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Blog Category: Advanced 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.

Acting Secretary Blank Talks Administration Support for American Manufacturing

Guest blog post by Dr. Rebecca Blank, Acting Secretary of the U.S. Department of Commerce.

I just returned from the White House Business Council American Economic Competitiveness Forum on Manufacturing where I had an opportunity to hear from a group of American manufacturers—representing businesses of all sizes from across the country—about how the Obama administration can continue to support them as they build things here and sell them everywhere. As we have seen in recent months, manufacturing is one of the bright spots for our economy. Over the past two and one-half years, more than a half-million manufacturing jobs have been created in the U.S.—the strongest job growth in that sector since the 1990s. In fact, just last month, an additional 25,000 new manufacturing jobs were added.

In terms of production, manufacturing output is up 20 percent since 2009, and increased again in July. One manufacturing sector that has been consistently strong is the motor vehicles and parts industry, which has added 165,000 jobs since June 2009a sector that might not even exist in the U.S. today if not for the assistance this administration gave to the U.S. auto industry in 2009.

This matters because we know that manufacturing jobs are good jobs that pay more than average and provide greater benefits. They strengthen economic security for middle class families.

There is a powerful link between America’s ability to make things and America’s ability to innovate, compete, and create good jobs. We have come to realize that you can’t separate innovation and production—they have to sit near each other. Manufacturers perform 70 percent of all private sector R&D, investing in and producing technological advances that accounted for 90 percent of U.S. patents.  Economic research indicates that innovation—in new products or new processes—was central to three-quarters of the nation’s economic growth since World War II and it is not an accident that the manufacturing sectors where America is most competitive are all advanced manufacturing, where new technologies, new products or new production processes are central to the success of specific firms.

NIST Visit to Chicago Spotlights Manufacturing Success

On Tuesday this week, Under Secretary of Commerce for Standards and Technology and Director of the National Institute of Standards and Technology (NIST) Patrick Gallagher was in Chicago to visit two manufacturing companies to learn more about the best practices and challenges confronting U.S. manufacturers.

“Having the opportunity to hear directly from manufacturers and see their operations firsthand is invaluable to those of us working to support and increase the competitiveness of American manufacturing,” said Gallagher.

The trip was coordinated by the Illinois Manufacturing Extension Center (IMEC), the Illinois center for the NIST Manufacturing Extension Partnership (MEP) program. “NIST is a critical resource for advanced manufacturing competitiveness,” said David Boulay, president of IMEC. “We were pleased to show the director the great prospects for American manufacturing success.”

Gallagher, along with representatives from the City of Chicago including Housing and Economic Development Commissioner Andrew Mooney, toured PortionPac Corporation. The company is a sustainability-focused manufacturer of highly concentrated, pre-measured cleaning products. President Burt Klein and other company leaders got the chance to showcase their manufacturing processes. With its commitment to workforce excellence, recognized by INC. magazine’s 2010 Winning Workplace, and its values of innovation, environmental leadership and social responsibility, the company highlights the keys to success for the next generation manufacturer.

The Road to Revitalizing Anderson, Indiana’s Auto Sector

Economic Development Administration-banner

Guest blog post by Thomas Guevara, Deputy Assistant Secretary of Commerce for Economic Development and a native of Indiana

As auto communities across the country work to strengthen and redefine their economies, the Obama administration is making good on the President’s commitment to invest in American innovation and advanced manufacturing to spur growth.

In my home state of Indiana, the city of Anderson, located about 25 miles northeast of Indianapolis, was once home to one of the greatest concentrations (after Flint, Michigan) of General Motors facilities in the United States. Today, not a single one of those plants is in operation.

While this is a significant challenge, there is also opportunity. That was the focus of the Auto Community Revitalization Roundtable at the Flagship Enterprise Center that I recently attended in Anderson: to hear from communities affected by the loss of manufacturing jobs, offer practical tools, share available resources, and explore solutions for auto communities in Indiana that are on the road to revitalization. The forum was organized by the Manufacturing Alliance of Communities, the Obama administration’s Office of Recovery for Auto Communities and Workers, and the RACER Trust, which was established to clean up and redevelop closed General Motors sites.

The road to revitalization requires a change of mindset. Rather than think of the abandoned facilities and their accompanying infrastructure as a disadvantage, cities such as Anderson are finding ways to repurpose these assets for future economic growth. The built industrial environment—including manufacturing plants, warehouses, road and rail links, etc.—can be refashioned and reused to suit the needs of newer, growing industries to replace the industries that departed. These industries are not the traditional manufacturers that employed our parents, but rather are modern advanced manufacturing sites that are leading the way in global competitiveness and attracting foreign direct investment.

Secretary Bryson Discusses the Future of U.S. Manufacturing at MIT

Secretary Bryson Discusses the Future of U.S. Manufacturing at MIT

There is a powerful link between America’s ability to make things and America’s ability to innovate, compete, and create good jobs, as Secretary John Bryson said today when he spoke to CEOs, students and faculty at “The Future of Manufacturing in the U.S.” conference at the Massachusetts Institute of Technology. The Secretary took the opportunity to discuss the importance of manufacturing in boosting U.S. economic growth, job creation and exports, as part of the administration's ongoing efforts to encourage companies to build things in America and sell everywhere around the globe.

Bryson also released a new U.S. Commerce Department Economics and Statistics Administration (ESA) report titled “The Benefits of Manufacturing Jobs,” an analysis of wages and benefits of manufacturing workers, which provides fresh evidence that manufacturing jobs encourage innovation and support economic security for America’s middle class. The report finds that total hourly compensation for manufacturing workers is 17 percent higher than for non-manufacturing workers. It also shows that manufacturing jobs are becoming more skilled and heavily reliant on science, technology, engineering and math (STEM) fields, and that manufacturing is responsible for 70 percent of our private sector R&D, 90 percent of our patents, and 60 percent of our exports.

After a decade in which the United States lost many manufacturing jobs, American manufacturers have added back 489,000 jobs since January 2010—the best streak since 1995. In the first four months of 2012 alone, the U.S. manufacturing sector added 139,000 jobs. At the same time, the number of job openings in manufacturing has more than doubled.

Manufacturing: Key to an Innovation-Based Economy

Under Secretary of Commerce and NIST Director Patrick Gallagher (left) participates in panel on advanced manufacturing

Scientists, industry leaders and public officials came together this week for a dialogue on innovation at The Atlantic's “From Inspiration to Innovation Summit,” held at Ronald Reagan Washington National Airport in Arlington, Va. Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology (NIST) Director Patrick Gallagher was among the invited speakers on the panel, “Advanced Manufacturing: Made in America. . . Again?”

Responding to a question about NIST’s role in supporting manufacturing, Gallagher pointed out that the agency’s mission goes back more than 110 years. Then, and now, that mission has been to ensure that U.S. industries have the infrastructure of measurements, standards, and technology they need to be competitive in global markets, particularly manufacturing-based industries. That mission is even more important today, when so much manufacturing is tied to advanced technology, and our research and development—our ability to innovate—is deeply embedded in our manufacturing capability.

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.

Secretary Bryson Highlights Balanced Trade Growth, Promotes Exports at U.S.-China Trade Forum in Los Angeles

Secretary Bryson greets Chinese Vice President Xi Jinping prior to the U.S.-China Business Cooperation Forum.

Commerce Secretary John Bryson spoke today at the U.S.-China Economic and Trade Cooperation Forum in Los Angeles, highlighting ways the U.S. and China can cooperate to establish a level playing field, generate economic growth and create good jobs. In his remarks, he addressed the need to achieve balanced trade growth and increase U.S. exports to China.

Bryson also highlighted the progress of President Obama’s SelectUSA initiative, led by the Commerce Department, which is designed to help businesses from around the world, including China, make direct investments in the U.S. and create jobs for American workers.

Los Angeles Mayor Antonio Villaraigosa, California Governor Jerry Brown, and Under Secretary of Commerce for International Trade Francisco Sánchez also spoke. Vice President Xi Jinping of the People’s Republic of China was the keynote for the event.

The forum was part of Vice President Xi’s week-long visit to the U.S., the second of the planned reciprocal visits between the Vice Presidents announced by President Obama and Chinese President Hu Jintao during the latter’s state visit to Washington last year.

Also today, President Obama announced new steps aimed at promoting American manufacturing and increasing U.S. exports to help U.S. companies build things here and sell them everywhere.  

In case you missed it, you can read an op-ed published today by Secretary Bryson highlighting the fact that American manufacturing and exporting are showing signs of growth, and how the president and the Commerce Department are helping to build on this progress and create an economy that's built to last.

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.

Federal Government Help for Manufacturing Companies: How Commerce Contributes

US-Made Auto Parts

In last night's State of the Union address, President Obama laid out proposals for how to bring about a new era of American manufacturing, with more good jobs and more products stamped Made in the USA.  A few of the proposals are:

  • Reward companies for bringing jobs back to America.
  • Lower tax rates for companies that manufacture and create jobs in the United States.
  • Get tough on trade enforcement.
  • Create more jobs and make us more competitive by rebuilding America using half of the savings from ending foreign wars.

These proposals build upon the efforts already underway by the White House.

At the Department of Commerce, we support manufacturers in a multitude of ways: