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MANUFACTURING UPDATE- November/December 2015 -

1. LATEST POLICY==================================

Senator Coons’ R&D Provisions Included in Year-End Tax Extenders BillTwo key R&D provisions included in tax bill originated from Coons’ first piece of legislation he

introduced in the Senate

The year-end tax extenders bill released last night includes three important provisions previously

introduced by U.S. Senator Chris Coons (D-Del.) that will allow businesses to grow and create jobs,

especially in the manufacturing industry. The bill will permanently extend the R&D tax credit, helpstartup companies access the credit, and allow small and medium-sized businesses to use the credit

against Alternative Minimum Tax (AMT) liability.

Senator Coons’ first piece of legislation in the Senate called for a permanent extension of the R&D

credit. This is one of the most important credits to American businesses and until today, Congress has

failed to permanently extend it. In fact, the R&D tax credit was initially enacted in 1981 and has been

temporarily extended 16 times.

More: Coons Release 

Obama Signs 5-year, $305 Billion Bill to Boost Highway Spending, Assure States

of AidA 5-year, $305-billion bill to address the nation's aging and congested transportation systems was signed

into law by President Barack Obama, who said it will put Americans to work and provide states with the

federal help they need to commit to long-term projects.

The bill, which was overwhelmingly approved by Congress a day earlier, provides a modest increase to

highway and transit spending but falls short of the $400 billion over six years administration officials said

is necessary to keep traffic congestion from worsening. Nor does it resolve how to pay for

transportation programs in the long term.

More: U.S.News & World Report 

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Export-Import Bank Is RevivedLegislation signed by President Barack Obama resurrected the U.S. Export-Import Bank and ended a five-

month lapse that revealed far stronger bipartisan backing for the agency than the pitched battle to shut

it down suggested.

The outcome now gives the bank a firm footing until September 2019, but the brawl over its existencethis year left both economic and political scars.

The Ex-Im Bank charter ran out in July, preventing the agency from writing new business, after key

lawmakers bottled up legislation that would overhaul and renew it. The unprecedented pause in activity

for the 81-year-old agency that finances American exports prompted companies to move business

abroad or risk lost sales.

More: Wall Street Journal

Missouri and U.S. Chambers of Commerce Join McCaskill to Tout Her Bipartisan

Plan Recently Signed Into Law to Boost Job Opportunities, Streamline Permitting

Senator’s bipartisan plan to reform federal permitting was included in long-term Highway bill

Representatives from the Missouri Chamber of Commerce and the U.S. Chamber of Commerce today

 joined U.S. Senator Claire McCaskill to discuss bipartisan legislation by McCaskill—recently signed into

law—that will boost job and business opportunities by reforming federal permitting.

“Senator McCaskill, thanks so much for your leadership on this issue—it means a real breath of fresh air

for infrastructure around the country,” said Daniel Mehan, President and CEO of the Missouri Chamber

of Commerce and Industry, on a media conference call. “Missouri is keen on infrastructure with our

location in the center of the country—we’ve got a cross-section of pipelines, roads, rails—with the

second, third largest rail hubs in the country and sixth largest highway system. But this means that

infrastructure development will be simplified, it’ll be expedited, and with the focused management it’ll

help in a great way employ a lot of Missourians… congratulations on a unique display of bipartisanship in

the federal government.”

More: McCaskill Release 

Murphy Announces New Report Showing His ‘Buy American Act’ Will Create

100,000 U.S. JobsThe Economic Policy Institute Released New Findings That Murphy’s 21st Century Buy American Act

Would Boost Demand For American Manufacturing & Create As Many As 100,000 U.S. Jobs

During a visit to Turbine Technologies, Inc., one of Connecticut’s high-growth manufacturers, U.S.

Senator Chris Murphy (D-Conn.) celebrated new findings by the Economic Policy Institute that passageof his 21st Century Buy American Act would create up to 100,000 U.S. jobs. Specifically, the report found

that by closing loopholes in the Buy American Act, including the overseas usage loophole, and boosting

the percentage of American-made content of all purchases covered by the Buy American Act, Murphy’s

bill would increase GDP by $13.6 billion and create between 60,000 and 100,000 new U.S. jobs.

More: Murphy Release 

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Calif. Congressman Cardenas Introduces Manufacturing Jobs Bill, inspired by

‘Race to the Top’U.S. Reps. Tony Cárdenas (D-San Fernando Valley, Calif.) and Brad Ashford (D-Omaha, Neb.) introduced

legislation creating a $100 million in competitive grants that will promote reforms in workforce

education and skills training for manufacturing jobs. The Manufacturing Skills Act was also introduced in

the U.S. Senate earlier this year by U.S. Sens. Chris Coons (D-Del.).More: California Newswire 

Sen. Al Franken, Rep. Tammy Duckworth Introduce Bill to Train Workers for

Open, High-Skill Jobs Legislation Will Promote Partnerships between Businesses

and Community Colleges to Address Skills GapU.S. Sen. Al Franken (D-Minn.) and Rep. Tammy Duckworth (D-Ill.) announced the introduction of their

legislation to close the "skills gap"—where jobs go unfilled because businesses can't find workers with

the right skills—by supporting partnerships between community colleges, technical colleges, and

businesses to train students to fill high-demand jobs.

The Community College to Career Fund Act, which Sen. Franken first introduced last Congress, will help

create partnerships between two-year colleges and businesses with the goal to train millions of

Americans for jobs in high-skill industries, such as health care, advanced manufacturing, clean energy,

and information technology.

More: Franken Release

Stabenow, Peters, Miller Urge Obama Administration to Support Funding for

Blue Water BridgeU.S. Senators Debbie Stabenow (D-MI), Gary Peters (D-MI) and Rep. Candice Miller (R-MI) wrote to

Secretary of Homeland Security Jeh Johnson and Director of the Office of Management and Budget

Shaun Donovan urging the Administration to make the expansion of a customs plaza for the Blue WaterBridge in Port Huron a high priority for funding in the Fiscal Year 2017 budget. Despite land being

cleared and property demolished in Port Huron for the expansion, funding for the customs plaza

construction has yet to be allocated.

More: Stabenow release

Klobuchar, Franken Introduce Legislation to Crack Down on Illegal Steel

Dumping, Protect U.S. SteelworkersThe illegal dumping of steel products by foreign countries is harming the steel industry in Minnesota and

across the country, resulting in plant closures and job losses

Senators' bill would crack down on illegal steel dumping by strengthening trade enforcement.

U.S. Senators Amy Klobuchar (D-MN) and Al Franken (D-MN) introduced legislation to crack down on

illegal steel dumping and protect U.S. steelworkers. The illegal dumping of steel products by foreign

countries is harming the steel industry in Minnesota and across the country, resulting in plant closures

and job losses. The senators' bill would crack down on illegal steel dumping by strengthening trade

enforcement.

More: Franken Release

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Senator Gillibrand Announces New Legislation to Help Expand Small Businesses,

Boost ManufacturingLegislation Would Increase Access to Capital & Help Small Businesses Create & Keep High-Paying, High

Skilled Manufacturing Jobs in the U.S

Freeville, NY – Standing at Incodema3D, U.S. Senator Kirsten Gillibrand today announced legislation tohelp small businesses expand their advanced manufacturing operations and create and keep high-

paying, high skilled manufacturing jobs in the United States. The Scale-Up Manufacturing Investment

Company Act of 2015 would increase capital for entrepreneurs and small businesses looking to scale-up

and commercialize their advanced manufacturing and innovation operations.

More: Gillibrand Release 

TechHire Initiative: Creating Pathways to Better, Well-Paying Tech Jobs and

Meeting Urgent Employer Demand Across the U.S.TechHire is a bold multi-sector initiative and call to action to empower Americans with the skills they

need, through universities and community colleges but also nontraditional approaches like “coding boot

camps,” and high-quality online courses that can rapidly train workers for a well-paying job, often in justa few months. Employers across the United States are in critical need of talent with these skills. Many of

these roles do not require a four-year computer science degree. To give Americans the opportunity they

deserve, and the skills they need to be competitive in a global economy, we are highlighting TechHire

partnerships.

More: White House Release

Klobuchar OP ED: We Need a Nationwide Commitment to BroadbandTechnology is reshaping the ways we live, work, play and communicate. The Internet is connecting

communities and creating opportunities we couldn’t have imagined even a few decades ago. Today, you

don’t need to live off an interstate highway or in a major city to find a good job, launch a new business

or take college classes.

But without a reliable high-speed internet connection, your options can be limited. In the 1930s, our

country brought electricity and telephone service to communities from coast to coast. In order to

compete in today’s global economy, we need to make that same commitment to connecting all

Minnesotans with high-speed broadband Internet.

More: Klobuchar Release

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Senator Gillibrand Announces New Legislation to Address Skills Gap, Enhance

Job Training with Apprenticeship ProgramsGillibrand Announces Bipartisan Legislation to Address Skills Gap, Tours Revere Copper Products

Bipartisan Legislation Incentivizes Employers to Provide Workers On-The- Job Training 

Rome, NY - U.S. Senator Kirsten Gillibrand announced legislation to address the skills gap employers faceand enhance job training to help workers develop the skills they need for good-paying, high-demand

 jobs. The bipartisan Apprenticeship and Jobs Training Act of 2015 would create a $5,000 tax credit for

employers that use apprenticeship programs to train workers in high-demand professions such as health

care, manufacturing and technology. The bill also would allow veterans in apprenticeships to get credit

for previous military training and experience, as well as incentivize mentoring of apprentices by senior

employees.

More: Gillibrand Release 

2. OTHER NEWS==================================

VIDEO: Senator Coons Highlights Delaware Apprenticeship Programs, ‘The OtherFour-Year Degree’1,100 Delawareans are currently in apprenticeship programs; Senator Coons highlights apprenticeship

programs in New Castle, Wilmington, Glasgow

U.S. Senator Chris Coons (D-Del.) spoke on the Senate floor to recognize National Apprenticeship Week,

which was created to help business leaders, educators, community based organizations, students, and

workers learn about the real-world advantages of apprenticeships. 1,100 Delawareans are actively

working through apprenticeship programs.

More: Coons Release 

Senator Stabenow Applauds $3 Million USDA Investment in Michigan BiofuelsFunding Will Help Increase Consumer Fuel Options, Reduce Fuel Costs and

Dependence on Foreign Oil U.S. Senator Debbie Stabenow, Ranking Member of the Senate Committee on Agriculture, Nutrition and

Forestry, announced that Michigan has been chosen as a partner in the U.S. Department of Agriculture's

Biofuels Infrastructure Program, which supports projects that increase the production and delivery of

renewable fuels like ethanol. The state will receive $3 million to add approximately 130 ethanol and

gasoline/ethanol blender pumps at Michigan fueling stations. This grant will be matched by state and

local support, more than doubling the funding available to install these pumps.

More: Stabenow Release

Brown Applauds $82 Million Investment in Moraine DMAX PlantU.S. Sen. Sherrod Brown’s (D-OH) applauded news that DMAX, Ltd. – a partnership between General

Motors and Isuzu – will invest $82 million in the DMAX engine plant in Moraine. The project is expected

to create approximately 150 new jobs over the next three years.

More: Brown Release

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Blumenthal, Murphy, DeLauro Announce $2.5 Million for Wallingford’s Proton

Energy to Develop Ultra Efficient BatteryU.S. Senator Richard Blumenthal (D-Conn.), U.S. Senator Chris Murphy (D-Conn.) and Congresswoman

Rosa DeLauro (D-3) announced that the U.S. Department of Energy has awarded Wallingford’s Proton

Energy $2.5 million to develop a highly-efficiency hydrogen-iron flow battery capable of generating

hydrogen to power fuel cells while also storing energy on the electric grid. The battery can be rechargedeither using grid electricity or through exposure to sunlight.

More: Blumenthal Release 

Senator Coons Speaks at Aviation Jobs Rally, Notes That Jobs are Available,

Need to be FilledSen. Coons joined Sen. Carper, Rep. Carney and Gov. Jack Markell at Dassualt Falcon Jet to help

recognize the contributions of the general aviation manufacturing industry to the Delaware economy.

The event, hosted by General Aviation Manufacturers Association (GAMA) welcomed leaders from Aloft

AeroArchitects (previously PATS Aircraft Systems), Dassault Falcon Jet, FlightSafety International, and

Summit Aviation to reflect on the role aviation plays in the local economy.

“Today, we celebrate some of the highest paying, highest quality manufacturing jobs in this country that

are right here in Delaware,” said Sen. Coons. “We know that not enough people know about these jobs.”

More: Coons Release 

Klobuchar, Franken, Dayton, Peterson Announce $10 Million to Alleviate Freight

Bottleneck in WillmarU.S. Senators Amy Klobuchar and Al Franken, Governor Mark Dayton, and Representative Collin

Peterson announced that the U.S. Department of Transportation has awarded a $10,000,000

Transportation Investment Generating Economic Recovery (TIGER) Grant for Willmar's Rail Connector

and Industrial Access project.More: Franken Release

Murphy Marks “National Apprenticeship Week”U.S. Senator Chris Murphy (D-Conn.) marked the Obama administration’s first-ever National

Apprenticeship Week, and called on Connecticut businesses to expand apprenticeship opportunities

throughout the state. National Apprenticeship Week spans from November 1, 2015 to November 7,

2015.

More: Murphy Release

Workforce Training Partnerships Look to Fill Open Jobs Now

Raimondo, Congressional delegation announce 26 Real Jobs RI grantsGovernor Gina M. Raimondo, along with the Rhode Island Congressional delegation, announced the

recipients of the Real Jobs RI implementation grants available through the Rhode Island Department of

Labor and Training (DLT). Real Jobs RI is a demand-driven initiative that puts employers at the center of

the state's workforce development efforts to train people for jobs that actually exist now.

More: Reed Release 

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13

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'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15   M   a   n   u    f   a   c   t   u   r   i   n   g   e   m   p    l   o   y   e   e   s ,

   m   i    l    l   i   o   n   s

+1 +11

-19

-8

+1

-1

Jun Jul Aug Sep Oct Nov

Month-on-month change, thousands

3. SECTOR DATA==================================

Purchasing Managers’ Index (PMI)The November PMI registered 48.6 percent, a decrease of 1.5 percentage points from the October

reading of 50.1 percent. Economic activity in the manufacturing sector contracted in November for the

first time in 36 months, while the overall economy grew for the 78th consecutive month.

The PMI is a widely watched measure of aggregate manufacturing strength. The PMI is based on a

survey that asks purchasing managers if Inventories, Supplier Deliveries, Employment, Production, and

New Orders have gone up or down that month. Results above 50 indicate growth.

For November, Inventories read 43.0 (-3.5%), Supplier Deliveries read 50.6 (+0.2%), Employment read

51.3 (+3.7%), Production read 49.2 (-3.7%), and New Orders read 48.9 (-4.0%).

More: Institute for Supply Management 

Employment

Preliminary estimates by the Bureau of Labor Statistics show that manufacturing employment was down1,000 in November, at a seasonally adjusted 12.318 million.

The below chart shows the total number of manufacturing employees over the last ten years in millions

of workers, as well as the month-on-month change in manufacturing employment for the last six

months (in thousands). Both numbers are seasonally adjusted.

More: Bureau of Labor Statistics 

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Federal Reserve DataThe Fed publishes monthly data on industrial production and capacity utilization. Industrial production

is represented as an index where the 2007 level equals 100. Capacity utilization is shown as percent of

capacity. The chart below shows these measures for the last six months.

More: Fed 

In addition to the Fed’s national data, six of the twelve Federal Reserve regional branches publish

monthly updates on manufacturing conditions in their region. Because each branch uses different

questions and methodology, interregional comparisons are not suggested.

New York Fed (NY state, 12 northern NJ counties, and Fairfield County in CT)

“The December 2015 Empire State Manufacturing Survey indicates that business activity declined for a

fifth consecutive month for New York manufacturers. However, the pace of decline slowed somewhat:

the headline general business conditions index, though still negative, moved up six points to -4.6.” More: NY Fed 

Philadelphia Fed (eastern PA, southern NJ, and DE)

“Manufacturing conditions in the region weakened this month, according to firms responding to the

December Manufacturing Business Outlook Survey. The indicator for general activity, which was slightly

positive last month, fell into negative territory. The indexes for new orders and shipments were mixed.

Firms reported slight increases in overall employment this month and an increase in average work hours

compared with November.”

More: Philadelphia Fed 

Richmond Fed (DC, MD, NC, SC, Virginia & most of WV)

“Fifth District manufacturing activity slowed in November, according to the most recent survey by the

Federal Reserve Bank of Richmond. Shipments remained sluggish and new orders declined. Hiring in the

sector changed little compared to the previous month, while the average workweek shortened andwages rose mildly. Raw materials prices rose at a somewhat faster pace, while prices of finished goods

increased modestly in November.”

More: Richmond Fed 

106.2

76.2

60

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106

108

Jun July Aug Sept Oct Nov

 M a n u f   a c  t   u r  i   n g c  a p a c  i   t   y 

 u t   i   l   i  z  a t   i   o n (   % )  

   M   a   n   u    f   a   c   t   u   r   i   n   g

   p   r   o    d   u   c   t   i   o   n

Manufacturing productionManufacturing capacity utilization

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Chicago Fed (southern WI, IA, northern IL, northern IN, and southern MI)

“In December 2013, the monthly release of the CFMMI was suspended pending the release of updated

benchmark data from the U.S. Census Bureau and a period of model verification.”

More: Chicago Fed 

Kansas City Fed (western MO, NE, KS, OK, WY, CO & northern NM)

“The Federal Reserve Bank of Kansas City released the December Manufacturing Survey today.

According to Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City,

the survey revealed that Tenth District manufacturing activity declined moderately, although

expectations for future activity remained solid.”

More: Kansas City Fed

Dallas Fed (TX, northern LA and southern NM)

“Texas factory activity increased for a second month in a row in November after exhibiting weakness in

the first three quarters, according to business executives responding to the Texas Manufacturing

Outlook Survey. The production index, a key measure of state manufacturing conditions, edged up from

4.8 to 5.2.”

More: Dallas Fed

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U.S. Manufacturing Technology Orders (USMTO)October U.S. manufacturing technology orders totaled $327.39 million, down 28.3% compared to

$456.44 million in October 2014. Year to date, total orders for 2015 stand at $3,452.82 million,

compared to $4,178.71 million at the same point in 2014. This data is a reliable leading economic

indicator as manufacturing industries invest in capital metalworking equipment to increase capacity and

improve productivity.

“While the general economy continues to grow at a moderate pace, the manufacturing sector is

struggling with the effects of a strong dollar, reduced commodity prices, especially oil, and struggles in

key export markets like China,” said AMT President Douglas K. Woods. “As the broader industry faces

this slowdown, manufacturers are not making significant capital investment in new manufacturing

technology.”

These numbers and all data in this report are based on the totals of actual data reported by companies

participating in the USMTO program. The chart below shows year-over-year change and total October

2015 orders on a national and regional basis. Fields marked “NA” denote where, due to changes in the

make-up of survey participants, an accurate reflection of the data is not available.

More: Association for Manufacturing Technology 

4. ABOUT THIS NEWSLETTER==================================

This update is provided by the Office of U.S. Senator Chris Coons on behalf of the Manufacturing Jobs for

 America initiative. For more information, visit coons.senate.gov/manufacturing or emailPeter_Winter@coons.senate.gov. 

NA

-72.0

NA

-12.8

NA

NA

-28.3

West

South Central

North Central-West

North Central-East

Southeast

Northeast

Total 327.4

53.3

NA

111.2

NA

NA

57.9

Year-over-year

change (%)

October

Orders ($m)