[Congressional Record (Bound Edition), Volume 159 (2013), Part 12]
[Extensions of Remarks]
[Pages 17023-17024]
[From the U.S. Government Publishing Office, www.gpo.gov]




             THE NEED TO REVITALIZE AMERICAN MANUFACTURING

                                 ______
                                 

                       HON. EDDIE BERNICE JOHNSON

                                of texas

                    in the house of representatives

                      Wednesday, November 13, 2013

  Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, I rise today to 
speak in support of the efforts to revitalize American Manufacturing.
  Manufacturing has long been a central part of the American economy. 
Right now, there are more than 11 million Americans employed in high-
paying manufacturing jobs. And in 2010, manufacturing accounted for 60 
percent of all U.S. exports and contributed $1.7 trillion to our GDP.
  These figures are impressive and lend support for the importance of 
maintaining a vibrant manufacturing sector. Unfortunately, the 
dominance of the United States in manufacturing has been steadily 
challenged. The U.S. share of global manufacturing value added declined 
from one-third in the early 1980s to just one-fifth today. At the same 
time, manufacturing activity has rapidly increased in emerging 
economies such as China and Korea.

[[Page 17024]]

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assembly line work is outdated and no longer applies.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

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