[Federal Register Volume 77, Number 250 (Monday, December 31, 2012)]
[Notices]
[Pages 77218-77246]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-31377]



[[Page 77217]]

Vol. 77

Monday,

No. 250

December 31, 2012

Part III





Department of Commerce





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Economic Development Administration





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 Fiscal Year 2012 Annual Report to Congress on the Trade Adjustment 
Assistance for Firms Program; Notice

  Federal Register / Vol. 77, No. 250 / Monday, December 31, 2012 / 
Notices  

[[Page 77218]]


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DEPARTMENT OF COMMERCE

Economic Development Administration


Fiscal Year 2012 Annual Report to Congress on the Trade 
Adjustment Assistance for Firms Program

AGENCY: Economic Development Administration, Department of Commerce.

ACTION: Notice .

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    Pursuant to 255A of chapter 3 of title II of the Trade Act of 1974, 
as amended (19 U.S.C. 2341 et seq.), the Economic Development 
Administration (EDA) publishes the Fiscal Year 2012 Annual Report to 
Congress on the Trade Adjustment Assistance for Firms program.
BILLING CODE 3510-WH-P

[[Page 77219]]

[GRAPHIC] [TIFF OMITTED] TN31DE12.005


[[Page 77220]]



Key Findings

    In September 2012, the U.S. Government Accountability Office (GAO) 
reported to Congress that the effect of participation by import-
impacted U.S. firms in the Trade Adjustment Assistance for Firms (TAAF) 
program was an increase in firm sales ranging from 5 to 6 percent on 
average,'' and that ``the effect of the program on productivity was 
about a 4 percent increase.'' \1\ GAO also noted in the report that 
manufacturing firms, specifically, associate the TAAF program with 
increased sales and productivity.
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    \1\ U.S. Government Accountability Office (GAO), Trade 
Adjustment Assistance: Commerce Program Has Helped Manufacturing and 
Services Firms, but Measures, Data, and Funding Formula Could 
Improve (GAO-12-930), September 13, 2012.
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    Meanwhile, this report--EDA's Annual Report to Congress on the TAAF 
program--finds that, two years after completing the program in FY 2010, 
participating firms experienced an average employment increase of 13.2 
percent, an average sales increase of 26.8 percent, and an average 
productivity increase of 11.9 percent. For the sake of comparing TAAF-
assisted firms to non-assisted similar firms, the Department of Labor's 
Bureau of Labor Statistics (BLS) reported that, in FY 2012, the 
manufacturing industry as a whole experienced an average employment 
increase of only 3.5 percent and an average productivity increase of 
4.1 percent from FY 2010.\2\.
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    \2\ BLS does not collect a sales measure comparable to EDA's 
measure in this report (i.e. average sales per employee).
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    Therefore, both GAO and EDA find that the TAAF program has a 
significant positive impact in helping import-impacted U.S. firms 
compete in the global marketplace. Additionally, all firms that 
completed the TAAF program in FY 2010 were in operation at the end of 
FY 2012, indicating strong survival rates for TAAF-assisted firms.
    Furthermore, on May 11, 2012, the Department of Commerce Office of 
Inspector General (OIG) presented EDA with a copy of their letter to 
the House and Senate Committees on Appropriations reporting their 
findings related to an examination of the TAAC administrative costs.\3\ 
As part of their review, OIG obtained expenditure data from a sample of 
three TAACs--Western, New England, and New York State--focusing on the 
use of Federal funds provided by EDA. The OIG reported that it ``did 
not determine that the level of administrative costs of the three TAACs 
to be unreasonable.'' Therefore, not only does the TAAF program produce 
results--it does so at reasonable costs.
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    \3\ The information was requested in the House Committee Report 
that accompanied the FY 2012 Commerce, Justice, Science, and Related 
Agencies Appropriations bill.
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Background

    This annual report is submitted in accordance with Section 255A of 
chapter 3 of title II of the Trade Act of 1974, as amended (19 U.S.C. 
2341 et seq.) (commonly referred to as the Trade Act). Section 255A of 
the Trade Act directs the Secretary of Commerce to submit an annual 
report on the Trade Adjustment Assistance for Firms (TAAF) program to 
Congress no later than December 15, 2012 and each year thereafter. The 
TAAF program is authorized by chapters 3 and 5 of title II of the Trade 
Act.
    Administered by the U.S. Department of Commerce's Economic 
Development Administration (EDA), the goal of the TAAF program is to 
help economically distressed U.S. businesses develop strategies to 
compete in the global economy. Through a partnership with a national 
network of 11 EDA-funded Trade Adjustment Assistance Centers (TAACs), 
the program provides cost-sharing technical assistance to help eligible 
businesses create and implement targeted business recovery plans 
(referred to as ``Adjustment Proposals'' or ``APs'') aimed at boosting 
global competitiveness, increasing sales and retaining and creating 
jobs. The TAACs, which are either independent or university-affiliated 
entities, provide support to import-impacted firms in a public-private 
collaborative framework. The TAAF program provides a portion of the 
assistance while participating firms contribute a matching share to 
create and implement their recovery plans.
    EDA's partnership with the TAAC network across the country allows 
firms to receive customized assistance from highly qualified experts 
who are knowledgeable about the needs, challenges and opportunities 
facing the industries in their region. The most common types of 
assistance provided in FY 2012 were marketing/sales improvement and 
production/engineering projects, which comprised over half of all 
projects supported throughout the year.
    In January 2011, as authorization of the Trade Adjustment 
Assistance (TAA) programs at the U.S. Department of Labor (DOL), U.S. 
Department of Agriculture (USDA) and EDA was about to expire, Congress 
passed the Omnibus Trade Act of 2010 (Pub. L. 111-344). This Act 
extended the TAAF program through February 12, 2012, but allowed some 
provisions--such as eligibility for service firms and expanded time 
periods for qualifying firm eligibility--provided under the Trade and 
Globalization Adjustment Assistance Act of 2009 (TGAAA) to expire on 
February 13, 2011.\4\ The TAAF program remained authorized in FY 2011 
and continued to operate at FY 2010 spending levels of $15.8 million 
under a full-year continuing resolution, which prevented interruption 
of program operations.
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    \4\ The TGAAA was included as subtitle I (letter ``I'') of title 
I of Division B of the American Recovery and Reinvestment Act of 
2009 (ARRA) (Pub. L. 111-5, Stat. 115 at 367).
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    On October 21, 2011, the President signed into law the Trade 
Adjustment Assistance Extension Act of 2011 (Pub. L. 112-40). This Act 
retroactively extended the provisions of the TAA programs that were 
enacted as part of the TGAAA.
    The expiration of the TGAAA provisions did, however, limit the 
number of firms entering the program as TAACs were unable to assist 
service firms or use extended ``look-back periods'' to certify firms. 
In addition, uncertainty regarding the TAAF program's future caused 
TAACs to focus on existing clients instead of recruiting new firms.
    As part of its overall commitment to performance evaluation and 
continuous improvement, EDA assesses the performance of the TAAF 
program both in terms of ``inputs'' (e.g., types of firms assisted, 
petition, and AP submissions) and ``outputs'' (changes in sales, 
employment levels, and productivity of client firms).
    In terms of inputs, the TAAF program effectively targeted small and 
medium-sized firms in FY 2012. TAACs provided technical assistance to 
341 firms in preparing petitions, 206 firms in preparing APs, and 935 
firms in implementing projects within their APs. Meanwhile, EDA 
certified 79 petitions and approved 102 APs.
    EDA successfully met both the 40-day processing deadline (to make a 
final determination for petitions accepted for filing) and the 60-day 
processing deadline for approval of APs, as required in the TGAAA. In 
FY 2012, the average processing time for petitions was 29 business 
days, and the average processing time for APs was 21 business days.
    In order to assess the effectiveness of the TAAF program in terms 
of outputs, EDA assesses the extent to which client firms increased 
their sales, employment levels, and productivity following the 
implementation of TAAF-supported

[[Page 77221]]

projects (program completion). To measure these outputs, EDA compares 
average sales, average employment and average productivity of all firms 
completing the program in a particular year (the most recent ``base 
year'') to these same measures for the same firms one and two years 
following program completion. The base year used for this report is FY 
2010, as this allows EDA to compare these measures looking back both 
one and two years from the date of this report.
    Firms that completed the TAAF program in FY 2010 report that, at 
completion, average sales were $10.1 million, average employment was 53 
and average sales per employee (productivity) was $191,328. One year 
after completing the program (FY 2011), these same firms reported that 
average sales increased by 11.4 percent, average employment increased 
by 13.2 percent, and average productivity decreased by 1.6 percent. For 
the sake of comparison to the universe of U.S. manufacturers, the U.S. 
Bureau of Labor Statistics (BLS) reports that, in FY 2011, the national 
manufacturing industry in aggregate experienced an average employment 
increase of only 1.9 percent.
    Two years after completing the program (FY 2012), these same firms 
reported that average sales increased by 26.8 percent, average 
employment increased by 13.2 percent, and average productivity 
increased by 11.9 percent. Meanwhile, BLS reported that the 
manufacturing industry in FY 2012 experienced an average employment 
increase of 3.5 percent and average productivity increase of 4.1 
percent from FY 2010. Therefore, firms assisted by the TAAF program 
performed more successfully than the manufacturing industry as a whole. 
Additionally, all firms that completed the TAAF program in FY 2010 were 
in operation as of the end of FY 2012, indicating strong survival rates 
for TAAF-assisted firms. It should be noted that TAAF clients are 
operating in the same economic environment as other firms, but are also 
attempting to adjust to import pressures that may not impact other 
firms as severely, making the success of TAAF-assisted firms even more 
notable.

Table of Contents

Introduction
Program Description
Results/Findings
Data for This Report

    (1) The number of firms that inquired about the program.
    (2) The number of petitions filed under section 251.
    (3) The number of petitions certified and denied by the 
Secretary.
    (4) The average time for processing petitions after the 
petitions are filed.
    (5) The number of petitions filed and firms certified for each 
Congressional District in the United States.
    (6) Of the number of petitions filed, the number of firms that 
entered the program and received benefits.
    (7) The number of firms that received assistance in preparing 
their petitions.
    (8) The number of firms that received assistance developing 
business recovery plans.
    (9) The number of business recovery plans approved and denied by 
the Secretary.
    (10) Average duration of benefits received under the program 
nationally and in each region served by an intermediary organization 
(the TAAC) referred to in section 253(b)(1) of the Trade Act.
    (11) Sales, employment, and productivity at each firm 
participating in the TAAF program at the time of certification.
    (12) Sales, employment, and productivity at each firm upon 
completion of the program and each year for the two-year period 
following completion.
    (13) The number of firms in operation as of the date of this 
report and the number of firms that ceased operations after 
completing the program in each year during the two-year period 
following completion of the program.
    (14) The financial assistance received by each firm 
participating in the program.
    (15) The financial contribution made by each firm participating 
in the program.
    (16) The types of technical assistance included in the business 
recovery plans of firms participating in the program.
    (17) The number of firms leaving the program before completing 
the project or projects in their business recovery plans and the 
reason the project or projects were not completed.
    (18) The total amount expended by all intermediary organizations 
referred to in Section 253(b)(1)and by each organization to 
administer the program.
    (19) The total amount expended by intermediary organizations to 
provide technical assistance to firms under the program nationally 
and in each region served by such an organization.
Conclusion
Supplement--TAAF Program Benefits to Manufacturing Firms

Introduction

    This report is provided in compliance with Section 255A of chapter 
3 of title II of the Trade Act. Section 255A of the Trade Act directs 
the Secretary of Commerce to provide an annual report on the Trade 
Adjustment Assistance for Firms (TAAF) program by the 15th of December. 
Section 255 of the Trade Act states:

    IN GENERAL.--Not later than December 15, 2012, and annually 
thereafter, the Secretary shall prepare a report containing data 
regarding the trade adjustment assistance for firms program under 
this chapter for the preceding fiscal year. The data shall include 
the following:

    This report will provide findings and results classified by 
intermediary organization,\5\ state, and national totals,\6\ to the 
extent that the data are available on the following 19 measures:
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    \5\ ``Intermediary Organization'' referred to in section 
253(b)(1) are the Trade Adjustment Assistance Centers (TAACs).
    \6\ See chapter 3 of title II of the Trade Act, section 255A (b) 
Classification of Data.
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    1. The number of firms that inquired about the program.
    2. The number of petitions filed under section 251.
    3. The number of petitions certified and denied by the Secretary.
    4. The average time for processing petitions after the petitions 
are filed.
    5. The number of petitions filed and firms certified for each 
Congressional district of the United States.
    6. Of the number of petitions filed, the number of firms that 
entered the program and received benefits.
    7. The number of firms that received assistance in preparing their 
petitions.
    8. The number of firms that received assistance developing business 
recovery plans.
    9. The number of business recovery plans approved and denied by the 
Secretary.
    10. The average duration of benefits received under the program 
nationally and in each region served by an intermediary organization 
referred to in section 253(b)(1) of the Trade Act.
    11. Sales, employment, and productivity at each firm participating 
in the TAAF program at the time of certification.
    12. Sales, employment, and productivity at each firm upon 
completion of the program and each year for the two-year period 
following completion.
    13. The number of firms in operation as the date of the report and 
the number of firms that ceased operations after completing the program 
and in each year during the two-year period following completion of the 
program.
    14. The financial assistance received by each firm participating in 
the program.
    15. The financial contribution made by each firm participating in 
the program.
    16. The types of technical assistance included in the business 
recovery plans of firms participating in the program.
    17. The number of firms leaving the program before completing the 
project or projects in their business recovery plans and the reason the 
project was not completed.
    18. The total amount expended by all intermediary organizations 
referred to in

[[Page 77222]]

Section 253(b)(1) and by each organization to administer the program.
    19. The total amount expended by intermediary organizations to 
provide technical assistance to firms under the program nationally and 
in each region served by such an organization.

Program Description

    The TAAF program is authorized by chapters 3 and 5 of title II of 
the Trade Act. The responsibility for administering the TAAF program is 
delegated to EDA by the Secretary of Commerce. The TAAF program 
provides technical assistance to manufacturers and service firms 
affected by import competition in order to help them develop and 
implement projects to regain global competitiveness, increase 
profitability and create jobs.
    The mission of the TAAF program is to help U.S. firms regain 
competitiveness in the global economy. Import-impacted U.S. 
manufacturing, production and service firms can receive matching funds 
for projects that expand markets, strengthen operations and increase 
competitiveness through the TAAF program. The program provides 
assistance to support the development of business recovery plans 
(commonly referred to as ``Adjustment Proposals or ``APs''), under 
Section 252 of the Trade Act, and matching funds to implement projects 
outlined in the APs.
    The TAAF program supports a national network of 11 independent non-
profit or university-affiliated TAACs to help U.S. manufacturing, 
production, and service firms in all 50 States, the District of 
Columbia and the Commonwealth of Puerto Rico. Firms work with the TAACs 
to apply for certification of eligibility for TAAF assistance, and 
prepare and implement strategies to guide their economic recovery.

           Exhibit 1--TAACs and Their Respective Service Areas
------------------------------------------------------------------------
                 TAAC                             Service areas
------------------------------------------------------------------------
Great Lakes...........................  Indiana, Michigan and Ohio.
Mid-America...........................  Arkansas, Kansas and Missouri.
Mid-Atlantic..........................  Delaware, District of Columbia,
                                         Maryland, New Jersey,
                                         Pennsylvania, Virginia and West
                                         Virginia.
Midwest...............................  Illinois, Iowa, Minnesota and
                                         Wisconsin.
New England...........................  Connecticut, Maine,
                                         Massachusetts, New Hampshire,
                                         Rhode Island and Vermont.
New York State........................  New York.
Northwest.............................  Alaska, Idaho, Montana, Oregon
                                         and Washington.
Rocky Mountain........................  Colorado, Nebraska, New Mexico,
                                         North Dakota, South Dakota,
                                         Utah and Wyoming.
Southeastern..........................  Alabama, Florida, Georgia,
                                         Kentucky, Mississippi, North
                                         Carolina, South Carolina,
                                         Tennessee and the Commonwealth
                                         of Puerto Rico.
Southwest.............................  Louisiana, Oklahoma and Texas.
Western...............................  Arizona, California, Hawaii and
                                         Nevada.
------------------------------------------------------------------------

    The TAAF program is one of four distinct programs authorized under 
the Trade Act. The other TAA programs are TAA for Workers and TAA for 
Community Colleges, which are both administered by DOL, and TAA for 
Farmers, which is administered by USDA.
[GRAPHIC] [TIFF OMITTED] TN31DE12.006

Program Initiative

    As noted above, the TAAF program provides technical assistance to 
help firms develop and implement business recovery plans, or APs. 
Projects identified in the AP are designed to improve a firm's 
competitive position. Specifically, under the TAAF program, funds are 
applied toward helping firms access consultants, engineers, designers 
or industry experts to implement business improvement projects. These 
projects may cover a range of functional areas to improve a firm's 
market position and increase its overall competitiveness, including 
engineering, information technology, management, market development, 
marketing, new product development, quality improvement and sales. 
Funds are not provided directly to firms; instead, EDA funds TAACs and 
TAACs use funds to pay a cost-shared proportion of the cost to secure 
specialized business consultants.

[[Page 77223]]

[GRAPHIC] [TIFF OMITTED] TN31DE12.007

    There are three main phases to receiving technical assistance under 
the TAAF program: (1) petitioning for certification, (2) recovery 
planning and (3) AP implementation.

Phase I--Petitioning for Certification

    The first step to receiving assistance is the submission of a 
petition to EDA to be certified as a trade-impacted firm. A petition is 
comprised of Form ED-840P, titled ``Petition by a Firm for 
Certification of Eligibility to Apply for Trade Adjustment 
Assistance,'' and required supporting documentation. Generally, 
certification specialists in the TAACs work with the firm at no cost to 
complete and submit a petition to EDA.
    Upon receipt of the petition, EDA performs an analysis of the 
petition and supporting documents to determine if the petition is 
complete and may be accepted. EDA is required to make a final 
determination on the petition within 40 days of accepting a 
petition.\7\
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    \7\ As of May 17, 2009, the deadline for making a final 
determination is 40 days. Before May 17, 2009, EDA had 60 days to 
make a determination.
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    To certify a firm as eligible to apply for adjustment assistance, 
the Secretary must determine that the following three conditions are 
met:
    1. A significant number or proportion of the workers in the firm 
have been or are threatened to be totally or partially separated;
    2. Sales and/or production of the firm have decreased absolutely, 
or sales and/or production of an article or service that accounted for 
at least 25 percent of total production or sales of the firm during the 
12, 24, or 36 months preceding the most recent 12-, 24-, or 36-month 
period for which data are available have decreased absolutely; and
    3. Increased imports of articles like or directly competitive with 
articles produced or services provided by the firm have ``contributed 
importantly'' to both the layoffs and the decline in sales and/or 
production.

Phase II--Recovery Planning

    Certified firms then work with TAAC staff to develop a customized 
AP for submission to EDA for approval. Once an AP has been submitted, 
EDA is required to make a final determination within 60 days.

Phase III--AP Implementation

    The firm works with consultants to implement projects in an 
approved AP. As projects are implemented and if the firm is satisfied 
with the work, the firm will first pay their match to the consultant, 
and then send a notice to the TAAC stating that they are satisfied with 
the work and that they have paid their matching share. The TAAC will 
then pay the Federal matching share. Firms have up to five years from 
the date of an AP's approval to implement the approved business 
recovery strategy contained therein, unless they receive approval for 
an extension. Generally, firms complete the implementation of their 
respective APs over a two-year period.
    In general, the TAACs provide an array of services to assist 
import-impacted firms throughout this process, including:
     Assisting firms in preparing their petitions for TAAF. 
Firms are not charged for any assistance related to the preparation of 
a petition.
     Once a petition has been approved, TAACs work closely with 
a firm's management to identify the firm's strengths and weaknesses and 
develop a customized business strategy (AP) designed to foster 
competitiveness. The program pays up to 75% of the cost of developing 
an AP and the firm must pay the rest. EDA must approve all APs to 
ensure they conform to statutory and regulatory requirements.
     After an AP has been approved, company management and TAAC 
staff jointly identify consultants with the specific expertise required 
to assist the firm in implementing their competitiveness strategy.
     Under the TAAF program, EDA shares the cost of 
implementing tasks under an approved AP to support competitiveness. For 
an AP in which proposed tasks total $30,000 or less, EDA provides up to 
75 percent of the cost and the firm is responsible for the balance. For 
an AP in which proposed tasks total over $30,000, EDA pays 50 percent 
of the total cost and the firm pays the remaining 50 percent. In order 
to most efficiently and effectively utilize limited program funds, EDA 
limits its share of technical assistance to a certified firm to no more 
than $75,000. After a competitive procurement process, the TAAC and the 
firm generally contract with private consultants to implement the AP.

Results/Findings

Data for This Report

    The data used in this report were collected from the TAACs as part 
of their reporting requirements, petitions for certification, and the 
APs submitted by the TAACs on behalf of firms. Eligibility Reviewers at 
EDA recorded data from these sources into a central database. The data 
presented in this report has been verified by the TAACs. Results for 
average processing times were derived by EDA. Data in this report 
reflect data as of the end of FY 2012. Therefore, data in this Annual 
Report may differ from previously published data that were based on 
different periods.

(1) The Number of Firms That Inquired About the Program

    In FY 2012, the TAACs received 1,849 inquiries about the program.

Exhibit 4: Inquiries about the TAAF program by TAAC

------------------------------------------------------------------------
                                                                No. of
                                                              firms that
                                                               inquired
                            TAAC                              about the
                                                                 TAAF
                                                               program
------------------------------------------------------------------------
Great Lakes................................................           65

[[Page 77224]]

 
Mid-America................................................          140
Mid-Atlantic...............................................           79
Midwest....................................................           49
New England................................................           34
New York State.............................................           79
Northwest..................................................           81
Rocky Mountain.............................................          263
Southeastern...............................................           53
Southwest..................................................          390
Western....................................................          616
                                                            ------------
  Total....................................................        1,849
------------------------------------------------------------------------

     (2) The number of petitions filed under section 251
    (3) The number of petitions certified and denied by the Secretary
    (4) The average time for processing petitions after the petitions 
are filed
    As part of its overall commitment to performance evaluation and 
continuous improvement, EDA assesses the performance of the TAAF 
program both in terms of ``inputs'' (e.g., types of firms assisted, 
petition, and AP submissions) and ``outputs'' (changes in sales, 
employment levels, and productivity of client firms).
    In terms of inputs, the TAAF program effectively targeted small and 
medium-sized firms in FY 2012. EDA received 85 petitions, of which 83 
were filed (accepted for investigation) under section 251 of the Trade 
Act, down by 46 petitions, a 36 percent decrease, compared to the 
number of petitions filed in FY 2011. EDA certified 79 petitions, down 
by 70 petitions, a 47 percent decrease compared to the number of 
certifications in FY 2011.\8\ Petitions are certified on a rolling 
basis throughout the year. Petitions certified in FY 2012 may be the 
result of those received or filed (accepted) in FY 2011, while 
petitions received or filed (accepted) in FY 2012 may not result in 
certification in FY 2012.
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    \8\ Some TAACs believe that fewer firms were eligible to 
participate in the program because the economy's improvement from FY 
2010 and FY 2011 prevented some firms from demonstrating a decrease 
in employment, sales and production required for eligibility.
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    EDA met the 40-day processing deadline (to make a final 
determination for petitions accepted for filing) in FY 2012. In fact, 
the average processing time for petitions was 29 business days.
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    \9\ Petitions are certified on a rolling basis throughout the 
year, therefore activity in these categories may not result in 
certification within the same FY. These totals represent the 
activity under each category within FY 2012.

                                                   Exhibit 5--Petition Activity: FY 2008--FY 2012 \9\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        Average days
                                                  Number of         Number of         Number of         Number of          between        Average days
                     FY                           petitions         petitions         petitions     petitions denied     acceptance      between receipt
                                                  received        accepted for        certified       or withdrawn      (filing) and           and
                                                                     filing                                             certification     certification
--------------------------------------------------------------------------------------------------------------------------------------------------------
2008........................................               186               189               182                 0                35                43
2009........................................               276               243               216                 1                30                51
2010........................................               311               329               330                 0                31                74
2011........................................               128               129               149                22                21                36
2012........................................                85                83                79                 3                29                58
                                             -----------------------------------------------------------------------------------------------------------
% Change (2011 to 2012).....................             (34%)             (36%)             (47%)             (86%)               38%               61%
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 77225]]

[GRAPHIC] [TIFF OMITTED] TN31DE12.008


[[Page 77226]]


                 Exhibit 9--Petitions Received, Accepted (Filed) and Certified by TAAC: FY 2012
----------------------------------------------------------------------------------------------------------------
                                                                                  Number of
                                                                Number of         petitions         Number of
                           TAAC                                 petitions       accepted for        petitions
                                                                received           filing           certified
----------------------------------------------------------------------------------------------------------------
Great Lakes...............................................                 5                 5                 5
Mid-America...............................................                 2                 2                 2
MidAtlantic...............................................                11                10                 6
Midwest...................................................                19                19                20
New England...............................................                 9                10                10
New York State............................................                 7                 7                 6
Northwest.................................................                 8                 8                 6
Rocky Mountain............................................                 8                 9                10
Southeastern..............................................                 2                 2                 1
Southwest.................................................                 9                 9                11
Western...................................................                 5                 2                 2
                                                           -----------------------------------------------------
    Total.................................................                85                83                79
----------------------------------------------------------------------------------------------------------------

                                                                                                [GRAPHIC] [TIFF OMITTED] TN31DE12.009
                                                                                                

                   Exhibit 11--Petitions Filed, Accepted, and Certified by TAAC/State: FY 2012
----------------------------------------------------------------------------------------------------------------
                                                                                  Petitions
                        TAAC/State                              Petitions       accepted for        Petitions
                                                                received           filing           certified
----------------------------------------------------------------------------------------------------------------
Great Lakes...............................................                 5                 5                 5
    IN....................................................                 0                 0                 0
    MI....................................................                 3                 3                 3
    OH....................................................                 2                 2                 2
Mid-America...............................................                 2                 2                 2
    AR....................................................                 0                 0                 0
    KS....................................................                 1                 1                 1
    MO....................................................                 1                 1                 1
Mid-Atlantic..............................................                11                10                 6
    DC....................................................                 0                 0                 0
    DE....................................................                 0                 0                 0
    MD....................................................                 0                 0                 0
    NJ....................................................                 2                 1                 0
    PA....................................................                 9                 9                 6
    VA....................................................                 0                 0                 0
    WV....................................................                 0                 0                 0
Midwest...................................................                19                19                20
    IA....................................................                 2                 2                 2
    IL....................................................                13                13                13
    MN....................................................                 1                 1                 1
    WI....................................................                 3                 3                 4
New England...............................................                 9                10                10
    CT....................................................                 1                 1                 1
    MA....................................................                 3                 4                 4
    ME....................................................                 2                 2                 2

[[Page 77227]]

 
    NH....................................................                 0                 0                 0
    RI....................................................                 1                 1                 1
    VT....................................................                 2                 2                 2
New York State............................................                 7                 7                 6
    NY....................................................                 7                 7                 6
Northwest.................................................                 8                 8                 6
    AK....................................................                 0                 0                 0
    ID....................................................                 2                 2                 2
    MT....................................................                 1                 1                 1
    OR....................................................                 2                 2                 1
    WA....................................................                 3                 3                 2
                                                            ................  ................  ................
Rocky Mountain............................................                 8                 9                10
    CO....................................................                 3                 4                 4
    NE....................................................                 0                 0                 1
    NM....................................................                 0                 0                 0
    ND....................................................                 0                 0                 0
    SD....................................................                 2                 2                 2
    UT....................................................                 2                 2                 2
    WY....................................................                 1                 1                 1
Southeastern..............................................                 2                 2                 1
    AL....................................................                 1                 1                 1
    FL....................................................                 0                 0                 0
    GA....................................................                 0                 0                 0
    KY....................................................                 0                 0                 0
    MS....................................................                 0                 0                 0
    NC....................................................                 1                 1                 0
    SC....................................................                 0                 0                 0
    TN....................................................                 0                 0                 0
    PR....................................................                 0                 0                 0
    Southwest.............................................                 9                 9                11
    LA....................................................                 2                 2                 4
    OK....................................................                 0                 0                 0
    TX....................................................                 7                 7                 7
    Western...............................................                 5                 2                 2
    AZ....................................................                 2                 1                 1
    CA....................................................                 1                 0                 0
    NV....................................................                 2                 1                 1
===========================================================
----------------------------------------------------------------------------------------------------------------

    The majority of petitions certified under the TAAF program were 
submitted by firms in the manufacturing industry. Firms in technical 
services, transportation, and wholesale trade rounded out the remaining 
industries\10\.
---------------------------------------------------------------------------

    \10\ As identified by the firm's North American Industry 
Classification System (NAICS) code.

---------------------------------------------------------------------------

[[Page 77228]]

[GRAPHIC] [TIFF OMITTED] TN31DE12.010

    In FY 2012, 6 percent of firms certified for TAAF were identified 
by the TAACs as service sector firms.\11\ This is an increase over FY 
2011, where 2 percent of firms certified were identified by the TAACs 
as service sector firms. As a result the Trade Adjustment Assistance 
Extension Act of 2011 (Pub. L. 112-40), which retroactively extended 
the provisions of the TAA programs that were enacted as part of the 
TGAAA, demand from service firms is likely to continue to increase.
---------------------------------------------------------------------------

    \11\ Firms in the service sector may also perform dual functions 
as manufacturing firms and may have been categorized by TAACs as 
manufacturing firm.

                                         Exhibit 13--Firms Certified for TAAF Service vs. Manufacturing: FY 2012
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                      Percentage of                       Percentage of
                                                                 Total number of    Manufacturing     manufacturing                       service firms
                              FY                                 firms certified        firms        firms certified    Service firms       certified
                                                                                                        (percent)                           (percent)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2011..........................................................               149               146                98                 3                 2
2012..........................................................                79                74                94                 5                 6
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (5) The number of petitions filed and firms certified for each 
Congressional District in the United States

  Exhibit 14--Petitions Filed (Accepted) and Certified by Congressional
                            District: FY 2012
------------------------------------------------------------------------
                                                 Petitions
       TAAC/State congressional district          accepted    Petitions
                                                 for filing   certified
------------------------------------------------------------------------
Great Lakes...................................            5            5
IN............................................            0            0
MI............................................            3            3
2.............................................            1            1
3.............................................            1            1
4.............................................            1            1
OH............................................            2            2
6.............................................            1            1
11............................................            1            1
Mid-America...................................            2            2
AR............................................            0            0
KS............................................            1            1
4.............................................            1            1
MO............................................            1            1
8.............................................            1            1
MidAtlantic...................................           10            6
DC............................................            0            0
DE............................................            0            0
MD............................................            0            0
NJ............................................            1            0
7.............................................            1            0
PA............................................            9            6
1.............................................            1            1
3.............................................            1            0
8.............................................            1            1
10............................................            1            1
11............................................            1            1
15............................................            1            0
19............................................            3            2
VA............................................            0            0
WV............................................            0            0
Midwest.......................................           19           20
IA............................................            2            2
1.............................................            1            1
4.............................................            1            1
IL............................................           13           13
1.............................................            1            1
5.............................................            1            2
6.............................................            1            1
7.............................................            2            2
8.............................................            2            1
10............................................            4            4
14............................................            1            1
16............................................            1            1
MN............................................            1            1
4.............................................            1            1
WI............................................            3            4
4.............................................            1            1
6.............................................            0            1
7.............................................            2            2
New England...................................           10           10
CT............................................            1            1
2.............................................            1            1
MA............................................            4            4
2.............................................            1            1
5.............................................            1            1
9.............................................            1            1
10............................................            1            1
ME............................................            2            2
1.............................................            2            2
NH............................................            0            0
RI............................................            1            1

[[Page 77229]]

 
2.............................................            1            1
VT............................................            2            2
1.............................................            1            1
5.............................................            1            1
New York State................................            7            6
NY............................................            7            6
5.............................................            1            1
14............................................            1            1
20............................................            1            0
21............................................            1            1
24............................................            1            1
29............................................            2            2
Northwest.....................................            8            6
AK............................................            0            0
ID............................................            2            2
1.............................................            1            1
2.............................................            1            1
MT............................................            1            1
At-Large......................................            1            1
OR............................................            2            1
2.............................................            2            1
WA............................................            3            2
2.............................................            2            1
3.............................................            1            1
Rocky Mountain................................            9           10
CO............................................            4            4
1.............................................            2            2
2.............................................            1            1
6.............................................            1            1
NE............................................            0            1
2.............................................            0            1
NM............................................            0            0
ND............................................            0            0
SD............................................            2            2
At-Large......................................            2            2
UT............................................            2            2
1.............................................            1            1
2.............................................            1            1
WY............................................            1            1
At-Large......................................            1            1
Southeastern..................................            2            1
AL............................................            1            1
3.............................................            1            1
FL............................................            0            0
GA............................................            0            0
KY............................................            0            0
MS............................................            0            0
NC............................................            1            0
12............................................            1            0
SC............................................            0            0
TN............................................            0            0
PR............................................            0            0
Southwest.....................................            9           11
LA............................................            2            4
1.............................................            1            2
3.............................................            1            2
OK............................................            0            0
TX............................................            7            7
6.............................................            1            1
13............................................            2            2
20............................................            1            1
23............................................            1            1
26............................................            1            1
28............................................            1            1
Western.......................................            2            2
AZ............................................            1            1
4.............................................            1            1
CA............................................            0            0
NV............................................            1            1
2.............................................            1            1
                                               -------------------------
    Total.....................................           83           79
------------------------------------------------------------------------

    (6) Of the number of petitions filed, the number of firms that 
entered the program and received benefits\12\
---------------------------------------------------------------------------

    \12\ Benefits are defined as technical assistance provided to 
TAAF-certified firms in preparing and implementing business recovery 
plans (APs).
---------------------------------------------------------------------------

    In FY 2012, 83 petitions were accepted (filed) for certification, 
of which 79 were certified. Of the 79 firms certified in FY 2012, 57 
firms submitted and were approved for an AP in the same fiscal 
year\13\.
---------------------------------------------------------------------------

    \13\ Firms have up to two years from the date of TAAF 
certification to submit a business recovery plan (AP). These totals 
represent the firms certified for TAAF in FY 2012 that also 
submitted and received an approved business recovery plan in the 
same fiscal year. The total number of APs approved in FY 2012 is 
reported in Exhibits 19, 20 and 21.

        Exhibit 15--Petitions Certified and APs Approved: FY 2012
------------------------------------------------------------------------
                                                              Number of
                                    Number of                    APs
                                    petitions    Number of     approved
               TAAC                  accepted    petitions    for firms
                                    for filing   certified    certified
                                                              in FY 2012
------------------------------------------------------------------------
Great Lakes......................            5            5            5
Mid-America......................            2            2            1
MidAtlantic......................           10            6            2
Midwest..........................           19           20           16
New England......................           10           10           10
New York State...................            7            6            2
Northwest........................            8            6            6
Rocky Mountain...................            9           10           10
Southeastern.....................            2            1            1
Southwest........................            9           11            4
Western..........................            2            2            0
Total............................           83           79           57
------------------------------------------------------------------------

     (7) The number of firms that received assistance in preparing 
their petitions
    In FY 2012, 341 firms received assistance in preparing petitions. 
Firms may receive assistance in all phases of preparing petitions more 
than once in a single year. Petition assistance rendered may not result 
in the submission of a petition in the fiscal year.
    Exhibit 16: Petition Assistance Activity: FY 2012

            Exhibit 16--Petition Assistance Activity: FY 2012
------------------------------------------------------------------------
                                                               Petition
                            TAAC                              Assistance
------------------------------------------------------------------------
Great Lakes................................................           13
Mid-America................................................           15
MidAtlantic................................................           22

[[Page 77230]]

 
Midwest....................................................          117
New England................................................           10
New York State.............................................           36
Northwest..................................................           18
Rocky Mountain.............................................           15
Southeastern...............................................           36
Southwest..................................................           37
Western....................................................           22
Total......................................................          341
------------------------------------------------------------------------

    (8) The number of firms that received assistance developing 
business recovery plans
    In FY 2012, 206 firms received assistance in developing APs and 935 
firms received assistance in implementing projects in these plans. 
Firms may receive assistance in developing and implementing APs more 
than once in a single year. AP assistance rendered may not result in 
the submission or implementation of an AP in the current fiscal year.

              Exhibit 17--AP Development Activity: FY 2012
------------------------------------------------------------------------
                                                                  AP
                            TAAC                             Development
                                                              Assistance
------------------------------------------------------------------------
Great Lakes................................................            7
Mid-America................................................            6
MidAtlantic................................................           12
Midwest....................................................           61
New England................................................           14
New York State.............................................           25
Northwest..................................................           11
Rocky Mountain.............................................           11
Southeastern...............................................            5
Southwest..................................................           48
Western....................................................            6
Total......................................................          206
------------------------------------------------------------------------


             Exhibit 18--AP Implementation Activity: FY 2012
------------------------------------------------------------------------
                                                                AP
                          TAAC                            Implementation
                                                            Assistance
------------------------------------------------------------------------
Great Lakes.............................................             71
Mid-America.............................................            153
MidAtlantic.............................................             81
Midwest.................................................            142
New England.............................................            133
New York State..........................................             45
Northwest...............................................             80
Rocky Mountain..........................................             74
Southeastern............................................             65
Southwest...............................................             52
Western.................................................             39
Total...................................................            935
------------------------------------------------------------------------

    (9) The number of business recovery plans approved and denied by 
the Secretary
    In FY 2012, EDA approved 102 APs, down by 81 compared to FY 2011, a 
44 percent decrease over this period \14\. EDA successfully met the 60-
day processing deadline for approval of APs. The average processing 
time for APs was 21 business days \15\.
---------------------------------------------------------------------------

    \14\ Some TAACs believe that fewer firms were eligible to 
participate in the program because the economy's improvement from FY 
2010 and FY 2011 prevented some firms from demonstrating a decrease 
in employment, sales, and production required for eligibility. 
Subsequently, fewer APs were submitted.
    \15\ Firms have two years from the date of certification to 
submit an AP to EDA. APs approved in FY 2012 may represent firms 
that were certified for TAAF between FY 2010--FY 2012.

                                                  Exhibit 19--Summary of APs Approved: FY 2008--FY 2012
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                           Average        Average days
                                                Number of APs   Total government                     Total projected     government          between
                     FY                           approved            share       Total firm share      AP costs       assistance per    submission and
                                                                                                                            firm            approval
--------------------------------------------------------------------------------------------------------------------------------------------------------
2008........................................               143        $8,202,625        $7,711,375       $15,914,000           $57,361                21
2009........................................               172        10,393,639         9,888,201        20,281,840            60,428                20
2010........................................               264        16,448,946        15,743,946        32,192,892            62,307                24
2011........................................               183        11,075,545        10,580,545        21,656,090            60,522                16
2012........................................               102         5,437,455         5,033,455        10,470,910            53,308                21
                                             -----------------------------------------------------------------------------------------------------------
Total.......................................               864        51,558,210        48,957,522       100,515,732            59,674                20
                                             -----------------------------------------------------------------------------------------------------------
% Change....................................             (44%)             (51%)             (52%)             (52%)             (12%)               31%
(2011 to 2012)..............................
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 77231]]

[GRAPHIC] [TIFF OMITTED] TN31DE12.011

    Exhibit 21: APs Approved by TAAC/State: FY 2012

                               Exhibit 20--APs Approved by TAAC: FY 2008--FY 2012
----------------------------------------------------------------------------------------------------------------
                                                            Government share    Firm share of
               TAAC/State                   Number of APs    of approved AP      approved AP     Total approved
                                              approved          projects          projects         AP projects
----------------------------------------------------------------------------------------------------------------
Great Lakes.............................                 6          $345,000          $315,000          $660,000
    MI..................................                 3           172,500           157,500           330,000
    OH..................................                 3           172,500           157,500           330,000
Mid-America.............................                 3           225,000           225,000           450,000
    KS..................................                 2           150,000           150,000           300,000
    MO..................................                 1            75,000            75,000           150,000
MidAtlantic.............................                10           519,650           504,650         1,024,300
    PA..................................                10           519,650           504,650         1,024,300
    Midwest.............................                23         1,177,972         1,057,972         2,235,944
    IA..................................                 1            22,500             7,500            30,000
    IL..................................                17           885,472           810,472         1,695,944
    MN..................................                 1            75,000            75,000           150,000
    WI..................................                 4           195,000           165,000           360,000
New England.............................                14           600,000           510,000         1,110,000
    CT..................................                 3           122,500           107,500           230,000
    MA..................................                 5           130,000            70,000           200,000
    ME..................................                 2           150,000           150,000           300,000
    RI..................................                 2            47,500            32,500            80,000
    VT..................................                 2           150,000           150,000           300,000
                                          ................  ................  ................  ................
New York State..........................                 9           604,000           590,000         1,194,000
    NY..................................                 9           604,000           590,000         1,194,000
Northwest...............................                 9           583,333           568,333         1,151,666
    ID..................................                 3           172,500           157,500           330,000
    MT..................................                 1            75,000            75,000           150,000
    OR..................................                 2           128,000           128,000           256,000
    WA..................................                 3           207,833           207,833           415,666
Rocky Mountain..........................                11           527,500           527,500         1,055,000
    CO..................................                 4           160,000           160,000           320,000
    NE..................................                 1            30,000            30,000            60,000
    NM..................................                 1            75,000            75,000           150,000
    SD..................................                 2            82,500            82,500           165,000
    UT..................................                 2           150,000           150,000           300,000
    WY..................................                 1            30,000            30,000            60,000
                                          ................  ................  ................  ................
Southeastern............................                 5           217,500           172,500           390,000
    AL..................................                 1            75,000            75,000           150,000
    GA..................................                 1            22,500             7,500            30,000
    NC..................................                 2            97,500            82,500           180,000

[[Page 77232]]

 
    SC..................................                 1            22,500             7,500            30,000
Southwest...............................                10           592,500           547,500         1,140,000
    LA..................................                 3           120,000            90,000           210,000
    OK..................................                 2           150,000           150,000           300,000
    TX..................................                 5           322,500           307,500           630,000
Western.................................                 2            45,000            15,000            60,000
    CA..................................                 2            45,000            15,000            60,000
                                         -----------------------------------------------------------------------
        Total...........................               102         5,437,455         5,033,455        10,470,910
----------------------------------------------------------------------------------------------------------------

    (10) Average duration of benefits received under the program 
nationally and in each region served by an intermediary organization 
(the TAAC) referred to in section 253(b)(1) of the Trade Act
    In FY 2012, 145 firms exited the TAAF program after being approved 
for an AP. Nationally, firms receive on average 57 months \16\ of 
benefits under the TAAF program. When calculating the average duration 
of benefits regionally, firms received on average 55 months of benefits 
under the TAAF program.
---------------------------------------------------------------------------

    \16\ Prior to 2008, firms were allowed in excess of five years 
to complete projects, resulting in a longer than average duration of 
benefits. Firms have five years from the date of AP approval to 
complete their projects.

 Exhibit 22: Average Duration of Benefits Received--Firms that Completed
                            Program: FY 2012
------------------------------------------------------------------------
                                                                No. of
                                                                months
                                                                firms
                        Firm number                            received
                                                               benefits
                                                              under TAAF
                                                               program
------------------------------------------------------------------------
GLTAAC-EXT-001.............................................           34
GLTAAC-EXT-002.............................................           56
GLTAAC-EXT-003.............................................           53
GLTAAC-EXT-004.............................................           39
MamTAAC-EXT-001............................................           63
MamTAAC-EXT-002............................................           66
MamTAAC-EXT-003............................................          135
MamTAAC-EXT-004............................................           15
MamTAAC-EXT-005............................................           82
MamTAAC-EXT-006............................................           78
MamTAAC-EXT-007............................................           78
MamTAAC-EXT-008............................................           48
MamTAAC-EXT-009............................................           66
MamTAAC-EXT-010............................................           65
MamTAAC-EXT-011............................................           64
MamTAAC-EXT-012............................................           38
MamTAAC-EXT-013............................................           91
MamTAAC-EXT-014............................................           84
MamTAAC-EXT-015............................................           74
MamTAAC-EXT-016............................................           56
MamTAAC-EXT-017............................................           90
MamTAAC-EXT-018............................................           25
MamTAAC-EXT-019............................................           70
MamTAAC-EXT-020............................................           76
MamTAAC-EXT-021............................................           32
MamTAAC-EXT-022............................................           72
MamTAAC-EXT-023............................................           72
MamTAAC-EXT-024............................................           78
MamTAAC-EXT-025............................................           63
MamTAAC-EXT-026............................................           24
MamTAAC-EXT-027............................................           25
MamTAAC-EXT-028............................................           43
MamTAAC-EXT-029............................................           70
MamTAAC-EXT-030............................................           79
MamTAAC-EXT-031............................................           70
MamTAAC-EXT-032............................................           71
MamTAAC-EXT-033............................................           71
MamTAAC-EXT-034............................................           83
MATAAC-EXT-001.............................................           23
MATAAC-EXT-002.............................................           53
MATAAC-EXT-003.............................................           16
MATAAC-EXT-004.............................................           53
MATAAC-EXT-005.............................................           59
MATAAC-EXT-006.............................................           34
MATAAC-EXT-007.............................................           46
MATAAC-EXT-008.............................................           35
MATAAC-EXT-009.............................................           46
MATAAC-EXT-010.............................................           59
MATAAC-EXT-011.............................................           41
MATAAC-EXT-012.............................................           32
MATAAC-EXT-013.............................................           72
MWTAAC-EXT-001.............................................           25
MWTAAC-EXT-002.............................................           24
MWTAAC-EXT-003.............................................           79
MWTAAC-EXT-004.............................................           72
MWTAAC-EXT-005.............................................           68
MWTAAC-EXT-006.............................................           76
MWTAAC-EXT-007.............................................           69
MWTAAC-EXT-008.............................................           65
MWTAAC-EXT-009.............................................           48
MWTAAC-EXT-010.............................................           61
MWTAAC-EXT-011.............................................           61
MWTAAC-EXT-012.............................................           71
MWTAAC-EXT-013.............................................           32
MWTAAC-EXT-014.............................................           24
MWTAAC-EXT-015.............................................           24
MWTAAC-EXT-016.............................................           72
NETAAC-EXT-001.............................................           19
NETAAC-EXT-002.............................................           64
NETAAC-EXT-003.............................................           53
NETAAC-EXT-004.............................................           23
NETAAC-EXT-005.............................................           18
NETAAC-EXT-006.............................................           22
NETAAC-EXT-007.............................................           14
NETAAC-EXT-008.............................................           42
NETAAC-EXT-009.............................................           33
NETAAC-EXT-010.............................................           70
NETAAC-EXT-011.............................................           53
NETAAC-EXT-012.............................................           23
NETAAC-EXT-013.............................................           26
NETAAC-EXT-014.............................................           25
NETAAC-EXT-015.............................................           33
NWTAAC-EXT-001.............................................           71
NWTAAC-EXT-002.............................................           92
NWTAAC-EXT-003.............................................           21
NWTAAC-EXT-004.............................................           81
NWTAAC-EXT-005.............................................           80
NWTAAC-EXT-006.............................................           82
NWTAAC-EXT-007.............................................           20
NWTAAC-EXT-008.............................................           13
NWTAAC-EXT-009.............................................           63
NWTAAC-EXT-010.............................................           20
NWTAAC-EXT-011.............................................           20
NWTAAC-EXT-012.............................................           40
NYSTAAC-EXT-001............................................           43
NYSTAAC-EXT-002............................................           22
NYSTAAC-EXT-003............................................           64
NYSTAAC-EXT-004............................................           49
RMTAAC-EXT-001.............................................           51
RMTAAC-EXT-002.............................................           81
RMTAAC-EXT-003.............................................           84
RMTAAC-EXT-004.............................................           81
RMTAAC-EXT-005.............................................           60
RMTAAC-EXT-006.............................................           69
RMTAAC-EXT-007.............................................           67
RMTAAC-EXT-008.............................................           36
RMTAAC-EXT-009.............................................           72
RMTAAC-EXT-010.............................................           36
RMTAAC-EXT-011.............................................           29
RMTAAC-EXT-012.............................................           79
RMTAAC-EXT-013.............................................           30
RMTAAC-EXT-014.............................................           77

[[Page 77233]]

 
RMTAAC-EXT-015.............................................           46
RMTAAC-EXT-016.............................................           78
RMTAAC-EXT-017.............................................           75
RMTAAC-EXT-018.............................................           49
SETAAC-EXT-001.............................................           36
SETAAC-EXT-002.............................................           30
SETAAC-EXT-003.............................................           45
SETAAC-EXT-004.............................................           36
SETAAC-EXT-005.............................................           36
SETAAC-EXT-006.............................................           53
SETAAC-EXT-007.............................................           80
SETAAC-EXT-008.............................................           73
SWTAAC-EXT-001.............................................           80
SWTAAC-EXT-002.............................................           26
SWTAAC-EXT-003.............................................           26
SWTAAC-EXT-004.............................................           68
SWTAAC-EXT-005.............................................           68
SWTAAC-EXT-006.............................................           69
SWTAAC-EXT-007.............................................           66
SWTAAC-EXT-008.............................................           80
SWTAAC-EXT-009.............................................           74
SWTAAC-EXT-010.............................................           24
WTAAC-EXT-001..............................................           90
WTAAC-EXT-002..............................................          122
WTAAC-EXT-003..............................................           81
WTAAC-EXT-004..............................................           91
WTAAC-EXT-005..............................................          116
WTAAC-EXT-006..............................................           87
WTAAC-EXT-007..............................................           82
WTAAC-EXT-008..............................................          127
WTAAC-EXT-009..............................................          114
WTAAC-EXT-010..............................................          108
WTAAC-EXT-011..............................................          109
Total National Average.....................................           57
                                                            ------------
------------------------------------------------------------------------


 Exhibit 23--Average Duration of Benefits Received--Firms That Completed
                    Program by TAAC (Region): FY 2012
------------------------------------------------------------------------
                                                               Average
                                                              Number of
                                                                months
                            TAAC                                firms
                                                               received
                                                               benefits
------------------------------------------------------------------------
Great Lakes................................................           46
Mid-America................................................           65
Mid-Atlantic...............................................           44
Midwest....................................................           54
New England................................................           35
New York State.............................................           45
Northwest..................................................           50
Rocky Mountain.............................................           61
Southeastern...............................................           49
Southwest..................................................           58
Western....................................................          102
------------------------------------------------------------------------

     (11) Sales, employment, and productivity at each firm 
participating in the TAAF program at the time of certification
    In FY 2012, 889 active firms participated in the TAAF program. A 
firm that has been certified for TAAF, and/or has an approved AP, has 
not completed all projects in their AP, and is still engaged in the 
TAAF program is considered ``active.'' For the purposes of this report, 
productivity is defined as net sales per employee. Since the certified 
firms are in various industries, which have a variety of ways to 
measure productivity, sales per employee is utilized as a standardized 
measure for assessing productivity across all firms assisted.

 Exhibit 24--Sales, Employment, and Productivity \17\ at All Firms Participating in the TAAF Program in FY 2012
                                               by TAAC and State:
----------------------------------------------------------------------------------------------------------------
                                            Total No. of
               TAAC/State                  Active Firms in   Total Sales at   Total Employment    Total Average
                                               FY 2012        Certification   at Certification    Productivity
----------------------------------------------------------------------------------------------------------------
Great Lakes.............................                73    $1,791,172,281             9,760          $183,522
    IN..................................                18       278,004,201             2,253           123,393
    MI..................................                31       547,706,669             2,254           242,993
    OH..................................                24       965,461,411             5,253           183,792
Mid-America.............................                46       682,877,581             4,951           137,927
    AR..................................                 7        16,401,481               340            48,240
    KS..................................                15       149,072,277             1,436           103,811
    MO..................................                24       517,403,823             3,175           162,962
MidAtlantic.............................                90     1,049,770,941             6,548           160,319
    MD..................................                 3         5,500,143                47           117,024
    NJ..................................                 4        22,286,404               195           114,289
    PA..................................                80     1,008,680,988             6,121           164,790
    VA..................................                 3        13,303,406               185            71,910
Midwest.................................               137     2,212,081,842            11,961           184,941
    IA..................................                 5       120,097,360               519           231,401
    IL..................................                81       843,583,273             4,887           172,618
    MN..................................                23       367,933,664             2,512           146,470
    WI..................................                28       880,467,545             4,043           217,776
New England.............................               133     1,011,453,493             6,479           156,113
    CT..................................                19       135,382,965               926           146,202
    MA..................................                60       400,041,096             2,574           155,416
    ME..................................                15       230,970,276             1,177           196,236
    NH..................................                20       131,043,944               902           145,282
    RI..................................                16        77,235,126               619           124,774
    VT..................................                 3        36,780,086               281           130,890
New York State..........................                61     1,172,727,977             4,823           243,153
    NY..................................                61     1,172,727,977             4,823           243,153

[[Page 77234]]

 
Northwest...............................                85       913,564,319             5,745           159,019
    AK..................................                 4        22,825,992               110           207,509
    ID..................................                11        62,150,148               688            90,335
    MT..................................                11        54,667,266               415           131,728
    OR..................................                20       419,792,240             2,211           189,865
    WA..................................                39       354,128,673             2,321           152,576
Rocky Mountain..........................                67     2,479,134,862            10,068           246,239
    CO..................................                28       994,105,459             2,956           336,301
    ND..................................                 6       155,904,843               714           218,354
    NE..................................                 5        32,840,837               243           135,147
    NM..................................                 4        40,663,880               290           140,220
    SD..................................                 8       342,138,076             1,246           274,589
    UT..................................                13       862,552,034             4,302           200,500
    WY..................................                 3        50,929,733               317           160,662
Southeastern............................                67       998,693,863            10,038            99,491
    AL..................................                 4        28,653,300               346            82,813
    FL..................................                 6        18,996,354               191            99,457
    GA..................................                13        90,265,046               978            92,296
    KY..................................                 3        91,456,507               488           187,411
    MS..................................                 1         2,496,868                21           118,898
    NC..................................                25       511,427,054             6,607            77,407
    SC..................................                10       183,496,458               922           199,020
    TN..................................                 5        71,902,276               485           148,252
Southwest...............................                90       421,071,529             3,637           115,774
    LA..................................                19       114,522,181               551           207,844
    OK..................................                30       156,841,533             1,563           100,346
    TX..................................                41       149,707,815             1,523            98,298
Western.................................                40       773,072,997             3,507           220,437
    AZ..................................                 3        92,655,000               400           231,638
    CA..................................                35       657,349,131             2,981           220,513
    HI..................................                 2        23,068,866               126           183,086
Total (Nationwide)......................               889    13,505,621,685            77,517       174,228\18\
----------------------------------------------------------------------------------------------------------------

    (12) Sales, employment, and productivity at each firm upon 
completion of the program and each year for the two-year period 
following completion
---------------------------------------------------------------------------

    \17\ The total productivity as presented in across TAACs, States 
and the summary line of Exhibit 24 represents the actual total 
average productivity in FY 2012. This total, derived by calculating 
the mean horizontally (not vertically), is based on raw data and 
provides the most accurate representation of productivity for all 
TAACs and States. While this figure is provided in the table, it 
should be noted that calculating total productivity vertically 
introduces additional degrees of error as it represents the average 
of averages.\18\ The total productivity as presented in across 
TAACs, States and the summary line of Exhibit 24 represents the 
actual total average productivity in FY 2012. This total, derived by 
calculating the mean horizontally (not vertically), is based on raw 
data and provides the most accurate representation of productivity 
for all TAACs and States. While this figure is provided in the 
table, it should be noted that calculating total productivity 
vertically introduces additional degrees of error as it represents 
the average of averages.
---------------------------------------------------------------------------

    (13) The number of firms in operation as of the date of this report 
and the number of firms that ceased operations after completing the 
program in each year during the two-year period following completion of 
the program
    In order to assess the effectiveness of the TAAF program in terms 
of outputs, EDA assesses the extent to which client firms increased 
their sales, employment levels, and productivity following the 
implementation of TAAF-supported projects (program completion). To 
measure these outputs, EDA compares average sales, average employment 
and average productivity of all firms completing the program in a 
particular year (the most recent ``base year'') to these same measures 
for the same firms one and two years following program completion. The 
base year used for this report is FY 2010, as this allows EDA to 
compare these measures looking back both one and two years from the 
date of this report.
    Firms that completed the TAAF program in FY 2010 reported that, at 
completion, average sales were $10.1 million, average employment was 53 
and average sales per employee (productivity) was $191,328. One year 
after completing the program (FY 2011), these same firms reported that 
average sales increased by 11.4 percent, average employment increased 
by 13.2 percent, and average productivity decreased by 1.6 percent. For 
the sake of comparison to the universe of U.S. manufacturers, BLS 
reported that, in FY 2011, the national manufacturing industry in 
aggregate experienced an average employment increase of only 1.9 
percent.
    Two years after completing the program (FY 2012), these same firms 
reported that average sales increased by 26.8 percent, average 
employment increased by 13.2 percent, and average productivity \19\ 
increased by 11.9 percent. Meanwhile, BLS reported that the 
manufacturing industry in FY 2012 experienced an average employment 
increase of 3.5 percent and an average productivity increase of 4.1 
percent from FY 2010. Therefore, firms assisted by the TAAF program 
performed more successfully than the manufacturing industry as a whole. 
Additionally, all firms that completed the TAAF program in FY 2010 were 
in operation as of the end of FY 2012, indicating strong ``survival 
rates'' for TAAF-assisted firms. It should be noted that TAAF clients 
are operating in the same

[[Page 77235]]

economic environment as other firms, but are also attempting to adjust 
to import pressures that may not impact other firms as severely, making 
the success of TAAF-assisted firms even more notable.
---------------------------------------------------------------------------

    \19\ BLS' productivity measures relate output to the labor hours 
used in the production of that output.
---------------------------------------------------------------------------

    For the purposes of this report, data are reported only for firms 
where all data were available. Since the certified firms are in various 
industries, which have a variety of ways to measure productivity, sales 
per employee was chosen as the productivity measure. This measure is 
used because it can be generally applied to all certified firms.

 Exhibit 25--Summary of Average Sales, Employment, and Productivity at Firms upon Completion of the Program and
                              the One-Year and Two-Year Period Following Completion
----------------------------------------------------------------------------------------------------------------
                                                     1st Year        2nd Year
                                  Completion (FY     following       following     % Change 1st    % Change 2nd
                                       2010)      completion (FY  completion (FY  Year (percent)  Year (percent)
                                                       2011)           2012)
----------------------------------------------------------------------------------------------------------------
Average Sales...................     $10,140,385     $11,300,792     $12,855,193           11.4%           26.8%
Average Employment..............              53              60              60            13.2            13.2
Average Productivity............        $191,328        $188,347        $214,253          (1.6%)           11.9%
----------------------------------------------------------------------------------------------------------------


[[Page 77236]]


                              Exhibit 26--Sales, Employment, and Productivity at Each Firm Upon Completion of the Program and Two-year Period Following Completion
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                      Average         Average
                                                                   Average sales   Average sales      Average         Average         Average         Average      productivity    productivity
                                                   Average sales      1st Yr.         2nd Yr.      employment at  employment 1st  employment 2nd   productivity       1st Yr.         2nd Yr.
                     Firm ID                       at completion     following       following    completion (FY   Yr. following   Yr. following   at completion     following       following
                                                     (FY 2010)    completion (FY  completion (FY       2010)      completion (FY  completion (FY     (FY 2010)    completion (FY  completion (FY
                                                                       2011)           2012)                           2011)           2012)                           2011)           2012)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
GLTAAC-CMP-001..................................     $23,000,000     $40,200,000     $70,000,000             108             103             125        $212,963        $390,291        $560,000
GLTAAC-CMP-002..................................      33,291,000      35,000,000      46,200,000             118             115             120         282,127         304,348         385,000
GLTAAC-CMP-003..................................      33,000,000      38,000,000      36,000,000             185             330             370         178,378         115,152          97,297
MamTAAC-CMP-002.................................      30,421,806      35,697,560      28,980,224             145             161             139         209,806         221,724         208,491
MamTAAC-CMP-006.................................       9,969,765       8,969,168       6,632,938              64              69              58         155,778         129,988         114,361
MamTAAC-CMP-007.................................       5,849,007       4,778,810       5,394,320              28              18              15         208,893         265,489         359,621
MamTAAC-CMP-010.................................       1,900,000       2,533,745       3,500,000              18              22              26         105,556         115,170         134,615
MamTAAC-CMP-013.................................       1,261,088       2,084,480       2,875,000              14              17              17          90,078         122,616         169,118
MamTAAC-CMP-014.................................       2,202,559       2,635,713       2,635,713              19              21              21         115,924         125,510         125,510
MamTAAC-CMP-016.................................      10,613,000      10,980,000       8,825,000              38              43              43         279,289         255,349         205,233
MamTAAC-CMP-018.................................       7,570,000       8,456,000       9,000,000              30              33              33         252,333         256,242         272,727
MamTAAC-CMP-021.................................       4,412,568       6,984,385         939,327              19              32              20         232,240         218,262          46,966
MamTAAC-CMP-023.................................       6,414,455       5,697,336       5,027,557              89              69              59          72,073          82,570          85,213
MamTAAC-CMP-025.................................       8,694,000       5,630,530       6,331,934              45              40              45         193,200         140,763         140,710
MWTAAC-CMP-001..................................      14,603,721      14,600,000      17,800,000             124             125             130         117,772         116,800         136,923
MWTAAC-CMP-006..................................      18,585,466      21,900,000      21,900,000              80              90              90         232,318         243,333         243,333
NWTAAC-CMP-001..................................       2,100,000       3,085,000       3,000,000              22              15              14          95,455         205,667         214,286
NWTAAC-CMP-002..................................          13,000           6,000          10,000               1               1               1          13,000           6,000          10,000
NWTAAC-CMP-003..................................      55,571,000      64,167,000      66,000,000             163             188             180         340,926         341,314         366,667
NWTAAC-CMP-004..................................       3,500,000       2,680,000       8,000,000              28              18              22         125,000         148,889         363,636
NWTAAC-CMP-005..................................         680,000         440,000         450,000              12              10              10          56,667          44,000          45,000
NWTAAC-CMP-006..................................       8,000,000      13,000,000      15,000,000              65             125             100         123,077         104,000         150,000
NWTAAC-CMP-007..................................      14,000,000      10,000,000      25,000,000              45              55              65         311,111         181,818         384,615
NWTAAC-CMP-008..................................       1,730,000       1,975,000       2,400,000              35              30              28          49,429          65,833          85,714
NWTAAC-CMP-010..................................       1,900,000       2,100,000       2,200,000               5               7              12         380,000         300,000         183,333
NYSTAAC-CMP-001.................................       4,000,000       4,100,000       4,400,000              30              25              25         133,333         164,000         176,000
NYSTAAC-CMP-002.................................       2,100,000       2,100,000       2,500,000              25              25              27          84,000          84,000          92,593
NYSTAAC-CMP-003.................................         990,000         950,000         900,000               2               2               2         495,000         475,000         450,000
NYSTAAC-CMP-004.................................      12,100,000      12,200,000      13,200,000              79              78              80         153,165         156,410         165,000
NYSTAAC-CMP-005.................................         535,000         500,000         490,000               4               4               4         133,750         125,000         122,500
NYSTAAC-CMP-006.................................       4,900,000       5,600,000       5,700,000              31              34              34         158,065         164,706         167,647
NYSTAAC-CMP-007.................................       3,100,000       3,600,000       3,750,000              21              25              25         147,619         144,000         150,000
NYSTAAC-CMP-008.................................       7,800,000       7,700,000       7,900,000              65              64              65         120,000         120,313         121,538
NYSTAAC-CMP-009.................................      36,000,000      34,000,000      36,500,000             151             157             160         238,411         216,561         228,125
RMTAAC-CMP-001..................................         123,000         138,000         130,000               2               6               5          61,500          23,000          26,000
RMTAAC-CMP-002..................................       1,547,913       2,500,722       2,718,122              19              23              21          81,469         108,727         129,434
RMTAAC-CMP-003..................................       2,715,885       3,139,869       3,352,000              42              42              37          64,664          74,759          90,595
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Total Average...................................      10,140,385      11,300,792      12,855,193              53              60              60         191,328         188,347         214,253
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 77237]]

     (14) The financial assistance received by each firm participating 
in the program
    (15) The financial contribution made by each firm participating in 
the program
    In FY 2012, firms received $9.8 million in technical assistance 
provided by the TAACs to prepare petitions and to develop and implement 
APs (often through business consultants and other experts). Firms 
participating in the program contributed $6.3 million towards the 
development and implementation of APs. Funds are not provided directly 
to firms; instead, EDA funds the TAACs and TAACs pay a proportion of 
the cost to secure specialized business consultants.
[GRAPHIC] [TIFF OMITTED] TN31DE12.012

    (16) The types of technical assistance included in the business 
recovery plans of firms participating in the program
---------------------------------------------------------------------------

    \20\ This does not include the amount expended by the TAACs for 
outreach to potential new firms.
---------------------------------------------------------------------------

    In FY 2012, firms proposed various types of projects in their APs. 
Marketing/sales projects are geared toward increasing revenue, whereas 
production/manufacturing projects tend to be geared toward cutting 
costs. Support system projects can provide a competitive advantage by 
either cutting costs or creating new sales channels. Management and 
financial projects are designed to improve management's decision making 
ability and business control. Over half of all firms proposed to 
implement a marketing/sales project or production/engineering project 
in their APs. Sample projects are listed below in Exhibit 28.

[[Page 77238]]



                       Exhibit 28--Characteristics of Technical Assistance in APs: FY 2012
----------------------------------------------------------------------------------------------------------------
                                                                                Number of AP
          Project Classification                Sample types of projects        projects \21\   AP Project costs
----------------------------------------------------------------------------------------------------------------
Financial................................   Accounting systems                      10          $216,000
                                            upgrade.
                                            Cost control tracking
                                            system
                                            Automatic Data
                                            Processing development.
Management...............................   Strategic business                      30           549,166
                                            planning.
                                            Succession management
                                            Management development..
Marketing/Sales..........................   Sales process training..               103         3,984,800
                                            Market expansion and
                                            feasibility
                                            Web site design and
                                            upgrade.
Production...............................   Lean manufacturing and                  93         3,490,944
                                            certification.
                                            New product development
                                            Production and warehouse
                                            automation.
Support Systems..........................   Enterprise Resource                     65         2,230,000
                                            Planning.
                                            Management Information
                                            Systems upgrades
                                            Computer Aided Design
                                            software.
                                            Supply chain management
                                            software.
----------------------------------------------------------------------------------------------------------------

     
---------------------------------------------------------------------------

    \21\ A firm may have up to five projects in an approval AP.
    [GRAPHIC] [TIFF OMITTED] TN31DE12.013
    
    (17) The number of firms leaving the program before completing the 
project or projects in their business recovery plans and the reason the 
project or projects were not completed
    In FY 2012, of the 145 firms that left the TAAF program, 84 
completed the program, 34 did not complete approved projects in the 
time allotted, and the remaining 27 firms left for the reasons listed 
below in Exhibit 30.

     Exhibit 30--Summary of Firms Leaving the TAAF program: FY 2012
------------------------------------------------------------------------
                                                               Number of
                  Reason for leaving Program                     firms
------------------------------------------------------------------------
Bankruptcy Filing............................................          1
Completed TAAF Program.......................................         84
Expired without completing all projects within 5 year limit..         34
Firm failed to submit AP within 2 years of TAAF certification         12
Firm opted out of program....................................          2
Merger/Acquisition...........................................          4
Out of business..............................................          3
Owner deceased...............................................          2
Sold Company.................................................          3
Total........................................................        145
------------------------------------------------------------------------


[[Page 77239]]

[GRAPHIC] [TIFF OMITTED] TN31DE12.014

    (18) The total amount expended by all intermediary organizations 
referred to in Section 253(b)(1) and by each organization to administer 
the program
    On May 11, 2012, the Department of Commerce Office of Inspector 
General (OIG) presented EDA with a copy of their letter to the House 
and Senate Committees on Appropriations reporting their findings 
related to an examination of the TAAC administrative costs.\22\ As part 
of their review, OIG obtained expenditure data from a sample of three 
TAACs--Western, New England, and New York State--focusing on the use of 
Federal funds provided by EDA. The OIG reported that it ``did not 
determine that the level of administrative costs of the three TAACs to 
be unreasonable.''
---------------------------------------------------------------------------

    \22\ The information was requested in the House Committee Report 
that accompanied the FY 2012 Commerce, Justice, Science, and Related 
Agencies Appropriations bill.
---------------------------------------------------------------------------

    Indirect Costs, referred to as facilities and administrative (F&A) 
costs, include space rent and utilities, telephone, postage, printing, 
and other administrative costs. University-affiliated TAACs have 
indirect cost rate (ICR) agreements that cannot exceed the current rate 
negotiated with their cognizant Federal agency (non EDA/DOC). These 
costs are captured on the indirect cost line item on the Application 
for Federal Assistance, SF-424 (Form SF-424). Non-profit TAACs do not 
have ICR agreements; instead, they categorize similar expenditures in 
their ``Other'' line item of their Form SF-424.
    (19) The total amount expended by intermediary organizations to 
provide technical assistance to firms under the program nationally and 
in each region served by such an organization

[[Page 77240]]

[GRAPHIC] [TIFF OMITTED] TN31DE12.015

    In FY 2012, TAACs expended $10.7 million in technical assistance 
provided to the firms in outreach to firms, to prepare petitions, and 
to develop and implement APs (often through business consultants and 
other experts). Funds

[[Page 77241]]

are not provided directly to firms; instead, EDA funds the TAACs and 
TAACs pay a cost-shared proportion of the cost to secure specialized 
business consultants.

Exhibit 32: Summary of Expenditures--Technical Assistance to Firms by 
TAAC: FY 2012
[GRAPHIC] [TIFF OMITTED] TN31DE12.016

Conclusion

    Through TAAF program, EDA effectively assisted many small and 
medium-sized firms in becoming more competitive and successful in the 
global economy. EDA considers the most significant finding in this 
report to be that following completion of assistance from EDA's TAAF 
program, firms reported that, on average, sales increased by 26.8 
percent, employment increased by 13.2 percent, and productivity 
increased by 11.9 percent.
    The TAAF program effectively assisted small and medium-sized firms 
in FY 2012. TAACs provided technical assistance to 341 firms in 
preparing petitions, 206 firms in preparing APs, and 935 firms in 
implementing projects for an approved AP. Meanwhile, EDA certified 79 
petitions and approved 102 APs. As of the end of FY 2012 (September 30, 
2012), there are 889 active \23\ firms participating in the TAAF 
program.
---------------------------------------------------------------------------

    \23\ A firm that has been certified for TAAF, and/or has an 
approved Adjustment Proposal, has not completed all projects in 
their AP, and is still engaged in the TAAF program is considered 
``active.''
---------------------------------------------------------------------------

    EDA successfully met both the 40-day processing deadline (to make a 
final determination for petitions accepted for filing) and the 60-day 
processing deadline for approval of APs, as required in the TGAAA. In 
FY 2012, the average processing time for petitions was 29 business 
days, and the average processing time for APs was 21 business days.
    Firms that completed the TAAF program in FY 2010 report that 
average sales were $10.1 million, average employment was 53, and 
average sales per employee (productivity) was $191,328. One year after 
completing the program (FY 2011), these same firms reported that 
average sales increased by 11.4 percent, average employment increased 
by 13.2 percent, and average productivity decreased by 1.6 percent. For 
the sake of comparison to the universe of U.S. manufacturers, the U.S. 
Bureau of Labor Statistics (BLS) reported that, in FY 2011, the 
national manufacturing industry in aggregate experienced an average 
employment increase of only 1.9 percent meaning that firms who complete 
the program

[[Page 77242]]

are more successful than firms generally.
    Two years after completing the program (FY 2012), these same firms 
reported that average sales increased by 26.8 percent, average 
employment increased by 13.2 percent, and average productivity 
increased by 11.9 percent. Meanwhile, BLS reported that the 
manufacturing industry in FY 2012 experienced an average employment 
increase of 3.5 percent and average productivity increase of 4.1 
percent from FY 2010. Therefore, firms assisted by the TAAF program 
performed more successfully than the manufacturing industry as a whole. 
Additionally, all firms that completed the TAAF program in FY 2010 were 
in operation as of the end of FY 2012, indicating strong ``survival 
rates'' for TAAF-assisted firms. It should be noted that TAAF clients 
are operating in the same economic environment as other firms, but are 
also attempting to adjust to import pressures that may not impact other 
firms as severely, making the success of TAAF-assisted firms even more 
notable.
    On May 11, 2012, the Department of Commerce Office of Inspector 
General (OIG) presented EDA with a copy of their letter to the House 
and Senate Committees on Appropriations reporting their findings 
related to an examination of the TAAC administrative costs\24\. As part 
of their review, OIG obtained expenditure data from a sample of three 
TAACs--Western, New England, and New York State--focusing on the use of 
Federal funds provided by EDA. The OIG reported that it ``did not 
determine that the level of administrative costs of the three TAACs to 
be unreasonable.''
---------------------------------------------------------------------------

    \24\ The information was requested in the House Committee Report 
that accompanied the FY 2012 Commerce, Justice, Science, and Related 
Agencies Appropriations bill.
---------------------------------------------------------------------------

    On September 13, 2012, the U.S. Government Accountability Office 
(GAO) published the report, Trade Adjustment Assistance: Commerce 
Program Has Helped Manufacturing and Services Firms, but Measures, 
Data, and Funding Formula Could Improve (GAO-12-930). The GAO report 
documented the results of their independent analysis, which included 
strong evidence demonstrating the effectiveness of the TAAF program. 
GAO's key finding was that for firms receiving assistance between FY 
2008 and FY 2011, ``the effect of participation in the program was an 
increase in firm sales ranging from 5 to 6 percent on average,'' and 
that ``the effect of the program on productivity was about a 4 percent 
increase.'' As part of this study, GAO contacted 163 firms who had been 
involved with the TAAF program, and received responses from 117. As 
noted in the report, nearly all of the responding firms reported they 
were generally or very satisfied with the program. Manufacturing firms, 
specifically, reported that the program was associated with increased 
sales and productivity. Notably, an impressive 73 percent of the firms 
reported the program helped them with profitability, 71 percent said it 
helped them retain employees, and 57 percent reported that the program 
helped them hire new employees.
    EDA is currently implementing a performance measurement improvement 
process for all its programs, including TAAF, which began in late 2011 
and consists of two phases: planning and development, and 
implementation. The one-year planning and development stage is expected 
to be completed in FY 2013. The first phase includes the following 
activities: researching and identifying improved metrics and 
indicators, testing the metrics and indicators across the full 
portfolio of EDA investments, and developing a work plan for 
implementing measures that are adopted. To assist with this effort, EDA 
has partnered with the University of North Carolina and George 
Washington University to develop draft performance measures utilizing 
state-of-the-art performance measurement and program evaluation 
techniques.
    The subsequent implementation phase of the performance measurement 
improvement process will include the following activities: obtaining 
Office of Management and Budget approval of data collection forms, 
developing a database to store collected data, updating programmatic 
guidance and regulations, and examining the allocation formula used to 
distribute program funds to the TAACs in collaboration with both TAACs 
and Congressional stakeholders. The entire process is expected to be 
completed by the end of 2014.
    The performance measurement improvement process will help EDA be 
even a stronger partner to its clients and grantees. Through more 
effective program management and performance assessment, EDA will be in 
a better position to achieve the desired results for each of its 
programs.

Supplement

TAAF Program Benefits to Manufacturing Firms

    On September 13, 2012, the U.S. Government Accountability Office 
(GAO) published the report, Trade Adjustment Assistance: Commerce 
Program Has Helped Manufacturing and Services Firms, but Measures, 
Data, and Funding Formula Could Improve (GAO-12-930). The GAO report 
documented the results of their independent analysis, which included 
strong evidence demonstrating the effectiveness of the TAAF program. 
GAO's key finding was that for firms receiving assistance between FY 
2008 and FY 2011, ``the effect of participation in the program was an 
increase in firm sales ranging from 5 to 6 percent on average,'' and 
that ``the effect of the program on productivity was about a 4 percent 
increase.'' As part of this study, GAO contacted 163 firms who had been 
involved with the TAAF program, and received responses from 117. As 
noted in the report, nearly all of the responding firms reported they 
were generally or very satisfied with the program. Manufacturing firms, 
specifically, reported that the program was associated with increased 
sales and productivity. Notably, an impressive 73 percent of the firms 
reported the program helped them with profitability, 71 percent said it 
helped them retain employees, and 57 percent reported that the program 
helped them hire new employees.

Examples of TAAF Assistance

Great Lakes Trade Adjustment Assistance Center (GLTAAC)

    This Michigan firm manufactures self-adhesive strip and sheet 
products for the automotive industry. The firm lost 38 percent of its 
sales in 2009 as demand disappeared and customers frantically switched 
to low cost foreign suppliers. It entered the TAAF program in 2010. The 
firm needed to improve its productivity and streamline its business 
processes. To accomplish this, replacing the firm's antiquated 
Enterprise Resource Planning (ERP) system was paramount. After much 
research, the firm licensed a new system and used TAAF assistance to 
train the workforce in its use. The new ERP went live in January 2011, 
and the impact was immediate. Not only has it cut hardware costs and 
annual fees by 50 percent, it has also greatly reduced data input and 
handling time. The firm has been able to go virtually paperless, as 
documents are seamlessly handled and hardcopies are rarely required. 
Further, the new system is connected to its automotive forecasting 
service so that high-level sales forecasts are made automatically as 
customers release their model plans. Results of this ERP implementation 
have been truly transformative for the

[[Page 77243]]

firm, resulting in ``fabulous'' performance, according to the firm's 
CFO. As a result of this project and much hard work by the firm, it has 
been able to rehire many of the workers that were laid off in 2009. 
Though not yet fully recovered, the firm has now increased employment 
by 40 percent since entering the TAAF program. The firm currently 
employs about 90 workers and generates over $20 million in sales. The 
firm just started another worker training project via the program.
    An Ohio packaging firm was hit hard by rising import competition 
from China and other East Asian countries. Its customers were 
increasingly looking to cut costs by sourcing their packaging from 
abroad. This forced serious production cuts at the firm, which 
ultimately necessitated employee layoffs. The firm entered the TAAF 
program in early 2008. Its Adjustment Plan was approved in June of that 
year and included a wide range of needed improvements. The firm's first 
projects included a detailed evaluation and restructuring of its sales 
team, as well as the development of much needed marketing materials. 
Improvements to its costing and quoting system were next, followed by a 
revamping of its Web site. The firm's most recent TAAF project, 
completed in June 2012, was part of a major lean manufacturing 
initiative. Following classroom training financed in part by the State 
of Ohio, the TAAF program helped provide on-site employee training and 
hands-on coaching to jumpstart the firm's productivity improvement 
efforts. This ``last mile'' project--the customized on-site lean 
training--had a huge impact on the overall success of the effort. The 
firm has made great progress to date--sales have rebounded 
significantly (up 50 percent from their low), and productivity is much 
improved. However, considerable work remains to be done. The firm is 
about to begin a project that will dramatically strengthen its finance 
function. By the time this firm completes the program, it will be 
positioned to thrive, not just survive.

Mid-America Trade Adjustment Assistance Center (MamTAAC)

    A Missouri fabric-based products manufacturer has been receiving 
technical assistance funded by the TAAF program since December 2010. 
The first project included a comprehensive review of their pay scale 
compared with market salaries and wages. The intent of this project 
included addressing personnel issues and forming a strong cohesive team 
to bring the business out of the recession. The next project involved 
employee training in the use of their Computer Aided Design software, 
which supported high investment equipment that enabled them to keep 
work in-house and support additional employees to be added. A portion 
of the TAAF assistance enabled the firm to implement an International 
Organization for Standardization (ISO) compliant quality system and to 
subsequently become certified to ISO 9001:2008. The ISO certification 
has enabled the firm to increase sales to a major defense contractor by 
over 50 percent. This sales increase and business from new market 
segments have necessitated increasing employees by 15 percent. With the 
help of MamTAAC and TAAF-funded technical assistance, the firm has been 
able to build a manufacturing organization that can continue to 
effectively compete and grow.
    A Missouri wood products manufacturer has been enrolled in the 
program since 2004. In 2004, the firm had 16 employees and average 
revenue of $3 million and faced fierce competition with Chinese 
imports. TAAF funding allowed the firm to upgrade its management 
information systems, upgrade their ERP system, and purchase a 
production module to help with manufacturing data capture and tracking. 
Later, with technical assistance from MamTAAC, the firm leveraged TAAF 
program funds to provide human resources, employee, and executive 
training, which in addition to educating the firm's leadership on sound 
business practices, allowed the owner to take actual business problems 
that were especially related to growth to a group of business owner 
peers for feedback. Today the firm has 36 employees with 6 more slated 
to be added in 2012, and revenues are projected to be above $8 million. 
The firm expects that by 2015, revenue will increase to $14 million and 
employment to 60.

MidAtlantic Trade Adjustment Assistance Center (MATAAC)

    A Pennsylvania maker of pressure control devices for the fluid 
power and chemical industries was in its third year of declining sales, 
profits, and employment when awarded TAAF-funded technical assistance 
in 2008. Sales had fallen by 37 percent, profits had declined 67 
percent and 8 percent of the employees were laid off as a direct result 
of imports. The company implemented projects in strategic planning, 
lean manufacturing, marketing communications, and six sigma. Since 
program entry, sales have improved by more than 20 percent, jobs have 
grown by 12 percent, earnings have increased 42 percent, productivity 
has increased 7.5 percent, and return on human capital has grown 26.9 
percent. As a direct consequence of this success, a world leader in the 
American fluid power industry acquired the firm in October 2012.
    A Pennsylvania manufacturer of industrial wear products for the 
construction and material handling industries had suffered a 25 percent 
drop in sales, an 83 percent reduction in earnings, an 81 percent 
decline in productivity and 13 percent of its employees had been 
separated--all over a 24-month period. A flood of imports impacted 
virtually all of the company's products. Management recognized that its 
product line had been commoditized and that it could no longer compete 
on price alone. With projects addressing new product development, e-
commerce and systems technology, the firm began to add value through 
superior design, cost mastery, and marketing. The firm was awarded 
TAAF-funded technical assistance in 2011. Since program entry, sales 
have grown by more than 50 percent, earnings have improved five-fold, 
productivity has increased more than 12 percent, jobs have grown 36 
percent, and the return on the firm's human capital has more than 
tripled.

Midwest Trade Adjustment Assistance Center (MWTAAC)

    A Wisconsin manufacturer of custom solenoids was experiencing tough 
competition from Asian importers in the automotive, recreational 
vehicle, motorcycle, and industrial application markets. Several key 
customers moved their purchases to overseas providers with cheaper 
prices, resulting in a 21 percent decline in sales, forcing the firm to 
lay off workers. The firm was certified for TAAF in June 2010. The firm 
was able to enhance marketing tools with two projects in late 2010 that 
helped attract new domestic and international customers. In addition, 
the firm was able to cost-share export development assistance early in 
2012, including research and marketing material translation. As a 
result of assistance from MWTAAC and TAAF-funded technical assistance, 
the manufacturer's exports have grown dramatically and both sales and 
employment have increased over 90 percent in less than two years.
    A Minnesota manufacturer of commercial and residential air 
filtration systems received TAAF-funded technical assistance between 
2008 and 2011 for export-related quality certifications, testing and 
marketing material translation. In addition, TAAF program technical 
assistance provided

[[Page 77244]]

Management Information System (MIS) enhancement and training which has 
allowed the company to manage the expansion and control costs. In the 
most recent year, the manufacturer has identified $77,659 of new export 
sales directly attributable solely to TAAF assistance.

New England Trade Adjustment Assistance Center (NETAAC)

    A Connecticut metal finishing firm, the largest full-service metal 
finisher in the Northeast, experienced a significant decline in sales 
due to increased foreign competition and a shrinking domestic market. 
In 2010, the firm was certified for TAAF and with the assistance of 
NETAAC, prepared an AP to fund projects such as leadership training, a 
new Web site, upgraded marketing materials, establish lean 
manufacturing, and NADCAP, a critical certification that could 
potentially open many new markets for the firm. After merging with 
another local Connecticut firm, they are now able to service a much 
larger market providing full-service metal finishing services. As a 
result of TAAF-funded technical assistance, the firm has become 
stronger and more competitive, increasing sales by 20 percent and 
adding 20 more jobs.
    A Rhode Island full-service contract manufacturer serving a diverse 
group of customers including electronic manufacturers of medical 
instrumentation, military electronics, oceanographic instruments, and 
commercial products was adversely affected by a combination of growing 
foreign market competition and the global recession. In 2010, the firm 
was certified for TAAF and, with the assistance of NETAAC, prepared a 
business recovery plan (AP) to fund projects such as development of a 
strategic business plan, marketing and sales plan, MIS upgrades, and 
process improvement program. Within one year of TAAF-funded technical 
assistance, the firm has realized a 10 percent increase in employment 
and a 15 percent increase in sales. After successful realization of 
Lean Manufacturing and sales and marketing projects, the firm was able 
to capture new orders, increased the need for continuous improvement, 
and was able to lower cost of production by further streamlining their 
processes. The firm is now focusing on re-shoring efforts and committed 
to bringing jobs back to America.

New York State Trade Adjustment Assistance Center (NYSTAAC)

    A New York manufacturer of precision optical fabrication machines 
and systems was suffering from the adverse effects of foreign 
competition from Germany. The combination of the foreign competition, 
coupled with the recent downturn in the economy, significantly reduced 
the firm's sales revenues. The firm needed to react to the continual 
loss of market share to foreign competition and did not have a formal 
strategic-based sales and marketing plan in place nor did it have the 
internal expertise to develop one. In order to effectively recover from 
the adverse effects of foreign competition, the firm sought technical 
assistance from NYSTAAC. At the time of TAAF certification, the firm 
had 35 full-time employees and annual sales of approximately $6 
million. In order to stop the decline in sales and employment levels, 
the firm with assistance from NYSTAAC and TAAF-funded technical 
assistance, developed a business recovery plan (AP) that included a 
formal sales and marketing plan. In following the plan, the firm was 
able to achieve 85 percent growth in sales revenue to an annual rate of 
$12 million. This in turn has resulted in the firm adding 17 new 
employees since the implementation of the plan. An additional major 
outcome of the planning process was the recent expansion of the firm's 
manufacturing facility to accommodate new business.
    A New York manufacturer of clipboards sought technical assistance 
from NYSTAAC to develop a business recovery plan (AP) to address 
inefficiencies with an outdated Management Information System (MIS) and 
production software, which when improved, would reduce deficits and 
increase productivity, resulting in higher output and increased sales. 
Since the firm was certified for TAAF in 2008, their sales have 
increased approximately $3.4 million and they have been able to 
maintain the same employment level.

Northwest Trade Adjustment Assistance Center (NWTAAC)

    A Montana manufacturer of high performance laser diode and fiber 
optic control, test and measurement products used in research 
laboratories, telecommunication, and photonic production facilities 
received TAAF certification in 2005 based on a 74 percent increase in 
imports of these devices from China and Japan. Implementation of TAAF-
funded projects such as extensive CE product testing, lean 
manufacturing and training, and sales market analysis and development 
over a 5 year period have resulted in firm product expansion into 
European markets, and increased penetration into China, Japan, and 
Korea. As a result of NWTAAC assistance and TAAF-funded technical 
assistance, as of the end of 2011, employment has stabilized and sales 
have increased 48 percent since certification, with export sales now 
comprising 50 percent of total sales, a 22 percent increase since 
entering the program.
    An Idaho light duty manufacturer of sheet metal and plastic 
ventilation and roofing components was certified for TAAF in 2010 based 
on a 20 percent decline in sales resulting from increased imports from 
China, Canada, and Mexico. TAAF-funded technical assistance projects 
thus far have included Web site redesign and a two[hyphen]phased search 
engine optimization project. As a result of these projects the firm has 
gone from zero exports and internet orders to over 300 new orders per 
month to customers all over the U.S. and Canada with about 75 percent 
of the orders coming from repeat customers. This increase in sales of 
$400,000 from two years ago provides better profit margins with 10-to-
15 percent of the sales going to Canada. The firm has also increased 
employment by about 2.5 full time employees and is about to add another 
just for parcel packaging for the internet orders. As an added benefit, 
this new nationwide customer base gives this firm a better idea of what 
people want, and these sales are much more profitable than their 
wholesale business.

Rocky Mountain Trade Adjustment Assistance Center (RMTAAC)

    Faced with intense foreign competition and an increasingly 
competitive market, a Utah manufacturer of plastic folding tables and 
chairs contacted RMTAAC in 2010 for assistance to improve the firm's 
competitive position. RMTAAC conducted a thorough business assessment 
and competitive analysis to identify strategic areas for improvement to 
build a more solid foundation for future growth. The firm was awarded 
technical assistance through the TAAF program to target cost reductions 
in its manufacturing processes. The firm has been able to utilize TAAF-
funded technical assistance to shift its efforts to a firm-wide lean 
manufacturing initiative. The firm implemented lean manufacturing to 
reduce wasteful or non-value added activities in the manufacturing 
process. The firm has seen a 25 percent reduction in inventory carrying 
costs since applying lean manufacturing principles. In addition, the 
firm's sales are up 27 percent since

[[Page 77245]]

entering the TAAF program two years ago.
    A South Dakota manufacturer of industrial cleaning machinery had 
noted increased competition from foreign countries. Over the last 
decade, consolidation has been a significant trend in the industrial 
machinery industry. As larger multi-national conglomerates have gained 
scale in their operations through acquisitions, the competitive 
challenges continue to mount for smaller manufacturers in the industry. 
The firm contacted RMTAAC in 2010 for assistance with TAAF 
certification. Upon certification, RMTAAC worked with the firm to 
develop a customized business recovery plan (AP) focused on 
implementing strategic improvements to strengthen the firm's 
competitiveness in the global marketplace. Between July 2011 and 
December 2011, the firm developed a customized sales and marketing 
program. To date, the firm's sales have increased 18.8 percent from the 
previous year, and the quote-to-order conversion rate has increased 7 
percent. As a result of TAAF-funded technical assistance, the firm's 
sales are at a 72-year high.

Southeastern Trade Adjustment Assistance Center (SETAAC)

    After losing sales to a major customer in 2000, a Georgia 
manufacturing firm ended an era of selling a complete textile machine 
to a U.S. customer. The impact of low-cost textile imports from China 
and Mexico was devastating the firm's domestic customers. In 2006, as 
sales and employment continued to decline, the firm turned to the TAAF 
program for help. The SETAAC team developed a customized business 
recovery plan (AP) which focused on planning and implementing strategic 
improvements to strengthen the firm's competitiveness in the global 
marketplace. With TAAF-funded technical assistance, the firm received 
certification from the Historically Underutilized Business Zone 
(HUBZone) program, which helps small businesses in urban and rural 
communities gain access to Federal procurement opportunities. The firm 
also redesigned its Web site and other marketing materials in order to 
appeal to a broader client base. The work paid off, as the firm now 
provides an ammunition testing system for the Air Force. As a result of 
TAAF-funded technical assistance, the firm has increased employment by 
37 percent and revenue by 10 percent. At the end of the first quarter 
of 2012, the firm was on track for a 25 percent increase in revenue 
over 2011.
    Based in South Carolina, a producer of screens for rotary screen 
textile printing experienced a 22 percent loss in sales from 2008 to 
2009 as a result of Chinese competitors. To address the issue of 
foreign competition, the firm applied for and was certified for TAAF in 
2009. The SETAAC team outlined key projects to help the firm increase 
its competitive edge. With consultants from the South Carolina 
Manufacturing Extension Partnership (SCMEP), the firm was able to 
transition from textile-based screen engraving to digital printing of 
designs directly to fabric by using a new brand. Projects performed by 
the SCMEP included Web site redesign, organic search engine 
optimization, lead generation and pay-per-click advertising. This 
outreach lead the firm to an opportunity with a large promotional and 
graphic communications firm with over 750 member locations in the U.S. 
and Canada. Since the initiation of this project, annual sales have 
steadily increased by over $220,000. May 2012 saw a 50 percent sales 
increase, and June 2012 as the highest sales month in four years. In 
addition to increasing sales, the firm has also added three additional 
employees.

Southwest Trade Adjustment Assistance Center (SWTAAC)

    A Texas manufacturer of uniforms, industrial safety, and 
rehabilitation equipment was certified for TAAF in 2008. The firm had 
experienced a 21 percent decline in sales and 31 percent decline in 
employment since the previous year. The foreign impact was traced to 
imports from China, Bangladesh, Indonesia, Mexico and the Caribbean 
basin countries. The firm received EDA approval of an AP focusing on 
technical assistance in the areas of strategic marketing, Enterprise 
Resource Planning (ERP) implementation, and lean manufacturing 
techniques. To date, the firm has worked on four marketing projects, 
which included photography of their products, a complete redesign of 
their marketing materials such as catalogs, brochures, and press 
packages, along with product imaging improvements and a branding 
strategy. Management information systems projects integrated the firm's 
MAS 200 SAGE accounting software to interface with their Web site 
projects to streamline and improve the functionality of accounting, 
inventory control, on-line customer ordering accessible year round (24 
hours a day) with the capability to track orders by oilrig number/
employee, and create automated customized reports. The firm has 
completed 99 percent of their projects and seen a dramatic increase in 
sales. They recorded sales of $20.9 million in 2011 and an employment 
of 30, an increase of 345 percent and 25 percent respectively since the 
date of certification.
    A Louisiana manufacturer of Creole pralines and a variety of other 
pecan-based confections was adversely impacted by imports from Canada, 
Mexico, and Thailand. The firm was certified for TAAF in May 2009. At 
the time of certification, annualized sales were approximately $2.7 
million, down from $3.3 million the previous year. The firm AP project 
plans included a support system upgrade required to make significant 
Management Information System (MIS) upgrades. Although they had an MIS 
system, it did not have the capacity to allow the firm to manage their 
increasingly diversifying business. Although implementation of the 
projects outlined in their business recovery plan is ongoing, the firm 
has fared better than many other firms that are recovering from the 
aftermath of not only Hurricane Katrina, but also the generalized 
impact of the recession during this period. Annual sales two years from 
the date of certification grew to $3.6 million--an annualized growth 
rate of roughly 15 percent.

Western Trade Adjustment Assistance Center (WTAAC)

    A California custom packaging manufacturer serving customers in the 
medical, food, and electronics industries suffered injury from import 
competition from Asia from 2004 through 2006. Its customers increased 
the purchase of packaging solutions made in the Pacific Rim. A severe 
downturn in the static packaging industry resulted in the Pacific Rim 
producing the bulk share of electronic components. The firm was 
certified for TAAF in December of 2006. WTAAC and the firm's management 
developed a strategy to change the way the customers think about 
flexible barrier packaging and to provide new ideas to industry to use 
this packaging. Specifically, the goal was to develop innovative ways 
of using barrier packaging to enter the advertising niche, a market 
segment that has not previously used flexible packaging. The firm 
completed the implementation phase of the TAAF program in January 2010. 
While active in the program, the firm implemented its marketing project 
and two information technology projects. Since TAAF certification, 
sales increased 34 percent, employment increased 28 percent, 
profitability

[[Page 77246]]

increased 68 percent, and productivity increased 4 percent.
    A second-generation California bonding wedge manufacturer, 
specializing in the design and manufacture of bonding wedges for the 
microelectronics industry was suffering from continued shrinking market 
share due to increasing competition from low price Pacific Rim 
manufacturers from 2000 to 2002. As a result, 2002 annual sales 
decreased 44 percent and employment decreased 34 percent. The firm was 
certified for TAAF in October of 2002. WTAAC and the firm's management 
developed a strategy for the firm to specialize in the manufacture of 
high quality bonding wedges for the microelectronic industry while 
expanding its brand sales and diversifying its customer base. The firm 
successfully completed the implementation phase of the TAAF program in 
February 2009. While active in the program, the firm implemented two 
quality management system projects, three production engineering 
projects, four marketing and promotion projects, and one information 
technology project. These projects focused on significantly expanding 
international sales while improving manufacturing efficiency, reducing 
production cost and shortening cycle times. Since TAAF certification, 
the firm regained profitability, with sales increasing 45 percent, and 
productivity improving 45 percent.

     Dated: December 21, 2012.
Miriam Kearse,
Eligibility Examiner.
[FR Doc. 2012-31377 Filed 12-28-12; 8:45 am]
BILLING CODE 3510-WH-P