DeLauro Remarks on Growing Connecticut’s Economy by Expanding Exports

New Haven, CT— Congresswoman Rosa L. DeLauro (CT-3) delivered remarks this morning on how we have and--can continue to--grow Connecticut's economy by increasing global exports. The speech was part of a conference sponsored by the U.S. Commerce Department and Connecticut District Export Council. DeLauro is a longtime advocate for creating jobs and expanding Connecticut companies' ability to export by rebuilding our infrastructure, investing in manufacturing and ensuring they have the necessary tools to compete in a global economy. Below are the remarks as prepared for delivery:

Thank you Adam (Wilczewki, Chief of Staff to Commerce Department Deputy Secretary Francisco Sanchez). It is good to be with you. Good morning to everyone.

Let me begin by thanking Adam, Deputy Secretary Sanchez, Commissioner Smith, as well as District Director Anne Evans and everyone at the US Department of Commerce and Connecticut District Export Council for inviting me to join you for this event. Thank you for your hard work everyday in helping to open markets abroad to our innovative Connecticut small businesses.

I am pleased to hear that over seventy companies are with us today to take advantage of this opportunity to learn about the European market, and meet our Senior Commercial Officers. As representatives and leaders of export-minded businesses, you can have a huge impact on our Connecticut economy and can lead the way forward to the broader prosperity our hard-working families demand.

To all the private industry speakers who are giving their time to counsel participants in the aerospace and medical sectors: we are grateful.

And speaking of the medical sector, it is fitting that we are gathered here today at Yale's West Campus – where innovative research is being conducted that will propel Connecticut's growing medical and bioscience sector into the future. Thank you to the Yale community for hosting us here today.

As you all know, our economy faces long-term economic challenges, with over 8% still unemployed and small businesses and the middle class struggling. For people we have just begun the work of getting our Connecticut economy on the right track. That is why this meeting is so important.

A main driver of that job growth has been exports. Exports create good jobs, jobs that pay 15 percent more on average than other fields, and promote prosperity. And they are integral to fostering a meaningful economic recovery. For every billion dollars of exports, over 5,000 jobs are supported.

March marked two years since President Obama first announced the National Export Initiative, to double U.S. exports by the end of 2014 and create or retain an estimated two million jobs here at home – 30,000 right here in our state. That would not happen without the inventiveness of our Connecticut companies, many of whom are here. We have a defense infrastructure and a large pharmaceutical sector and a great hospital network that have led the change.

So far, we are on track. US exports of goods and services increased to $2.1 trillion last year – a gain of almost 16%. The year before, 2010, we saw an increase of nearly 17 percent over 2009 levels. In 2010, Connecticut businesses exported just over $16 billion in goods and services, including over $1 billion to China.

These gains in both private sector jobs and exports are a testament to, among other things, the emphases of the NEI, as well as the work of the Export Assistance Center in Middletown and the Export-Import Bank. Last September I co-hosted a similar conference, this one geared toward small businesses and educating them on the financing tools available to them through the Ex-Im Bank. Over the last five years, the Export-Import Bank has helped almost 100 Connecticut businesses export approximately $1.3 billion in goods overseas.

These efforts show that, by advocating for local businesses, increasing their access to much-needed credit, and ensuring a level playing field in the global markets, the federal government has both the ability and responsibility to foster the economic conditions that help our local businesses flourish.

Yet, it is also important to put the recent successes I have described into context by looking at the recent history of the manufacturing sector – whose strength is the key to export growth.

Since 2000, the manufacturing sector lost nearly one-third of its workforce, a total of nearly 6 million jobs. In that period, employment in the manufacturing sector in Connecticut has dropped from 235,000 to 170,000.

This loss can be attributed to such factors as lower labor costs overseas, high energy costs at home, and, most notably, the rise of China as a low wage manufacturer that has skirted global trade rules and manipulated its currency.

But today, we are seeing a new growth in manufacturing export-oriented firms at home with China's cost advantage shrinking and with lower energy costs projected for the future as the U.S. develops oil, natural gas and biofuels. Corporate executives are looking to bring manufacturing back to the United States and all of you, as well as other companies across our state, are looking to create products here to ship overseas.

The Administration is also making manufacturing a priority. They understand that support for manufacturing means more exports and more cutting edge research and development and innovation – a lot of which occurs right here at Yale – that then leads to development of the high-technology products of tomorrow. In fact manufacturing firms account for 70 percent of private sector R&D and over 90 percent of patents issued.

Part of the Administration's focus on manufacturing involves investing in our infrastructure and lowering tax rates for our manufacturers.

Likewise, at the heart of my own jobs agenda are investments to spur our infrastructure and manufacturing sectors. I have championed a national infrastructure bank for almost two decades now – to leverage billions in private capital toward public investment.

It is modeled after the European Investment Bank – which those in attendance from Europe know has done so much to build European infrastructure – In fact, Chancellor Merkel recently called for bolstering the EIB to help spur economic growth in Europe. Similarly, the improved roads, highways, rail, airports, water ways and energy efficiency a Bank could support here would help further stimulate commerce and exports, right here in America. We need to be a country that builds things again, not just one that consumes things made overseas.

I also have a bill I developed with the help of local manufacturers, the Manufacturing Reinvestment Account Act, which would allow businesses, such as the many small suppliers to the aerospace industry throughout Connecticut, to create an IRA-like account at a community bank to save money – money they can then reinvest in their company to buy state-of-the art equipment, build facilities, and train the high-skilled workers they need to grow their business.

And, I will continue to support the work at the Department of Commerce and our Middletown Export Center, which has excelled in generating overseas matches for Connecticut companies. Today's conference is just one of many such conferences, trade missions and training events they have organized, to the benefit of hundreds of companies and small businesses in our region.

For example, at this time last year I joined a local 125-employee company, I2S in Wallingford, and the Export Center to celebrate $23 million dollars of I2S equipment sales to China. Those sales were a direct result of a trade mission led by our Export Center and the District Export Council. And that $23 million dollars supported over 30,000 man hours of work here in Connecticut.

The Export Center has also worked with the state government to create a pilot program that hires veterans at the center as interns and paid contractors. While gaining the opportunity to learn business and trade skills for future private sector employment, veterans have enabled the Export Center to support over 2000 Connecticut companies with export assistance. I want to commend Governor Malloy, Commissioner Smith and Director Evans for partnering in this endeavor.

Some of the top industries served by the Middletown Export Center are Aircraft & Aircraft Parts and Defense Industry Equipment. The Center often takes aerospace delegations on trade missions and to trade shows overseas.

As you all know, the aerospace industry is critical to jobs and economic growth in our state. According to the Bureau of Labor Statistics, it has employed over 30,000 workers in the state in each year over the last decade, jobs that pay good middle class wages. In recent years, Connecticut has seen over $6 billion a year in aerospace exports.

As part of the NEI, I was proud to work with Anne last October to bring the US Ambassador to Norway, Barry White, to Sikorsky in Stratford in order to promote Sikorsky helicopters in Scandinavia.

Sikorsky is now selling Black Hawks to Sweden, as well as other helicopters on Scandinavian oil and gas platforms, even though they must compete with European companies, Eurocopter and AgustaWestland, in that market. I understand we also have both Boeing and Airbus representatives attending and participating in today's conference, and locally-built Pratt engines power many of their aircrafts, most recently the Airbus A320.

These good manufacturing jobs help to support our Main Street businesses and small service businesses that employ thousands here in our State. This is the formula for job creation and economic growth.

I believe it is vital that we continue to support our manufacturing sector. And if we can help our domestic companies compete in overseas markets, and prevent them from being victimized by undue trade barriers, than the unleashed ingenuity and innovation of our local businesses will go a long way to restoring our prosperity. I hope today's conference will help.

As you move forward, know that I and everyone at the Center will be working to help you do what you do best – to export goods, create jobs, and help Connecticut return to prosperity. We are here for you, do not hesitate to call on us. Thank you so much, and have a great conference.