Remarks of SANDY K. BARUAH, ASSISTANT SECRETARY OF COMMERCE FOR ECONOMIC DEVELOPMENT, UNIVERSITY OF NEW MEXICO MANUFACTURING TECHNOLOGY TRAINING CENTER, ALBUQUERQUE, NEW MEXICO

FRIDAY -- JANUARY 6, 2006

(As Prepared for Delivery)

Introduction by: Mike Skaggs, President, Next Generation Economy

Thank you, Mike, for that kind introduction. It’s good to see you again.

On behalf of President Bush, I want to thank you all for being here today – and Mike, a special thanks to you and your colleagues at Next Generation Economy, Inc for your leadership in gathering this distinguished group. I would like to also thank President Louis Caldera and Terry Yates of the University of New Mexico for their support of this event.

This assemblage is a testament to several things. It is certainly an acknowledgement of the important partnership between the Department of Commerce and the State of New Mexico. Since 2001, the Commerce Department’s Economic Development Administration has invested over $30 million in New Mexico. The result of this partnership is something we can all be proud of: over $540 million in private sector investment and thousands of jobs created and saved.

It is also a salute to the power of public-private partnership and cooperation. We all know that for economic growth to occur, the private sector must be ready, willing and able to invest its capital in a community. While the government can play an important supporting role, at the end-of-the-day, it is America’s private sector that provides the jobs that put food on the table, and pays the mortgages and college tuition for most Americans.

As President Bush has said, “the role of government is not to create jobs, but to create the environment where jobs can be created.” And I’m proud to be here today as part of President Bush’s team helping to create that environment that supports job creation.

And here today, we have a stellar example of how this partnership is working for the people of New Mexico.

Let me congratulate Rusty Schmit, CEO of Advent Solar, and James Gee, Advent Solar’s Vice President and Chief Technology Officer, for their successes and their recent announcement of plans to open a 1,000-employee facility at Mesa del Sol.

This new facility has the potential to anchor a new solar industry cluster in this region, and EDA is proud to have been a partner in creating the Manufacturing Technology Training Center, here at University of New Mexico, that has helped nurture Advent Solar, and other promising companies, into the successes that they have become.

The Manufacturing Technology Training Center’s success represents a “best practice” example of how the federal government can work successfully with local governments and institutions to create the environment necessary to attract businesses and bring new jobs to this region.

Later today, I will be visiting the Sandia Science and Technology Park, which has benefited from the Economic Development Administration’s partnership with Technology Ventures Corporation. This technology park has helped 21 leading edge companies get started or grow more rapidly right here in New Mexico, and is a great example of the incredible asset the Sandia National Labs are to this area. These are the type of higher-skill, higher-wage jobs we are all striving for.

I look forward to the tour that my friends Jackie Moore and Sherman McCorkle have in store for me.

I am pleased to be in New Mexico today with very encouraging news about the vibrant U.S. economy. During 2005, thanks to the tax relief championed by President Bush, the American entrepreneurial spirit and our good, old fashioned work ethic, the American economy remains the envy of the world.

Earlier this morning, the Government released new jobs figures – payroll employment rose by 108,000 in December. Overall, the economy has created 2 million jobs over the past 12 months – and nearly 5 million since May 2003. Here’s the big news: the unemployment rate has fallen yet again, and now stands at 4.9 %.

Today's economic growth is steady and strong. The unemployment rate of 4.9 % is lower than the average of the 1970s, 1980s, and 1990s. And while the employment news is very positive, there is more good news to report:

GDP growth is strong: The economy grew at a 4.1 % rate in the third quarter, the 10th consecutive quarter in which GDP grew at a rate above 3 %. This is strong GDP growth.

Consumers are confident: The Conference Board index of consumer confidence surpassed expectations and rose to 103.6 in December as consumers felt the benefits of falling gas prices and continued job growth. Other surveys, such as those from the University of Michigan and the Rasmussen Group mirror this positive consumer outlook.

Incomes are rising: Over the past 12 months, real disposable personal incomes were up 1.5 %. Since 2001, real after-tax income per person has risen 7 %.

Manufacturing continues to expand smartly: The Institute for Supply Management (ISM), a private research group, reports manufacturing activity grew for the 31st consecutive month in December, and the ISM forecasts continued growth. The Federal Reserve Bank reports similar positive news for America’s manufacturing sector.

Durable goods orders not just increased, but surged in November: New orders for durable goods increased 4.4% in November, far surpassing expectations of 1.2 % growth, and over the past 12 months, orders have increased more than 12 %.

Productivity growth is strong: A 4.7 % increase in the 3rd Quarter and 3.4 % overall since the end of 2000. This is solid, sustained growth.

Construction spending is at an all-time high: Construction spending rose in November to a record high of $1.15 trillion, and has risen 7.8 % over the past 12 months. Housing starts surpassed 2 million units – nearing a 20-year high. More Americans now own their homes than at any time in the Nation's history, and minority home ownership is at a record high.

Inflation remains in check: The Consumer Price Index (CPI) fell by 0.6 % in November – exceeding market expectations – reflecting a dramatic decline in energy prices since Hurricane Katrina.

The news is good, not just nationwide, but here in New Mexico as well. Over 59,000 new jobs have been added to the state of New Mexico in the last two and a half years. And the state’s unemployment rate – at 5 % – is close to historic lows.

President Bush's agenda for 2006 and beyond will ensure continued opportunity for America's workers and entrepreneurs. To maintain the economy's momentum, the President has called upon Congress to make tax relief permanent and restrain spending to remain on track to cut the deficit in half by 2009.

The President is advancing pro-growth policies to reduce America's dependence on foreign oil; help workers find affordable healthcare; strengthen rules governing pensions; reform our legal system; and give more Americans control over their lives by expanding ownership. To ensure that Americans have the skills needed to fill the jobs of the 21st century, the Nation's education system and job training programs must prepare workers for new opportunities. America must maintain its economic leadership in the world and open foreign markets to American goods and services.

The economic numbers released today are very strong, and clearly show that the President Bush’s policies are working. Of course, there is more work to be done. President Bush and his team will not be satisfied until every American who wants a job can find a job.

My role in the Bush Administration is to help ensure that President Bush’s vision that no geographic area or demographic sector of America be left behind when it comes to participating more fully in the American dream.

Under my stewardship of the Commerce Department’s Economic Development Administration, we will build on our past successes and focus even more strongly on the principles that support a healthy and growing national economy. I believe these principles are:

Innovation. Innovation drives our economy. Innovation drives productivity, and a nation’s productivity is directly tied to its economic growth and overall standard of living. Innovations that are occurring as I speak at places like the Sandia Labs, the University of New Mexico and businesses across New Mexico will fuel our economic growth and EDA is committed to supporting innovation, especially in those areas where America’s prosperity has not been fully realized.

Entrepreneurship. Entrepreneurship is in our blood as Americans. The Jefferson Starship sang that “we built this city on rock and roll” but in reality our cities were built by entrepreneurs both large and small. I never forget that jobs are created by entrepreneurs, not government.

Regional Competitiveness. It is time – past time in fact – that we stop looking at areas as a political unit -- a county, a city, a state. We need to adopt a regional approach to our development strategies. Gone are the days that we can bifurcate rural development strategies with urban development. We can no longer pretend that the city next door is not part of our regional economy simply because it is in a different county or even a different state.

We must acknowledge in today’s world where IBM laptops are now made by a Chinese company, where if you drive a Volvo station wagon you drive a Swedish Ford built in Belgium, your mid-life crisis BMW roadster is built in South Carolina, where doctors in America can perform surgery in Africa without ever getting on an airplane, and a Blackberry allows you to be just as connected walking down the streets of Oaxaca, Mexico as you are walking down the Magnificent Mile in Chicago – we are interconnected.

In our interconnected world, our competition is not next door. The areas around us are our strength, not our competitors. Regional Competitiveness is simply the Tom Friedman, The World Flat, 21st Century version of what we all learned on the school playgrounds of our youth: There is no “I” in T – E – A – M and we are stronger working together than when we stand alone.

Let me put try to pull this together: Most patents and innovations in America come from small and medium sized companies, the type they are growing at the Sandia Science and Technology Park. Most jobs in America are with small and medium sized companies. So imagine the power of public-private partnership across the country focused on innovation and entrepreneurship, working collaboratively in a regional fashion, building on shared regional strengths…imagine the power of this type of approach, and think of what this means for the health of our communities.

Its is an exciting vision and one that President Bush knows we can achieve and I am proud to be a part of his team – as I am proud and pleased to spend this morning with you in the beautiful State of New Mexico.

Thank you for your good works and on behalf of President Bush and Commerce Secretary Carlos Gutierrez, I wish you and your families a happy, healthy and joyous New Year.

Sandy Baruah News Clip.New Mexico KOBTV4, 57seconds - requires Windows Media Player.