REMARKS AS PREPARED FOR DELIVERY SANDY K. BARUAH ASSISTANT SECRETARY OF COMMERCE FOR ECONOMIC DEVELOPMENT - CUMMINS, INC. - COLUMBUS, INDIANA

MONDAY, APRIL 7, 2008

AS PREPARED FOR DELIVERY

Introduction by Joe Loughrey

Thank you, Joe, for that kind introduction, and for the invitation to be here at Cummins today, which is a follow-up to the very enjoyable visit Commerce Secretary Carlos Gutierrez’s had here at Cummins in February.

My visit to Columbus and Cummins today is great example of how globalized the economy is today. I first met Joe Loughery on bus in Japan last year. Joe and I were there as part of a National Association of Manufacturers’ delegation to Japan to meet with government leaders and the Chairman of Toyota.

During that visit, I learned more about Cummins’ impressive dedication and involvement in the local community and the good things that are happening in Southeast Indiana – and I am very much looking forward to seeing all that you have planned for me today. And Joe, I want to thank you not only of the invitation you’ve extended to me and the Department of Commerce team, but I want to thank you for your strong leadership helping guide one of America’s great companies.

The most successful examples of economic and community development that I have seen in my travels across the United States as the head of the Economic Development Administration have been characterized by an active and engaged private sector. Too often, we still find areas where economic, workforce and community development are the domain of government entities talking to other government entities.

But unless the private sector is ready, willing and able to invest in a community, economic growth simply will not occur, regardless of how much government spends. The private sector should not just have a seat at the table, but should be actively engaged as full partners in strategies for economic growth. That is clearly the case here in Columbus thanks to the leadership of Cummins.

As we discuss economic development strategies and successes in Southeast Indiana today, it is helpful to consider the national economic context. While the economy is slowing, it is still growing, with GDP increasing 2.2% last year. One of the reasons for this continued economic strength is our success in exporting American goods and services. International trade has always been important to economic development, and it is becoming increasingly important in the 21st century, which is why it’s such a key element of President Bush’s pro-growth agenda.

In 2007, American companies and workers scored a record-breaking $1.6 trillion in goods and services exports, 12% over the record in 2006.

Here in Indiana, exports in 2007 totaled $26 billion, up 58% from 2003. Indiana companies are selling their goods and services in 196 countries.

A great example of American success in exports is Cummins, which serves customers in more than 160 countries. Cummins is producing world-class products that the world is demanding, and is, as we all know, one of the best reasons to buy a Dodge pick-up truck.

The importance of trade to our companies and workers is a key reason why the Bush Administration has worked hard to open foreign markets to US goods through Free Trade Agreements – FTAs.

When President Bush took office, we had Free Trade Agreements with just 3 countries – Israel, Canada and Mexico. Today, we have free trade agreements with 15 countries with 3 more pending Congressional approval, including an FTA with Columbia which might be very beneficial to Cummins.

FTAs help our companies, farmers, manufacturers and workers sell American goods and services to new markets around the world. And with our US economy slowing – still growing – but growing at a slower rate – it is more important than ever to ensure that American companies, farmers and workers can sell their products to world markets.

The other thing that you are focused on which is critical to promoting long-term economic development is education. Here, you have some challenges that you are confronting directly. You are addressing the issues of your drop out rate and college degree attainment level – both of these are critical in a global economy where our competition is becoming better educated and more advanced everyday.

We need worker who are not only skilled craftsmen – which will continue to be important – but workers who can think and problem-solve – workers who can handle the most sophisticated machines on the planet, because that is the world of advanced manufacturing today.

There is no better example than what’s happening right in Southeast Indiana to highlight the need to understand and take advantage of the opportunity presented by the worldwide marketplace. This region, and this company, is a great example of how to do things right, and I’m looking forward to learning more as the day goes on. Thank you for the invitation to be with you today.

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