Today, Deputy Secretary of Commerce Bruce Andrews addressed the Manufacturing Extension Partnership (MEP) Conference about the success of this national public-private partnership in catalyzing U.S. manufacturing and evolving to better support manufacturers. The Deputy Secretary referenced his own experience at Ford to speak about the recovery in American manufacturing since the financial crisis, and particularly the recent successes of the auto industry.
At the event, Deputy Secretary Andrews highlighted the rebranding of the National Network on Manufacturing Innovation as Manufacturing USA, and announced the recipients of several new National Institute Standards and Technology (NIST) grants that will help smaller manufacturing firms contribute to technological and economic innovation. He reiterated that investing in MEP provides benefits to manufacturers of all sizes, and thanked everyone involved in the program for their efforts to encourage and support manufacturing.
Deputy Secretary Andrews praised MEP’s record of assisting exporters seeking to break into new markets, with examples of how their work has increased sales and created jobs. Across the country, these efforts have supported 68,000 jobs and $2.3 billion in new sales.
In addition, he discussed workforce training, emphasizing that the Department of Commerce is giving businesses a voice in shaping training programs that seek to reduce the skills gap and encourage more workers to enter the manufacturing industry. As part of the effort to increase interest in manufacturing, the Deputy Secretary spoke about the success of Manufacturing Day in 2015, with more than 2,600 events across the country, and previewed this year’s Manufacturing Day taking place on October 7.
Remarks as Prepared for Delivery Thank you, Carroll, for that kind introduction, and for all your hard work as Director of the NIST Manufacturing Extension Partnership. It’s great to be here with the Foundation for Manufacturing Excellence. I want to thank Board Chair John Lloyd and Executive Director Carrie Hines for their leadership. As Carroll mentioned, I used to work at Ford Motor Company. I know from my time there how essential manufacturing is to our economy.
Manufacturers helped build the American middle class and the most innovative economy ever known. And I’m not just talking about big companies like the automakers – we all know that even big companies start small. I’m talking about enterprises of every size, driving innovation in every industry, creating jobs in every corner of the country.If manufacturing is the heart of the American economy, then you – the experts and advisors with the NIST MEP – are the personal trainers and fitness coaches.
Across the country, you help firms, reduce costs and retain jobs, embrace new technology, and compete for new customers. Every day, you help real companies overcome real challenges. In doing so, you advance the Department of Commerce’s mission to create the conditions our businesses need to compete, innovate, and grow.
This conference brings us together at an exciting time for manufacturing in America. We’ve seen a resurgence in this sector that no one could have predicted back in 2009, when we were losing 800,000 jobs a month. Having spent that perilous time at Ford, I remember how tough it was. It took aggressive stimulus measures, the restructuring of the auto industry, and extraordinary leadership throughout the Obama Administration to get our economy growing again. Today, we are in a much stronger place.
Manufacturers have created more than 840,000 new jobs since 2010, and are looking to fill another 350,000 openings. The resurgence of American manufacturing is real, even as forces like digitization and globalization present us with new challenges. Our task is not only to sustain our resurgence, but to build resilience and to embrace reinvention. No one is more suited to prepare America’s manufacturers to succeed in the 21st century than the MEP - and that’s what I want to discuss with you today.
In today’s global economy, our manufacturers have more opportunities to reach more customers than ever before. Yet that means when economic conditions deteriorate abroad, we feel it here at home. In 2015, a strong dollar and weaker demand overseas led to fewer orders, smaller inventories, and less productivity. We must build a more efficient, more resilient manufacturing sector, or risk letting global headwinds erase hard-won gains. We must help firms reduce costs, reach more customers, and deliver the best products - especially the small and medium-sized enterprises so essential to our economy. They comprise 98 percent of our manufacturing sector and employ nearly three-quarters of our manufacturing workforce. Yet they often lack the resources needed to break into new markets, invest in new training, or upgrade technology.
That’s where the NIST MEP comes in. YOU are on the front lines. You meet face-to-face with companies. You learn about their challenges. And you create customized solutions that overcome challenges. MEP’s record speaks for itself. Take for example Coyote Design, a small manufacturer of low-cost prosthetics in Boise, Idaho. When the firm began getting inquiries from overseas, they reached out to the MEP team at Idaho Tech-Help for assistance. Through your ExporTech program, Coyote Design was able to expand into India, Germany, and other new markets. The result? The firm increased sales by 94 percent and created 15 jobs.
Or consider your work on supply chain optimization. In today’s economy, the speed and quality of a supply chain can make-or-break a firm’s ability to compete. Last year, the White House highlighted the Virginia MEP team at GEN-EDGE for their partnership with Volvo Trucking Operations. GEN-EDGE helped Volvo lend engineering and operations staff to the area’s metal frame suppliers. This enabled local manufacturers to cut costs, accelerate production, and introduce workers to new techniques. Nationwide, your collective impact is remarkable. In 2016 alone, MEP helped create and retain over 68,000 jobs, produce $1.2 billion in savings, and generate $2.3 billion in new sales.
Your relationships with manufacturers give you a deep understanding of their challenges. According to MEP client surveys, the number of firms concerned about attracting highly-skilled workers has more than doubled since 2009. At the Department of Commerce, our “Skills for Business” initiative aims to better prepare our workforce to meet the needs of today’s employers. For the first time ever, we’ve given businesses a voice in the development of our federal workforce training programs. Of course, beyond tackling the skills gap, we also have to close the enthusiasm gap. Too many Americans still associate manufacturing with the assembly line jobs of the 19th century instead of the high-tech jobs of the future. That must change.
By 2022, our economy is expected to have over two million job openings in engineering, production, and related fields. To inspire more Americans about these innovative career opportunities, MEP partnered with industry to start Manufacturing Day. Thanks to YOUR leadership, this initiative has been an overwhelming success. In 2015, you helped showcase manufacturing innovation to nearly 400,000 people at 2,600 events nationwide. October 7 is Manufacturing Day 2016, and we plan to have 3,000 businesses, research labs, and other partners open their doors. These events are making a real difference. Surveys tell us that eight out of ten students leave feeling more excited about manufacturing. I cannot thank you enough for all your hard work. We at the Department of Commerce are confident that this year’s Manufacturing Day will be the best one yet.
MEP is known for helping manufacturers stay on the cutting-edge. And the Department of Commerce is committed to maximizing your impact. Our National Network for Manufacturing Innovation has brought industry and academic experts across the country together to develop and introduce game-changing innovations into the marketplace. In just four years, the Obama Administration has established nine NNMI institutes, each working in unique areas, from flexible electronics in San Jose, California, to 3D printing in Ohio, to lightweight metals right here in Michigan.
We’re proud to have nearly two-thirds of Fortune 50 manufacturers and 8 out of 10 top engineering and research universities actively involved. This initiative is redefining what government and industry can do when they work together – and I look forward to the announcement of the first Commerce Department-sponsored, industry-driven institute early next year.
I am excited to close my talk today with two announcements about the future of NNMI. The first is a major rebranding effort launched yesterday by Secretary Pritzker. We’re giving NNMI a new name: Manufacturing USA. The truth is, no one knows what the heck we are talking about when we say NNMI. Not only is Manufacturing USA easier to say – it also reflects our aspirations for the future. We continue to seek funding from Congress to realize our vision: 45 institutes nationwide, each advancing the industry innovation that will be so essential to our economic success in 21st century.
From 3D printing to the Internet of Things, technology is reinventing manufacturing as we know it. So beyond rebranding, we must ensure our smaller manufacturers are able to take advantage of, and contribute to, this incredible innovation. Today, I am thrilled to announce several new NIST grant awards for collaborative pilot projects between MEP and Manufacturing USA. For MEP, these grants will help the small manufacturers you serve bring more innovation to market. And for Manufacturing USA, these funds will enable our institutes to leverage MEP’s vast network of industry contacts and expertise.
It is my pleasure to announce today’s grant recipients. They are: * The Illinois Center for Manufacturing Excellence, in partnership with the Digital Manufacturing and Design Innovation Institute.
* California Manufacturing and Technology Consulting, in partnership with NextFlex.
* The New York Department of Economic Development, in partnership with AIM Photonics.
* The North Carolina State University, in partnership with Power America; and * The University of Tennessee, in partnership with the Institute for Advanced Composites Manufacturing Innovation.
Let’s give today’s winners a round of applause.
For 25 years, MEP has evolved to meet the changing needs of America’s manufacturers. You consistently deliver high returns to the taxpayer: for every dollar in federal funding, you generate $17 in new sales and $24 in new client investments. Secretary Pritzker and I cannot wait to see what you achieve through your new partnerships with Manufacturing USA. Thank you for the opportunity to join you today, and for all you do to help our manufacturers “make it in America” every day.
Source: U.S. Department of Commerce
