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Manufacturing Day 2016: A Resounding Success

October 11, 2016

Evan Caplan is the Deputy Director for Public Affairs.

Along with thousands of businesses, schools, students, educators, and parents the International Trade Administration (ITA) celebrated the fifth annual Manufacturing Day on Friday, October 7. Across the country, events showcased how manufacturing has become innovative, inventive, and exciting, and the incredible potential in the future of manufacturing. Manufacturing Day, which the Department of Commerce leads, is an annual national event executed at the local level and supported by thousands of manufacturers as they host open houses, plant tours, and presentations designed to display modern manufacturing technology and careers to students and future employees.

Deputy Assistant Secretary for Manufacturing, Laura Taylor-Kale, visited Wolfspeed for Manufacturing Day.

Deputy Assistant Secretary for Manufacturing, Laura Taylor-Kale, visited Wolfspeed for Manufacturing Day.

On Thursday and Friday, the Secretary of Commerce Penny Pritzker was in Portland, Oregon at a Makers Gone Pro Event, where she spoke to recent high school graduates pursuing technical careers, and joined 100 students at the Lam Research Facility, the world’s second largest semiconductor equipment manufacturer.

Around the country, other Commerce leaders toured some of America’s most innovative manufacturing facilities.

Acting Assistant Secretary for Industry and Analysis at ITA Ted Dean went to Chicago to visit the Freedman Seating Company, which creates seating and other products for bus, rail, marine, delivery truck, specialty and commercial vehicles. He received a tour and spoke with students and young professionals from the Young Manufacturers Association. He then went to Digital Manufacturing and Design Innovation Institute, or DMDII. There, he participated in a roundtable discussion with local and community leaders focusing on workforce development and the growing digitization of manufacturing.

“Seven years ago, nobody could have predicted the manufacturing resurgence we have seen” he said. “The job numbers alone speak volumes.  There are 828,000 more Americans working in manufacturing than there were 6 years ago.”

Regarding digital technologies, he said that “they now drive at least 5 percent of our national GDP, and the Internet’s impact extends far beyond our borders. In the developed markets of the G-20, the digital economy is projected to grow at an annual rate of 8 percent over the next five years – outpacing just about every other traditional sector.”

Deputy Assistant Secretary for Textiles, Consumer Goods, and Materials Felicia Pullam visited RMI’s On the Road to Manufacturing 4.0 and Beyond Under Armour Lighthouse, a brand-new space in Baltimore making innovative advances in athletic products.

ITA Deputy Assistant Secretary for Manufacturing Laura Taylor-Kale visited PowerAmerica, which creates energy-efficient power devices for a range of industries, like electric vehicles, industrial motors, solar and wind farms, and data centers. She toured the Wolfspeed Semiconductor Foundry, the Phononic Manufacturing Line, and the Windlift Production Facility. At each of these, she spoke to industry partners about the importance of their work. Later, she also spoke on a roundtable with students on the sustainability of manufacturing. The day ended at a Research Triangle CleanTech Cluster event with PowerAmerica, where she was a featured guest in the proceedings. “I am proud to be part of this incredible event,” she said. “Manufacturing Day is a great occasion to celebrate local industry and stoke community pride.”

Executive Director of SelectUSA, Vinai Thummalapally, visited K-Form and Nova Labs for Manufacturing day 2016.

Executive Director of SelectUSA, Vinai Thummalapally, visited K-Form and Nova Labs for Manufacturing Day 2016! #MFGDAY2016

SelectUSA Executive Director Vinay Thummalapally visited K-Form, which develops and manufactures technical products specializing in high-performance enclosures, and Nova Labs, an innovative, membership-driven, all-volunteer makerspace based in Reston, Virginia that was founded in 2011 with the purpose of empowering everyone to “Rediscover the Joy of Making Things!” They hosted local schools, educators, and community members.

Through initiatives like Manufacturing Day and others, the Department of Commerce helps create the conditions for a skilled workforce, opens new markets for American goods, and drives innovation which ultimately keeps America  Open for Business.

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ITA Official Celebrates Innovative Technology in PA as Part of Manufacturing Day 2016

October 7, 2016

Laura Taylor-Kale Is the Deputy Assistant Secretary for Manufacturing at the International Trade Administration 

Today, the International Trade Administration celebrates Manufacturing Day 2016. The day provides an opportunity for U.S. manufacturers to open their doors to demonstrate the innovation and creativity of 21st century manufacturing. ITA provides critical programs and services to businesses across the country to expand export growth opportunities.

The first stop on my journey to celebrate Manufacturing Day 2016 was to DMI Companies in Monongahela, Pennsylvania. Founded in 1978, DMI is a leading manufacturer of HVAC accessories. DMI supplies commercial, industrial, and residential HVAC markets through a network of domestic and international distributors. The President and CEO of DMI Companies, Ray Yeager, serves on Department of Commerce Secretary Penny Pritzker’s Manufacturing Council. Council members advise the Secretary on policies and programs that effect manufacturing, and recommend ways to ensure that the United States remains the preeminent destination for investment in manufacturing across the globe.

Ray and the DMI team were enthusiastic about Manufacturing Day 2016. They believe it is critical to invest in our youth and emphasized that any day can be Manufacturing Day! DMI Companies gave presentations to local students on the life cycle of its products, from R&D through distribution to the patent process. DMI’s Engineers also demonstrated the design and cut processes of sub-components using state-of-the-art software and laser cutter.

I spoke to the students and community leaders on the important role that manufacturing plays in our economy, the future of manufacturing, and the profitable careers it offers. It’s these very students that could end up becoming the future explorers, investigators, makers, integrators, designers, producers, solvers, and advisors of DMI Companies and other innovative manufacturing businesses. Thus it is important that we continue to inspire the next generation of workers, and show them what modern manufacturing really looks like.

The next stop on my journey to celebrate Manufacturing Day is Raleigh, NC. Stay tuned!

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The State of American Manufacturing Measured by the Census Bureau

October 7, 2016

Cross-blog post by Robert Bernstein, International Trade Management Division, U.S. Census Bureau

For more than 200 years — since the dawn of the Industrial Revolution in America — the U.S. Census Bureau has described the state of America’s manufacturing. It all began as part of the 1810 Census, when U.S. Marshals collecting the population data also asked the first questions on manufacturing establishments. U.S. manufacturing has changed since then, when the landscape was dotted with textile mills. Today, the nation is celebrating this evolution with its annual observance of Manufacturing Day, when manufacturers across the country open their doors to showcase their modern manufacturing to America to inspire the next generation of manufacturers.

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U.S. Census Bureau Graphic on Manufacturing in the United States

Since that first economic census in 1810, the Census Bureau has evolved its measurement of manufacturers. A wide range of data products give users a detailed look at the nation’s manufacturing industries. These products differ in geographic coverage, industry detail, how frequently they are released and what is included. Our most recent statistics, from the Annual Survey of Manufactures, show that U.S. manufacturers employed 11.0 million people and generated receipts of $5.9 trillion in 2014.

The most frequently published Census Bureau manufacturing statistics are the monthly full and advance reports on manufacturers’ shipments, inventories and orders, and manufacturing and trade inventory and sales. As economic indicators, these datasets have the potential to move financial markets. Economists and other analysts rely on the indicators to measure the current health of manufacturing and predict future business trends.

Our most geographically detailed data source, the economic census, is conducted every five years and provides data for years ending in 2 and 7. It includes statistics on the number of establishments, employees and value of shipments for cities and towns as small as 2,500 people, covering detailed industries down to the 6-digit North American Industry Classification System (NAICS) level. It includes statistics for states, counties, metro areas and more than 5,000 communities nationwide.

The economic census thus enables you to examine long-term manufacturing trends in communities across the country. For example, in Palo Alto, in the heart of California’s Silicon Valley, you’ll see that the number of computer and electronic product manufacturing plants with at least one employee rose from 19 in 2007 to 22 in 2012. Employment climbed from 5,440 in 2007 to 6,158 in 2012. Their value of shipments totaled $2.7 billion in 2012.

If you’re looking for statistics that are timely but still local, then try the annual County Business Patterns series for numbers on establishments and employees. You won’t find data for places such as Palo Alto, but you will find them for Santa Clara County, Calif., where Palo Alto is located. Industry detail is also provided down to the 6-digit NAICS level. In 2014, the county was home to 2,306 employer manufacturing establishments, employing 85,253 people, including nearly 300 establishments that made semiconductors and other electronic components.

Our statistics show that manufacturers can be found in every corner of America, including perhaps the nation’s best-known ZIP code, (Beverly Hills) 90210, which according to a related dataset (ZIP Code Business Patterns), had 22 manufacturing establishments in 2014.

You may be surprised to learn that there are more manufacturers without employees than with them. Indeed, some manufacturing businesses are operated from home, such as those that produce handbags, awnings and wood screen doors. Another dataset, Nonemployer Statistics, reveals that there were more than 350,000 manufacturing establishments without any employees in 2014. By comparison, there were only 292,543 employer establishments in manufacturing, according to County Business Patterns.

Another key component of the Census Bureau’s manufacturing statistics program is the Annual Survey of Manufactures. This survey provides key measures of manufacturing activity for the nation and each state in non-economic census years. Statistics are available for not only employment and receipts, but also topics such as fringe benefits, employer’s cost for health insurance, cost of materials, total inventories and operating expenses.

What really sets the Annual Survey of Manufactures apart from other datasets, though, is that it also offers statistics on the production of specific manufactured goods. Through this survey, you can track how consumer habits are changing by tracing the production of certain goods through the years. The survey shows, for instance, that the value of shipments for yogurt (excluding frozen yogurt) rose from $2.5 billion in 2004 to $6.2 billion in 2014.

Another data source, the Business Dynamics Statistics examines establishment births and deaths each year. The Survey of Business Owners, a part of the economic census, and its annual counterpart, the new Annual Survey of Entrepreneurs, examine the demographics of people who own manufacturing businesses.

The 2014 Annual Survey of Entrepreneurs showed, for instance, that 26,607 manufacturing firms with employees, or 10.6 percent, were minority-owned.

Not only does Census Bureau data give you a picture of America’s manufacturing but it can also paint a picture of the workers in those industries. According to the American Community Survey, for example, in 2014, 28.8 percent of these workers were women.

The types of information we gather from America’s manufacturers includes much more: their exports, e-commerce shipments, R &D (research and development) and innovation,capital expenditures, plant capacity utilization, finances, job creation and worker turnover,organizational practices, pollution abatement costs, and energy consumption.

For a complete list and more details on the sources of manufacturing data from the Census Bureau, visit our manufacturing home page.

Happy Manufacturing Day!

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Deepening and Institutionalizing U.S. – Brazil IT and Defense Trade

October 6, 2016

Ken Hyatt is the Acting Under Secretary of International Trade Administration

It makes perfect sense that the Department of Commerce’s third annual Health IT Trade Mission took place in Sao Paulo, the business and financial capital of Brazil. Through my participation in this trade mission, I have had productive discussions with leaders of several key organizations actively engaged in our bilateral commercial relationship, including the Brazil-U.S. Business Council (BUSBC), the American Chamber of Commerce in Brazil (AmCham), and the Federation of Industries of the State of São Paulo (FIESP).

Discussion during the Health IT trade mission to Brazil in São Paulo.

Discussion during the Health IT trade mission to Brazil in São Paulo.

A constant theme in all of my meetings was the advancements in the digital economy, the increasing use of e-commerce, and the opportunities that these sectors present for the Brazilian economy. The digital economy is already critical to both the United States and Brazil, making up 5.4 percent and 2.4 percent of GDP, respectively. There has been remarkable growth of e-commerce in Brazil recently, growing by more than 20 percent over the past few years. In fact, the digital health sector alone is expected to exceed $40 billion by 2020.

This is precisely why ITA’s Foreign Commercial Service presence in Brazil includes a digital trade officer to help U.S. firms participate and reap the benefits of the digital economy; the core service we provide through our Digital Attache program.

That said, there are many barriers to U.S.-Brazil digital trade. That is why our countries are working together to exchange best practices related to developing, measuring, regulating, and fostering the digital economy to help ensure that this sector becomes a major growth driver for our two countries. To that end, our public and private sectors must promote three major points: the benefits of a free and open Internet, flexible regulatory regimes, and open innovation ecosystems.

Other priority topics we discussed included infrastructure, healthcare, energy, and services, as well as cross-cutting issues like trade facilitation (e.g., single-window), regulatory coherence, and standards. Outside of this current trade mission, our two countries have been working on addressing these issues over the past few years via two high-profile, dynamic cooperative mechanisms: the U.S.-Brazil CEO Forum and the U.S.-Brazil Commercial Dialogue. These two vehicles have been critical in the advancement of key priorities and issues affecting both American and Brazilian companies.

The other priority topic during my time in Brazil was our defense partnership. I am proud to have led our interagency delegation that included the Departments of Commerce, Defense, and State, to launch the first ever Defense Industry Dialogue (DID). The DID integrates industry into the bilateral defense relationship with Brazil, and creates a platform for discussing concrete commercial issues such as supply chain integration, technology transfer and export compliance, as well as manufacturing standards.

During the DID, U.S. Ambassador to Brazil Liliana Ayalde highlighted the defense industry as a key driver of economic growth in both countries, and called on all participants to seize the moment to focus on a concrete agenda in pursuit of tangible results. And with the participation of more than 180 participants from 70 defense firms, senior government officials, and military leaders from both countries, the commitment to pursuing that concrete agenda was more than evident. That is why I signed a four-way Letter of Intent to institutionalize government support for the dialogue moving forward. The DID marks an important milestone for U.S.-Brazil relations and I am thrilled to be a part of it.

Whether we are talking about digital, defense, or any other sector, it should be absolutely clear that the United States is committed to a strong and dynamic relationship with Brazil, and I am committed to continue strengthening this relationship through greater trade and investment.

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The Benjamin Joy Award: State and Commerce Collaboration

October 5, 2016

Arun Kumar is the Assistant Secretary for the International Trade Administration

Ambassador Charles H. Rivkin, Assistant Secretary of State for Economic and Business Affairs, and I had the great pleasure last week to present the first Benjamin Joy Award to the State-Commerce teams at U.S. Embassy Addis Ababa, Ethiopia.

The Benjamin Joy Award was created by the International Trade Administration’s Global Markets unit and the State Department’s Economic Bureau (EB) to highlight and promote interagency collaboration and excellence in commercial diplomacy. The Award is named for Benjamin Joy, an early exemplar of U.S. commercial and economic diplomacy, who was appointed in 1792 by President George Washington as the first American Consul and Commercial Agent to India.

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Kumar with the winners of the Benjamin Joy Award

There were 43 nominations from 34 different countries, a testament to robust State Commerce collaboration – and to the premium our people put on working together to assist American businesses. From our very first meeting, Ambassador Rivkin and I have shared the conviction that closer State and Commerce collaboration can create even greater success in advancing our country’s commercial and economic interests. Following the ceremony, we also signed a memorandum to further expand the interagency cooperation under the U.S. & Foreign Commercial Service-State Partner Post Program.

The joint State-Commerce team in Ethiopia was led by Ambassador Patricia Haslach, and made up of Tanya Cole, Teddy Tefera and Nnaji Campbell from Commerce and Peter Vrooman and Gaia Self from State. The team worked tirelessly over 19 months, through many ups and downs, to ensure a level playing field for a U.S. company, Gates Air in a government tender to upgrade and digitalize Ethiopia’s television infrastructure.

The runners-up were teams from Embassy New Delhi and Embassy Jakarta. Those teams too exemplified outstanding State-Commerce collaboration – which is all the more important to increase America’s influence in today’s increasingly complex and uncertain world,  when competition overseas is stiffer and does not always play by the same rules.

Congratulations to the winners!

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Spotlight on Commerce: Karen Garcia, Special Advisor to the Executive Director of SelectUSA

October 4, 2016
Spotlight

Karen Garcia, Special Advisor to the Executive Director of SelectUSA

This post originally appeared on the Department of Commerce blog.

As Special Advisor to the Executive Director of SelectUSA, I advise the Executive Director on a range of policy and operational processes that allow us to use the convening power of the U.S. government to showcase this nation as the prime location for investment and ultimately job creation.

I was born and raised in Colorado to parents who arrived from Mexico in search of their very own American dream. Inspired by my parents, one thing was engrained in me, dedicate completely to education – as it is the only way to achieve not only a better life, but also a gratifying career. After a few years, I became the first person in my family to graduate from high school and go to college. Once at the University of Colorado in Boulder I decided to major in International Affairs and Italian, where I submerged myself in international issues I observed while in Mexico. I subsequently obtained my Master’s Degree in Ethics, Peace, and Global Affairs at American University, where my desire to work in the public sector only strengthened.

Through my educational and professional career, I’ve received immense support from a number of successful Hispanic Americans and organizations such as the Hispanic Association for Colleges and Universities who have all contributed to who and where I am now. As I meet younger generations of Hispanic Americans interested in my field, I encourage them to be active and grow their social capital by: engaging in the issues important to them and their communities; seek out the volunteer and professional opportunities available throughout the country and abroad; and more importantly to work hard and zealously at everything they do.

As the Hispanic Heritage Month continues, I cannot help but think of a quote by Gabriel Garcia Marquez, my favorite author: “It is not true that people stop pursuing dreams because they grow old, they grow old because they stop pursuing dreams.” As a Mexican American connected to her roots, I see and hear the hundreds of thousands of dreams alive in the Hispanic American community and I hope I can assist in keep the dreams alive and the dreamers young.

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Our Partnership with Canada – Beyond the Border

September 29, 2016

Kyle Wells is the Canada Desk Officer at the International Trade Administration

Today, the Obama administration and the government of Canadian Prime Minister Justin Trudeau released the annual “Beyond the Border” (BTB) Implementation Report. The joint document highlights key accomplishments under the BTB Action Plan launched in 2011 by President Obama and former Canadian Prime Minister Stephen Harper. The vision of BTB is to enhance perimeter security and economic competitiveness while facilitating legitimate trade and travel across our shared border.

The BTB Action Plan describes four key areas of cooperation between the United States and Canada:

• Addressing threats early
• Trade facilitation, economic growth, and jobs
• Integrated cross-border law enforcement
• Critical infrastructure and cybersecurity

The United States and Canada have made tremendous progress since launching the BTB. Major accomplishments include:

• Signed an historic Preclearance Agreement that will, once in force, enable new preclearance operations on both sides of the border in all modes of transportation (land, rail, marine, and air), facilitating trade and travel for Americans and Canadians.
• Reached 1.3 million Nexus members, as of December 2015 – representing an increase of nearly 17 percent over 2014 and over 110 percent since 2011. Data from fall 2015 show that the majority of NEXUS members using the dedicated commuter lanes were processed within 25 seconds.
• Worked with Mexico to expand eligibility across North America in our respective trusted traveler programs that speed the entry of pre-screened travelers.
• Issued the second annual Border Infrastructure Investment Plan, conducted consultations with stakeholders, and held a series of regional webinar roundtables to help harmonize efforts to move forward with deploying wait time solutions at crossings.
Next week, government officials from the United States and Canada will convene the annual Executive Steering Committee via video conference to discuss ongoing and future work under the BTB Action Plan. For more information on BTB, please visit the Department of Homeland Security’s website: https://www.dhs.gov/beyond-border#