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112th Congress Rept. 112-659
HOUSE OF REPRESENTATIVES
2d Session Part 1
AMERICAN MANUFACTURING COMPETITIVENESS ACT OF 2012
September 10, 2012.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
Mr. Upton, from the Committee on Energy and Commerce, submitted the
R E P O R T
[To accompany H.R. 5865]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 5865) to promote the growth and competitiveness
of American manufacturing, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
Purpose and Summary.............................................. 5
Background and Need for Legislation.............................. 6
Committee Consideration.......................................... 8
Committee Votes.................................................. 8
Committee Oversight Findings..................................... 8
Statement of General Performance Goals and Objectives............ 8
New Budget Authority, Entitlement Authority, and Tax Expenditures 9
Earmarks, Tax Benefits, and Tariff Benefits...................... 9
Committee Cost Estimate.......................................... 9
Congressional Budget Office Estimate............................. 9
Federal Mandates Statement....................................... 10
Advisory Committee Statement..................................... 10
Applicability to Legislative Branch.............................. 10
Section-by-Section Analysis of the Legislation................... 10
Changes in Existing Law Made by the Bill, as Reported............ 12
Additional Views................................................. 13
The amendment is as follows:
Strike all after the enacting clause and insert the
SECTION 1. SHORT TITLE.
This Act may be cited as the ``American Manufacturing Competitiveness
Act of 2012''.
SEC. 2. NATIONAL MANUFACTURING COMPETITIVENESS STRATEGY.
Not later than June 1, 2014, and June 1, 2018, the President shall
submit to Congress, and publish on a public website, a strategy to
promote growth, sustainability, and competitiveness in the Nation's
manufacturing sector, create well-paid, stable jobs, enable innovation
and investment, and support national security.
SEC. 3. MANUFACTURING COMPETITIVENESS BOARD.
(a) In General.--On the first day of each of the two Presidential
terms following the date of enactment of this Act, there is established
within the Department of Commerce an American Manufacturing
(b) Members.--Members of the Board shall be appointed as follows:
(1) Public sector members.--The President shall appoint to
(A) the Secretary of Commerce;
(B) Governors of two States, from different political
parties, after consulting with the National Governors
(C) two other members who are current or former
officials of the executive branch of government.
(2) Private sector members.--
(A) Criteria.--Ten individuals from the private
sector shall be appointed to the Board in accordance
with subparagraph (B) from among individuals with
experience in the areas of--
(i) managing manufacturing companies,
including businesses with fewer than 100
(ii) managing supply chain providers;
(iii) managing labor organizations;
(iv) workforce development;
(vi) analyzing manufacturing policy and
(vii) conducting manufacturing-related
research and development; and
(viii) the defense industrial base.
(B) Appointment.--The Speaker of the House of
Representatives and the majority leader of the Senate
shall each appoint 3 members to the Board. The minority
leader of the House of Representatives and the minority
leader of the Senate shall each appoint 2 members to
(c) Termination.--The Board shall terminate 60 days after submitting
its final report pursuant to section 4(c)(3).
(d) Co-chairmen.--The co-chairmen of the Board shall be the Secretary
of Commerce (or the designee of the Secretary) and a member elected by
the private sector members of the Board appointed pursuant to
(e) Subgroups.--The Board may convene subgroups to address particular
industries, policy topics, or other matters and to take advantage of
the expertise of other individuals and entities in matters to be
addressed by the Board. Such subgroups may include members representing
any of the following:
(1) Other Federal agencies, as the co-chairmen determine
(2) State, tribal, and local governments.
(3) The private sector.
(f) Quorum.--Ten members of the Board shall constitute a quorum for
the transaction of business but a lesser number may hold hearings with
the agreement of the co-chairmen.
(g) Meetings and Hearings.--
(1) Timing and frequency of meetings.--The Board shall meet
at the call of the co-chairmen, and not fewer than 2 times.
(2) Public hearings required.--The Board shall convene public
hearings to solicit views on the Nation's manufacturing sector
and recommendations for the national manufacturing
(3) Locations of public hearings.--The locations of public
hearings convened under paragraph (2) shall ensure the
inclusion of multiple regions and industries of the
(h) Application of Federal Advisory Committee Act.--The Federal
Advisory Committee Act (5 U.S.C. App.), other than section 14 of such
Act, shall apply to the Board, including any subgroups established
pursuant to subsection (e).
SEC. 4. DUTIES OF THE BOARD.
(a) In General.--The Board shall--
(1) advise the President on issues affecting the Nation's
(2) conduct a comprehensive analysis in accordance with
subsection (b); and
(3) develop a national manufacturing competitiveness strategy
in accordance with subsection (c).
(b) Comprehensive Analysis.--In developing a national manufacturing
competitiveness strategy under subsection (c), the Board shall conduct
a comprehensive analysis of the Nation's manufacturing sector, taking
into consideration analyses, data, and other information previously
compiled, as well as relevant reports, plans, or recommendations issued
by Federal agencies, Federal advisory boards, and the private sector.
Such analysis shall, to the extent feasible, address--
(1) the value and role of manufacturing in the Nation's
economy, security, and global leadership;
(2) the current domestic and international environment for
the Nation's manufacturing sector, and any subsector identified
by the Board as warranting special study for competitiveness or
for comparison purposes;
(3) Federal, State, tribal, and local policies, programs, and
conditions that affect manufacturing;
(4) a summary of the manufacturing policies and strategies of
the Nation's 10 largest trading partners, to the extent known;
(5) new, emerging, or evolving markets, technologies, and
products for which the Nation's manufacturers could compete;
(6) the identification of redundant or ineffective government
programs related to manufacturing, as well as any programs that
have improved manufacturing competitiveness;
(7) the short- and long-term forecasts for the Nation's
manufacturing sector, and forecasts of expected national and
international trends and factors likely to affect such sector
in the future;
(8) the manner in which Federal agencies share information
and views with respect to the effects of proposed or active
regulations or other executive actions on the Nation's
manufacturing sector and its workforce;
(9) the recommendations of the Department of Commerce
Manufacturing Council, whether such recommendations have been
implemented, and the effect of such recommendations; and
(10) any other matters affecting the growth, stability, and
sustainability of the Nation's manufacturing sector or the
competitiveness of the Nation's manufacturing environment,
particularly relative to that of other nations, including--
(A) workforce skills, gaps, and development;
(B) productivity and the extent to which national
economic statistics related to manufacturing accurately
measure manufacturing output and productivity growth;
(C) trade policy and balance;
(D) energy policy, forecasts, and developments;
(E) expenditures on basic and applied research
related to manufacturing technology;
(F) programs to help small and mid-sized
manufacturers become more competitive;
(G) the impact of Federal statutes and regulations;
(H) the impact of domestic and international monetary
(I) the impact of taxation;
(J) financing and investment, including challenges
associated with commercialization and scaling up of
(K) research and development;
(L) job creation and employment disparities;
(M) levels of domestic production;
(N) adequacy of the industrial base for maintaining
(O) protections for intellectual property and the
related policies, procedures, and law on technology
(P) customs enforcement and counterfeiting.
(c) National Manufacturing Competitiveness Strategy.--
(1) Development.--The Board shall develop a national
manufacturing competitiveness strategy, based on--
(A) the results of the comprehensive analysis
conducted under subsection (b); and
(B) any other information, studies, or perspectives
that the Board determines to be appropriate.
(2) Goals and recommendations.--
(A) Goals.--The Board shall include in the national
manufacturing competitiveness strategy short- and long-
term goals for improving the competitiveness conditions
of the Nation's manufacturing environment, taking into
account the matters addressed in the comprehensive
analysis conducted under subsection (b).
(B) Recommendations.--The Board shall include in the
national manufacturing competitiveness strategy
recommendations for achieving the goals provided under
subparagraph (A). Such recommendations may propose--
(i) actions to improve manufacturing
competitiveness to be taken by the President,
Congress, State and local governments, and the
(ii) actions to improve government policies
and coordination among entities developing such
(iii) the consolidation or elimination of
(iv) actions to improve government
interaction with the manufacturing sector and
communication regarding the effects of proposed
or active government regulations or other
executive actions on the manufacturing sector
and its workforce;
(v) the reform or elimination of regulations
that place the United States manufacturing
sector at a disadvantage relative to other
(vi) actions to reduce business uncertainty,
including, where appropriate, finalization of
regulations applicable to manufacturers.
(A) Draft.--Not later than 150 days before the date
on which the President is required to submit to
Congress a report containing a national manufacturing
competitiveness strategy under section 2, the Board
shall publish in the Federal Register and on a public
website a draft report containing a national
manufacturing competitiveness strategy. At the same
time, the Board shall make available to the public the
comprehensive analysis required by subsection (b) and
any underlying data or materials necessary to an
understanding of the conclusions reached.
(B) Public comment; review and revision.--A draft
report published under subparagraph (A) shall remain
available for public comment for a period of not less
than 30 days from the date of publication. The Board
shall review any comments received regarding such draft
report and may revise the draft report based upon those
(C) Publication.--Not later than 60 days before the
date on which the President is required to submit to
Congress a report containing a national manufacturing
competitiveness strategy under section 2, the Board
shall submit to the President for review and revision a
final report containing a national manufacturing
competitiveness strategy, and shall publish such final
report on a public website.
(D) Contents of report.--The final report submitted
under subparagraph (C) shall, to the extent feasible,
(i) an estimate of the short- and long-term
Federal Government outlays and revenue changes
necessary to implement the national
manufacturing competitiveness strategy and an
estimate of savings that may be derived from
implementation of the national manufacturing
(ii) a detailed explanation of the methods
and analysis used to determine the estimates
included under clause (i);
(iii) recommendations regarding how to pay
for the cost of implementation estimated under
clause (i); and
(iv) a plan for how the recommendations
included in the report will be implemented and
who is or should be responsible for the
(d) Consultation; Nonduplication of Efforts.--The Board shall consult
with and not duplicate the efforts of the Defense Science Board, the
President's Council of Advisors on Science and Technology, the
Manufacturing Council established by the Department of Commerce, the
Economic Security Commission, the Labor Advisory Committee for Trade
Negotiations and Trade Policy, and other relevant governmental entities
conducting any activities related to manufacturing.
SEC. 5. REQUIREMENT TO CONSIDER NATIONAL MANUFACTURING COMPETITIVENESS
STRATEGY IN BUDGET.
In preparing the budget for each of the fiscal years from fiscal year
2016 through fiscal year 2022 under section 1105(a) of title 31, United
States Code, the President shall include information regarding the
consistency of the budget with the goals and recommendations included
in the national manufacturing competitiveness strategy.
SEC. 6. DEFINITIONS.
In this Act:
(1) Board.--The term ``Board'' means--
(A) during the first Presidential term that begins
after the date of enactment of this Act, the American
Manufacturing Competitiveness Board established by
section 3(a) on the first day of such term; and
(B) during the second Presidential term that begins
after the date of enactment of this Act, the American
Manufacturing Competitiveness Board established by
section 3(a) on the first day of such term.
(2) Private sector.--The term ``private sector'' includes
labor, industry, industry associations, academia, universities,
trade associations, nonprofit organizations, and other
appropriate nongovernmental groups.
(3) State.--The term ``State'' means each State of the United
States, the District of Columbia, and each commonwealth,
territory, or possession of the United States.
PURPOSE AND SUMMARY
The purpose of H.R. 5865 is to require development of a
manufacturing strategy that provides recommendations to
Congress on ways to improve the competitiveness of the U.S.
manufacturing environment. Policies that benefit the
environment for the manufacturing sector also are likely to
benefit other sectors of the economy and result in greater
benefits to the economy as a whole. H.R. 5865, the ``American
Manufacturing Competitiveness Act of 2012,'' was introduced by
Rep. Daniel Lipinski (D-IL) and Rep. Adam Kinzinger (R-IL) to
require the development of a National Manufacturing Strategy
report in each of the two Presidential terms following the date
The Act provides for a 15 member American Manufacturing
Competitiveness Board comprised of 5 public and 10 private
sector members. The Board's duties are to conduct a
comprehensive analysis of the manufacturing sector and to
develop a manufacturing strategy to be delivered to the
The President will have an opportunity to review and revise
each report before sending it to Congress no later than June 1,
2014, and June 1, 2018. The President also must describe in the
annual Budget how the Budget is consistent with the goals and
recommendations of the national manufacturing strategy for
fiscal years 2016 through fiscal year 2022.
BACKGROUND AND NEED FOR LEGISLATION
Manufacturing is a vital part of the United States economy.
The U.S. manufacturing sector currently employs nearly 12
million people,\1\ with manufacturing of durable goods
contributing the largest portion of GDP growth for 2011.\2\
Manufacturers contributed $1.8 trillion to the U.S. economy in
2010,\3\ and provided almost 60 percent of all U.S. exports.\4\
\1\Bureau of Labor Statistics, The Employment Situation--May 2012
(online at http://www.bls.gov/news.release/pdf/empsit.pdf) (accessed
June 16, 2012).
\2\ABureau of Economic Analysis, Annual Industry Accounts: Advance
Statistics on GDP by Industry for 2011 (online at http://www.bea.gov/
\10\Michael E. Porter and Jan W. Rivkin, Harvard Business School,
Prosperity at Risk, Findings of Harvard Business School's Survey on
U.S. Competitiveness (January 2012) .
Manufacturing supports not only the U.S. economy, but also
the Nation's security. As domestic manufacturing declines and
defense contractors choose to relocate to other countries, the
United States ``depends on other nations, who are not
necessarily our friends, for strategic materials and
\11\National Defense Industrial Association, Manufacturing
Division, Maintaining a Viable Defense Industrial Base (Aug. 1, 2008).
There are significant economic benefits to a strong
manufacturing sector. Sixty percent of our exports are
manufactured goods and maintaining or increasing that number
requires an environment conducive to manufacturing. Finding
useful and workable solutions to the problems facing U.S.
manufacturing requires a coordinated effort by the government
and the private sector. There are numerous studies, reports,
and recommendations on improving manufacturing, or specific
sectors of manufacturing, that have been developed by
government and non-government entities. For example, the
Department of Commerce developed a manufacturing strategy
report in 2004 and is currently updating that work. What is
needed now is to pull these disparate strands together into a
coherent plan for legislative action. Crafting a national
manufacturing strategy may help enable the United States to
remain competitive by unifying efforts among and across
agencies to support policies conducive to domestic growth in
The Subcommittee on Commerce, Manufacturing and Trade held
a hearing on June 1, 2012. The Subcommittee received testimony
from the Honorable Daniel Lipinski, Member of Congress; Mr.
Zachary Mottl, Atlas Tool & Die Works; Mr. Mark Gordon,
National Defense Industry Association; Mr. Phillip Singerman,
Ph.D, National Institute of Standards and Technology, U.S.
Department of Commerce; and Ms. Deborah Wince-Smith, Council on
On June 7, 2012, the Subcommittee on Commerce,
Manufacturing, and Trade met in open markup session and
approved H.R. 5865 for full Committee consideration, as
amended, by a voice vote. On June 19 and 20, 2012, the
Committee on Energy and Commerce met in open markup session and
ordered H.R. 5865 reported, as amended, by a voice vote.
There were no recorded votes taken in connection with
ordering H.R. 5865 reported. A motion by Mr. Whitfield to order
H.R. 5865 reported to the House, as amended, was agreed to by a
COMMITTEE OVERSIGHT FINDINGS
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee held a legislative and
oversight hearing and made findings that are reflected in this
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
The goal of H.R. 5865 is to develop a manufacturing
strategy that provides recommendations to Congress on ways to
improve the competitiveness of the U.S. manufacturing
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
5865, the ``American Manufacturing Competitiveness Act of
2012,'' would result in no new or increased budget authority,
entitlement authority, or tax expenditures or revenues.
EARMARKS, TAX BENEFITS, AND TARIFF BENEFITS
In compliance with clause 9(e), 9(f), and 9(g) of rule XXI,
the committee finds that H.R. 5852 contains no earmarks,
limited tax benefits, or limited tariff benefits.
COMMITTEE COST ESTIMATE
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
June 25, 2012.
Hon. Fred Upton,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5865, the American
Manufacturing Competitiveness Act of 2012.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susan Willie.
Douglas W. Elmendorf.
H.R. 5865--American Manufacturing Competitiveness Act of 2012
Summary: H.R. 5865 would establish the American
Manufacturing Competitiveness Board within the Department of
Commerce to advise the President on issues affecting
manufacturing in the United States. The board would be required
to perform a comprehensive analysis of the nation's
manufacturing sector and, using results from the analysis,
develop a strategy to improve the competitiveness of domestic
manufacturing efforts. Results from the analysis and strategy
would be available to the President to comply with the bill's
requirement to publish a strategy in 2014 and again in 2018 to
promote growth in the nation's manufacturing sector.
Based on information from the Department of Commerce, CBO
estimates that implementing H.R. 5865 would cost about $15
million over the 2013-2017 period, assuming appropriation of
the necessary amounts. Enacting H.R. 5865 would not affect
direct spending or revenues; therefore, pay-as-you-go
procedures do not apply.
H.R. 5865 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 5865 is shown in the following table.
The costs of this legislation fall within budget function 370
(commerce and housing credit).
By fiscal year, in millions of dollars--
2013 2014 2015 2016 2017 2013-2017
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level........................... 4 3 2 2 5 16
Estimated Outlays....................................... 3 3 3 2 4 15
Basis of estimate: For this estimate, CBO assumes that the
bill will be enacted near the end of 2012, that the necessary
amounts will be appropriated each year, and that spending will
follow historical patterns for similar activities.
H.R. 5865 would establish the 15-member American
Manufacturing Competitiveness Board to analyze the nation's
manufacturing sector, and using results from the analysis, set
short- and long-term goals for improving the sector's
competitiveness. The board would be appointed at the beginning
of the next presidential term, terminate after completing its
first report in 2014, and would be re-established at the
beginning of the following presidential term in 2017 to update
the report's findings.
In preparing the analysis, the board would be required to
study, among other things:
The current environment for manufacturing,
including government policies--at the international,
federal, state, tribal, and local levels--that affect
Forecasts, both short- and long-term, for
domestic and international trends in manufacturing;
Actions by federal agencies that affect
Factors that affect the growth and stability
of the sector such as workforce skills; trade, energy,
and monetary policies; research and development; and
protections for intellectual property.
Using results from the analysis, the board would be
required to develop a strategy to improve the competitiveness
of the nation's manufacturing sector. The bill would require
the strategy to include recommendations to eliminate or
consolidate government programs, improve interaction between
the government and the manufacturing sector, and amend any
regulations that put the industry at a competitive disadvantage
in international markets.
The final report also would be required to include a plan
to implement the strategy, including an estimate of the cost to
implement it as well as recommendations for ways to cover those
Based on information from the Department of Commerce, CBO
estimates that implementing H.R. 5865 would cost $15 million
over the 2013-2017 period, assuming appropriation of the
necessary amounts. This amount includes staff support for board
activities, data gathering and analysis, and report
preparation. Though the board would be terminated shortly after
submitting its final report in 2014, CBO expects that efforts
would continue within the Department of Commerce to collect
data and information that would be available to the board when
it would be re-established in 2017.
Pay-As-You-Go Considerations: None.
Intergovernmental and private-sector impact: H.R. 5865
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
Estimate prepared by: Federal Costs: Susan Willie; Impact
on State, Local, and Tribal Governments: Elizabeth Cove
Delisle; Impact on the Private Sector: Paige Piper/Bach.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 2. Requires two Presidential reports to Congress
outlining a strategy for promoting growth, sustainability, and
competitiveness in the manufacturing sector. The reports are
due June 1, 2014, and June 1, 2018.
Section 3. Establishes, within the Department of Commerce,
the American Manufacturing Competitiveness Board on the first
day of the Presidential term following the date of enactment
(2013), and then again in the next Presidential term (2017).
The Board will consist of 15 members, five from the public
sector (including two Governors) and ten from the private
sector. The private sector board members must have
manufacturing-related (including experience with companies with
less than 100 employees) or other relevant experience. The five
public appointments are made by the President and must include
the Secretary of Commerce, while the ten private-sector members
are appointed by the House and Senate in a 3-2 ratio, majority
to minority, for each chamber. The Board would be co-chaired by
the Secretary of Commerce and a member elected by the private-
sector Board members. Each Board terminates 60 days after
submitting its final report to the President as required by
Section 4, and therefore will not require any additional work
to be performed by the Board, the Commerce Department, or its
staff until the next Board is appointed. The Board may convene
subgroups to address particular industries, topics, or other
matters and to take advantage of the expertise of other
individuals and entities in matters to be addressed by the
Board. Section 3 establishes the quorum and minimum meeting
requirements and provides flexibility for the Board to hold
hearings with less than a quorum pursuant to agreement of the
Section 4. Establishes the duties of the Board as follows:
(1) advise the President on manufacturing issues; (2) conduct a
rigorous analysis of the manufacturing sector; and (3) develop
a national competitiveness strategy, which will be made
available for public comment and submitted to the President.
The Board will conduct a comprehensive analysis on the
manufacturing sector, taking into consideration previously
compiled data, analyses, reports, plans or recommendations. The
Board's analysis will address a number of enumerated factors,
to the extent feasible. The Committee understands the time and
resource constraints of the Board and therefore intends they
rely heavily on the large corpus of research and data already
completed for topics they determine should be addressed. The
Board then will develop and publish for public comment a draft
manufacturing strategy based on its analysis and any other
information the Board determines is appropriate. The Board also
must publish its analysis and underlying data used to support
its conclusions. The competitiveness strategy will include
short-term and long-term goals for improving the
competitiveness of the U.S. manufacturing environment, and
recommendations for action to accomplish the goals. Not later
than April 1, 2014, and April 1, 2018, each Board must submit
to the President for review and revision a final report
containing a national manufacturing strategy and publish it on
a public website. The President will then send a manufacturing
strategy to Congress as required by section 2 of the Act.
To avoid duplication of efforts, the Board must consult
with a number of specified entities (including the Defense
Science Board, the President's Council of Advisors on Science
and Technology, the Manufacturing Council established by the
Department of Commerce, the Economic Security Commission, and
the Labor Advisory Committee for Trade Negotiations and Trade
Policy) and may consult with any other relevant governmental
body or the private sector. The Committee intends the
consultation to further reduce potential burdens on the Board
and its workload.
Section 5. Requires the President to include in each fiscal
year's Budget request information regarding the consistency of
the Budget with the goals and recommendations included in the
national manufacturing strategy. This requirement begins with
the fiscal year 2016 Budget and ends with the fiscal year 2022
Section 6. Defines certain terms, including ``Board'',
``private sector'', and ``State''.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
As President Obama said in his 2011 State of the Union
address, we must out-innovate, out-educate, and out-build our
competitors.\1\ And for the U.S. to continue to lead in
innovation, we must maintain a strong manufacturing sector.
Currently, about 70% of research and development and 90% of
patents in this country are connected to manufacturing.\2\ As a
professor at Harvard Business School has explained, we cannot
maintain a strong economy by doing high-tech research at home
and allowing manufacturing to continue to move offshore. We
need ``two-way feedback.''\3\
\1\The White House, Remarks by the President in State of Union
Address (Jan. 25, 2011) (online at www.whitehouse.gov/the-press-office/
\2\Department of Commerce, R&D;, Patents are Key Manufacturing
Drivers Chief Economist Mark Doms Tells National Association for
Business Economics 2012 Conference (May 31, 2012) (online at
\3\Gary P. Pisano, The U.S. Is Outsourcing Away Its Competitive
Edge (Oct. 1, 2009) (online at blogs.hbr.org/hbr/restoring-american-
Our goal is to have good jobs across all segments of the
economy, but manufacturing jobs in particular have contributed
to maintaining a strong middle class. These jobs have good pay
and tend to be stable. In addition, manufacturing brings with
it strong spillover benefits for regional and local economies.
Once there is a manufacturer in town, suppliers move in, along
with restaurants, retailers, and service providers.
Manufacturing also has been a vital part of the economic
recovery from the Great Recession, with the manufacturing
sector having expanded for 34 consecutive months through May
\4\Institute for Supply Management, May 2012 Manufacturing ISM
Report on Business (June 1, 2012) (online at www.ism.ws/news/
The Obama Administration rightly has put an intense focus
on revitalizing and growing the manufacturing sector and has
launched a number of initiatives to do this.
H.R. 5865 will help the federal government continue its
current focus on manufacturing. H.R. 5865 ensures there are
federal policies that promote the competitiveness of U.S.
manufacturing and do so in an organized and strategic manner.
This bill reflects a desire to see manufacturing jobs and our
entire economy to continue to grow.
While sources cited in the majority views may disagree, the
goal of this bill is not to attack important health and safety
regulatory achievements or the civil justice system.
Henry A. Waxman
G. K. Butterfield.