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Blog Category: Insourcing

Secretary Pritzker Discusses Strategic Benefits of Reshoring at Inaugural SelectUSA Summer Forum

Secretary Pritzker speaks at the SelectUSA Summer Forum

Today, Secretary Pritzker co-hosted the first ever SelectUSA Summer Forum with U.S. Representative Frank Wolf (VA-10) at the U.S. Capitol Visitor Center. Over 200 business leaders across a multitude of industries attended the Summer Forum to discuss how bringing manufacturing and other services back to the United States – a process called “reshoring” – makes practical and economic sense.

At the SelectUSA Summer Forum, Secretary Pritzker remarked that America’s greatest strengths – its hardworking, diverse, and educated workforce, strong protection of intellectual property rights, predictable and transparent legal system, relatively low taxes, highly developed infrastructure, and access to the world's most lucrative consumer market – have led to a strong trend of reshoring and reinvestment in America. Additionally, Secretary Pritzker praised the Commerce Department’s primary vehicle for attracting job creating investment into the U.S. – SelectUSA – for its achievements in promoting, attracting, retaining, and expanding investment to and within the United States. Attendees also heard from U.S. Representative Frank Wolf, an advocate for exporting and reshoring, House Democratic Whip Steny Hoyer, and Jeff Fettig, CEO of the Whirlpool Corporation, who spoke about his company’s experiences moving jobs back to the United States and the resulting creation of jobs in the local economy.

An initiative established in 2011 by President Obama, SelectUSA acts as an advocate for business investment in the United States as well as a single point of contact for investors ready and looking to create jobs and establish production in America. Since its inception just two years ago, SelectUSA has facilitated over $18 billion in new investments for the United States and serviced over 1,000 potential investors this past year alone, bolstering America’s long-standing position as the world’s largest recipient of foreign direct investment.

ACE Tool Helps U.S. Businesses Fully Assess the Advantages of Manufacturing and Sourcing In America

Assess Costs Everywhere Logo

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

I have the pleasure of meeting frequently with business owners from across the country.  They talk about where their challenges are in growing and sustaining their businesses, and they also talk about how locating production abroad hasn’t always turned out as well as they had hoped.  Not surprisingly, during our current economic recovery and expansion, news reports and private consultants have repeatedly echoed that thinking.  Increasingly we hear that U.S. companies that previously took their operations or supply chains overseas are now reshoring or insourcing─bringing operations and supply chains back home to America.

To help continue that momentum, the Department of Commerce today published a new tool to help inform manufacturing firms’ location decisions.  The Assess Costs Everywhere (ACE) tool outlines the wide range of costs and risks associated with offshore production, and provides links to important public and private resources, so that firms can more accurately assess the total cost of operating overseas.  ACE also shares case studies of firms that reversed their decisions to locate offshore once the full range of costs became clear.

ACE counts as its sponsor and most ardent champion, U.S. Representative Frank R. Wolf (R-VA), who directed the Department of Commerce to build an online tool for businesses to use in assessing hidden costs to manufacturing offshore. Congressman Wolf saw ACE as a much-needed resource in the federal government’s efforts to help achieve our goals of boosting U.S. economic growth and ensuring that America remains competitive in manufacturing. 

ACE identifies and discusses 10 cost and risk factors that firms should weigh in their decision making, such as labor and shipping costs.   Although some of these factors may seem obvious, companies may not always take all of them into full account.  Over the coming weeks, the Commerce Department’s blog will examine each of the areas, and although I hate to be a spoiler, it does turn out that the United States tends to compare quite favorably.  Having said that, there are many areas in which the U.S. needs to make critical investments.  The Competitiveness and Innovative Capacity of the United States, a report  published by the Commerce Department’s Economic and Statistics Administration in January 2012, examined three key components of our nation’s competitiveness—research, education, and infrastructure.  The report concludes that in the manufacturing sector, the federal government has historically played an important role in providing a level playing field and must do so with renewed vigor to ensure that U.S. manufacturing continues to thrive.

Acting Secretary Blank Speaks With Council of Foreign Relations on Increasing the Level of Business Investment in the U.S.

Acting U.S. Commerce Secretary Rebecca Blank Answers Questions After Her Remarks at the Council on Foreign Relations

This afternoon, Acting U.S. Commerce Secretary Rebecca Blank spoke before the Council on Foreign Relations about the Obama administration's initiatives to help businesses expand their investment in the United States and bring jobs back home. The Commerce Department works to attract investment across all sectors, but in her remarks Blank focused on manufacturing because that sector has added more than half-a-million new jobs since 2009, compared to the previous decade in which six million manufacturing jobs were lost. In addition after decades of watching American companies take jobs to other countries, more and more manufacturers are making the decision to keep factories and production facilities here in the United States and are bringing jobs back to the U.S. from overseas through insourcing.

Blank mentioned that the renewal of the manufacturing sector is driven by America’s quality infrastructure, skilled labor, and advanced research and innovation that are critical for manufacturers to thrive. Business leaders list a number of reasons why the U.S. looks so attractive to them right now, including the fact that domestic energy production is lowering the cost of oil and natural gas needed in manufacturing. A second reason for investing in the U.S. is a competitive edge in labor productivity. America’s manufacturing workers now produce about nine percent more each hour than they did in 2008.

Blank noted that the list of reasons that CEOs give for investing here is longer still. America has a strong rule of law and a good regulatory environment. Additionally, the U.S. has the strongest level of intellectual property protection–and our patent system is only getting better due to the 2011 passage and implementation of the America Invents Act. America has the best universities in the world, producing graduates that drive entrepreneurship and feed innovation into our private sector.

U.S. Patent and Trademark Office Promotes Innovation in Maine

PTO Director David Kappos addresses the Penobscot Bay Regional Chamber of Commerce in Rockport, Maine

Innovation is thriving in Maine, and the U.S. Patent and Trademark Office (USPTO), the Department of Commerce, and the administration are working hard to further foster that environment, Under Secretary of Commerce and USPTO Director David Kappos told the Regional Chamber of Commerce of Penobscot Bay, Maine, on Tuesday.

From 2009 to 2010, the number of patent filings in the Portland, Maine, region nearly doubled, Kappos said. “We’re doing a lot to ensure that creative ideas and groundbreaking innovations, born right here in Maine, can flourish, and that the American innovation system is one that’s built to last.”

Barriers to innovation are being reduced, Kappos said, in part through the Startup America initiative, which includes investment funds, mentoring networks for entrepreneurs, tax breaks for small businesses, and the Department of Commerce’s i6 Green Challenge. That program rewards communities that develop and embrace cutting-edge ideas in green technology development and implementation.

Kappos also highlighted promoting insourcing of U.S. jobs through robust protections of our intellectual property abroad.

Acting Secretary Rebecca Blank’s Trip to St. Louis Highlights American Manufacturing, Insourcing and Exports

Acting Secretary Blank continued her trip through Missouri today. She traveled to St. Louis to attend a roundtable breakfast with business owners from a range of industries hosted by Helix Center Biotech Incubator, an innovation facility owned and operated by the St. Louis County Economic Council. She was joined by St. Louis Mayor Francis Slay and St. Louis County Executive Charley Dooley.

Acting Secretary Blank wrapped up her trip with a visit to Wilco Molding, Inc. a third-generation family-owned custom plastic injection molder as well as a tool and mold machine shop. There, Dr. Blank was joined by Wilco’s President, Kim Williams, along with Denny Coleman, President & CEO of St. Louis County Economic Council, and Tom Dustman, Director of International Sales for Sunnen Products. Acting Secretary Blank reiterated President Obama’s commitment to support manufacturing, to promote U.S. exports, and to encourage American businesses to bring jobs back or to expand operations in America—also known as insourcing She also discussed the importance of building on America’s insourcing trend by bringing more jobs back to states like Missouri. She also highlighted President Obama’s plan, released today, to extend the middle class tax cuts for families making under $250,000. In Missouri, this would help approximately 2.1 million families by preventing a tax increase of about $2,200 for the typical family of four.

During her visits to Missouri manufacturers, Acting Secretary Blank discussed Administration efforts to create good jobs by investing in American manufacturing. The President continues to press Congress to pass legislation that rewards businesses who hire American workers and eliminates tax incentives for companies to ship jobs overseas. The Commerce Department also continues to support the resurgence of American manufacturing and ongoing efforts to provide U.S. companies with the tools and resources they need to sell their products and services in the global marketplace.

Secretary Bryson Encourages State Governors to Use SelectUSA and Attend SelectUSA Investment Summit

SelectUSA logo

Prior to President Obama attending the Democratic Governors Association Meeting, Secretary John Bryson addressed the assembled governors to discuss how the Commerce Department is working across the federal government to make every federal tool available to promote “insourcing” by U.S. companies and to attract more foreign direct investment.

Secretary Bryson reiterated the key advantages America has over foreign competitors. For example, the American workforce is among the most productive in the world. He also discussed how America continues to have the best universities, the strongest sources of R&D and manufacturing innovation, excellent supply chains, and the strongest IP protections.  He also noted that foreign direct investment rose nearly 50 percent from 2009 to 2010.

Bryson then emphasized that through SelectUSA, the Commerce Department wants to partner with more states to attract even more foreign direct investment to the U.S. SelectUSA is the first coordinated federal effort to aggressively pursue and win new business investments in the U.S. It will help investors navigate our rules and procedures and will help advocate for the U.S. when foreign businesses are deciding where to put their next facility and create jobs.

SelectUSA is already working with some city and state economic development organizations to produce results. Bryson personally invited the governors and their top economic officials to attend the 1st annual SelectUSA Investment Summit later this year. The Commerce Department will assemble companies from around the world and it will provide an excellent opportunity for states to explain why they are the best place to invest and to hire.

President Obama Announces First Annual SelectUSA Investment Summit

SelectUSA logo

Today President Obama visited Master Lock in Milwaukee, Wisconsin and announced that the Department of Commerce will host the first annual SelectUSA Investment Summit, bringing companies from around the world to meet with governors, mayors and local stakeholders, federal agencies, and state and local economic development organizations together to discuss the benefits of investing and growing in the U.S. The Summit will build on the Administration’s efforts to promote investment in the U.S. by providing an annual forum to attract and expand U.S. investment and address questions and issues that companies face when they choose where to invest globally.

Launched by Executive Order in June 2011, the Department of Commerce’s SelectUSA program is the first-ever federal effort to help attract, retain, and expand business investment.  Historically, U.S. states and cities have found themselves competing against foreign governments to attract business investments, with the federal government playing only a nominal role in the competition for global investment.  Rather than providing new incentives for investment, SelectUSA plays the critical role of advocacy, coordination, facilitation, and information-gathering and –sharing.
 
The program has already paid dividends for American workers.  Working hand-in-hand with SelectUSA officials, the Michigan Economic Development Corporation, and other local Michigan agencies, Canadian automotive company AGS Automotive recently elected to make an investment in excess of $20 million to add new manufacturing capabilities to permit it to manufacture bumper impact assemblies in Michigan.  The new business will likely represent in excess of $100 million in annual sales over the next 5 years and will enable AGS to retain approximately 50 jobs and create over 100 new jobs in Michigan.