Made in America: Inside the Manufacturing Enhancement Act

President Obama signed the Manufacturing Enhancement Act of 2010 into law yesterday. The new Act aims to create jobs and strengthen manufacturing as a key driver of economic recovery. The White House Blog explains how the Manufacturing Enhancement Act works:

“To make their products, manufacturers — some of whom are represented here today — often have to import certain materials from other countries and pay tariffs on those materials. This legislation will reduce or eliminate some of those tariffs, which will significantly lower costs for American companies across the manufacturing landscape — from cars to chemicals; medical devices to sporting goods.”

Dennis Slater, president of the Association of Equipment Manufactures (AEM) was pleased with the Act, but recognized that it’s just one small step in the battle to level the playing field for equipment manufacturers that seek to export American-made products.

“Some people believe that passing a free trade agreement months before the mid-term election is politically risky,” Slater said in a statement on AEM’s website. “There is much more risk, however, in delaying the opportunity for American farmers and manufacturers to create jobs in the U.S. by exporting their products to new markets around the world.  One very direct way to do this is by passing the pending free trade agreements with South Korea, Panama and Columbia.”

Manufacturing as a whole lost 3,864,000 between 2000 and 2008. The sector has gained 183,000 jobs this year.

“Some suggest this decline is inevitable, that the only way for America to get ahead is to leave manufacturing communities and their workers behind.  I do not see it that way,” said President Obama, just before signing the Act. “The answer isn’t to stop building things, to stop making things; the answer is to build things better, make things better, right here in the United States.  We will rebuild this economy stronger than before and at its heart will be three powerful words:  Made in America.”