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Blog Category: Bureau of Economic Analysis

United States Department of Commerce Plan for Orderly Shutdown Due to Lapse of Congressional Appropriations

Annual funding for the government expired on September 30. The Administration strongly believed that a lapse in funding should not occur. The Department is prepared for a lapse in funding that would necessitate a significant reduction in operations. Prior to a potential lapse in funding, the Office of Management and Budget (OMB) required the Department to submit a draft plan for agency operations (PDF) in the absence of appropriations (a “shutdown plan”).

The plan may be modified with additional guidance from the Office of Personnel Management and OMB, and may be changed by the Department, as circumstances warrant. This plan (PDF) complies with the guidance provided by the Office of Management and Budget, the Department of Justice and the Department of Commerce. All employees who are Presidentially Appointed, Senate Confirmed will remain on duty.

In compliance with the restrictions of the Anti-Deficiency Act, the Department of Commerce will maintain the following services and activities during a lapse in FY14 appropriations:

• Weather, water, and climate observing, prediction, forecast, warning, and support
• Law enforcement activities for the protection of marine fisheries
• Fisheries management activities including quota monitoring, observer activities, and regulatory actions to prevent overfishing
• Essential natural resource damage assessment activities associated with the Deepwater Horizon incident
• Water level data for ships entering U.S. ports, critical nautical chart updates and accurate position information.
• Patent and trademark application processing
• Operation of the national timing and synchronization infrastructure as well as the National Vulnerability Database
• Maintenance, continuity and protection of certain research property and critical data records
• All services of the National Technical Information Service
• Export enforcement – the ongoing conduct of criminal investigations, and prosecutions, and coordination with other law enforcement and intelligence agencies in furtherance of our national security
• Budget operations required to support excepted activities under a shutdown, such as tracking of obligations and funds control.

The following services and activities will not be available during a lapse in FY14 appropriations:

• Most research activities at NIST and NOAA (excluding real-time regular models on research computers used for Hurricane and FAA flight planning)
• Assistance and support to recipients of grant funding
• Technical oversight of non-mission essential contracts
• Services and activities provided by:
−Bureau of Economic Analysis
−Economic Development Administration
−Economics and Statistics Administration
−Minority Business Development Agency
−Bureau of the Census
• Most services and activities provided by the International Trade Administration

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.

Proposed Cuts Hurt Job Creation, Economy, and the Middle-Class

The President has been clear that Republicans in Congress should work with Democrats to finish a budget that cuts wasteful spending while investing in jobs, the economy, and middle class families. Until Congress reaches a budget agreement, the President will not sign individual appropriations bills that simply attempt to enact the House Republican budget into law. That would hurt our economy and make draconian cuts to middle class priorities.

The House Commerce, Justice, Science appropriations bill demonstrates just how damaging the overall spending limits imposed by House Republican leadership are. The bill would cut $1 billion from the President’s request for the Department of Commerce, requiring a halt to investments in areas designed to help grow the economy, create jobs, and strengthen the middle class. The bill cuts more than $70 million from the International Trade Administration, which prevents placement of Foreign Commercial Service Officers in priority markets to help U.S. companies expand exports. That cut also limits our ability to attract foreign investment.  Instead of building on the momentum of resurgent American manufacturing as the President did in this budget, the bill terminates the Advanced Manufacturing Technology Consortia, which is helping the industry identify long-term manufacturing needs, and it cuts $33 million from the President’s request for the Manufacturing Extension Partnership (MEP). The MEP program is a federal-state partnership, which consists of centers located across the country that work directly with their local manufacturing communities to strengthen the competitiveness of our nation's domestic manufacturing base.

Commerce’s Economic Data Is a Goldmine for Small Businesses

Graphic of Econmic Census

Public data is a valuable national asset whose value is multiplied when it is made easily accessible to the public. For example, the public release of weather data from government satellites and ground stations generated an entire economic sector that today includes the Weather Channel, commercial agricultural advisory services, and new insurance options. Similarly, the decision by the U.S. Government to make the Global Positioning System (GPS), once reserved for military use, available for civilian and commercial access, gave rise to GPS-powered innovations ranging from aircraft navigation systems to precision farming to location-based apps, contributing tens of billions of dollars in annual value to the American economy.

The Department of Commerce makes available to small businesses economic data that are important for key business decisions such as where to locate, where to manufacture a product and where to sell that product.

For example, AmFor Electronics, a second-generation, family-owned manufacturer in Portland, Oregon, is the market leader in the manufacturing of alternator and starter testers, which are sold to auto parts stores, auto repair shops, and alternator and starter rebuilders. Using Commerce data like that available in the Assess Costs Everywhere tool, AmFor decided to enter the wire harness sector and chose to locate their manufacturing facility domestically rather than overseas because it provides a shorter turnaround times with fewer defects that ultimately leads to a reduction in costs. These successes have translated into new customers and the hiring of 50 employees.

Digital Government Strategy Brings Big Changes to the Commerce Department

Today marks the one-year anniversary of the Digital Government Strategy, an effort by the Administration to transform public-facing government services in line with 21st century expectations. The Department of Commerce has made some big strides in providing better information to citizens in a timely manner through multiple formats and increasing access to services on mobile devices. The goal is to make citizen services and information available anywhere, anytime, and on any device, and in formats that facilitate additional use by public developers and entrepreneurs.

Technology is changing so rapidly that nearly 50% of American adults own a smart phone today, up from 35% only one year ago. To help keep pace with the rapid deployment of mobile technology, Commerce is working hard to ensure our services and data are available to citizens in whatever format and on whatever device they prefer. For example, earlier this week, NOAA released a mobile app to provide free nautical charts for recreational boaters to ensure safer and easier boating. NOAA is putting the finishing touches on the iOS version of their Shortfin Mako Shark Live Release app for public release next week. The success of these apps builds upon the America’s Economy app from the U.S. Census Bureau that already has more than 90,000 downloads.

We also have released the additional data for public consumption. For example, the International Trade Administration has released an application programming interface (API) for Export Trade Events so that data can be used by other organizations to pull the most relevant events for their members. The Department's Bureau of Industry and Security created the Commerce Control List Order of Review Decision Tool, a new web-based tool to assist exporters in understanding changes being made as part of the Administration's Export Control Reform Initiative. All information available for public use is on Data.gov and also on our new Developer page. The release of this data and APIs is intended to provide developers, researches, entrepreneurs and others with the ability to access government data in ways that make it easier to use and program.

Learn More About the Ocean and Great Lakes Economy on BEA’s New Web Portal

Tugboat

Ed. Note: This is cross-posted from the Bureau of Economic Analysis's blog. It highlights the coordination and collaboration between BEA and NOAA to bring value in data and services to the American public.

How many jobs are created from the construction of a new bridge or an increase in tourism?

The Bureau of Economic Analysis’ (BEA) new Web portal on the ocean and Great Lakes economy shows how the Bureau’s Regional Input-Output Modeling System (RIMS II) can be used to provide answers to such questions. The new Web site stems from a joint project with the Commerce Department’s National Oceanic and Atmospheric Administration.

RIMS II, a regional economic model, is used by investors, planners, and elected officials to objectively assess the returns to projects ranging from a new sports stadium to a new bridge. The returns include the short- and long-term increases in jobs and spending associated with the projects.

The idea behind the results of RIMS II is that an initial change in economic activity leads to additional changes in economic activity in other parts of an economy—for example, building a new bridge leads to increased production of concrete and steel. The increased production of concrete and steel leads to more mining. Workers benefiting from these increases may also enjoy bigger paychecks, so they may then spend more by eating out at nicer restaurants or splurging more on entertainment.

Labor Day 2012: September 3

Labor Day collage (Credit: Delaware.gov)

The first observance of Labor Day is believed to have been a parade of 10,000 workers on Sept. 5, 1882, in New York City, organized by Peter J. McGuire, a Carpenters and Joiners Union secretary. By 1893, more than half the states were observing “Labor Day” on one day or another. Congress passed a bill to establish a federal holiday in 1894. President Grover Cleveland signed the bill soon afterward, designating the first Monday in September as Labor Day.

The Department of Commerce's U.S. Census Bureau has gathered a collection of interesting statistics in its "Facts for Features" series. This edition highlights the many statistics associated with celebrating Labor Day, including:

  • 155.2 million: Number of people 16 and older in the nation’s labor force in June 2012;
  • 16.3 million: Number of commuters who left for work between midnight and 5:59 a.m. in 2010. They represent 12.5 percent of all commuters;
  • 25.3 minutes: The average time it took people in the nation to commute to work in 2010.

For more statistics, see the Labor Day Facts for Features.

Census Innovation Day: Government at the Speed of Business

Groves address the adience

Guest blog post by Robert Groves, Director of Commerce's U.S. Census Bureau

I’m blogging from the Census Bureau’s Innovation Day event. We’re highlighting for all our staff the newest tools and techniques that we’re developing to do our work more efficiently.

These are the fruits of programs that seek ideas from every staff member, from the newest to the most senior, about how to do our work for less money, to do it faster, and to complete it with higher quality. Hundreds of proposals were submitted and scores of projects are underway to introduce the new procedures. The depth of creativity within the staff rivals that of any organization.

What are we up to?

The Census Bureau produces most all information we know about the socioeconomic and demographic characteristics continuously. We also are the key supplier of information on the economy—retail sales and other service sector volume, manufacturing, foreign trade, state and local government finances, and a host of others. Almost every week, information that answers the question, “How are we doing?” is released.

Deputy Secretary Blank Advocates Public Service in Commencement Speech

Guest blog post by Commerce Deputy Secretary Rebecca M. Blank

This morning, I had the privilege of delivering the commencement address to graduate students at the University of Maryland, Baltimore County (UMBC) commencement ceremony.

I was also deeply honored to receive an honorary Doctor of Public Service degree during the ceremony for my work as a public servant, including the leadership I provided in my previous job at Commerce, overseeing the nation’s premier statistical agencies, the Census Bureau (during the 2010 Census) and the Bureau of Economic Analysis.

The commencement speech provided an opportunity to give advice to the graduate students and to encourage them to use their expertise and experience to find solutions to the pressing problems facing our world. UMBC is particularly well-known for its scientific training. Science, technology, engineering and math–STEM fields–are particularly important, and it is STEM-related research that will drive innovation in the years ahead. In fact, STEM jobs have grown three times faster than other jobs, indicating the need for more workers with these skills.

BEA in the 1940s

Graph of rise of GDP

Ed. Note: This post is part of a series following the release of the 1940 Census highlighting various Commerce agencies and their hard work on behalf of the American people during the 1940s through today.

As the U.S. population has changed dramatically since 1940, so too has the U.S. economy. Just a few years prior to the 1940 Census, in 1935, employees of the Department of Commerce and the National Bureau of Economic Research created what we call the National Income and Product Accounts (NIPA), a comprehensive set of economic accounts for the nation that provides unparalleled insight into the workings of our economy.
 
Let’s take a quick glance at the NIPAs and see how things have changed over the last 72 years. One commonly used measure of standards of living is GDP per capita—the total output of the nation divided by the population. Looking to national accounts table 7.1, we see that in 1940 U.S. GDP per capita was $8,824 in inflation-adjusted dollars. By 2011, it had increased nearly fivefold to $42,671. Over that period, the structure of the economy changed with services accounting for an ever increasing for spending. In 1940, consumer spending on services (everything from haircuts to heart surgery), according to NIPA table 1.1.10 accounted for 30 percent of GDP. By 2011, it was 47 percent—nearly half of economic activity.