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Blog Category: IMCP

Investing in Manufacturing Communities Partnership: Leveraging Strengths for a Stronger Future

Charles Shoopman, Assistant Vice President, UT Institute for Public Service

Guest blog post by Charles Shoopman, Assistant Vice President, UT Institute for Public Service

On June 23, 2014 I received a letter officially designating the 69-county, four-state DRIVE! for the Future region as one of the nation’s first 12 Investing in Manufacturing Communities Partnership (IMCP) communities. Serving as the primary contact person for a public-private partnership effort involving more than 15 organizations, I could hardly wait to send copies of the letter to my colleagues.  After all, we had invested hour after hour in crafting consensus around a shared work agenda and at least grudging acceptance of a narrative describing that agenda in the context of a 35-page proposal (plus appendices!) that was due in Washington, D.C. by April 14, 2014.

Receiving notification of the designation was exciting, but was simply the beginning of a non-stop effort to actually deploy the ideas we had so painstakingly assembled during the January – April proposal development period. In short, receiving the designation didn’t complete anything; we simply were given an opportunity to go do what it was we wrote we wanted to do!

Granted, after investing the energy and effort to develop the partnerships, shared vision, defined work agenda, performance metrics, and a governance structure our partners could agree with, we much preferred to have the IMCP designation. However, our partnership noted that working together to build the proposal we had developed a fact-based plan that needed to be deployed within our region, whether or not we secured the designation as an IMCP community. So, at a minimum, the IMCP solicitation process had motivated us to assemble our team, affirm our shared interests and aims, and develop a written plan to actually accomplish a work agenda that will help citizens throughout our community improve their quality of life and build a more sustainable future.

Since receiving our designation we’ve been able to meet colleagues from across the nation who also are actively working to grow their economies and who are willing to share ideas and lessons learned. We’ve been introduced to federal leaders who’ve become our BFFs in helping us navigate the federal assistance infrastructure, introducing us to potential new allies and funding partners, and serving as our advocates within the federal government in sharing our needs, frustrations and successes. We have launched our efforts to build stronger working partnerships throughout our DRIVE! region that help us more effectively leverage our existing assets while positioning our firms, communities and workers for an even brighter future.  We are proud to be part of a national effort that is actively working each day to help the federal government find innovative ways to more effectively accomplish its work by partnering across agency boundaries, leveraging the strengths of local communities to Invest in Manufacturing Communities Partnerships that get results.

The deadline for round 2 applications is April 1. For more information on how to apply visit: http://www.gpo.gov/fdsys/pkg/FR-2015-01-29/pdf/2015-01763.pdf.

The Benefits of IMCP

A US Navy welder works at the Puget Sound Naval Shipyard. Photo courtesy US Navy

Guest Blog by Sarah Lee, Principal Economic Development Manager, Puget Sound Regional Council

Washington State brought in $7 million in IMCP-aligned federal agency funds just months after receiving one of the “manufacturing community” designations from the U.S. Department of Commerce. That’s a pretty shining endorsement of the Investing in Manufacturing Communities Partnership (IMCP) program, right? But the truth is Washington State began reaping the benefits of the program even before we submitted our application. The value of this program is about even more than funding.

Our IMCP application was based on the Washington Aerospace Strategy, already developed by the Governor’s Office of Aerospace and the Washington Aerospace Partnership, so we had a head start. The application process pushed us to dig deeper, to prioritize projects and firm up commitments. We reached out to more stakeholders than we had before, which meant we uncovered great programs and projects and discovered partners we didn’t even know we had.

For example, we hadn’t fully explored what our local Manufacturing Extension Partnership (MEP) could do for us. MEP is a National Institute of Standards and Technology program that helps small and medium manufacturers create and retain jobs, increase profits, and save time and money. With a median size of 98 employees, our state’s aerospace suppliers definitely qualify for MEP programs. As a result, two of the six catalytic investments outlined in our IMCP plan are projects developed in partnership with our MEP. We have already secured funds for one of those projects, and the MEP relationship continues to open new doors. 

Top 5 Reasons to Apply to be an IMCP Designated Community

Today, the Commerce Department's Economic Development Administration (EDA) announced the next round of competition for designation as a “Manufacturing Community” under the Investing in Manufacturing Communities Partnership (IMCP) initiative. IMCP is designed to revolutionize the way federal agencies leverage economic development funds. It encourages communities to develop comprehensive economic development strategies that will strengthen their competitive edge for attracting global manufacturer and supply chain investments. Through IMCP, the federal government is rewarding best practices – coordinating federal aid to support communities’ strong development plans and synchronizing grant programs across multiple departments and agencies.  

Here are 5 reasons your community should consider applying for the designation: 

  1. A compass for navigating the bureaucracy: If you are designated as a manufacturing community, it can be like getting a machete to cut through red tape! While communities don’t receive money for being designated, you will be given elevated consideration from 10 federal agencies for more than $1.3 billion in available grant and program funding. No, you’re not guaranteed to suddenly be awarded every grant you apply for, but you get the opportunity to apply with that designee seal of approval. Moreover, you will have a dedicated federal liaison from one of the participating agencies that can serve as a resource to help you navigate the federal grant application process.

  2. IMCP will take your manufacturing strategy to the next level: Manufacturing is experiencing a renaissance. Over the past 5 years, American manufacturing has created nearly 800,000 jobs. The low-paid, gritty, back-breaking labor of the industrial revolution looks nothing like today’s manufacturing.  For the first time in more than 10 years, both manufacturing output and employment are growing. Today’s manufacturing workforce are innovative, highly skilled, well paid employees in highly technical industries, with workers earning 17 percent more than similar workers in other sectors. This resurgence is great for the economy as a whole. For every $1.00 spent in manufacturing, the sector generates $1.32 for the U.S. economy.

  3. Increased cooperation among your region: At the core of the manufacturing community designation is the idea that your region is forming effective partnerships and working across sectors (public, private, academic) on issues relating to workforce development, supply chain, research and innovation, trade and international investment, and access to capital. Making these connections is invaluable for strengthening your local economy, attracting investment, and creating jobs. We witnessed an incredible buzz and enthusiasm among designated communities, applicants, and other participants at our IMCP Summit held last October. It was a showcase of economic collaboration at its best.

  4. You’re in good company: The 12 communities designated in the first round of competition are doing some incredible innovative work! From automotive to aerospace, flooring to photonics, these diverse economic development plans are being implemented to boost the economies of regions across the country. To learn more about each community’s work and vision and the success of the designation, visit: http://www.eda.gov/challenges/imcp/index.htm

  5. You win by just applying: This may be a competition, but there are no “winners” or “losers” here. Everyone who applies benefits from the coordination and planning that is part of the application process. But don’t take our word for it – we heard from several of our first round applicants who were not designated that they found the process of simply applying to be very helpful. They were able to make new connections and access tools and resources to help start meaningful planning for their manufacturing sectors that has helped positioned them for success.   

These are just a few of the reasons to apply to be a designated manufacturing community. If you’re looking to strengthen your community’s manufacturing sector and regional economy, find your reason and start building your partnerships now. The deadline to apply is April 1, 2015. For more information visit: http://www.gpo.gov/fdsys/pkg/FR-2015-01-29/pdf/2015-01763.pdf

Investing in Manufacturing Communities Partnership Launches Second Round of Competition

Guest blog post by Commerce Secretary Penny Pritzker and Director of the National Economic Council Jeff Zients: Cross-posted from Whitehouse.gov

At the Investing in Manufacturing Communities Partnership Summit in Washington, D.C. last week, the Department of Commerce and 11 federal agencies with over $1.3 billion in economic development funding brought together more than 300 people from across the country to share best practices in building local competitiveness and to launch the second round of the Investing in Manufacturing Communities Partnership competition.

The Obama administration launched the Investing in Manufacturing Communities Partnership initiative in 2013 to build on the momentum in manufacturing we have seen over the last several years. Since February 2010, the manufacturing sector has created over 700,000 jobs and has grown nearly twice as fast as the overall economy. And with weekly hours in manufacturing at their highest since World War II, the sector appears poised for more jobs and growth, helping make the United States more competitive today than it has been in decades.

The Investing in Manufacturing Communities Partnership is an initiative that aims to spur communities to develop integrated, long-term economic development strategies that sharpen their competitive edge in attracting global manufacturers and their supply chains to our local communities -- increasing investment and creating jobs. Specifically, the program brings together the resources of multiple federal departments and agencies to support strong local economic development plans.

At the first-ever Summit, the 12 communities designated "manufacturing communities" under the first Investing in Manufacturing Communities Partnership national competition shared best practices and an update on the hard work underway in their communities to strengthen manufacturing with other communities looking to grow their own manufacturing sectors. 

Building on the strength of their local economic development strategies in manufacturing, the 12 communities are attracting new public and private investments in their communities, including over $100 million in new federal economic development investments. For instance, Southern California's designation as a manufacturing community helped Chaffey College secure a $15 million grant from the U.S. Departments of Labor and Education to create an advanced manufacturing training center, which will train workers for the highly technical, highly skilled jobs needed to grow the industry and the economy of the region. The Greater Portland, ME Region, organized by the Puget Sound Regional Council, was awarded a $4.3 million grant from the Department of Defense to transition Washington state's defense-sector advanced manufacturing capabilities over to new applications.

EDA Announces $1.9 Million Grant to Support Advanced Manufacturing in Recognition of Manufacturing Day

EDA Announces $1.9 Million Grant to Support Advanced Manufacturing in Recognition of Manufacturing Day

Guest blog post by Jay Williams, Assistant Secretary of Commerce for Economic Development

When I was growing up, manufacturing work was all about having a strong back and a strong work ethic. These days, manufacturing has changed. The first Friday in October each year marks Manufacturing Day, and today more than 1,500 manufacturers nationwide are opening their doors to host open houses, public tours, career workshops, and other events, in order to show people what manufacturing is – and what it isn’t. There is a lack of understanding of present-day manufacturing environments, which are highly technical. Manufacturing Day provides manufacturers with the opportunity to address the skilled labor shortage they face, connect with future generations, take charge of the public image of manufacturing, and ensure the ongoing prosperity of the whole industry. 

In honor of Manufacturing Day, I was joined by Kansas Governor Sam Brownback and faculty members for an event at Wichita State University (WSU) in South Kansas. The region is a leader in manufacturing, and the University is a key member of the South Kansas Manufacturing Community consortium, which U.S. Secretary of Commerce Penny Pritzker announced as one of the 12 Investing in Manufacturing Communities Partnership (IMCP) designated communities in May. While there, I announced a $1.9 million EDA grant to WSU to support advanced manufacturing. According to the grantee, the project will create 500 jobs and further regional capabilities in advanced manufacturing, with an emphasis on automated additive manufacturing innovation, and will provide competitive advantage for the transportation equipment manufacturing industry. These innovative technologies will also be applied to the emerging medical equipment manufacturing cluster in the region. 

While in Wichita, I got to see first-hand the sort of operations that have made South Kansas a leader in manufacturing. I was treated to a Manufacturing Day tour of the Wichita Operations of Bombardier-Learjet facility, where a critical EDA investment helped expand operations in 2012. The facility is truly impressive – as is the finished product

President Obama, the Commerce Department, and EDA are all committed to supporting manufacturing, because manufacturing creates good jobs with the largest multiplier effect of any part of the economy. In the last fiscal year, EDA invested in 89 manufacturing projects, totaling nearly $78 million. The projects were diverse, representing different industries, different geographies, and different community needs. Half of these projects were construction projects, which created more than 7,000 jobs and generated nearly $4.3 billion in private investment.

Manufacturing: Rebuilding America’s Economy

Manufacturing: Rebuilding America’s Economy

Guest blog post by Jay Williams, Assistant Secretary of Commerce for Economic Development

Last week, I was honored to participate in Partnering for Illinois’ Economic Future Second Annual Economic Summit hosted by Congresswoman Cheri Bustos (D-IL) in Rock Island, Illinois. This summit is the highlight of an initiative the Congresswoman launched in 2013 to foster economic collaboration in the 17th Congressional District of Illinois, and my keynote focused on the challenges and opportunities facing the American manufacturing sector, how we can prepare for success in the global economy, and what is being done at the federal level to help regions succeed. 

Manufacturing matters:

* Manufacturing supports 17.4 million U.S. jobs.

* Manufacturing career opportunities include engineers, designers, machinists, and computer programmers.

* The annual average salary of manufacturing workers is more than $77,000, which is approximately 17 percent more than similar workers employed in other sectors.

* For every $1.00 spent in manufacturing, the sector creates $1.32 for the U.S. economy. 

While some have been quick to write the obits for nearby manufacturing towns like Moline, and East Moline, Illinois, and Davenport, Iowa, it was refreshing to see the close collaboration taking place locally to bring manufacturing back. 

At the national level, we are working to support our manufacturers by supporting efforts to build the President’s National Network for Manufacturing Innovation (NNMI), which is working to accelerate development and adoption of cutting-edge manufacturing technologies.

Two weeks ago, U.S. Commerce Secretary Penny Pritzker spoke of the need for passage of pending bipartisan legislation that would establish the network. NNMI is all about keeping America – our manufacturers, businesses, and economy – globally competitive. NNMI is focused on helping America lead the global economy; boosting local, regional, and state economies, and most importantly, create new growth industries, right here in America. 

After State of the Union Secretary Lew Highlights Importance of U.S. Manufacturing and Workforce Training

Secretary Lew speaks to Virginia State University interns and research faculty during his visit to the Commonwealth Center for Advanced Manufacturing in Prince George County, Virginia

Guest blog post by Marissa Hopkins Secreto, Senior Advisor to the Assistant Secretary of Public Affairs at the United States Department of the Treasury and Angie Martinez, Director Office of External Affairs at the U.S. Department of Commerce, Economic Development Administration.

Crossposted from Treasury Notes.

As part of President Obama’s call for creating more high-tech manufacturing jobs in his State of the Union Address last week, Treasury Secretary Jacob J. Lew visited the Commonwealth Center for Advanced Manufacturing (CCAM) in Prince George County, Virginia, on Friday. Secretary Lew toured CCAM’s facility and discussed the future of U.S. manufacturing and the importance of workforce training with CCAM’s business and university partners, as well as Matt Erskine, Deputy Assistant Secretary of Commerce for Economic Development.

“To build on the progress we have made over the last five years, we have to continue to take action to help strengthen economic growth, create jobs, and restore opportunity for all,” Secretary Lew said in statement about his visit.  “CCAM is at the forefront of expanding opportunity by bringing researchers, students, and business together to drive innovation and develop advanced manufacturing technologies.  It is also a powerful example of why this Administration’s focus on increasing job training, modernizing our education system, and creating manufacturing institutes is so important."
 
CCAM is changing the game for how we can grow manufacturing in the U.S. Their approach bridges the gap between fundamental research typically performed at universities and product development routinely performed by companies. CCAM’s members guide the research, leveraging talent and resources within CCAM and at Virginia’s top universities, through a collaborative model that enables them to pool R&D efforts to increase efficiencies. Results can then be applied directly to the factory floor, turning ideas into jobs faster and more affordably than ever before.  CCAM is just one example of the federal government’s efforts to connect universities to businesses and strengthen American manufacturing and our economy through these partnerships.

Secretary Pritzker Announces Administration-Wide Initiative to Attract Manufacturing and Investment in American Communities

Secretary Penny Pritzker announced the launch of Phase 2 of the “Investing in Manufacturing Communities Partnership” (IMCP), an administration-wide initiative led by the White House and the U.S. Department of Commerce that will encourage communities to devise comprehensive economic development strategies that strengthen their competitive edge in attracting global manufacturers and their supply chains.

Pritzker announced the initiative during her opening remarks at the White House Mayor’s Manufacturing Community Summit. During this phase, communities will have an opportunity to compete for a special designation that will elevate them in consideration for $1.3 billion in federal dollars and assistance from 10 cabinet departments/agencies. These communities could also potentially receive catalytic additional federal investments to further support their economic development strategies.

The IMCP is a critical component of the Department of Commerce’s “Open for Business Agenda,” which prioritizes trade and investment. The initiative seeks to enhance the way we leverage federal economic development funds to encourage American communities to focus not only on attracting individual investments one at a time, but transforming themselves into globally-competitive manufacturing hubs.

During Phase One, 44 communities were awarded a total of $7 million to support the creation of economic development strategies that recognize the community’s comparative advantages as a place to do business, invest in public goods, and encourage collaboration between multiple entities to expand the area’s commercial appeal to investors.

Manufacturing Award Grants Will Invite Lasting Investment for Our Communities

Guest blog post by U.S. Secretary of Commerce Penny Pritzker

This past spring, the Commerce Department launched the Investing in Manufacturing Communities Partnership (IMCP), a first-of-its-kind initiative to provide communities with the resources needed to create and implement development plans and recognize their full economic potential.

I’m so pleased to announce 26 grant award winners have been selected by the Department of Commerce. Along with our agency partners – the Department of Agriculture, the Environmental Protection Agency, and the Small Business Administration – we are awarding $7 million in grants and investments that comprise the first funding phase of the Investing in Manufacturing Communities Partnership.

The communities selected as winners by the Department of Commerce represent 17 different states. They have developed cutting-edge plans that capitalize on these communities' comparative advantages as a place to do business. These plans make investments in public goods, and encourage collaboration between multiple public and private entities to expand the area's commercial appeal to investors. In total, the first funding phase of the program provides 44 planning grants and investments.

The IMCP stemmed from the recognized need to effectively accelerate manufacturing investment in the United States. Too often, communities have relied on the practice of “smokestack chasing” to attract investment, in which communities will offer tax breaks and subsidies to attract the attention of a single firm. Economists have found this approach often yields a low return for taxpayer investment. The Obama administration seeks to encourage and assist American communities to not merely make efforts to attract individual investments but instead to transform themselves into manufacturing hubs that that draw all kinds of businesses.