Speeches

Remarks as prepared for delivery: Brian P. McGowan, Deputy Assistant Secretary of Commerce for Economic Development, $333,000 City of Fremont, California Grant

Ohlone College Newark Center

REMARKS AS PREPARED

Thank you for that introduction.

Congressman Stark, thank you for your participation today. And more importantly, for your leadership in helping to create an environment in this region where innovation and entrepreneurship are creating the jobs of the future.

I also want to thank Deputy Assistant Secretary for Domestic Operations Ro Khanna and the International Trade Administration’s U.S. Commercial Service for hosting today’s event.

There is a great article in the current issue of The Economist which I read last night on the plane. It’s called “Export or Die”.

It refers to the need for our country to increase exports in order to hasten economic recovery. “Export or Die”… I thought that said it all.

Dartmouth College noted that only 4% of all American firms and 15% of American manufacturers do any exporting at all.

And 80% of America’s total trade is conducted by just 1% of firms that import or export.

That has to change if we are going to be competitive in the 21st century.

Secretary Locke and the Commerce Department are playing a lead role in implementing President Obama’s recently announced National Export Initiative - NEI, which aims to double American exports over the next five years and support two million new jobs here at home.

Under the NEI, there is going to be:
• More credit available for exporters
• More government trade promotion and advocacy
• And a sharper focus on knocking down the barriers that prevent U.S. companies from getting free and open access to foreign markets.

This is critical to states like California who ranks number one in FDI and continues to rank first in the nation in exports of manufactured goods.

California will be critical to reaching that national goal of doubling exports and can serve as an example to other states on how to diversify their economies and broaden their market reach.

In addition, the President has prioritized the promotion of innovation and entrepreneurship.

This Administration seeks to not only usher in a new expansion, but an expansion that will be:
• More broad-based
• More enduring
• And more rewarding than previous ones.

We all know that:

America is not lacking for groundbreaking ideas in this country. Nor are we short on smart entrepreneurs willing to take risks.

What we need to do is get better at connecting the great ideas to the great company builders.

And that’s why today’s event is so important. We have an opportunity to look at this region and the clusters of businesses and industries that have the greatest chance of success here – and target them and show them that this is where they need to be.

Economic Clusters are a proven concept that has been embraced all over the world. They have had great success building jobs and growing economies – even in the most difficult places to do so.

And because we know they work, the burning question then becomes:

How do we create more of them?

The answer to this question isn't just important to me, or to those of you gathered here today.

It’s important to the millions of Americans who -- even before this recession began -- were falling behind.

Since 2000, most families have seen their wages stagnate or decline, while the necessities of life like health care and tuition skyrocketed.

We can point to a variety of reasons why this has happened – but a prime culprit has been the decline in the type of good, skilled, well paying jobs that once helped America build the strongest middle class in the history of the world.

So, America’s challenge isn't just to emerge from the recent recession.

It is to lay a new foundation for sustainable long-term economic growth.

The President knows that to achieve this broad-based expansion we will need to grow the kinds of businesses that create the best-paying jobs within these clusters.

They’re the businesses that economists call “gazelles”— high growth, high potential businesses.

And, as a Californian, I know there are plenty of examples in this great State.

These non-traditional ventures are found in science and technology parks, laboratories, and business incubators - Places where entrepreneurs, scientists, product developers, and venture capitalists are clustered together and can work together.

Places where innovations can not only be developed, but also brought to market. Where new businesses have a chance to grow . . .

And this is not theoretical. It is happening today as many of you well know.

The reality is that in times of economic disruption, like we are experiencing now, there are great opportunities. The economy that went into the recession will be fundamentally different than the one that comes out of it. To me, that’s not something to be feared but a mandate for immediate action.

So if a local community is able to prepare for that and plant that seed - if it’s able to create the climate for innovation and build a critical mass - then private investment will follow. Innovation will follow. And ultimately, jobs will follow.

So, the President’s export and innovation policies are extremely important to economic recovery and, specifically, to our manufacturing sector.

I was actually very involved in the NUMMI facility closing when I was with the Schwarzenegger Administration.

One of the first things we did under the Governor’s direct leadership was to reach out to the White House and the various federal agencies that we thought could help.

Governor Schwarzenegger himself made several calls to Toyota executives in an attempt to sway their decision. He also directed all State Agencies to pull resources together to focus on this issue.

And most importantly, the local and regional economic development community along with the unions did an extraordinary job pulling together partners together.

At first it was a full court press to keep Toyota from closing the facility.

But when it became clear that they would not reconsider, then focus shifted on how the facility and property could be reused and repositioned.

This Administration sees this NOT just as Fremont, California problem or a Moraine, Ohio problem or a St. Louis County, Missouri problem (all communities facing the exact same thing that Fremont is facing by the way) but as an American problem.

And I believe that’s the reason you are seeing such an unprecedented, inter-departmental, multi-jurisdictional approaches to helping communities such as this.

So, today, I am pleased to announce that the EDA will provide a $333,000 grant to support the preparation of a comprehensive site strategy to guide the reuse of the former NUMMI - site in Fremont, California.

The NUMMI - site closure in Fremont is representative of the need for many communities across the US, impacted by auto plant closures, to reinvent themselves and find new job growth opportunities in emerging high growth industries with global markets.

I’ll close by saying that the Economic Development Administration is committed helping the City of Fremont and other communities located throughout the NUMMI supply chain adjust to this closure and create new jobs.

Now, if I could have Congressman Stark, Fremont Mayor Bob Wasserman, and Ro join me.

On behalf of the President of the United States, I am pleased to present this EDA check to the City of Fremont to help prepare a strategic plan that will bring new business and job opportunities to the region.

We look forward to continuing to work with you.