OurFuture.org Blogs: Steven Capozzola

Blowing in the Wind: Aggressive Steps Needed for Clean Energy Manufacturing

Steven Capozzola — Mon, 02 Nov 2009 13:16:48 -0800

On Friday, the Wall Street Journal trumpeted the news that a Chinese firm will be the exclusive supplier to one of the largest wind-farm developments in the U.S. and that the developer of the project would be seeking U.S. taxpayer assistance. The 36,000-acre West Texas development announced that it would purchase 240 2.5-megawatt wind turbines from Shenyang Power Group, a five-month-old alliance with operations in China.

Question: Why aren’t American firms building this clean energy project?

President Obama has made it a priority to expand U.S. production of clean renewable energy, which has the potential to create millions of new, good -paying manufacturing jobs. Aggressive steps should be considered – including domestic sourcing requirements similar to Buy America – to ensure that these jobs are created here in the U.S. and not in countries like China that have a record of providing massive subsidies to its domestic manufacturers, including to steel and glass, in order to undercut U.S. producers.

AAM Executive Director Scott Paul has submitted a letter to President Obama emphasizing the lost opportunity for domestic U.S. manufacturing. In part, the letter notes:

I am deeply concerned that if not done properly, our efforts to rejuvenate our manufacturing base in this country could be unseated by subsidized imports from countries seeking to capitalize on new demand for clean energy products in the United States, such as wind turbines and solar panels.

I was shocked to learn of the massive 36,000-acre West Texas wind farm development that will rely solely on wind turbines manufactured in China. The developer will be seeking federal tax credits and support from the Stimulus package. According to an October 30, 2009, article in the Wall Street Journal, “the project should create 2,800 jobs – of which 15% would be in the U.S. The rest would flow to China, where Shenyang employs 800 people.”

Simply put, U.S. producers can and should be building the same turbines as the Chinese firm. The WSJ cites Elizabeth Salerno, a spokeswoman for the American Wind Energy Association, who says that in the first three quarters of 2009, there were 33% fewer announcements of U.S. turbine-factory expansions than in the comparable period of 2008.

In this case, it means another lost opportunity to revitalize U.S. manufacturing.

Someone To Craft Manufacturing Policy

Steven Capozzola — Thu, 20 Aug 2009 06:57:19 -0700

Bloomberg News reports that the Obama administration may elevate Ron Bloom, head of the government’s auto task force, to a job that would set U.S. manufacturing policy more broadly.

The U.S. desperately needs a national industrial policy, including strong enforcement of U.S. trade law. Bloom would have his work cut out for him, but it could be a helpful step by the Obama Administration toward helping the nation's manufacturers.

You Either Support America’s Manufacturers Or You Don’t

Steven Capozzola — Wed, 19 Aug 2009 13:49:50 -0700

The National Association of Manufacturers (NAM) has done it again. In contrast to their stated interest in supporting American manufacturers, they’ve criticized someone who wants to strengthen U.S. manufacturing.

In a recent item, NAM praises Dan Ikenson’s criticism of Washington Post columnist Harold Meyerson. In a column fretting about declining U.S. manufacturing, Meyerson had noted that “Since 1987, manufacturing as a share of our gross domestic product has declined 30 percent.”

Facts are stubborn things, and that 30% drop-off since 1987 happens to coincide with a decline of roughly 6 million U.S. manufacturing jobs and a loss of more than 40,000 U.S. factories in the last decade alone. However, Ikenson isn’t bothered by this decrease in manufacturing’s share of GDP. He says it’s simply a reflection of the “rapid growth of other sectors of the economy.”

Unfortunately, these “other sectors” aren’t producing new jobs either.

Citing Ikenson is a funny proposition, though. He’s the same fellow who has dismissed ongoing $700 billion annual U.S. trade deficits as not having “anything to do with trade policy.” In fact, Ikenson embraces the trade deficit because “as the U.S. economy slows down, the trade deficit is growing smaller.”

Not everyone wishes for a slower U.S. economy, however—not least the 5.3 million manufacturing workers who’ve lost their job in this decade alone.

Key CEO’s such as G.E.’s Jeffrey Immelt now suggest that dismantling U.S. manufacturing is a mistake. In a recent letter to shareholders, Immelt went so far as to say that the “popular 30-year notion that the U.S. can evolve from being a technology and manufacturing leader to a service leader is just wrong.”

Immelt’s words are echoed by Nucor Corp. CEO Dan DiMicco. In an interview with 60 Minutes, the steel manufacturing executive said he favors creating “new jobs here in America, not overseas, not in China, not in Europe.” DiMicco has some actual hands-on experience with American industry and he believes that supporting U.S. manufacturing could very well “benefit the U.S. economic engine, get it started again.”

There seems to be a problem, though, when some of the nation’s leading CEO’s say there’s a manufacturing crisis while their trade association shares a different view.

Bottom line: trade deficits matter, lost jobs matter, shuttered factories matter.

Stronger Trade Policies From Obama's Trade Representative

Steven Capozzola — Thu, 16 Jul 2009 14:00:01 -0700

In Pittsburgh today, U.S. Trade Representative Ron Kirk announced that the Obama administration will take a more aggressive approach to supporting American industrial workers through greater protection of labor rights and more aggressive monitoring of overseas trade practices.

In a speech unveiling new initiatives for trade enforcement, Ambassador Kirk promised that his office would begin “consistently monitoring” foreign trade practices and would identify “technical barriers to trade…and tackle them head on”:

"I can tell you with no reservations: the Obama Administration is both willing and able to enforce our trade agreements. American workers deserve no less…Today, on behalf of President Obama, I am here to affirm this administration’s commitment to trade enforcement."

Kirk’s speech took place at the Mon Valley Steel Works in Braddock, Pennsylvania, a plant that has been producing steel since 1875. In response to Kirk’s remarks, United Steelworkers International President Leo Gerard said that U.S. industy has ”had to bear too much of the burden of foreign unfair, predatory and protectionist trade practices. Other nations have closed their markets to our products while they have enjoyed virtually unfettered access to the U.S. market.”

China, with whom the U.S. suffered a record bilateral trade deficit that reached $268 billion in 2008, is a prime culprit. In addition to poor labor standards and lax environmental practices, China employs a number of illegal trade practices, including currency manipulation, dumping, subsidies, and non-tariff barriers. China’s ongoing predatory trade practices have cost the U.S. more than 2.3 million jobs since 2001.

Gerard has made frequent mention of China’s illegal trade practices and praised Kirk’s ”commitment to enforcing the rules and fighting for the interests of working people”:

"Enforcing the rules is an essential ingredient to ensuring that our trade policies actually work to create jobs, opportunity and economic growth. When America stands up, our trading partners open up. That’s the way it should be."

In a preview to his speech, Kirk discussed U.S. trade policy this week in an interview with Wall Street Journal reporters Bob Davis and Greg Hitt. He was straightforward in his assessment of a troubled U.S. manufacturing sector that has lost 40,000 plants in the less 10 years and seen more than 4 million factory workers lose their jobs.

Kirk noted the importance of “creating market access” for U.S. manufacturers and emphasized the importance of ”solving these challenges sooner rather than later, with a recognition that time is a commodity that a lot of our businesses don’t have right now.”

AAM Director Scott Paul, who will testify before a U.S. Senate Committe tomorrow on the urgency of rescuing U.S. manufacturing, called Kirk’s speech “refreshing.” In a statement, he noted:

"I commend Ambassador Kirk for his commitment to trade enforcement. This initiative, coupled with Secretary of Commerce Gary Locke’s comments on the unsustainable nature of our trade deficit with China, gives me hope that we will see a new direction on trade. This would be welcome news for those U.S. manufacturers and their employees who have seen a flood of imports flow into our market, often aided by subsidies and other unfair practices by their governments. The success of Ambassador Kirk’s efforts are going to be measured on a daily basis, and President Obama’s determination on the Section 421 case on imported consumer tires from China in September will be one of the first major tests."

AAM has previously emphasized the importance of “Enforcing the Rules“– with strong trade laws serving as the foundation of a sound American trade policy.

On the industrial side of things, companies like U.S. Steel have also sought stronger enforcement of U.S. trade law, especially on dumping and subsidies. In a recent comment, U.S. Steel noted that, “due to the persistence of dumping and subsidization in our sector, that remains the steel industry’s highest trade-related priority.”

Obama Makes An Important Trade Move

Steven Capozzola — Wed, 24 Jun 2009 07:22:21 -0700

The Obama administration has announced that it will bring its first trade case against China

in the World Trade Organization (WTO). The Office of the U.S. Trade Representative has launched a case against China for imposing restrictions on exports of raw materials used to make steel, aluminum and chemicals. By restricting exports, China gives its producers a price advantage over U.S manufacturers.

AAM Executive Director Scott Paul commented on the USTR for taking this important step:

“We commend Ambassador Kirk and the Obama Administration for beginning to hold China accountable for market-distorting practices that both restrict raw material exports and give an unfair advantage to Chinese manufacturers while raising costs for American manufacturers. This trade case could be the first step in a new and promising era of trade enforcement. The aggressive pursuit of this WTO case now– along with a 421 decision by President Obama in September to grant relief for tire workers and manufacturers against Chinese tire imports– is essential to leveling the playing field for American workers and businesses. Enforcing our nation’s trade laws is crucial to preserving good jobs, protecting the rule of law, and eliminating anti-competitive and market-distorting practices around the globe.”

Read: additional information on the recent Section 421 petition regarding a surge of tires from China.

Read: why it’s important to enforce U.S. trade laws.

The United States Needs a Cohesive Industrial Policy

Steven Capozzola — Tue, 26 May 2009 17:02:54 -0700

Clyde Prestowitz is absolutely right that the United States needs a cohesive, forward-looking national industrial policy. And furthermore, he is correct in pointing out the “policies of China, Japan, Korea and others to undervalue their currencies.” Such mercantilistic trade practices are an excellent reminder that other major economic powers already maintain their own inwardly focused industrial policy.

Beyond GM: Our Bankrupt Industrial Policy

In the days leading up to the America's Future NOW! conference starting June 1, we're hosting an online dialogue featuring conference speakers on the key issues they will be addressing during the conference. Join the conversation by clicking the "Discuss" link below or contribute your own post.

This becomes particularly relevant when discussing the U.S. auto sector. In fact, more than 7.2 million U.S. jobs are dependent on a healthy U.S. auto parts supply chain.

What’s needed to strengthen the automotive supply chain and revitalize American manufacturing are policies that get America back to work.

Our organization, the Alliance for American Manufacturing (AAM) recently undertook an 11-state, 34-city bus tour that culminated in a teach-in on Capitol Hill. As we took our message across the country, we found strong support for a more reciprocal trade policy and for a restructured U.S. auto industry that doesn’t simply rely on the offshoring of more production in order to meet a shrinking bottom line. Simply put, tax dollars should not be used toward the outsourcing of more U.S. production.

We must revise our approach to trade policy, including strong enforcement of existing U.S. trade law. We also need to reform our healthcare system and invest in research and innovation in order to restore American manufacturing. Anything less is simply short-sighted.

The Bus Ride To Save American Manufacturing

Steven Capozzola — Wed, 06 May 2009 11:41:54 -0700

Assembly-line workers and Michigan communities aren’t the only ones with a stake in a strong U.S. auto manufacturing industry. More than 7.2 million paychecks are tied to U.S. autos, ranging from supply manufacturing to health care, education, service, retail and other jobs.

Even individuals outside the auto industry benefit in communities where middle-class auto and supply chain workers’ income and property taxes fund public services such as teachers, firefighters and police officers.

That’s the message that workers, community leaders, elected officials, labor leaders and others will bring to an 11-state, 36-stop “Keep it Made in America” bus tour the week of May 11.

Bus tour participants will include workers from steel, iron, glass, plastics and rubber, aluminum and auto parts facilities, local auto dealers, community employers, and local leaders. The tour is sponsored by the Alliance for American Manufacturing (AAM), the Mayors and Municipalities Automotive Coalition, and the United Steelworkers (USW).

On April 30, President Barack Obama said, “If you are considering buying a car, I hope it will be an American car.” Participants in the “Keep it Made in America” tour support the president’s call and recognize the millions of jobs tied to the fate of the U.S. auto parts chain.

Auto parts suppliers drive economic growth in states all over the country. Auto parts suppliers are either the top industrial employer or among the top five industrial employers in 19 states. The “Keep it Made in America” tour will stop at six states where auto parts suppliers are the top industrial employer: Michigan, Ohio, Indiana, Kentucky, Tennessee and Missouri. The tour will also stop in Illinois, Arkansas and Alabama—where auto parts suppliers are among the top five industrial employers—and in Texas and Louisiana.

A website featuring regular updated tour footage, www.madeinamericatour.org, will be launched on May 11.

Steven Capozzola is communications director for the Alliance for American Manufacturing. The alliance is in a partnership with the Institute for America's Future to promote American manufacturing jobs.