Subcommittee Examines Proposal to Help Revitalize Manufacturing
(Washington, DC) – Today, the House Committee on Science, Space, and Technology’s Subcommittee on Technology and Innovation held a hearing to examine the proposed National Network for Manufacturing Innovation (NNMI). Testifying before the Subcommittee was Dr. Patrick Gallagher, Under Secretary of Commerce for Standards and Technology at the National Institute of Standards and Technology (NIST).
Ranking Member Donna F. Edwards (D-MD), in her opening statement, stressed the importance of investments in manufacturing. She said, “We’ve heard time and time again in this Committee about the crucial link between economic growth and a vibrant U.S. manufacturing sector. Simply put, “Made in America” equals American jobs and a strong economy… Unfortunately, this Committee has also heard that the United States’ competitive edge in manufacturing has slipped. According to the Council on Competitiveness, the United States ranks fourth in global manufacturing competitiveness and is expected to fall to fifth place in five years. Countries such as Korea, Japan, and Germany have a larger share of the advanced manufacturing sector than the U.S. If we do nothing and settle for the status quo, our position will almost certainly decline further and our economy will continue to struggle.”
She continued, “Thankfully, the Administration has renewed its commitment to American manufacturing and is focused on ensuring that the U.S. is the global leader in advanced manufacturing. The truth is that the perception of manufacturing as low-skilled, assembly line work is outdated and no longer applies. The future of manufacturing is advanced manufacturing, a high-tech endeavor that uses sensors, robotics, and cutting-edge modeling and simulation. If we want to create high-paying jobs and help this country keep its competitive edge, then we need to move forward with policies and programs that will expand and support the development of advanced manufacturing.”
The Administration’s FY 2013 budget proposed $1 billion in mandatory funding to NIST for the establishment of the NNMI. NNMI would be a collaborative investment between NIST, the Department of Defense (DOD), the Department of Energy (DOE), and the National Science Foundation (NSF) to establish a network of up to 15 public-private manufacturing institutes. The institutes would invest in industrially-relevant manufacturing technologies with broad applications to bridge the gap between basic research and product development, provide shared assets to help companies access cutting-edge capabilities and equipment, and create an environment to educate and train students and workers in advanced manufacturing skills. The purpose of these institutes would be to serve as centers of manufacturing excellence that would accelerate innovation in manufacturing and help transition cutting-edge manufacturing technologies from the lab to the marketplace.
NNMI would be similar to Germany’s Fraunhofer Institutes, which comprise the largest applied research organization in Europe. Research at 60 institutes is supported through public-private partnerships between the German government and industry. A variety of groups support the creation of a manufacturing network similar to NNMI including, the Information Technology and Innovation Foundation (ITIF), the Council on Competitiveness, the President’s Council of Advisors on Science and Technology, and the Manufacturing Institute at the National Association of Manufacturers (NAM).
During the course of the hearing, Dr. Gallagher pointed out that policies which improve the business environment for manufacturers, such as lower corporate taxes and reduced regulatory burden, are just part of the solution to revitalizing manufacturing in the United States. Dr. Gallagher said, “The reasons companies go overseas…are actually broader than just the taxation, regulation or labor cost issues. Those are clearly drivers, but one of them is that they are following [R&D] capacity…. You can make a decision that makes sense in the short-term, where you decide to offshore something because it’s cheaper to make that product, and what we find now is that you’ve actually lost the capacity to generate the next generation product. And that’s the long-term tradeoff that we’re trying to address here.”
Ms. Edwards said, “I believe the NNMI concept has significant merit, and am excited by the Administration’s proposal…Certainly, the challenges facing U.S. manufacturers are urgent. The truth is that we simply can’t afford to wait. If we are committed to a vibrant manufacturing sector and to improving our competitive position in advanced manufacturing, it is precisely the time for bold ideas and devoted leadership.”
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