Manufacturing Jobs for America Update - September 2014

8/10/2019 Manufacturing Jobs for America Update - September 2014

1/7

MANUFACTURING UPDATE- SEPTEMBER 2014 -

1. LATEST POLICY

==================================

Introduced -- Creating Quality Technical Educators ActSenators Baldwin (D-WI), Kaine (D-VA), and Portman (R-OH) introduced the Creating Quality

Technical Educators Act. The Act creates a Career and Technical Education (CTE) teacher-

training grant partnership to recruit and train high-quality CTE teachers. The Creating Quality

Technical Educators Act grant would foster partnerships between high-needs secondary schools

and post-secondary institutions to create one-year teacher residencies for CTE teachers.Through grants in the Higher Education and Opportunity Act of 2008 (HEOA), many teacher

residency partnerships already exist between post-secondary institutions and local schools to

train prospective educators, but none are CTE focused.

CTE teacher residencies created through the Creating Quality Technical Educators Act would

target mid-career professionals in related technical fields, as well as recent college graduates,

veterans or currently licensed teachers with a desire to transition to a CTE focus.

More:Baldwin release

Introduced -- Manufacturing Skills Act

Senators Coons (D-DE) and Ayotte (R-NH) introduced the Manufacturing Skills Act, bipartisanlegislation to help cities and states build 21stcentury manufacturing training programs. The bill

creates an annual $100 million competitive grant to support initiatives that strengthen the

manufacturing workforce and address regional skills challenges. Applicants will establish a local

task force, consisting of leaders from the public, nonprofit, and manufacturing sector, as well as

labor and education representatives, to apply for and carry out the three-year grant. A federal

inter-agency partnership will review applications and award grants to the five states and five

metropolitan areas with the strongest proposals.

Manufacturing plays a critical role in building communities and strengthening the middle class,

Senator Coons said. Our country regained more than half a million manufacturing jobs in the

last three years, but our training programs still havent evolved to meet growing demand for

high-skilled workers. We need to do a better job of training our workers for the manufacturingjobs of the 21st century, and thats exactly what this bipartisan bill will do.
http://www.baldwin.senate.gov/press-releases/senators-baldwin-kaine-portman-introduce-bipartisan-bill-to-train-high-quality-cte-teachershttp://www.baldwin.senate.gov/press-releases/senators-baldwin-kaine-portman-introduce-bipartisan-bill-to-train-high-quality-cte-teachershttp://www.baldwin.senate.gov/press-releases/senators-baldwin-kaine-portman-introduce-bipartisan-bill-to-train-high-quality-cte-teachershttp://www.baldwin.senate.gov/press-releases/senators-baldwin-kaine-portman-introduce-bipartisan-bill-to-train-high-quality-cte-teachers


2/7

In New Hampshires high-tech manufacturing sector, theres a growing demand for workers

who are skilled in the science, technology, engineering, and mathematics or STEM fields,

said Senator Ayotte. Our legislation would establish a competitive grant program to provide

states and municipalities the resources and flexibility to develop training programs that reflect

their unique needs and help ensure that Americas workers have the skills and training

necessary to compete in the 21st century global economy.

More:Coons release

Announced -- President Obama announces new manufacturing hubs

competitionThe President announced a new competition to award more than $200 million in public and

private investment to create an Integrated Photonics Manufacturing Institute. This is the

second of four new institute competitions that will be launched this year.

The competition will be led by the Department of Defense, which will award more than $100

million in federal investment to match $100 million or more in private investment. The money

will be used to build a new Institute for Manufacturing Innovation (IMI) focused on IntegratedPhotonics. Photonics covers all of the uses of light; applications include powering the internet,

medical technology, and national defense.

The Institute will focus on developing an end-to-end photonics ecosystem in the U.S., including

domestic foundry access, integrated design tools, automated packaging, assembly and testing,

and workforce development.

More:White House fact sheet

2. OTHER NEWS

==================================

News -- Manufacturing DayThe President and Secretary of Commerce Pritzker visited Millennium Steel Service in Princeton,

IN to celebrate Manufacturing Day. Millennium supplies automotive grade steel sheet to Toyota

and related parts makers.

Other cabinet members traveled across the country to discuss the importance of continuing to

invest in American manufacturing, as more than 1,600 U.S. manufacturers opened their

factories to the public.

As part of Manufacturing Day, the White House and Department of Commerce released a

Digital Tour of American Manufacturing, a new digital report that highlights the central role of

manufacturing in laying the foundation for a new American economy.
http://www.coons.senate.gov/newsroom/releases/release/senators-coons-and-ayotte-introduce-bipartisan-bill-to-boost-manufacturing-skills-traininghttp://www.coons.senate.gov/newsroom/releases/release/senators-coons-and-ayotte-introduce-bipartisan-bill-to-boost-manufacturing-skills-traininghttp://www.coons.senate.gov/newsroom/releases/release/senators-coons-and-ayotte-introduce-bipartisan-bill-to-boost-manufacturing-skills-traininghttp://www.whitehouse.gov/the-press-office/2014/10/03/fact-sheet-president-obama-announces-new-manufacturing-innovation-instithttp://www.whitehouse.gov/the-press-office/2014/10/03/fact-sheet-president-obama-announces-new-manufacturing-innovation-instithttp://www.whitehouse.gov/the-press-office/2014/10/03/fact-sheet-president-obama-announces-new-manufacturing-innovation-instithttp://www.whitehouse.gov/the-press-office/2014/10/03/fact-sheet-president-obama-announces-new-manufacturing-innovation-instithttp://www.coons.senate.gov/newsroom/releases/release/senators-coons-and-ayotte-introduce-bipartisan-bill-to-boost-manufacturing-skills-training


3/7

The Department of Commerce also released the Assess Costs Everywhere portal to help

manufacturers evaluate the advantages of locating in the United States. Developed with

experts at Lausanne University, the tool helps manufacturers directly quantify the often hidden

costs of lengthy, overseas supply chains. The new inventory costs tool will be used across

Commerces manufacturing extension centers, which already support more than 30,000 small

and medium manufacturers each year.

More:Manufacturing day|Digital Tour of American Manufacturing|Assess Costs Everywhere

News -- Senators host briefing on Career and Technical EducationSenators Baldwin (D-WI), Kaine (D-VA) and Portman (R-OH), co-chairs of the Senate Career and

Technical Education (CTE) Caucus, hosted a briefing and panel discussion on the current

opportunities and challenges in aligning skills training with the needs of the 21st century

workforce.

The panel featured leaders from the education, business and government sectors in Wisconsin,

Virginia, Ohio and the U.S. Department of Labor who shared their perspectives on the best

practices and policies for supplying employers with a skilled workforce and providing students

with the training necessary to find employment.

More:Baldwin release

News -- Congressional briefing on NNMISenators Brown (D-OH) and Blunt (R-MO) and Congressman Reed (D-NY-23) and Kennedy (D-

MA-4) hosted a briefing on the National Network for Manufacturing Innovation (NNMI). The

briefing featured Commerce Secretary Pritzker and leaders from industry discussing the

activities of the pilot Manufacturing Innovation Institutes and the role of the Revitalize American

Manufacturing Innovation (RAMI) Act.

More:Manufacturing.gov

News -- McCaskill Op-EdSenator McCaskill (D-MO) recently wrote an op-ed arguing that its critical that Congress take

bipartisan action to renew the Export-Import Bank. Senator McCaskill described the Ex-Im

Bank as [o]ne of the most import tools in [the] toolkit which helps Missouri businesses boost

jobs and gives them a competitive edge to succeed internationally.

As the Senator noted, Export-Import Banks work is simple and incredibly valuable to American

business. The Bank supports American jobs by helping to finance foreign sales of U.S. products

through loan guarantees, direct loans, and credit insurance, all at no cost to taxpayers. The bank

actually earns revenue for the Treasury, including more than $1 billion in 2013 alone. Since

2009, the Export-Import Bank has supported $188 billion in U.S. exports and 1.2 million

American jobs. More than 3,400 small businesses rely on the bank to finance export deals

In Missouri, the Export-Import Bank has supported $1 billion in exports from 96 Missouri

companies since 2007. And nearly 85 percent of businesses supported by the Export-Import

Bank are small and medium-sized businesses.

More:McCaskill Op-Ed
http://www.mfgday.com/http://www.mfgday.com/http://www.mfgday.com/http://www.whitehouse.gov/sites/default/files/docs/manufacturingchartsfactsheet.pdfhttp://www.whitehouse.gov/sites/default/files/docs/manufacturingchartsfactsheet.pdfhttp://www.whitehouse.gov/sites/default/files/docs/manufacturingchartsfactsheet.pdfhttp://acetool.commerce.gov/inventoryhttp://acetool.commerce.gov/inventoryhttp://acetool.commerce.gov/inventoryhttp://www.baldwin.senate.gov/press-releases/baldwin-leads-career-and-technical-education-briefing-on-skills-training-and-the-needs-of-the-21st-century-workforcehttp://www.baldwin.senate.gov/press-releases/baldwin-leads-career-and-technical-education-briefing-on-skills-training-and-the-needs-of-the-21st-century-workforcehttp://www.baldwin.senate.gov/press-releases/baldwin-leads-career-and-technical-education-briefing-on-skills-training-and-the-needs-of-the-21st-century-workforcehttp://www.manufacturing.gov/event_091814.htmlhttp://www.manufacturing.gov/event_091814.htmlhttp://www.manufacturing.gov/event_091814.htmlhttp://www.mccaskill.senate.gov/media-center/news-releases/column-a-valuable-tool-for-missouri-businesshttp://www.mccaskill.senate.gov/media-center/news-releases/column-a-valuable-tool-for-missouri-businesshttp://www.mccaskill.senate.gov/media-center/news-releases/column-a-valuable-tool-for-missouri-businesshttp://www.mccaskill.senate.gov/media-center/news-releases/column-a-valuable-tool-for-missouri-businesshttp://www.manufacturing.gov/event_091814.htmlhttp://www.baldwin.senate.gov/press-releases/baldwin-leads-career-and-technical-education-briefing-on-skills-training-and-the-needs-of-the-21st-century-workforcehttp://acetool.commerce.gov/inventoryhttp://www.whitehouse.gov/sites/default/files/docs/manufacturingchartsfactsheet.pdfhttp://www.mfgday.com/


4/7

Report -- The Shifting Economics of Global ManufacturingA new report from the Boston Consulting Group (BCG) identifies the United States as a rising

global star of manufacturing. The report finds that Chinas estimated manufacturing-cost

advantage over the U.S. has shrunk to less than 5 percent and [c]ost structures in the U.S.

improved more than in all of the other 25 largest exporting economies.

More:BCG report

3. SECTOR DATA

==================================

Purchasing Managers Index (PMI)September PMI was 56.6, a decrease of 2.4 from the August reading.

The PMI is a widely watched measure of aggregate manufacturing strength. PMI is based on a

survey that asks purchasing managers if Inventories, Supplier Deliveries, Employment,

Production, and New Orders have gone up or down that month. Results above 50 indicate

growth.

For September, Inventories read 51.5 (-0.5 on August), Supplier Deliveries read 52.2 (-1.7),

Employment read 54.6 (-3.5), Production read 64.6 (+0.1), and New Orders read 60.0 (-6.7). This

data is in chart form below. October figures will be released on November 3, 2014.

60.0

64.6

54.6

52.2

51.5

56.6

New orders

Production

Employment

Supplier

deliveries

Inventories

PMI

Change on

prior month

-2.4

-0.5

-1.7

-3.5

+0.1

-6.7

More:ISM
https://www.bcgperspectives.com/content/articles/lean_manufacturing_globalization_shifting_economics_global_manufacturing/https://www.bcgperspectives.com/content/articles/lean_manufacturing_globalization_shifting_economics_global_manufacturing/https://www.bcgperspectives.com/content/articles/lean_manufacturing_globalization_shifting_economics_global_manufacturing/http://www.ism.ws/ismreport/mfgrob.cfmhttp://www.ism.ws/ismreport/mfgrob.cfmhttp://www.ism.ws/ismreport/mfgrob.cfmhttp://www.ism.ws/ismreport/mfgrob.cfmhttps://www.bcgperspectives.com/content/articles/lean_manufacturing_globalization_shifting_economics_global_manufacturing/


5/7

EmploymentPreliminary estimates by the Bureau of Labor Statistics show that manufacturing employment

was up 4,000 in August, at a seasonally adjusted 12.2 million.

The below chart shows the total number of manufacturing employees over the last ten years in

millions of workers, as well as the month-on-month change in manufacturing employment overthe last six months in thousands. Both numbers are seasonally adjusted.

11

12

13

14

15

'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14Manufacturingemployees,

millions

+9 +15 +21 +24

-4

+4

Apr May Jun Jul Aug Sep

Month-on-month change, thousands

More:BLS

Fed DataThe Fed publishes monthly data on industrial production and capacity utilization. Industrial

production is represented as an index where the 2007 level equals 100. Capacity utilization is

shown as percent of capacity.

100.2

77.2

75

76

77

78

79

96

97

98

99

100

101

Mar Apr May Jun Jul Aug

Manufacturingcapacity

utilization

Manufacturing

production

Manufacturing production Manufacturing capacity utilization

In addition to the Feds national data, six of the twelve Federal Reserve regional branches

publish monthly updates on manufacturing conditions in their region. Because each branch

uses different questions and methodology, interregional comparisons are not suggested.

More:Fed
http://data.bls.gov/timeseries/CES3000000001http://data.bls.gov/timeseries/CES3000000001http://data.bls.gov/timeseries/CES3000000001http://www.federalreserve.gov/releases/g17/current/http://www.federalreserve.gov/releases/g17/current/http://www.federalreserve.gov/releases/g17/current/http://www.federalreserve.gov/releases/g17/current/http://data.bls.gov/timeseries/CES3000000001


6/7

New York Fed (NY state, 12 northern NJ counties, and Fairfield County in CT)

[B]usiness activity expanded at a robust pace for New York manufacturers. The headline

general business conditions index rose thirteen points to 27.5, a multiyear high.

More:NY Fed

Philadelphia Fed (eastern PA, southern NJ, and DE)

Firms responding to the Manufacturing Business Outlook Survey indicated continued growth in

the regions manufacturing sector in September. Although the current activity index fell from its

relatively high reading in August, the other broad indicators increased from their readings last

month. The surveys indicators for future manufacturing conditions reflect general optimism

about growth in activity and employment over the next six months. The diffusion index for

current general activity fell from a reading of 28.0, its highest reading since March 2011, to 22.5

this month.

More:Philly Fed

Richmond Fed (DC, MD, NC, SC, Virginia & most of WV)

Fifth District manufacturing activity continued to grow at a moderate pace in September

Overall, manufacturing conditions strengthened in September. The composite index formanufacturing moved to a reading of 14 following last month's reading of 12.

More:Richmond Fed

Chicago Fed (southern WI, IA, northern IL, northern IN, and southern MI)

The Chicago Fed Midwest Manufacturing Index is currently suspended, while it undergoes a

process of data and methodology revision in 2014. The next release is preliminarily scheduled

for November 26, 2014.

More:Chicago Fed

Kansas City Fed (western MO, NE, KS, OK, WY, CO & northern NM)

[G]rowth in Tenth District manufacturing activity edged higher, and producers expectations forfuture activity maintained their recent solid levels. The month-over-month composite index

was 6 in September, slightly higher than 3 in August but lower than 9 in July.

More:Kansas City Fed

Dallas Fed (TX, northern LA and southern NM)

Texas factory activity increased again in September The production index, a key measure of

state manufacturing conditions, rose markedly from 6.8 to 17.6, indicating output grew at a

faster pace than in August.

More:Dallas Fed
http://www.ny.frb.org/survey/empire/empire2014/2014_09Report.pdfhttp://www.ny.frb.org/survey/empire/empire2014/2014_09Report.pdfhttp://www.ny.frb.org/survey/empire/empire2014/2014_09Report.pdfhttp://www.phil.frb.org/research-and-data/regional-economy/business-outlook-survey/2014/bos0914.pdfhttp://www.phil.frb.org/research-and-data/regional-economy/business-outlook-survey/2014/bos0914.pdfhttp://www.phil.frb.org/research-and-data/regional-economy/business-outlook-survey/2014/bos0914.pdfhttps://www.richmondfed.org/research/regional_economy/surveys_of_business_conditions/manufacturing/2014/pdf/mfg_09_23_14.pdfhttps://www.richmondfed.org/research/regional_economy/surveys_of_business_conditions/manufacturing/2014/pdf/mfg_09_23_14.pdfhttps://www.richmondfed.org/research/regional_economy/surveys_of_business_conditions/manufacturing/2014/pdf/mfg_09_23_14.pdfhttp://www.chicagofed.org/webpages/research/data/cfmmi/release_dates.cfmhttp://www.chicagofed.org/webpages/research/data/cfmmi/release_dates.cfmhttp://www.chicagofed.org/webpages/research/data/cfmmi/release_dates.cfmhttps://kansascityfed.org/publicat/research/indicatorsdata/mfg/pdf/2014Sep25mfg.pdfhttps://kansascityfed.org/publicat/research/indicatorsdata/mfg/pdf/2014Sep25mfg.pdfhttps://kansascityfed.org/publicat/research/indicatorsdata/mfg/pdf/2014Sep25mfg.pdfhttp://www.dallasfed.org/microsites/research/surveys/tmos/2014/1409/tmos1409.pdfhttp://www.dallasfed.org/microsites/research/surveys/tmos/2014/1409/tmos1409.pdfhttp://www.dallasfed.org/microsites/research/surveys/tmos/2014/1409/tmos1409.pdfhttp://www.dallasfed.org/microsites/research/surveys/tmos/2014/1409/tmos1409.pdfhttps://kansascityfed.org/publicat/research/indicatorsdata/mfg/pdf/2014Sep25mfg.pdfhttp://www.chicagofed.org/webpages/research/data/cfmmi/release_dates.cfmhttps://www.richmondfed.org/research/regional_economy/surveys_of_business_conditions/manufacturing/2014/pdf/mfg_09_23_14.pdfhttp://www.phil.frb.org/research-and-data/regional-economy/business-outlook-survey/2014/bos0914.pdfhttp://www.ny.frb.org/survey/empire/empire2014/2014_09Report.pdf


7/7

U.S. Manufacturing Technology Orders (USMTO)July U.S. manufacturing technology orders totaled $354.6 million, down 11.5% from June, and

down 1.4% when compared with July 2013.

With a year-to-date total of $2,711.4 million, 2014 is down 2.3% compared with 2013.

These numbers and all data in this report are based on the totals of actual data reported by

companies participating in the USMTO program. The chart below shows year-over-year change

and total orders on a national and regional basis.

na

+14.9

na

-21.9

-5.4

na

-11.5

West

South Central

North Central-West

North Central-East

Southeast

Northeast

Total 354.6

na

na

91.3

na

65.1

na

Year-over-year

change (%)

July

orders ($m)

More:AMT

4. ABOUT THIS NEWSLETTER==================================

This update is provided by the Office of U.S. Senator Chris Coons on behalf of the Manufacturing

Jobs for Americainitiative. For more information, visitcoons.senate.gov/manufacturingor

[email protected][email protected].
http://www.amtonline.org/newsroom/AMTPressRoom/september82014usmtonewsreleaseforjulymanufacturingtechnologyorders.htmhttp://www.amtonline.org/newsroom/AMTPressRoom/september82014usmtonewsreleaseforjulymanufacturingtechnologyorders.htmhttp://www.amtonline.org/newsroom/AMTPressRoom/september82014usmtonewsreleaseforjulymanufacturingtechnologyorders.htmhttp://coons.senate.gov/manufacturinghttp://coons.senate.gov/manufacturinghttp://coons.senate.gov/manufacturingmailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://coons.senate.gov/manufacturinghttp://www.amtonline.org/newsroom/AMTPressRoom/september82014usmtonewsreleaseforjulymanufacturingtechnologyorders.htm

Documents

Manufacturing Jobs for America Update - September 2014