TRADE ISSUES, POLICIES AND LAWS TRADE ADJUSTMENT ASSISTANCE FOR FIRMS PROGRAM ELEMENTS AND EFFECTIVENESS No part of this digital document may be reproduced, stored in a retrieval system or transmitted in any form or by any means The publisher has taken reasonable care in the preparation of this digital document, but makes no expressed or implied warranty of any kind and assumes no responsibility for any errors or omissions No liability is assumed for incidental or consequential damages in connection with or arising out of information contained herein This digital document is sold with the clear understanding that the publisher is not engaged in rendering legal, medical or any other professional services TRADE ISSUES, POLICIES AND LAWS Additional books in this series can be found on Nova’s website under the Series tab Additional E-books in this series can be found on Nova’s website under the E-book tab TRADE ISSUES, POLICIES AND LAWS TRADE ADJUSTMENT ASSISTANCE FOR FIRMS PROGRAM ELEMENTS AND EFFECTIVENESS GRIFFIN HAYWARD EDITOR New York Copyright © 2013 by Nova Science Publishers, Inc All rights reserved No part of this book may be reproduced, stored in a retrieval system or transmitted in any form or by any means: electronic, electrostatic, magnetic, tape, mechanical photocopying, recording or otherwise without the written permission of the Publisher For permission to use material from this book please contact us: Telephone 631-231-7269; Fax 631-231-8175 Web Site: http://www.novapublishers.com NOTICE TO THE READER The Publisher has taken reasonable care in the preparation of this book, but makes no expressed or implied warranty of any kind and assumes no responsibility for any errors or omissions No liability is assumed for incidental or consequential damages in connection with or arising out of information contained in this book The Publisher shall not be liable for any special, consequential, or exemplary damages resulting, in whole or in part, from the readers’ use of, or reliance upon, this material Any parts of this book based on government reports are so indicated and copyright is claimed for those parts to the extent applicable to compilations of such works Independent verification should be sought for any data, advice or recommendations contained in this book In addition, no responsibility is assumed by the publisher for any injury and/or damage to persons or property arising from any methods, products, instructions, ideas or otherwise contained in this publication This publication is designed to provide accurate and authoritative information with regard to the subject matter covered herein It is sold with the clear understanding that the Publisher is not engaged in rendering legal or any other professional services If legal or any other expert assistance is required, the services of a competent person should be sought FROM A DECLARATION OF PARTICIPANTS JOINTLY ADOPTED BY A COMMITTEE OF THE AMERICAN BAR ASSOCIATION AND A COMMITTEE OF PUBLISHERS Additional color graphics may be available in the e-book version of this book Library of Congress Cataloging-in-Publication Data ISBN: (eBook) Published by Nova Science Publishers, Inc † New York CONTENTS Preface Chapter Chapter Chapter Index vii Trade Adjustment Assistance for Firms: Economic, Program, and Policy Issues J F Hornbeck Trade Adjustment Assistance: Commerce Program Has Helped Manufacturing and Services Firms, but Measures, Data, and Funding Formula Could Improve United States Government Accountability Office Trade Adjustment Assistance for Firms Program: Fiscal Year 2012 Annual Report to Congress Economic Development Administration 15 73 131 PREFACE Trade liberalization can enhance the economic welfare of all trade partners, but in adjusting to greater competition, many import- competing firms and workers face difficult problems Since 1962, Congress has responded to these adjustment costs by authorizing trade adjustment assistance (TAA) programs for workers, firms, and farmers, and continues to monitor their performance and amend the governing legislation This book discusses the Trade Adjustment Assistance for Firms (TAAF) program, which provides technical assistance to trade- affected firms to help them develop strategies to remain competitive in a dynamic international economy Legislation has been introduced in the 113th Congress that would reauthorize TAA programs, which are set to expire on December 31, 2013 President Obama also has supported TAA reauthorization, linking it to renewal of Trade Promotion Authority (TPA) Chapter – Trade liberalization can enhance the economic welfare of all trade partners, but it also causes adjustment problems for some importcompeting firms and workers Congress has responded to these problems with trade adjustment assistance (TAA) programs for workers, firms, and farmers This report discusses the TAA for Firms (TAAF) program and related policy issues Congress first authorized TAA in 1962, including a new firm and industry assistance program administered by the Economic Development Administration (EDA) of the U.S Department of Commerce It provides technical assistance to help trade-affected firms make strategic adjustments to improve their global competitiveness The Trade Adjustment Assistance Extension Act of 2013 (S 1357) was introduced in the 113th Congress, which would maintain current annual funding levels ($16 million for the firms viii Griffin Hayward program) through 2020 President Obama also has supported passage TAA reauthorization, linking it to renewal of Trade Promotion Authorization (TPA) EDA has released four annual reports under the new statutory requirements that point to administrative and operational improvements The FY2012 TAAF annual report notes that two years after completion of the program, on average, firm sales increased by 26.8%, employment rose by 13.2%, and productivity increased by 11.9%, better outcomes than the benchmark manufacturing industry as a whole This outcome is reported as being particularly encouraging given TAAF firms have had such a high “survival rate,” and yet face the additional burden of all having to adjust to import competition compared to the benchmark Still these numbers varied significantly from the year before, and despite the high success rate for firms that “completed” the TAAF program, it is important to note that they represent only about half of all firms that had their adjustment proposals approved for assistance The rest left the program for numerous reasons without completing the adjustment plan and were no longer monitored To address the evaluation issue more completely, the Government Accountability Office (GAO) conducted a comprehensive evaluation of TAAF program in 2012 It found that EDA’s administration and evaluation efforts had improved markedly because of changes provided in the 2009 legislation GAO also confirmed EDA’s assessment that trade-impacted firms benefitted from specialized attention provided by TAAF assistance, but to a lesser extent GAO found a “small and statistically significant relationship between program participation and sales,” which was particularly relevant to smaller firms, albeit also highly correlated with firms operating in high-growth industries Employment effects were not found to be statistically significant Chapter – Over the past decade, U.S imports of goods and services have almost doubled, reaching $2.7 trillion in 2011 Although trade expansion can enhance economic welfare, many firms and workers experience difficulties adjusting to import competition The TAA for Firms program assists tradeimpacted, economically distressed U.S firms in making adjustments that may enable them to remain competitive in the global economy The Department of Commerce’s EDA administers the $15.8 million program through 11 TAA Centers throughout the United States In 2009, the Trade and Globalization Adjustment Assistance Act, as part of American Recovery and Reinvestment Act, amended the TAA for Firms program and mandated that GAO review its operation and effectiveness GAO examined (1) the results of the legislative changes on program operations and participation, (2) the performance measures and data EDA uses to evaluate the program and what these tell us Trade Adjustment Assistance for Firms Program 123 development assistance early in 2012, including research and marketing material translation As a result of assistance from MWTAAC and TAAFfunded technical assistance, the manufacturer’s exports have grown dramatically and both sales and employment have increased over 90 percent in less than two years A Minnesota manufacturer of commercial and residential air filtration systems received TAAF-funded technical assistance between 2008 and 2011 for export-related quality certifications, testing and marketing material translation In addition, TAAF program technical assistance provided Management Information System (MIS) enhancement and training which has allowed the company to manage the expansion and control costs In the most recent year, the manufacturer has identified $77,659 of new export sales directly attributable solely to TAAF assistance New England Trade Adjustment Assistance Center (NETAAC) A Connecticut metal finishing firm, the largest full-service metal finisher in the Northeast, experienced a significant decline in sales due to increased foreign competition and a shrinking domestic market In 2010, the firm was certified for TAAF and with the assistance of NETAAC, prepared an AP to fund projects such as leadership training, a new website, upgraded marketing materials, establish lean manufacturing, and NADCAP, a critical certification that could potentially open many new markets for the firm After merging with another local Connecticut firm, they are now able to service a much larger market providing full-service metal finishing services As a result of TAAFfunded technical assistance, the firm has become stronger and more competitive, increasing sales by 20 percent and adding 20 more jobs A Rhode Island full-service contract manufacturer serving a diverse group of customers including electronic manufacturers of medical instrumentation, military electronics, oceanographic instruments, and commercial products was adversely affected by a combination of growing foreign market competition and the global recession In 2010, the firm was certified for TAAF and, with the assistance of NETAAC, prepared a business recovery plan (AP) to fund projects such as development of a strategic business plan, marketing and sales plan, MIS upgrades, and process improvement program Within one year of TAAF-funded technical assistance, the firm has realized a 10 percent increase in employment and a 15 percent increase in sales After successful realization of Lean Manufacturing and sales and marketing projects, the firm was able to capture new orders, increased the need for continuous improvement, and was able to lower cost of production by further streamlining their processes The 124 Economic Development Administration firm is now focusing on re-shoring efforts and committed to bringing jobs back to America New York State Trade Adjustment Assistance Center (NYSTAAC) A New York manufacturer of precision optical fabrication machines and systems was suffering from the adverse effects of foreign competition from Germany The combination of the foreign competition, coupled with the recent downturn in the economy, significantly reduced the firm’s sales revenues The firm needed to react to the continual loss of market share to foreign competition and did not have a formal strategic-based sales and marketing plan in place nor did it have the internal expertise to develop one In order to effectively recover from the adverse effects of foreign competition, the firm sought technical assistance from NYSTAAC At the time of TAAF certification, the firm had 35 full-time employees and annual sales of approximately $6 million In order to stop the decline in sales and employment levels, the firm with assistance from NYSTAAC and TAAF-funded technical assistance, developed a business recovery plan (AP) that included a formal sales and marketing plan In following the plan, the firm was able to achieve 85 percent growth in sales revenue to an annual rate of $12 million This in turn has resulted in the firm adding 17 new employees since the implementation of the plan An additional major outcome of the planning process was the recent expansion of the firm's manufacturing facility to accommodate new business A New York manufacturer of clipboards sought technical assistance from NYSTAAC to develop a business recovery plan (AP) to address inefficiencies with an outdated Management Information System (MIS) and production software, which when improved, would reduce deficits and increase productivity, resulting in higher output and increased sales Since the firm was certified for TAAF in 2008, their sales have increased approximately $3.4 million and they have been able to maintain the same employment level Northwest Trade Adjustment Assistance Center (NWTAAC) A Montana manufacturer of high performance laser diode and fiber optic control, test and measurement products used in research laboratories, telecommunication, and photonic production facilities received TAAF certification in 2005 based on a 74 percent increase in imports of these devices from China and Japan Implementation of TAAF-funded projects such as extensive CE product testing, lean manufacturing and training, and sales market analysis and development over a year period have resulted in firm Trade Adjustment Assistance for Firms Program 125 product expansion into European markets, and increased penetration into China, Japan, and Korea As a result of NWTAAC assistance and TAAFfunded technical assistance, as of the end of 2011, employment has stabilized and sales have increased 48 percent since certification, with export sales now comprising 50 percent of total sales, a 22 percent increase since entering the program An Idaho light duty manufacturer of sheet metal and plastic ventilation and roofing components was certified for TAAF in 2010 based on a 20 percent decline in sales resulting from increased imports from China, Canada, and Mexico TAAF-funded technical assistance projects thus far have included website redesign and a two‐phased search engine optimization project As a result of these projects the firm has gone from zero exports and internet orders to over 300 new orders per month to customers all over the U.S and Canada with about 75 percent of the orders coming from repeat customers This increase in sales of $400,000 from two years ago provides better profit margins with 10-to-15 percent of the sales going to Canada The firm has also increased employment by about 2.5 full time employees and is about to add another just for parcel packaging for the internet orders As an added benefit, this new nationwide customer base gives this firm a better idea of what people want, and these sales are much more profitable than their wholesale business Rocky Mountain Trade Adjustment Assistance Center (RMTAAC) Faced with intense foreign competition and an increasingly competitive market, a Utah manufacturer of plastic folding tables and chairs contacted RMTAAC in 2010 for assistance to improve the firm’s competitive position RMTAAC conducted a thorough business assessment and competitive analysis to identify strategic areas for improvement to build a more solid foundation for future growth The firm was awarded technical assistance through the TAAF program to target cost reductions in its manufacturing processes The firm has been able to utilize TAAF-funded technical assistance to shift its efforts to a firm-wide lean manufacturing initiative The firm implemented lean manufacturing to reduce wasteful or non-value added activities in the manufacturing process The firm has seen a 25 percent reduction in inventory carrying costs since applying lean manufacturing principles In addition, the firm’s sales are up 27 percent since entering the TAAF program two years ago A South Dakota manufacturer of industrial cleaning machinery had noted increased competition from foreign countries Over the last decade, consolidation has been a significant trend in the industrial machinery industry As larger multi-national conglomerates have gained scale in their operations 126 Economic Development Administration through acquisitions, the competitive challenges continue to mount for smaller manufacturers in the industry The firm contacted RMTAAC in 2010 for assistance with TAAF certification Upon certification, RMTAAC worked with the firm to develop a customized business recovery plan (AP) focused on implementing strategic improvements to strengthen the firm's competitiveness in the global marketplace Between July 2011 and December 2011, the firm developed a customized sales and marketing program To date, the firm’s sales have increased 18.8 percent from the previous year, and the quote-to-order conversion rate has increased percent As a result of TAAF- funded technical assistance, the firm’s sales are at a 72-year high Southeastern Trade Adjustment Assistance Center (SETAAC) After losing sales to a major customer in 2000, a Georgia manufacturing firm ended an era of selling a complete textile machine to a U.S customer The impact of low-cost textile imports from China and Mexico was devastating the firm’s domestic customers In 2006, as sales and employment continued to decline, the firm turned to the TAAF program for help The SETAAC team developed a customized business recovery plan (AP) which focused on planning and implementing strategic improvements to strengthen the firm’s competitiveness in the global marketplace With TAAF-funded technical assistance, the firm received certification from the Historically Underutilized Business Zone (HUBZone) program, which helps small businesses in urban and rural communities gain access to Federal procurement opportunities The firm also redesigned its website and other marketing materials in order to appeal to a broader client base The work paid off, as the firm now provides an ammunition testing system for the Air Force As a result of TAAF-funded technical assistance, the firm has increased employment by 37 percent and revenue by 10 percent At the end of the first quarter of 2012, the firm was on track for a 25 percent increase in revenue over 2011 Based in South Carolina, a producer of screens for rotary screen textile printing experienced a 22 percent loss in sales from 2008 to 2009 as a result of Chinese competitors To address the issue of foreign competition, the firm applied for and was certified for TAAF in 2009 The SETAAC team outlined key projects to help the firm increase its competitive edge With consultants from the South Carolina Manufacturing Extension Partnership (SCMEP), the firm was able to transition from textile-based screen engraving to digital printing of designs directly to fabric by using a new brand Projects performed by the SCMEP included website redesign, organic search engine optimization, lead generation and pay-per-click advertising This outreach lead the firm to an Trade Adjustment Assistance for Firms Program 127 opportunity with a large promotional and graphic communications firm with over 750 member locations in the U.S and Canada Since the initiation of this project, annual sales have steadily increased by over $220,000 May 2012 saw a 50 percent sales increase, and June 2012 as the highest sales month in four years In addition to increasing sales, the firm has also added three additional employees Southwest Trade Adjustment Assistance Center (SWTAAC) A Texas manufacturer of uniforms, industrial safety, and rehabilitation equipment was certified for TAAF in 2008 The firm had experienced a 21 percent decline in sales and 31 percent decline in employment since the previous year The foreign impact was traced to imports from China, Bangladesh, Indonesia, Mexico and the Caribbean basin countries The firm received EDA approval of an AP focusing on technical assistance in the areas of strategic marketing, Enterprise Resource Planning (ERP) implementation, and lean manufacturing techniques To date, the firm has worked on four marketing projects, which included photography of their products, a complete redesign of their marketing materials such as catalogs, brochures, and press packages, along with product imaging improvements and a branding strategy Management information systems projects integrated the firm’s MAS 200 SAGE accounting software to interface with their website projects to streamline and improve the functionality of accounting, inventory control, online customer ordering accessible year round (24 hours a day) with the capability to track orders by oilrig number/employee, and create automated customized reports The firm has completed 99 percent of their projects and seen a dramatic increase in sales They recorded sales of $20.9 million in 2011 and an employment of 30, an increase of 345 percent and 25 percent respectively since the date of certification A Louisiana manufacturer of Creole pralines and a variety of other pecanbased confections was adversely impacted by imports from Canada, Mexico, and Thailand The firm was certified for TAAF in May 2009 At the time of certification, annualized sales were approximately $2.7 million, down from $3.3 million the previous year The firm AP project plans included a support system upgrade required to make significant Management Information System (MIS) upgrades Although they had an MIS system, it did not have the capacity to allow the firm to manage their increasingly diversifying business Although implementation of the projects outlined in their business recovery plan is ongoing, the firm has fared better than many other firms that are recovering from the aftermath of not only Hurricane Katrina, but also the 128 Economic Development Administration generalized impact of the recession during this period Annual sales two years from the date of certification grew to $3.6 million – an annualized growth rate of roughly 15 percent Western Trade Adjustment Assistance Center (WTAAC) A California custom packaging manufacturer serving customers in the medical, food, and electronics industries suffered injury from import competition from Asia from 2004 through 2006 Its customers increased the purchase of packaging solutions made in the Pacific Rim A severe downturn in the static packaging industry resulted in the Pacific Rim producing the bulk share of electronic components The firm was certified for TAAF in December of 2006 WTAAC and the firm’s management developed a strategy to change the way the customers think about flexible barrier packaging and to provide new ideas to industry to use this packaging Specifically, the goal was to develop innovative ways of using barrier packaging to enter the advertising niche, a market segment that has not previously used flexible packaging The firm completed the implementation phase of the TAAF program in January 2010 While active in the program, the firm implemented its marketing project and two information technology projects Since TAAF certification, sales increased 34 percent, employment increased 28 percent, profitability increased 68 percent, and productivity increased percent A second-generation California bonding wedge manufacturer, specializing in the design and manufacture of bonding wedges for the microelectronics industry was suffering from continued shrinking market share due to increasing competition from low price Pacific Rim manufacturers from 2000 to 2002 As a result, 2002 annual sales decreased 44 percent and employment decreased 34 percent The firm was certified for TAAF in October of 2002 WTAAC and the firm’s management developed a strategy for the firm to specialize in the manufacture of high quality bonding wedges for the microelectronic industry while expanding its brand sales and diversifying its customer base The firm successfully completed the implementation phase of the TAAF program in February 2009 While active in the program, the firm implemented two quality management system projects, three production engineering projects, four marketing and promotion projects, and one information technology project These projects focused on significantly expanding international sales while improving manufacturing efficiency, reducing production cost and shortening cycle times Since TAAF certification, the firm regained profitability, with sales increasing 45 percent, and productivity improving 45 percent Trade Adjustment Assistance for Firms Program 129 End Notes U.S Government Accountability Office (GAO), Trade Adjustment Assistance: Commerce Program Has Helped Manufacturing and Services Firms, but Measures, Data, and Funding Formula Could Improve (GAO-12-930), September 13, 2012 BLS does not collect a sales measure comparable to EDA’s measure in this report (i.e average sales per employee) The information was requested in the House Committee Report that accompanied the FY 2012 Commerce, Justice, Science, and Related Agencies Appropriations bill The TGAAA was included as subtitle I (letter “I”) of title I of Division B of the American Recovery and Reinvestment Act of 2009 (ARRA) (Pub L No 111-5, Stat 115 at 367) “Intermediary Organization” referred to in section 253(b)(1) are the Trade Adjustment Assistance Centers (TAACs) See chapter of title II of the Trade Act, section 255A (b) Classification of Data As of May 17, 2009, the deadline for making a final determination is 40 days Before May 17, 2009, EDA had 60 days to make a determination Some TAACs believe that fewer firms were eligible to participate in the program because the economy’s improvement from FY 2010 and FY 2011 prevented some firms from demonstrating a decrease in employment, sales and production required for eligibility Petitions are certified on a rolling basis throughout the year, therefore activity in these categories may not result in certification within the same FY These totals represent the activity under each category within FY 2012 10 As identified by the firm’s North American Industry Classification System (NAICS) code 11 Firms in the service sector may also perform dual functions as manufacturing firms and may have been categorized by TAACs as manufacturing firm 12 Benefits are defined as technical assistance provided to TAAF-certified firms in preparing and implementing business recovery plans (APs) 13 Firms have up to two years from the date of TAAF certification to submit a business recovery plan (AP) These totals represent the firms certified for TAAF in FY 2012 that also submitted and received an approved business recovery plan in the same fiscal year The total number of APs approved in FY 2012 is reported in Exhibits 19, 20 and 21 14 Some TAACs believe that fewer firms were eligible to participate in the program because the economy’s improvement from FY 2010 and FY 2011 prevented some firms from demonstrating a decrease in employment, sales, and production required for eligibility Subsequently, fewer APs were submitted 15 Firms have two years from the date of certification to submit an AP to EDA APs approved in FY 2012 may represent firms that were certified for TAAF between FY 2010 – FY 2012 16 Prior to 2008, firms were allowed in excess of five years to complete projects, resulting in a longer than average duration of benefits Firms have five years from the date of AP approval to complete their projects 17 The total productivity as presented in across TAACs, States and the summary line of Exhibit 24 represents the actual total average productivity in FY 2012 This total, derived by calculating the mean horizontally (not vertically), is based on raw data and provides the most accurate representation of productivity for all TAACs and States While this figure is provided in the table, it should be noted that calculating total productivity vertically introduces additional degrees of error as it represents the average of averages 18 The total productivity as presented in across TAACs, States and the summary line of Exhibit 24 represents the actual total average productivity in FY 2012 This total, derived by calculating the mean horizontally (not vertically), is based on raw data and provides the most accurate representation of productivity for all TAACs and States While this figure is provided in the table, it should be noted that calculating total productivity vertically introduces additional degrees of error as it represents the average of averages 130 19 Economic Development Administration BLS’ productivity measures relate output to the labor hours used in the production of that output 20 This does not include the amount expended by the TAACs for outreach to potential new firms 21 A firm may have up to five projects in an approval AP 22 The information was requested in the House Committee Report that accompanied the FY 2012 Commerce, Justice, Science, and Related Agencies Appropriations bill 23 A firm that has been certified for TAAF, and/or has an approved Adjustment Proposal, has not completed all projects in their AP, and is still engaged in the TAAF program is considered “active.” 24 The information was requested in the House Committee Report that accompanied the FY 2012 Commerce, Justice, Science, and Related Agencies Appropriations bill INDEX A access, 34, 70, 80, 126 accountability, 30, 31, 49, 51, 52 accounting, 36, 127 acquisitions, 126 adjustment, vii, viii, 1, 2, 4, 6, 7, 8, 9, 10, 18, 49, 50, 52, 60, 69, 77, 81 adverse effects, 124 age, 53, 60, 61, 65, 70 agencies, 35, 69 agriculture, 22, 66, 67, 68 Air Force, 126 Alaska, 79 American Recovery and Reinvestment Act, viii, 3, 15, 19, 26, 51, 129 American Recovery and Reinvestment Act of 2009, 26, 51, 129 annual rate, 124 antidumping, 22 appropriations, 5, 34, 53, 71 Asia, 18, 128 assessment, viii, 2, 9, 11, 55, 57, 119, 125 audit, 20, 55 automation, 112 average revenue, 121 B Bangladesh, 127 banking, 21 barriers, 4, 49 base, 41, 43, 66, 76, 107, 125, 126, 128 base year, 76, 107 benefits, 11, 12, 24, 26, 43, 49, 69, 77, 99, 129 bonding, 128 breakdown, 69, 70 Bureau of Labor Statistics, ix, 9, 32, 36, 62, 65, 74 business cycle, 32 business processes, 120 business strategy, 82 businesses, 3, 4, 39, 57, 74 C candidates, capital expenditure, 24 Caribbean, 127 Census, 36, 48, 54, 61, 62, 65, 70 certification, 6, 8, 16, 22, 24, 25, 26, 27, 28, 29, 33, 35, 40, 48, 56, 57, 59, 60, 61, 77, 79, 80, 82, 83, 94, 104, 112, 113, 121, 123, 124, 126, 127, 128, 129 CFR, 12 challenges, 3, 10, 28, 48, 59, 75, 126 chemical, 122 Chicago, 52 China, 18, 40, 120, 124, 125, 126, 127 132 Index classification, 70, 71 classroom, 120 cleaning, 125 clients, 22, 29, 33, 37, 44, 70, 75, 76, 107, 117, 119 collaboration, 22, 51, 57, 119 Colombia, 3, 18 commerce, 22 commercial, 123 Committees on Appropriations, ix, 74, 114, 118 commodity, 69 communities, 3, 58, 68, 69, 126 compensation, competition, vii, viii, 2, 4, 9, 15, 17, 18, 31, 40, 44, 49, 78, 120, 121, 122, 123, 124, 125, 126, 128 competitive advantage, 112 competitiveness, vii, 1, 7, 56, 57, 74, 78, 80, 82, 126 competitors, 126 complexity, 41 compliance, 77 computer, 36, 70 conference, 34, 47, 53, 69, 71 Congress, v, vii, ix, 1, 2, 3, 4, 5, 8, 9, 11, 12, 13, 18, 19, 21, 26, 27, 30, 49, 69, 71, 73, 74, 75 consolidation, 125 construction, 58, 122 consulting, 40 consumers, 4, 49 consumption, 63, 70 control group, 11, 59 conversion rate, 126 cooperative agreements, 51, 56 correlation, 63, 72 cost, 4, 6, 7, 12, 21, 24, 43, 45, 47, 48, 50, 57, 69, 71, 74, 80, 82, 111, 114, 116, 120, 122, 123, 125, 126, 128 covering, 3, 55 CT, 88, 92, 98, 105 cumulative percentage, 39 customers, 12, 24, 28, 56, 120, 122, 123, 125, 126, 128 D data analysis, 10, 31 data collection, 16, 20, 31, 36, 51, 53, 59, 61, 71, 119 data set, 34, 59, 63 database, 34, 35, 63, 69, 82, 119 deficiencies, deficiency, 17, 41, 47 Department of Agriculture, 69, 75 Department of Commerce, viii, ix, 15, 17, 18, 33, 51, 52, 69, 70, 71, 74, 114, 118 Department of Labor, ix, 69, 74 dependent variable, 53, 60, 61, 63, 70, 72 depth, 29 designers, 80 detection, 61 development assistance, 123 deviation, 62 direct measure, 44 directors, 47, 48 dislocation, 12 distress, 32 distribution, 43, 61 District of Columbia, 19, 21, 79 diversity, 19, 52 DOC, 114 DOL, 75, 79 draft, 51, 118 E earnings, 122 East Asia, 120 e-commerce, 122 economic development, 52 Economic Development Administration (EDA), vii, 1, 5, 16, 18, 52, 74 economic downturn, 28 economic growth, economic indicator, 20, 53 economic resources, economic welfare, vii, viii, 1, 2, 15, 18 economies of scale, 61 133 Index education, 69 e-mail, 21, 70 employees, 7, 17, 32, 36, 37, 38, 40, 42, 43, 44, 54, 57, 66, 67, 68, 69, 70, 118, 119, 121, 122, 124, 125, 127 employment levels, 75, 76, 83, 106, 124 engineering, 27, 75, 80, 112, 128 England, 71 environment, 76, 107, 117 environmental management, 40 EPA, 71 equipment, 43, 45, 70, 121, 127 equity, 20, 41, 44, 45, 47, 55, 69 European market, 125 evidence, 4, 10, 11, 21, 28, 47, 55, 118, 119 exclusion, 64 expenditures, 45, 114 expertise, 6, 25, 82, 124 exporters, 49 exports, 39, 70, 123, 125 F fabrication, 124 farmers, vii, 1, 2, 3, 68, 69 federal funds, 24 Federal funds, ix, 74, 114, 118 federal government, fiber, 124 filtration, 123 financial, 5, 6, 7, 8, 22, 26, 33, 40, 49, 53, 58, 61, 78, 111, 112 financial crisis, financial data, 49, 53, 58 financial resources, financial system, firm management, 25 firm size, 53 fiscal year 2009, 38, 48, 54, 69 flexibility, 3, 10, 48, 49 flooring, 37 fluid, 122 food, 128 force, 12 forecasting, 120 formula, 17, 20, 41, 42, 43, 44, 45, 47, 48, 49, 50, 51, 55, 66, 119 free trade, 3, 4, 18 fringe benefits, 45, 70 fringe firms, 64 full employment, funding, vii, ix, 1, 3, 10, 11, 16, 17, 19, 20, 21, 25, 26, 28, 29, 32, 40, 41, 42, 43, 44, 45, 47, 48, 49, 50, 51, 55, 56, 57, 66, 67, 68, 70, 71, 121 funding authorization, 28 funds, 5, 9, 10, 16, 17, 21, 24, 29, 40, 41, 43, 45, 46, 47, 49, 50, 51, 55, 56, 71, 78, 80, 82, 111, 116, 119, 121 furniture manufacturer, 40 G GAO, viii, ix, 2, 3, 8, 10, 11, 13, 15, 16, 17, 20, 22, 23, 26, 30, 39, 40, 42, 43, 46, 53, 55, 57, 62, 65, 67, 68, 69, 70, 71, 73, 74, 118, 119, 129 Georgia, 52, 79, 126 Germany, 124 global economy, viii, 5, 15, 19, 21, 49, 57, 74, 78, 116 global recession, 123 goods and services, viii, 15, 18, 31 grants, 5, 69 growth, viii, 2, 11, 24, 37, 49, 53, 56, 60, 61, 64, 65, 70, 121, 124, 125, 128 growth rate, 53, 62, 70, 128 guidance, 20, 35, 52, 69, 71, 119 guidelines, 45 H Hawaii, 79 higher education, 69 hiring, 32 historical data, 36 House, ix, 18, 74, 114, 118, 129, 130 House of Representatives, 18 human, 121, 122 134 Index human capital, 122 human resources, 121 Hurricane Katrina, 127 I ID, 88, 92, 98, 105, 108, 109, 110 import penetration, 11, 36, 37, 38, 54, 59, 61, 62, 63, 64 imported products, 57 imports, viii, 6, 15, 18, 24, 37, 40, 44, 49, 63, 70, 81, 121, 122, 124, 125, 126, 127 improvements, viii, 2, 9, 10, 16, 27, 38, 40, 50, 70, 120, 126, 127 in transition, 49 income, 4, 69 income support, 69 increased competition, 4, 40, 44, 125 independent variable, 61 individuals, Indonesia, 127 industry(s), vii, viii, ix, 1, 2, 4, 5, 10, 11, 12, 13, 19, 21, 28, 32, 36, 37, 38, 52, 53, 56, 57, 58, 60, 61, 62, 63, 64, 65, 67, 68, 70, 72, 74, 75, 76, 80, 89, 104, 107, 111, 116, 117, 120, 122, 125, 128 inferences, 20, 54, 59 information technology, 35, 69, 80, 128 initiation, 127 injury, 128 institutions, 69 interface, 127 intermediaries, internal controls, 71 international trade, 31, 40, 54, 62, 69 investment(s), 69, 118, 121 Iowa, 79 issues, 8, 11, 34, 58, 121 J Japan, 124 K Korea, 125 L layoffs, 4, 6, 81, 120 lead, 126 leadership, 121, 123 legislation, vii, viii, ix, 2, 3, 4, 10, 16, 19, 25, 27, 41, 52 liberalization, vii, 1, 2, 49 light, 125 loan guarantees, loans, 5, 26 Louisiana, 79, 127 lower prices, M machinery, 24, 125 majority, 89 management, 3, 7, 10, 24, 30, 32, 38, 48, 56, 59, 71, 80, 82, 112, 119, 121, 128 manufacturing, viii, ix, 2, 7, 9, 11, 12, 17, 19, 21, 28, 31, 37, 38, 40, 41, 49, 56, 57, 66, 67, 68, 69, 70, 73, 74, 76, 78, 89, 107, 112, 116, 117, 120, 121, 122, 123, 124, 125, 126, 127, 128, 129 market position, 80 market segment, 121, 128 market share, 124, 128 market structure, 61 marketing, 7, 38, 40, 75, 80, 112, 120, 122, 123, 124, 126, 127, 128 marketing strategy, 40 marketplace, ix, 57, 74, 126 Maryland, 79 MAS, 127 material handling, 122 materials, 43, 120, 123, 126, 127 measurement, 118, 124 medical, 123, 128 methodology, 20, 54 135 Index Mexico, 72, 79, 125, 126, 127 microelectronics, 128 military, 123 mission, 78 Missouri, 52, 79, 121 model specification, 58, 63, 64 models, 64 Montana, 79, 124 N net exports, 70 New England, ix, 45, 46, 47, 67, 68, 71, 74, 79, 83, 87, 88, 92, 94, 95, 96, 98, 104, 105, 111, 114, 115, 117, 118, 123 nonprofit organizations, 21, 68 nonresponse bias, 20, 54, 70 normal distribution, 61 North America, 18, 36, 61, 70, 129 O Office of Management and Budget, 18, 35, 119 officials, ix, 16, 19, 20, 24, 25, 28, 29, 32, 34, 35, 47, 49, 52, 53, 54, 56, 57, 58, 70, 71 OH, 88, 90, 98, 105 Oklahoma, 79 OMB, 18, 35, 45, 69 operating costs, 45 operations, viii, 7, 16, 19, 27, 34, 36, 50, 51, 52, 53, 54, 75, 78, 106, 126 opportunities, 7, 47, 49, 57, 75, 126 optimization, 125, 126 outreach, 19, 21, 29, 35, 44, 116, 126, 130 outsourcing, 28 oversight, 3, 8, 69 P Pacific, 18, 128 Panama, participants, 31, 32, 38 percentile, 38 performance measurement, 31, 51, 118, 119 permit, 54 personnel costs, 71 plants, 4, 12, 36 policy, vii, 1, 4, 12, 59, 61, 63, 64, 65, 69, 70, 71, 72 policy issues, vii, population, 44, 54, 57, 70 portfolio, 118 predictability, 49 preparation, 6, 7, 82 president, vii, viii, 1, 2, 3, 11, 29, 40, 75 President Obama, vii, viii, 1, 2, 3, 11 principles, 125 private firms, private ownership, 64 procurement, 82, 126 producers, product market, 60, 61, 65 professional management, 49 professionals, 6, 49 profit, 6, 78, 114, 125 profit margin, 125 profitability, 17, 38, 57, 78, 118, 119, 128 program administration, 8, 50 program outcomes, 10, 16, 17, 30, 31, 68 program staff, 31 project, 6, 7, 20, 33, 53, 57, 59, 70, 78, 112, 113, 120, 121, 125, 127, 128 protection, protectionism, 4, public sector, Puerto Rico, 19, 21, 56, 79 Q quality improvement, 80 R reallocation of resources, recession, 27, 121, 128 recognition, 40 136 Index recommendations, 16, 51, 68 recreational, 122 recruiting, 75 regional unemployment, 54, 61 regression, 11, 20, 36, 53, 58, 59, 60, 61, 62, 63, 72 regression analysis, 11, 20, 36, 53, 58, 61, 63 regression equation, 63 regression method, 60 regression model, 54 regulations, 19, 26, 52, 119 regulatory requirements, 24, 82 rehabilitation, 127 reliability, 19, 35, 52, 53, 71 rent, 43, 46, 70, 114 requirements, viii, 2, 9, 16, 17, 25, 26, 52, 56, 57, 82 resolution, 5, 75 resources, 7, 8, 10, 11, 12, 31, 48, 71 response, 19, 20, 35, 38, 39, 54, 68 restructuring, 7, 120 revenue, 7, 112, 122, 124, 126 risks, 48 rules, software, 27, 112, 121, 124, 127 South Dakota, 79, 125 South Korea, 3, 18 specialists, 80 specifications, 63, 64 spending, 3, 20, 55, 75 stability, 49 staff members, 27 staffing, 10 stakeholders, 34, 51, 119 standard deviation, 61 state(s), 19, 21, 22, 44, 56, 57, 59, 71, 77, 118 statistics, 65 statutes, 26 strategic planning, 69, 122 structure, 71, 72 success rate, viii, 2, supplier(s), 56, 120 support staff, survival, viii, ix, 2, 9, 32, 74, 76, 107, 117 survival rate, viii, ix, 2, 9, 74, 76, 107, 117 sustainability, 56 S Taiwan, 40 target, 21, 44, 125 target population, 44 technical assistance, vii, 1, 2, 5, 6, 7, 19, 21, 24, 26, 33, 43, 44, 54, 56, 57, 70, 74, 75, 78, 80, 82, 111, 112, 116, 121, 122, 123, 124, 125, 126, 127, 129 technical comments, 51 techniques, 62, 118, 127 technological change, technology, 40, 56, 70, 122 telecommunications, 27 telephone, 114 testing, 53, 118, 123, 124, 126 Thailand, 127 time frame, 9, 54 time periods, 59, 71, 75 Title I, 3, Title II, 3, safety, 127 science, 20, 55 scope, 20 seafood, 38 Secretary of Commerce, 33, 50, 74, 77, 78 seminars, 21 Senate, ix, 18, 74, 114, 118 service firms, 19, 21, 75, 78, 79, 89 services, 3, 7, 10, 11, 16, 24, 28, 31, 35, 38, 41, 44, 45, 47, 48, 49, 50, 52, 54, 56, 57, 69, 70, 81, 89, 123 showing, 61 significance level, 65 signs, 72 small businesses, 39, 126 small firms, 39, 44 society, T 137 Index total costs, 45 total factor productivity, 12 total product, 81, 129 TPA, vii, viii, 1, 3, 11, 12 trade, vii, viii, 1, 2, 3, 4, 5, 6, 7, 11, 12, 15, 16, 18, 21, 32, 44, 47, 48, 49, 50, 52, 54, 56, 57, 58, 60, 63, 64, 69, 72, 77, 80, 89 trade adjustment assistance, vii, 1, 2, 4, 6, 18, 50, 60, 69, 77 Trade Adjustment Assistance for Firms (TAAF), vii, ix, 2, 73, 74, 77 trade agreement, 18 trade liberalization, 4, 18, 49, 50 Trade Promotion Authorization (TPA), viii, training, 43, 69, 71, 112, 120, 121, 123, 124 training programs, 69 transition period, 49 translation, 123 transparency, 49 transportation, 7, 89 U U.S Bureau of Labor Statistics, 76, 116 U.S Department of Agriculture (USDA), 72, 75 U.S Department of Commerce, vii, 1, 5, 8, 12, 13, 74 U.S Department of Labor, 75 United, v, viii, 15, 18, 33, 49, 56, 72, 77, 90 United States, v, viii, 15, 18, 33, 49, 56, 72, 77, 90 universe, 76, 107, 116 universities, 6, 21, 68 updating, 119 urban, 126 Urban Institute, 8, 13, 20, 53, 69, 70, 71 USA, 12 USDA, 69, 79 V variable factor, 42 variables, 36, 53, 59, 60, 61, 62, 63, 64, 70, 72 variations, 45, 47 ventilation, 125 Vietnam, 18 W wages, 43, 121 Washington, 12, 13, 32, 52, 68, 69, 71, 79, 118 weakness, 32 wear, 122 websites, 21 wholesale, 7, 89, 125 Wisconsin, 72, 79, 122 wood, 121 wood products, 121 workers, vii, viii, 1, 2, 3, 4, 6, 7, 12, 15, 18, 22, 24, 49, 68, 69, 81, 120, 122 workforce, 56, 120 World Trade Organization, 18 ... Index vii Trade Adjustment Assistance for Firms: Economic, Program, and Policy Issues J F Hornbeck Trade Adjustment Assistance: Commerce Program Has Helped Manufacturing and Services Firms, but... GAO FOUND Changes to the Trade Adjustment Assistance (TAA) for Firms program mandated by the Trade and Globalization Adjustment Assistance Act led to program improvements and increased participation,... R42012, Trade Adjustment Assistance for Workers, by Benjamin Collins; CRS Report R40206, Trade Adjustment Assistance for Farmers, by Remy Jurenas, and CRS Report R42661, Trade Adjustment Assistance