Manufacturing has long been a cornerstone of the American economy, and a key provider of good jobs for America’s working families. On average, manufacturing jobs pay higher wages and provide more benefits than non-manufacturing private sector jobs. And each manufacturing job employs up to four people in related industries that depend on manufacturing – from mining the raw materials to transporting the goods to selling the finished product.

But in the last five years, 2.9 million manufacturing jobs have been lost in the United States. Companies are leaving workers and their families behind, as they move their factories and plants out of the U.S. so they can hire foreign workers overseas at cheaper prices.

Currently, companies that ship jobs and production centers to other countries receive federal tax breaks that give them an edge against foreign competition. This means that the current tax code encourages companies to move their production centers out of the U.S. to save money.

While the Administration supports this strategy, Democrats want to end tax breaks for companies that send jobs overseas and instead cut taxes for manufacturers that keep American jobs at home. These cuts will encourage companies to keep factories and jobs here, and give them the capital they need to grow and fuel our economy. We also want an in-depth study of manufacturing jobs moving offshore so we can know how to stop it.

American manufacturing workers and their families are also being hit hard by foreign imports from countries like China and Vietnam. Imports from these countries have a 40 percent price advantage because their governments cut costs by ignoring workers’ rights and basic health and safety standards. They hoard U.S. dollars in their banks to lower the value of their own currency, which lowers the prices of their goods even more. This practice undercuts American products and puts American companies at a disadvantage in the marketplace. With these less expensive imports on the shelves, sales for American-made goods will drop.

Democrats will pressure countries to stop holding U.S. dollars to lower their prices. We will protect workers’ rights — not only because it is unfair to cut costs by ignoring health and safety standards — but because it also hurts living standards. We will work to find trade laws that make sense for American workers and end unfair practices by foreign manufacturers.

To compete in this global economy, manufacturers will need up-to-date ability and knowledge. That’s why Democrats are fighting for the Manufacturing Extension Partnership (MEP), a federal/state/private-sector partnership program that provides aid and advice in areas from process improvements and worker training to business practices and information technology. And because the MEP is a three-way partnership between the federal government, states and the private sector, every federal dollar in the program brings two dollars in state and private-sector funding. So a small federal investment brings in huge returns. In 2003, this program served more than 18,000 small manufacturers across the country and resulted in $4.12 billion in new and retained sales, $686 million in cost savings, $912 million in modernization investments and over 50,000 jobs created or retained.

Yet the Administrations wants to cut MEP funding by $60.7 million for 2006 –56% from the current level. We oppose any cuts in the MEP, and want to double funding for the program over the next seven years. The federal government should help those manufacturing states that have been hit most hard economically afford MEP centers, instead of threatening them with cuts and abandonment.

Manufacturing plays a crucial role in the growth and health of the U.S. economy. It is an industry that helped build the great country we have today. We owe our manufacturers the tax breaks, trade policies, and program support they need to make America succeed.