President Obama Announces New Manufacturing Initiative

222345President Barack Obama has announced the creation of a new initiative that aims to improve and grow the country’s existing manufacturing industry through “smart manufacturing.”

When speaking at the annual SelectUSA Summit, President Obama said the government will provide some 200 different manufacturing partners with roughly $140 million in funding to develop new technologies, techniques and procedures in the manufacturing industry. The purpose of this initiative is to improve energy efficiency in the manufacturing industry through the use of smart sensors, Eco-friendly materials, waste-reduction policies, and improved productivity and efficiency.

During his speech, President Obama said the Smart Manufacturing Leadership Coalition would receive $70 million private donations as well as $70 million in funding from the Department of Energy (DOE). This coalition contains experts in the manufacturing industry, representatives and other professionals. It will lead the newly proposed Smart Manufacturing Innovation Institute along with the help of the DOE.

President Obama reiterated that no country can “match our competitiveness” in the manufacturing industry. He also said that the U.S. is home to more entrepreneurs and super-computing than any other country. Because of this, it’s important for the U.S. to continue developing and improving its manufacturing industry.

According to a press release published by the White House, the new Smart Manufacturing Innovation Institute “will focus on innovations like smart sensors that can dramatically reduce energy expenses in advanced manufacturing, making our manufacturing sector strong today and positioning the United States to lead the manufacturing of tomorrow, helping sustain the resurgence of U.S. manufacturing currently underway.”

The U.S. manufacturing industry — like all industries — has seen its fair share of ups and downs. In recent years, there’s been some concern among manufacturing executives that the industry was on the decline. However, it’s safe to say these concerns have since subsided thanks to improving numbers as of late. Since February 2010, the U.S. manufacturing industry has added more than 800,000 new jobs. The White House also revealed that a new survey of CEOs from the world’s leading companies declared the U.S. as being the most attractive country for investment opportunities for the fourth consecutive year. News such as this is a welcome change, as it indicates the country’s manufacturing industry is thriving once again. And with the President’s new initiative, we’ll likely see even stronger numbers in the months and years to come.

The new manufacturing hub is being built in Los Angeles, California, although there’s no official date announced yet for its opening. It is the ninth manufacturing hub initiated by President Obama.

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