Mr. Speaker, I rise today to speak in support of the efforts to revitalize American Manufacturing. Manufacturing has long been a central part of the American economy. Right now, there are more than 11 million Americans employed in high-…
Mr. Speaker, I rise today to speak in support of the efforts to revitalize American Manufacturing.
Manufacturing has long been a central part of the American economy. Right now, there are more than 11 million Americans employed in high- paying manufacturing jobs. And in 2010, manufacturing accounted for 60 percent of all U.S. exports and contributed $1.7 trillion to our GDP.
These figures are impressive and lend support for the importance of maintaining a vibrant manufacturing sector. Unfortunately, the dominance of the United States in manufacturing has been steadily challenged. The U.S. share of global manufacturing value added declined from one-third in the early 1980s to just one-fifth today. At the same time, manufacturing activity has rapidly increased in emerging economies such as China and Korea.
Even more troubling, is the fact that countries such as Korea, Japan, and Germany have a more R&D-intensive manufacturing sector than the United States. Additionally, each of these countries has a positive trade balance in advanced manufacturing products unlike the $81 billion dollar trade deficit observed in the United States in 2010.
The truth is that the perception of manufacturing as low-skilled, assembly line work is outdated and no longer applies. The future of manufacturing is advanced manufacturing, a high-tech endeavor that uses sensors, robotics, and cutting-edge modeling and simulation. If we do nothing and settle for the status quo, our position will almost certainly decline further and our economy will continue to struggle.
Thankfully, the Administration has renewed its commitment to American manufacturing and is focused on ensuring that the United States is the global leader in advanced manufacturing. The President has put forward a number of initiatives, including the creation of the National Network for Manufacturing Innovation. The purpose of the National Network for Manufacturing Innovation is to establish up to 15 public-private manufacturing institutes across the country. These institutes will serve as centers of manufacturing excellence and will accelerate manufacturing and help transition cutting-edge technologies from the lab to the factory floor.
The Administration has also called for a number of tax reforms that will provide incentives to companies that bring jobs back to the U.S. These include making the R and D tax credit permanent, reducing tax rates for manufacturers, and doubling the tax deduction for high-tech manufacturers.
The President's commitment to advanced manufacturing appears to be paying off. We are adding manufacturing jobs for the first time since the 1990s. These jobs will have a downstream impact on our economy since it's been shown that for every manufacturing job we create, we add five additional jobs along the supply chain. And for every dollar in manufacturing value added, we create $1.40 in new value in other sectors of the economy.
We need to continue to move forward with policies and programs that will expand and support the development of advanced manufacturing. I have worked on two such efforts.
First, my bill, H.R. 1421, the AIM Act makes strategic investments in advanced manufacturing research, development, and education. It brings the public and private sectors together to tackle the research needs of industry. It provides small and medium-sized manufacturers with innovation vouchers that will allow them to make their companies and products more competitive. And finally, H.R. 1421
ensures that our community colleges are preparing students for the manufacturing jobs of the future.
Secondly, I have circulated a discussion draft of the America Competes Reauthorization Act which includes several initiatives that would help revitalize American manufacturing such as innovative technology federal loan guarantees to small- and medium-sized manufacturers to help them become more efficient and stay competitive and the creation of a network of industry-led manufacturing centers that will accelerate the development and commercialization of manufacturing technologies and processes.
I strongly believe that if the United States is to remain competitive in the long term, we need to ensure that American companies maintain the capacity to manufacture new and innovative products here at home.
The decline of U.S. manufacturing is a threat to middle class jobs and our economy. We need our manufacturing sector to be the most sophisticated in the world, using transformative technologies and innovative manufacturing processes. H.R. 1421, the manufacturing provisions in the Competes Act, and the ``Make it in America'' agenda will help to ensure that U.S. companies have the tools and the workforce they need to meet the challenge ahead.