Archive for the ‘Supply Chain’ Category

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Chicago Today, Russia Tomorrow

June 27, 2012

Francisco Sánchez is the Under Secretary for International Trade

Today I was fortunate enough to speak at the SMC3 conference in Chicago about the progress we’ve made toward achieving the President’s goal of doubling U.S. exports. SMC3 is a supply chain industry association that provides technology to shipping and logistics companies across the country, the very same companies who ensure the efficient transportation of American exports. Each year, the conference brings together representatives from America’s most active manufacturing, trucking, rail, shipping, and logistics firms.

The success of U.S. exporters depends in part on U.S. businesses being able to quickly and efficiently get their products to market. So it was fitting that I gave these remarks in Chicago, home to some of America’s most important freight and transportation corridors. According to the latest data, the Chicago metropolitan area is the 7th largest export market in the U.S. with merchandise shipments totaling nearly $34 billion.

Under Secretary Francisco Sanchez and Chicago U.S. Export Assistance Center Director Julie Carducci present Export Achievement Certificate to BayRu CEO Aaron Block. (Photo Commerce)

Chicago is also home to some of America’s top exporters. I was pleased to honor an innovative company, BayRu, with an Export Achievement Certificate while in Chicago. Their online store, http://www.bay.ru, BayRu is one of the fastest growing e-commerce sites in Russia. On bay.ru, Russian shoppers can buy a wide range of American consumer goods found in catalogues like E-bay and Amazon and then have those products shipped to more than 160 cities across Russia and other CIS states.

But what makes this company unique is that it’s headquartered right here…in Skokie, Illinois. BayRu has a unique business model of buying American consumer goods here, which are often tough to find in Russia, repackaging them, and then exporting those goods for delivery in Russia.

In January 2011, BayRu partnered with the International Trade Administration’s Commercial Service in Chicago and Moscow to gain market knowledge and insight. Since partnering with ITA, BayRu’s export sales increased by more than $10 million and it plans to create 20 local jobs here in the Chicago area.

BayRu is just another example of an American company being creative, growing their business through exports, and creating good-paying jobs for Americans in the process. But it is also the prime example of a company that would benefit from Russia’s WTO accession and the repeal of the Jackson-Vanik Amendment.

Currently, Russia is set to join the WTO, which will reduce tariffs and increase transparency, making it easier for American companies to access this large and growing export market. However, Russia is still covered by the Jackson-Vanik Amendment, which makes trade conditional with certain economies. If this amendment is not repealed, American businesses would not be able to enjoy the benefits of more open trade with Russia.

That’s why the Obama administration has called on Congress to repeal the amendment and grant Permanent Normal Trade Relations (PNTR) with Russia as soon as possible. It makes no sense to let American businesses stand on the sideline while our global competitors take advantage of Russia’s WTO accession and gain access to a growing market with new opportunities for innovative American companies, like BayRu.

If Congress establishes PNTR with Russia, it will open the door for American businesses to expand into Russia and create jobs here at home. BayRu will enjoy many real benefits, direct and indirect. Increasing trust and awareness of U.S. brands will help drive their growth even further and help them create more good-paying jobs in Chicago.

This is an important issue for many businesses across the country. To find out more about what Russia WTO accession and the repeal of Jackson-Vanik could mean for business, visit our website where you’ll find detailed reports on potential opportunities for U.S. businesses.

Posted in Commercial Service, Competitiveness, Exporting, Supply Chain | Tagged , , , | Leave a Comment »

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Expanding Trade through Services

May 21, 2012

John Miller is an International Trade Specialist for retail, direct marketing and cold chain issues in the Export Facilitation Services Team of the Office of Service Industries.

Services are critical to trade and the U.S. economy; they provide the design, development, implementation and distribution functions critical to the manufacturing sectors in the U.S. that are expanding the country’s export capabilities and to U.S. competitiveness in the global economy. In 2011, services activities in the U.S. accounted for nearly 80 percent of private sector Gross Domestic Product and 82 percent of all private sector employment. Employment in the U.S. services sectors is very diverse and can range from architecture and other professional services to education and media, from express delivery and logistics to business process services on a global basis, to name just a few. Global trade in services is growing rapidly. Services comprised 29 percent of total U.S. exports and totaled $608 billion in 2011, posting a trade surplus of $178 billion. The U.S. is both the top exporter and the top importer of services in the world. Pie chart showing shares of U.S. private sector GDP in 2011. Services is 79% of GDP, while Manufacturing is 14%, Construction is 4%, Mining is 2% and Agriculture is 1%

As an advocate for the development of U.S. service industries in international trade, the Commerce Department’s Office of Service Industries works closely with the private sector to expand their exports and with other U.S. government agencies to improve foreign market access for U.S. companies. We provide Commerce and Government agencies expert guidance on industry analysis, competitiveness, trade policy and negotiations across a broad range of service industries. We provided critical industry information for the development of the Colombia, Panama, and Korea trade promotion agreements, and our active engagement in trade talks like the Trans-Pacific Partnership ensures that the market access interests of the services sector are taken into account.

Currently, we have a number of projects under way to expand services trade worldwide. Our Export Facilitation Services Team is putting the finishing touches on a senior-level advisory committee on supply chain competitiveness issues. The committee will advise the Secretaries of Commerce and Transportation on issues involving freight policy development to reduce congestion delays and lower costs for U.S. businesses operating within the U.S. and trading goods and services worldwide.

We are also working with manufacturers, operators and users of temperature-controlled warehousing, transportation and distribution to expand safe exporting of temperature-sensitive products to emerging economies including China, India and Brazil.  This project has the potential to increase demand for U.S. manufactured cold transportation and warehouse equipment while doubling agriculture exports.  Find out more about the Export Facilitation Services Team and how we are working to increase U.S. services exports through our website.

 

Posted in Exporting, International Trade Administration, Services, Supply Chain, Trade Data | Tagged , | 1 Comment »

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Jobs Supported by Exports Surge by 1.2 million

March 14, 2012

Martin Johnson and Chris Rasmussen are Senior Economists in the Office of Industry Analysis within the International Trade Administration

For the first time in U.S. history annual exports of goods and services crossed the $2 trillion threshold exceeding $2.1 trillion in 2011.  This increase in exports builds on the strong growth in 2010, and in 2011 exports of U.S. goods and services were up over 33 percent from 2009. This growth in exports corresponded with growth in jobs supported by U.S. exports. 

We estimate that in 2011 jobs supported by exports increased to 9.7 million in 2011, up 1.2 million since 2009. While the total value of U.S. exports set an all time record in 2011, jobs supported by exports in 2011 were just shy of the 2008 peak of 9.8 million.  In 2011, every billion dollars of U.S. exports supported 5,080 jobs.

Traditionally we think of export oriented jobs as those engaged in making and transporting goods, like at ports, rail, trucks, and manufacturing facilities, as well as at customs brokers and freight forwarders.

However, jobs all along the supply chain of both manufacturing and service industries are captured in this estimate. That means that all of the people who make and install parts that eventually end up in large equipment or small electronics sold abroad are included in this estimate.

In addition, people who are involved in exporting services, such as legal and financial services and travel and tourism are also included.

While your company may not export directly, if you sell products or services to one that does, you are part of this overall export equation.

Posted in Competitiveness, Exporting, Manufacturing, Services, Statistics, Supply Chain | Tagged , | 1 Comment »

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Creating Jobs: “Plane” and Simple

February 7, 2012

This post contains external links. Please review our external linking policy.

Kim Wells is a senior international trade specialist in the Office of Aerospace, with 19 years’ experience supporting aerospace exports.

Most people think of planes as a way of connecting people with destinations.  In the International Trade Administration (ITA), we know that just one plane connects thousands of workers here at home.

As with most exports of large, high-tech products, the export of one aircraft (or ship, or large piece of machinery) is the result of a huge supply chain that touches people and communities across the United States.

For example, in November 2011, Emirates Airlines signed an agreement to purchase 50 new Boeing 777-300ER aircraft with options for 20 more, totaling $26 billion at list prices.  Each 777 will be equipped with two American-made GE90 engines. Though the names on the plane may be “Boeing” and “GE”, the truth is that each aircraft is a finely integrated system of nearly four million parts from more than 11,000 suppliers specializing in everything from lighting to advanced avionics and seatback trays to landing gear. As a result, this single sale will support over 100,000 U.S. jobs in more than a dozen states.

These jobs are the kind of jobs the United States is seeking—high technology, high wage, and high skilled.  And with each of these jobs, thousands of other indirect jobs are created that support the work and lives of these employees.  In fact, the aerospace and defense industry employed over 818,000 people in the United States in 2009 and supported an additional 1.8 million U.S. jobs in related fields.

The U.S. aerospace industry has the highest trade surplus of any U.S. manufacturing industry and supports more jobs through exports than any other manufacturing industry.  At ITA, we know that U.S. firms—whether they make large planes or business jets, helicopters or aircraft engines—can produce products at home that will beat the competition overseas as long as they compete on a level playing field.  That’s why aerospace is an important export industry that will help achieve the goals of President Obama’s National Export Initiative.  ITA’s Aerospace Team is working hard to identify and create new export opportunities, break down barriers in foreign markets and ensure that level playing field for our manufacturers in order to create and secure aerospace industry jobs here in the United States.

So, is selling an airplane overseas good for the country and for American jobs? 

Yes–“plane” and simple.

Posted in Competitiveness, Exporting, International Trade Administration, Manufacturing, National Export Initiative, Supply Chain | Tagged , | 1 Comment »

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Meeting the Challenge of Supply Chain Infrastructure Competitiveness

December 7, 2011

With the recent announcement of a new advisory committee on supply chain competitiveness, the Department of Commerce is looking to work closely with U.S. industry to identify ways of improving the movement of goods.

Russell Adise is an international trade specialist in the International Trade Administration’s Manufacturing and Services unit.

An important step in assuring the integrity of U.S. supply chain infrastructure was taken on November 3, 2011, when Secretary of Commerce John Bryson and Francisco Sánchez, under secretary of commerce for international trade, announced the establishment of the Advisory Committee on Supply Chain Competitiveness. Through this committee, the secretary of commerce will receive guidance and input from supply-chain firms and associations, stakeholders, community organizations, and others directly affected by the supply chain, as well as experts from academia, from throughout the United States on the development and administration of programs and policies to expand U.S. export growth and foster the competitiveness of U.S. supply chains in the domestic and global economy.

Bayonne, New Jersey port looking over New York City and the Statue of Liberty (photo courtesy istock/Janine Lamontagne

Bayonne, New Jersey port looking over New York City and the Statue of Liberty (photo courtesy istock/Janine Lamontagne)

Crucial Link in Trade

U.S. supply chains are a crucial link between the country’s exporters and the global economy. Every export, and every export-related job, is dependent on the operations and processes that comprise the nation’s supply chains, from material sourcing, to product manufacturing, to consumer delivery. U.S. export competitiveness depends on the smooth, seamless, and rapid movement of goods through the supply chains from beginning to end. Any chokepoint can result in missed exports, lost sales, higher costs, and lost jobs.

The declining state of U.S. infrastructure has become an increasing challenge to exporters. Systemic, long-term infrastructure deficiencies have a dramatic, negative impact on the speed and predictability of the movements of goods around the country. Shippers blame this situation on the lack of a comprehensive national freight infrastructure development and investment policy. They also assert that the United States is not improving its infrastructure fast enough to keep pace with the export demands of 21st century supply chains.

These infrastructure deficiencies pose challenges not only to individual exporters, but also to the success of the National Export Initiative, a federal initiative established by President Barack Obama in 2010 to achieve his goal of doubling U.S. exports by the end of 2014.

Regional Outreach

The advisory committee is a key piece of a larger Department effort to address the challenges of supply chain infrastructure, organized by the International Trade Administration’s Office of Service Industries, a part of ITA’s Manufacturing and Services unit. In 2010, ITA spearheaded the creation of the Competitive Supply Chain Infrastructure Initiative. This brings together federal and private-sector stakeholders to develop policies that will improve the efficiency and connectivity of U.S. supply chain infrastructure. As part of the initiative, then-Secretary of Commerce Gary Locke and Secretary of Transportation Ray LaHood signed a memorandum of understanding in April 2010.  It committed the two agencies to undertake a series of freight stakeholder outreach forums. Since September 2010, five such events have been held throughout the country: in Atlanta, Georgia; Chicago, Illinois; San Diego, California; Kansas City, Missouri; and Seattle, Washington. These have allowed the two federal agencies to widen their knowledge of each region’s top freight infrastructure issues. Additional events are planned for 2012.

How to Apply

U.S. citizens engaged in international trade or supply chain competitiveness issues are eligible to apply to be members of the new Advisory Committee on Supply Chain Competitiveness. Nominations must be received by December 14, 2011. For more information, see the notice published in the Federal Register at 76 FR 68159 or contact Richard Boll of the International Trade Administration, tel. (202) 482-1135; e-mail: richard.boll@trade.gov.

Posted in Competitiveness, International Trade Update, Manufacturing and Services, Services, Supply Chain, Trade Advisory | Tagged , | 2 Comments »

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Formation of Advisory Committee on Supply Chain Competitiveness

November 4, 2011

David Long is the Director of the Office of Service Industries, part of ITA’s Manufacturing and Services Unit.

It is my pleasure to announce the formation of the Advisory Committee on Supply Chain Competitiveness, published in the Federal Register on 3 November 2011. 

The deadline for applications is 14 December 2011. Full details appear in the Federal Register notice: 76 Fed. Reg. 68,159.

As described in the notice, the Committee will advise the Secretary of Commerce on the development and administration of programs and policies to expand the competitiveness of U.S. supply chains, including programs and policies to expand U.S. exports of goods, services, and technology related to supply chain in accordance with applicable United States regulations.

In this effort we will continue to work very closely with our colleagues at the Department of Transportation and other Federal agencies, as we have over the past three years.

This advisory group is possible due to the sustained interest and willingness to participate that has been demonstrated from the beginning in May 2009 at the joint Department of Commerce – Department of Transportation national conference, “Game Changers in the Supply Chain Infrastructure: Are We Ready to Play,” held in Washington and carried on through informal regional outreach discussions on freight policy and competitiveness issues in Atlanta, Chicago, San Diego, Seattle, Kansas City, and New Orleans.

I hope that you will consider applying for this advisory committee. For more information and details on how to apply, please consult the Federal Register notice.

Posted in Competitiveness, Interagency, International Trade Administration, Manufacturing, Supply Chain | Tagged , , | 3 Comments »

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Haiti Uses a Bit of MAGIC to Energize their Textile Industry

August 25, 2011

Amelia Baines is an intern in the Office of Public Affairs in the International Trade Administration

Despite seemingly overwhelming odds, Haiti continues its road to recovery. This struggling nation is slowly rebuilding after the devastating earthquake in 2010. While the Haitian government and economy is still on the road to recovery, Haiti’s textile and apparel industry continues to grow, even with the challenges posed by insufficient infrastructure and potential customer’ concern about the country’s recovery. As Haiti’s largest employer, continued expansion of the textile and apparel sector could infuse the economy with the growth it so desperately needs. Haiti is a prime location for business ventures, new industries, as well as exports. This small nation is surrounded by water and has a large sea port where their main exports are various types of textiles.Map of Haiti

The Haitian textile and apparel industry is the country’s largest manufacturing sector, and employs more than 28,000 workers, and apparel constitutes more than 80 percent of all Haitian exports to the United States.  In 2010, exports of Haitian apparel valued more than $550 million, and looks to be increasing in 2011. Growth in the apparel industry could be the catalyst to the Haitian economy potentially employing 150,000 people within years and bring.

The United States is Haiti’s number one trading partner and textiles accounts for more than half of all exports. Other major items exported include oil, mangoes, cocoa, and coffee. The United States receives more than 70 percent of these exports with another 9 percent going to the Dominican Republic and 3 percent to Canada. The vast majority of Haitian apparel is exported to the United States, the world’s largest apparel market.

Since 2000, the United States has implemented several trade preference programs to facilitate trade with Haiti. Under the Caribbean Basin Trade Partnership Act, Haiti HOPE and HELP, apparel from Haitian manufacturers has unprecedented duty-free access to the U.S. market.  These trade preferences have been the fuel for the growth of the Haitian economy.  In 2010, imports of Haitian apparel into the United States valued more than $500 million, representing more than 90 percent of exports to the United States. Virtually all of these imports were provided duty-free treatment under U.S. trade preference programs. Trade data indicates that imports from Haiti are increasing over last year, and there is growing interest in the apparel industry from the United States and other foreign investors. The Haitian apparel industry is poised to grow stronger than it has been in decades.

Magic Show Floor in Las VegasTo help Haitian manufacturers make the most of their opportunities with importers, retailers and brands, participation in trade events that showcase their capabilities is essential. MAGIC, held in Las Vegas just this week, is largest textile and apparel trade show held in the United States, with tens of thousands of attendees from over 80 countries, generating more than $200 million in per-day order volume. This year, with the assistance of the U.S. Agency for International Development (USAID), Haitian apparel manufacturers participated in SOURCING at MAGIC, and have the opportunity to connect with 85 percent of the top 50 retailers to build new relationships.  SOURCING at MAGIC highlighted Sourcing in the Americas, which promotes and highlights opportunities in the Western Hemisphere’s supply chain. The potential for new business from MAGIC is one that Haitian manufacturers are eager to develop.

However, SOURCING at MAGIC is not the only big news going on it Haiti today. The Haitian government is very excited about the major contraction of their first industrial park, which is due to begin in 2012. All credits go to Sae-A Trading Co. Ltd., Korea’s leading garment manufacturer, who closed a deal with Development Bank to build an industrial park in the Haiti’s North Corridor.  Representatives are anticipating that the park will create 20,000 full-time Haitian jobs in the first phase, making Sae-A’s the largest private employer in Haiti. Also generate $500 million in wages and benefits in the next ten years, with each worker earning 3-4 times more than Haiti’s current GDP. The industrial park will also include the construction of at least 5,000 new homes.  And lastly directly support the livelihoods of 100,000 to 120,000 Haitians. Now equipped with the proper tools and support Haiti will surly make and speedy and promising recovery. The United States and supporters of Haiti are eager to see what’s next in Haiti.

Posted in Supply Chain, Textiles, Trade Shows and Trade Events | Tagged , , | 7 Comments »

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U.S. Aerospace Industry is Making Sales and Promoting Bio Fuel at 2011 Paris Air Show

June 21, 2011
 

Jonathan Chesebro is an International Trade Specialist for Manufacturing and Services within the International Trade Administration. He is a member of the Aerospace Team and focuses on analysis and promotion of the aerospace industry.

This is the second of two blog articles about the Paris Air Show and the U.S. aerospace industry.

The 2011 Paris Air Show kicked off today and more than 2,100 international exhibitors are showing their wares.  When most people think of Paris they think of the Eiffel Tower, fine red wines and fashionable Europeans strolling the Champs-Elysees. When U.S. aerospace companies think of Paris, they think of the world’s oldest and largest air show.

How big is the Paris Air Show?  The 2011 Show will feature 2,000 exhibitors, 340,000 visitors, 200 international delegations, and 3,000 journalists.  According to Louis Le Portz, Chairman of the Show, “every two years, we build the equivalent of a town with 10,000 inhabitants, in order to host 300,000 visitors.”  The show will have over 140 aircraft on display and have daily flying displays.

Boeing's 747-8 at the 2011 Paris Air Show
Boeing’s 747-8 at the 2011 Paris Air Show. Photo Courtesy of Boeing

The International Trade Administration (ITA) has been supporting U.S. aerospace companies at the Paris Air Show for several decades.  This year’s ITA delegation is being led by Francisco Sánchez, Under Secretary of Commerce for International Trade and Nicole Lamb-Hale, Assistant Secretary for Manufacturing and Services.  At the show, Under Secretary Sánchez and Assistant Secretary Lamb-Hale will tell U.S. aerospace companies all about the activities surrounding the President’s National Export Initiative (NEI), and meet with foreign governments to discuss trade policy and advocate for U.S. firms seeking to make sales.  The Show attracts the participation of CEOs from the major U.S. and foreign aerospace companies as well as high-level government officials from around the world.  In addition, ITA officials will confer with U.S. Congressional and state delegations attending the trade show.

The Under Secretary and the Assistant Secretary will attend a signing ceremony on the second day of the show between Boeing and Aeroflot, Russia’s state-owned airline.  Aeroflot ordered eight Boeing 777s valued at $2.1 billion, and the sales will support approximately 14,000 jobs.  The sale is particularly notable since most of Aeroflot’s fleet consists of Airbus aircraft.  Given that Aeroflot is Russia’s largest airline by passenger volume, and this is their third time purchasing Boeing aircraft, there will likely be additional sales in the future.

While large U.S. aerospace companies such as Boeing and Lockheed Martin often garner much of the attention at the Paris Air Show, ITA is making an effort to focus on small and medium enterprises and companies from the supply chain.  Smaller companies are particularly important as they represent 91 percent of all U.S. exporters of aerospace products.  At a roundtable luncheon hosted by the Aerospace Industries Association (AIA), Sánchez and Lamb-Hale briefed twenty-one AIA member companies from the supply chain on the NEI and the NEI sector strategies, and discussed what ITA can do to help increase their export sales.

Innovations which benefit the environment are an overall theme of the show.  Alternative aviation  fuels is an emerging industry in which the United States has a lead in technology development.  To demonstrate U.S. Government support for the development of U.S. aviation alternative fuels industry, ITA has been working with the Commercial Aviation Alternative Fuels Initiative (CAAFI) and Kallman Worldwide to support the Alternative Aviation Fuels Showcase, a live press and networking event to promote aviation alternative fuels readiness and investment opportunities.  The Showcase features 16 fuel companies showcasing cutting-edge alternative jet fuel technologies.  The third day of the event has been designated “investor day” and will consist of information sessions designed to spur investment in alternative fuel production and networking opportunities for fuel companies, airline customers, and investment firms. Industry observers estimate that $95 billion in investments are required to meet U.S. bio fuel demand by 2022, creating a huge investment opportunity for domestic and foreign investors in many sectors, including aviation.

ITA support for U.S. exhibitors at the Paris Air Show would not be possible without the hard work from the global Commercial Service staff.  On Tuesday, the Under Secretary and Assistant Secretary met with global staff to thank them for their dedication and to brief them on the NEI and ITA activities.  Forty-eight U.S. companies registered for one-on-one aerospace business counseling under the US Commercial Service’s “ShowTime” program, which takes place over two days, and which offers smaller companies the opportunity to sit down with aerospace specialists from 15 countries.  Countries represented include India, Russia, Canada, Turkey, the UK, Germany, the Czech Republic, and the Ukraine.  Over 300 meeting requests have been generated by the U.S. companies to discuss market potential, business strategy and next steps for their products in these markets.

Once the excitement, deal making and press surrounding the Paris Air Show ends, companies will return home to start work to fulfill the orders they received during the grand event. The next major air show will be held at the 2012 Farnborough Air Show in the United Kingdom.  ITA will be there to help U.S. companies and ensure that the U.S. aerospace industry remains internationally competitive.

Posted in Commercial Service, Competitiveness, Exporting, International Trade Administration, Manufacturing, Manufacturing and Services, National Export Initiative, Paris Air Show, Supply Chain, Trade Shows and Trade Events | Tagged , | 7 Comments »

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U.S. Aerospace Industry Goes Big at the 2011 Paris Air Show

June 16, 2011

Jonathan Chesebro is an International Trade Specialist for Manufacturing and Services within the International Trade Administration. He is a member of the Aerospace Team and focuses on analysis and promotion of the aerospace industry.

On June 20, the Department of Commerce and the global aerospace industry will descend upon Le Bourget Exhibition Center in Paris France for the 49th annual Paris Air Show (PAS), the world’s largest aerospace trade exhibition in 2011.  Francisco Sánchez, Under Secretary of Commerce for International Trade, will lead the Department of Commerce delegation to support the President’s National Export Initiative (NEI) and the U.S. aerospace industry.  The show attracts the participation of CEOs from the major U.S. and foreign aerospace companies as well as high-level government officials from around the world. 

SALON DU BOURGET 2009 THE PARIS AIRSHOW 2009

Salon du Bourget 2009 The Paris Airshow 2009

With over 2,000 exhibitors, 340,000 visitors, and 200 international delegations in attendance, the show provides the ideal opportunity for ITA to partner with U.S. industry to support NEI goals, advocate for U.S aerospace companies bidding on contracts and hold policy discussions with foreign governments.  In addition, ITA will exchange views with Congressional and state delegations attending the trade show.

The U.S. aerospace industry is internationally competitive and is the largest in the world.  The industry includes the manufacturing of civil and military aircraft, missiles, space vehicles, and parts of all of the foregoing.  Despite the lingering effects of the global economic downturn, the industry continued to show reasonable strength in 2010, contributing $78 billion in export sales to the U.S. economy.  The industry’s positive trade balance of $44 billion is the largest trade surplus of any manufacturing industry and came from exporting 42 percent of all aerospace production and 72 percent of civil aircraft and component production.

According to a 2008 study by the U.S. Department of Commerce, aerospace supports more jobs through exports than any other industry.  The U.S. aerospace industry directly supports about 430,000 jobs and indirectly supports more than 700,000 additional jobs.  In addition, U.S. aerospace workers are well-paid, earning 47 percent more than manufacturing workers generally

Foreign firms are attracted to the U.S. aerospace market because it is the largest in the world and has a skilled workforce, extensive distribution systems, diverse products, and strong support at the local and national level for policy and promotion.  Industry estimates indicate that the annual increase in the number of large commercial airplanes added to the worldwide fleet over the next 20 years will be 3.2 percent per year for a total of 30,900 valued at $3.6 trillion at list prices.

The Commerce Department has been actively supporting U.S. aerospace industry competitiveness through a series of recent events.  In June 2010, Assistant Secretary for Manufacturing and Services Nicole Lamb-Hale delivered keynote remarks during the “ExportNow: New Markets, New Jobs for Kansas” event where more than 150 companies, learned about the economic opportunities of international trade.  U.S. aerospace companies Hawker Beechcraft Corporation and Spirit Aero Systems were among those in attendance, as well as the National Center for Aviation Training, which opened in 2010 and provides training in the areas of general aviation manufacturing and aircraft and power plant mechanics.  Wichita is a major U.S. aerospace manufacturing cluster and is home to hundreds of aerospace companies that employ over 40,000 people.

Another area where the Commerce Department is supporting U.S. aerospace industry competitiveness is in the area of foreign direct investment.  In February 2010, Under Secretary Francisco Sánchez participated in the opening ceremony for a new Embraer assembly facility in Melbourne, Florida.  Embraer is a Brazilian manufacturer of commercial, general aviation, and defense aircraft, and this new plant will employ up to 200 people from the area and represents a $50 million investment.  This significant investment supports the President’s NEI goals since some of the facilities products will be exported.  It also demonstrates the competitiveness of the U.S. aerospace industry in the global marketplace since Embraer chose to invest in the U.S. rather than in another market.

ITA has also worked with Boeing’s Supplier Management Office to organize a webinar for U.S. aerospace companies that discussed how to participate in Boeing’s global supply chain, which includes over 22,000 small, medium, and large companies.  In addition, ITA organized a webinar with Airbus procurement officials and over 200 companies where Airbus officials discussed the company’s procurement strategy and how U.S. companies can become part of its supply chain.

The U.S. aerospace industry is a significant contributor to U.S. exports, jobs and economic growth, which is why the industry is a priority sector under the NEI.  The more that U.S. aerospace companies export, the more they produce, and the more workers they need. 

Stay tuned for a second article on the Paris Air Show!

Posted in Competitiveness, Exporting, International Trade Administration, Manufacturing, Manufacturing and Services, National Export Initiative, Paris Air Show, Small Business, Supply Chain, Trade Shows and Trade Events | Tagged , , | 5 Comments »

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DOC and DOT Connected to Address Supply Chain Issues

May 13, 2009

Bruce Harsh is responsible for Commerce’s Distribution and Supply Chain unit and has been with the Department about 24 years.

America’s economy depends on the health of our country’s supply chain infrastructure. Problems with the supply chain are not readily noticeable until you don’t get the part you need to keep your supply chain in operation, or the gift you were looking for at a store during the holiday season. Not only do supply chain problems make America’s producers and consumers mad, they are clearly linked to our economic recovery and long-term economic growth.

Supply chains don’t just move products and goods, they also support jobs. One recent report by the U.S. Chamber of Commerce suggests that approximately 110 million U.S. jobs or nearly 80 percent of the entire workforce is critically dependent on our supply chain and transportation infrastructure.

This past Monday, leading supply chain stakeholders met in Washington, DC at the joint Department of Commerce-Department of Transportation conference titled, “Game Changers in the Supply Chain Infrastructure: Are We Ready to Play?” to hold a frank discussion with decision-makers on how to deal with current problems that minimize their ability get those products and services to consumers in a timely, safe, and environmentally-friendly manner and to develop a world-class network to reduce the chance of “game changers” thwarting these goals in the future.

The discussion stirred up lots of suggestions and comments. Panelists and audience participants emphasized that restoring America’s manufacturing jobs depends on not just fixing one part of the supply chain infrastructure but to look at these issues from the start at the manufacturer’s factory floor , or field, to the consumer’s house or company facility. They encouraged governmental agencies to come together to develop a holistic, comprehensive national freight policy that promotes the supply chains and assures America’s competitive advantage in the 21st century.

These suggestions were heard and many participants appreciated seeing two secretaries, Secretary of Commerce Gary Locke and Secretary of Transportation Ray LaHood, stand together to say they were going to have their agencies work together to meet these goals. Many participants also appreciated hearing leading experts share how they would minimize those “game changers” that produce constraints and chokepoints, and offer ways for the government to encourage innovative information technologies, improve security and resilience, and do all of this in an environmentally sound manner to restore America’s world-class transportation network.

Posted in Competitiveness, Interagency, Manufacturing, Manufacturing and Services, Supply Chain | Tagged , , , , , , , | 1 Comment »

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