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Blog Category: Manufacturing

Bringing and Keeping Business Investment in America

SelectUSA logo

Guest blog by Gary Locke, U.S. Secretary of Commerce. Cross-posted at the White House blog.

Business investment in America creates and supports millions of jobs, while generating economic growth and opportunities in communities throughout the United States.

Today at the Business Round Table in Washington, D.C., we announced a new initiative – SelectUSA – the first-ever government-wide program to aggressively pursue and win new business investment in the United States by both domestic and foreign companies.

America has the most appealing investment environment in the world, with the largest consumer market, an educated workforce, strong intellectual-property protections and open capital markets.

More than 5 million Americans are directly employed by foreign companies in the U.S., ranging from Japanese carmakers to British banks to Indian energy and industrial companies.

But at a time when competition for business investment is more intense than ever, the U.S. is the only developed economy in the world without a national-level investment program and advocacy program.

In recent years we have been losing ground in attracting and retaining business investment to better coordinated foreign competitors.

SelectUSA, established by Executive Order of the President, will leverage existing resources of the federal government to ramp up promotion of the U.S. as a prime investment destination to create jobs at home and to keep jobs from going overseas.

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Manufacturers Receive Presidential Award For Their Export Efforts

APS Biogroup Manufacturing Facility

Guest Blog Post by Laura Barmby, the Program Officer for the President’s "E" Awards.  In this capacity, she coordinates the submission and review of applications for this Presidential Award, working with an inter-agency committee.

Last month, Secretary of Commerce Gary Locke and Under Secretary Francisco Sánchez presented 27 U.S. companies, organizations, and institutions the President’s "E" Award for Exporting.  The "E" Award is the highest honor presented to exporters and acknowledges the significant contributions of the recipients in supporting U.S. exports.  This year marks 50 years since the establishment of the program by President Kennedy in 1961.
 
In honor of our nation’s manufacturers, I wanted to highlight for you a few of the companies that received the award this year that manufacture unique products.  What caught my attention was that this year we have three winners who took a product found in nature and improved it through a manufacturing process to make a great new product.

Here are a few things these companies have in common:

  • All take something from nature and make it into a product to support health and nutrition
  • All invest back into research and product development
  • All create jobs

Think about the jobs created by these companies:  farmers, scientists, assembly and manufacturing support, shipping, distribution, marketing.

If you have a product or service that you would like to export, visit Trade.gov to find out how to contact your nearest U.S. Export Assistance Center.  With 108 centers nationwide, exporting help is right around the corner!

Smarter Manufacturing Makes Businesses More Competitive

Sustainable Manufacturing Initiative logo

Guest blog post by Morgan Barr, an International Economist within the Manufacturing and Services division at the International Trade Administration. She works on sustainable manufacturing issues as well as negotiations for trade agreements.

The U.S. Department of Commerce’s Sustainable Manufacturing Initiative (SMI) has developed tools and resources to help companies, particularly small and medium sized enterprises, implement sustainable business practices faster and more effectively. The benefits to manufacturers include lower energy and resource costs, increased marketability of products and services and lower regulatory costs and risk.

The Sustainable Manufacturing Initiative developed a number of business friendly resources that are available through its website:

  • Sustainable Business Clearinghouse - This searchable clearinghouse provides information and links to almost 900 federal and state programs and resources dedicated to supporting sustainable business practices.  It includes everything from lean and green assessments, to training, to financial assistance for green improvements.  Users can search by government or non-governmental programs, geographic location, sustainability issue, industry sector and type of assistance.
  • OECD Sustainable Manufacturing Metrics Toolkit - This toolkit provides a simplified set of core sustainability metrics for facilities and products that any company can use to both measure performance and make decisions on improvement.
  • Sustainable Manufacturing 101 Training - This training can be used to train employees anywhere in the company from purchasing to the production line. It is designed to take users through the various aspects of the practice, from energy efficiency to designing for the environment to remanufacturing. This module is currently not available, but scheduled to be completed by October 2011 and will be available on the SMI website.

The More You Know: Key Statistics for Manufacturers and Exporters

Graphic of a spreadsheet overlaid with two charts

Economists, journalists, Wall Street executives and main street businesses as well as consumers look at a variety of economic indicators and data for information and to get a picture of how the economy is doing. The indicators above give us an idea of how our manufacturing sector is fairing in the turmoil of economic indicators that keep us on our toes every day.

Great sources for this information are right here within the Department of Commerce, through our Bureau of the Census (Business and Industry, Manufacturing) where we regularly release reports on sales, inventories, employment, job creation and capacity utilization.

Looking at today’s trade in goods and services numbers will show you a pretty good story about the state of America’s manufacturing sector. For instance, in the first four months of 2011, U.S. exports of manufacturing products increased by $56.9 billion (16.5 percent) to reach $401.4 billion up from $344.5 billion recorded in the first four months of 2010. Major growth categories by value in the first four months of 2011 include petroleum and coal products (up 66%), base chemicals (up 21%), nonferrous metal products (up 34.7%), motor vehicles (up 19%), and agricultural and construction machinery (up 25.4%).

To see where those exports are going, the International Trade Administration provides data and resources on trade statistics, including state and metro export data, profiles of exporting companies, as well as a nifty mapping tool that allows you to see the geographic reach of our exports by product or state. 

Information is golden and having the tools at your fingertips to sift through the relevant information and make sense of it yourself is a powerful advantage.

Expert Advice on Exporting from Successful Companies

As today’s trade numbers show, the appetite for American-made products abroad is growing rapidly. That’s why these five companies have made exporting part of their long-term growth strategy. They know that 95% of all consumers live outside the United States and therefore, the more markets they target, the more diversified their customer base will be. That strategy has served them well as they generally held up better during the recession than companies that didn't export.

But they also know some of the ups and downs for manufacturers just starting to export: concern about the language and cultural differences, not knowing where to start or how to make inroads into new markets, fear that foreign consumers won’t pay once the products leave the country.

And that’s why Jack Hollender, Dan Kleiman, Al Powers, Jason Speer and Terry Koehn agreed to share their experience. In the video below, each shares insight and expertise about getting started in exporting.

In addition to these wise words, the Department of Commerce’s National Export Initiative is designed to help more companies overcome these and other hurdles to exporting. To get their assistance, simply call 1-800-USA-TRADE or go online to Export.gov. Commerce Department experts will work with you to design and implement a market entry or expansion strategy, conduct an international search to find potential agents or distributors for your unique business and contact potential overseas businesses--all on your behalf. Many of these services are free or extremely low cost.

Manufacturing is Vibrant and Vital in America

Secretary of Commerce Gary Locke (center) announces the appointment of 24 members of the Manufacturing Council

Guest blog by Jennifer Pilat, Deputy Director for the Office of Advisory Committees within the International Trade Administration. She oversees the Manufacturing Council as well as a number of other private-sector advisory committees.

Superconductors and streetcars. Photovoltaic cells, cars and steel. Cardboard boxes, pharmaceuticals, linens. A vibrant manufacturing sector isn't just critical for the millions of Americans whose jobs depend on it, but is also absolutely central to driving the innovation that fuels the American economy. It is that belief that led U.S. Commerce Secretary Gary Locke to appoint the private sector members that comprise the 2010 – 2012 Manufacturing Council. 

The Manufacturing Council serves as the principal private sector advisory committee to the Secretary of Commerce on the United States manufacturing sector and advises the Secretary on matters relating to the competitiveness of the manufacturing sector, and government policies and programs that affect U.S. manufacturers.

Secretary Locke recently designated Joe Anderson, Chairman and Chief Executive Office of TAG Holdings, LLC as the Chair of the Manufacturing Council and Chandra Brown, President of United Streetcar and Vice-President of Business Development and Government Relations of Oregon Iron Works as the Council Vice-Chair. 

The next Council meeting will be held in Clackamas, Oregon at the United Streetcar facility, where members will discuss the free trade agreements with Panama and Colombia, ideas for energy policy to support manufacturing, and educating and training the workforce needed to fill today’s available manufacturing jobs and those that will drive the future of American manufacturing. You can read more about the past work of the Council, on their website: http://www.manufacturing.gov/council. 

Secretary Locke Testifies Before the Senate Committee on Commerce, Science, and Transportation About the Future of American Manufacturing

Secretary Locke testifies before the Senate about the future of American manufacturing

Secretary Locke started his testimony about the Future of American Manufacturing before the U.S. Senate Committee on Commerce, Science and Transportation by declaring, "The Obama administration believes that manufacturing is essential to America’s economic competitiveness. Manufacturing is a vital source of good middle-class jobs. And it is a key driver of innovation, with 70 percent of all private sector R&Dspending done by manufacturing companies. The United States is still the world’s largest and most productive manufacturer. On its own, U.S. manufacturing would rank today as the seventh-largest economy in the world. And just yesterday, it was reported that U.S. manufacturing activity hit its highest level since 2004.

But manufacturing productivity gains – which are so essential to growth – are partly responsible for millions of lost manufacturing jobs. Factories that once needed 1,000 people to build a product  can now do it with 100. Meanwhile, competitors abroad are consistently producing quality goods at less cost. America can’t escape this global competition. But we can win it, by leading the development of new industries and manufacturing higher value goods that the world's consumers demand.

See video

Secretary Locke Wants Your Questions on the Future of American Manufacturing

Today Secretary Locke will be testifying before the U.S. Senate Committee on Commerce, Science, and Transportation about the Future of American Manufacturing: Maintaining America's Competitive Edge.  Secretary Locke will be answering questions from Senators during the hearing, but afterwards he wants to hear from you. We invite you to watch the hearing and submit questions about manufacturing via comments on this post, Twitter (use hashtag #LockeChat) and on our Facebook page. As the Secretary’s schedule permits, he’ll answer some of the questions throughout the day.

As a primer, watch the video below. In it U.S. companies from a wide range of industries from health care to plastics talk about why they manufacture their goods in America. The United States offers a highly educated workforce, strong intellectual property protections, and a business climate that supports and encourages innovation. For ET Water, Labcon, Supracor and others, manufacturing in America just makes smart business sense.  |  Senate testimony

See video

Build It Here: American Manufacturing

During the course of our economic recovery since the end of the Great Recession in 2009, domestic manufacturing has been a star. In the past, manufacturing output and job growth have typically lagged behind the economy’s overall recovery in the United States. But this time, manufacturing has led the way.

Manufacturing activity expanded in January at its fastest pace in seven years, recording its 18th month of growth, according to the Institute for Supply Management’s January manufacturing index. As Commerce Department Chief Economist Mark Doms noted recently in his new blog, manufacturing jobs are associated with relatively high wages, hence the commonly used phrase “good jobs” in reference to those created in the industry.

In the video below, U.S. companies from a wide range of industries from health care to plastics talk about why they manufacture their goods in America. The United States offers a highly educated workforce, strong intellectual property protections, and a business climate that supports and encourages innovation. For ET Water, Labcon, Supracor and others, manufacturing in America just makes smart business sense.

See video

Secretary Locke Meets with Manufacturing Council and One Member Announces 600 New Jobs in the U.S.

Secretary Locke swears in the Manufacturing CouncilThis morning, Secretary Gary Locke met with the 24 members of the recently-appointed Manufacturing Council.

“Today’s meeting is an example of the public-private partnership needed to restore our manufacturing sector in the United States,” said Locke. “I look forward to working with the members of the Council to present President Obama with solutions to revitalize this critical sector, grow our economy and put Americans back to work.”

The Council advises the Secretary of Commerce on matters relating to the competitiveness of the manufacturing sector, and government policies and programs that affect U.S. manufacturers. The Council’s new charter increased membership from 15 to 25 members and now includes more diverse and expansive industry representation in the manufacturing sector.  The appointees represent a broad cross section of the industry and include steel, supercomputer, solar panel, medical device and superconductor manufacturers, both large and small. Their products support a diverse range of industries such as the auto, aerospace, apparel and energy efficiency sectors.