Obama Visits Plant Where Stimulus Saved Jobs

President Barack Obama told manufacturers in Wisconsin on Monday that his Recovery Act helped save some of their jobs, and will allow their company to expand in the months to come.

At ZBB Energy Corporation in Menomonee Falls, the President reiterated his commitment to lift the nation’s manufacturing industry out of the doldrums ushered in by the recession.

“Few parts of the economy were hit harder than manufacturing,” said Obama. “But what’s clear is that we are heading in the right direction.”

Indeed, unlike most of the private sector, manufacturing has slowly rebounded over the past eight months. 36,000 manufacturing jobs were added to the economy last month, bringing the total number of jobs added to 183,000 since last December.

The President’s trip to Wisconsin today, along with stops later on this week in Ohio, Washington and California, highlight his administration’s attempt to showcase the effect the stimulus package has had on the economy. It also coincides with Democrats’ efforts to promote their “Make it in America” strategy during the congressional recess.

ZBB, which produces advanced batteries for the purpose of renewable energy storage, plans to use $1.3 million worth of stimulus funds to add 80 new jobs in the state of Wisconsin.

“When new technologies are developed with the potential to unleash new businesses, and even whole new industries, I want those products to be made in America,” said Obama. “That’s how we’ll create jobs. That’s how we’ll strengthen this economy.”

Education Initiatives Will Spur Manufacturing, Says Expert

By Rob Sanna - Talk Radio News Service

Training the American manufacturing workforce to use new technologies will not only increase worker productivity, but will also increase wages and create growth, said expert William Strauss on Thursday.

Strauss, a senior economist for the Federal Reserve Bank of Chicago, told members of a Senate Banking, Housing, and Urban Affairs subcommittee that education is the key to manufacturing growth.

“Education needs to be a primary focus for our workforce. Certainly in manufacturing, I hear from contacts that they find it a challenge to find qualified workers who have the skills to operate in a computerized sector,” said Strauss. “Whatever we can do with regard to job force training, with regard to apprenticeship programs, those certainly are key.”

According to Strauss, computerization will greatly increase productivity nationwide, especially in fields like aviation manufacturing, in which America leads the way. Countries such as Germany, France, Japan and China are traning its workers to adapt to the digital age, he said, and have gained an edge in the production and use of high speed rail as a result.

Strauss also emphasized that educational initiatives could lead to increases in wages for American workers. College degrees, associate degrees, and even technical training can lead to advancement in wages as productivity continues to increase.

Boehner Mocks Democrats' Manufacturing Agenda

House Minority Leader John Boehner (R-Ohio) took issue with Congressional Democrats’ recent attempts to pass legislation aimed at spurring America’s troubled manufacturing industry, casting the move as too little too late.

“Finally after 18 months of moving their job killing policies now they want to go out and talk about their manufacturing agenda,” Boehner said during his weekly press conference Thursday. “Well, if they are serious about their manufacturing agenda, why do we want to raise taxes on manufactures when we want their jobs to remain in America?”

The “Make It In America” strategy currently being pursued by House Democrats includes legislation that would require a four-year analysis of the manufacturing sector, the expansion of clean technology production and tackling the trade deficit.

Boehner characterized the move as a sign of desperation.

“As we head into August, a time when Congress normally talks about its accomplishments, the Democrats are divided, they are distracted and frankly, they are … desperate,” Boehner said.

Boehner declined to discuss reports regarding his campaign to become House Speaker following the 2010 mid-term elections.

Manufacturing Industry Needs Credit Now Say Experts

By Leah Valencia, University of New Mexico/Talk Radio News Service

Several industry experts called on Congress to help restore credit to manufacturers in a Senate Banking, Housing and Urban Affairs Committee hearing Friday.

A few who testified said that current credit limits typically do not cover the amount that suppliers need to invest in employees, equipment and raw materials.

“In our industry, manufacturers are expected to deliver products just in time. Any delays can cause significant disruption in our nation's critical supply chain...thus stifling economic growth and risking national security,” said Robert Kiener, Director of Member Outreach at the Precision Machined Products Association. “If our customers can not acquire the products they need, due to the credit crisis, they will source from overseas and these lost jobs will never come back to the United States.”

The testimonies focused on the need for long-term programs that support manufacturing, technology and innovation initiatives in the U.S. The experts outlined the increased problems manufacturers have had in gaining access to greater capital during the current economic recession.

“The bank[s] need assurances that the federal regulators will not come down on them for making sound lending decisions, a return to the sound lending decisions will allow for available and affordable credit for manufacturers,” Kiener said. “I think it is crucial to the recovery of the economy to allow renewed capital expenditures... and in the end, increase hiring and employment to get things back and rolling.”

A Senate subcommittee will submit questions to the U.S. Department of Treasury and U.S. Department of Commerce in a continued effort to evaluate and resolve this issue.

Unemployment high in March, Officials say

By Michael Ruhl, University of New Mexico – Talk Radio News Service

A day after President Barack Obama's budget was passed by a Congress boiling with partisanship, the Bureau of Labor Statistics released a report showing unemployment at its highest since 1983. There are now 13.2 million Americans out of work.

The pouring rain in Washington mirrored the sobered mood in the room, as the Joint Economic Committee heard the testimony of Keith Hall, the Commissioner of the Bureau of Labor Statistics.

March was one of the worst Months on record for unemployment, and when asked outright, Hall told the committee that there were no "bright spots" in the report.

National unemployment climbed to 8.5 percent in March, rising from the level of 8.1 percent in February and 7.6 percent in January.

Hall said that two-thirds of the job loss has happened in the past 5 months. Every state is in recession for the first time in 30 years, according to Carolyn Maloney (D-NY).

Official unemployment numbers do not encompass underemployed Americans or those who have officially left the workforce. It is reported that 16 percent of the country is out of work or underemployed. One in four of those unemployed have been out of work for more than six months, and of those, half have been looking for work for over a year, Hall said.

Maloney highlighted that last month, 8,000 jobs were lost in the news publishing industry. Those losses total 70,000 job cuts since Dec. 2007, Hall said, adding that most job losses have been see in the manufacturing, construction, and temporary services industries. The only area to see any growth in March was the Healthcare industry, Hall said.

Ranking Committee member Senator Sam Brownback (R-KA) noted that the impact of the ongoing recession was not severe for almost a year after it began in December 2007. Brownback attributed recent dramatic jumps in job losses over the past five months to the lockup in the credit markets and the government bailouts that followed.

The Federal Reserve believes that unemployment will peak at 8.8 percent this year, but Ranking House Committee Member Kevin Brady (R-TX) said that the unemployment rate is already higher than what the administration anticipated for 2009. Brady said that the Obama Administration's "optimistic assumptions" would not get the country out of its current mess.

President Obama’s Economic Stimulus package was passed by Congress earlier this year, and saw an unprecedented amount of money placed into public works meant to put people back to work. Obama has pledged the legislation will save or create three to four million jobs over the next two years.

Read the report here: Bureau of Labor Statistics Report