Oct022015
Posted at 10:39 AM
“The rumors of the demise of the U.S. manufacturing industry are greatly exaggerated.” Elon Musk
Elon Musk was probably trying to be clever when he made that quip about American manufacturing. But, that play on Mark Twain’s famous quote only tells half the story. Not only are the rumors of U.S. manufacturing’s demise exaggerated, they are currently a complete fiction. Manufacturing has experienced a resurgence all across the country, creating high-paying jobs in innovative areas and bolstering economic growth at a staggering rate. Manufacturing has the largest multiplier effect of any part of the economy. For every $1.00 spent in manufacturing, the sector generates $1.32 for the U.S. economy. U.S. manufacturing comprises 12.5 percent of U.S. GDP and, taken alone, would be the 8th largest economy in the world. That’s why supporting American manufacturing has been a major priority for President Obama, Secretary Pritzker, and the Economic Development Administration (EDA).
In addition to spearheading the President’s Investing in Manufacturing Communities Partnership (IMCP) initiative, EDA supports advancing manufacturing through its grants programs. In fiscal year 2015, EDA invested in more than 50 manufacturing-related projects totaling $62 million. That support takes many forms – it might be upgrading infrastructure serving a manufacturer, funding a facility to house a manufacturing plant, or supporting the development of a facility or program to train workers.
On the first Friday in October of every year (October 2 this year), hundreds of manufacturers across the nation participate in Manufacturing Day by hosting open houses, public tours, career workshops and other events to showcase the importance of manufacturing. In honor of Manufacturing Day this year, Deputy Assistant Secretary of Commerce for Economic Development Matt Erskine traveled to Brooklyn to announce a $2 million EDA grant to the Brooklyn Navy Yard Development Corporation to create space for manufacturers and startups. EDA’s investment will renovate two floors of Building 77 at the Brooklyn Navy Yard industrial suites to ready them for growing companies as part of the redevelopment and renovation of this historic former naval stores building constructed in 1941. The renovated space will meet LEED certification and is expected to support medium-sized start-up and expanding manufacturing tenants. According to grantee estimates, this project will create more than 300 manufacturing jobs in the region and generate more than $2 million in private investment.
On September, EDA provided $1.4 million to the Florida Institute of Technology for the Center for Advanced Manufacturing and Innovative Design, which will serve corporate partners of all sizes seeking cost-effective solutions to their manufacturing and engineering design challenges. According to grantee estimates, this project will create nearly 600 manufacturing jobs at 14 different companies in the Melbourne, Florida region.
In May, EDA invested $2.2 million in Ogden, Utah to help an Ogden-based company bring its advanced manufacturing operations back to the U.S. from Asia, creating 175 jobs and generating $12 million in private investment for the region.
These are just a few examples of thousands of projects EDA has supported to help advance manufacturing. EDA’s support of manufacturing spans its entire 50 year history and will continue into its future.
On October 21 and 22nd, EDA will host its 2nd annual IMCP Summit where designated communities will have an opportunity to join together to share best practices and meet one-on -one with other federal agencies to learn about additional federal resources.
