MANUFACTURING UPDATE

- November/December 2015 -

1. LATEST POLICY

==================================

Senator Coons R&D Provisions Included in Year-End Tax Extenders Bill

Two key R&D provisions included in tax bill originated from Coons first piece of legislation he
introduced in the Senate
The year-end tax extenders bill released last night includes three important provisions previously
introduced by U.S. Senator Chris Coons (D-Del.) that will allow businesses to grow and create jobs,
especially in the manufacturing industry. The bill will permanently extend the R&D tax credit, help
startup companies access the credit, and allow small and medium-sized businesses to use the credit
against Alternative Minimum Tax (AMT) liability.
Senator Coons first piece of legislation in the Senate called for a permanent extension of the R&D
credit. This is one of the most important credits to American businesses and until today, Congress has
failed to permanently extend it. In fact, the R&D tax credit was initially enacted in 1981 and has been
temporarily extended 16 times.
More: Coons Release

Obama Signs 5-year, $305 Billion Bill to Boost Highway Spending, Assure States
of Aid

A 5-year, $305-billion bill to address the nation's aging and congested transportation systems was signed
into law by President Barack Obama, who said it will put Americans to work and provide states with the
federal help they need to commit to long-term projects.
The bill, which was overwhelmingly approved by Congress a day earlier, provides a modest increase to
highway and transit spending but falls short of the $400 billion over six years administration officials said
is necessary to keep traffic congestion from worsening. Nor does it resolve how to pay for
transportation programs in the long term.
More: U.S.News & World Report

Export-Import Bank Is Revived

Legislation signed by President Barack Obama resurrected the U.S. Export-Import Bank and ended a fivemonth lapse that revealed far stronger bipartisan backing for the agency than the pitched battle to shut
it down suggested.
The outcome now gives the bank a firm footing until September 2019, but the brawl over its existence
this year left both economic and political scars.
The Ex-Im Bank charter ran out in July, preventing the agency from writing new business, after key
lawmakers bottled up legislation that would overhaul and renew it. The unprecedented pause in activity
for the 81-year-old agency that finances American exports prompted companies to move business
abroad or risk lost sales.
More: Wall Street Journal

Missouri and U.S. Chambers of Commerce Join McCaskill to Tout Her Bipartisan
Plan Recently Signed Into Law to Boost Job Opportunities, Streamline Permitting
Senators bipartisan plan to reform federal permitting was included in long-term Highway bill

Representatives from the Missouri Chamber of Commerce and the U.S. Chamber of Commerce today
joined U.S. Senator Claire McCaskill to discuss bipartisan legislation by McCaskillrecently signed into
lawthat will boost job and business opportunities by reforming federal permitting.
Senator McCaskill, thanks so much for your leadership on this issueit means a real breath of fresh air
for infrastructure around the country, said Daniel Mehan, President and CEO of the Missouri Chamber
of Commerce and Industry, on a media conference call. Missouri is keen on infrastructure with our
location in the center of the countryweve got a cross-section of pipelines, roads, railswith the
second, third largest rail hubs in the country and sixth largest highway system. But this means that
infrastructure development will be simplified, itll be expedited, and with the focused management itll
help in a great way employ a lot of Missourians congratulations on a unique display of bipartisanship in
the federal government.
More: McCaskill Release

Murphy Announces New Report Showing His Buy American Act Will Create
100,000 U.S. Jobs

The Economic Policy Institute Released New Findings That Murphys 21st Century Buy American Act
Would Boost Demand For American Manufacturing & Create As Many As 100,000 U.S. Jobs
During a visit to Turbine Technologies, Inc., one of Connecticuts high-growth manufacturers, U.S.
Senator Chris Murphy (D-Conn.) celebrated new findings by the Economic Policy Institute that passage
of his 21st Century Buy American Act would create up to 100,000 U.S. jobs. Specifically, the report found
that by closing loopholes in the Buy American Act, including the overseas usage loophole, and boosting
the percentage of American-made content of all purchases covered by the Buy American Act, Murphys
bill would increase GDP by $13.6 billion and create between 60,000 and 100,000 new U.S. jobs.
More: Murphy Release

Calif. Congressman Cardenas Introduces Manufacturing Jobs Bill, inspired by

Race to the Top

U.S. Reps. Tony Crdenas (D-San Fernando Valley, Calif.) and Brad Ashford (D-Omaha, Neb.) introduced
legislation creating a $100 million in competitive grants that will promote reforms in workforce
education and skills training for manufacturing jobs. The Manufacturing Skills Act was also introduced in
the U.S. Senate earlier this year by U.S. Sens. Chris Coons (D-Del.).
More: California Newswire

Sen. Al Franken, Rep. Tammy Duckworth Introduce Bill to Train Workers for
Open, High-Skill Jobs Legislation Will Promote Partnerships between Businesses
and Community Colleges to Address Skills Gap

U.S. Sen. Al Franken (D-Minn.) and Rep. Tammy Duckworth (D-Ill.) announced the introduction of their
legislation to close the "skills gap"where jobs go unfilled because businesses can't find workers with
the right skillsby supporting partnerships between community colleges, technical colleges, and
businesses to train students to fill high-demand jobs.

The Community College to Career Fund Act, which Sen. Franken first introduced last Congress, will help
create partnerships between two-year colleges and businesses with the goal to train millions of
Americans for jobs in high-skill industries, such as health care, advanced manufacturing, clean energy,
and information technology.
More: Franken Release

Stabenow, Peters, Miller Urge Obama Administration to Support Funding for

Blue Water Bridge

U.S. Senators Debbie Stabenow (D-MI), Gary Peters (D-MI) and Rep. Candice Miller (R-MI) wrote to
Secretary of Homeland Security Jeh Johnson and Director of the Office of Management and Budget
Shaun Donovan urging the Administration to make the expansion of a customs plaza for the Blue Water
Bridge in Port Huron a high priority for funding in the Fiscal Year 2017 budget. Despite land being
cleared and property demolished in Port Huron for the expansion, funding for the customs plaza
construction has yet to be allocated.
More: Stabenow release

Klobuchar, Franken Introduce Legislation to Crack Down on Illegal Steel

Dumping, Protect U.S. Steelworkers

The illegal dumping of steel products by foreign countries is harming the steel industry in Minnesota and
across the country, resulting in plant closures and job losses
Senators' bill would crack down on illegal steel dumping by strengthening trade enforcement.
U.S. Senators Amy Klobuchar (D-MN) and Al Franken (D-MN) introduced legislation to crack down on
illegal steel dumping and protect U.S. steelworkers. The illegal dumping of steel products by foreign
countries is harming the steel industry in Minnesota and across the country, resulting in plant closures
and job losses. The senators' bill would crack down on illegal steel dumping by strengthening trade
enforcement.
More: Franken Release

Senator Gillibrand Announces New Legislation to Help Expand Small Businesses,

Boost Manufacturing

Legislation Would Increase Access to Capital & Help Small Businesses Create & Keep High-Paying, High
Skilled Manufacturing Jobs in the U.S

Freeville, NY Standing at Incodema3D, U.S. Senator Kirsten Gillibrand today announced legislation to
help small businesses expand their advanced manufacturing operations and create and keep highpaying, high skilled manufacturing jobs in the United States. The Scale-Up Manufacturing Investment
Company Act of 2015 would increase capital for entrepreneurs and small businesses looking to scale-up
and commercialize their advanced manufacturing and innovation operations.
More: Gillibrand Release

TechHire Initiative: Creating Pathways to Better, Well-Paying Tech Jobs and

Meeting Urgent Employer Demand Across the U.S.

TechHire is a bold multi-sector initiative and call to action to empower Americans with the skills they
need, through universities and community colleges but also nontraditional approaches like coding boot
camps, and high-quality online courses that can rapidly train workers for a well-paying job, often in just
a few months. Employers across the United States are in critical need of talent with these skills. Many of
these roles do not require a four-year computer science degree. To give Americans the opportunity they
deserve, and the skills they need to be competitive in a global economy, we are highlighting TechHire
partnerships.
More: White House Release

Klobuchar OP ED: We Need a Nationwide Commitment to Broadband

Technology is reshaping the ways we live, work, play and communicate. The Internet is connecting
communities and creating opportunities we couldnt have imagined even a few decades ago. Today, you
dont need to live off an interstate highway or in a major city to find a good job, launch a new business
or take college classes.
But without a reliable high-speed internet connection, your options can be limited. In the 1930s, our
country brought electricity and telephone service to communities from coast to coast. In order to
compete in todays global economy, we need to make that same commitment to connecting all
Minnesotans with high-speed broadband Internet.
More: Klobuchar Release

Senator Gillibrand Announces New Legislation to Address Skills Gap, Enhance

Job Training with Apprenticeship Programs
Gillibrand Announces Bipartisan Legislation to Address Skills Gap, Tours Revere Copper Products
Bipartisan Legislation Incentivizes Employers to Provide Workers On-The- Job Training

Rome, NY - U.S. Senator Kirsten Gillibrand announced legislation to address the skills gap employers face
and enhance job training to help workers develop the skills they need for good-paying, high-demand
jobs. The bipartisan Apprenticeship and Jobs Training Act of 2015 would create a $5,000 tax credit for
employers that use apprenticeship programs to train workers in high-demand professions such as health
care, manufacturing and technology. The bill also would allow veterans in apprenticeships to get credit
for previous military training and experience, as well as incentivize mentoring of apprentices by senior
employees.
More: Gillibrand Release

2. OTHER NEWS

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VIDEO: Senator Coons Highlights Delaware Apprenticeship Programs, The Other

Four-Year Degree
1,100 Delawareans are currently in apprenticeship programs; Senator Coons highlights apprenticeship
programs in New Castle, Wilmington, Glasgow

U.S. Senator Chris Coons (D-Del.) spoke on the Senate floor to recognize National Apprenticeship Week,
which was created to help business leaders, educators, community based organizations, students, and
workers learn about the real-world advantages of apprenticeships. 1,100 Delawareans are actively
working through apprenticeship programs.
More: Coons Release

Senator Stabenow Applauds $3 Million USDA Investment in Michigan Biofuels

Funding Will Help Increase Consumer Fuel Options, Reduce Fuel Costs and
Dependence on Foreign Oil

U.S. Senator Debbie Stabenow, Ranking Member of the Senate Committee on Agriculture, Nutrition and
Forestry, announced that Michigan has been chosen as a partner in the U.S. Department of Agriculture's
Biofuels Infrastructure Program, which supports projects that increase the production and delivery of
renewable fuels like ethanol. The state will receive $3 million to add approximately 130 ethanol and
gasoline/ethanol blender pumps at Michigan fueling stations. This grant will be matched by state and
local support, more than doubling the funding available to install these pumps.
More: Stabenow Release

Brown Applauds $82 Million Investment in Moraine DMAX Plant

U.S. Sen. Sherrod Browns (D-OH) applauded news that DMAX, Ltd. a partnership between General
Motors and Isuzu will invest $82 million in the DMAX engine plant in Moraine. The project is expected
to create approximately 150 new jobs over the next three years.
More: Brown Release

Blumenthal, Murphy, DeLauro Announce $2.5 Million for Wallingfords Proton

Energy to Develop Ultra Efficient Battery

U.S. Senator Richard Blumenthal (D-Conn.), U.S. Senator Chris Murphy (D-Conn.) and Congresswoman
Rosa DeLauro (D-3) announced that the U.S. Department of Energy has awarded Wallingfords Proton
Energy $2.5 million to develop a highly-efficiency hydrogen-iron flow battery capable of generating
hydrogen to power fuel cells while also storing energy on the electric grid. The battery can be recharged
either using grid electricity or through exposure to sunlight.
More: Blumenthal Release

Senator Coons Speaks at Aviation Jobs Rally, Notes That Jobs are Available,
Need to be Filled

Sen. Coons joined Sen. Carper, Rep. Carney and Gov. Jack Markell at Dassualt Falcon Jet to help
recognize the contributions of the general aviation manufacturing industry to the Delaware economy.
The event, hosted by General Aviation Manufacturers Association (GAMA) welcomed leaders from Aloft
AeroArchitects (previously PATS Aircraft Systems), Dassault Falcon Jet, FlightSafety International, and
Summit Aviation to reflect on the role aviation plays in the local economy.
Today, we celebrate some of the highest paying, highest quality manufacturing jobs in this country that
are right here in Delaware, said Sen. Coons. We know that not enough people know about these jobs.
More: Coons Release

Klobuchar, Franken, Dayton, Peterson Announce $10 Million to Alleviate Freight

Bottleneck in Willmar
U.S. Senators Amy Klobuchar and Al Franken, Governor Mark Dayton, and Representative Collin
Peterson announced that the U.S. Department of Transportation has awarded a $10,000,000
Transportation Investment Generating Economic Recovery (TIGER) Grant for Willmar's Rail Connector
and Industrial Access project.
More: Franken Release

Murphy Marks National Apprenticeship Week

U.S. Senator Chris Murphy (D-Conn.) marked the Obama administrations first-ever National
Apprenticeship Week, and called on Connecticut businesses to expand apprenticeship opportunities
throughout the state. National Apprenticeship Week spans from November 1, 2015 to November 7,
2015.
More: Murphy Release

Workforce Training Partnerships Look to Fill Open Jobs Now

Raimondo, Congressional delegation announce 26 Real Jobs RI grants

Governor Gina M. Raimondo, along with the Rhode Island Congressional delegation, announced the
recipients of the Real Jobs RI implementation grants available through the Rhode Island Department of
Labor and Training (DLT). Real Jobs RI is a demand-driven initiative that puts employers at the center of
the state's workforce development efforts to train people for jobs that actually exist now.
More: Reed Release

3. SECTOR DATA

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Purchasing Managers Index (PMI)

The November PMI registered 48.6 percent, a decrease of 1.5 percentage points from the October
reading of 50.1 percent. Economic activity in the manufacturing sector contracted in November for the
first time in 36 months, while the overall economy grew for the 78th consecutive month.
The PMI is a widely watched measure of aggregate manufacturing strength. The 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 November, Inventories read 43.0 (-3.5%), Supplier Deliveries read 50.6 (+0.2%), Employment read
51.3 (+3.7%), Production read 49.2 (-3.7%), and New Orders read 48.9 (-4.0%).
More: Institute for Supply Management

Employment

Preliminary estimates by the Bureau of Labor Statistics show that manufacturing employment was down
1,000 in November, at a seasonally adjusted 12.318 million.

Manufacturing employees, millions

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 for the last six
months (in thousands). Both numbers are seasonally adjusted.
Month-on-month change, thousands

15

+1 +11
14

+1

-1
-19 -8
Jun Jul Aug Sep Oct Nov

13
12
11
'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

'15

More: Bureau of Labor Statistics

Federal Reserve 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. The chart below shows these measures for the last six months.

Manufacturing
production

106.2

106
104

90
80

76.2

102
100

70
60

Jun
More: Fed

100

July
Aug
Sept
Oct
Nov
Manufacturing production
Manufacturing capacity utilization

Manufacturing capacity
utilization (%)

108

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.
New York Fed (NY state, 12 northern NJ counties, and Fairfield County in CT)
The December 2015 Empire State Manufacturing Survey indicates that business activity declined for a
fifth consecutive month for New York manufacturers. However, the pace of decline slowed somewhat:
the headline general business conditions index, though still negative, moved up six points to -4.6.
More: NY Fed
Philadelphia Fed (eastern PA, southern NJ, and DE)
Manufacturing conditions in the region weakened this month, according to firms responding to the
December Manufacturing Business Outlook Survey. The indicator for general activity, which was slightly
positive last month, fell into negative territory. The indexes for new orders and shipments were mixed.
Firms reported slight increases in overall employment this month and an increase in average work hours
compared with November.
More: Philadelphia Fed
Richmond Fed (DC, MD, NC, SC, Virginia & most of WV)
Fifth District manufacturing activity slowed in November, according to the most recent survey by the
Federal Reserve Bank of Richmond. Shipments remained sluggish and new orders declined. Hiring in the
sector changed little compared to the previous month, while the average workweek shortened and
wages rose mildly. Raw materials prices rose at a somewhat faster pace, while prices of finished goods
increased modestly in November.
More: Richmond Fed

Chicago Fed (southern WI, IA, northern IL, northern IN, and southern MI)
In December 2013, the monthly release of the CFMMI was suspended pending the release of updated
benchmark data from the U.S. Census Bureau and a period of model verification.
More: Chicago Fed
Kansas City Fed (western MO, NE, KS, OK, WY, CO & northern NM)
The Federal Reserve Bank of Kansas City released the December Manufacturing Survey today.
According to Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City,
the survey revealed that Tenth District manufacturing activity declined moderately, although
expectations for future activity remained solid.
More: Kansas City Fed
Dallas Fed (TX, northern LA and southern NM)
Texas factory activity increased for a second month in a row in November after exhibiting weakness in
the first three quarters, according to business executives responding to the Texas Manufacturing
Outlook Survey. The production index, a key measure of state manufacturing conditions, edged up from
4.8 to 5.2.
More: Dallas Fed

U.S. Manufacturing Technology Orders (USMTO)

October U.S. manufacturing technology orders totaled $327.39 million, down 28.3% compared to
$456.44 million in October 2014. Year to date, total orders for 2015 stand at $3,452.82 million,
compared to $4,178.71 million at the same point in 2014. This data is a reliable leading economic
indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and
improve productivity.
While the general economy continues to grow at a moderate pace, the manufacturing sector is
struggling with the effects of a strong dollar, reduced commodity prices, especially oil, and struggles in
key export markets like China, said AMT President Douglas K. Woods. As the broader industry faces
this slowdown, manufacturers are not making significant capital investment in new manufacturing
technology.
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 October
2015 orders on a national and regional basis. Fields marked NA denote where, due to changes in the
make-up of survey participants, an accurate reflection of the data is not available.
Year-over-year
change (%)
Total

October
Orders ($m)
327.4

-28.3

Northeast

NA

53.3

Southeast

NA

NA

North Central-East
North Central-West
South Central

111.2

-12.8
NA

NA

-72.0
West

NA

NA

57.9

More: Association for Manufacturing Technology

4. ABOUT THIS NEWSLETTER

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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
Peter_Winter@coons.senate.gov.

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