January 15, 2010
Governors push for help for manufacturers to keep, create new jobs
LANSING - Governor Jennifer M. Granholm today joined the governors of Illinois, North Carolina, Ohio, Pennsylvania and Wisconsin in writing Treasury Secretary Timothy Geithner to request that the Treasury Department consider additional initiatives to help manufacturers gain access to credit. The governors said that additional assistance for American manufacturers can help them diversify into new industries, which will help the United States lead in emerging sectors and create new jobs.
"Manufacturers have been hit hard by the economic downturn, leaving many unable to access needed credit to adapt and transition into high-growth sectors," Granholm said. "To protect jobs and prevent foreign manufacturers from gaining competitive advantages, we need to ensure that American companies have access to capital."
Granholm and the Michigan Economic Development Corporation (MEDC) have already taken action to address these issues regarding credit access. In 2009, MEDC began the Michigan Supplier Diversification Program which used state resources to leverage private loans for manufacturers seeking to diversify into new sectors, including clean energy. Through this program, MEDC was able to use $12 million in state funds to leverage more than $41 million in private capital for manufacturing projects in 2009, a ratio of more than three-to-one. The governors hope that Treasury will consider similar innovative models to help manufacturers across the country.
"We propose that the Department of the Treasury make use of available federal funding to develop innovative partnerships with states and financial institutions to increase credit access to our small businesses and manufacturers," the governors wrote. The governors also praised Secretary Geithner's efforts to stabilize the national economy.
Manufacturing is a major economic driver in the United States, accounting for more than $1.4 trillion in national income in 2008. Manufacturing companies also make up 70 percent of all research and development performed by U.S. industries.
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