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If American Manufacturers Keep Jobs, So Does Obama

Key manufacturing states are also swing states that could make or break Obama's re-election

February 21, 2012 RSS Feed Print

Ohio, Michigan, Wisconsin, Indiana and Iowa: Those are the five states with the largest proportion of workers in manufacturing, according to U.S. Census figures. They all voted for Obama in 2008. And four of those five—with the exception of Indiana, which is leaning Republican—are considered toss-ups in this year's presidential election.

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The resurgence of manufacturing jobs is sure to be a key storyline in the presidential election. The White House has taken ownership of the industry's newfound strength, repeatedly touting that after decades of job losses, manufacturing has gained 404,000 jobs on President Obama's watch, most of it related to auto and machinery production. Keeping those jobs coming—and convincing voters of his part in creating those jobs—will be of critical importance to Obama's reelection efforts. But if those jobs grow, the Republican candidate will be hard-pressed to fight back.

It is undeniable that manufacturing in the U.S. is seeing renewed growth. The recent job gains have given the manufacturing industry "a great deal of optimism," says Brad Holcomb, chair of the Manufacturing Business Survey Committee at the Institute for Supply Management, which releases the monthly manufacturing purchasing managers' index. "I won't even say 'cautious optimism' anymore—it's really just kicking in that, barring some global event, we're going to continue to grow over the next few months and this year," says Holcomb.

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However, exactly how much credit President Obama can take for the latest bump in manufacturing jobs is debatable. For example, even though he often touts the success of the auto company bailout, emergency loans to U.S. auto companies began in 2008, under President Bush. And though General Motors has strongly recovered with the aid of that money, Ford Motor Company has bounced back from a $14.6 billion loss in 2008, despite taking no bailout funds.

It is also difficult to draw a direct line between Obama's efforts and other factors that have also contributed to the rise in manufacturing jobs. Falling labor costs in the U.S., increased quality of American manufactured goods, and favorable exchange rates have all also contributed to manufacturing growth, says Chad Moutray, chief economist at the National Association of Manufacturers.

In addition, there are doubts about the president's latest manufacturing initiative, which aims to create tax incentives for manufacturers who create factory jobs in the U.S. Former Secretary of Labor Robert Reich, who endorsed Obama in 2008, expressed his doubts about the plan in a Huffington Post commentary last week. Reich flatly stated that "American manufacturing isn't coming back," noting weaknesses elsewhere in the industry, like declining wages, not to mention the fact that there are still 5.5 million fewer manufacturing jobs than in 2000.

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Even though fewer than one-fifth of the workers in any given state work in manufacturing, according to 2010 Census figures, emphasizing manufacturing gains can be effective in gaining the favor of all voters.

"I think it's effective as long as the jobs continue to come," says Jennifer Lawless, associate professor in American University's Department of Government. Growth in manufacturing, she says, "boosts the economy in those states [where manufacturing is a key industry], and it's appealing to all of the voters in those swing states."

Emphasizing manufacturing is particularly important for the president, says Lawless, because many workers in manufacturing are "blue-collar Democrats," with loyalties that are not necessarily tied to socially liberal values. This means that being able to make a strong jobs argument will be an important tactic if Obama is to win over these voters, to whom Republicans might otherwise appeal.

Tags:
manufacturing,
economy,
Obama administration,
Barack Obama

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There is certainly an inherent need for us to keep our manufacturing jobs here and not lose out to overseas production. Jobs here, are a top priority particularly in this sector as it is one that is hurt the most. However to accomplish this, we need to make it easier and more sensible for companies to want to produce here. Even with all the tax breaks, it is more likely the case that even with them the regulations and cost of compliance will be more daunting than it is worth to remain on these shores (http://eng.am/sTM3nH). This goal is certainly attainable if we get regulations to work in harmony with businesses both large and small across the board. We won’t get in our own way if we do so now.

Florian Schach of NY 11:47AM February 22, 2012

What resurgence??? A few companies (like Caterpillar) have decided to build a few plants here, but most are still exporting manufacturing jobs to CHINA. What these lying liberal news journalists mean by a "resurgence of manufacturing" is that companies like Apple have done well recently. But Apple designs in America and builds in China. That does not translate into a net gain of employment for average people, especially those who are unemployed. Stop lying to me you scum sucking news journalists. Tell me the truth and I will respect you.

Mary Waterton of CA 1:18AM February 22, 2012

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