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Blog Category: Manufacturing

Europe Travel Log: Secretary Bryson Takes Key Meetings in Dusseldorf and Visits Training Facility in Berlin, Germany

Consul General Janice G. Weiner; Commerce Secretary John Bryson; NRW Economics Minister Harry K. Voigtsberger; U.S. Ambassador to Germany, Philip D. Murphy.

Following his visit to Paris, France earlier this week, U.S. Commerce Secretary John Bryson visited Dusseldorf, Germany on Wednesday, before taking off for Berlin. Secretary Bryson is in Europe this week to meet with government and business leaders, reaffirm the United States’ commitment to lowering trade barriers, and encourage European businesses to invest in the U.S.

In the morning, Secretary Bryson led a roundtable discussion with key members of the U.S. and German business community, including representatives from UPS, FedEx, and the American Chamber of Commerce, among others, as well as the Economics Minister of North Rhine Westphalia. The group discussed successes and challenges in trade and investment, as well as opportunities for continued cooperation and public-private partnerships, such as the Commerce Department partnerships with FedEx and UPS, to promote exports and build greater awareness of Commerce programs and initiatives to help small businesses. Secretary Bryson took the opportunity to encourage further German investment in the United States, highlighting the attractiveness of the investment climate and resources for potential investors, including SelectUSA, the first coordinated effort by the U.S. government to attract new business investments to America.

Deputy Secretary Blank Delivers Remarks on Manufacturing at the Aspen Institute

Deputy Secretary Blank delivers remarks at the Aspen Institute (Photo: Steve Johnson, Aspen Institute)

This morning, Deputy Commerce Secretary Rebecca Blank delivered the keynote address at “Manufacturing, Innovation, and Workforce Training: What Works In Germany and The United States For Jobs and Growth,” a conference co-sponsored by the Aspen Institute, the German Center for Research and Innovation, the German Embassy, and the Representative of German Industry and Trade. Her remarks come the week before Commerce Secretary John Bryson travels to Dusseldorf and Berlin to meet with government and business leaders.

Deputy Secretary Blank noted how both America and Germany have shown strength in areas such as manufacturing and exporting. She emphasized the importance of maintaining economic growth by strengthening the U.S.-German economic relationship.

Advanced Manufacturing Gets a Boost in Conover, North Carolina

An architect’s rendering of Conover Station in Hickory, North Carolina. The new home of the Manufacturing Solutions Center is being built with help from the Economic Development Administration. (photo courtesy Conover Station)

Guest blog post by Acting Assistant Secretary of Commerce for Economic Development Matt Erskine

Speaking last week at the Massachusetts Institute of Technology, Secretary of Commerce John Bryson focused on the importance of manufacturing to boosting U.S. economic growth, job creation and exports. To see evidence of that, we need only look to the city of Conover, North Carolina, where Commerce’s Economic Development Administration (EDA) has been supporting elected officials and local private and public sector leaders—including a community college and a nonprofit manufacturing center—in their efforts to make this area a regional hub for advanced manufacturing expertise and to expand the region’s reach into international markets.

A $1.5 million EDA investment made in 2010 to the city of Conover and Catawba Valley Community College is helping build a new home at Conover Station in Hickory, North Carolina, for the Manufacturing Solutions Center (MSC) and its business incubator. The two establishments are already cultivating a new form of manufacturing, one based in smaller and smarter factories that nourish innovation. The new 30,000 square foot facility, which is being built on the premises of a former furniture manufacturing plant, will allow for the expansion of those efforts.

U.S. Commerce Secretary John Bryson Delivers Remarks to Steel Manufacturers Association

This afternoon, Commerce Secretary Bryson delivered keynote remarks at the Steel Manufacturers Association (SMA) 2012 Annual Members conference, where he discussed the importance of the steel industry and the administration’s efforts to support U.S. manufacturers.

As the Secretary said, this administration understands the importance of supporting U.S. manufacturers. When President Obama came into office, the United States was at risk of losing over one million auto industry jobs. The ripple effect on the supply chain would have been devastating, potentially eroding the U.S. manufacturing base and driving the economy from a deep recession into depression. Instead, due to the president’s leadership, the auto industry survived and is now thriving, adding more than 200,000 jobs over the last two and one-half years.

There is an inextricable link between America’s ability to produce and America’s ability to innovate, compete and create jobs. Manufacturing is responsible for 70 percent of U.S. private sector R&D, 90 percent of patents, and 60 percent of our exports. In addition, the Commerce Department released a report just last week showing that manufacturing workers earn pay and benefits about 17 percent higher than other workers.

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.

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.

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:

Manufacturers Learn Keys to Success at MEP's Manufacturing Innovation 2012

Roger Kilmer addressing Manufacturing Innovation 2012 audience

"We are finally the ‘in’ thing," said Roger Kilmer, director of National Institute of Standards and Technology's Manufacturing Extension Partnership (MEP) to the more than 800 manufacturers and industry experts gathered at the Manufacturing Innovation 2012 conference yesterday in Orlando, Fla. "Everyone from the media to the political pundits to your neighbors—they're all talking about manufacturing. It's now clear. We need to be a nation that makes things."
 
The annual conference helps manufacturers and other industry experts learn critical tools for ensuring that U.S. companies are constantly innovating and continually improving the products to compete and win in the global marketplace. The overarching theme of the meeting is, "Make it in America," and through exhibits and conference talks, attendees learned about many companies succeeding in the marketplace with U.S.-made products.
 
"We don't want to just tell you to be innovative. We want to show you how to be innovative," said Kilmer.

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: