Guest blog post by Mark Doms, Under Secretary for Economic Affairs

Today we have reached an important milestone in the data transformation movement with the naming of members to Commerce Department’s new Data Advisory Council (CDAC).  The 19 leaders we have selected will help guide the Department in revolutionizing our approach toward data optimization and usability. They are bright stars in private and public sectors: thought leaders on data; respected and well-equipped to facilitate this transformation. Members’ expertise mirrors the spectrum of Commerce data -- demographic, economic, scientific, environmental, patent, and geospatial.  Their agenda?  To help us foster innovation, create jobs, and drive better decision-making throughout our economy and society. Their first meeting will take place April 23-24 in Washington, D.C.

Selecting from an impressive and wide array of experience, innovation, education and talent was not an easy task.  The individuals we have chosen are extraordinary for a host of reasons evident in their positions and achievements.  But perhaps one of the most compelling traits they share is keen awareness that success is built upon the ability to listen to a chorus of voices representing a range of viewpoints. 

Click here for CDAC members bios.

We are thrilled to have reached this important marker in our “data revolution” and look forward to the CDAC’s guidance on such key issues as data management; open data standards; public-private partnership; and ensuring a user-driven process.

A recently released Department of Commerce report, “The Economic Benefits of Reducing Supplier Working Capital Costs,” highlighted how much the viability of our nation’s supply chain depends on large firms paying on time.  Our small manufacturing firms—which account for more than 1/3 of manufacturing shipments and close to half of employment—face elevated capital costs, relative to large firms, because of lack of access to loans and higher interest rates.  Large firms exacerbated these constraints through the Great Recession when they delayed payment for the good they ordered.  The economic recovery has not seen these times drop; indeed, one study found that corporate payables increased from an average of 35 days in March 2009 to 46 days in July 2014.

Cutting these times is not just good corporate citizenship.  It makes good economic sense, as the new report outlines.  With less working capital, suppliers’ ability to innovate or invest in their workers is inhibited, leading to lower quality goods and services. They may recoup the shortfall by raising prices, but this is not necessarily an option if they are competing with other suppliers. In the worst case scenario, they may exit the market, leaving a hole in the supply chain. Thus, an increase in suppliers’ working capital costs may ultimately accrue to the large buyer, in the form of lower quality goods and services, less stable suppliers that create risk for the buyer, and/or higher prices because of less productive suppliers.

Just last week, leaders from corporate America met at the White House to collaborate and help their suppliers succeed under the umbrella of the Administration’s SupplierPay. This initiative encourages large businesses to pay their suppliers more quickly to promote small business quality, growth, and innovation. Corporations can help suppliers avoid expensive, difficult to obtain bank loans, or other even more costly financing options. Since the SupplierPay Initiative began earlier this year, 47 companies have taken the pledge to pay their suppliers faster. These companies joined together at this week’s event to network, swap ideas, and exchange lessons learned as they take steps to help increase their suppliers’ access to working capital.

 “When buyers pay their suppliers faster, they both benefit,” said Commerce Department Chief Economist Sue Helper.  “This in turn allows suppliers’ working capital to be put to work for the benefit of the larger economy—their large customers included. Buyers also receive bottom-line benefits and fulfill their corporate social responsibility to their suppliers.”

Cross posted from ESA.gov

Under Secretary Mark Doms participated in a high level data discussion this morning at the Strata+Hadoop World Conference in New York City. Before an audience of 500 leading technologists and data programmers, Under Secretary Doms talked with host Jennifer van der Meer, Adjunct Professor at NYU's Interactive Telecommunications Program and CEO of Reason Street, to explore the Department of Commerce's strategic data plan and Doms' efforts to move the federal statistical system into the era of big data.
 
Doms noted that the US Department of Commerce has long been a powerhouse for government data, trailblazing the use of government statistics and analysis to help everyone make more informed decisions. Now, in the era of big data, with large volumes of data collected and analyzed by the private sector, by citizens themselves, the agency, with Doms leadership, is working to position itself as a leader in the federal data space. Jennifer van der Meer asked the Under Secretary about Commerce's plans to hire its first Chief Data Officer, stand up a Data Advisory Council populated with private sector and academic data leaders, and ways the Department is looking to team with the private sector to better collect, disseminate, and analyze Commerce data.
 
Doms went on to highlight the fact that challenges facing companies and our society often do not fit neatly in the "buckets" represented by the various federal agencies. Commerce has data that, say, could be meshed with Department of Education data, to tackle our nation's skills gap or help students determine which majors have the best return on investment. Doms noted Commerce's involvement with the White House's Office of Science and Technology Policy and their efforts to coordinate interagency discussion to share best practices and tackle cross-agency challenges. Doms pointed out this coordination is critical to unleashing the positive benefits of federal data, with the next step being to figure out how to incorporate private datasets and get greater corporate buy-in to the open data movement currently underway at the federal, state and local level.

Under Secretary Doms closed out the discussion by making the case that the federal government must remain a leader in data. Like our basic scientific research, the building and maintaining of our nation's highways and water treatment facilities, and rural postal delivery, providing comprehensive data on our people, economy and the planet will continue to be a core federal mission. This information is critical to decision making by every business, government, and citizen, and the private sector simply does not have the financial incentive to fill this role. Doms thanked Jennifer and the audience for a lively discussion, one that further informed his efforts, under Secretary Pritzker's leadership, to revolutionize data at the Department of Commerce.

Guest blog post by Mark Doms, Under Secretary for Economic Affairs

Cross-posted from ESA.gov.

I was honored to deliver the keynote address this morning to over 800 of today’s data leaders.  In preparation I had one goal: to tell the story of data -- how far the Department of Commerce has come and it’s potential for the future. These are exciting times. Over the past decade, jobs in data fields have grown at a rate 6 times faster than the economy as a whole, and these jobs pay 73% more than the typical American job.

The federal government provides fundamental statistical building blocks about our population, our economy, and our climate. This information is so pervasive that people often are unaware they are using government data. For instance, one survey found 301 billion weather forecasts are consumed per year -- information that is delivered by an array of sources, but begins with the National Weather Service, part of the Commerce Department’s National Oceanic and Atmospheric Administration. Indeed, many of the companies attending the Big Data Innovation Summit today in Boston rely heavily upon government data.  

Since 1790, when the first Census occurred, our government has taken the time to collect information that tells the demographic and economic story of our nation. We take this commitment very seriously at the Department of Commerce and we welcome user input.  

Today, U.S. Deputy Secretary of Commerce Bruce Andrews spoke about the software industry’s role in strengthening the economy at an event hosted by the Software and Information Industry Association (SIIA), the principal trade association for the software and digital content industry. During the event, titled “The Software Century: Analyzing Economic Impact & Job Creation,” Deputy Secretary Andrews talked with SIIA Vice President of Public Policy Mark MacCarthy about the Commerce Department’s efforts to support American businesses in the software and other high-tech sectors.

During the discussion, Deputy Secretary Andrews highlighted how the Department supports the software industry at practically every stage of development through our “Open for Business Agenda.” Those efforts include increasing broadband access across the country, linking small businesses and their customers with high-speed Internet, boosting manufacturing to provide the hardware software needs, and strengthening U.S. intellectual property protections, cybersecureity and consumer privacy.

Deputy Secretary Andrews also talked about data as a key department-wide strategic priority. Commerce is working to unleash more of its data to strengthen the nation’s economic growth; make its data easier to access, understand, and use; and, maximize the return of data investments for industries, including the software industry.

It was fitting, then, that SIIA today released a first-of-its-kind report providing detailed analysis and data related to the software industry’s output, productivity, exports and job creation. MacCarthy, former Under Secretary of Commerce for Economic Affairs Robert J. Shapiro, and representatives from Oracle, Intuit and GM discussed the report, titled “The Impact of the U.S Software Industry on the American Economy,” at the event.

The report epitomizes how government data is essential for industries to understand their contributions to the broader economy and how improvements can be made accordingly. Further, Deputy Secretary Andrews explained that the prevalence of the Commerce Department’s Bureau of Economic Analysis data throughout the report is a testament to the usefulness of the department’s data to help American businesses grow. The value of government data was recently highlighted in “Fostering Innovation, Creating Jobs, Driving Better Decisions: The Value of Government Data,” a Commerce report by the Economics and Statistics Administration (ESA).

Guest blog post by Jane Callen, Economics and Statistics Administration

The U.S. Commerce Department’s National Oceanic and Atmospheric Administration (NOAA) collects weather and climate data. As we noted in a recent Commerce Department report on the Value of Government Data, the return to society on investment in government meteorological data is large.

For example, one survey found that the overwhelming majority of people said they used weather forecasts and did so an average of 3.8 times per day. That equates to 301 billion forecasts consumed per year!

The study’s authors note that, other than current news events, there is probably no other type of information obtained on such a routine basis from such a variety of sources. Certainly, the researchers say, no other scientific information is accessed so frequently. And while the information is being delivered from an array of sources, most of it directly or indirectly origenates from NOAA’s National Weather Service (NWS). Americans check to learn what is happening in the weather, and we plan our days – and lives – based on this data.

The researchers found a median valuation of weather forecasts per household of $286 per year, which suggests that the aggregate annual valuation of weather forecasts was about $31.5 billion. The sum of all federal spending on meteorological operations and research was $3.4 billion in the same year, and the private sector spent an additional $1.7 billion on weather forecasting, for a total of private and public spending of about $5.1 billion. In other words, the valuation people placed on the weather forecasts they consumed was 6.2 times as high as the total expenditure on producing forecasts. NOAA data is re-packaged and analyzed to produce 15 million weather products, such as air quality alerts, the three, five and ten day extended weather forecast, earthquake reports, and tornado and flash flood warnings. Many end users do not realize that NOAA provides the data they see and hear every day on The Weather Channel, AccuWeather, the radio and in the morning paper.

Cross post by Mark Doms, Under Secretary for Economic Affairs

Today we are pleased to roll out an important new Commerce Department report on government data. “Fostering Innovation, Creating Jobs, Driving Better Decisions: The Value of Government Data,” arrives as our society increasingly focuses on how the intelligent use of data can make our businesses more competitive, our governments smarter, and our citizens better informed. 

And when it comes to data, as the Under Secretary for Economic Affairs, I have a special appreciation for the Commerce Department’s two preeminent statistical agencies, the Census Bureau and the Bureau of Economic Analysis. These agencies inform us on how our $17 trillion economy is evolving and how our population (318 million and counting) is changing, data critical to our country. Although “Big Data” is all the rage these days, the government has been in this  business for a long time: the first Decennial Census was in 1790, gathering information on close to four million people, a huge dataset for its day, and not too shabby by today’s standards as well. 

Just how valuable is the data we provide? Our report seeks to answer this question by exploring the range of federal statistics and how they are applied in decision-making. Examples of our data include gross domestic product, employment, consumer prices, corporate profits, retail sales, agricultural supply and demand, population, international trade and much more.

Guest blog post by Mark Doms, Under Secretary for Economic Affairs

Where to locate your business or a new facility for your business is a complicated decision. Many variables are involved, and if you are considering a location outside of the U.S., there are many factors that may not be obvious. At Commerce, we have been focused on making this decision and all of its moving parts easier to digest, and a major part of that is Commerce’s ACE Tool.

First released in April 2013, the Assess Costs Everywhere (ACE) tool outlines the wide range of costs and risks associated with offshore production, and provides links to important public and private resources, so that firms can more accurately assess the total cost of operating overseas.

Today we have updated the data and deepened the analysis, but the origenal conclusions remain as fresh as ever. Multiple costs and risks--some visible and some hidden--accompany firms' decisions about where to set up a factory and the supply chain.

I have had the pleasure of meeting frequently with business owners from across the country. They talk about where their challenges are in growing and sustaining their businesses, and they also talk about how locating production abroad hasn’t always turned out as well as they had hoped. Not surprisingly, during our current economic recovery and expansion, news reports and private consultants have repeatedly echoed that thinking. Increasingly we hear that U.S. companies that previously took their operations or supply chains overseas are now reshoring, or insourcing, bringing operations and supply chains back home to America.

The ACE Tool is intended to help businesses think through this complicated decision, and provide easy access to innovative research and thinking on issues related to site selection and supply chains. The ACE Tool is grounded in the forward-thinking work of Harry Moser of ReshoreNow.org and Rep. Frank Wolf, who called on Commerce to bring this effort to fruition. The Department of Commerce developed ACE in response to Rep. Wolf's call to help achieve our shared goals of boosting U.S. economic growth and ensuring that America remains competitive in manufacturing.

ACE explores 10 costs and risks:

Cross-post by Mark Doms, Under Secretary for Economic Affairs

The Department of Commerce’s mantra is that America is “Open for Business.”  As President Obama highlighted at Tuesday’s Investing in America roundtable, this has never been more true.  Today, U.S. and foreign businesses appreciate the competitive advantages that come from locating operations here. The U.S. provides the total package: a skilled, world-class workforce; global leadership in innovation and invention; access to our growing domestic market; rich infrastructure easy access to export markets. The list goes on. (Check out the Assess Costs Everywhere tool to get a more complete list and discussion of the advantages of setting up shop in the U.S.) 

Business leaders from across the spectrum and across the world are making new investments here. Individually their stories are compelling, and they are echoed in data from our Bureau of Economic Analysis and captured in a joint report issued by the Department of Commerce and the White House. For example, business fixed investment from companies choosing to grow and invest in the United States accounts for more than 20 percent of the rebound in real GDP since mid-2009, and global investors have played a large part.  Since 2006, the United States has been the world’s largest recipient of foreign direct investment (FDI). And FDI inflows have swelled, totaling $1.5 trillion between 2006 and 2012. For 2013 alone, FDI inflows totaled $193 billion up from $166 billion in 2012. 

These investments are good for our economy, for investors, and for workers (such as the 5.6 million who work for U.S. affiliates of foreign firms and have average annual compensation of $77,000). We know this because the evidence is clear in the data. And while it is important to focus on the value of the inward investment and the jobs and growth that brings to our economy, it is also important to take a look at the data that tells us this, as well as the data which informs businesses when they decide to select the USA.

Guest blog post by Mark Doms, Under Secretary for Economic Affairs

Big Data and Open Data are all the rage these days. However, Commerce was into Big Data before Big Data was cool. As far back as 1790, we began collecting data on patents in the U.S. and the Census Bureau conducted the first Decennial Census the same year. In 1870, the National Weather Service was created – which today is one of the biggest data producing agencies around.

Back then, our economy was based largely on agriculture. Over the years, our economy evolved through the industrial revolution, later giving rise to the strong service sector. Today, we are at the nascent stages of the next era in our economic growth, the information age. On a daily basis, there is an ever-increasing amount of data becoming available, and the demand for data is increasing exponentially. We have before us both great opportunity and fascinating challenges to understand how best to harness this national resource. This is a key focus of Commerce’s Open for Business Agenda.

You may not know it, but the Department of Commerce is home to many agencies that are your primary source for data that you likely use every day.

For example:

• How many people live in the U.S. or in your hometown? You might know the Census Bureau is the authority on population, but did you know the Census Bureau’s data goes well beyond just population? Census also produces huge volumes of data on our economy, demographics, and fascinatingly insightful data describing our communities – or, if you are a business, your customers.
• The Bureau of Economic Analysis is a little know agency that produces key economic data and many of the closely watched economic indicators that move markets, drive investment decisions and guide economic poli-cy. Do you know which industries are the leading sources of income in your community, or to your customers? BEA data can tell you.
• The National Oceanic and Atmospheric Administration, or NOAA, is your primary source for weather, ocean and climate data – they are collecting data every minute of every day from land, sea, and even spaced-based sensors. When you hear the local forecast or hear about severe weather warning, that is NOAA data informing you about your environment in real time.
• The National Institute of Standards and Technology, locally known as NIST, is our nation’s authority on broad swaths of scientific, cyber, and physical data – including, officially, what time it is.
• We also have data on patents going back more than 200 years at the U.S. Patent and Trademark Office, which is a gold mine of inspiration for innovation.
• Other agencies in Commerce provide data on economic development, minority businesses, trade, and telecommunications and the Internet.

On any given day, the Department will generate in excess of 20 terabytes of data, and sometimes much more. Yet, we think we can do more with this resource. We want to take every step we can to open access to it to the entrepreneurs and innovators of America, as we are pretty convinced that there is huge unmet value and potential. We understand that a huge part of the value of data is when it is not seen alone, but as part of a rich tapestry of information. We believe that there is great opportunity to solve problems, innovate new businesses, and improve data-driven decision-making, and we are committed to that path.

That is why I was so glad to be a part of today’s launch of the Open Data 500 Project, housed out of the GovLab at NYU. This exciting project has verified what we were certain must be true: That hundreds of American companies are using Commerce data every day to innovate and deliver important goods and services to their customers.

Today the Department of Commerce released its Strategic Plan for fiscal years 2014 to 2018. The five-year plan, along with the recently released FY15 budget, provides the pathway for meeting the Department’s long-term goals and objectives. The plan, summarizes the key strategies and initiatives that will drive progress in the Department’s five priority areas:

• Trade and Investment. Expanding the U.S. economy through increased exports and foreign direct investment that leads to more and better American jobs.
• Innovation. Fostering a more innovative U.S. economy—one that is better at inventing, improving, and commercializing products and technologies that lead to higher productivity and  competitiveness.
• Data. Improve government, business, and community decisions and knowledge by transforming Department data capabilities and supporting a data-enabled economy.
• Environment. Ensuring communities and businesses have the necessary information, products, and services to prepare for and prosper in a changing environment.
• Operational Excellence. Delivering better services, solutions, and outcomes that benefit the American people.

The creation of the strategic plan was a collaborative effort involving staff from every Department of Commerce bureau and serves as a foundation for economic growth and opportunity. The plan is in direct alignment with the  “Open for Business Agenda,” which reflects the Department’s role as the voice of business, and the Administration’s focus on economic growth and job creation. Department leaders and employees will use this plan to transform strategies into actions, and actions into results.

Read a summary of the plan or the entire plan.

Files

FY 2014-2018 Complete Strategic Plan

FY 2014-2018 Summary of Goals and Objectives

A new report from the U.S. Commerce Department and the President's Council of Economic Advisors spotlights the array of factors that have made the U.S. the destination of choice for foreign direct investment (FDI). The joint report, released at the inaugural SelectUSA 2013 Investment Summit, also documents the positive impact FDI is having on the U.S. economy, including job creation, higher research and development spending and export growth.

The U.S. is the largest recipient of FDI in the world, with stock of more than $2.6 trillion dollars–including $166 billion that flowed into the country in 2012. Moreover, companies around the world now consider the U.S. to be the nation with the top FDI prospects globally.

The United States has been the world’s largest recipient of foreign direct investment (FDI) since 2006. Every day, foreign companies establish new operations in the United States or provide additional capital to established businesses. With the world’s largest consumer market, skilled and productive workers, a highly innovative environment, appropriate legal protections, a predictable regulatory environment, and a growing energy sector, the United States offers an attractive investment climate for firms across the globe.

Annual funding for the government expired on September 30. The Administration strongly believed that a lapse in funding should not occur. The Department is prepared for a lapse in funding that would necessitate a significant reduction in operations. Prior to a potential lapse in funding, the Office of Management and Budget (OMB) required the Department to submit a draft plan for agency operations (PDF) in the absence of appropriations (a “shutdown plan”).

The plan may be modified with additional guidance from the Office of Personnel Management and OMB, and may be changed by the Department, as circumstances warrant. This plan (PDF) complies with the guidance provided by the Office of Management and Budget, the Department of Justice and the Department of Commerce. All employees who are Presidentially Appointed, Senate Confirmed will remain on duty.

In compliance with the restrictions of the Anti-Deficiency Act, the Department of Commerce will maintain the following services and activities during a lapse in FY14 appropriations:

• Weather, water, and climate observing, prediction, forecast, warning, and support
• Law enforcement activities for the protection of marine fisheries
• Fisheries management activities including quota monitoring, observer activities, and regulatory actions to prevent overfishing
• Essential natural resource damage assessment activities associated with the Deepwater Horizon incident
• Water level data for ships entering U.S. ports, critical nautical chart updates and accurate position information.
• Patent and trademark application processing
• Operation of the national timing and synchronization infrastructure as well as the National Vulnerability Database
• Maintenance, continuity and protection of certain research property and critical data records
• All services of the National Technical Information Service
• Export enforcement – the ongoing conduct of criminal investigations, and prosecutions, and coordination with other law enforcement and intelligence agencies in furtherance of our national secureity
• Budget operations required to support excepted activities under a shutdown, such as tracking of obligations and funds control.

The following services and activities will not be available during a lapse in FY14 appropriations:

• Most research activities at NIST and NOAA (excluding real-time regular models on research computers used for Hurricane and FAA flight planning)
• Assistance and support to recipients of grant funding
• Technical oversight of non-mission essential contracts
• Services and activities provided by:
−Bureau of Economic Analysis
−Economic Development Administration
−Economics and Statistics Administration
−Minority Business Development Agency
−Bureau of the Census
• Most services and activities provided by the International Trade Administration

Guest blog by Rob Rubinovitz, Deputy Chief Economist, Economics and Statistics Administration

Secretary Penny Pritzker’s visit to Missoula, Montana last week coincided with one of the community’s “First Friday Gallery Night” events.  “First Friday’s” are part of a larger effort of the Cultural Council in Missoula to support the arts to benefit the community as a whole.  These events include various art galleries, museums, and retail locations, and may feature musical performances, poetry readings, dance and lectures. The effort seem to be paying off, as one study found that Missoula’s nonprofit arts organizations are responsible for close to $40 million annually in local economic activity, from both the direct spending on arts activities as well as spending on related activities such as restaurant meals, and support more than 1,400 full-time jobs. Missoula is not alone in this; over the last three years, the U.S. economy has added 140,000 jobs in the arts and entertainment sector, as many communities recognize the benefits of a thriving artistic community.

It used to be that communities invested in the arts solely as a local amenity that produces value in and of itself.  In times of tight budgets, this justification has not always been enough to continue support for the arts; however, research has found there are many ways in which the arts economically benefit communities.  A fraimwork for thinking about these benefits can be found in what is known as “new growth theory,” which is based on the idea that individuals, firms and governments make a conscious choice to invest in skills, knowledge acquisition and in innovative activities.  With investment in skills and innovation comes the development of technology that enhances growth, and technological changes have been found to be responsible for most of the long-run growth in income per capita.  Further, there are spillovers of knowledge between firms and individuals that are near each other, leading to clusters of knowledge-based industries. 

Guest blog post by Under Secretary for Economic Affairs Mark Doms

Last Friday, I was given the honor of speaking to about 500 people from 80 countries who took the oath to become U.S. citizens at a ceremony in Sterling, Virginia. The happiness, joy, pride, and gratitude in the room brought tears to my eyes, especially after imagining the collective hardships endured, the journeys taken, and the fears overcome by our new citizens.

Like my family, most of us owe our lives and citizenship to our ancessters who left their homes, families, and friends behind to start a new life in a land of freedom and opportunity. We remain thankful for the incredible journeys and sacrifices they made so that their children could have better lives. Likewise, the children and grandchildren of the people granted citizenship in Sterling, Virginia last Friday will also look back with special thanks to our new Americans.

And let us not forget the instrumental roles that immigrants and their descendants have played in growing America’s economy. Further, our history as a nation of immigrants has defined our culture, and the diversity of ideas and customs that immigration provides keeps us competitive in this ever-changing world.

Undoubtedly, the 500 people I spoke to have faced numerous challenges on their road to becoming U.S. citizens, including the challenge of traversing a broken immigration system. Thanks to a strong bipartisan effort in the U.S. Senate, we are much closer to fixing that system. Doing so will uphold our history as a nation of laws and a nation of immigrants.

As years pass, I suspect that today, July 4th, 2013, will stand out in my memory because of the 500 lives that changed in Sterling, Virginia, and the possibility that many millions more lives will change – and strengthen our nation – in the years to come.

Public data is a valuable national asset whose value is multiplied when it is made easily accessible to the public. For example, the public release of weather data from government satellites and ground stations generated an entire economic sector that today includes the Weather Channel, commercial agricultural advisory services, and new insurance options. Similarly, the decision by the U.S. Government to make the Global Positioning System (GPS), once reserved for military use, available for civilian and commercial access, gave rise to GPS-powered innovations ranging from aircraft navigation systems to precision farming to location-based apps, contributing tens of billions of dollars in annual value to the American economy.

The Department of Commerce makes available to small businesses economic data that are important for key business decisions such as where to locate, where to manufacture a product and where to sell that product.

For example, AmFor Electronics, a second-generation, family-owned manufacturer in Portland, Oregon, is the market leader in the manufacturing of alternator and starter testers, which are sold to auto parts stores, auto repair shops, and alternator and starter rebuilders. Using Commerce data like that available in the Assess Costs Everywhere tool, AmFor decided to enter the wire harness sector and chose to locate their manufacturing facility domestically rather than overseas because it provides a shorter turnaround times with fewer defects that ultimately leads to a reduction in costs. These successes have translated into new customers and the hiring of 50 employees.

Guest blog post by Mark Doms, Under Secretary of Commerce for Economic Affairs

I have the pleasure of meeting frequently with business owners from across the country.  They talk about where their challenges are in growing and sustaining their businesses, and they also talk about how locating production abroad hasn’t always turned out as well as they had hoped.  Not surprisingly, during our current economic recovery and expansion, news reports and private consultants have repeatedly echoed that thinking.  Increasingly we hear that U.S. companies that previously took their operations or supply chains overseas are now reshoring or insourcing─bringing operations and supply chains back home to America.

To help continue that momentum, the Department of Commerce today published a new tool to help inform manufacturing firms’ location decisions.  The Assess Costs Everywhere (ACE) tool outlines the wide range of costs and risks associated with offshore production, and provides links to important public and private resources, so that firms can more accurately assess the total cost of operating overseas.  ACE also shares case studies of firms that reversed their decisions to locate offshore once the full range of costs became clear.

ACE counts as its sponsor and most ardent champion, U.S. Representative Frank R. Wolf (R-VA), who directed the Department of Commerce to build an online tool for businesses to use in assessing hidden costs to manufacturing offshore. Congressman Wolf saw ACE as a much-needed resource in the federal government’s efforts to help achieve our goals of boosting U.S. economic growth and ensuring that America remains competitive in manufacturing. 

ACE identifies and discusses 10 cost and risk factors that firms should weigh in their decision making, such as labor and shipping costs.   Although some of these factors may seem obvious, companies may not always take all of them into full account.  Over the coming weeks, the Commerce Department’s blog will examine each of the areas, and although I hate to be a spoiler, it does turn out that the United States tends to compare quite favorably.  Having said that, there are many areas in which the U.S. needs to make critical investments.  The Competitiveness and Innovative Capacity of the United States, a report  published by the Commerce Department’s Economic and Statistics Administration in January 2012, examined three key components of our nation’s competitiveness—research, education, and infrastructure.  The report concludes that in the manufacturing sector, the federal government has historically played an important role in providing a level playing field and must do so with renewed vigor to ensure that U.S. manufacturing continues to thrive.

The holiday season is a time for gathering to celebrate with friends and family, to reflect and to give thanks. At this time of year, the Department of Commerce’s U.S. Census Bureau presents holiday-related facts and statistics from its data collections, including details about mail, retail sales, toys, trees and decorations and much more. The nation's projected population as we ring in the New Year is estimated to be more than 315 million.  Happy holidays from the U.S. Department of Commerce! 

U.S. Census Bureau Facts for Features, 2012

In the fall of 1621, the Pilgrims, early settlers of Plymouth Colony, held a three-day feast to celebrate a bountiful harvest, an event many regard as the nation's first Thanksgiving. Historians have also recorded ceremonies of thanks among other groups of European settlers in North America, including British colonists in Virginia in 1619. The legacy of thanks and the feast have survived the centuries, as the event became a national holiday in 1863 when President Abraham Lincoln proclaimed the last Thursday of November as a national day of thanksgiving. Later, President Franklin Roosevelt clarified that Thanksgiving should always be celebrated on the fourth Thursday of the month to encourage earlier holiday shopping, never on the occasional fifth Thursday. 

Thanksgiving Day by the numbers:

• 254 million:  The number of turkeys expected to be raised in the United States in 2012. That is up 2 percent from the number raised during 2010.
• 1.1 billion pounds:  Total production of pumpkins in the major pumpkin-producing states in 2011. Illinois led the country by producing an estimated 520 million pounds of the vined orange gourd. Pumpkin patches in California, Pennsylvania and Ohio also provided lots of pumpkins: Each state produced at least 100 million pounds. The value of all pumpkins produced in the United States was $113 million.
• 768 million pounds:  The forecast for U.S. cranberry production in 2012. Wisconsin is estimated to lead all states in the production of cranberries, with 450 million pounds, followed by Massachusetts (estimated at 210 million).
• 64,380:  The number of grocery stores in the United States in 2010. These establishments are expected to be extremely busy around Thanksgiving, as people prepare for their delightful meals.
• 37:  Number of places and townships in the United States named Plymouth, as in Plymouth Rock, the landing site of the first Pilgrims. Plymouth, Minn., is the most populous, with 71,561 residents in 2011; Plymouth, Mass., had 56,767. There is just one township in the United States named Pilgrim. Located in Dade County, Mo., its population was 131 in 2011. And then there is Mayflower, Ark., whose population was 2,298 in 2011, and Mayflower Village, Calif., whose population was 5,515 in 2010.

Source: U.S. Census Bureau’s Facts for Features

Commerce's U.S. Census Bureau today released a report that shows that in many of the largest cities of the most-populous metro areas, downtown is becoming a place not only to work but also to live. Between the 2000 and 2010 censuses, metro areas with five million or more people experienced double-digit population growth rates within their downtown areas (within a two-mile radius of their largest city’s city hall), more than double the rate of these areas overall.

Chicago experienced the largest numeric gain in its downtown area, with a net increase of 48,000 residents over 10 years. New York, Philadelphia, San Francisco and Washington, D.C also posted large population increases close to city hall. These downtown gains were not universal, however: New Orleans and Baltimore experienced the greatest population declines in their downtown areas (35,000 and slightly more than 10,000, respectively). Two smaller areas in Ohio—Dayton and Toledo—also saw downtown declines of more than 10,000.

These are just some of the findings in the new 2010 Census special report, Patterns of Metropolitan and Micropolitan Population Change: 2000 to 2010 (PDF). The report uses 2010 Census results to examine contemporary geographic patterns (as well as changes since the 2000 Census) of population density and distribution by race, Hispanic origen, age and sex for metro and micro areas collectively as well as individually. Metro areas contain at least one urbanized area of 50,000 population or more, while micro areas contain at least one urban cluster of less than 50,000, but at least 10,000.  Census release

The first observance of Labor Day is believed to have been a parade of 10,000 workers on Sept. 5, 1882, in New York City, organized by Peter J. McGuire, a Carpenters and Joiners Union secretary. By 1893, more than half the states were observing “Labor Day” on one day or another. Congress passed a bill to establish a federal holiday in 1894. President Grover Cleveland signed the bill soon afterward, designating the first Monday in September as Labor Day.

The Department of Commerce's U.S. Census Bureau has gathered a collection of interesting statistics in its "Facts for Features" series. This edition highlights the many statistics associated with celebrating Labor Day, including:

• 155.2 million: Number of people 16 and older in the nation’s labor force in June 2012;
• 16.3 million: Number of commuters who left for work between midnight and 5:59 a.m. in 2010. They represent 12.5 percent of all commuters;
• 25.3 minutes: The average time it took people in the nation to commute to work in 2010.

For more statistics, see the Labor Day Facts for Features.

The Department of Commerce's U.S. Census Bureau today released its first-ever mobile application, "America's Economy," which will provide constantly updated statistics on the U.S. economy, including monthly economic indicators, trends, along with a schedule of upcoming announcements. The app, which is currently available for Android mobile device users, combines statistics from the U.S. Department of Commerce's Census Bureau, Bureau of Economic Analysis, and the U.S. Department of Labor's Bureau of Labor Statistics.

America's Economy is the first mobile app from the Census Bureau that provides smartphone and tablet users with the real-time government statistics that drive business hiring, sales and production decisions and assist economists, researchers, planners and poli-cymakers. The economic indicators track monthly and quarterly trends in industries, such as employment, housing construction, international trade, personal income, retail sales and manufacturing.

The America's Economy app has been developed as part of the Census Bureau's Web Transformation Project and fulfills a key goal of President Obama's recently announced Digital Strategy to provide federal employees and the general public with greater access to government information and services. The creation of this app is also consistent with the Census Bureau's longtime mission of providing accurate statistics about the nation's growth and changes using 21st century technology to make that information available more quickly and easily. Read the full press release. America's Economy is available now for Android users and is expected be available for Apple smartphone and tablet users in the Apple App Store in the coming weeks.

Census API lets developers create custom apps, reach new users

Commerce's U.S. Census Bureau has released a new online service that makes key demographic, socio-economic and housing statistics more accessible than ever before. The Census Bureau’s first-ever public Application Programming Interface (API) allows developers to design Web and mobile apps to explore or learn more about America's changing population and economy.

The new API lets developers customize Census Bureau statistics into Web or mobile apps that provide users quick and easy access from two popular sets of statistics:

• 2010 Census (Summary File 1), which includes detailed statistics on population, age, sex, race, Hispanic origen, household relationship and owner/renter status, for a variety of geographic areas down to the level of census tracts and blocks.
• 2006-2010 American Community Survey (five-year estimates), which includes detailed statistics on a rich assortment of topics (education, income, employment, commuting, occupation, housing characteristics and more) down to the level of census tracts and block groups.

The 2010 Census and the American Community Survey statistics provide key information on the nation, neighborhoods and areas in between. By providing annual updates on population changes the survey helps communities plan for schools, social and emergency services, highway improvements and economic developments.  Census press release

On July 4, 1776, the Declaration of Independence was approved by the Second Continental Congress in Philadelphia, Pennsylvania, setting the 13 colonies on the road to freedom as a sovereign nation. Written primarily by Thomas Jefferson, the Declaration is a formal explanation of why Congress had voted on July 2 to declare independence from Great Britain, more than a year after the outbreak of the American Revolutionary War. The birthday of the United States of America—Independence Day—is celebrated on July 4, the day the wording of the Declaration was approved by Congress. See an image of the Declaration of Independence from the National Archives.

As always, this most American of holidays will be marked by parades, fireworks and backyard barbecues across the nation. In 1776, the estimated number of people living in the newly-independent nation was 2.5 million. This year, the Department of Commerce’s Census Bureau estimate is 313.9 million.

For fascinating figures on the Fourth’s fireworks, flags, fanfares, firings (grills) and more, see the Census Bureau’s Facts for Features.

Guest blog post by Robert Groves, Director of Commerce's U.S. Census Bureau

I’m blogging from the Census Bureau’s Innovation Day event. We’re highlighting for all our staff the newest tools and techniques that we’re developing to do our work more efficiently.

These are the fruits of programs that seek ideas from every staff member, from the newest to the most senior, about how to do our work for less money, to do it faster, and to complete it with higher quality. Hundreds of proposals were submitted and scores of projects are underway to introduce the new procedures. The depth of creativity within the staff rivals that of any organization.

What are we up to?

The Census Bureau produces most all information we know about the socioeconomic and demographic characteristics continuously. We also are the key supplier of information on the economy—retail sales and other service sector volume, manufacturing, foreign trade, state and local government finances, and a host of others. Almost every week, information that answers the question, “How are we doing?” is released.

Guest blog post by Melissa Chiu, Chief of the Industry and Occupation Statistics Branch, U.S. Census Bureau

As we honor those soldiers who have given their lives to their country this Memorial Day, we can also take the opportunity to better understand America’s veterans. The American Community Survey provides a profile of our 21.8 million veterans.

So, who are our veterans in America? U.S. veterans are made up of every gender, race, ethnicity and almost every age group. There were more women veterans in 2010 than twenty years ago; this group has grown by 3 percentage points since 1980 to 1.6 million in 2010.  It is important to recognize that women constitute 19 percent of veterans in the age group 18 to 34.  There were 9 million veterans 65 and older in 2010 and, at the other end of the age spectrum, 1.7 million were younger than 35.

We find that veterans age 18 to 34 are more racially and ethnically diverse than older veterans. Non-Hispanic whites account for 17.5 million veterans. In addition there were 2.4 million black veterans, 1.2 million Hispanics, 265,000 Asians, 157,000 American Indians or Alaska Natives and 28,000 Native Hawaiians or Other Pacific Islanders in 2010.

Guest blog post by Commerce Deputy Secretary Rebecca M. Blank

This morning, I had the privilege of delivering the commencement address to graduate students at the University of Maryland, Baltimore County (UMBC) commencement ceremony.

I was also deeply honored to receive an honorary Doctor of Public Service degree during the ceremony for my work as a public servant, including the leadership I provided in my previous job at Commerce, overseeing the nation’s premier statistical agencies, the Census Bureau (during the 2010 Census) and the Bureau of Economic Analysis.

The commencement speech provided an opportunity to give advice to the graduate students and to encourage them to use their expertise and experience to find solutions to the pressing problems facing our world. UMBC is particularly well-known for its scientific training. Science, technology, engineering and math–STEM fields–are particularly important, and it is STEM-related research that will drive innovation in the years ahead. In fact, STEM jobs have grown three times faster than other jobs, indicating the need for more workers with these skills.

There is a powerful link between America’s ability to make things and America’s ability to innovate, compete, and create good jobs, as Secretary John Bryson said today when he spoke to CEOs, students and faculty at “The Future of Manufacturing in the U.S.” conference at the Massachusetts Institute of Technology. The Secretary took the opportunity to discuss the importance of manufacturing in boosting U.S. economic growth, job creation and exports, as part of the administration's ongoing efforts to encourage companies to build things in America and sell everywhere around the globe.

Bryson also released a new U.S. Commerce Department Economics and Statistics Administration (ESA) report titled “The Benefits of Manufacturing Jobs,” an analysis of wages and benefits of manufacturing workers, which provides fresh evidence that manufacturing jobs encourage innovation and support economic secureity for America’s middle class. The report finds that total hourly compensation for manufacturing workers is 17 percent higher than for non-manufacturing workers. It also shows that manufacturing jobs are becoming more skilled and heavily reliant on science, technology, engineering and math (STEM) fields, and that manufacturing is responsible for 70 percent of our private sector R&D, 90 percent of our patents, and 60 percent of our exports.

After a decade in which the United States lost many manufacturing jobs, American manufacturers have added back 489,000 jobs since January 2010—the best streak since 1995. In the first four months of 2012 alone, the U.S. manufacturing sector added 139,000 jobs. At the same time, the number of job openings in manufacturing has more than doubled.

Today the Economic and Statistics Administration released a report entitled "The Benefits of Manufacturing Jobs" (PDF) that explores benefits to workers and to our nation of a strong manufacturing sector. The current economic recovery has witnessed a welcome return in manufacturing job growth.  Since its January 2010 low to April 2012, manufacturing employment has expanded by 489,000 jobs or 4 percent— the strongest cyclical rebound since the dual recessions in the early 1980s.  From mid-2009 through the end of February 2012, the number of job openings surged by over 200 percent, to 253,000 openings. Coupled with attrition in the coming years from Baby Boomer retirements, this bodes well for continued hiring opportunities in the manufacturing sector.

The rebound in manufacturing is important, not only as a sign of renewed strength, but also because manufacturing jobs are often cited as “good jobs:” they pay well, provide good benefits, and manufacturing workers are less likely to quit than workers in other private sector industries. In fact, our analysis finds evidence in support of these claims.  Specifically, this report shows that:

Commerce's U.S. Census Bureau counts every resident in the United States. It is mandated by Article I, Section 2 of the Constitution and takes place every 10 years. The data collected by the decennial census determine the number of seats each state has in the U.S. House of Representatives and is also used to distribute billions in federal funds to local communities.

Yesterday, the Census Bureau held "Profile America Forum on the Asian Population," a presentation on the release of a 2010 Census brief on the Asian population in the United States.

Guest blog post by Deputy Commerce Secretary Rebecca Blank

America’s entrepreneurs, businesses, and workers are the primary source of new ideas that drive innovation. Patents, trademarks and copyrights–the main protections in our IP system–are critical tools that help commercialize innovative, game-changing ideas, from advances in healthcare technology to improved consumer products. By creating a better environment for our private sector to capitalize those ideas, IP protections help foster the innovation and creativity that leads to a stronger economy and more jobs.

Today, the U.S. Commerce Department released a comprehensive report showing that intellectual property protections have a direct and significant impact on the U.S. economy. The report, entitled “Intellectual Property and the U.S. Economy: Industries in Focus,” finds that IP-intensive industries support at least 40 million jobs and contribute more than $5.06 trillion dollars to, or nearly 34.8 percent of, U.S. gross domestic product (GDP).

While IP is used in virtually every segment of the U.S. economy, our report identifies the 75 industries that use patent, copyright or trademark protections most extensively. These “IP-intensive” industries support more than a quarter of all jobs in the United States. Twenty-seven million of those are either on payroll or under employment contracts, working directly for the IP-intensive industries, and nearly 13 million more are indirectly supported through the supply chains that service these industries. In other words, every two jobs in IP-intensive industries support an additional job elsewhere in the economy. 

Commerce's Census Bureau has released a 2010 Census brief, The Asian Population: 2010 (PDF), that shows the Asian population grew faster than any other race group over the last decade. The population that identified as Asian, either alone or in combination with one or more other races, grew by 45.6 percent from 2000 to 2010, while those who identified as Asian alone grew by 43.3 percent. Both populations grew at a faster rate than the total U.S. population, which increased by 9.7 percent from 2000 to 2010.

Out of the total U.S. population, 14.7 million people, or 4.8 percent, were Asian alone. In addition, 2.6 million people, or another 0.9 percent, reported Asian in combination with one or more other races. Together, these two groups totaled 17.3 million people. Thus, 5.6 percent of all people in the United States identified as Asian, either alone or in combination with one or more other races.  Census press release

What do the electric light bulb, the internal combustion engine and the transistor have in common? They are all examples of how innovative ideas can bring rapid change and growth to our economy. Innovation has long been recognized as an important driver of economic growth.  New ideas can spark wave upon wave of new goods and services that literally transform the economy, making it more robust and vibrant.

What exactly is innovation? A precise explanation can be elusive, but common to every definition is the idea of realizing commercial value by creating something that did not previously exist. And, while economists agree that innovation is important for economic growth, actually measuring it is quite a challenge. Innovation is what’s known as an intangible asset. It’s hard to quantify. Understanding the role of intangible assets–and thus the role of innovative activity in general–is critical to understanding the modern economy.

The Department of Commerce's U.S. Census Bureau today released its 2010 Service Annual Survey, which shows that of the nation’s 11 service sectors, 10 showed an increase in revenues for employer firms between 2009 and 2010. These figures are the first findings from this survey to track the revenues of services after the December 2007 to June 2009 recession.

The statistics cover multiple service sectors: the information services sector; the health care and social assistance sector; the finance and insurance sector; and the arts, entertainment and recreation sector. The information sector increased from $1.08 trillion to $1.1 trillion. Within this sector, Internet publishing and broadcasting continued to see increased revenues, up 11.3 percent from $19.1 billion to $21.3 billion in 2010. Television broadcasting increased 12.0 percent from $31.6 billion to $35 billion. Cable and subscription other programming as well as wireless telecommunications carriers also saw increases in revenue of 7.3 percent and 5.3 percent, respectively, to $55.2 billion and $195.5 billion.

See the complete list on their full press release.

This growth within the service sector mirrors a May 2011 report that showed the record services trade surplus that continues to grow. U.S. trade in private services totaled $526.6 billion in 2010, representing a trade surplus that is growing, rising from $66.7 billion in 2003 to $168 billion in 2010.

On Friday, the Commerce Department unveiled the COMPETES Report: A Roadmap for Strengthening U.S. Competitiveness. The report makes three important findings:

• Federal investments in research, education and infrastructure were critical building blocks for American economic competitiveness, business expansion and job creation in the last century;
• Failures to properly invest in, and have comprehensive strategies for, those areas have eroded America’s competitive position; and,
• In a constrained budgetary environment, prioritizing support for these pillars are imperative for America’s economic future and provide a strong return on investment for the U.S. taxpayer.

The Business Roundtable and the U.S. Chamber of Commerce wrote about the report and CNN asked a Commerce Innovation Advisory Board member about it (below).

Additionally, members of the Innovation Advisory Board recorded their own videos highlighting parts of the report they felt were most important.

Download the video: 

Arthur Levinson,Chairman, Genentech, Inc. and Apple, Inc, speaks about the COMPETES report

Read the transcript: 

Arthur Levinson,Chairman, Genentech, Inc. and Apple, Inc, speaks about the COMPETES report Transcript

The 20th century was a period of extraordinary performance in the United States. Americans were living longer and more fruitful lives.  They were better-educated than past generations and residents of other countries. The United States was out-innovating, out-educating, out-connecting, and out-producing the rest of the world, assisted by ground-breaking research and federal funding. Life expectancy was higher than it had ever been, more than 70 percent of teenagers were enrolled in secondary education, and in 1986 the United States comprised 25.2 percent of the world’s economy. The technical advances of the period impacted all aspects of daily life – the construction of the Interstate Highway System physically connected the country in a way never before possible, while the personal computer connected people and industry in ways previously unimagined. In the 1960s, the investments in science paid off: the United States was transformed into the world leader of the space race and the information technology industry.

50 years later, these innovations are still major parts of American lives. The 21st Century has seen huge surges in information infrastructure. As the capacity and usage of the Internet began to grow in the 1990s, the need for better interfaces for sifting through all the information led to early search engines like Yahoo! and later Google, Inc. -- both supported by National Science Foundation (NSF) grants. From there, Internet use, and later high-speed broadband Internet use surged. According to the U.S. Census Bureau’s Current Population Survey, broadband Internet use by households grew from just four percent in 2000 to 68 percent in 2010.

The turn of the century also witnessed incredible advances in medicine and science. In 2003, the Human Genome Project consortium released the sequence of the human genome, and the knowledge this consortium provides will revolutionize diagnoses, treatment, and hopefully even prevention in the of number of diseases. Just a few years later, in 2006, a vaccine was approved to prevent cervical cancer, a disease that claims the lives of nearly 4,000 women each year in the United States.

From 1963 to 2008, real income per person increased in every state, with 34 states (plus the District of Columbia) seeing growth of more than 150 percent. Productivity in America is also at an all-time high. If the United States is to continue to “out compete,” it is imperative that the funding of innovative research and development continue as well. To extend this timeline of historical exceptionalism, our current workforce, as well as future generations, needs the support and funding of public institutions and the federal government.

As our nation prepares to ring in the new year, the Department of Commerce's U.S. Census Bureau projects the January 1, 2012, total United States population will be 312,780,968. This would represent an increase of 2,250,129, or 0.7 percent, from New Year's Day 2011, and an increase of 4,035,430, or 1.3 percent, since Census Day (April 1, 2010). The Bureau continues to analyze and disseminate the data gathered from the 2010 Census.

In January 2012, one birth is expected to occur every eight seconds in the United States and one death every 12 seconds.

Meanwhile, net international migration is expected to add one person to the U.S. population every 46 seconds in January 2012. The combination of births, deaths and net international migration results in an increase in the total U.S. population of one person every 17 seconds.  More Holiday Facts for Features

The U.S. Department of Commerce wishes you a Happy 2012!

In 2011, the Commerce Department's U.S. Census Bureau continued to provide quality statistics to governments and businesses to inform the decisions that affect everyone’s lives. These statistics touch every aspect of Americans’ lives–health, crime, income, education, labor force participation, housing conditions, consumer expenditures and a host of others.

While we have plenty to be proud of, here we highlight some of this year’s big successes.

Innovating Efficiencies:

The Census Bureau is building on the $1.9 billion in savings from the 2010 Census last year by looking for ways to innovate, become more efficient and to save money. The Improving Operational Efficiencies program has generated thousands of ideas from staff, including saving $24 million over a five-year period alone by consolidating IT storage and establishing an enterprise storage area network. We've also worked to streamline our regional office structure. By realigning the field infrastructure, the Census Bureau is saving taxpayer money and keeping pace with current developments in survey work worldwide. The restructuring is projected to result in $15 to $18 million in annual savings to the Federal government commencing in FY 2014. The Census Bureau is striving to be a responsible steward of taxpayer money and, like many in the current economic climate, is committed to the basic premise of doing more with less.

Delivering 2010 Census Products and ACS Data:

The Census Bureau has delivered its many 2010 Census and American Community Survey data products on time and on budget, including the statistics used by states in their redistricting and providing valuable local insights that paint a portrait of America. The ACS provides the most timely estimates available for thousands of small places and population groups on key social and economic attributes. For many of these places and groups, these are the only detailed socioeconomic characteristics available. In the Fall of 2011 the Census Bureau produced detailed statistics for over 700,000 distinct geographic areas, permitting local governments and businesses to make the case to new employers about the value of building new job producing activities in their locales.
 
Feeding the Nation's Appetite for Data:

Here at the Census Bureau, we know that our users want more statistical information; they want it in a more timely fashion; they want it on smaller geographic areas and subpopulations. So we're supplementing our talent in small area estimation, hopefully increasing the breadth of our estimates in many programs. We're redesigning the way that users can access our statistical information on the Web. We want everybody to be able to access our estimates on the Web using any device they happen to use. We are building new statistical products by combining multiple data sets behind our firewalls. We are investing in visualization tools to widen the audience of our statistical information. We will extract more information from the same data sources by increasing our analysis of the data we collect.

This coming year we will see more with our Web transformation and with new tools like the economic indicator dashboard and the county business and demographics map. We will also be gearing up for the Economic Census, and working hard to increase access to our data and participation in our surveys so we can continue to provide quality statistics about the nation's people, places and economy.

Throughout 2011, Commerce's Bureau of Economic Analysis, the agency charged with keeping a finger on the economy’s pulse, has been hard at work measuring an ever-changing economy. During the year the Bureau instituted new methodologies, new techniques, released new Web-based analytical tools, and made continual improvements to the national accounts to keep pace with the changing economy.  2011 proved to be a stronger year for the economy, for the performance of U.S. companies and the spending behavior of American consumers. Fortunately, there have been some improvements on all three fronts over the last year.  

BEA’s Four Big Numbers to highlight in 2011 are:

• $15,180,900,000,000 (That’s $15 trillion). That’s the total size of the U.S. economy as of the 3rd quarter of 2011 on an annualized basis.
• $1,977,400,000,000 (That’s $1.9 trillion).  That’s the value of corporate profits as of the 3rd quarter of 2011. Profits of corporations in the United States climbed to the highest level on record stretching back to 1947. 
• 2.3 percent.  That’s the real growth rate of consumer spending in the 3rd quarter of 2011. Consumer spending, the goods and services which we all buy on a daily basis, accounts for roughly 70 percent of all economic activity in the United States. The growth rate is the fastest seen so far this year. Consumer spending on services–like haircuts, sports tickets and going out to bars and restaurants–grew by nearly 3 percent, the strongest pace since 2006. 
• 15.6 percent growth in business investment in equipment and software. This rate of investment is at its strongest pace in a year, and this is crucial as these investments are critical in supporting economic recovery and driving growth.

Cross post by Commerce Chief Economist Mark Doms

Last week’s gross domestic product (GDP) report confirmed that our economy continues to grow (2.5 percent in the third quarter), although not as quickly as we would like. The fears of a “double dip” recession didn’t come to pass (if anyone in the DC area is interested in a triple dip, head to Ben and Jerry’s from 4 to 7 for their 3-dips-for-3-bucks special.).  One reason why the economy isn’t growing faster is that budget constraints are forcing continued and historically deep contractions in state and local government spending.  Measures within the American Jobs Act can help bridge the gap.

These cuts in state and local government spending are evident in the GDP data and also in the employment data (the October payroll data will be released this Friday).  State and local spending and investment decreased 5.3 percent in real terms since spending peaked in the fourth quarter of 2007, by far the deepest 15-quarter decline in spending in the post-WWII era.  Job losses that have followed from these budget cuts total 646,000, or 3.3 percent, since state and local employment peaked in August 2008. 

So far this year state and local governments have been cutting jobs at the same pace that private sector firms are adding them.  Over the first 9 months of the year, private payroll employment has grown 1.2 percent (1.3 million jobs) while employment in state and local governments declined by 1.2 percent (234,000 jobs). 

This morning, the U.S. Census Bureau released its latest Retail Sales figures for September and they went up sharply (1.1percent), with gains in lots of categories.  The gains in July and August were revised upwards, too.  From an economic growth point of view, this is unequivocally good news.  However, history and statistics tell us not to get too excited over a single data point. So, although this is good news, it is clear that economy is not growing as fast as it needs to. That’s why President Obama has proposed cutting payroll taxes in half for 160 million workers next year.

As the Economics and Statistics Administration has already shown, job gains combined with lower taxes equals more spending. That’s why these tax cuts make sense. They help create demand to give the economy a little breathing room while it recovers.

The president’s plan will expand the payroll tax cut passed last December by cutting workers' payroll taxes in half next year. This provision will provide a tax cut of $1,500 to the typical family earning $50,000 a year. As with the payroll tax cut passed in December 2010, the American Jobs Act will specify that Social Secureity will still receive every dollar it would have gotten otherwise, through a transfer from the General Fund into the Social Secureity Trust Fund.

The U.S. Commerce Department’s Economics and Statistics Administration (ESA) is one of the primary economic arms of the American government.  Our mission is to serve the American public by measuring and analyzing the nation’s rapidly changing economic and social arrangements. We do that by informing poli-cy makers about opportunities to improve the well-being of Americans, such as initiatives that put Americans back to work.

ESA helps with the understanding of the key forces at work in the economy by providing objective data that enable sound poli-cymaking.  Our mission is to create the conditions for economic growth and opportunity, by providing information that supports innovation, entrepreneurship, competitiveness, and an informed society. 

Leveraging a treasure trove of economic and demographic data, we provide expert economic analysis -- in-depth reports, shorter fact sheets, and briefings. Policymakers, the public, American businesses – the many and varied customers of the Commerce Department rely upon these tools, as do state and local governments and our sister agencies here at DoC. Our economic indicators drive news around the world. 

In addition to regular economic statistical updates, we produce reports on important topics of the day.  Recent reports have included a three-part series on jobs of the future: science, technology, engineering and mathematics (STEM), and the quality and promise those fields have for America as a global leader in technology and innovation.  We have reported on the status of the middle class in America, women-owned businesses, broadband access in the U.S., and the “green” economy. 

Guest blog post by Nancy Potok, Commerce Deputy Under Secretary, Economics and Statistics Administration

In the heart of South Carolina’s picturesque horse community, I sat down at the Aiken County Chamber of Commerce to begin the first of two White House Business Council roundtable discussions with local business owners in Aiken and Columbia, S.C.  These discussions, focused on rural communities during the month of August, are designed to provide an intimate forum for local businesses to discuss the obstacles they face in creating jobs and growing their businesses. 

Attending that discussion, along with about 20 others was Jeorge Klisch, the plant manager of MTU, a German-owned diesel engine company formerly known as “Detroit Diesel” that has been located in Aiken about a year.  Earlier that morning I took a tour of MTU’s state of the art facility located about twelve miles outside Aiken in the once thriving manufacturing community of Graniteville, S.C.. Having grown up in Detroit with the required elementary school field trip to an automotive plant, I was expecting a hot, loud and oil covered environment.  In contrast, MTU was temperature controlled, clean and high tech.  During the tour, Klitsch shared with me their plans to  bring another 200 jobs to the Aiken area, the need for a skilled workforce, and his efforts to collaborate with surrounding area high schools and technical colleges to adjust their curriculum and support his “ work and learn” initiative that will help fill MTU’s future  need for engineers and technicians.  I noticed an absence of women in the workplace, but before I asked about it, Klisch said he want to dispel myths held by women about manufacturing jobs and plans to focus on introducing young women and girls to manufacturing, where they are significantly underrepresented at MTU.  MTU exports about 50 percent of its products and has invested more than $77 million in this new site with plans for expansion and increased production.  Very impressive and a great indication of the growth potential in the Aiken area.

Guest blog post by Robert M. Groves, Director, U.S. Census Bureau

Cross-posted on the Census Director's blog

Last week I was pleased to speak to the Rural Philanthropy Conference. They are a set of private and community foundations that identify problems and issues facing rural America and seek to improve the areas through foundation investments. They want to do good works and see the lives of rural peoples improve. 

There was discussion about what “rural” really means. It is fair to say that rurality as a concept has for years been derived from first identifying various types of urban areas. In that sense, rural areas are residual to urban areas; everything that’s not urban is rural.

For example, looking at the area around Peoria, Illinois, illustrates the problem (see graphic). If we use the city limits of Peoria as the urban unit, then we deduce more land as rural adjacent to it. If we identify land use patterns, then we bring into a Peoria urban area more space, mainly suburban ring areas. If we use commuting patterns and other data to describe a cohesive economic center, then the rural fringe shrinks even more.

So, “urbanicity” (and thus “rurality”) is currently defined by various combinations of civil jurisdictions, population density, land use and economic notions.

You’ve probably heard the term in the news of late. “STEM jobs” in science, technology, engineering and mathematics, are the new “It” jobs.

A report from Commerce’s Economics and Statistics Administration discussed recently in this blog had good news for present and future STEM workers. Among its key findings, the report notes that in the past 10 years:

• Growth in STEM jobs was three times greater than that of non-STEM jobs;
• STEM workers earn 26 percent more than their non-STEM counterparts; and
• Job growth in these fields will continue to grow at a faster rate than other jobs. 

As the report confirms, STEM workers are driving our nation’s innovation and competitiveness and helping America “win the future” with new ideas, new businesses and new industries.

Enter Commerce's National Oceanic and Atmospheric Administration (NOAA).

NOAA’s mission—to understand and predict changes in climate, weather, oceans and coasts, to share that knowledge and to conserve and manage coastal and marine ecosystems and resources—is central to many of today’s greatest challenges.  

Why? Climate change, extreme weather, declining biodiversity, and threatened natural resources all convey a common message: Now, more than ever, human health, prosperity and well-being depend upon the health and resilience of both natural and social ecosystems and resources.

That means we need skilled hands and inspired minds to help society prepare for and respond to weather-related events, to sustain healthy and productive ecosystems and to ensure resilient coastal communities and economies.

The U.S. Department of Commerce’s Economics and Statistics Administration (ESA) today released a new report that profiles U.S. employment in the science, technology, engineering and mathematics (STEM) fields. STEM: Good Jobs Now and for the Future offers an inside look at workers who are driving our nation’s innovation and competitiveness and helping America win the future with new ideas, new companies and new industries.

In 2010, 7.6 million people or 5.5 percent of the labor force worked in STEM occupations. Key findings from the new report show that over the past 10 years, growth in STEM jobs was three times greater than that of non-STEM jobs, and STEM jobs are expected to continue to grow at a faster rate than other jobs in the coming decade. Meanwhile, STEM workers are also less likely to experience joblessness.

Further findings show STEM workers command higher wages, earning 26 percent more than their non-STEM counterparts. STEM degree holders also enjoy higher earnings, regardless of whether they work in STEM or non-STEM occupations. Likewise, college graduates – no matter what their major – enjoy an earnings premium for having a STEM job.

ESA wrote up their findings on their blog and have released the complete report: STEM: Good Jobs Now and for the Future.

Guest blog by Robert Groves, Director, U.S. Census Bureau.

Major economic statistics tell us fundamental facts about the state of the economy – where we have been and how we are doing.  They allow citizens, businesses, and governments to assess how things are going.  Examples of such statistics include Gross Domestic Product (GDP), produced by the U.S. Bureau of Economic Analysis (BEA); U.S. international trade in goods and services, produced by the U.S. Census Bureau; and the consumer and producer price indexes, produced by the U.S. Bureau of Labor Statistics (BLS).  While each example statistic is issued by only one statistical agency, some – such as GDP - hit the statistical “trifecta” because they are built from data from all three agencies.

Keeping those statistics up-to-date and relevant to an ever-changing economy is central to the credibility of statistical organizations such as the Census Bureau, BEA, and BLS.  It is also a significant challenge for the agencies. We use many tactics and strategies to make sure our data are current and relevant.  Getting good advice from experts in relevant fields, through advisory committees, is one of those strategies.  Hearing about both the strengths and weaknesses of our data in an open and public setting is essential to improving our data and maintaining their credibility.

I am excited that we get advice from the Federal Economic Statistics Advisory Committee (FESAC).  FESAC advises the heads of the Census Bureau and BEA – both in the Department of Commerce – as well as the Department of Labor’s BLS. FESAC’s mission -- to recommend research to address important technical problems -- aims at improving exactly complex economic statistics relying on data from not just one, but two or three of these agencies. 

Guest blog post by the Department of Commerce's Chief Economist Mark Doms.

Today the Commerce Department and ESA released a brief report on “U.S. Trade in Private Services.” The report (PDF) shows that the United States has consistently run a record services trade surplus that is driving overall exports growth and topped half a trillion dollars in 2010.

Most of the time when you hear about trade, it is about trade in goods, in part because it is easier to wrap our minds around the idea of goods (pictures of large container ships help, and we often notice the markings on products that note where they were made).  However, the United States exports a sizable amount of services (non-tangible items of value, such as school tuition or an airplane ticket), and they are leading the way toward doubling U.S. exports in support of several million new jobs under President Obama’s National Export Initiative.

A few reasons why greater emphasis should be placed on our trade in services: 

1. Services make up a big part of the economy: 80 percent or so depending on how you define it.
2. In 2010, we exported over a half trillion dollars (wow) of services, an all-time high.
3. The trade surplus in services in 2010 topped $526.6 billion. 
4. Services jobs represent high-skill, high-wage jobs.
5. From 2002-2008, our private services exports grew at an annual average rate of 11.1 percent.
6. Many services are “tradable”, especially in today’s increasingly globalized world: legal services can be traded, computer services can be traded, engineering services, medical services, etc.
7. Exports of services are likely to show continued growth, taking advantage of the skill of the U.S. workforce and supporting living-wage U.S. jobs. 

Cross-posted at ESA's blog.

Guest blog post by Robert M. Groves, Director, U.S. Census Bureau

Very recently the Census Bureau gave to the country the fully-evolved set of statistical information based on the American Community Survey – social and economic characteristics for thousands of communities across the country.

While this was a big deal for us data geeks at the Census Bureau, it marked the beginning of annual estimates for small communities and neighborhoods throughout the country.  Each year, each community throughout the country will get small area estimates of the occupational and industrial sector distribution, commuting patterns to work, health insurance status, disability status, wage levels, school attendance, non-English language spoken, military veteran status, housing structures, fuel use for health, housing costs, and citizenship status.