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Manufacturing at the crossroads: good economic news was tempered by continuing concern over the erosion of service centers' customer base and the resulting loss of American jobs, during the Metals Service Center Institute's recent annual meeting. Following are highlights from the opening panel on manufacturing issues and an economist's more optimistic view.

Article Excerpt
Addressing a crowd of anxious MSCI members last month in San Francisco, a Commerce Department official gave the Bush administration high marks for its support of American manufacturing. Other panelists were not as positive.

James J. Jochum, assistant secretary for Import Administration, highlighted the president's policies on economic growth and development, which he claimed are at the top of the Bush agenda.

Sensitive to his audience's concerns about the loss of U.S. manufacturing jobs, Jochum gave President Bush credit for taking decisive action in response to the recession and the 9/11 terrorist attacks by cutting taxes to stimulate the economy and job growth.

Since last June, unemployment has improved to 5.7 percent, from 6.3 percent; 750,000 new jobs were created (September March); the economy grew at an average 5.5 percent rate for the past three quarters; and consumer spending continues to sustain the recovery, he noted.

"All of these signs offer the promise of better days for American businesses and workers," Jochum said, "but the administration won't be satisfied until all individuals seeking work find jobs. More must be done, particularly for the manufacturing sector."

Administration officials have talked with manufacturers across the country who have expressed concern about future tax relief, rising health care costs, legal reform, the burden and expense of regulatory compliance, the need for a more affordable and reliable energy supply, and stronger enforcement of free trade agreements.

In response, the Bush administration named Al Frink of Fabrica International, Orange County, Calif., to the new post of Assistant Secretary of Manufacturing and Services. The president also formed a Manufacturing Council to give manufacturers of all sizes a stronger voice in Washington. Don Wainwright, chairman and CEO of Wainwright Industries in St. Louis, was named to head the new council.

The manufacturing sector represents 14 percent of U.S. GDP and 11 percent of total private sector employment, Jochum noted. "Manufacturing accounts for most of the innovation and advancement in technology that will create jobs in the future. Promoting trade in open markets is the key piece of the president's agenda to promote economic growth...

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