President is in Africa to highlight our success under this strategy.

A key component of the President’s strategy is the Doing Business in Africa (DBIA) Campaign, which was launched by the U.S. Department of Commerce in Johannesburg, South Africa last November. Its main objective is to bolster federal trade promotion and financing capabilities in order to help U.S. businesses obtain trade and investment opportunities. With these opportunities, the United States’ commercial relationship with Africa will continue to grow.  

Since its unveiling, Commerce has been working alongside other federal agencies to encourage U.S. companies–with a focus on small- and medium- sized businesses and African Diaspora-owned business–to trade and invest in the region. A little more than six months into the Doing Business in Africa Campaign, we wanted to share some of successes with you.

EDA Investments: Supporting Entrepreneurship and Job Creation

Map of U.S. showing entrepreneurship rates

What do the states of Montana, Vermont, New Mexico, Alaska, and Mississippi have in common? They are, according to a report published this spring by the Kauffman Foundation, Index of Entrepreneurial Activity, 1996–2012, the states that posted the highest rates of entrepreneurial activity in 2012.

According to the Kauffman Foundation report:

• Montanans operate 530 businesses per 100,000 adults, Vermonters and New Mexicans operate 520 businesses per 100,000 adults, and Alaskans and Mississippians operate 430 businesses per 100,000 adults.

• A most important measure—the formation of businesses with employees—held steady from 2011 to 2012: At 0.11 percent (meaning 11 employer businesses per 100,000 individuals), an average of 193,000 new employer businesses were formed each quarter in 2012.

This is important, and good, news about our economy. And these states should be applauded for what they are doing to foster entrepreneurship, which is a driver of economic growth and prosperity.

Support for entrepreneurship is a central part of the Economic Development Administration’s mission as it works to establish a foundation for sustainable job growth and the building of durable regional economies throughout the United States.