The White House
Office of the Press Secretary
For Immediate Release
January 11, 2012
Remarks by the President on Insourcing American
Jobs
East Room
12:51 P.M. EST
THE PRESIDENT: Thank you. Thank you, everybody. Please,
please have a seat. Thank you. Well, welcome to the White House,
everybody. And Tim, thank you for that introduction.
I could not have enjoyed more the meeting that I had this morning, because
what these companies represent is a source of optimism and enormous potential
for the future of America. What they have in common is that theyfre part
of a hopeful trend: They are bringing jobs back to America.
Youfve heard of outsourcing. Well, these companies are
insourcing. These companies are choosing to invest in the one country with
the most productive workers, the best universities, and the most creative and
innovative entrepreneurs in the world, and that is the United States of
America. (Applause.) Thatfs worth applause.
Thatfs exactly the kind of commitment to country that we need -- especially
right now, when wefre in a make-or-break moment for the middle class and those
aspiring to get in the middle class here in the United States.
All across this country, I meet folks who grew up with a faith that in
America, hard work paid off and responsibility was rewarded, and anybody could
make it if they tried -- no matter where you came from, no matter what you
looked like, no matter how you started out. Those are the values that my
grandparents and my mother taught me. Those are the values that built the
best products and the strongest economy and the largest middle class that the
world has ever known.
I think we understand that over the last few decades, that bargain has eroded
for too many Americans. The economy has changed rapidly. And for
many, that change has been painful. Factories where people thought they
would retire packed up and went overseas, where labor costs were cheaper.
At the same time, we live in a global economy, and as other countries grow
and develop middle classes of their own, of course global companies are going to
pursue those markets and employ workers and make investments all over the
world.
But right now, wefre at a unique moment, a inflection point, a period where
wefve got the opportunity for those jobs to come back. And the business
leaders in this room, theyfre ahead of the curve, they recognize it. Ifll
give you just a few examples. After shedding jobs for more than a decade,
American manufacturers have now added jobs for two years in a row. Thatfs
good news. But when a lot of folks are still looking for work, now is the
time for us to step on the gas.
So thatfs why I pushed Congress to extend the payroll tax cut this year, so
that 160 million working Americans werenft hit with a tax hike. Now is the
time to extend that middle class tax hike for -- tax cut for all of this
year. Itfs the right thing to do, and we need to get that done.
But wefre going to have to do more. And thatfs why, in the next few
weeks, wefre also going to put forward new tax proposals that reward companies
that choose to bring jobs home and invest in America. And wefre going to
eliminate tax breaks for companies that are moving jobs overseas.
Because there is an opportunity to be had right here and right now.
There are workers ready to work, right now. Thatfs why I set a goal of
doubling our exports of goods and services by 2014 –- and itfs a goal, by the
way, that wefre on track to meet; in fact, wefre a little ahead of schedule in
meeting that goal.
Thatfs why, with the help of our outstanding USTR, I was able to sign trade
agreements with Korea and Colombia and Panama so our businesses can sell more
goods to those markets. Thatfs why Ifve fought for investments in schools
and community colleges, so that our workers remain the best youfll find
anywhere, and investments in our transportation and communication networks, so
that your businesses have more opportunities to take root and grow.
I donft want America to be a nation thatfs primarily known for financial
speculation and racking up debt buying stuff from other nations. I want us
to be known for making and selling products all over the world stamped with
three proud words: gMade in America.h And we can make that
happen. (Applause.)
I donft want the next generation of manufacturing jobs taking root in
countries like China or Germany. I want them taking root in places like
Michigan and Ohio and Virginia and North Carolina. And thatfs a race that
America can win. Thatfs the race businesses like these will help us
win.
These are CEOs who take pride in hiring people here in America, not just
because itfs increasingly the right thing to do for their bottom line, but also
because itfs the right thing to do for their workers and for our communities and
for our country. And theyfre leading by example. Ifm proud of that,
as an American. But as President, I also want to make sure they get some
credit for it.
Just three years ago, for example, we almost lost the American auto
industry. Today, the Big Three automakers are turning a profit and
manufacturing the next generation of fuel-efficient cars that the rest of the
world wants to buy. (Applause.) Ford Motor Company -- thatfs
represented by workers and management on this stage -- has committed to
investing $16 billion in the United States by 2015, $16 billion.
(Applause.) And that includes bringing back about 2,000 jobs and shifting
production from countries like Japan, Mexico and China to states like Michigan
and Ohio and Missouri.
Master Lock -- iconic company. When Master Lock looked at their
numbers, they saw that union workers in America could do the same job at
competitive costs as non-union workers in China. In fact, Master Lock is
now exporting their products from the United States to China and Europe.
(Applause.) And today, for the first time in 15 years -- today, for the
first time in 15 years, Master Lockfs Milwaukee complex is running at full
capacity.
But you donft have be a big manufacturer to insource jobs. Bruce
Cochranefs family had manufactured furniture in North Carolina for five
generations. But in 1966 -- 1996, rather, as jobs began shifting to Asia,
the family sold their business and Bruce spent time in China and Vietnam as a
consultant for American furniture makers who had shifted their production.
While he was there, though, he noticed something he didnft expect: Their
customers actually wanted to buy things made in America. So he came home
and started a new company, Lincolnton Furniture, which operates out of the old
family factories that had been shut down. Hefs even re-hired many of the
former workers from his family business.
You also donft have to be a manufacturer to insource jobs. You just
heard Tim, CEO of a health care IT company in New Jersey called GalaxE
Solutions. Theyfve already hired 150 workers with their gOutsource to
Detroith program, and they plan on hiring up to 500. And Tim was quoted as
saying, gThere are some really talented people in Detroit, and wefre putting
them back to work.h
Whether youfre a small business that are -- some of which are represented
here -- or a large manufacturing corporation, or a technology company; whether
youfre a historic brand or a brand-new startup, insourcing jobs is a smart
strategy right now. We live in a global economy with opportunities for
global investment. But we heard from several experts this morning and
business leaders that wefre at this point in time where factors like incredibly
rising American productivity and increasingly competitive costs mean the
economic case to invest in America and bring jobs back home is strong -- and
itfs getting stronger.
Labor costs are going up in places like China. We have become much more
productive. We continue to be the largest market in the world. And
so we have this outstanding opportunity if everybody is partnering and getting
together. Thatfs the economic case.
I believe therefs also a moral case. Andy Grove, the former CEO of
Intel, said it well. He said, gThose of us in business have two
obligations. One thatfs undebatable is that we have a fiduciary
responsibility to the shareholders who put us in our place.h But he also
said, gTherefs another obligation that I feel personally, given that everything
Ifve achieved in my career and a lot of what Intel has achieved in its career
were made possible by a climate of democracy, an economic climate and investment
climate provided by our domicile –- the United States.h
All these folks onstage, they are businesspeople first, and theyfre looking
at the bottom line. But they also feel good about the fact that theyfre
restoring hope and creating jobs here in the United States. And thatfs
part of the responsibility that comes with being a leader in America –- a
responsibility not just to the shareholders or the stakeholders, but to the
country that made all this incredible wealth and opportunity possible.
Thatfs a responsibility that we all have to live up to –- whether wefre in the
private sector or the public sector; whether wefre in Washington or wefre on
Wall Street. Because the more Americans who succeed, the more America
succeeds.
So my message to business leaders today is simple: Ask yourselves what
you can do to bring jobs back to the country that made our success
possible. And Ifm going to do everything in my power to help you do
it. Wefre going to have to seize this moment. American workers are
the most productive and competitive in the world right now. When you
factor in all the costs, we have a outstanding market; we have the most
innovative entrepreneurs, the best research universities. And part of what
our session this morning was all about was just helping people to take a look at
what this moment is and where wefre going to be five years from now.
Because when people take a second look, it turns out that the potential for job
growth and American manufacturing and the service industry is incredible.
I said in a speech a while back, this moment is perfectly suited for our
advantages. Itfs perfectly suited for who we are. The global
marketplace is becoming more innovative, more creative, more transparent,
faster, more adaptable -- thatfs who we are. Thatfs our strength.
Wefve got to take advantage of it.
And if wefve got leadership of the sort that wefre seeing on this stage, Ifm
absolutely confident that not only can it make a difference for our middle class
and folks who are working their way into the middle class, it also gives us an
incredible opportunity to assure the future for our children and our
grandchildren. And thatfs my central goal and focus as President.
That should be our central goal as a country -- how we rebuild an economy where
hard work pays off, responsibility is rewarded -- a nation where those values
continue for generations to come.
So thanks to all the people on this stage for being such a great
example. For all the press who are here, I hope you get a chance to hear
their stories, because itfs exciting, and it gives you a sense of why Ifm
incredibly optimistic about our prospects.
Thank you very much, everybody. (Applause.)
END
1:05
P.M. EST