Subcommittee Discusses Bipartisan Manufacturing Legislation
(Washington, DC) – Today, the Committee on Science, Space, and Technology’s Subcommittee on Research and Technology held a hearing to examine H.R. 2996, the Revitalize American Manufacturing and Innovation Act of 2013 (RAMI) introduced by Joseph P. Kennedy III (D-MA) and Rep. Tom Reed (R-NY).
H.R. 2996 directs the Secretary of Commerce to establish the Network for Manufacturing Innovation program to improve the competitiveness of U.S. manufacturing and increase domestic production; stimulate U.S. leadership in advanced manufacturing research, innovation, and technology; and accelerate the development of an advanced manufacturing workforce. Companion legislation has been introduced in the Senate, S. 1468, by Senator Brown (D-OH) and Senator Blunt (R-MO). H.R. 2996 authorizes the creation of a network of manufacturing institutes as called for in the Administration’s proposed National Network for Manufacturing Innovation (NNMI).
Ranking Member of the Subcommittee, Dan Lipinski (D-IL) said in his opening statement, “Although we’ve heard time and time again about the crucial link between economic growth and a vibrant U.S. manufacturing sector, I think these facts bear repeating: At 60 percent of all exports, manufacturing is the largest contributor to U.S. trade. Manufacturing employs more than 11 million Americans in jobs providing above average pay and benefits. The sector adds approximately $1.6 trillion to our gross domestic product…Simply put, “Made in America” equals American jobs and a strong economy. Now when our position as a global leader in science and technology is being threatened, we can’t afford to lose our capacity to create the breakthrough technologies of tomorrow. We must adopt smart policies that encourage innovation and investment in manufacturing. I believe H.R. 2996 is a smart policy. I look forward to working with all of my colleagues to advance legislation like this that will help keep American manufacturing strong.”
Mr. Kennedy in discussing his legislation said, “There is no doubt that manufacturing has suffered mightily the past few decades. But, the slow and steady movement we see today is positive. In a time of growing income inequality; in a time of still-evaporating middle-class jobs and decreased economic mobility –manufacturing can and must remain a cornerstone of the American economy. As policy-makers, if we want the success we’ve seen in recent months to continue, then we must focus our efforts on better linking our innovation and manufacturing sectors --understanding that the latter is a critical vehicle for bringing the former to market. I am proud to be here to testify in support of this bill, which Congressman Reed and I believe would help accomplish these important goals.”
He continued, “[T]here is no question today we face a federal budget landscape that can seem unforgiving. But it is our responsibility – as the men and women elected to make policy decisions on behalf of a country struggling to find its economic footing – to employ some vision and some foresight when tackling these challenges; to look beyond politics today in the interest of progress tomorrow. If we fail to plan for the future, if we fail to make the investments we need for the kind of country we want; then we will put this country on a path of economic stagnation that will be harder and harder to reverse.”
Ranking Member of the Full Committee, Eddie Bernice Johnson (D-TX) also spoke in support of the legislation. She said, “I am supportive of the legislation and its purpose to revitalize American manufacturing because I strongly believe that if the United States is to remain competitive in the long-term, we need to ensure that American companies maintain their capacity to manufacture innovative products here at home. The key to maintaining this capacity is through strategic investments in advanced manufacturing research, development, and education. While the United States is struggling to sustain its competitive edge other countries are focusing their full attention on manufacturing. They are implementing the policies and programs necessary to build 21st century economies now. We simply cannot afford to stand on the sideline and watch our competitors pass us by. A vibrant manufacturing sector is just too important.” Ranking Member Johnson is a co-sponsor of H.R. 2996.
Witnesses were also supportive of H.R. 2996.
Mr. Jonathan Davis, Global Vice President of Advocacy at the Semiconductor Equipment and Materials International (SEMI), said, “I think the essential thing facing manufacturers such as those in our association is how you maintain a pace of innovation. Innovation isn’t something you fund once, buy and then you’ve got it. It is an ongoing process that needs to be sustained within this country. By way of example, I think about innovative products, things that have changed our economy and our competitiveness. You look at this thing (shows iPhone) which I believe probably every person in this room has one of in their pockets. Every single element of this smartphone that makes it smart is a product of industry collaboration and public-private partnerships. Touchscreen displays, global positioning systems, the internet, wireless connectivity, microchips, all those things were products of public-private partnerships. So the vision and leadership that this country can take through Acts such as this lay a foundation for future prosperity in this country and innovation.”
Dr. Stephan Biller, Chief Scientist of Manufacturing Technology at General Electric Global Research said, “The U.S. has always been strong in supporting early stage R&D discoveries that have ultimately led to new commercial opportunities. A great example is GE’s introduction of the first digital x-ray product in 1999. It was early support from the US government in the basic science behind digital x-ray that kept the technology development moving at a critical juncture of the research program. This paradigm is changing. Today, government support for innovation has to be more targeted, involve more partners and be committed to longer time horizons. For innovations to be implemented by enterprises of all sizes, funding and collaboration needs to continue to a small-scale production level, or later stages of R&D closer to commercialization. Other developed high-wage countries, such as Germany and Japan have long taken such an approach and their current level of manufacturing competitiveness is evidence that such a funding approach is highly beneficial to their societies considering their levels of manufacturing employment. Similarly, the launch of the Network of Manufacturing Innovation (NNMI) would provide an opportunity to significantly improve the competitiveness of U.S. manufacturing.”
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