American Manufacturing is Very Productive

Today, U.S. Commerce Secretary John Bryson traveled to Cleveland, Tennessee, where he visited the Whirlpool Corporation for a ribbon cutting ceremony for their new, one-million square foot manufacturing facility. The $200 million factory is the largest premium cooking product manufacturing and distribution facility in the world, exemplifying the Secretary’s mission to help U.S. business make it here and sell it everywhere. The opening of the facility marked 100 years of Whirlpool manufacturing Made-in-America products. While in Tennessee, the Secretary also made a stop in Chattanooga to visit the Volkswagen manufacturing plant, which builds the 2012 Passat. Volkswagen recently announced that they were adding a third shift to the operation at their Chattanooga plant in response to increased consumer demand, which will create over 700 additional jobs. This development is just one more example of the continued resurgence of the American manufacturing industry. In fact, today, the Economics and Statistics Administration highlighted data showing that automakers are contributing heavily to the success of American manufacturing. The report finds that auto sales are at the highest level since the first quarter of 2008.

In last night's State of the Union address, President Obama said: "Our first priority is making America a magnet for new jobs and manufacturing." He added:

Over the past three months, Facebook, Zynga and Groupon have lost between 33% and 52% of their market value. They are not alone. Other social networking, online marketing, clean-tech and bio-tech companies have fallen out of favor with some investors, fueling speculation regarding the future of the US technology sector. A growing number of skeptics are openly talking of a ‘high tech bubble’. Is the entire sector destined to a sudden and quick demise, similar to the dot-com bust of 2001, with widespread stock market collapses and mass layoffs?  

Guest blog post by Dr. Rebecca Blank, Acting Secretary of the U.S. Department of Commerce.I just returned from the White House Business Council American Economic Competitiveness Forum on Manufacturing where I had an opportunity to hear from a group of American manufacturers—representing businesses of all sizes from across the country—about how the Obama Administration can continue to support them as they build things here and sell them everywhere. As we have seen in recent months, manufacturing is one of the bright spots for our economy. Over the past 2 ½ years, more than half-a-million manufacturing jobs have been created in the U.S. – the strongest job growth in that sector since the 1990s.  In fact, just last month, an additional 25,000 new manufacturing jobs were added.In terms of production, manufacturing output is up 20 percent since 2009, and increased again in July. One manufacturing sector that has been consistently strong is the motor vehicles and parts industry, which has added 165,000 jobs since June 2009— a sector that might not even exist in the US today if not for the assistance this Administration gave to the U.S. auto industry in 2009.This matters because we know that manufacturing jobs are good jobs that pay more than average and provide greater benefits. They strengthen economic security for middle class families.There is a powerful link between America’s ability to make things and America’s ability to innovate, compete, and create good jobs. We have come to realize that you can’t separate innovation and production—they have to sit near each other.  Manufacturers perform 70 percent of all private sector R&D, investing in and producing technological advances that accounted for 90 percent of U.S. patents.  Economic research indicates that innovation – in new products or new processes – was central to three-quarters of the nation’s economic growth since World War II and it is not an accident that the manufacturing sectors where America is most competitive are all advanced manufacturing, where new technologies, new products or new production processes are central to the success of specific firms.

Guest post by Suresh Kumar, Assistant Secretary for Trade and Director General of the U.S. and Foreign Commercial Service.Today, I had the opportunity to travel to West Virginia to discuss progress on President Obama’s National Export Initiative (NEI) and the promotion of U.S. manufacturing exports. As many of you might know, the NEI, announced in 2010, aims to double U.S. exports by the end of 2014. I’m glad to report that the NEI is off to a good start. Exports last year comprised 12.5 percent of GDP, up from the 11.2 percent recorded in 2009.  In West Virginia, exports of merchandise grew 34 percent in 2010 -- double the national growth rate of 17 percent for goods and services. Thus far for 2011, the U.S. remains on pace to achieve the NEI goal. The NEI is critical because we need to get more U.S. companies to export so that we can bolster our economy and support new jobs here in America. Of America’s 30 million companies, less than 1 percent export, and of those that do, 58 percent only sell to one market. The NEI helps creates deep market linkages and connects innovation to the marketplace. It also works to inform U.S. companies of their export potential, and the U.S. Government and private sector services available to help them sell internationally.  Export Assistance at Work   The International Trade Administration’s U.S. Commercial Service (CS) of the U.S. Department of Commerce operates a global network of 108 U.S. offices and locations in more than 75 countries comprising more than 1,400 trade specialists that provides U.S. business comprehensive, soup to nuts service and programs West Virginia is an excellent example of how CS counseling and collaboration with businesses and state and local governments is resulting in many export sales for U.S. companies. Last year, CS offices in West Virginia offices recorded 53 export successes totaling more than $11 million.

As I've noted repeatedly on this blog, one of the most repeated (and effective) myths trotted out by people seeking to thwart free trade through protectionism is that America's manufacturing sector is in dire shape.  For example, here's Louis Uchitelle tritely lamenting the "decline" of American manufacturing in a recent New York Times column:

Let me recommend again Ed Luce’s excellent weekend article on the crisis of the American middle class.