Manufacturing Policy Gets Boost in House Vote

Manufacture This (Stack) - The House of Representatives passed a bill (HR-4692) that would require each U.S. President to set a national manufacturing strategy and to annually assess progress on meeting its goals. The bill passed by a vote of 379 to 38, reflecting the bi-partisan belief that action must be taken to shore up manufacturing in the United States. It is part of a new ‘Make It in America’ agenda designed to reinvigorate American manufacturing, create jobs, and aid the economy.

Here is how business and economics writer Richard McCormack described the bill in Manufacturing & Technology News...

Obama Signs Manufacturing Enhancement Act

USA Today Kiely) - President Obama just reiterated his call for a revival of American manufacturing, as he signed into law the Manufacturing Enhancement Act, a bill that adjusts import fees to benefit U.S. companies. The measure, which Obama says will "help American companies compete" in a global economy, passed the U.S. House last month with overwhelming bipartisan support. The Senate approved it unanimously, without a roll call.

New Bill Proposes to Strengthens Government Authority over Pharma Supply Chain

IndustryWeek (Selko) - Society of Chemical Manufacturers welcomes closer inspection of active drug ingredients manufactured overseas...The Drug Safety and Accountability Act of 2010 was introduced on August 3 by Michael Bennet, U.S. Senator for Colorado... One of the reasons for the increased scruity of the quality of the medicine is due to the record 1,742 drug recalls in 2009 which is a 400% increase from the prior year. And the emphasis on foreign production is due to the fact that up to 80% of the active ingredients in U.S. drugs are now made overseas, many in countries where regulatory oversight does not meet U.S. standards, according to the Senator.

Senate Testimony on Obama's Manufacturing Agenda

U.S. Senate - On August 5th, Senate Committee on Banking, Housing and Urban Affairs held a hearing on President Obama’s manufacturing agenda. The witnesses included Mr. William Strauss, Senior Economist, Federal Reserve Bank of Chicago; Ms. Nicole Y. Lamb-Hale, Assistant Secretary of Commerce for Manufacturing and Services, U.S. Department of Commerce; and Mr. Roger D. Kilmer, Director of Manufacturing Extension Partnership, U.S. Department of Commerce.

Democrats Focusing On Boosting Manufacturing Jobs

Washington Post (Montgomery, Dennis) reports that congressional Democrats are "shifting toward a longer-term strategy that promises to tackle persistently high unemployment by engineering a renaissance in American manufacturing." This approach, first "heralded by Obama last week in Detroit and sketched out in a memo to House Democrats as they headed home for the August break, is still evolving and so far focuses primarily on raising taxes on multinational corporations that Democrats accuse of shipping jobs overseas." "We know manufacturing produces good jobs, high-paying jobs," House Majority Leader Steny H. Hoyer said this week "as Democrats released a report showcasing small gains in manufacturing since Obama took office." The Post notes that the "Make It in America" has "won high marks from United Steelworkers President Leo Gerard. The Republican-leaning National Association of Manufacturers has been less enthusiastic, though Hoyer said he was working with NAM...to incorporate their ideas." Hat Tip: NAM

Congressional Report on Manufacturing

Joint Economic Committee - A report released on Monday by the Democratic majority staff of the U.S. Congress Joint Economic Committee (JEC), observed fragile and uneven growth for the U.S. manufacturing industry.

Targeted Policy Actions Needed to Bolster Fragile Manufacturing Recovery
Congress and the Administration are targeting the manufacturing sector with policies aimed at rebuilding the industry and are committed to growing the country’s exports in the coming years. Actions to support the manufacturing sector include: support for exports, tax credits for clean energy manufacturing, and efforts to spur domestic demand for vehicles. The House has already passed many of these critical actions. Pending Senate action, Congress is poised to take significant steps toward insuring that this bright spot in the economy continues to light the way toward a better tomorrow. The attached table highlights legislation and presidential actions taken that may help support the manufacturing sector during the recovery...

Proposed Tax Credit For Investing in SBIR companies

Innovation Daily (Olaide, The Pursuit) - The House Ways and Means Committee in Congress is considering a bill sponsored by Representative Chris Van Hollen of Maryland that would provide a 25% credit to investors in some types of technology.

The credit would apply to equity investors who invest in a company that has already qualified for a grant under the Small Business Innovation Research (SBIR) program. The Federal government provides grant funding under the SBIR program to support some high priority technology and biotech research. SBIR grants typically range from $100,000 to $750,000. The credit for investors would also be capped at 50% of the SBIR grant award in a particular company, and would also be limited to a total of $500 million in tax credits per year.

The bill, which was introduced on July 15, 2010 and co-sponsored by three other House members, is called the Innovative Technologies Investment Incentive Act. SBIR grants are directed toward small businesses, so the impact of this bill would be seen at the small business level.

Manufacturers Wrestle With Chemicals Regulation

IndustryWeek (Katz) - Producers worry that changes to existing rules will put the industry at a competitive disadvantage...Proposed changes to a decades-old federal toxic substances law has the U.S. chemicals industry concerned that the proposed reforms could stifle innovation and move production offshore. Any changes to existing regulations also could have a far-reaching impact throughout manufacturing supply chains. At issue are proposed reforms to the Toxic Substances Control Act of 1976. Representatives Henry Waxman (D-Calif.) and Bobby Rush (D-Ill.) introduced HR 5820, known as the Toxic Chemicals Safety Act of 2010, on July 22. The bill would strengthen the federal government's authority over chemical substances in the marketplace by increasing chemicals manufacturers' reporting requirements to the Environmental Protection Agency.

House Pitches Bill to Spur Green Manufacturing

IndustryWeek (Alpern) - Democrats propose tax incentives to modernize manufacturing facilities and encourage renewable energy...Thee House is moving forward on a bill that would provide $25 billion in tax credits to manufacturers of renewable energy equipment and funding for other sources of clean energy. House Ways and Means Committee Chairman Sander Lavin (D-Mich.) introduced legislation on July 26, referring to it as a “discussion draft”, which includes $6.5 billion worth of investment tax credits for manufacturers that re-equip, expand or establish domestic manufacturing facilities that produce advanced energy equipment.

The bill is part of an effort to build on top of the $2.3 billion of investment tax credits provided by the 2009 economic stimulus package and give financing tools to state and local governments to encourage energy-efficiency. The new bill would extend federal subsidies for wind and solar power facilities that received funding last year.

House Approves Legislation To Boost Manufacturing

Wall Street Journal (Raice, Dow Jones Newswires) - House passes bills to boost US manufacturing...was part of the larger "Make it in America" agenda from House Democrats. One of the bills, the National Manufacturing Strategy Act, would require the President to submit a four-year national manufacturing strategy policy plan to Congress. Sponsor Daniel Lipinski (D, IL) said, "After 110 years as the world's top manufacturing country, the United States is about to lose that perch to China. ... But American manufacturing job loss is not inevitable and I do not accept the notion that there's nothing we can do." The bill passed 379 to 38. While they supported it, some Republicans said it didn't do enough. Ed Whitfield (R, KY) said, "Creating another commission, another strategy, another report falls far short of a solution." Hat Tip: NAM

Efforts to Block EPA's Greenhouse Gas Regulations Back in Play

ClimateWire (Schor) - Over the past two years, cap-and-trade advocates used the threat of U.S. EPA climate regulations as a key driver in the push for climate legislation on Capitol Hill. Now, Democratic leaders face the challenge of renewed bipartisan interest in handcuffing EPA before it takes action....Senate Majority Leader Harry Reid (D-Nev.) plans to allow a vote this year on a corresponding two-year EPA postponement proposed by Boucher's fellow coal-state Democrat, Sen. Jay Rockefeller of West Virginia. That decision was made to help dissuade senators from backing last month's broader plan to revoke EPA's "endangerment finding" on carbon emissions, according to a Senate Democratic aide (Greenwire, June 10).

EPA rejects challenge to climate rules
Politico (Samuelsohn) - The Environmental Protection Agency Thursday rejected an effort to keep it from regulating greenhouse gas emissions, saying that e-mails released in last fall’s “Climategate” scandal gave it no reason to reconsider the science of global warming. In a sternly written opinion, EPA Administrator Lisa Jackson said she didn’t agree with requests from the GOP attorneys general from Texas and Virginia, the U.S. Chamber of Commerce and other conservative groups that questioned the underlying science linking humans to global warming and also warned of the potential economic burdens from new climate rules.

House Democrats’ Upcoming "Made in American" Manufacturing Agenda

National Association of Manufacturers (Wood) - Speaker of the House Steny Hoyer (D-MD) joined other Democrats Thursday at a news conference to promote next week’s legislative emphasis on manufacturing, the “Make it in America” agenda. Rep. Hoyer issued a statement on next week’s agenda, and majority leader’s website now lists the bills that constitute it. Excerpt from the statement:

“Make it in America” is a new legislative initiative from House Democrats to increase American manufacturing and create new American jobs.  The American public strongly supports a renewed focus on American manufacturing. This effort builds on House Democrats’ actions since the start of the Great Recession to create jobs and lay the foundation for a strong economy.

“Make it in America” bills that have passed the House:

• U.S. Manufacturing Enhancement Act 
• Strengthening Employment Clusters to Organize Regional Success (SECTORS) Act 

“Make it in America” bills that are scheduled to come to the House Floor the week of July 26th, 2010:

• National Manufacturing Strategy Act 
• Clean Energy Technology Manufacturing and Export Assistance Act
• End the Trade Deficit Act 

We thought it might be helpful to provide more context on the bills as well as the NAM’s position where applicable. On the already enacted legislation, then...

House Approves Economic Development Legislation

IndustryWeek (Cable) - 'SECTORS' Act would provide grants for public-private partnerships to address training needs. The U.S. House of Representatives on July 19 approved bipartisan legislation that aims to help industries meet their skilled workforce needs by connecting public- and private-sector stakeholders in various industry clusters.

The “Strengthening Employment Clusters to Organize Regional Success” (“SECTORS”) Act, H.R. 1855, would set up a grant program through the Department of Labor to provide funding for partnerships between businesses, unions, educators and the public workforce system to coordinate training activities in “high-demand and emerging industries,” according to the House Education and Labor Committee. Eligible partnerships could receive up to $2.5 million in grants for the first three years and up to an additional $1.5 million thereafter.

A Manufacturing Strategy for Jobs and a Competitive America

National Association of Manufacturers - An open letter to Congress Speaker of the House Nancy Pelosi has declared that the U.S. House of Representatives will dedicate itself to a manufacturing plan, and the National Association of Manufacturers (NAM) welcomes the focus on this critical sector of the U.S. economy. We urge House members to use this opportunity for a substantive discussion of what it takes for manufacturers in the United States to succeed in the global marketplace. The NAM believes such deliberations will lead to one inevitable conclusion: The United States must develop and enact a comprehensive manufacturing strategy.

The hard truth is that manufacturers in the United States are too often at a disadvantage. Governments of other countries craft consistent policies to support their industries, and their officials stand by manufacturers as they compete around the world. In America, regulations, taxes and government mandates pile up one after another, making the country a less attractive place to do business.

In Europe, Asia and South America, policymakers think strategically about manufacturing. It is time the United States does the same.

Hearing on H.R. 4692, the National Manufacturing Strategy Act of 2010

U.S. House of Representatives - The Subcommittee on Commerce, Trade, and Consumer Protection held a hearing on H.R. 4692, the National Manufacturing Strategy Act of 2010, on Wednesday, July 14, 2010, in 2322 Rayburn House Office Building. Representative Lipinski introduced the bill on February 25, 2010.

The National Manufacturing Strategy Act of 2010 will require the President to undertake a deep and broad analysis of the nation’s manufacturing sector, including the international and economic environment, related technological developments, workforce elements, the impact of governmental policies, and other relevant issues affecting domestic manufacturers. Based on this analysis, the President will develop a national manufacturing strategy that identifies goals and recommendations for how the federal government, as well as state, local and private institutions, can best support the improvement and growth of our nation’s manufacturers and support their efforts to move into the markets of the future. This process will recur every four years, in order to assess the implementation of prior recommendations, review changes in markets, adjust for changes in technology and the economic climate, and respond to any other influences that may arise.

EU-US to collaborate on 'rare earths'

EurActiv - The US Congress and the European Parliament could hold parallel hearings and produce a joint communiqué on crucial raw materials as part of efforts to cooperate on areas of strategic interest, according to a senior Washington policymaker.

Congressman Bart Gordon, chairman of the Committee on Science & Technology of the House of Representatives, wants parliamentarians on both sides of the Atlantic to identify common ground on rare earth minerals, which are vital for green technologies. Gordon told the European Parliament's committee on industry, research and energy (ITRE) that China's near-monopoly on key raw materials is "very troubling" and could hamper advances in alternative energy and telecoms products.

Collaboration on rare earths could be a template for further cooperation in areas such as intellectual property, cyber security, clean water, energy security and carbon capture and storage (CCS), according to the congressman...He added that the chairpersons of other House of Representatives committees would be willing to look at how they can work more closely with MEPs, particularly in light of the new powers conferred on the European Parliament by the Lisbon Treaty.

Improving Technology Commercialization to Drive Future Economic Growth

Kauffman Foundation - "Chairman Lipinski and Members of the Subcommittee, thank you for this opportunity to testify before the Subcommittee focused on the role that improving technology commercialization of government-funded research can play in driving economic growth and job creation...The Ewing Marion Kauffman Foundation has been interested in economic growth through the mechanisms of innovation and firm formation...as well as the more narrowly focused conversation we will have today on technology commercialization.

In my testimony today, I will highlight three main policy proposals and review the Kauffman Foundation's current thinking on best practices in technology commercialization. First, we call for an increase in the transparency of research resulting from federal funding through the creation of an "Innovation Exchange." Second, we encourage federal agencies funding research to become more involved with driving university-specific improvements in technology commercialization. Third, we call for an increase in funding allocations for proof-of-concept centers and commercialization education programs through federal agencies funding research."  Hat Tip: Innovation Daily

New Report Urges More Investment in Energy Innovation

The Breakthrough Institute (Swezey) - In response to numerous reports documenting a sharp decline in U.S. clean energy competitiveness, experts at three leading U.S. think tanks have issued a new policy report calling on Congress to strengthen U.S. innovation and competitiveness policies in this key industry through the reauthorization of the America COMPETES Act. The report, "Strengthening Clean Energy Competitiveness: Opportunities for America COMPETES Reauthorization," was released today by the Breakthrough Institute, the Information Technology and Innovation Foundation (ITIF), and the Brookings Institution Metropolitan Policy Program.

The new report argues that to regain leadership in the global clean energy market, the United States must prioritize major investments in clean energy technology and embrace bold new paradigms in clean energy education, innovation, and production and manufacturing policy.

To strengthen clean energy competitiveness through the reauthorization of America COMPETES, the report calls on Congress to:

To Facilitate Trade, NAM Suggests These Changes

National Association of Manufacturers’ Frank Vargo, vice president for international economic affairs, testified before the Trade Subcommittee of House Ways and Means last Thursday at a hearing, “Customs Trade Facilitation and Enforcement in a Secure Environment.” Vargo was also speaking as a member of the Customs and Border Coalition (CBC)—a broad based industry group representing all interests in global supply chains from manufacturers and retailers to customs brokers and carriers. His testimony delves into highly technical areas of trade enforcement, so we’ll just cite the overview:

Patent snafus cost U.S. $6.4 billion yearly

Milwaukee Journal Sentinel (Schmid) - The United States wastes at least $6.4 billion each year in "forgone innovation" - legitimate technologies that cannot get licensed and start-ups that cannot get funding - because of backlogs and dysfunction at the U.S. Patent and Trademark Office, the agency that's supposed to protect and encourage innovation in America.

That figure, enough to provide an average round of venture capital funding to more than 1,000 start-up companies each year, comes from the first-ever effort to quantify the economic damage inflicted by the chronic delays at the Patent Office. It was calculated by London Economics, a British research group commissioned by the British patent office to study the impact of patent backlogs around the world.

According to the London Economics study, the U.S. leads the world in the cost of forgone innovation - employers and jobs that don't exist because they were impeded or snuffed out by inability to get a patent. The economic drag imposed by the European Patent Office, which represents 37 nations, amounts to less than a quarter of the U.S. cost. Japan, the world's second-biggest patent office behind the U.S., inflicts even less than half of the European losses.

At the root of the U.S. agency's current problems are nearly two decades of congressional raids on the fees collected by the Patent Office. From 1992 to 2004, Congress siphoned off $752 million into unrelated spending, which in turn left the agency unable to hire enough examiners to keep up with its mounting workload.

The current Patent Office administration, which took office nine months ago, has been fighting an uphill battle to get congressional funding to reform the agency. But Congress once again skimmed an additional $100 million in the current fiscal year...Striving to get Congress' attention, the Patent Office last month issued a white paper that concedes that the agency handicaps American innovation. The report corroborates many of the Journal Sentinel's findings. Read More