MANUFACTURING UPDATE

- MAY 2014 -

A copy of this update is available on Senator Coons website.

1. LATEST POLICY
==================================
Passed by Congress -- Buy America provisions in WRRDA
Congress recently passed the Water Resources Reform and Development Act (WRRDA). The bill
includes provisions introduced by Sens. Brown (D-OH) and Merkley (D-OR) that ensure
American-made iron and steel are used in federally-funded water infrastructure projects when
available and competitively priced.

For our economy to continue adding jobs, we must ensure American taxpayer dollars are used
to support manufacturers and workers at home, not overseas, Brown said. I thank my
colleagues for passing legislation that will strengthen our economy and infrastructure while
benefitting Ohio manufacturers.

If we dont make things in America, we wont have a middle class in America, Merkley said.
Todays news is a huge victory for the principle that American tax dollars should support
American jobs.
More: Brown press release

Secretary Pritzker announces first 12 Manufacturing Communities
Commerce Secretary Pritzker announced the first 12 communities that will be designated
Manufacturing Communities as part of the Investing in Manufacturing Communities Partnership
(IMCP) Initiative. The program is designed to accelerate the resurgence of manufacturing in
communities by supporting the development of long-term economic development strategies.

The 12 communities were selected from 70 that applied based on the strength of their
economic development plans, the potential for impact in their communities, and the depths of
their partnerships across the public and private sector.

The Manufacturing Communities will receive coordinated support for their strategies from
eleven federal agencies with $1.3 billion available in federal economic development assistance.
The communities will also receive a dedicated federal liaison at each agency to help them
navigate available federal resources.

The 12 Manufacturing Communities announced today represent a diverse group of
communities with the most comprehensive economic development plans to attract business
investment that will increase their competitiveness, said U.S. Secretary of Commerce Penny
Pritzker.

The first 12 Manufacturing Communities include:
Southwest Alabama, led by the University of South Alabama
Southern California, led by the University of Southern California Center for Economic
Development
Northwest Georgia, led by the Northwest Georgia Regional Commission
The Chicago metro region, led by the Cook County Bureau of Economic Development
South Kansas, led by Wichita State University
Greater Portland region in Maine, led by the Great Portland Council of Governments
Southeastern Michigan, led by the Wayne County Economic Development Growth
Engine
The New York Finger Lakes Region, led by the City of Rochester
Southwestern Ohio Aerospace Region, led by the City of Cincinnati
The Tennessee Valley, led by the University of Tennessee
The Washington Puget Sound region, led by the Puget Sound Regional Council
The Milwaukee 7 Region, led by the Redevelopment Authority of the City of Milwaukee
More: Commerce press release | White House fact sheet

Introduced -- Defend Trade Secrets Act
Senators Hatch (R-UT) and Coons (D-DE) introduced the Defend Trade Secrets Act to help
combat the loss of an estimated $160 billion to $480 billion each year in the United States to the
theft of corporate trade secrets. The bill empowers manufacturers and other companies to
protect their trade secrets in federal court by creating a federal private right-of-action.

The intellectual property that drives the U.S. economy has never been more valuable, or more
vulnerable, Senator Coons said. American companies are losing jobs because of the theft of
trade secrets every day. This bipartisan bill will empower American companies to protect their
jobs by legally confronting those who steal their trade secrets. It will finally give trade secrets
the same legal protections that other forms of critical intellectual property already enjoy.

American companies utilizing technology to grow and create more jobs increasingly face
threats to the trade secrets that help drive their success, Senator Hatch said. The legislation
were introducing today takes a big step towards confronting bad actors seeking to steal
intellectual property, and provides victims of trade secret theft with the legal protections they
need.
More: Hatch press release | Coons press release

Hearing -- Judiciary hearing on trade secrets
Manufacturing leaders testified before the Senate Judiciary Subcommittee on Crime and
Terrorism on the need for urgent action to combat trade secret theft and protect American
manufacturing jobs. The witnesses urged Congress to pass the Defend Trade Secrets Act, which
empowers companies to defend their trade secrets in federal court and recover stolen
intellectual property before it is sold to competitors.

Pursuing trade theft cases in state courts results in a whole lot more expense, said Doug
Norman, Vice President and General Patent Counsel for Eli Lilly, as well as a whole lot more
risk, because we may not be able to isolate and seize the stolen materials as quickly.

Stopping criminals from getting on a plane with our trade secrets and, thereby, preventing
their disclosure, is indeed our highest priority, said Peter Hoffman, Vice President of
Intellectual Property Management at the Boeing Company, in testimony before the
subcommittee. And in those worst cases, where the secret is disclosed to a competitor and a
company is seriously harmed, companies should be empowered to seek damages, so long as
appropriate safeguards are in place to prevent abuse.
More: Coons press release


2. OTHER NEWS
==================================
News -- Landrieu urges BASF to build plant in Louisiana
Sen. Landrieu (D-LA) wrote to BASF urging the company to locate its new propylene facility in
Louisiana, where it would create thousands of high-paying jobs and fuel the revival of
manufacturing.

Louisiana is at the center of a global manufacturing renaissance and a natural gas boom, made
possible by extraordinary and swift advances in technology to locate, capture and produce
natural gas, Sen. Landrieu said. The proximity to cheap energy and raw materials for
production are two of the greatest needs in this strategic investment decision and, as potentially
the single largest investment in BASFs history, Im confident Louisiana offers the ideal
combination of resources that distinguish it as the best choice for your future operations.
More: Landrieu press release

News -- Baldwin testifies before International Trade Commission on
behalf of Wisconsin manufacturers
Sen. Baldwin (D-WI) testified before the International Trade Commission (ITC) on behalf of a
Wisconsin manufacturer, Felker Brothers of Marshfield. Sen. Baldwin appeared to highlight the
importance of the stainless pipe industry. The manufacturer is a petitioner in an antidumping
investigation on imports of welded stainless pressure pipe from Malaysia, Thailand and Vietnam.
At the ITC hearing, Baldwin focused on the challenges that Felker and the industry have faced
from unfairly traded imports.

Sen. Baldwin stated In Wisconsin, we have one of the largest manufacturing sectors in the
nation, supporting a large share of our workforce and exporting goods all over America and the
world. [W]hen the rules are fair and there is a level playing field, Felker can compete with any
company in the world. And that is what brings me before the Commission today. Because when
countries are allowed to cheat and sell their products below fair market value - Felker, its
workers, and its customers lose out.
More: Baldwin press release

News -- Brown calls on administration to protect steel manufacturers
Sen. Brown joined Northeast Ohio workers at a rally to call on the Obama Administration to
protect Ohio steel manufacturers and the jobs they support. Outside of the U. S. Steel facility in
Lorain, Brown and local steelworkers urged the Commerce Department (DOC) to crack down on
countries that unfairly dump their steel in the U.S. market, threatening American jobs and
competitiveness.

A recent report from the Economic Policy Institute (EPI), supported by Sen. Brown, finds that a
surge in imports is putting half a million U.S. manufacturing jobs at risk.
More: Brown press release | EPI report

News -- Schumer, Gillibrand announce manufacturing grants to University
of Rochester and SEMATECH Albany
Sens. Gillibrand (D-NY) and Schumer (D-NY) announced grants for the University of Rochesters
New York Photonics Manufacturing Initiative and SEMATECH Albany from the Department of
Commerces National Institute of Standards and Technology (NIST).

The grants will strengthen the nations optics, photonics and imaging manufacturers, and
support SEMATECHs Semiconductor Supply Chain Roadmapping initiative, respectively.
More: Gillibrand University of Rochester release | Gillibrand SEMATECH release

News -- Harkin announces economic development funding for Iowa
Sen. Harkin (D-IA) announced that three Iowa regions were awarded grants through the
Department of Commerces Economic Development Administration to help establish
comprehensive economic development strategies in their region.

Establishing a sound economic development strategy that unites the public and private sectors
is the key to creating job opportunities and promoting regional growth, said Harkin. This
investment by the EDA will help these communities chart a long-term strategy to create jobs
and become more prosperous. I congratulate each community on this award.
More: Harkin press release

News -- Shaheen opens Southern New Hampshire Regional Economic
Development Center
Sen. Shaheen (D-NH) joined members of the New Hampshire congressional delegation in
opening the Southern New Hampshire Regional Economic Development Center, which will help
support small manufacturers with counseling, pre-loan packaging, assistance in finding a
location, alternative financing, and employee training. Sen. Shaheen supported REDCs grant
application to the Economic Development Administration, and in April of 2012 announced
REDCs selection for a $432,000 grant which made the new center possible.

Southern New Hampshires new Regional Economic Development Center will be a great
resource for small businesses in the region, Shaheen said. Small businesses are the backbone
of New Hampshires economy and REDC will provide important tools to help them grow and
create jobs.
More: Shaheen press release

News -- Cardin tours Maryland manufacturers
Sen. Cardin (D-MD) launched a Made in Maryland Job Tour, touring a number of Maryland
manufacturers. Among the manufacturers he toured was HunterDouglas, where 860 employees
manufacture high end, custom window fashions.

Sen Cardin said: I wanted to visit HunterDouglas to learn what Washington could do to help not
only make local manufacturing survive, but thrive. HunterDouglas is one of the star companies
that are investing in our local communities and adding to the regional economic growth in
Western Maryland, and across the entire state. HunterDouglas provides good jobs and quality
products; it is our job in Congress to help expand Americans access to both.
More: Cardin press release

News -- Coons tours local manufacturer
Sen. Coons (D-DE) visited WhiteOptics, a manufacturer of raw materials for LED lighting. While
there, the Senator took the opportunity to address questions on how protecting trade secrets
can help encourage innovation.
More: Coons blog post

News -- President Obama meets with manufacturing leaders
The President met with manufacturing leaders to announce a forum to attract more American
and foreign companies to create jobs in the U.S.

We have made enormous strides over the last several years not just recovering from a Great
Recession, but taking advantage of and now marketing the advantages of doing business in the
United States whether its low energy costs, an incredibly productive workforce, the
President said. Obviously, we have the most dynamic and creative and innovative economy in
the world, but we dont always do what it takes to go after business around the world and make
sure that they know the benefits of investing in the largest market on Earth. And we want to be
more systematic about it. We want to make sure that the federal government is working in sync
with state and local governments when it comes to locating businesses here in the United
States.
More: Detroit news

News -- NIST announces award to MTConnect to promote advanced
manufacturing
NIST recently announced an award for MTConnect, an open, royalty-free standard intended to
foster greater interoperability between manufacturing devices and software applications.

"This is the promised land," says Doug Woods, president of the Association for Manufacturing
Technology (AMT) and a champion of MTConnect. "At the end of the day, after you've invested
in hardware and machines, at some point it all comes down to how do you wring the maximum
amount of productivity out of them? How do you get the ultimate efficiency out of the facility?"
More: IndustryWeek | NIST announcement

News -- Production of new Ford Transit Van launched at new Kansas City
plant
Ford recently launched production of the new Ford Transit Van at its Kansas City Assembly Plant.
With 2,000 new jobs at the plant supported by a $1.1 billion investment, Ford is now more than
75 percent toward its goal of creating 12,000 jobs in the United States by 2015. In addition to
the Transit Van, the Kansas City Assembly Plant produces the Ford F-150, and employs 4,878
workers on three crews.

The good news keeps rolling in for the dedicated, hard-working men and women of UAW Local
249, said Jimmy Settles, UAW vice president, National Ford Department. The addition of
Transit to the Kansas City Assembly Plant line is a testament to the great work our members
here and across the nation are doing every day.
More: Ford

Report -- The all-of-the-above energy strategy as a path to sustainable
economic growth
The White House recently issued a report detailing how an all-of-the-above energy strategy can
help fuel economic growth. Energy prices are of particular importance to manufacturers, and
have helped fuel the U.S. manufacturing renaissance in recent years.
More: White House
News -- Commerce Department honors manufacturers for export success
Commerce Secretary Pritzker honored 65 U.S. exporters at the 2014 Presidents E Awards.
The 52
nd
anniversary of the awards, the E Awards are the highest recognition any U.S. entity
can receive for significant contributions to increasing American exports.

Congratulations to the E award recipients these are fantastic American businesses and
organizations that have played a crucial role in strengthening and growing our economy through
increased U.S. exports, said Secretary Pritzker. By selling Made-in-America goods and services
internationally, U.S. business can grow faster, hire more employees, pay higher wages, and help
spread American ideas, innovation and values. Last year, exports supported 11.3 million jobs,
with U.S. goods and services exports reaching a record $2.3 trillion. Through our new NEI/NEXT
initiative, we will help even more businesses of all sizes sell their goods and services to the 95
percent of customers that live outside the United States.
More: Commerce Department


2. SECTOR DATA
==================================
Purchasing Managers Index (PMI)
April PMI was 54.9, an increase of 1.2 from the March reading.

The PMI is a widely watched measure of aggregate manufacturing strength. PMI is based on a
survey that asks purchasing managers if Inventories, Supplier Deliveries, Employment,
Production, and New Orders have gone up or down that month. Results above 50 indicate
growth.

For April, Inventories read 53.0 (+0.5 on March), Supplier Deliveries read 55.9 (+1.9),
Employment read 54.7 (+3.6), Production read 55.7 (-0.2), and New orders read 55.1
(unchanged). This data is in chart form below. May figures will be released on June 2, 2014.
55.1
55.7
54.7
55.9
53.0
54.9
New orders
Production
Employment
Supplier
deliveries
Inventories
PMI
Change on
prior month
+1.2
+0.5
+1.9
+3.6
-0.2
0.0

More: ISM

Employment
Preliminary estimates by the Bureau of Labor Statistics show that manufacturing employment
rose by 12 thousand employees in April, to a seasonally adjusted 12.1 million.

The below chart shows the total number of manufacturing employees over the last ten years in
millions of workers, as well as the month-on-month change in manufacturing employment over
the last six months in thousands. Both numbers are seasonally adjusted.

11
12
13
14
15
'04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14
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+35
+7 +8
+20
+7
+12
Nov Dec Jan Feb Mar Apr
Month-on-month change, thousands

More: BLS

Fed Data
The Fed publishes monthly data on industrial production and capacity utilization. Industrial
production is represented as an index where the 2007 level equals 100. Capacity utilization is
shown as percent of capacity.
98.6
76.4
74
75
76
77
78
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Nov Dec Jan Feb Mar Apr
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Manufacturing production Manufacturing capacity utilization


In addition to the Feds national data, six of the twelve Federal Reserve regional branches
publish monthly updates on manufacturing conditions in their region. Because each branch
uses different questions and methodology, interregional comparisons are not suggested.
More: Fed

New York Fed (NY state, 12 northern NJ counties, and Fairfield County in CT)
[B]usiness conditions improved significantly for New York manufacturers. The headline general
business conditions index jumped eighteen points to 19.0, its highest level in nearly four years.
More: NY Fed

Philadelphia Fed (eastern PA, southern NJ, and DE)
[R]egional manufacturing activity expanded this month The diffusion index of current general
activity decreased slightly from a reading of 16.6 in April to 15.4 this month. The index has
remained positive for three consecutive months.
More: Philly Fed

Richmond Fed (DC, MD, NC, SC, Virginia & most of WV)
Fifth District manufacturing activity increased at a steady pace of growth. The
composite index for manufacturing held steady at a reading of 7 during the past two months.
More: Richmond Fed

Chicago Fed (southern WI, IA, northern IL, northern IN, and southern MI)
The Chicago Fed Midwest Manufacturing Index is currently suspended, while it undergoes a
process of data and methodology revision in 2014. The next release is preliminarily scheduled
for November 26, 2014.
More: Chicago Fed

Kansas City Fed (western MO, NE, KS, OK, WY, CO & northern NM)
[G]rowth in Tenth District manufacturing activity expanded solidly, and producers expectations
for future factory activity remained at healthy levels. The month-over-month composite index
was 10 in May, up from 7 in April and equal to 10 in March.
More: Kansas City Fed

Dallas Fed (TX, northern LA and southern NM)
Texas factory activity increased again in May The production index, a key measure of state
manufacturing conditions, fell from 24.7 to 11, indicating output grew but not strongly as
in April.
More: Dallas Fed

U.S. Manufacturing Technology Orders (USMTO)
March U.S. manufacturing technology orders totaled $492.8 million, up 38.5% from February,
and up 2.9% when compared with March 2013.

With a year-to-date total of $1,228.6 million, 2014 is up 0.9% compared with 2013.

These numbers and all data in this report are based on the totals of actual data reported by
companies participating in the USMTO program. The chart below shows year-over-year change
and total orders on a national and regional basis.
-28.2
-0.2
na
+42.2
+9.6
na
+2.9
West
South Central
North Central-West
North Central-East
Southeast
Northeast
Total
492.8
67.5
na
200.3
na
na
na
Year-over-year
change (%)
Mar
orders ($m)

More: AMT


4. ABOUT THIS NEWSLETTER
==================================
This update is provided by the Office of U.S. Senator Chris Coons on behalf of the Manufacturing
Jobs for America initiative. For more information, visit coons.senate.gov/manufacturing or
email jj_singh@coons.senate.gov or josh_boylan@coons.senate.gov.