Today, U.S. Sen. Sherrod Brown (D-OH) praised the Administration for halting a proposal that would change the Census Bureau's definition of "manufacturing." Brown wrote to then-Acting Director of the Office of Management and Budget (OMB) in July with six of his colleagues questioning why OMB would allow American companies without production in the U.S. to count statistically as domestic manufacturers. Brown also urged OMB to work with Congress on this issue before it takes actions that could potentially hurt America's economy and workers. Brown was joined on his letter by U.S. Sens. Jeff Merkley (D-OR), Ben Cardin (D-MD), Debbie Stabenow (D-MI), Chris Coons (D-DE), Tammy Baldwin (D-WI), and Jon Tester (D-MT).
"Today's announcement is a step in the right direction," Brown said. "I'm grateful the Administration will halt a proposal that would undermine our ability to evaluate manufacturing job growth and trade imbalances. I encourage OMB to continue to seek input from manufacturing leaders and trade unions to ensure that the U.S. continues to produce accurate statistics for measuring jobs in one of our nation's most important industries."
Today, OMB announced that it will delay a proposed revision to the North American Industry Classification System (NAICS) that would introduce the concept of a "factoryless goods producer." This would allow a company to count as a domestic manufacturer in the U.S. Census even if its manufacturing is conducted entirely overseas. Brown is concerned that this change will have large policy implications and could potentially encourage companies to outsource jobs overseas since they would still be categorized as domestic manufacturers. Brown is also concerned that this would adversely affect economic statistics that we rely on for accurate depictions of U.S. trade flows, trade balances, manufacturing, and employment and compensation. That is why Brown wants OMB to work with Congress and answer questions that would help them understand the agency's motives and process on this issue.
Brown continues to fight for Ohio's manufacturers. Described as "Congress' leading proponent of American Manufacturing," Brown is a member of the Senate Manufacturing Caucus, currently Vice-Chair of the Senate Auto Caucus, and was recently named incoming Chair of the Senate Steel Caucus. Last week, bipartisan manufacturing jobs legislation introduced by Brown and U.S. Sen. Roy Blunt (R-MO) moved one step closer to becoming law by passing through a House committee following its passage through a Senate committee. Brown-Blunt would establish a National Network of Manufacturing Innovation (NNMI) and create thousands of high-paying, high-tech manufacturing jobs while enhancing the United States' role as the world's leader in advanced manufacturing.