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Granholm, NGA to Focus on Why Manufacturing Matters to the States

Contact:  Heidi Hansen 517-335-6397


February 23, 2004

WASHINGTON, D.C. – The National Governors Association (NGA) will focus its attention today on the issue of manufacturing and related job losses when it holds a candid discussion on the major trends taking place in the U.S. and the world that are affecting technology and productivity in the manufacturing sector.

Participating in the forum is Governor Jennifer M. Granholm who will introduce Richard E. Dauch, Chairman and CEO of American Axle.

Granholm has devoted much of her time at the NGA Winter Meeting talking about the need for federal policies that will level the playing field for American manufacturers and slow down the hemorrhaging of manufacturing jobs to other countries.

Specifically, the Governor has outlined a five-point plan for changes in federal policy that business and labor leaders in Michigan believe will improve the plight of the manufacturing sector. The plan includes:

International Trade: A level playing field for manufacturing must be created. International trade regulations are not adequately enforced by the federal government, which is negatively impacting the competitiveness of the U.S. manufacturing base.

Workforce Training and Development: A well-educated and skilled workforce is essential for the success of manufacturing in Michigan and the U.S. Workforce training and technical assistance for small and medium-sized companies, along with research and development (R&D), are key to developing that workforce.

Rising Pension and Health Care Costs: Companies want to provide appropriate pension and health care benefits to their employees, but the skyrocketing cost of those benefits must be addressed and curbed. Those costs negatively impact competitiveness when companies are forced to divert money from R&D and hiring to cover those liabilities.

U.S. - Canada Border Infrastructure: Manufacturers trade parts and finished goods across North America and around the globe. Customs procedures must be simplified and automated to facilitate the flow of low-risk goods.

Energy Policy: The U.S. needs diversified, affordable, reliable, new domestic and competitive sources of energy, such as clean coal, oil, natural gas, hydro, solar, wind, alternative feed stocks and biomass, and investment in infrastructure, as well as a national focus on conservation.

"We need help for the manufacturing sector, which is critical for our nation’s economy," Granholm said. "We need to level the playing field in international trade, and we can do that by making sure the trade agreements we sign have core labor and environmental standards. We cannot allow the manipulation of currency that ends up hurting our businesses and our job providers, nor can we allow other countries to put up non-tariff trade barriers."

Granholm has made the point that manufacturing is the backbone of Michigan’s economy, and she is committed to finding ways to make it easier to retain, expand, and grow manufacturing.

"When this important sector of our economy is growing, we are able to invest more in education, health care, and the environment – the key quality of life issues that make Michigan a great place to raise a family and grow a business," Granholm added.

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