[House Hearing, 114 Congress]
[From the U.S. Government Publishing Office]
THE NEW FACES OF AMERICAN MANUFACTURING
=======================================================================
HEARING
BEFORE THE
COMMITTEE ON SMALL BUSINESS
UNITED STATES
HOUSE OF REPRESENTATIVES
ONE HUNDRED FOURTEENTH CONGRESS
SECOND SESSION
__________
HEARING HELD
MAY 12, 2016
__________
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Small Business Committee Document Number 114-060
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HOUSE COMMITTEE ON SMALL BUSINESS
STEVE CHABOT, Ohio, Chairman
STEVE KING, Iowa
BLAINE LUETKEMEYER, Missouri
RICHARD HANNA, New York
TIM HUELSKAMP, Kansas
CHRIS GIBSON, New York
DAVE BRAT, Virginia
AUMUA AMATA COLEMAN RADEWAGEN, American Samoa
STEVE KNIGHT, California
CARLOS CURBELO, Florida
CRESENT HARDY, Nevada
NYDIA VELAZQUEZ, New York, Ranking Member
YVETTE CLARK, New York
JUDY CHU, California
JANICE HAHN, California
DONALD PAYNE, JR., New Jersey
GRACE MENG, New York
BRENDA LAWRENCE, Michigan
ALMA ADAMS, North Carolina
SETH MOULTON, Massachusetts
MARK TAKAI, Hawaii
Kevin Fitzpatrick, Staff Director
Jan Oliver, Chief Counsel
Michael Day, Minority Staff Director
C O N T E N T S
OPENING STATEMENTS
Page
Hon. Steve Chabot................................................ 1
Hon. Nydia Velazquez............................................. 2
WITNESSES
Mr. John Ratzenberger, Fiddlers Bay Productions, Milford, CT..... 4
Mr. Dustin Tillman, President and CEO, Elite Aviation Products,
Irvine, CA..................................................... 7
Ray Perren, Ph.D., President, Lanier Technical College, Oakwood,
GA, testifying on behalf of the Association for Career and
Technical Education............................................ 9
Ms. Kim Glas, Executive Director, BlueGreen Alliance, Washington,
DC............................................................. 11
APPENDIX
Prepared Statements:
Mr. John Ratzenberger, Fiddlers Bay Productions, Milford, CT. 25
Mr. Dustin Tillman, President and CEO, Elite Aviation
Products, Irvine, CA....................................... 27
Ray Perren, Ph.D., President, Lanier Technical College,
Oakwood, GA, testifying on behalf of the Association for
Career and Technical Education............................. 32
Ms. Kim Glas, Executive Director, BlueGreen Alliance,
Washington, DC............................................. 38
Questions for the Record:
None.
Answers for the Record:
None.
Additional Material for the Record:
None.
THE NEW FACES OF AMERICAN MANUFACTURING
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THURSDAY, MAY 12, 2016
House of Representatives,
Committee on Small Business,
Washington, DC.
The Committee met, pursuant to call, at 11:00 a.m., in Room
2360, Rayburn House Office Building. Hon. Steve Chabot
[chairman of the Committee] presiding.
Present: Representatives Chabot, Hanna, Luetkemeyer,
Gibson, Radewagen, Knight, Curbelo, Hardy, Kelly, Velazquez,
Chu, Hahn, Meng, Lawrence, Clarke, and Adams.
Chairman CHABOT. The Committee will come to order. Good
morning. We want to thank everyone for being with us today as
we discuss the present and future state of American
manufacturing.
Given the importance of manufacturing to our economy, I am
delighted to be holding this hearing and listening to the
testimony provided by our outstanding panel here this morning.
When people think of manufacturers, too often they think of
giant corporations with huge production facilities and steam
whistles commanding shift changes. The truth is that the vast
majority of American manufacturing is done by small businesses.
In fact, 99 percent of all manufacturers are categorized as
small.
Though they might be considered small, their effect on our
economy is enormous. Manufacturers in the United States employ
over 12 million people and directly contribute over $2 trillion
to our economy each year. We cannot underestimate their
indirect influence either. Every dollar spent on manufacturing
in America adds $1.37 to the economy, and a single
manufacturing job can lead to the creation of three to five
more jobs in other industries.
Without a doubt, manufacturing plays a vital role in
America's economic well-being. The economic force that is
American manufacturing is now facing a significant challenge--
preparing a workforce that can do the job.
According to the National Association of Manufacturers
(NAM), over the next decade, nearly 3.5 million manufacturing
jobs will likely be needed, and 2 million of those are expected
to go unfilled due to what is being referred to as the skills
gap.
There are two major contributing factors to this widening
gap: baby boomer retirements and economic expansion. An
estimated 2.7 million jobs are likely to be needed as a result
of retirements of the existing workforce, while 700,000 jobs
are likely to be created due to natural business expansion and
growth.
In addition to retirements and economic expansion, other
factors have contributed to the shortage of skilled workforce,
such as lack of science, technology, engineering and
mathematics, or STEM, skills among workers, and a gradual
decline of technical education programs in public high schools.
Frankly, another big problem plaguing American
manufacturing is its perception. As the old saying goes,
perception is reality. The things we build, the way we build
them, and the skills required to do so are significantly
different than in generations past. This is not your
grandfather's, or even your father's industry anymore. It is
high-tech. It is skills-based, and it provides good jobs with
good benefits that can provide for growing American families.
We must do a better job educating young people to improve
the perception of what manufacturing really is, and getting the
word out that manufacturing oftentimes, for the most part, is
clean, safe, and high-tech, rather than dirty and dangerous.
I am looking forward to hearing your thoughts on the
innovative ways that we can work together with academia, and
manufacturers, and former actors on Cheers, to address the
workforce development issues facing the next generation of
American manufacturers.
I would now like to yield to the Ranking Member, Ms.
Velazquez, of New York.
Ms. VELAZQUEZ. Thank you, Mr. Chairman, and thank you for
holding this important hearing.
Throughout much of the 20th century, American manufacturing
was the nation's economic engine. The country rose to its place
as a global economic superpower as customers clamored for the
latest American-made products. However, manufacturing sprawl in
the U.S. economy has changed considerably since then, but
today, we are seeing a manufacturing resurgence. Following
years of decline, U.S. manufacturers added 856,000 workers to
the payrolls in the last seven years. Moreover, the country's
exports, a key measure of manufacturing activity, has been
growing exponentially and are now at their highest level in
recent memory.
These are positive developments. With almost one-eighth of
our economy rooted in manufacturing, strengthening this sector
is vital to our country's overall economic health--and to job
growth for working families and the middle class.
Although this renaissance is promising for our nation,
there remain challenges that are preventing this sector from
reaching its full potential. According to the latest U.S.
Census Bureau data, small and medium-size businesses account
for 95 percent of world consumers, so we must ensure American
small manufacturers have access to this global market. As the
U.S. becomes an attractive destination for new manufacturing
facilities, workforce training programs must adapt to provide
the skills necessary for manufacturing jobs in the 21st
century. Greater federal investment in Science, Technology,
Engineering, and Math education will enhance domestic
manufacturing. Local and private sector apprenticeship programs
can prepare young people for careers in rapid growth areas.
For manufacturers everywhere, access to capital is a
persistent problem. This is especially true for smaller startup
firms that are on the cusp of fast growth. For these reasons, I
introduced the Scale-up Manufacturing Investment Company Act.
This legislation will expand investment opportunities for small
and emerging manufacturers. We must also remember that economic
growth depends on innovation. Research and development fuels
technological advancement, and it is critical in fostering new
jobs.
Unfortunately, the federal policy shift from domestic
investment to deficit reduction could have severe implications
for U.S. competitiveness in international markets and for
manufacturing jobs. All of these and other challenges point to
a need for concerted efforts at the federal, state, and city
levels. In recent years, House Democrats have united behind the
``Make It in America'' agenda, a series of proposals to
strengthen and expand our manufacturing base. These efforts are
important, but they can only succeed if they are guided by
insight from the actual businesses. That is what makes today's
hearing so important. As such, I would like to thank you for
being here today and sharing your experiences.
Thank you, Mr. Chairman. I yield back.
Chairman CHABOT. Thank you. The gentlelady yields back.
I will now, before introducing our panel, explain briefly
our rules. We operate on the 5-minute rule. You will each get 5
minutes. We will get 5 minutes when you are finished to ask
questions, and we have a lighting system to kind of assist you
there. You have 5 minutes. The green light will be on for 4.
The yellow light will come on when there is a minute to go, and
then the red light will come on and we will ask you to wrap up,
if at all possible, within that time. We will give you a little
leeway.
Now, to introduce our distinguished panel here today, our
first witness is multi-Emmy-nominated actor, director,
producer, author, and staunch Made in America advocate, John
Ratzenberger. While he may be best known for his role as Cliff
Clavin on the television show Cheers, or for his voice acting
in Pixar movies, John has spent the better part of the past 2
decades passionately campaigning about how important it is for
Americans to recognize the needs for and to provide the
training to produce skilled laborers. To that end, he produced
and starred in the Travel Channel series Made in America, which
highlighted American-made goods and the workers who build them.
With speaking engagements across the country, he continues to
encourage the reintroduction of trade, mechanics, shop, and
carpentry skills back into the schools so that we can marry
human talent and skills to today's innovative society in order
to create a better America. Thank you for being with us today,
Mr. Ratzenberger.
Up next will be Dustin Tillman, Founder, President, and CEO
of Elite Aviation Products in Irvine, California. Elite is an
aircraft component design, engineering, and manufacturing
company committed to providing cost-competitive, quality
manufacturing, and customer-centric solutions to its clients. A
graduate of the University of California-Los Angeles where he
received his Bachelor of Arts degree in Economics and Political
Science, Dustin entered the supply chain management industry
and quickly attained a role of director of supply chain
management for Zodiac Airspace, a multibillion dollar airspace
company. More recently, he maintained a role in the business
management sector for Panasonic Avionics Corporation, where he
oversaw the strategic and tactical performance, as well as the
business relationships of dozens of worldwide partners. We
thank you also for being here this morning, Mr. Tillman.
Our next witness will be Dr. Ray Perren, president of
Lanier Technical College in Oakwood, Georgia. He is testifying
on behalf of the Association for Career and Technical
Education. Dr. Perren is completing his 36th year as an
educator, and is currently leading efforts to construct a new
main campus for Lanier Tech in Hall County, Georgia. He
previously served as President of Wiregrass Georgia Technical
College, as Assistant Commissioner for Technical Education for
the Technical College System of Georgia, and is President of
East Central Technical College in Fitzgerald, and is Dean of
Academic Affairs for DeVry University's operations in Georgia
and North Carolina. His first 20 years as an educator were
spent in the Paulding County School System in Dallas, Georgia,
where he served as a teacher, elementary and middle school
principal, and as the district's superintendent of schools. We
thank you for being with us here this morning also, Dr. Perren.
And I would now like to yield to the Ranking Member, Ms.
Velazquez, to introduce our final witness.
Ms. VELAZQUEZ. Thank you, Mr. Chairman. It is my pleasure
to introduce Ms. Kim Glas, executive director of the BlueGreen
Alliance. Over the past 15 years, Ms. Glas has served in senior
leadership positions in the Obama Administration and the U.S.
House of Representatives, most recently serving as the deputy
assistant secretary for Textiles, Consumer Goods, and Materials
at the U.S. Department of Commerce. In that capacity, she
worked to improve the domestic and international
competitiveness of a wide array of products. She served for 10
years on Capitol Hill, working extensively on manufacturing,
trade, and economic policy issues for Congressman Mike Michaud
from Maine, and Congressman John LaFalce from New York.
Welcome. Thank you.
Chairman CHABOT. Thank you very much.
Mr. Ratzenberger, you are recognized for 5 minutes.
STATEMENTS OF JOHN RATZENBERGER, EMMY-NOMINATED ACTOR AND MADE
IN AMERICA ADVOCATE; DUSTIN TILLMAN, PRESIDENT & CEO, ELITE
AVIATION PRODUCTS; RAY PERREN, PRESIDENT,LANIER ECHNICAL
COLLEGE; KIM GLAS, EXECUTIVE DIRECTOR, BLUEGREEN ALLIANCE
STATEMENT OF JOHN RATZENBERGER
Mr. RATZENBERGER. Good morning, everybody, and thanks for
having me and inviting me up.
You are probably still wondering, what does he have to do
with manufacturing, this guy, this actor? I grew up in
Bridgeport, Connecticut. At the time, it was the jewel and the
crown of the industrial northeast. We pretty much made
everything there. We made ships. We made rifles. We made boats.
Bead chains for electric lights. As a matter of fact, evidence
is mounting more and more that the first mechanized air flight
took place there by a German immigrant named Gustave Whitehead
2 years before the Wright Brothers.
So that is the kind of town it was. Everybody had a skill.
I grew up amongst people who knew how to do things. All the
neighbors had skills. We never called a handyman into the house
because if you could not do it, your father could not do it,
your uncles, there was a neighbor. And everybody traded skills.
Whether it was carpentry or electronics, everybody knew how to
do something. As the years have gone on, we find that just the
opposite now is happening. It is very difficult to find someone
to lay bricks or to build cabinets, and we all know that. But
there is a reason that happened, and it is because early on
just after the sixties and into the seventies, we sort of got
the idea that everybody has got to go to college. I went to
college, but I can also build a house.
When I was 14 years old, I decided, I want to learn to
build a house and everything in it because I was surrounded by
people who knew how to use tools. And I did. So after college,
that is really what kept me alive was my carpentry skills. I
raised my children in the same say saying get a skill that
nobody can take from you, and also a skill that you can go
anywhere in the world and tomorrow you will have a job. But
when we were kids, also it was different because we were free-
range children. On Saturday it was, what are you doing inside?
Get out. Go play. Well, that was it. That was the order. There
was no structure to it. There was no helicopter parenting. We
went outside and played. We built treehouses. We rode off on
our bicycles 5, 10 miles from home. We did not even know our
own telephone number. But, you know, the chain on the bicycle
breaks, you have got to be home before the streetlights are on,
well, you have got to fix that bicycle chain. So we thought we
were playing, but in actuality, we were problem-solving every
single day. When you are building a treehouse, you have got to
put the ladder on the side of the tree and you knew very early
on that you did not use finishing nails to put those ladders on
because it popped out and before you know it you were in the
hospital with a broken arm. It was part of the deal.
But once again, we were problem-solving. We have taken that
away from our children now. They do not grow up problem-solving
anymore. We cosset at them and make sure that everything is
okay in their world, and then when they get to college they
have nervous breakdowns because things are not going their way.
We did not get trophies for just showing up, and that was the
big difference.
But the most dangerous thing we have done for our
civilization is that, again, in the seventies, you know, 30, 40
years ago, we canceled shop classes and we canceled home ec
classes because whether it was political experimentation,
social experimentation, they said all boys and girls are the
same and girls should not be in the kitchen and boys should not
have this advantage, so we took those skills away from our kids
and nowhere along the line do they learn those skills,
especially if they do not have a father or an uncle to teach
them that. Again, I was a carpenter and I made sure my kids
knew how to handle tools, and to this day they are doing real
well because of it because you also learn common sense when you
use tools. But we took that away from the kids, too.
So now we are in a situation where there are 600,000 jobs
available in manufacturing. That is just in manufacturing.
There are hundreds of thousands of jobs available in
construction all over the country. But at one time we were an
agrarian society. We grew up on farms or near farms. You learn
the advantage of using tools because you had to. You could not
call 1-800 fix my barn door when it blew off in a storm at 2:00
in the morning. You dealt with it yourself and you saw your
parents dealing with it and you knew that was possible in your
life. So you stretched out more. Even during World War II, a
lot of the accounts I read said we won it because if a Jeep
broke down, at least 9 out of 10 people standing around knew
how to fix it. Now that is not the case because we have so many
people now, you know, we moved into cities since the Industrial
Revolution, but even then we had shop classes to keep up with
the Industrial Revolution. But we canceled those, so now the
kids growing up in a lot of the cities, and if they do not have
the advantage of growing up on farmland or near the sea,
everything is done for you. Someone else picks up your garbage.
Someone fixes the heating in your building. So your mindset
growing up is, oh, somebody else will take care of it. That is
not healthy for our civilization. We have to get back to the
``I am capable of doing that. I can fix that. I can build
that.'' So we must reinstate shop classes back in the schools.
There has got to be a way of doing that. There is actually
several ways of doing it.
The disadvantage is that we are not going to have works
showing up. The average age is 58 years old right now of people
that know how to make things in the United States of America.
When they are retired, that is it. We also have 70 percent of
everyone incarcerated in the United States is a high school
dropout. When the shop classes were canceled at schools
nationwide, the dropout rate went up 30 percent because these
kids had nothing to do. You were not offering them anything to
do. Those of you in the room that know how to fix things, make
things, you know a lot of self-esteem goes along with that. You
do not need a trophy. You do not need someone to show up and
say, here, good job for tying your shoes. Because you built
that coffee table. You fixed that roof. Your self-esteem is
just there. It is married to the accomplishment of making
something with your very own hands.
When I cross the country and I talk about this, and I have
been doing it now for 15, 20 years, because when I was doing my
show Made in America there was one thing, I went to a company
that was making sports equipment. A specific sporting
equipment. I do not want to say what it is because the CEO will
get angry at me, but the man who was going around fixing all
the machines, I was talking to him and I said, so you are
probably pretty close to retirement, huh? He said, yeah, a
couple of years. I said, what are you going to do? He said,
well, go fishing, this and that. We started talking. I said,
well, who are you training? He said, well, there is nobody to
train. Kids come out of high school. They cannot even read a
ruler because they do not teach them to use some tools. There
is nobody coming up after this guy. This fellow's job was to
fix the machines when they broke down. I said, what happens
when the machines break down and you are not here? He said,
they are going to have to fly in somebody from the company that
made the machine. I said, that could take a couple of weeks. He
said, yeah. That machine will be shut down for at least a
couple of weeks, maybe three. Productivity stops and the orders
stop because if you cannot deliver that product to the
customer, they are going to go somewhere else for that product.
That company could fail just for the want of that one man who
knows how to use tools. I found that all over the country. That
is what made me start, because I do love this country dearly. I
lived overseas for 10 years, and I know what a great country
this is. I know that it is the strength of America that keeps
the world at peace. The strength of America is manufacturing.
Manufacturing is to America what spinach is to Popeye.
Chairman CHABOT. Mr. Ratzenberger, I think we will conclude
with that if you do not mind. We will get a little longer with
questions.
Mr. RATZENBERGER. Oh, does this mean I am 3 minutes over?
Chairman CHABOT. Yeah. Yeah, it does.
Mr. RATZENBERGER. I thought I had 3 more minutes to go. I
thought, geez, I thought I have been talking more than 5
minutes. Well, thank you.
Chairman CHABOT. Thank you very much. You will have more
time. We will just get to questions.
Mr. RATZENBERGER. I do not need it. You are fine. Thanks.
Chairman CHABOT. Mr. Tillman, you are recognized for 8
minutes and 17 seconds, apparently.
Mr. TILLMAN. Thanks.
Chairman CHABOT. No, 5 minutes, if you can.
STATEMENT OF DUSTIN TILLMAN
Mr. TILLMAN. Thank you. Good morning, Chairman, Ranking
Member, and members of the Committee.
First off, wonderful remarks from the both of you. You hit
the nail on the head.
We are very proud, our company, to be an American
manufacturing company. I am proud to be a part of the reshoring
effort. We have been able to bring a lot of jobs back, and I am
also proud to say that we have been able to take work back from
China, believe it or not, by introducing some of these
efficiencies, a focus on innovation that you guys made
reference to.
We are doing a lot of exciting things and we are supporting
what is being referred to as the Second Golden Age of Aviation.
When I started the company in 2013, there were certainly
struggles that we faced. Struggles from a capital perspective
as was alluded to. Struggles from a human capital perspective
is what I want to talk about. But by far and away, the biggest
question that I got was, what the heck are you doing starting a
company manufacturing parts in America? And that is a travesty,
you know?
As John made reference to, I believe in the American Dream
as well. I believe in the spirit of America. Now is the time
for us to really reassert our dominance as a manufacturing
powerhouse that we once were. I think through Committees like
this, and through the testimony and some of the strategies and
policies that we can talk about, that we can apply this, and
not just for aerospace and defense companies like ours, but for
all businesses, because it is important and it needs to be a
priority.
When you talk about the working capital challenges, the
government has done some significant things. They have
introduced the Jobs Act. This was a very important piece of
legislation for us raising capital, articulating the message
that we have as an organization to grow, and making it a
successful vehicle for us to accomplish.
The human capital challenge is by far and away the biggest
one. People come to our facilities and they say, what is your
biggest struggle? Is it the machine tools? Is it the
facilities? No, it is finding good, qualified people. They do
not exist anymore in the numbers that they once have, and it is
a sad state of affairs right now.
I have to say, for as great of a country that we are with
regards to media, we do a horrible job demonizing manufacturing
these days. Nowadays it is the millennials that we need to
focus on. We need to make manufacturing cool. This is where we
found a tremendous success, really dedicating ourselves to
institutional folks from academia. You have to showcase the
exciting aspects of manufacturing, because it is exciting.
Nowadays when you walk into our facilities, it is like walking
into a new-tech environment. There is not the dingy machine
tools with grease everywhere. You are walking into an extension
of the cutting-edge of technology that is exciting. When you
watch these operators making parts nowadays, it is like
watching a thing of beauty. There is certainly art and there is
a lot of science behind it, and getting that message out there
is going to be important so that we do not fall short and have
this enormous generational gap affect our ability to remain
competitive.
For us, as an organization, we have had significant success
working with veterans. We founded a nonprofit called Elite
Veterans Initiative where we focus on not just providing
support to these folks, and there are over 500,000 unemployed
veterans today, I would argue the number is probably higher,
and I would also cite that veterans in general say that finding
a job is their biggest challenge getting out of the military.
This is a problem for us as a nation. These are folks who are
well trained. They have all the skillsets, the discipline, the
honor, integrity, that makes manufacturing, and business in
general, great. We need to embrace these individuals, and not
just by providing support, turkey dinners, but also training
and providing employment. We are proud to say that 10 percent
of our workforce is veterans, and this number is growing as we
grow.
I would also like to shed light on some of the legislation.
I think that traditionally, there has been a lot of focus on
small minority disadvantaged businesses, which were very
important, particularly in the sixties and seventies. We need
to take a fresh look at this legislation. We need to make sure
that it is evolving with the changing dynamics of the
marketplace.
I will speak from a supply chain guy for a second. To
remain competitive, the large folks out there--the Boeings, the
Northrop Grummans--they have to consolidate their supply
chains. Unfortunately, as part of that consolidation effort,
you are finding a lot of those businesses, once participants of
the supplier diversity initiative, going out of business. I
think we need to take another look at that. We need to not only
empower individuals, but also companies employing these
individuals because that is going to be a recipe for long-term
success in my opinion. This is what I have experienced growing
a business and struggling to do so. But we are growing. We have
three sites in just over 2-1/2 years, and we are, again, very
proud to be a part of the reshoring effort. The good news is,
like I said before, we are in the midst of the second golden
age of aviation. There is more booked, undelivered work now
than at any time in the history of flight. The time is now,
ladies and gentlemen, to really reassert ourselves as the
dominant manufacturing powerhouse that America once was. Thank
you very much.
Chairman CHABOT. Thank you very much. I appreciate it.
Dr. Perren, you are recognized for 5 minutes.
STATEMENT OF RAY PERREN
Mr. PERREN. Good morning, Chairman Chabot, Ranking Member
Velazquez, and members of the Committee. I appreciate the
opportunity to come before you today to discuss the changing
face of American manufacturing and the need to assure that we
have a well-trained workforce. I have so much I would like to
say, but in respect of the 5-minute rule, I am going to give
you the Reader's Digest version.
I think it is a given that the face of manufacturing has
changed greatly in the last few decades. In fact, manufacturing
has probably changed as much from the technological revolution
as it did from the industrial revolution back in the early
1800s. Although the face of manufacturing is changing, the
perception of manufacturing has not changed. Too often people
think of manufacturing jobs as being physically repetitive work
carried out in dirty environments with little or no ability to
use critical thinking to improve job performance. Nothing could
be further from the truth.
Many, if not most, of our country's manufacturers utilize
highly technical equipment, practice lean manufacturing and
quality philosophies that require the workplace to be clean,
safe, and highly organized, and encourage critical thinking.
Yes, manufacturing has changed. It is important to note that
educational programs are also changing in order to meet the
needs to today's manufacturers.
Another lingering perception is that in order to be
successful in this country, one must have a 4-year degree in a
white collar job. While there will always be a demand for
individuals with 4-year college degrees, the truth is that most
of today's high-tech jobs can be filled by individuals with 2-
year degrees or shorter certificates awarded by our nation's
technical colleges. These technical colleges are our nation's
pipeline to assure manufacturers have the workforce needed to
thrive in the United States. Most technical colleges are
regionally accredited, connected to business and industry, and
allow students to prepare for good-paying jobs and without
accumulating large amounts of debt. And that is a real win-win.
As has already been said here today, according to the
National Association of Manufacturers, over 98 percent of our
nation's 250,000 manufacturers are considered small businesses.
Three-fourths of all manufacturers employ fewer than 20 people.
Manufacturers are in almost every community across the
nation. The average manufacturing worker in this country earns
over $52,000 per year, and that is nearly $80,000 per year when
benefits are factored in. The overwhelming majority of these
workers participate in health insurance programs through their
employer.
Over the next decade, nearly 3.5 million manufacturing jobs
will be needed. Although manufacturers provide excellent pay
and benefits, 2 million of these nearly 3.5 million jobs are
likely to go unfilled due to the skills gap. We have good jobs,
and today's young people represent the brightest generation
this country has ever raised. So what is the disconnect?
I believe that it goes back to the perception I have
already mentioned, that our longstanding belief that one must
have a 4-year degree in a white collar job to achieve the
American Dream. More discussions, such as the ones that we are
having here today are necessary to change this perception. We
need events to encourage this discussion, such as the
Manufacturers Forum held by the Greater Hall Chamber of
Commerce in Gainesville, Georgia, which bring together
community leaders, high school administrators and counselors,
business leaders, parents and students. We need creative
outside-the-box solutions, such as the partnership between
Lanier Tech, the Georgia Governor's Office of Student
Achievement, the Hall County and Gainesville City schools, and
Goodwill of North Georgia, which provide an alternate pathway
to high school completion. This program has provided
outstanding results and has allows a group of young people to
go from being potential high school dropouts to skilled welders
working for manufacturers such as Kubota.
We need community involvement, as typified by the Mahalo
spirit found at King's Hawaiian. This manufacture is so tied in
with the community that people everywhere see the quality of
life enjoyed by its employers.
While I believe that local efforts are essential, I also
believe that the Congress has a unique opportunity to support
technical colleges and workforce development as you reauthorize
the Carl D. Perkins Act. I also ask that you consider funding
year-round Pell. Just as manufacturers and other employers
never stop operations for more than a week or two, technical
colleges operate on a year-round calendar. Manufacturers and
businesses are looking for a steady stream of graduates, not
just in May.
Most importantly, I think it is the spirit that has been
expressed here already, I think that Congress should look at
taking lead in creating a sputnik moment for technical and
career education. Just as the nation got behind the effort to
become the world's leader in space exploration in the 1950s and
'60s, this nation needs to get behind the effort to secure our
role as the world's leading manufacturer.
I would like to ask Congress to consider providing funds to
improve our nation's education infrastructure. Many of our
technical colleges were built in the 1960s, and although these
colleges work to keep equipment up-to-date, some equipment is
in service much too long due to lack of resources. Just as our
nation's highways and bridges form critical transportation
infrastructure, education infrastructure provides the pathway
from today into the future.
Finally, every time I come to this place I am in awe. I am
awe of the great history of this place. I am in awe of the
leadership that this nation has been blessed with. I am in awe
of the work that you do every day. I ask that you be in awe of
us. Be in awe of the amazing work that happens in our nation's
technical colleges. Be in awe of the life-changing work we do
in preparing young people and adults to enter the workforce
with skillsets that are in high demand. Being that all the
changes that we are affecting are generational in nature,
grandchildren who are not even born today will have a better
quality of life thanks to the work that is being done by our
technical colleges with their grandparents today.
In conclusion, I appreciate the time you have afforded me
and this panel to discuss the new faces of American
manufacturing. I ask for your help and for the help of the
entire business and manufacturing community in ensuring our
nation's technical colleges provide the trained workforce we
need in order for our economy to prosper for generations to
come. Thank you.
Chairman CHABOT. Thank you very much.
Ms. Glas, you are recognized for 5 minutes.
STATEMENET OF KIM GLAS
Ms. GLAS. Thank you. Good morning, Chairman, Ranking
Member, and the distinguished members of the House Small
Business Committee. My name is Kim Glas, and I am the executive
director of the BlueGreen Alliance, and we are a partnership of
labor unions and environmental organizations committed to
creating that fair economy for our manufacturing base.
I am delighted that you are holding a hearing like this
today, and I am really honored to be asked to participate on
behalf of all my organizations.
At the center of the BlueGreen Alliance work is
strengthening American manufacturing. Driving new business and
quality job creation across a clean energy economy. The
BlueGreen Alliance Foundation helps to fulfill that mission
because we directly work with manufacturers, a lot of small
manufacturers across the country, to enter those clean energy
economy supply chains, and providing assistance to those
manufacturers of all sizes to participate in some of these
emerging sectors.
But I would be remiss to not mention some of the challenges
that our manufacturers across this country, both small and
large, are facing. The United States lost millions of
manufacturing jobs between 2000 and 2014, and of the more than
2 million jobs lost during the Great Recession of 2007 to 2009,
less than half of those have been recovered. Lack of adequate
resources to enforce our trade rules, currency manipulation,
and failed trade policies all risk turning back the clock and
further exasperating these threats to our manufacturing base.
But while there are challenges, we do see opportunity. Domestic
and global markets for energy efficiency, renewable energy,
clean transportation, and infrastructure are growing, and our
small and medium-size companies that we are working with are
looking at those opportunities to grow their business here at
home.
Here is an example. As part of our larger national
initiative, we have been working on a housing initiative
regarding retrofitting low-income housing across this country.
There is a transformation in retrofitting low-income housing.
We have identified more than 1,000 U.S. manufacturers and
distributors of products ranging from insulation, to energy
efficiency lighting, to HVAC systems, looking for opportunities
to grow in the United States and globally. Industrial
manufacturers of all sizes are already are investing in energy
efficiency and to help keep down their costs, but an additional
15 to 30 percent reduction over all energy consumption can be
achieved through further deployment of industrial energy
efficiency with onsite renewable technologies, and if we are
taking advantage of some of these efficiencies, that creates
opportunities for small and medium-size manufacturers to make
those technologies here at home and making our businesses much
more globally competitive.
Public infrastructure projects utilize significant
financial resources, whether it is building bridges, tunnels,
or transit systems. When you use inputs sourced from countries
with weak environmental or labor standards, that has long-
lasting implications, not only on our workforce here but with
higher greenhouse gas emissions, toxic air emissions, and
potential impacts to the safety and the reliability of the
materials used for public infrastructure. We believe strong
procurement standards--Buy America, Buy Clean--for publicly-
financed infrastructure projects will help make sure that these
projects are more domestically sourced and provide enhanced
opportunities for smaller U.S. manufacturers to break in and
further grow their businesses.
Finally, the automotive industry has regained its
competitive position globally and brought back over 250,000
direct manufacturing jobs building new and more fuel-efficient
vehicles, advanced auto components, and innovative materials,
and it is critical that we continue the growth of advanced
automotive manufacturing, and a lot of small, medium-sized
businesses are seizing those opportunities.
But to further seize the opportunity to grow these quality
jobs, we need to prioritize key policies and investments.
First, our companies are looking for market certainty.
Manufacturers across the energy sector depend on policy
leadership and consistency to create the climate for a robust,
private investment in these promising, yet emerging fields.
Second, additional investment is needed to bring more
energy and transportation infrastructure up to the level needed
to support our country and the global economy.
Third, we need to look at forward-leaning standards,
procurement policies, to spur adoption of clean and efficient
technologies and encourage investments to deploy advanced
energy, transportation, and infrastructure, and to manufacture
these technologies in America.
Fourth, it is important to provide technical assistance to
small manufacturers looking to enter the market. That one-on-
one support is absolutely critical.
And finally, the energy workforce is aging. It is critical
we utilize established apprentice and other training programs
to ensure all manufacturers, regardless of size, have skilled
applicants for the jobs that they are looking to fill.
I really appreciate the opportunity and your support and
your work around small business, and thank you for the
opportunity to appear here at today's hearing.
Chairman CHABOT. Thank you very much. We will now have 5
minutes to ask questions, and I will begin with myself.
Mr. Ratzenberger, you had mentioned, when you were making
the Made in America series, the story about the gentleman that
if the machine broke down there really was not anybody here to
fix it so he would have things shut down for weeks and bring
somebody in from Europe or somewhere else. Were there any other
stories of that nature that you think we could learn from
experiences that you had while making that series?
Mr. RATZENBERGER. Even recently to that point, I was in the
airport, in Kennedy, and a fellow came up to me and thanked me
for my work in promoting jobs and skills training. I asked him
what he did, and he said he made tanks for compressed air. I
said, where are you off to? He said he was going to Argentina
to hire welders. He said he had jobs for 30 welders to start
tomorrow. He was flying to Argentina to find them. That, more
than anything, I find nationwide. People come and say, look, I
could use 10 welders. We are talking salaries $65,000 and up.
Some welders are making $100,000 a year in very specialized
welding. But people are desperate for those jobs. Employers
cannot find them. They do not exist anymore because the ones
that still work are working, they are making good money, and
they do not want to uproot their families and move to another
state. There is no reason.
Chairman CHABOT. Absolutely. Thank you.
Mr. Tillman, let me turn to you. A topic our Committee has
examined extensively is the cost of Federal regulation and how
that cost is borne by various segments of the economy. Research
has found that manufacturers pay nearly $20,000 per employee
per year on average to comply with Federal regulations, or
nearly double the $10,000 per employee that is borne by other
firms as a whole. Manufacturers' costs are much higher. How
much of a factor do you believe that things like this, the
regulations that businesses have to deal with every year, and
those are increasing, how much is that related to firms in this
country to say, well, I am heading to Mexico, or I am heading
to China or elsewhere to do business there because regulations
are a lot less?
Mr. TILLMAN. It is a determining factor. I think it is
different state to state, obviously. We are a company that has
a presence not only in California, but also in Washington
State. Absolutely, it plays heavily on where we decide to
expand to. We have big growth initiatives. We would like to
expand to most states within the domestic economy located near
some of these hot centers of aviation activity, and there is a
lot of stuff going on right now. It certainly needs to be
relooked at. The fact of the matter is it is inevitable that
folks, in order to stay alive, are being subject to some
extremely competitive pressures now to keep doing what they are
doing. The more regulations that continue to weigh them down,
it is not that they want to; they are absolutely, as a
necessity, forced to. That is something that we do not want to
see happen, certainly. We have had to fight, and fight, and
fight, to stay competitive in the state of California. And
while we have done it, it certainly does not hurt having
regulations that really foster and incentivize wanting to stay
there.
Chairman CHABOT. Thank you. I have only a little more than
a minute to go.
Dr. Perren, Mr. Ratzenberger had talked about the 30
welders that somebody was going all the way to Argentina to
get, and I have heard similar stories to that and other things
which we are not training people anymore. You still have 5
percent, approximately, of Americans that are unemployed, which
is probably double that if you really look at the people who
have given up looking for a job and they are no longer counted
in those statistics, or people that are working part-time that
used to be working full-time, or people that are underemployed.
They have the qualifications to work, and ought to be earning a
lot more but they are working at a fast food industry job or
something, and that is honorable work, but oftentimes that is
work you might want to start out and then move up. But what
ought we be doing in the education system to deal with those
types of things? What are we not doing now that we ought to be
doing?
Mr. PERREN. A couple things come to mind. First of all,
reintroducing career technical education programs at a stronger
level at the high schools. Even though they are strong in many
of our communities, affording high school students to begin
welding, even in middle school learn how to do basic welding.
Our technical college, we are limited only by our physical
space in terms of the number of welders that we can turn out.
Every welding booth we have is full, and we have the same issue
in our community. Kubota is expanding their manufacturing
facility near Gainesville. They will be hiring 600 additional
welders in the next 3 years. Where are they coming from? And
again, we are at capacity now. And again, helping our K through
12 system also continue to reenergize their vocational programs
is important.
Chairman CHABOT. Thank you very much. I am sorry I ran out
of time, Ms. Glas, but my time is expired.
The gentlelady from New York, the ranking member is
recognized for 5 minutes.
Ms. VELAZQUEZ. Thank you. I would like to hear from Ms.
Glas and Dr. Perren. As more manufacturing begins to move
towards clean and green products and technologies, education in
these technology products and business operations must do the
same. Are the curriculums keeping up with this move towards
green technology?
Mr. PERREN. All of our programs meet with industry advisory
boards two times a year. These industry advisory boards are
made up of employers, manufacturers. They provide us with
guidance as to what they expect in the workplace. We do revise
our curriculum based on what our employers are telling us. We
also introduce green equipment and other equipment that is used
in the workplace based on what our employers tell us from those
biannual meetings.
Ms. VELAZQUEZ. Ms. Glas?
Ms. GLAS. I will just note that I have building and
construction trades as part of the BlueGreen Alliance,
including the plumbers and pipefitters where those welding
skills are needed, and their apprenticeship programs are wildly
popular. They have done major recruitment efforts to ensure
that that next generation workforce is learning the skillsets
necessary for that clean energy economy and learning that
skillset that when they are doing the work, that it is
qualified work, that it is certified to meet the standards,
that it is delivering what that work should be. So we are very
excited about some of the work, and I think there are more
opportunities for apprenticeship programs like the building and
construction trade apprenticeship programs to work even further
with technical colleges to ensure we are all pulling in the
same direction.
Ms. VELAZQUEZ. Thank you. Mr. Tillman, manufacturing in my
district is alive and growing. The problem that we are facing
is the lack of space. As more manufacturing work moves towards
automation, workers need advanced education to operate the
machinery that produces highly technical goods, like computers
and aerospace parts. These jobs also command higher pay,
helping more families live the American Dream. Do you feel your
employees are adequately trained, or must you invest in
training and education upon hiring them?
Mr. TILLMAN. Yeah, we have taken a very aggressive stance
on human capital. Again, we are in the people business. We work
with a lot of local technical schools, which is something that
not a lot of manufacturers do. We bring in training programs
into our facilities if they are not offered, in terms of
apprenticeship and things like this. We have a pretty robust
human capital management training program. I think in general,
as automation becomes--which is the trend certainly that it is
going, these environments, they need to foster innovation. They
need to embrace it. I think oftentimes with traditional
manufacturers, they are possessing a lot of antiquated
technologies. You do not see a lot of reinvestment, and it
certainly prohibits them with the aging workforce. If you have
a lot of people trained on previous generations of technology,
it is not so easy to embrace these new practices. I think you
have to get in front of it. We are certainly doing that.
Ms. VELAZQUEZ. Do you have any recommendations as to what
we can do at the state and federal level to provide the kind of
incentives or the kind of support that you need? Because I can
believe that that could be very costly.
Mr. TILLMAN. Absolutely. Certainly, we would like to see
more incentives for us to go that extra mile and ensure that we
are, again, it is an ultracompetitive environment out there,
and organizations have to be incentivized to want to go the
extra mile. We would like to see more work done at the academic
level as well, and not just at the technical school level, but
even before that. K through 12, this is the time.
Ms. VELAZQUEZ. Do you sell your products abroad?
Mr. TILLMAN. We do not currently.
Ms. VELAZQUEZ. You do not?
Mr. TILLMAN. No, we do not currently.
Ms. VELAZQUEZ. I yield back.
Chairman CHABOT. The gentlelady yields back.
The gentleman from New York, Mr. Hanna, who is the Chairman
of the Subcommittee on Contracting and Workforce is recognized
for 5 minutes.
Mr. HANNA. Pell grants. You could not be more correct. They
ought to be year-round, and there is a conversation ongoing
about that.
Interesting, Mr. Ratzenberger, I asked my wife why she
married me, and it is because I do not watch TV, I do average
plumbing, average electrical work, and I am an okay carpenter.
That is her short list. But there is something strange about
this conversation, and I say that because there is also
something insidious about it which Mr. Ratzenberger sort of
alluded to. Correct me if I am wrong, but we discouraged years
ago the very thing that we are missing today. Now, one would
naturally think that the laws of supply and demand would fix
all these problems that we are talking about, right, but
clearly, they have not. In my own community, there are a few
hundred jobs that we know of, maybe a couple thousand, that is
defined as the skills gap, and yet you would say that where
there is a vacuum, labor flows in. But it is not happening. I
am interested to hear what you said. It is because we
discouraged people from going into the trades. I have Ms. Glas,
35 years in the operating engineers. That is what I did. That
is how I made a living. They are great ways to make a living,
but we told people that was not good enough. Somehow that was
not appropriate if you wanted to, whatever it was, do. Now we
find ourselves in a place where we are short of jobs for the
very reason we thought we would not be. At the same time, we
have this enormously costly 4-year educational process.
Mr. Perren, you talked about 2-year trade schools that
prepare you for a lifetime of jobs, and we know that most
people change jobs--it used to be once, now it is seven or
eight times. It is disturbing to think that something so
valuable at any point in our history was diminished, but Mr.
Ratzenberger, what do you think about that? How did we get to
place where we--this may be a philosophical question, too.
Mr. RATZENBERGER. Sometimes I joke around saying it was my
fault because I was a carpenter and I helped build the stage at
Woodstock. It was right around then that the perception shifted
where we started honoring mediocrity instead of success. It
flipped the whole idea of what it is to be a success right on
its head. That seeped into the school system. Certainly, the
media, because now, instead of--and I always use the Beatles
song. Forgive me, you Beatles fans out there, but Lucy in the
Sky with Diamonds. Picture yourself in a boat down the river,
with tangerine trees and marmalade skies. So it is lionizing
the people who do drugs and have hallucinations floating down
the river, but my question always was, who built that boat? The
boat is the key factor. Someone with a work ethic, someone with
skills built the boat so you could do nothing. I think the
media, especially, anytime it depicted someone with tools who
knew what they were doing, somehow they were either the villain
or depicted as stupid. Why would a child growing up, looking at
that, want to be that? I even think, I go so far as to say we
should change that term ``blue collar worker'' to essential
worker, because if they all went home, did not show up to work
tomorrow, we would screech to a halt.
We can do without actors and sports celebrities. Only our
families would miss us if we disappeared. Society would go on
just fine, seamlessly. Imagine if all the truck drivers pulled
off to the side of the road and said, nah, we are not going to
work today. These are the people that should be honored in the
media, certainly in commerce. My mother worked in a factory,
too, and when I picked her up late at night, the 3 to 11 shift,
and I thought there should be an audience here applauding these
people because this job and these people are what keeps us
going. I am icing on the cake, you know, and that is my
favorite part of the cake.
Mr. HANNA. To Ms. Glas, that is why I have always supported
Davis-Bacon. What is wrong--Davis-Bacon is parody. You know who
it is. What is wrong with making $70,000 to $100,000 with
benefits? When you walk around the capitol here, people are a
lot of things, but the thing that strikes me is the
construction. The actual building, the physical presence of
what we see here and the talent that went behind it. It is
quite amazing. It is. It makes you feel bad, does it not? What
we have come to is we need to be a society now because the
world is so competitive and the world is leveling that it is
those value-added products through higher education, more
complex, more intellectual capital, like Elite, that will
actually make us competitive with the world to sell those
things that we cannot make here because they do not pay well
and they can be done someplace else. But now we are in a
position where we have to say we need to educate ourselves
better, compete better, and as I said, make value-added
products.
My time is expired, thank you, Chairman.
Chairman CHABOT. Thank you very much. The chair will note
for the record, I think that is the first time in, at least my
20 years, that we have heard a Lucy in the Sky with Diamonds
quote here in this Committee. We thank you for that.
The gentlelady from California, Ms. Chu, who is the Ranking
Member of the Economic Growth, Tax, and Capital Access
Subcommittee is recognized for 5 minutes.
Ms. CHU. Thank you, Mr. Chair.
Ms. Glas, my state of California is home to the largest
manufacturing base in the country, and, it has some of the
strongest carbon reduction policies in the nation. In fact,
California is responsible for about 11 percent of the nation's
manufacturing production. Can you tell us about how Federal and
state governments can encourage industry growth to ensure that
the clean energy economy is developing good manufacturing jobs
in the U.S.?
Ms. GLAS. I think the state and Federal policy plays a key
role in contributing to how and whether manufacturers continue
to grow. California has been a leader across the country on
environmental policies to help spur that sort of next
generation of investments. I would caution, though, that there
are some big industrial manufacturers who are producing
products in California and on the West Coast that are producing
aluminum or steel products, steel inputs that go into some of
that next generation product. You want to ensure that we are
sourcing those products here in the United States where it is
less carbon intensive. Importing steel from China is two to
three times more carbon intensive. How do we ensure the full
value of the benefits for the clean energy manufacturing
economy go from the raw material producer all the way through
the chain? The state and the Federal government have a lot to
do with whether manufacturing in this sector will grow and
really seize the opportunities that lie ahead.
Ms. CHU. How about some of these tax credits? For instance,
how has the long-term extension of the production tax credit
and the investment tax credit impacted clean energy
manufacturers?
Ms. GLAS. They have been enormously helpful in ensuring
that these industries see a longevity and making sure that they
are cost competitive with those companies that are importing
product. I will say that because there has been uncertain
around those tax credits in the past, a lot of companies have
been hesitant to make the investments that they wanted to make
in the sector. I really appreciate Congress moving forward on
that. I think that was a significant leap ahead. But markets
demand certainty, and so I would continue encouraging this type
of thinking of how to get to the next generation technologies.
Ms. CHU. The research and development tax credit was made
permanent. How could this R&D credit be made to be more
business friendly?
Ms. GLAS. I think that was a wonderful step forward. A lot
of this work actually happens on the ground level of
manufacturers talking to technical colleges, talking with
apprenticeship programs. There is a lot more fostering and
convening that needs to happen locally to ensure that next
generation workforce is in the pipeline and that manufacturing
is a career opportunity that everyone wants to be a part of
because it is part of the gateway to the middle class.
Ms. CHU. Mr. Tillman, I enjoyed your story on reshoring
which is when a company shifts manufacturing back to the U.S.,
jobs are not only created at the new factory but at many
surrounding business, like parts suppliers, restaurants, and
real estate agents. Can you elaborate on this secondary
economic impact of reshoring manufacturing?
Mr. TILLMAN. Absolutely, we have seen that as well.
Bringing jobs back from a manufacturing perspective, certainly
in the aerospace and defense industry supply chain, there is
quite an extensive supply chain. We have seen elements of that
locally for us, even within the southern California region.
That is all part of the effort. Again, we speak about the
successes we have, but moreover, it is about the success of
America, and that is why we are here. If we can see more of
that in general, not only in California but throughout the rest
of the U.S. economy, you are going to see the multiplier effect
of that. We are going to do our part, and obviously, we are
here to ensure that Congress is doing their part. But again, I
think together we are going to get there. The momentum has
changed. Reshoring is here to stay. We are doing a better job
at getting the message out there to local schools. We need to
continue that. This needs to be an ongoing effort. Again, now
is the time to do it because there are so many opportunities
out there.
Ms. CHU. Anyone else on the panel?
How could we invent, incentivize, and increase in the
purchases made by large businesses from small business
suppliers and reshoring? Is there a way we could do that?
Mr. TILLMAN. With regards to incentivizing for raw material
product, I think Ms. Glas spoke to it. From parts that we
manufacture, there is a value stream to that, and it begins
with raw material production. Emphasizing production in the
United States would be a huge benefit to this initiative, in my
opinion. I think clarity with regards to some of the policy. I
know, as Ms. Glas mentioned, there is a lot of leaps forward,
and I think we need to encourage that. After the legislation is
put into place, let's take the next steps and really get at the
ground floor and see how that legislation is affecting tactical
business management and strategy. Once we do so, I think it is
going to shed light on some other opportunities there.
Clarification within that legislation. Making it aware. We as a
company, obviously seek these sorts of things, and oftentimes,
it is not terribly accessible to us, so more broad education on
how these policies affect local businesses would be
tremendously helpful.
Chairman CHABOT. Thank you.
Ms. CHU. Thank you.
Chairman CHABOT. The gentlelady's time is expired.
The gentleman from Nevada, Mr. Hardy, who is the Chairman
of the Subcommittee on Investigations, Oversight, and
Regulations, is recognized for 5 minutes.
Mr. HARDY. I would like to thank you all for being here. I
think it is an informative discussion we are having here. Mr.
Ratzenberger, you hit right on what I have always believed. I
grew up as a fifth generation son of farmer ranchers, and we
could hold just about anything together with a baling wire and
duct tape to make things keep moving. Through that process, I
went to college for 1 year, and that year of college, the first
thing that was taught to me by my aide was to make sure I get
an academic education because the trades and everything are
going out of style.
Mr. Perren, do you believe that is part of maybe the
problem; that academia has pushed so hard to make everybody get
a college education that they have looked down on the trades as
being a viable opportunity to raise a family?
Mr. PERREN. It goes back to some comments I made that the
perception of success in this country tends to be tied to a 4-
year degree, and the trades do not tend to be in that career
path or that education path.
Yes, there is a perception that everyone wants their son
and daughter to graduate from a 4-year institution, and there
is nothing wrong with that. Most everyone in this room did
that. Absolutely nothing wrong with that, but not at the
expense of keeping others from going into areas where they are
passionate. There are so many kids that if they had the ability
to use their hands, if they even knew what they could do with
their hands, if they were exposed to career explorations where
they know what the careers are that are available to them, they
could follow their passions and go into the trades and view
these things as not something you do if you cannot go to
college, but something you do because you are following your
heart. You are following your dreams and you are doing what you
are wired to do.
Mr. HARDY. One of the issues that has really been
frustrating for me, I think Mr. Ratzenberger, you brought it
up, but 35 years ago the schools changed. When I grew up, we
had auto body. We had shop. We had welding. We had all these
opportunities to do certain things. You can learn trades, but
you also have to learn work ethic, and I believe you brought
that up.
In our state of Nevada, we saw that shift almost 40 years
ago, when I graduated, where these were leaving. Now, it is
starting to come back but it is coming at a different level
which is higher tech, but it has to do with the drones and
building robotics. But these youth have to get involved. It is
not part of academia. It is something they do on the side, and
the trades are providing opportunity for these youth to come
out and learn how to build something with their hands with
fancy machines and everything else that is donated by society.
Do we need to invest more in our high school education to
prepare people for going into college, in your opinion?
Mr. RATZENBERGER. I think we should be investing in the
grammar schools. Every innovator, from Leonardo da Vinci,
Benjamin Franklin, Thomas Edison, Steve Jobs, started as a
child tinkering. I knew Steve Jobs, and we would talk about
that. He loved working on car engines with his dad. Thomas
Edison had 3 months of formal educatin--3 months. That is it.
He hung around a boatyard and learned how to do things.
Leonardo da Vinci was an illegitimate child, he grew up on a
farm. You have to get them when they are young, tinkering and
making things. Old cardboard boxes. My mother, God bless her,
she used to get old radios from garage sales and cut off the
cord and just say, here, take it apart. I have been a tinker
and an inventor ever since. Putting things together, taking
things apart. That is all you have to do with a child. It is
very cheap, too.
But you have to start young. Thomas Edison never went to a
school and said, I want to learn how to invent a lightbulb. It
all happened in here when he was very young. So my
recommendation is start at the younger ages, K through 12, as
Dustin mentioned. That is where it needs to start. Once they
are in high school they are already set. They have their likes,
dislikes, their priorities. Certainly, by college, it is gone.
I sit on the board of a university and I am always joking,
and say to the president, every year before we give them their
degrees, they should be required to go out to the parking lot
and change the tire on their car. If you cannot do that, what
good is your degree? You do not have enough common sense to do
that? But I also joke and I say, before anybody can be sworn
in, any elected official, you should be required to assemble a
coffee table from IKEA. I mean, that is tough.
Chairman CHABOT. Now you are hitting too close to home.
Mr. RATZENBERGER. Well, I know you farm boys can.
Mr. HARDY. My time is expired. I just want to tell you, Mr.
Tillman, thank you for lunch last night, or dinner last night.
No, he did not buy me dinner.
Mr. RATZENBERGER. Good restaurant, too.
Chairman CHABOT. The gentleman's time is expired.
The gentleman from Mississippi, Mr. Kelly, is recognized
for 5 minutes.
Mr. KELLY. Thank you, Mr. Chairman, and thank all you
witnesses. It is so important, and I have a very--my district
has a lot of manufacturing and a lot of agriculture, and I
would say in Mississippi, my part of the district, even though
it is rural, most of the manufacturing that is coming there
right now, it is coming because of workforce. We have a very
skilled workforce that is getting better every day. We also
have water and rail and energy and all those things that are
important, as well as a workforce. We have a community college
system in Mississippi that is still pretty good, and I think it
is one of the best in the nation. It is one of those things
that I think we should thump our chest about.
It is often funny. We have people who come to manufacturing
jobs in Mississippi and they come kicking and screaming,
telling their folks, I cannot believe I have to go to
Mississippi. Do you know what the problem with that is? They
never want to go back. They want to stay because of the people
and the things that are so great there.
Veterans are also very good in my heart. I have served a
long time. I know you have veterans that work for you, but we
talk about certificates of skill or journeyman's license or
professional trade associations. What are we doing to recognize
those skills that these soldiers, sailors, airmen, and
marines--because we have heavy equipment operators, welders,
carpenters, mechanics, all of these things--are there anything
in the civilian side or Small Business Administration that
recognizes or certifies these guys coming off active duty or
reserve component who have on-the-job training that is not
necessarily recognized in the civilian side? Does anybody know,
and specifically, Mr. Tillman?
Mr. TILLMAN. It is actually interesting. I was at Northrop
Grumman, the global headquarters, earlier this week, and the
woman that I was meeting with is a veteran. She was saying a
big part of the problem that exists is interpreting a military
resume, which has a lot of the same fundamental attributes that
normal college resumes have but it is written differently, and
there are different skillsets that are emphasized. She brought
that to light because she is a veteran, she is able to, and
oftentimes on a hiring committee say, no, that is actually what
we are looking for, it is just called something else. I think,
in general, businesses need to be more equipped on that. That
is going to happen inevitably if you are hiring more veterans
because you are going to be embracing that skillset and just
the knowledge and know-how that goes into interpreting it. The
reality is, again, it is quite a travesty when veterans cite
finding a job as the hardest thing. As they retire from active
military, as they are entered into the job force, companies
need to be incentivized. Again, not because it is not something
that they want to do; it is just so competitive out there that
there has to be an overwhelming desire for them to go the extra
mile. When we have done it, it has been very successful. And
introducing training programs, like I said, these are the folks
that we need to, and it is a cultural thing. A lot of active
military that are retiring now are millennials, they do fall
into that 18-to-34 category.
Another part of that question made me think about what we
hear a lot, which is the sort of Google myth that you have to
have sleeping pods in order to make employment exciting, and
that is not the case. A sense of belonging. A sense of
community. Listening. Empowering them to be successful, giving
them a voice. This is really what they want ultimately. If we
can work towards creating that culture, you are going to have a
higher success rate, whether it is veterans or any other
millennials, or people even before that.
Mr. KELLY. Mr. Chairman, that is one of the things. There
are so many skillsets. First of all, people who come out of the
military generally are very humble and do not inflate their
resumes with the things that they are capable of doing, unlike
a lot of kids who come straight out of college. They are trying
to turn certain leadership positions into doing these great
things, and these kids in the Army are coming out, and Navy and
Air Force, and they are coming out with great leadership skills
that do not show up on their resumes.
So, one, we need to teach these guys how to write about
their skills. Two, I think we really need to look at a civilian
equivalency skillsets to go with all MOSs and all the military
services, because you have airplane mechanics and helicopter
mechanics. Even in our signal and intelligence scores, these
guys are dealing with cutting-edge technology that you guys
have not seen yet. Fortunately, I have been exposed to that,
but these kids are way ahead in technology but it is a hard job
to transition that from the military to the civilian skillset.
So I really hope you guys will think about ways that we can
highlight these skills and make sure. I apologize, I only have
8 seconds left, but I yield back. Please think about ways we
can take care of our service members and use their skills to
maintain our role as the greatest manufacturer in the world. I
yield back.
Chairman CHABOT. Thank you. Thank you. The gentleman yields
back.
The ranking member is recognized for the purpose of asking
questions.
Ms. VELAZQUEZ. Yes, just one question. Dr. Perren, and Ms.
Glas, and even Mr. Tillman. How can we get more young girls and
women interested in order to change the mindset that the trades
are not for girls or women?
Ms. GLAS. This might get to Mr. Ratzenberger's comments
about sort of tinkering and learning early. As a woman who has
devoted her entire career to growing the manufacturing base, I
do not recall a single time in elementary school or in high
school where a guidance counselor or career counselor ever
said, have you considered going into manufacturing? Do you know
what manufacturing today looks like? Because it is a lot more
innovative. It is not your mom and dad's manufacturing anymore.
It is very lean. It is very automated. It takes high skills in
terms of engineering skills, math skills, and science skills.
Personally, I think women do not fully understand or
appreciate the type of employment and how it can be a family-
sustaining wage. There is a gap. There is a gender gap in the
building and construction trades. There is no doubt about that.
But I think----
Ms. VELAZQUEZ. And even when you look at STEM.
Ms. GLAS. Yep.
Ms. VELAZQUEZ. Right? And the national focus on it. When
you look at the numbers, you see a great gap when it comes to
women.
Ms. GLAS. Completely. It is something that I do not know,
exactly how to bridge that gap. A lot of people have been
thinking about ways to do that, but I think earlier on in the
school age, women need to be shown that there are possibilities
in this sector. What these sectors are about. What are the
types of jobs in these sectors? What is the income level of
these sectors? To get people more talking about the fact that
they want to be part of a manufacturing skilled training
future.
Mr. PERREN. We also encourage nontraditional learners.
Whether it is women going into welding, air conditioning, and
also, men going into nursing or whatever. We encourage
nontraditional learners to try to bridge that gender gap. We
actively encourage that.
If I may address the gentleman from Mississippi's
statement, returning military veterans, when they bring their
MOSs to us, we evaluate that, and we actually give them course
credit based on the service work that they did in the military,
so they can actually earn significant course credit when they
return from service towards a degree at colleges all across
this nation. We are trying to recognize the tremendous skills
that they have learned while they were in the military.
Chairman CHABOT. Thank you. Did you want to comment, Mr.
Tillman?
Ms. VELAZQUEZ. I yield back.
Chairman CHABOT. You yield back?
Mr. TILLMAN. The only comment that I would have is I think
it is a curriculum issue. I think there is a certain social
level of acceptability in schools. John spoke a lot about
solving the problem by bringing shop classes back, and that is,
by and large, a lot of it. I think kids in general--I have
children--they are encouraged to do more traditional things. I
think if you make that more acceptable in general at the lower
level, K through 12 area, they will not feel so awkward by
pursuing a nontraditional pathway because the reality is it
absolutely is misinformation. As Dr. Perren was referring, we
have very high-paying jobs, and as a manufacturing company, we
maybe see 1 in 1,000 women who apply because it is such a
rarity. We would love to encourage more of that.
Chairman CHABOT. Thank you. The gentlelady yields back.
Before wrapping up, we will check with the gentlelady, but
Mr. Ratzenberger, did you want to comment on kind of the role
of women as you have seen in manufacturing? I think you
mentioned your own daughter?
Mr. RATZENBERGER. Oh, my daughter is a great carpenter. She
is a producer in Hollywood, but she had her own toolbox all
through college.
In addressing that, I talked to a retired commandant at
West Point, and I said, where do the best officers come from?
Without skipping a beat he said farms. Boys and girls. I said,
why is that? He said because they are always problem solving
from a very young age. Instantly they have to deal with it, as
you well know. If we reinstate those manual training classes in
school, the children, the boys and the girls who do not have
the advantage of growing up on a farm, they have the advantage
of putting their hands to physical things and problem solve.
The brain is formed between birth and 3 years old; 5 years old,
maybe. So that is the age you have to get kids interested, and
they can mold the world around them to their liking. You do not
let the world mold you; you mold the world. You take what
natures gives you and you say, how can I make something else?
Again, Steve Jobs, da Vinci, Thomas Edison, it all starts at a
very young age. So boys or girls, it does not make a difference
at all.
Chairman CHABOT. Very good. Thank you very much.
I would like to comment as Chair, I think all four of you
were great. Excellent panel here. There are a lot of takeaways.
We spend a lot of money on education in this country every year
and we need a highly trained and skilled workforce for jobs
that are now going unfilled and that we have to seek people in
Argentina to do our welding. I mean, it is incredible. I think
you have given us a lot to think about here as members of the
Small Business Committee. As we have said, 99 percent of the
manufacturers are small business folks, so this was right in
our sweet spot. Thank you very much for sharing your
experiences with us. We will share it with our colleagues, not
only on this Committee but other Committees in Congress as
well.
I will ask unanimous consent that members have 5
legislative days to submit statements and supporting materials
for the record.
Without objection, so ordered.
If there is no further business to come before the
Committee, we are adjourned. Thank you very much.
Mr. RATZENBERGER. Thank you.
[Whereupon, at 12:22 p.m., the Committee was adjourned.]
A P P E N D I X
House Committee on Small Business
Presented by John D. Ratzenberger - May 12, 2016
This great country of ours, this land we call the United
States of America was founded and nurtured on 2 basic guiding
principles: Freedom and the Ability to use that freedom to
build the finest civilization yet seen on earth.
We built this nation guided by our imaginations and the
skills we learned from our elders. We cut our own timber with
saws we made ourselves from the ore we mined using tools that
we machined and honed on machines that we built from scratch
with our own hands. We drew, measured and shaped the tools we
needed to build our homes and the villages towns and cities in
which we lived. We travelled from place to place in vehicles we
built and maintained ourselves to harness the pulling power of
the livestock given to our use and care. We used our own hands
to build the barns, fences, and corrals that kept our animals
protected so that we could feed our families with food we grew
ourselves in fields plowed with more tools that we designed and
proudly crafted.
We were always a nation of builders, tinkerers and
craftsman that met each and every task and challenge with
hands-on skills that were passed from generation to generation.
We built our own ships that gave birth to the United States
Navy. The same ships that fought the Barbary pirates off the
coast of North Africa when Thomas Jefferson was President. We
used the same time honored skills to construct the battleships
and landing craft that were necessary for our victories on D-
Day as we pushed the Nazi nightmare back and extinguished the
flame of evil so that our children could live in peace. We made
every one of the weapons carried by our brave men and women
throughout our history to protect the place we call home.
With our own hands, we designed and constructed a rocket
ships that landed us on the moon and launched the satellites
that transmit our cell phone signals from one place to the
next. We used our hands to construct medical equipment that
have saved millions of lives worldwide. Make no mistake, we are
the peacekeepers of the world because of our manufacturing
might. Manufacturing is to America what spinach is to Popeye.
While future generations may have to explain that analogy,
we in the year 2016 understand that without tinkerers,
builders, and manufacturing throughout the land, we are
rendered spineless and helpless. Manufacturing is the backbone
of Western Civilization. Everything we do every single day is
reliant first on someone's ability to not only put a nut and a
bolt together but to make that nut and that bolt in the first
place. I have always known these truths to be self evident
because I grew up in the once mighty industrial town of
Bridgeport Connecticut surrounded by people who knew how to
design, make, build, fashion, repair and maintain anything you
wanted. My uncles proudly boasted about their ability to hone a
piece of metal down to 1/5000th of an inch tolerance as though
the fate of western civilization rested on it. As a ten year
old, I thought it was funny but as I got older and a tad more
sophisticated, I realized that my uncles were right. The fate
of Western Civilization rests entirely on our ability to make
things. The world would get along just fine without actors,
reality stars, musicians and sports celebrities. Our loved ones
would be sad but the world would continue to hum along
seamlessly. Think, however, what would happen if all the
skilled trades people from carpenters and plumbers to farmers
and truck drivers decided not to show up for work tomorrow. We,
the entire nation, would instantly grind to a halt causing
problems that would take generations to overcome.
So why then have we stopped teaching our children the joys
of crafting something out of nothing? About fifteen years ago
while visiting a number of factories and filming the different
ways companies make things for my TV show ``John Ratzenberger's
Made in America'', I realized that there were hardly any
workers under the age of forty in any of the facilities. After
talking with dozens of CEOs and plant foreman in every state, I
was made aware of the fact that nationwide, the manual arts,
that is: wood shop, metal shop, auto repair and even home
economics were taken out of the middle and high school
curriculums about 35 years ago. Not only did that result in a
dropout rate back then of 30 percent instantly but it left us
with a skilled essential workforce whose average age today is
58 years old.
There are close to a million jobs available right now in
small businesses around the country that rely on people with
mechanical common sense skills that we've stopped offering in
our public schools 2 generations ago. The most repeated
complaint today from potential employers is that it's
impossible to train someone for any of the jobs available when
they graduate from high schools everywhere without the ability
to even read inches and fractions from a simple ruler.
The big worrisome question then is this... How do we
reinstate the necessary programs in our schools to give our
children a familiarity of the tools that built and maintain our
civilization and way of life? If the average age of the people
that keep our nation and the nation's infrastructure working is
58 years old then how long do we have before it all stops?
I also submit that we do away with the term ``blue collar
worker'' and replace it with ``essential worker'' because
that's exactly what they are. Once they are all retired then no
more ships, buildings, trains, planes, or automobiles. No more
tractors, no more farms, no more food unless we grow it
ourselves in fields we plow with tools we've made with our own
hands. That's the way it's always been and if we someday want
to explore the universe, cure disease and marvel at what awaits
us in the oceans depths then we'd better get busy introducing
our youngsters to the vital art of using tools and the joy of
self reliance. Thank you.
John Dezso Ratzenberger
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
About Elite Aviation Products
Good morning and thank you for inviting me to testify
before this committee. I am Dustin Tillman speaking on behalf
of Elite Aviation Products, Inc. as its President & CEO.
Bringing manufacturing jobs back to America is something that
has always been very important to use as a company. This
process has become affectionately referred to as ``re-
shoring,'' and is a topic that has been garnering a great deal
of attention in the mainstream media as of late. Elite Aviation
Products is an American aerospace & defense (A&D) engineering
and manufacturing company, and is a proud participant of the
re-shoring movement. Elite was born through recognition that
despite surging demand pressures in both the commercial
aviation and A&D marketplaces, American manufacturing over the
decades has been stifled by an overwhelming lack of investment
in emerging technologies, a slowness to adapt business models
with 21st century efficiencies, immense growth capital
requirements as well as a lack of investment and prioritization
of cross-trained workforces. By recognizing and addressing
these issues, Elite Aviation Products has been able to quickly
break into the Aerospace marketplace while creating domestic
manufacturing jobs, and dispelling the myth that successful
manufacturing in America is a thing of the past.
However, for Elite, and many companies out there just like
Elite, there's still a lot more work to be done so that our
nation can reassert itself as the manufacturing powerhouse it
once was. Many say that in our current socioeconomic
environment, the vision that our country will be a nation of
builders once again is all but attainable. Manufacturing
operations tend to be one of the most capital intensive
businesses to develop. Manufacturing requires large investments
in real estate, machine tools, and human capital (employees)
development and acquisition. These vast overhead costs has
driven many corporations to take their operations abroad in
order to improve their bottom line, and has discouraged
countless others from attempting to venture into this space.
Weathering the Storm--The Challenges We Face
When starting or growing a business it's challenging enough
to continually position oneself for success. Business can often
times be affected by capital constraints, cyclicality, market
uncertainty, difficulty developing and procuring proper human
capital, change in the tastes and preferences of consumers as
well as unfavorable or antiquated legislation.
Encouraging Growth in the Skilled Labor Workforce & Making
Manufacturing Exciting
Throughout my career I was exposed to legislation whose
intent was to protect small, minority owned, and disadvantaged
businesses because government wanted to affect diversity
amongst those qualified to support this work. Instead of
creating jobs for the many, often times, over the years I've
watched it allow very few to prosper to the detriment of those
employees and customers who depended on these organizations for
longer-term sustainable support. The reality is that often
times those that fall within these parameters generally remain
small, and are therefore unable to truly embrace the changing
dynamics of the marketplace, which are demanding more and more
from them. Many times, unable to evolve, these once protected
businesses fall short and end up disqualified and out of
business. While the intention of this legislation was
benevolent, in my experiences it fails to achieve the desired
growth and sustainability it set out to.
Instead of watching history continue to repeat itself what
would be wonderful to see is emphasis placed not just on small,
minority owned, and disadvantaged businesses, but also small
and midsized businesses that are capable of growing through the
empowerment and development of all its employees, not just
those categorized. Rather than crafting legislation that only
incentivizes select individuals to own a business, it would be
encouraging to see legislation that supports and rewards those
businesses who commit themselves to training, developing, and
employing all skilled labor.
As a nation we also need to do a better job of accurately
characterizing the multi-faceted and exciting careers that
exist within manufacturing. Despite our talent as a culture for
crafting top-notch media, we do a poor job at shining a spot
light on the exciting and fulfilling career paths that exist
within modern manufacturing; full of all the intricate and
challenging dynamics that would enthrall and captivate the
young workforce entering the job market.
Empowering our Nation's Heroes
For us, and many other businesses out there, the best pool
of talent that I've been exposed to have been veterans. These
highly trained individuals who possess key characteristics for
success in business, e.g., honor, integrity, discipline, and
leadership are right in our own backyards, and, from what I've
seen, eager to get to work. Motivated to plunge into this
untapped pool of talent, Elite Aviation Products founded the
Elite Veterans Initiative, whose mission is to support,
empower, and employ our Nation's heroes. What we discovered
through this process is that often times while these
individuals are out there keeping our borders safe they are
unable to build their resumes, which often times is an
important pre-requisite in the job market. Consequently, this
often works against these individuals when they retire from
active military and assimilate back into the marketplace.
Because employers are not adequately incentivized to hire from
this pool, unfortunately the net result is they pass for
someone who has the resume that solves their immediate
requirement.
Capital Requirements
As mentioned above, the amount of capital required to enter
a marketplace like manufacturing (whether it be aerospace,
automotive, or any other sector) is immense, particularly if a
company is properly positioning itself for sustainable
efficiency and long-term growth. The proper foundation of a
modern manufacturer requires large investments in advanced
machine tools (many small manufacturers work off slow,
antiquated technologies and are unable to expand for this
reason), expensive software systems, real estate, and a large
amount of employee development and training. The amount of
capital required and the lack of avenues to obtain this capital
has precluded the growth and development of the workforce
within the manufacturing sector.
With the introduction of the JOBS Act (Jump Start Our
Business Startups) in 2012, more businesses have been able to
obtain the capital they needed in order to begin and expand.
While at times a difficult and complex piece of legislation to
navigate and full utilize, this type of legislation is a big
step in the right direction. Without this legislation, Elite
Aviation Products would never have been able to procure the
capital needed purchase the advanced machine tools, technology,
develop human capital, and acquire the real estate necessary to
create a modern manufacturing company. Continued simplification
and support of legislation similar to the JOBS Act is in our
opinion one of the most crucial components in encouraging more
Americans to start manufacturing businesses and thus create
high quality jobs and development opportunities for many
Americans.
Unlimited Opportunities for Growth
The world has entered into what's being referred to as the
2nd Golden Age of Aviation characterized by the simultaneous
development of entirely new fleets of aircraft by all premier
airframe manufacturers. As such, there's more backlogged work
now than at any other time in the history of flight, and
visionaries and industry moguls alike are seeking to expand
this into the cosmos. The current supply chain supporting the
A&D industry is unable to keep up with these demand pressures,
which has left the door wide open to the flood of new young
talent entering the job market. With so many opportunities now
and into the distant future it is time for America to once
again showcase its dominance. We have a tremendous opportunity
to get it right and make a huge impact on society.
Call to Action
If during this 2nd Golden Age we are to make a significant
impact and showcase our ingenuity as a country, aggressive
legislation to incentivize programs related to job creation and
lowering the barriers of entry to the manufacturing industry
must be seen.
Additional efforts to help place veterans
and disadvantaged groups in training programs or
positions in growing manufacturers
Shift in focus from diverse business owner
incentives, to incentives aimed at growing and
sustaining diverse work forces
Tax vehicles that incentivize reinvestment
in newer more efficient machine tools and other
technologies
Continued support and simplification of
legislation like the JOBS Act, which enable new
manufacturing businesses to secure growth capital and
create jobs
Incentivize companies who hire fresh talent
straight from trade-schools and community colleges
Subsidized internships for students seeking
career opportunities within the manufacturing sector
Thank you again for the opportunity to participate in this
committee hearing.
Testimony of D. Ray Perren, D.S.L.
President
Lanier Technical College, Oakwood, Georgia
A Unit of the Technical College System of Georgia
Before the Committee on Small Business
United States House of Representatives
``The New Faces of American Manufacturing''
May 12, 2016
Good morning Chairman Chabot, Ranking Member Velazquez, and
members of the committee. I appreciate the opportunity to come
before you today to discuss the changing face of American
manufacturing and the need to assure we have a well-trained
workforce. My name is Ray Perren. I am the president of Lanier
Technical College. Lanier Tech is a public two-year
postsecondary institution within the Technical College System
of Georgia. I am just completing my thirty-sixth year as an
educator. I spent my first twenty years in K-12 education
serving in roles including classroom teacher, elementary school
principal, middle school principal, system curriculum director,
assistant superintendent, with my last four years in K-12 spent
as district superintendent of schools. For the last 16 years I
have served as dean of academic affairs for a university, and
for the last ten as a technical college president. All of these
stops along the way have allowed me to be involved in education
from Pre-Kindergarten through graduate programs. I have been
fortunate to be involved in education during the time of the
Technological Revolution.
The New Faces of Manufacturing vs. Lingering Perceptions
I think it is a given that the face of manufacturing has
changed greatly in the last few decades. In fact, the
Technological Revolution has changed the face of manufacturing
as much in the 21st Century as did the Industrial Revolution in
the 19th Century. In his classic work, The Wealth of Nations,
Adam Smith identifies the factors of production as land, labor,
and capital. The technological revolution has allowed
manufacturers to increase productivity and profitability by
decreasing the costs associated with labor. We've all heard the
comments, ``Robots are going to replace humans in the
workforce.'' Although this is a bit of an exaggeration, it is
true that technological advances--such as robotics--allow
manufacturers to increase productivity while managing labor
costs. Technology allows us to produce more using less human
labor. But technology does not and will not replace humans in
the workforce.
We have all heard of the concept of ``reshoring.''
Reshoring is where manufacturers who moved production from the
United States in the last one-third of the 20th Century are
bringing operations back. These operations are not returning in
the same form in which they left. The jobs created by reshoring
require a different skill set than the jobs lost by offshoring.
It is no longer acceptable to simply have warm bodies in
manufacturing settings. Today's manufacturing environment
requires highly skilled individuals who not only understand
complex technological applications but also are adept at
problem solving.
Although the face of manufacturing is changing, too often
the perception of manufacturing has not changed. Too often,
people think of manufacturing jobs as being physically
repetitive work, carried out in dirty environments, with little
or no ability to utilize critical thinking to improve job
performance. Nothing could be further from the truth. The
repetitive motions and monotonous tasks that would have been
performed by workers of the past have been replaced by robotics
and other forms of automation.
A couple of years ago, I had the opportunity to tour the
manufacturing facility Caterpillar had recently opened just
outside of Athens, Georgia. I was impressed by the cleanliness
of the work environment, the focus on teamwork, and the
encouragement of critical thinking by all employees. In
Gainsville, Georgia, American Yazaki Corporation has a program
that allows workers to change work assignments every two hours.
This reduces the possibility of repetitive motion injuries and
provides for a very flexible workforce. These are examples of
how manufacturers invest in and treat their workforce. All
across this nation, the modern manufacturing environment is
very clean and is very likely air conditioned. In fact, many if
not most of our nation's manufacturers practice lean
manufacturing and quality philosophies that require the
workplace to be clean, safe and highly organized. Today's
manufacturing jobs are well-paying. For example, graduates of
our Industrial Systems Technology, Machine Tool Technology, and
Welding Technology programs can expect entry level wages of
$35,000 to $45,000 annually. Wages for people with five or more
years of experience could easily reach $55,000 and above. Very
often skilled craftsmen earn six figure incomes when overtime
pay is factored in. Yes, manufacturing has changed. It is
important to note that education programs are also changing in
order to meet the needs of today's manufacturers.
One lingering perception is that in order to be successful
in this country one must have a four-year degree and a white-
collar job. Parents, high school guidance counselors, and
others who have influence over our young people tend to steer
high school students away from technical colleges. Too often,
those that are steered toward technical colleges are the ones
that counselors feel are ``not cut out for college.'' While
there will always be a demand for individuals with four-year
college degrees, the truth is that most--and I do mean most--of
today's high-tech jobs can be filled by individuals with two-
year degrees or shorter certificates awarded by our nation's
technical colleges. These technical colleges are our nation's
pipeline to assure manufacturers have the work force needed to
thrive in the United States. If I may use Georgia's technical
colleges as an example, these institutions are regionally
accredited, connected to business and industry, and allow
students to prepare for good paying careers without
accumulating large amounts of debt.
Technical Colleges Provide Real-Life Education for Real-
Life Careers
Georgia's technical colleges use a hands-on, lab based
instruction model. Although our students learn theory, the
majority of their course work is done in laboratory and
clinical settings. Our instructors not only have the
credentials needed to teach in a regionally accredited post-
secondary institution, but they also have work experience in
the field in which they are teaching. For example, all of our
welding instructors have been welders, all of our mechantronics
instructors have worked as maintenance technicians in
manufacturing plants, and all of our engineering technology
instructors have worked as engineers or engineering technicians
in industrial settings. Additionally, instructors from each of
our more than 40 program areas meet at least two times each
year with industry advisory boards from the specific industry
for which they are preparing our graduates. These industry
advisory boards review curriculum, examine laboratory
equipment, and keep the college informed of trends so that the
programs stay current and relevant. Our programs not only focus
on the hard skills necessary to be successful in the workplace,
but also on the work ethic, soft skills if you will, that
employers expect to find in employees. These work ethics
include attendance, character, teamwork, appearance, attitude,
productivity, organizational skills, communication,
cooperation, and respect. Because of this hands-on
instructional model, delivered by practitioners, regularly
reviewed by industry partners, with additional focus on soft
skills, we guarantee our graduates. If an employer hires a
technical college graduate and finds that he or she does not
perform at an acceptable skill level, then we will retrain the
graduate at no cost to the graduate or the employer. Our
nation's technical colleges are uniquely prepared to assure
manufacturers have the workforce needed to keep America's
economy the strongest in the world.
The Disconnect
According to the National Association of Manufacturers,
98.5% of our nation's 256,363 manufacturers are considered
small business. Three-fourths of all manufacturers employ fewer
than 20 people. Manufacturers are in almost every community
across the nation. The average manufacturing worker in this
country earns over $52,000 per year. When benefits are factored
in, the average compensation for manufacturing jobs is just
short of $80,000 per year. The overwhelming majority of these
workers participate in health insurance programs through their
employer. Over the next decade, nearly 3.5 million
manufacturing jobs will be needed. Although manufacturers
provider excellent pay and benefits, nearly 2 million of these
3.5 million jobs are likely to go unfilled due to the skills
gap.
So we have good jobs. Today's young people represent the
brightest generation this country has ever raised. So why the
disconnect? I believe it goes back to perception and our long-
standing definition of the American Dream where we all have
good paying jobs, with benefits, allowing us to support a
happy, healthy family. More discussions such as the one we are
having today are necessary to help change the perception. These
discussions need to be held not only in the halls of Congress,
but also in every community in America. We need events to
encourage this discussion such as the Manufacturer's Forum held
by the Great Hall Chamber of Commerce which bring together
community leaders, high school administrators and counselors,
business leaders, parents, and students. We need creative,
outside the box solutions such as the partnership between
Lanier Technical College, the Hall County and Gainesville City
School Systems, Goodwill of North Georgia, and the Georgia
Governor's Office of School Achievement which provide an
alternate pathway to high school completion and career
preparation for the growing number of very bright young people
who have disengaged from the education process because they
don't see the relevance. This program has provided outstanding
results and has allowed a group of young people to go from
being potential high school dropouts to skilled welders working
for manufacturers such as Kubota.
What Can Congress Do?
I truly believe that in order to create awareness of the
amazing careers available in manufacturing--and the critical
nature of providing a highly-skilled, job ready workforce to
meet the needs of manufacturers--this nation needs to
experience a Sputnik Moment. Just as the national got behind
the effort to become the world's leader in space exploration in
the 1950s and 60s, this nation needs to get behind the effort
to secure our nation's role s the world's leading manufacturer.
Our world-wide communications and defense systems would not
exist today without the efforts to lead space exploration 50
years ago. Our place in the global economy 50 years from now
will be determined by how we address the need to prepare
today's young people to enter the nation's manufacturing
workforce today.
While I believe that local efforts are essential, I also
believe there is a role for the Congress and the Federal
Government. I believe the Congress has a unique opportunity to
support technical colleges in workforce development as you
reauthorize the Carl D. Perkins Career and Technical Education
Act. I urge you to use this opportunity to encourage secondary
and postsecondary institutions to work together with local
business and industry partners to develop career pathways that
support manufacturing and other careers in each specific
community. A ``one size fits all approach'' to career pathways
is not practical in a nation as large and as diverse as is
ours.
If a community is heavily engaged in manufacturing, then
career pathways should reflect manufacturing. If a community is
significantly engaged in manufacturing, health care and
logistics, then career pathways should support those specific
workforce sectors. These pathways should lead to postsecondary
awards (degree, diploma, or certificate) and/or an industry
recognized licensure or credential.
I also ask that you consider funding year-round Pell. Just
as manufacturers and other employers never stop operations for
more than a week or two, most technical colleges operate on a
year-round calendar. Students are expected to attend fall,
spring, AND summer semesters. Because many of our programs are
``lock-step'' in nature, students must go summer semester or
risk having to sit out until that coursework is offered again.
Technical training to support manufacturing is very rigorous.
It requires the individual to learn a skill and become a
proficient problems solver on a year-round basis. Manufacturers
and businesses are looking for a steady stream of graduates--
not just in May. Many of our students rely on Pell Grants and
other forms of state and Federal financial aid to help them
afford postsecondary education. Year-round Pell would go a long
way to helping college become even more affordable for many of
our students.
As we look to create a ``Sputnik Moment'' for career
education, I would like to ask Congress to consider providing
funds to improve our nation's education infrastructure. Many of
our technical colleges were built in the 1960s. Although
technical colleges work to keep equipment up-to-date, some
equipment is in service much too long due to lack of resources.
Just as our nation's highways and bridges form critical
transportation infrastructure, education infrastructure
provides the pathway from today into the future. I would also
like to ask Congress to consider tax credits for businesses
that invest in technical colleges by purchasing new or donating
gently used equipment to help keep our infrastructure as
current and modern as possible.
Finally, every time I come to this place I am in awe. I am
in awe of the great history of this place. I am in awe of the
great leadership this nation has been blessed with. I am in awe
of the work you do here every day. I ask that you be in awe of
us. Be in awe of the amazing work that happens in our nation's
technical colleges. Be in awe of the life-changing work we do
in preparing young people and adults to enter the workforce
with skills the skill sets that in high demand. Be in awe that
the changes we are effecting are generational in nature.
Grandchildren yet unborn will have a better quality of life
thanks to the work our technical colleges are doing with their
grandparent today.
Conclusion
In conclusion, I appreciate the time you have afforded me
and this panel to discuss the new faces of American
manufacturing. I ask for your help, and the help of the entire
business and manufacturing community, in assuring our nation's
technical colleges provide the trained workforce our nation
needs in order for our economy to prosper for generations to
come. Help us facilitate that ``Sputnik Moment'' to business,
industry, young people, parents, and others who influence the
decisions of our youth and make them aware of the high-tech
nature of today's manufacturing environment, the excellent jobs
with strong pay and benefits that are available in almost every
community, and the understanding that you can attain the
American Dream through graduating from one of our nation's
technical colleges. Thank you. I will be happy to answer any
questions.
Testimony of Kimberly Glas
Executive Director of the BlueGreen Alliance
United States House of Representatives
Small Business Committee
Thursday, May 12, 2016
As prepared for delivery
Good morning Chairman Chabot, Ranking Member Velazquez, and
members of the House Small Business Committee. My name is
Kimberly Glas, and I am the Executive Director of the BlueGreen
Alliance. On behalf of my organizations, our national labor
unions and environmental partners, and the estimated 15 million
members and supporters they represent, I want to thank you for
holding these hearings today on, ``The New Faces of American
Manufacturing.''
In 2006, the United Steelworkers and the Sierra Club formed
the BlueGreen Alliance with the belief that creating good jobs
and protecting the environment were not mutually exclusive. In
fact, in this increasingly globalized economy, we could no
longer choose between jobs and the environment. We can and must
have both.
Since then, the BlueGreen Alliance has worked to create and
maintain quality, family-sustaining jobs while also addressing
our greatest environmental challenges. Our unique national
partnership is dedicated to creating good jobs, a clean
environment, and a fair and thriving economy.
The clean energy economy is growing. A recent report by
Environmental Entrepreneurs (E2) found that more than 2.5
million Americans work in clean energy. Using data from the
U.S. Bureau of Labor Statistics and the Department of Energy,
the report found that there are 1.9 million jobs in energy
efficiency and m ore than 400,000 in renewable
energy.i
At the center of all of our work is strengthening American
manufacturing--driving new business and quality job creation
across the clean economy. As the world moves to a cleaner, more
efficient economy, there is a significant opportunity to ensure
that these technologies--which are largely developed in the
United States--are also produced here, creating good jobs and
strong communities. Building and industrial energy efficiency,
renewable energy, and advanced technology vehicles--these
industries are growing rapidly and it is imperative that the
United States commit to ensuring that they create quality jobs
and strong communities in every corner of our country. The
long-term health of the U.S. econony--and the prosperity of our
families and communities--depend on American leadership in
these industries.
A number of years ago, the BlueGreen Alliance Foundation
created the Clean Economy Manufacturing Center, which works
directly with small manufacturers to help them identify
opportunities and overcome obstacles to entering clean energy
supply chains. The Center has worked hands on with hundreds of
small companies, providing technical advice, research support,
and training to aid them in evaluating capabilities and
potential for becoming suppliers in key sectors of the clean
energy economy. Over the past few years, and working with
government initiatives like the Manufacturing Extension
Partnership, this program served more than 1,200 companies
nationally, including 100 companies that requested customized
technical assistance.
The manufacturing industry is core to the American economy
and--while there have been success stories of growth--
significant challenges remain.
Challenges to U.S. Manufacturing
Manufacturing comprises a diverse market basket of goods
and service production worth $2.08 trillion--or 12.5 percent of
U.S. Gross Domestic Product, and supports 17.4 million jobs
with 25 percent higher compensation than the U.S. economy
overall.ii However, the U.S. manufacturing sector--a
key driver to our economy--has faced significant challenges in
recent years.
According to the Economic Policy Institute, the United
States lost more than 5 million manufacturing jobs between
January 2000 and December 2014, thanks to destructive trade and
tax policies and other measures that contributed to a growing
trade deficit and an un-level playing field for American
manufacturers--both large and small. Since the recession of
2007-2009, an estimated 900,000 of the 2.3 million
manufacturing jobs lost during that period have been
recovered.iii However, a lack of adequate resources
to enforce trade rules, in addition to currency manipulation
and failed trade policies, risk turning back the clock and
further exacerbating these threats to American manufacturers.
Meanwhile, incentives remain for manufacturers to offshore
production to lower wage locations with weak labor and
environmental standards--in what amounts to a race to the
bottom. For example, the United Steelworkers--a founding member
of the BlueGreen Alliance--represent workers at a Carrier
Corporation facility in Indiana. The company announced in
February that it would close that facilities--which produced
HVAC systems--outsourcing 1,400 jobs to Mexico.iv As
we have seen over the last decade or so, when manufacturing
jobs are lost, communities, workers, and local tax bases are
devastated.
This also presents a significant challenge when it comes to
addressing climate change. When the United States imports
manufactured goods from locations across the globe, the carbon
intensity to make manufactured goods in that part of the world
is contributing more greatly to climate change. For example,
steel produced in China--a country that produces nearly half
the world's supply--is more carbon intense than that which is
produced in the United States.v
Other challenges also remain to manufacturers in the United
States who are seeking to grow. We thank the House and Senate
for their recent longer term extension of critical federal
incentives to grow renewable energy--the Production Tax Credit
(PTC) and Investment Tax Credit (ITC). Policy uncertainty or
inconsistency at federal level, however, has stunted industry
growth in the past, and remains a concern at state level. An
uncertain policy climate means inconsistent demand for new
energy technologies, such as wind turbine manufacturing, and in
turn for manufacturing the components and materials that go
into them. In addition, while the U.S. has a variety of
incentives to spur adoption of clean energy and efficiency,
there are relatively few incentives for energy efficiency or
clean energy manufacturing.
Opportunities for Growth
In these challenges, however, we see significant
opportunity. Domestic and global markets for energy efficiency,
renewable energy, transportation technology, and infrastructure
are growing rapidly, resulting in potential opportunities for
manufacturers across the sector. In our work, we see a
particular opportunity for manufacturers to meet the growing
demand for building and industrial efficiency. In addition,
there is tremendous opportunity to modernize our public
infrastructure, particularly in the manufacturing of components
for America's passenger rail and transit sectors, and ensuring
that we fully leverage the dollars we spend on infrastructure
to drive clean, high quality American manufacturing and good
job growth. It is also essential to ensure that the recovery of
manufacturing and jobs in the automotive sector grows as
technology continues to advance.
Growing the U.S. Manufacturing Base Through Energy
Efficiency Retrofits
One of our newest efforts is our Energy Efficiency Housing
Initiative. As the energy industry grows globally, there is a
significant opportunity to grow associated domestic industries.
The 2015 Green Building Economic Impact Study issued by the
U.S. Green Building Council shows that green construction's
growth rate is rapidly outpacing that of conventional
construction and will continue to rise in the United
States.vi It is critical that as this industry
grows, domestic suppliers for the industry also grow--thereby
multiplying the economic impact and creating good paying jobs
across the spectrum.
However, if no effort is made to integrate the growing
demand for energy efficiency products with an economic
development strategy that supports and expands the local supply
chain to produce those products, other countries may be better
positioned to capture the jobs and business opportunities. In
addition, without a clear focus on the safety and health of the
materials used to make affordable housing more energy
efficient, we will be trading lower energy costs for greater
health impacts and ignoring the potential manufacturing job
growth from the production of safer materials.
The BlueGreen Alliance Foundation's project is designed to
understand more fully the gaps in the supply chain for these
products and opportunities for manufacturers to grow in this
sector. Our extensive outreach uncovered a broad range of
energy efficiency housing products made in the United States,
and is part of a larger national initiative to accelerate the
retrofit of multifamily low-income facilities. Through this
process, we discovered more than 1,000 U.S. manufacturers and
distributors of products ranging from insulation to energy
efficient lighting to HVAC systems. These manufacturers are
looking for opportunities to grow in the United States and
globally.
This project is designed to help local communities capture
the benefits of energy efficiency retrofits, including lower
utility bills, improved tenant health, and increased economic
development. It will also aid domestic manufacturers that are
interested in learning about opportunities to participate in
the energy efficiency retrofit market supply chain, low-income
residents living in affordable housing, and building owners and
contractors wanting to learn about energy efficiency housing
products and potentially hazardous chemicals contained in some
building materials. States and federal agencies should also
prioritize the use of domestically manufactured, efficient, and
non-toxic building materials where they are involved in
building construction and upgrades.
Industrial Energy Efficiency
Similarly, the industrial sector also provides a major
opportunity for efficiency improvements and jobs and
manufacturing growth. As previously mentioned, manufacturing
represents a significant portion of the GDP--about $2
trillion--and supports more than 17 million workers.
Manufacturing is also a heavy user of energy, accounting for 24
percent of U.S. energy consumption.vii And while
manufacturers are already investing heavily in energy
efficiency, an additional 15-30 percent reduction in overall
energy consumption is possible through further deployment of
industrial efficiency (and on-site renewables) technologies.
In addition to reducing emissions, taking advantage of
efficiency opportunities can reduce operating expenses and the
carbon footprint of energy-intensive, trade-exposed
manufacturers, provide a hedge against rising fuel costs and
have the additional benefit of making American manufacturing
more competitive in the global marketplace. And while these
benefits help major manufacturers preserve jobs in the United
States, manufacturing, installing, and maintaining industrial
efficiency equipment could provide a major boost to the many
smaller companies that make this technology.
The BlueGreen Alliance is also currently working in
Illinois, Michigan, Minnesota, Ohio, and Pennsylvania, to
identify, create, and maintain good manufacturing jobs in the
energy sector. Key opportunities include legislative and
regulatory measures that would boost funding for carbon
emission reductions in the industrial sector--perhaps as part
of a compliance approach to the Clean Power Plan. Other
opportunities at the state level include complementary
legislative and non-legislative efforts that would expand use
of industrial efficiency, combined heat and power (CHP), waste
heat to power (WHP), on-site renewables; engage a qualified
workforce; and promote domestic manufacturing of clean energy
components.
Driving Manufacturing through Energy and Transportation
Infrastructure
The BlueGreen Alliance Foundation has also done extensive
research on and outreach to manufacturers of components for
America's passenger rail and transit sectors--as well as in
advanced vehicles, components and materials. A 2015 report by
the BlueGreen Alliance and the Environmental Law & Policy
Center showed more than 750 companies in at least 39 states
currently manufacturing components for passenger rail and
transit rail.viii
New BlueGreen Alliance analysis shows over 2,000
assemblers, components, and subcomponents manufacturers who
stand to benefit as the nation, states, and cities invest in
transit vehicles, systems, and infrastructure. For example,
these include major global companies like Siemens, which builds
locomotives for Amtrak utilizing components from 69 suppliers
in 23 states; one of those suppliers was Siemens' Norwood Motor
plant, represented by IUE-CWA local 765. Electric motors have
been built at this factory in Norwood Ohio for 100 years with
many of the employees being the second or third generation of
their family to work there. Similarly, investments in
transportation infrastructure builds jobs at electronics
manufacturers like Alstom Signaling in Rochester, New York,
helping bring back jobs to manufacturing communities hard hit
by previous generations of manufacturing decline.
Investment in infrastructure is critical for American
manufacturing. It is important that we more fully engage
smaller domestic manufacturers in the transit supply chain,
opening up opportunities for growth. But investment is just the
first step in ensuring we build strong clean transportation
manufacturing. It is critical that we also more fully engage
smaller domestic manufacturers in the transit supply chain,
opening up opportunities for growth.
Incentives to Engage American Manufacturers and to ``Buy
Clean''
Public infrastructure projects utilize significant
financial resources, often at the expense of the taxpayer. How
these funds are spent can have a big impact on the overall
benefits to local communities, to manufacturing, and to the
U.S. economy. Compliance with long standing Buy America rules
can be made more effective both for major projects and for the
small manufacturers looking to take part in major projects. In
addition, new model procurement language, such as the U.S.
Employment Plan, recently adopted by Amtrak, provides clear
quantitative measures for major bidders to take additional
steps to improve domestic content, local jobs, and job quality.
There is also opportunity to improve the energy and
manufacturing outcomes of major infrastructure projects. These
projects use energy-intensive manufactured materials--steel,
cement, and plastic--for which the environmental impact can
vary greatly from one mill to another, let alone from one
country to another. Building bridges, tunnels, and transit
systems that use inputs sourced from countries with weak
environmental standards have long lasting implications with
higher greenhouse gases and toxic air emissions. These
taxpayer-funded projects can cost taxpayers much more than
procurement costs. Put simply, a bridge cannot be built without
steel, but a bridge can be built using the cleanest steel
available.
Recent analysis by the BlueGreen Alliance Foundation found
that, for example, had ``Buy Clean'' criteria been integrated
into development, procurement, and implementation stages of one
construction project--the Bay Bridge--an estimated 180,000 tons
of carbon emissions would have been averted, which is
equivalent to taking 38,000 cars off the road in the United
States for a year. According to the American Society of Civil
Engineers, there is currently a $76 billion need to fix
structurally deficient bridges in the United States.
Establishing procurement criteria that incentivize more cleanly
produced materials would not only result in significantly lower
emissions, but improved safety and overall decreases in cost.
Clean Vehicles
Finally, no discussion of the promise of clean energy
manufacturing would be complete without emphasizing the
critical importance of continuing the recovery and growth of
advanced automotive manufacturing in the United States. The
industry, which anchors American manufacturing as a whole, has
been transformed over the last eight years. Thanks to sound
environmental, manufacturing, and economic policies working
hand in hand, and also thanks to huge investments made by auto
companies and workers. Americans are driving better, cleaner
vehicles that dramatically cut carbon pollution and better
protect the American economy from instability in global oil
markets.
At the same time, the industry has regained its competitive
position globally, and brought back over 250,000 direct
manufacturing jobs building new more fuel-efficient vehicles,
advanced auto components, and innovative materials, in addition
to millions of related jobs. But the industry continues to
change rapidly, and whether considering turbocharged engines,
continuously variable transmissions, high-strength steel,
aluminum or carbon fiber, power electronics, or battery
technology, it is vital to ensure that we build these
technologies in companies large and small across the United
States.
Recommendations
In summary, the BlueGreen Alliance believes several key
factors are necessary to promote American manufacturing jobs.
Market Certainty
Large and small manufacturers across the energy sector need
policy leadership and certainty to create the climate for
robust private investment in these promising but emerging
fields. The five-year extension of critical policies like the
ITC and PTC is crucial to increasing demand for renewable
energy component products. But additional mandates and
investments are needed to further establish a domestically
sourced renewable energy industry. Similarly, consistent, long-
term fuel economy and greenhouse gas reduction standards
provide visibility and certainty critical for automotive
assemblers and suppliers to make the large long-term
investments necessary to retool to build the next generation of
vehicle technology here.
Rebuilding America's Energy and Transportation
Infrastructure
This year's passage of a long-term transportation bill was
an important first step in providing consistent investment in
infrastructure, but much more is needed to bring our energy and
transportation infrastructure up to the level needed to support
a leading economy. Investments to enhance and spur forward-
looking infrastructure are critical to building manufacturing.
Also critical are measures to ensure that public dollars drive
domestic manufacturing growth, and galvanize a rebirth of small
manufacturing. These measures include:
1) Facilitating and improving implementation of long-
standing Buy America policies;
2) Adopting innovative and best value procurement
practices that increase domestic suppliers access to
major infrastructure projects, and improve job quality,
skills and training; and
3) Implementing Buy Clean criteria that ensure public
infrastructure dollars reinforce domestic investment in
state-of-the-art clean production of key materials, and
don't contribute to offshoring jobs and increasing
pollution.
Manufacturing Efficiency, Clean Energy, and Vehicle
Technology in America
Federal policies should continue to promote adoption of
clean and efficient technology and encourage investments to
manufacture these technologies in America. This means boosting
and restoring critical clean energy manufacturing programs like
the Department of Energy's Advanced Technology Vehicle
Manufacturing (ATVM) loan program--which helps attract and
upgrade the major advanced assembly plants around which
networks of large and small suppliers arise--and the 48C
manufacturing tax credit from the American Recovery and
Reinvestment Act, which provided incentives for hundreds of
smaller manufacturers to enter clean energy fields. Continuing
to build and improve regional hubs that link advanced clean
energy or transportation technology innovation and
manufacturing is also key.
Expanding Assistance for Small Manufacturers
Small manufacturers often need tailored assistance to take
advantage of opportunities in the clean energy and energy
efficiency markets. The National Institute of Science and
Technology's Hollings Manufacturing Extension Partnership in
the Department of Commerce partners in all 50 states, MEP
``works with small and mid-sized U.S. manufacturers to help
them create and retain jobs, increase profits, and save time
and money,'' and has a number of programs aimed at helping
small companies enter these emerging energy and transportation
sectors.
Growing the Energy Workforce
The rapidly changing energy sector also brings big
workforce opportunities and challenges. As older workers
retire, it is critical to ensure that the next generation of
workers is well trained for these safe, family-sustaining
energy and transportation jobs. Partnering with established
apprenticeship programs and other training programs can help
ensure small manufacturers are on a level playing field when it
comes to finding skilled workers.
Conclusion
In closing, Chairman Chabot, Ranking Member Velazquez, and
members of the committee, allow me to again thank you for your
important work to support small businesses and American
manufacturing, and for granting me the opportunity to appear at
today's hearing and provide a brief overview of how the
BlueGreen Alliance Foundation and Clean Economy Manufacturing
Center is working every day to achieve the goals shared by this
committee--building a robust, sustainable American economy
providing opportunities for businesses to thrive, American
workers to prosper, and for a cleaner economy to protect the
public and the environment.
Thank you.
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