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FACT SHEET: Investments in secure and resilient supply chains will grow Michigan businesses, create jobs, and expand opportunity.

FOR IMMEDIATE RELEASE

Deputy Secretary of Commerce Don Graves traveled to Detroit, Michigan, today to support swift passage of the Bipartisan Innovation Act currently under negotiation between the House and Senate, which will make transformational investments in U.S. innovation and job growth. The bill will also advance the competitiveness of the U.S. manufacturing industry, support Michigan’s workers, and help grow small and minority-owned suppliers. Manufacturing comprises nearly 20 percent of the state’s economy and accounts for nearly 15 percent of all jobs. Of Michigan’s 12,000 employer-manufacturers, 10,637 are small businesses. Only 491employer-manufacturers are minority-owned.

Over the past 25 years, the United States has lost 25 percent of its small- and medium-sized enterprises (SMEs) and seen a 35 percent decline in capital invested in its industrial base. These impacts have been felt in Michigan where more than 260,000 manufacturing jobs were lost between 2000 and 2020.

Since taking office last year, the Biden-Harris Administration has been laser-focused on rebuilding domestic supply chains to increase innovation, creating good-paying union jobs, and advancing our economic security. The Bipartisan Innovation Act will foster domestic semiconductor manufacturing, create more-resilient supply chains, invest in basic research and set a course for America’s innovation agenda while lowering costs for the middle class. The bill will build on the momentum of 545,000 manufacturing jobs created since President Biden took office – the largest 15-month gain since 1985 – with nearly 11,000 of those manufacturing jobs created in Michigan in 2021.

Specifically, the Bipartisan Innovation Act will:

  • Build a resilient and diversified domestic semiconductor industry. The Bipartisan Innovation Act will invest $52 billion in the domestic semiconductor industry.
    • The bill includes $2 billion for legacy chips used in critical industries including the automotive industry. Pandemic-driven disruptions in semiconductor supply chains stalled U.S. automotive manufacturing, leading to layoffs on the shop floor and higher prices for both new and used cars.
    • The bill will establish an Office of Opportunity and Inclusion within the semiconductor program to ensure grant recipients expand employment opportunity for economically disadvantaged individuals and increase supply chain participation of minority-, veteran-, and women-owned businesses.
  • Build resilient and diverse supply chains. The Bipartisan Innovation Act will establish a Supply Chain Resilience Program to map and monitor critical supply chains. This program will serve as a central node in the federal government to identify supply chain risks, work with the private sector to address vulnerabilities, and leverage private investment in domestic manufacturing of critical goods.
  • Fortify the domestic manufacturing base. The Bipartisan Innovation Act will reauthorize and expand key manufacturing programs, including the Manufacturing Extension Partnership (MEP) and Manufacturing USA (MUSA) at the Department of Commerce, growing and supporting the small- and mid-sized manufacturers that serve as the backbone of our domestic industrial base. In 2021, the MEP Center in Michigan helped create and retain 4,255 jobs and generated more than $316 million in new and retained sales.
  • Catalyze regional economic growth and development. Half the jobs in high-growth, high-wage sectors are concentrated in just 41 U.S. counties. From 2005 to 2017, 90 percent of growth in technology and innovation sectors occurred in just five U.S. metropolitan regions. The Bipartisan Innovation Act will authorize billions of dollars to invest in regional innovation and technology hubs across the country, bringing together state and local governments, institutes of higher education, labor unions, businesses, and community-based organizations to create regional partnerships to develop technology, innovation, and manufacturing sectors.
  • Translate world-class research into next-generation innovations. Public investments in research and development (R&D) lay the foundation for future breakthroughs that, over time, yield new businesses, new jobs, and more exports. The Bipartisan Innovation Act will establish a technology directorate at the National Science Foundation (NSF) to focus on fields like semiconductors and biotechnology, as well as advanced computing, communications technology, and energy technologies. In collaboration with existing programs across the government and in the private sector, NSF will accelerate innovation and bring new technologies to market to strengthen competitiveness and improve quality of life.

The Bipartisan Innovation Act builds on the Biden-Harris Administration’s industrial strategy to revitalize domestic manufacturing, create good-paying American jobs, and supercharge the industries of the future. These policies have spurred a historic recovery, resulting in 7.9 million jobs created since President Biden took office and the fastest economic growth in nearly 40 years. Since 2021, the economy has added 545,000 new manufacturing jobs. Companies are investing in America again, bringing good-paying manufacturing jobs back home.  This comprehensive domestic manufacturing revival strategy includes:

  • Convening semiconductor producers and the automotive industry to increase transparency in the supply chain. Following these convenings, Ford and Global Foundries announced a partnership to identify ways to work together to innovate on future chips. This is crucial as electric vehicles require as many as 2,000 semiconductors—dramatically more than vehicles with internal combustion engines. GM recently announced a similar partnership with seven different semiconductor producers.
  • Launching a Department of Commerce Request for Information (RFI) on the semiconductor supply chain that gave new insight into the complex and global semiconductor supply chain. The Department received more than 150 responses, including from nearly every major semiconductor producer and from companies in multiple consuming industries. Earlier this year, the Department of Commerce shared key findings from those responses, including that the median inventory of semiconductor products highlighted by buyers has fallen from 40 days in 2019 to less than 5 days in 2021.
  • Launching the Supply Chain Disruptions Task Force to address immediate supply chain crises, including working with the Ports of Los Angeles and Long Beach to reduce the backlog by nearly 60 percent.
  • Working with Congress to make permanent the Minority Business Development Agency (MBDA) with the passage of the historic Bipartisan Infrastructure Law. The MBDA plays a pivotal role in promoting the growth and competitiveness of minority-owned businesses. As a statutory agency, MBDA will now have the authorities, workforce, and resources needed to help level the playing field on behalf of minority businesses and minority entrepreneurs. MBDA is increasing investments to support Minority Business Enterprise manufacturers and to diversify the small-business supplier base.
  • Awarding over $43 million dollars through the Economic Development Agency to support the regional economy. Specifically providing $4 million to the city of Detroit to support electric-vehicle manufacturing.
  • Catalyzing tens of billions of dollars in lending and investments in small business – including small manufacturers, the Department of the Treasury will award approximately $10 billion through the State Small Business Credit Initiative (SSBCI) over the next decade. Funded under the American Rescue Plan (ARP), Michigan is eligible toreceive up to $236 million for small business financing programs, including those targeting small manufacturers in the automotive, medical device, high tech, aerospace, advanced manufacturing, and other strategic industries.
  • Implementing a broad range of Small Business Administration (SBA) initiatives that will support a diverse manufacturing and supplier base.  The SBA Office of Manufacturing Initiatives will advance policies that expand opportunities for small manufacturers to compete for a greater share of federal contracts and by developing supports to help small makers to automate, improve processes, expand capacity, export, diversify supply chains, and develop human capital strategies.  SBA’s traditional loan programs reached a record high loan volume in Fiscal Year 2021 by providing $44.8 billion through more than 61,000 loans, including $1.2 billion in lending to small businesses in Michigan, the most lending to Michigan small businesses SBA has ever provided in a single year. Additionally, SBA will also promote and prioritize licenses for Small Business Investment Companies (SBICs) committed to providing capital to domestic small-business manufacturers.  And lastly, SBA has also expanded the list of eligible industries for federal contracting set-asides for the Women-Owned Small Business Federal Contracting Program to increase women’s participation in the supply chain and federal procurement, which will greatly benefit the 57 percent of small businesses in Michigan that are owned by women. 
  • Committing to doubling the number of businesses receiving Department of Commerce export support services, prioritizing those from historically underserved communities. As part of the effort, the MEP and U.S. Export Assistance Centers are collaborating to reach more SME manufacturers. Companies that export are less likely to go bankrupt and more likely to hire workers and pay higher wages than non-exporters. The Department will aim to grow the number of unique export clients assisted in underserved communities from approximately 5,700 in FY20 to 11,500 by the end of FY23.

Launching a new Export-Import Bank (EXIM) Make More in America initiative to provide loans and loan guarantees to support manufacturers seeking to export to foreign markets. Too many American manufacturers in sectors critical to America’s national security – especially small- and medium-sized enterprises – struggle to obtain financing to compete for global sales.  To help companies make more in America – especially in sectors critical to national security – EXIM will make available the agency’s existing medium- and long-term loans and loan guarantees to export-oriented domestic manufacturing projects.  This new program will be open to all sectors, with financing priority available to environmentally beneficial projects, small businesses, and transformational export area transactions, including semiconductors, biotech and biomedical products, renewable energy, and energy storage. The Make More in America program will help revitalize American manufacturing, improve the resiliency of our supply chains, and level the playing field for American companies competing in overseas markets.