Secretary's Speech

Secretary of Commerce Carlos M. Gutierrez
Associated General Contractors of America
San Antonio, Texas

Thank you, Harry, for that kind introduction. And thank you for inviting me to speak today. Lately, I’ve been spending a lot of time on the road and on the phone talking to businesses about what’s going on in their companies, in their industries, and in the economy.

I see this as a chance to talk with 2,000 people, in person, from virtually every state. This could cut down on my travel time, and also make my wife very happy!

I’d like to focus on our economy, workers’ rights, and immigration. These are the big economic issues we’re facing. What we do about them, and the actions we take in the coming months, are of great consequence to the nation, to your businesses and to the American people.

Let me start by giving you some facts about the strength of our economy:

• 97,000 new jobs were created in February.
• That’s more than 7.5 million since August 2003.
• Unemployment is at a low 4.5 percent.
• 21 straight quarters of economic growth.
• Growth in 2006 (3.3 percent) was above the previous 15-year average.

Your industry was a major contributor to the jobs recovery after the 2001 recession, and it continues to be a leader in the economy, despite the recent housing slowdown.

• Construction now accounts for 5 percent of the U.S. economy (GDP), up from 4 percent 10 years ago.
• Employment construction jumped nearly 40 percent over the past 10 years.
• Non-residential construction remains very strong, up 15 percent in January from a year ago.

Our job in Washington is to develop sensible policies that encourage growth and create jobs. High on this list is tax relief. Tax cuts led us out of recession post 9/11. It’s time for Congress to make tax relief permanent as the President wants.

Another priority is prying open new markets overseas. One of the big reasons our economy is doing well is because we’re competing and winning in the global economy.

• In 2006, U.S. exports reached an all time high of over $1.4 trillion dollars. Exports grew by 13 percent.
• And, for the first time in nearly a decade, exports out-grew our imports. (Imports grew by 11 percent.) So clearly we are creating an export culture.
• Texas is our biggest exporting state: 2006 exports rose 17 percent to over $150 billion.

Another issue is the effort to do away with secret balloting when workers vote to form a labor union.

The House already passed the so-called “card-check” legislation. We believe this bill short-circuits worker rights. Secret balloting is a right workers have had for 50 years. If the bill is sent to the President, he will veto it.

Let me now turn to immigration reform, which I believe is the most important domestic social issue of our time.

Immigration reform has been on President Bush’s agenda since the day he took office. As a former Texas governor, he knows about immigration. Border states like Texas have been dealing with it for a long time.

But because we now have a labor shortage that is affecting industry-after-industry … especially yours … state-after-state … the entire country is feeling the impact I’ve been traveling across the country, talking with business and community leaders, and for many, immigration is their biggest problem.

Comprehensive immigration reform is no longer a question of if, but when. The mood in Congress and across the country has shifted. People want action at the national level. And they want it sooner, not later.

Secretary Chertoff and I are working closely with Congress to pass immigration reform this year. And like President Bush, we are optimistic about the chances for reform this year. The American people want this problem fixed. They want practical, workable solutions.

In the past few weeks we have had almost daily meetings. I can tell you that we are starting to get past the emotion and down to logic. There is a sense of pragmatism among the lawmakers I have met with.

The debate is in a different place than it was a year ago. We are truly gaining momentum.We believe there are essentially three parts to fixing immigration: national security, economic growth and American unity.

First, we must focus on national security. We must secure our borders and implement a system to tell us who enters our country, and who is already here.

The good news is that Congress and the American people see that our enforcement efforts are serious, and that they are working.

We’ve heard that the prices “coyotes” charge to smuggle people across the board have skyrocketed. That’s a very clear sign that border security is working.

In recent months we have:

• Ended the policy of “catch and release” of illegals at the border.
• Stepped up worksite enforcement. Arrests are up seven-fold since 2002.
• And we’re doubling the number of border patrol agents to 18,300 by 2009.

Our next step will be a tamper-proof biometric identity card.This is a reality. It will happen. It will give employers, like you, the confidence to know who you are hiring.

It will be a disincentive for people to come across that can’t get one, or don’t have one. We don’t want people risking their lives to come to this country. Without this card, they won’t be able to get a job in the U.S.

Second, immigration is crucial for our economy to grow in the years ahead. Today, immigrants make up 15 percent of our labor force. And they account for nearly half the growth in the labor force (since 1996).

In your industry:

• Overall, 25 percent of construction jobs are filled by immigrants.
• Last year, two out of every three new construction workers were Hispanics. The vast majority of them were foreign-born.

The reality is that there are thousands of jobs that aren’t getting filled because we don’t have enough workers. We’re facing a dramatic labor shortage. Without immigrants, we don’t have enough workers. Period!

And the problem is getting worse. The demographic trends are against us:

• The number of people in the prime working years (ages 25-54) is expected to increase by a mere 0.3% in the next seven years.
• By 2010, 77 million baby boomers will begin to retire. Some are retiring already.
• By 2030, one in every five Americans will likely be a senior citizen.

These are stunning trends. They spell dire consequences for the economy in the years ahead, unless we take action.I’m confident that we will.

Many advanced economies face declining populations and struggle to assimilate immigrants. Immigration can be our competitive advantage. We’re a nation of immigrants. We have a history of making immigration work. We know how to do it.

Immigration can be a strength. If we make the tough decisions … if we get this issue right … if we can fix it … it will give us a major advantage in today’s global economy for the next 20, 30, 40 years or more.

Immigration is not something to be tolerated. Immigration is one of our greatest opportunities if we approach it with judgment and wisdom.

What we need is a legal immigration system that can adjust to the changing demands of our economy. It must take into account the labor shortage, the need for seasonal workers … all the ebbs and flows of a large free-market economy.

The third goal of comprehensive immigration reform is American unity. This means it must have bi-partisan support in the Congress.

We are a society governed by the rule of law. We shouldn’t reward unlawful behavior. But the mass deportation of 12 million people is not a solution. Neither is amnesty. I am convinced we can strike this balance.

We need a solution that brings workers out of the shadows and into the mainstream. We need a solution that is both viable and workable.

It’s time to get beyond one-liners. It’s time for Democrats and Republicans to roll up our sleeves to get this done. There are hard issues to be faced. Everyone will have to compromise to get to a solution.

The American people will not tolerate a one-sided bill. They want us to find common ground. They want us to do what’s good, and what’s right, for our nation.

In closing, let me just say that these issues … immigration reform, workers' rights, tax relief, trade … are as important to the government as they are to you.

So continue to be vocal about your concerns. The Associated General Contractors have a proud 90-year history of working closely with government on many, many issues. Be vocal about the policies that are working … and how we can continue to have a pragmatic, practical approach.

That’s why I’m proud to be here, to speak with you, and to hear your views. Thank you.