| U.S. Assistant Secretary of Commerce for Economic Development David A. Sampson - Kansas City Area Development Council Quarterly Meeting September 16, 2004 | | Thank you Bob for that kind introduction, and for the invitation to be here with you this morning. It's a great pleasure to be in Kansas City, here at the Development Council's Quarterly meeting.I want to make a few observations about the trends in our nation's economic performance, and, second, discuss critical elements in building regional prosperity. Then I want to open it up to you for your questions.As a national economic context for discussions on strategies to strengthen the Kansas City Area's economy, it is particularly good to come here today and be able to say that the economy is strong and getting stronger. For twelve consecutive months American payrolls have added jobs. The 144,000 added in August, combined with upward revisions for June and July, brings the total to 1.7 million new jobs since this time last year. Over the past twelve months we have seen homeownership in America reach record highs. Interest rates and inflation remain at historic lows.We have seen improvement in the hard hit manufacturing sector with the addition of more than 100,000 jobs since February. The Wall Street Journal reported this morning that manufacturing output rose 0.5% in August. With upward revisions to July data, the sector has regained all the ground it lost in a downturn that began four years ago. And we have seen unemployment fall in all but one of the 50 states.A key contributor to these numbers is the President's Jobs and Growth tax relief package, which has raised the level of economic activity and productivity, resulting in higher incomes and living standards for all American workers.Economy.com this week stated in a review of policy developments that, "If monetary policy and fiscal policy had remained unchanged during the Bush presidency, the recession that began in early 2001 and ended later in the year would have likely instead lasted through much of 2003. The economy would still be shedding jobs."But, as encouraging as these signs are, we are neither satisfied nor complacent. President Bush recognizes that the American economy is changing, and he knows that during these times of change, America's economic growth is not felt equally throughout the nation.In communities where traditional industries do not employ as many workers as they did a generation ago, opportunity can seem more distant. President Bush believes that government must be on the side of the people in these communities.The President believes that America's economic prosperity should extend to every part of our country, and he has set a positive vision for the federal government's role in helping reach this goal. He has proposed a new "Opportunity Zone" initiative to assist America's transitioning communities and regions - those areas that have lost a significant portion of their economic base as a result of our changing economy, for example, due to loss of manufacturing or textile employment, and are now in the process of transitioning to a more diverse, broad-based 21st century economy.The key challenge for KCADC and all economic development organizations is to focus on key leverage points to strengthen and diversify regional economies. Let me suggest three key leverage points for your consideration.Broadly speaking, innovation is the only sustainable source of regional prosperity, not protectionism, economic isolationism or pessimism. To position regions for success, leaders must emerge who are forward looking. Communities need to:1) Create an attractive business climate: President Bush is leading the way at the national level, but state and local governments need to step up as well. This means restructuring tax systems and regulatory environments that encourage investment and innovation rather than holding it back. The key question for President Bush for any economic policy is "does this make it easier to compete?"2) Collaborate: Political and geographic boundaries are losing relevancy as virtually every product or service developed today is for a worldwide market. Active engagement in a worldwide economy grows markets and creates more jobs right here in the U.S.Ten million American jobs depend on exports, and roughly 20% of all current U.S. jobs depend on trade. Ninety-five percent of the world's customers live beyond our borders. And, foreign companies employ 6.4 million Americans. In 2003, $86.6 billion flowed into the U.S. in the form of foreign direct investment.Competing worldwide, now more than ever, requires regional collaboration among industries, cities, counties and states. All stakeholders need to define their shared interests and capitalize on regional assets. Universities, for example, are powerful assets for regional economic development, and we need to intensify our efforts to connect knowledge creators with knowledge commercializers by broadening university engagement within their communities.3) Create a world-class workforce: Two-thirds of America's economic growth in the 1990s resulted from the introduction of new technologies, and 60% of the new jobs created in the 21st Century will require post-secondary education held by one-third of America's workforce.Regions must invest in training and retraining of their students and workers to prepare them for the job demands of the future. One important way to do this is to link economic development and workforce development efforts.On this front, the President's "Jobs for the 21st Century Initiative" will prepare our economy and workforce for new challenges by expanding access to post-secondary education and fostering job-training partnerships between community colleges and employers in industries with the greatest demand for skilled workers.The President's FY 2005 budget proposes $23 billion for job training and employment assistance, $250 million to help community colleges train workers for rapidly expanding industries, and $1 billion for training and benefits to assist workers dislocated by imports or shifts in production outside the United States.The President is committed to promoting effective partnerships that enable all workers to obtain the education and training necessary to succeed in the twenty-first century workforce.And let me congratulate Kansas City for being selected by the National Association of Manufacturers (NAM) to serve as the pilot city for launching the "Dream It, Do It" campaign early next year, which will take a major step in changing the image of manufacturing and bring more bright, young people into the manufacturing workforce. They could not have picked a better city.We are at a critical junction in history. In contrast to the President's vision for the role of the federal government in helping communities achieve economic prosperity, there are other voices in Washington that advocate economic retreat, protectionism, and isolationism—as if we could build prosperity by isolating ourselves from the world.But, again, the path to prosperity is not through isolationism, but through engagement in a worldwide economy. Regional, innovation-led development strategies are the path for successful engagement, and are the key to strengthening this changing economy, and creating new jobs as the President's policies are currently doing.I wish you all the best, and pledge our continued support as you implement these strategies in this leading region. Thank you again for inviting me to be with you today, and I would be more than happy to address any questions you may have. |
|   |
