Commerce Secretary Locke shone a welcome spotlight on an Indiana-based business with a global reach when he visited a Cummins operation in São Paulo over the weekend. From the Commerce blog, “Commerce Secretary Locke Delivers Keynote Address on U.S.-Brazil Relations at the American Chamber of Commerce in Brazil and Visits Cummins Production Facility“:

Commerce Secretary Locke examines Cummins engine

Locke toured the Brazilian production and research facilities of Cummins Inc., which produces engines and related components, and emissions solutions technology. Locke was joined by Tim Solso, Chairman and CEO.

Cummins, Inc., headquartered in Columbus, Ind., has invested in the local São Paulo community in which they built their facility.  They created a day care center, built a school and a health clinic, as well created a job training program that teaches unemployed women how to sew.

Also, photos here and here.

U.S. companies are better able to serve regional and national markets through operations overseas, and Locke has highlighted Cummins as  an example last year at a U.S.-Russian Business Summit.

Several U.S. and Russian companies and institutions signed business deals and announced new cooperation surrounding today’s summit, including a commitment by Russian State Corporation Rostechnologii to purchase 50 Boeing Co. 737 aircraft, and an expansion of a joint venture between U.S. engine manufacturer Cummins and Russian truck builder Kamaz to allow production of a new, low-emissions diesel engine in Russia.

Many things worth noting at the Department of Commerce last week, including Secretary Gary Locke’s travels to Brazil with President Obama:

Commerce.gov, March 20, news release, “Secretary Locke Tours Embrear, Encourages Increasing the Commercial Relationship Between U.S and Brazil”:

U.S. Commerce Secretary Gary Locke today encouraged stronger U.S.-Brazil commercial relations during a visit to Embraer manufacturing facility outside Sao Paulo. Embraer is a Brazilian manufacturer of commercial, general aviation, and defense aircraft. Locke toured the facility and saw firsthand how the company incorporates significant U.S. aviation content into its supply chain. He also applauded the company for it integrated supply chain and encouraged further integration with American small-medium-sized enterprises.

“Embreaer is a shining example of partnership between U.S. and Brazilian manufacturing that is a “win-win” and creates jobs in both countries,” Locke said.

According to Embraer, the company has imported over $6 billion in goods from U.S. companies over the last five years. Embraer recently opened an assembly facility in Melbourne, Fla. and currently employs 660 people in the United States at 5 facilities.

Commerce.gov, March 18, news release, “Secretary Locke Advances U.S.-Brazil Trade Relationship During Presidential Trip“:

Locke met with Fernando Pimentel, the Brazilian Minister of Development Industry and Foreign Trade to discuss ongoing cooperation on key commercial relationship issues and the short- and long-term priorities of the U.S.-Brazil CEO Forum.

Earlier in the day, Locke met with Antonio Palocci, President Dilma Rousseff’s Chief of Staff and co-chair of the U.S.-Brazil CEO forum, to discuss increased commercial engagement between the two countries. He discussed improving cooperation on Intellectual Property Rights issues with Brazilian Minister of Culture Ana de Hollanda.

Commerce.gov, March 17, “U.S. Commerce Department Taps Chicago Business Leader to be its Liaison to the Private Sector“:

The U.S. Commerce Department today announced that Matthew T. McGuire will be joining the agency as Assistant to the Secretary and Director of the Office of Business Liaison. In this position, he will be leading the Department’s efforts to engage the business community on some of the Obama Administration’s top policy priorities, while continuing to strengthen partnerships between the public and private sectors.
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Gov. Mitch Daniels of Indiana announced this week that he will lead another Hoosier trade mission to China and Japan beginning in November. About 40 members will join the delegation, which will travel to Shanghai and Zhejiang, Indiana’s Chinese sister-state, then on to Nagoya and Tokyo in Japan.

From the news release, “Governor to travel to China and Japan“:

“Following our first trip to China last year, we’ve had several successes. The potential for more jobs from China is growing, and we’ll spend additional time there this year,” said the governor. “Of course, our trips are always built around visiting our customers in Japan, and we’ll do the same again this year.”

More than 42,000 Hoosiers are employed by more than 200 Japanese companies in the state. Those companies have investments here of more than $9.8 billion. Since last year’s trip, China-based Y.K. Furniture announced plans to establish a $24 million U.S. headquarters in Marion and lithium-ion battery maker EnerDel announced an agreement with Wanxiang, the largest auto parts producer in China, which EnerDel says will rapidly accelerate its business plan. The governor met with officials from Y.K. Furniture and Wanxiang during his 2009 trip to China. (continue reading…)

Cummins hosted Secretary of Energy Steven Chu in Colombus, Ind., Monday as the Obama Administration announced nine project awards totaling more than $187 million to improve fuel efficiency for heavy-duty trucks and passenger vehicles.

As the company’s news release explains, Cummins will receive nearly $39 million to support systems level technology development, integration, and demonstration for highly efficient Class 8 trucks (SuperTruck). Another $15 million will support advanced technology powertrains for light-duty vehicles (ATP-LD).

Cummins will partner with Peterbilt Motors Company, a division of PACCAR, for its SuperTruck project. The Cummins project will develop and demonstrate a highly efficient and clean diesel engine, an advanced waste heat recovery system, an aerodynamic Peterbilt tractor and trailer combination, and a fuel cell auxiliary power unit to reduce engine idling.

“Cummins has long enjoyed a collaborative partnership with the DOE. These R&D programs have helped us develop the best products for our customers and the environment,” said Cummins President and Chief Operating Officer Tom Linebarger. “We appreciate the funding provided by the DOE for the Cummins SuperTruck and Light-Duty programs, which will create jobs, help address climate change and reduce oil consumption. This public-private partnership is a win for our economy, a win for the environment and a win for energy challenges. We are looking forward to working closely with Peterbilt on this important technology project.”

Emphasize that partnership angle. The Department of Energy notes that with a private cost share of 50 percent, the awards will support nearly $375 million in total research, development and demonstration projects nationally. Secretary Chu said:

Improving the efficiency of our vehicles is critical to reducing America’s dependence on foreign oil and addressing climate change. Today’s awards will help demonstrate the potential benefits for long-haul trucks and passenger vehicles and will play an important role in building a more sustainable transportation system for the country.

Other funding recipients announced Monday were Daimler Trucks North America, Navistar Inc., Chrysler Group, Delphi Automotive Systems, Ford Motor Company, General Motors. So you can see why it was big news at the Detroit Auto Show, too. See Detroit News, “US grants Detroit 3, suppliers millions for fuel savings, jobs”

More…

• TruckTrend Magazine, “Department of Energy Allocates $187 Million for Nine Vehicle Efficiency…”
• WISH TV video, “Video: Cummins gets $54M to develop fuel efficient vehicles“
• New York Times (blog), “Energy Department Awards $187 Million for Development of Efficient Cars and Trucks”

(Caption: From left: Sen. Evan Bayh, Cummins Chief Technical Officer John Wall, Secretary Chu, Rep. Baron Hill. Photo courtesy Cummins.)

From today’s page one Wall Street Journal, “Exports Prop Up Local Economies“:

Much of the world may be struggling with the economic downturn, but life has been getting better in Columbus, Ind., Kingsport, Tenn., and Waterloo, Iowa.

These out-of-the-way places have become trade hot spots as U.S. exports, fueled by the dollar’s fall, continue to provide a rare spark in an otherwise gloomy economy.

While many economists expect a recent snapback in the value of the dollar and a spreading global slowdown to soften that growth, exports have become a key to greater local prosperity more than at any time in decades.

Columbus, population 40,000, is an export powerhouse thanks largely to diesel-engine maker Cummins Inc., which has added 1,000 jobs there since 2003. Kingsport, population 44,000, is home to Eastman Chemical Co., which is spending $1.3 billion to upgrade its sprawling chemical plant there on the strength of its global sales of plastics and fibers. And Waterloo, population 68,000, owes its healthy export economy to Deere & Co., which has announced its second major investment this year of its tractor plant there.

The stories reaffirms with numerous examples from U.S. manufacturers — and NAM member companies — the themes we emphasize here at the National Association of Manufacturers: U.S. exports are a bright spot in the economy offsetting slowdowns in other sectors, and given their importance it is critically important that Congress enact the three pending Free Trade Agreements with Colombia, Peru and South Korea. See our recent Labor Day report for more.

The article by the Journal’s manufacturing reporter, Timothy Aeppel (who consistently writes accurate, interesting stories), concludes with some observations from Drew Greenblatt, owner of Marlin Steel Wire Product in Baltimore, NAM board member, and tireless testifier to the ability of U.S. manufacturing to compete globally:

Marlin has sold baskets in Mexico and Canada for several years and more recently has found customers far beyond, in places like Denmark, Japan, Israel and New Zealand. “But my all-time favorite is Taiwan,” says Mr. Greenblatt. “Think about the concept: There’s a Chinese shipping clerk over there that opened a box and pulled out wire baskets that say ‘Made in U.S.A.’”