The Midwest is No Longer the Rust Belt – It’s the “Production Belt”
This is a guest post by Mayor Bill Peduto and Mayor Virg Bernero.
Advanced manufacturing is the engine powering our nation’s economy and driving today’s innovation, which is why it is time for a national blueprint for manufacturing. We implore President-elect Trump and the 115th Congress to make a Marshall Plan-style commitment to advanced manufacturing, starting with rebuilding the infrastructure that makes American manufacturing possible.
As mayors and as co-chairs of the National League of Cities’ new Manufacturing Initiative, we recognize that this must be a bipartisan mission, as the success of our manufacturing sector will benefit communities from Connecticut to California.
We also endeavor to dispel several myths about manufacturing. First and foremost: the Midwest is no longer the “Rust Belt” of shuttered factories, but rather the “Production Belt” of advanced manufacturing that accounts for 10 percent of our workforce. In 2015, the manufacturing sector contributed $2.17 trillion to the U.S. economy, representing a growth of nearly one half-trillion dollars since 2009.
Another myth is that manufacturing is a relic, that we’ve become a “service” economy. The truth is, the manufacturing sector is more advanced and growing stronger than it has in decades, and it’s re-invigorating technological innovation and entrepreneurship.
America is home to the world’s most productive workers, with manufacturers accounting for 75 percent of our nation’s R&D and 90 percent of our patents. The “magic of manufacturing” is the spinoff activity that supports transportation, supply chains and more. For every $1.00 spent in manufacturing, another $1.81 is added to our economy – the highest multiplier effect of any economic sector. And, despite the myth that manufacturing jobs don’t pay well, the truth is that the compensation of the typical U.S. manufacturing worker is $81,289 annually, including pay and benefits.
Today’s manufacturing is a wholesale improvement over our grandparents’ dirty, monotonous production jobs. Today’s jobs offer a creative opportunity to innovate, using state-of-the-art equipment in diverse fields like aerospace, semi-conduction, robotics, biotechnology and engineering. Many manufacturers even offer a “learn and earn” model of apprenticeship training that pays workers to learn their trade. Yet these advanced jobs require a talent pipeline to connect them with skilled workers. Experts project that the U.S. will have over two million jobs go unfilled due to the skills gap.
The fact is, American manufacturing is also a matter of national security. Retired U.S. Army Brigadier General John Adams wrote a report detailing the ways domestic manufacturing keeps us safe. A strong domestic manufacturing base supports the Arsenal of Democracy.
Advanced manufacturing can also pave the way for a “green” industrial revolution that reduces our carbon footprint – not only by producing alternative energy products like solar panels, wind turbines and fuel cells, but also by standardizing sustainable production methods for everyday commodities.
There are several national policies that can help shape a national blueprint, including Senator Kirsten Gillibrand’s efforts to codify the Investing in Manufacturing Communities Partnership – which has already invested $23 million to support 49 IMCP projects across 26 states. These projects will create or save more than 1,080 jobs, and generate nearly $855 million in private investment. We also support resurrecting the COMPETE Act (S. 2715) to incentivize more research and development, because R&D tax credits are really job credits. Another important win would be establishing a National Infrastructure Bank so we could fund economically-viable infrastructure projects nationwide and incentivize private investment.
The only way to reverse the overly-fragmented model of manufacturing is to establish “production ecosystems” that connect Main Street manufacturers, universities, and inventors into local networks. By strengthening these collaborations with coordinated local, state and federal policies, we can create a lasting national blueprint for advanced manufacturing.
In the international marketplace, we have an unprecedented opportunity to produce the most competitive brand of manufactured goods – those marked proudly as “Made in America.” Let’s get to work to make it happen.
About the authors: Pittsburgh, Pennsylvania, Mayor Bill Peduto and Lansing, Michigan, Mayor Virg Bernero are co-chairs of the National League of Cities Manufacturing Initiative.