FEDERAL MANUFACTURING AGENDA
State of the Union TO DO List
ACTION #1: Recognize the manufacturing jobs crisis and the challenges facing manufacturing.
The United States has lost 2.8 million manufacturing jobs since 2001, with no improvement in sight. Manufacturing-dependent states are disproportionately likely to have high unemployment rates, with manufacturing states reporting seven of the ten highest unemployment rates in the country. In part because of manufacturing sector weakness, real wages for the average worker fell by 1.3 percent last year. The Bush Administration has ignored repeated pleas for a manufacturing action plan. The President should admit to the continuing problem and begin to address it.
ACTION #2: Eliminate illegal trading practices and other barriers to ensure that U.S. manufacturers have a fair opportunity to sell their products abroad.
Our overall trade deficit continues to worsen despite falling global tariffs, as non-tariff barriers like currency manipulation, customs requirements, technical standards, and discriminatory taxes keep our products from entering overseas markets. The Administration has responded to these practices weakly rather than specific action aimed at tearing down these impediments. The President should stand up for U.S. manufacturing interests overseas by challenging unfair trading practices at World Trade Organization and other bilateral trading forums, and should endorse legislation calling for a chief trade prosecutor whose sole focus is enforcing U.S. rights under free trade agreements.
ACTION #3: Ensure that U.S. manufacturers have a level playing field when they sell goods here at home.
For many manufacturers, U.S. trade laws provide the first line of defense when foreign competitors flood the U.S. market unfairly with their products injuring domestic manufacturers. The Administration has opposed many of our efforts to prevent illegal dumping and subsidizing practices. The President should be proactive in both using and strengthening our trade laws, including finally using special safeguards in the China agreement which were intended to prevent China from flooding the U.S. market. The Administration must also prevent attempts to weaken U.S. law at the World Trade Organization. The Administration should appeal WTO decisions overturning U.S. trade laws in all cases of judicial overreaching and switch to an aggressive offense to strengthen U.S. laws during multilateral negotiations.
ACTION #4: Stand up for American workers when negotiating trade agreements.
U.S. trade agreements should be designed to level up, and not down. The Administration has refused to include meaningful and enforceable basic labor standards in the text of U.S. trade agreements. For U.S. manufacturers, the benefits of this action are two-fold -- basic labor provisions will (1) ensure that they are not competing with workers whose rights are suppressed and (2) lead to the creation of strong middle classes and consumers in overseas markets that can afford to buy U.S. products.
ACTION #5: Help small manufacturers compete globally by giving them access to technologies and processes that improve their productivity and their products.
Last year, the Manufacturing Extension Partnership (MEP) served 16,448 small businesses nationwide. In Michigan alone, MEP helped create or retain almost 2,000 jobs and almost $190 million in sales, yet President Bush proposed cutting funding for this program. The President should rescind his proposed cuts and support expansion of this effective program.
ACTION #6: Address health care costs that put U.S. manufacturers at a competitive disadvantage in the global marketplace.
U.S. manufacturing companies have a long history of providing high-quality health coverage for their workers and their families, resulting in a healthier and more productive workforce. But differences in national health and retirement systems mean that many of their global competitors enjoy the workforce benefits without the costs, putting U.S. companies at a serious disadvantage. The Bush Administration's only answer to rising health care costs has been to propose shifting more of the burden to employees. The President should take action to reduce the cost of health insurance and make the market more efficient by taking federal responsibility for catastrophic health costs.
ACTION #7: Take real action to address soaring energy costs that are squeezing U.S. manufacturers and consumers.
The sustained high level of oil and sharply increased gas prices have driven up energy and raw material costs for manufacturers and reduced consumers' ability to buy from them. Rather than continuing their policy of awarding billions of dollars in tax breaks to profit-rich oil and gas companies, the President should take direct action to lower prices. That action would include punishing price-gouging oil companies, reducing energy waste by promulgating new efficiency standards for furnaces, and investing in clean and sustainable fuel alternatives like wind, solar, and hydrogen power.
ACTION #8: Invest in research to develop the products of the future and leverage that new technology to enhance the competitiveness of American manufacturers.
Manufacturing companies are the largest user of the federal Research & Development Tax Credit, which provides a proven incentive for new U.S. investment. The Advanced Technology Program (ATP) invests in cutting edge basic research that has helped create manufacturing opportunities in areas like low-cost digital mammography, to name just one success story. The President should endorse permanent extension of the expanded R&D tax credit, and support preserving and expanding the ATP.
ACTION #9: Prepare young people for the manufacturing jobs of the future.
The Bush Administration's policy has allowed the U.S. to fall behind in math, science, and engineering, three areas critical to continuing product development in the manufacturing sector. Two-thirds of the jobs created in the next decade will require post-secondary education and training, yet the administration recently helped orchestrate close to $12 billion in cuts to student aid. In its last budget, the Administration continued its lack of commitment to worker skills by proposing over $412 million in cuts to job training programs. The President should reverse his support for cuts in skills development and instead work to make education and training more affordable and available, preparing workers to take U.S. manufacturing to the next level.
The picture above is of Rep. Sander Levin speaking with students abou t legislative issues and their future plans.
