So what exactly does President Obama have planned for the manufacturing industry, both this year and beyond?
Manufacturing found itself getting a good deal of attention during President Obama’s State of the Union address last week.
Some of the key highlights that manufacturers will want to take note of:
- President Obama pledged to create six new high-tech manufacturing hubs in the U.S. this year
- He stressed the importance of taking the lead in the race against other countries for the new wave of high-tech jobs in the industry, and
- He called for a roll back of cuts to federal research and development.
As far as the six new manufacturing hubs were concerned, the President was a little light on the specifics. He didn’t give any insight into where the hubs will be located, and he also remained mum as to what their primary objectives and focus would be once they were completed.
The hubs are partnerships between public and private interests, which work on the cutting edge of technology. They are officially known as Institutes for Manufacturing Innovation.
The six new additions would join already existing hubs in Raleigh, NC, and Youngstown, OH.
Been there before
Of course, industry is certainly no stranger to playing the role of a political football on occasion.
During last year’s State of the Union address, President Obama drew plenty of attention to the role that the Youngstown hub has played in furthering the cause of 3-D printing.
He highlighted the facility’s journey from a “once-shuttered warehouse” to its present as a “state-of-the art lab where new workers are mastering the 3-D printing that has the potential to revolutionize the way we make almost everything.”
Manufacturers not happy
Not everyone was thrilled with what the president had to say about manufacturing.
In his official statement following the State of the Union address, Alliance for American Manufacturing (AAM) President Scott Paul noted that, “This is the third consecutive State of the Union in which there has been a strong rhetorical focus on manufacturing, and that’s welcome.”
But he went on to say, “The progress, despite the rosy picture painted by the President, has been painfully slow. And in some cases, such as the trade deficit with China, we’ve seen backsliding.”
He also criticized the President for leaving four very important items off of his manufacturing to-do list for 2014. They were:
- selecting a currency manipulator for China
- strengthening Buy America compliance among federal agencies to keep U.S. tax dollars working primarily for the benefit of those in this country and not around the globe
- making certain the U.S. isn’t exporting energy products to non-market economies in any way that might inadvertently damage domestic firms and their advantage in the field, and
- starting an effort to reduce the U.S. trade deficit with China by at least half (in this case, doubling exports wouldn’t serve much of a purpose if imports continue to outpace them).
Scott also dismissed the notion that half of CEOs were considering re-shoring jobs back to America.
Even though the topic may be on their minds, “few have actually moved their jobs back,” he said in the statement.
One of the last items he targeted was the perception that manufacturing had turned a corner and that everything was now doing great as far as job creation was concerned.
“The U.S. is creating manufacturing jobs consistently for the first time since the 1990s,” he agreed. “But we haven’t even come close to reclaiming the jobs that were shed during the recession.”
Another group speaks out
For their part, Republicans weren’t over the moon with the President’s address, either.
They took particular issue with his perceived willingness to achieve his goals with or without Congress by his side.
“The president must understand his power is limited by our Constitution, and the authority he has doesn’t add up to much for those without opportunity in this economy,” said House Speaker John Boehner in his response to the State of the Union.
So what did you think about the President’s speech and his plan for manufacturing? Did he do enough and will he be able to deliver on the promises he made?
Be sure to share your thoughts in the comments section below.
