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BEA Stats Offer Interesting Nuggets about U.S. Factories in Recognition of Manufacturing Day

BEA Stats Offer Interesting Nuggets about U.S. Factories in Recognition of Manufacturing Day

Today is Manufacturing Day and that’s the perfect time to brush up on your factory factoids. Here are some data nuggets produced by the Bureau of Economic Analysis that might surprise you:

The first two facts come from BEA’s GDP by industry data, which are now available on a quarterly basis. The next installment comes out Nov. 13. The third one comes from BEA’s GDP accounts. And, data on exports of manufactured goods can be found in the monthly trade report produced jointly by BEA and the U.S. Census Bureau.  

Want to know where manufacturing plays the biggest role in state and regional economies? You can rely on BEA data to answer that question.   

In 2013, Indiana ranked highest in the concentration of manufacturing, followed by Oregon, Louisiana, and North Carolina. According to the BEA’s GDP by metropolitan area data released Sept. 16, the Elkhart-Goshen, Indiana and Kokomo, Indiana metro areas had the highest manufacturing concentration in the nation, followed by the Lake Charles, Louisiana metro area.

Providing businesses and individuals with the statistics they need to compete in the global marketplace is one way that BEA is helping to unleash the power of data for American businesses. The Commerce Department’s ‘Open for Business Agenda’ prioritizes unleashing more data and making it more accessible so it can catalyze the emergence of new businesses, products, and services. Data from the Commerce Department, America’s data agency, enable start-ups, move markets, and power both small and multi-billion dollar companies. 

Resources to Help Manufacturers Understand Export Controls

On October 3, on Manufacturing Day, American manufacturers will be celebrated for the contributions they make toward U.S. job creation, innovation and a strong, competitive U.S. economy.  With the recent creation of more than 700,000 new manufacturing jobs, the increased growth rate experienced by the U.S. manufacturing sector is almost twice the rate of growth in the overall economy.  To accelerate this growth even more, manufacturers may sell their products in international markets, which comprise two-thirds of the world’s purchasing power.

Many commodities and technologies manufactured in and exported from the United States are used only for commercial purposes, but some also have military applications.  Items with recognized civilian and military applications include, for example, numerically controlled machine tools, advanced electronics, and high-performance computers.  The Commerce Department’s Bureau of Industry and Security (BIS) licenses the export of such commodities, as well as related software and technology.  BIS administers export control laws and regulations to strengthen U.S. national security and foreign policy objectives, such as preventing the spread of weapons of mass destruction. 

Currently, BIS is at the forefront of changes to the U.S. export control system related to the Administration’s Export Control Reform initiative.  A key element of the reform is moving tens of thousands of items—mostly parts and components—from the State Department’s jurisdiction to the Commerce Department, which will provide greater flexibility for U.S. companies to engage in export trade.      

On the BIS website, there are several resources to help manufacturers and exporters understand the licensing system, changes under Export Control Reform, and how to set up effective compliance safeguards.  Here are a few resources to help manufacturers export your items:

Secretary Pritzker and CEOs from the President’s Export Council Explore Market Opportunities with Turkish Business Leaders

Secretary Pritzker and CEOs from the President’s Export Council Explore Market Opportunities with Turkish Business Leaders
After a productive stop in Poland, Secretary Pritzker traveled to Turkey with CEOs from the President’s Export Council (PEC) to explore opportunities for U.S. firms interested in the market and address outstanding challenges to expanding bilateral trade and investment. 
 
While the United States and Turkey have sustained deep strategic and diplomatic ties for decades, both countries want to expand their economic and commercial relationship. In 2009, President Obama visited Turkey and established the Framework for Strategic Economic and Commercial Cooperation (FSECC) with then-Prime Minister of Turkey Tayyip Erdogan. The two leaders tasked the U.S. and Turkish governments to create a framework to help substantially increase the trade and investment flows between both countries to help strengthen the economic dimension of our partnership. Now, Secretary Pritzker and the PEC CEOs -- serving as commercial ambassadors -- are working to expand and strengthen this relationship through meetings with Turkish government and business leaders in Istanbul and Ankara.
 
In Istanbul, Secretary Pritzker delivered remarks to more than 200 Turkish business leaders and guests at the AmCham/American Business Forum in Turkey (ABFT) 10th Anniversary gala. She noted that progress has been made in the U.S.-Turkey commercial relationship, with total bilateral trade in 2013 just under $20 billion.  

She also stressed three challenges U.S. businesses face in the Turkish market that must be addressed: greater transparency in government procurement; commercial offsets – a policy that forces companies to produce locally; and the ability to obtain Good Manufacturing Practices certification. Ilker Ayci, President of Turkey’s Investment Promotion Agency, also shared Secretary Pritzker’s sentiment that the United States and Turkey must work together now to address current obstacles.

Oct. 3, Manufacturing is in the Neighborhood

Oct. 3, Manufacturing is in the Neighborhood

Guest blog post by Mark Schmit and Zara Brunner, National Institute of Standards and Technology

The first Friday of the month might not normally stand out, but the first Friday of October is a very big deal to us at the Hollings Manufacturing Extension Partnership (NIST MEP) program. Every day we help small and mid-size manufactures innovate and grow, but tomorrow we help them celebrate Manufacturing Day (MFG Day).

On MFG Day, the public gets the chance to see what modern manufacturing is all about and we’re hoping you’ll join us at one of more than 1,500 open houses, factory tours, job fairs and other events across the country. There’s a good chance there’s something exciting happening not far from your own neighborhood.

Manufacturing plays an important role in our economy at both the national and local levels. It’s responsible for 12.5 percent of the country’s gross domestic product and every day, more than 16 million of our neighbors go to work in manufacturing. Many of them have been hard at work for months planning MFG Day activities with their companies, local MEP centers and communities.

MFG Day reflects the diversity of manufacturing. Manufacturers are hosting events in fields as ranging from consumables, textiles, cosmetics, optics, electronics, aerospace, energy, robotics, to nanotechnology and more. Visitors will learn how they make everything from ukuleles, jeans and jewelry, motorcycles, and airplanes, to one million cookies an hour.

Why the National Network for Manufacturing Innovation?

Why the National Network for Manufacturing Innovation?

Guest blog post by Barb Ewing, Chief Operating Officer for the Youngstown Business Incubator, and Scott Deutsch, Manager, Communications & Special Programs for the National Center for Defense Manufacturing and Machining

Youngstown Business Incubator is home to the National Additive Manufacturing Innovation Institute (“America Makes”), the pilot program for the President’s National Network for Manufacturing Innovation.

Too often, when we think about manufacturing, we think of large, multi-national corporations that once dominated the economic landscape.  However, as corporations continue to downsize and revamp operations, Small to Mid-sized enterprises (SMEs) are increasingly becoming the life blood of the nation’s manufacturing economy.

Large companies generally have the extra resources – both human and financial -to assume the risks associated with adopting new technologies. They view these investments as critical to becoming more efficient and flexible on a global scale. While the leadership at smaller firms may also recognize the potential benefits, limited technical expertise in house, challenges with their workforce and small (or nonexistent) capital budgets make it more difficult for SMEs to make those same kind of investments.

That’s where the National Network of Manufacturing Innovation (NNMI) can come into play. The NNMI are public private partnerships aimed at accelerating the development and adoption of cutting-edge manufacturing technologies for making new, globally competitive products.  Each institute in the network is an exciting new collaboration space for industry and academia to speed up innovation.  They are positioned to “bridge the gap” between basic research and industry needs.  The focus is to de-risk and scale up new materials and processes to solve the priority problems of industry.

Census Bureau Completes Release of All 364 Manufacturing Reports from Economic Census Industry Series

Census Bureau Completes Release of All 364 Manufacturing Reports from Economic Census Industry Series

In recognition of Manufacturing Day on October 3, the Census Bureau presents descriptions of its wide array of data products on the manufacturing sector of the economy. Additionally, statistics on all 364 industries in the manufacturing sector are now available from the 2012 Economic Census.

  • 2012 Economic Census Industry Series: A complete series of national-level data files on specific manufacturing industries, including, for instance, the number of establishments, payroll, number of employees, value of product shipments and services provided by businesses. News releases are available highlighting breweriesautomobile manufacturing, household appliance manufacturing andsemiconductor manufacturing. The economic census is conducted every five years.
  • 2012 County Business Patterns: Provides the only detailed annual information on the number of establishments, employees and payroll for nearly 1,200 industries at the national, state and county levels. This data set includes statistics for all manufacturing industries. Latest data were released in May.
  • Annual Survey of Manufactures: Includes three data sets: statistics for industry groups and industries, value of product shipments and geographic area statistics. Collected annually, except in years ending in 2 and 7, at which time these statistics are included in the manufacturing sector of the economic census.
  • Survey of Plant Capacity Utilization: Provides quarterly statistics on the rates of capacity utilization for the U.S. manufacturing and publishing sectors. Data for the second quarter 2014 now available.

Public-Private Partnerships: A Key Enabler for American Manufacturing Innovation

Steve Betza, Director of Advanced Manufacturing and Development at Lockheed Martin

Guest blog post by Steve Betza, Director of Advanced Manufacturing and Development at Lockheed Martin.

Headquartered in Bethesda, Md., Lockheed Martin is a global security and aerospace company that employs about 113,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

 

As we celebrate this year’s Manufacturing Day, Lockheed Martin is hosting hundreds of students, community leaders and government officials at facilities across the country, with the goal of inspiring our next generation of manufacturing leaders. We envision an exciting future for U.S. manufacturing – a future built upon a strong foundation of public-private partnerships.

At Lockheed Martin, we are breaking new ground in additive manufacturing, advanced materials, digital manufacturing and next-generation electronics. We produced the first additively manufactured parts to fly in space onboard NASA’s Juno spacecraft – currently on its way to Jupiter. We are launching new STEM and workforce development initiatives, conducting high-impact research, and publicly communicating the importance of manufacturing and job creation to the U.S. economy.

While these are promising steps, it’s important that government, industry and academia come together early and often to accelerate manufacturing innovation. As a nation, we need to successfully transition new technologies from the laboratory to production, and then bring them to the marketplace – both domestic and global. We believe that the National Network for Manufacturing Innovation (NNMI) has the potential to transform U.S. manufacturing on a grand scale. For this reason, we are active or committed Tier 1 members at all four Institutes for Manufacturing Innovation (IMIs) launched to date.

New tool shows manufacturing in America carries huge potential savings; a reshoring success “toy story”

New tool shows manufacturing in America carries huge potential savings; a reshoring success “toy story”

Guest blog by Dr. Sue Helper, Chief Economist, Economics and Statistics Administration

This week, as we celebrate the country’s vital manufacturing sector, we are excited to unveil a new tool that will allow manufacturers to calculate potentially significant savings that can be realized by manufacturing in America.

With the first iteration of Assess Costs Everywhere (ACE), we assisted manufacturers in deciding where to locate their operations by examining 10 cost and risk factors they should consider.  This week, we present “the Cost Differential Frontier,” or CDF, as part of ACE 2.0.  Developed by economists at the University of Lausanne, this calculator serves as a framework to consider total inventory costs and risks. 

ACE 1.0 examined factors such as labor; trade financing and regulatory compliance costs; product quality; shipping; travel and oversight; inventory; intellectual property; political/security risks; and other inputs to gain a better understanding about the sometimes hidden costs associated with manufacturing location decisions. Great work is underway to further our understanding of the financial implications of these factors.  Applying CDF, businesses for the first time can quantify potential savings that would be derived from reducing lead time, in conjunction with other factors. 

Because customer demand often fluctuates unexpectedly, companies should carefully consider the value of a domestic supply chain with shorter lead times.  Using offshore suppliers increases the time between order and delivery, often by months. As a result, the buyer must place the order based on a forecast.  As the lead time gets longer, the range of demand levels that must be considered becomes wider.  These fluctuations lead to costly stock-outs or overstocks.  The savings from offshoring may need to be large (20 percent or more) to compensate for these mismatch costs between supply and demand. Applying CDF, manufacturers can calculate exactly how the long supply chains and uncertainty add large hidden costs to production.

Moreover, real-life examples such as the successful reshoring story of U.S. toy manufacturer K’NEX demonstrate that the promise of ACE is more than just theoretical. Indeed, with ACE and CDF, a truly compelling case for reshoring is emerging.

U.S. Commerce Secretary Prizker Co-Chairs Economic and Commercial Dialogue with Poland’s Deputy Prime Minister Piechocinski

U.S. Commerce Secretary Prizker Co-Chairs Economic and Commercial Dialogue with Poland’s Deputy Prime Minister Piechocinski

Yesterday, U.S. Secretary of Commerce Penny Pritzker joined Polish Deputy Prime Minister and Minister of Economy Janusz Piechociński in co-chairing an Executive Session of the Economic and Commercial Dialogue (ECD). The ECD is a forum created by the U.S. Department of Commerce and the Polish Ministry of Economy to work specifically on strengthening the ability of our companies and investors to do business in each other's markets. Secretary Pritzker is traveling with a delegation of some of America's top CEOs who are members of the President's Export Council.            

At yesterday's meeting, Secretary Pritzker and the PEC CEOs addressed collaborative and tangible ways to increase trade and investment between the U.S. and Poland, particularly as Poland's economy continues to grow. Poland currently has the sixth-largest and one of the fastest growing economies in the EU, and growth is projected to continue in 2014. While bilateral trade between the U.S. and Poland has quadrupled over the past 10 years, reaching nearly $8.8 billion in 2013, there is tremendous opportunity for continued growth.

One mechanism to increase trade and investment between the U.S. and Poland is the Transatlantic Trade and Investment Partnership (TTIP), which is currently being negotiated between the United States and the EU. Once concluded, TTIP will combine the U.S. and EU markets into a stronger transatlantic marketplace, with more than 800 million customers. The U.S. considers Poland an important voice in TTIP negotiations.

Secretary Pritzker Hosts Innovation Roundtable with Polish Industry Leaders and Startups

Secretary Pritzker Hosts Innovation Roundtable with Polish Industry Leaders and Startups
U.S. Secretary of Commerce Penny Pritzker and a delegation of U.S. CEOs yesterday met with Poland's Minister of Higher Education and Science and a group of Polish innovators to discuss the country's efforts to encourage innovation in their economy. Secretary Pritzker was in Warsaw with a group of U.S. CEOs who are members of the President's Export Council. 
 
The Polish government has made the promotion of innovation a top priority. Poland will be receiving a total of $106 billion in funds from the European Union by 2020. Poland plans to invest about 70 percent of those funds to promote innovation. The United States is well-positioned to serve as a partner in these efforts by sharing best practices and engaging our private sector leaders in Poland to further promote innovation.
 
The discussion centered on obstacles that individuals and businesses are experiencing when it comes to innovation, and how the United States can serve as a partner in support of innovation in Poland. For example, while a strong commitment to R&D is one principal driver of innovation, Poland’s current spending on R&D is less than 1 percent of GDP.  
 
However, R&D is only one component of a strong innovation economy. The Department of Commerce is America's "innovation agency," and helps build an innovation ecosystem in the United States by supporting a strong patent system, making investments in regional business incubators and science parks, expanding access to broadband and developing technology standards.