Trade Adjustment Assistance for Firms Program Fiscal Year 2010 Annual Report

DEPARTMENT OF COMMERCE

Economic Development Administration

Trade Adjustment Assistance for Firms Program Fiscal Year 2010 Annual Report

AGENCY:

Economic Development Administration, Commerce.

ACTION:

Notice.

SUMMARY:

This annual report is submitted in accordance with Section 1866 of the Trade and Globalization Adjustment Assistance Act (TGAAA) of 2009, which was included as subtitle I (letter “I”) of title I of Division B of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5, 123 Stat. 115, at 367). Section 1866 of the TGAAA directs the Secretary of Commerce to submit to Congress an annual report on the Trade Adjustment Assistance for Firms (TAAF) Program by the 15th of December each year. The TAAF Program is one of four Trade Adjustment Assistance (TAA) Programs authorized by the Trade Act of 1974 (19 U.S.C. 2341

et seq.

) (Trade Act).

Administered by the Department of Commerce's Economic Development Administration (EDA), the goal of the TAAF Program is to help economically distressed U.S. businesses develop strategies to compete in the global economy. In general, the program provides cost-sharing technical assistance to eligible businesses to create and implement targeted business recovery plans, called Adjustment Proposals under the program. Firms contribute a matching share to create and implement their plan.

Technical assistance is provided through a nationwide network of eleven EDA-funded Trade Adjustment Assistance Centers (TAACs), which are either non-profits or university-affiliated. The TAACs provide assistance to firms petitioning EDA for certification of eligibility under the program and in the development and implementation of business recovery plans.

Firms that completed the TAAF Program in FY 2008 report that at completion, average sales were $10.3 million, average employment was 73, and average productivity was $140,977 (sales per employee). One year after completing the program (FY 2009), firms report that average sales increased by one percent, average employment decreased by 10 percent, and average productivity increased by 11 percent. The Bureau of Labor Statistics (BLS) reported that nationwide for the manufacturing industry in FY 2009, average employment decreased 12 percent and average productivity increased by 4 percent. Two years after completing the program (FY 2010), firms report that average sales decreased by 14 percent, average employment decreased by 16 percent, and average productivity increased by 3 percent. BLS reported that nationwide for the manufacturing industry in FY 2010, average employment decreased 12 percent and average productivity increased by 9 percent.

Overall, there has been an increase in the demand for the TAAF Program in FY 2010, as demonstrated by the increase in the number of petitions for certification and Adjustment Proposals submitted to EDA for approval. In FY 2010, EDA approved an additional 114 petitions, a 53 percent increase as compared to FY 2009; and approved an additional 93 Adjustment Proposals, a 54 percent increase as compared to FY 2009.

The addition of TAAF staff resources facilitated EDA's ability to improve processing time for petitions and Adjustment Proposals in FY 2010. Although there was a spike in petitions and Adjustment Proposals, EDA successfully met the 40-day processing deadline to make a final determination for petitions accepted for filing; and the 60-day processing deadline for approval of Adjustment Proposals as required in the TGAAA. In fact, the average processing time for petitions has started to decline below the 40-day requirement and the average processing time for Adjustment Proposals is below 30 days.

ADDRESSES:

Trade Adjustment Assistance for Firms Division, Room D100, Economic Development

Administration, U.S. Department of Commerce, Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT:

Bryan Borlik, Director of the TAAF Program, 202-482-3901.

SUPPLEMENTARY INFORMATION:

Table of Contents

Introduction

Program Description

Program Initiative

Results/Findings

Data for This Report

(1) The Number of Firms That Inquired About the Program

(2) The Number of Petitions Filed Under Section 251

(3) The Number of Petitions Certified and Denied

(4) The Average Time for Processing Petitions

(5) The Number of Petitions Filed and Firms Certified for Each Congressional District of the United States

(6) The Number of Firms That Received Assistance in Preparing Their Petitions

(7) The Number of Firms That Received Assistance Developing Business Recovery Plans (Adjustment Proposals)

(8) The Number of Adjustment Proposals Approved and Denied by the Secretary of Commerce

(9) Sales, Employment, and Productivity at Each Firm Participating in the Program at the Time of Certification

(10) Sales, Employment, and Productivity at Each Firm Upon Completion of the Program and Each Year for the Two-Year Period Following Completion

(11) The Financial Assistance Received by Each Firm Participating in the Program

(12) The Financial Contribution Made by Each Firm Participating in the Program

(13) The Types of Technical Assistance Included in the Adjustment Proposals of Firms Participating in the Program

(14) The Number of Firms Leaving the Program Before Completing the Project or Projects in Their Adjustment Proposals and the Reason the Project Was Not Completed

Conclusion

Introduction

This report is provided in compliance with Section 1866 of the Trade and Globalization Adjustment Assistance Act (TGAAA) of 2009, which was included as subtitle I (letter “I”) of title I of Division B of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5, 123 Stat. 115, at 367). Section 1866 of the TGAAA directs the Secretary of Commerce to provide an annual report on the Trade Adjustment Assistance for Firms (TAAF) program by the 15th of December each year. Section 1866 of the TGAAA states:

IN GENERAL.—Not later than December 15, 2009, and each year thereafter, the Secretary of Commerce shall prepare a report containing data regarding the trade adjustment assistance for firms program provided for in chapter 3 of title II of the Trade Act of 1974 (19 U.S.C. 2341

et seq.

) for the preceding fiscal year.

This report will provide findings and results to the extent that the data is available on the following 14 measures:

1. The number of firms that inquired about the program.

2. The number of petitions filed under section 251.

3. The number of petitions certified and denied.

4. The average time for processing petitions.

5. The number of petitions filed and firms certified for each congressional district of the United States.

6. The number of firms that received assistance in preparing their petitions.

7. The number of firms that received assistance developing business recovery plans (Adjustment Proposals).

8. The number of Adjustment Proposals approved and denied by the Secretary of Commerce.

9. Sales, employment, and productivity at each firm participating in the program at the time of certification.

10. Sales, employment, and productivity at each firm upon completion of the program and each year for the two-year period following completion.

11. The financial assistance received by each firm participating in the program.

12. The financial contribution made by each firm participating in the program.

13. The types of technical assistance included in the Adjustment Proposals of firms participating in the program.

14. The number of firms leaving the program before completing the project or projects in their Adjustment Proposals and the reason the project was not completed.

Program Description

The TAAF program is one of four Trade Adjustment Assistance (TAA) programs authorized under the Trade Act of 1974 (19 U.S.C. 2341

et seq.

) (Trade Act). The responsibility for administering the TAAF program is delegated by the Secretary of Commerce to the Economic Development Administration (EDA). TAAF program provides technical assistance to manufacturers and service firms affected by import competition to help the firms develop and implement projects to regain global competitiveness.

The mission of the TAAF Program is to help U.S. firms regain competitiveness in the global economy. Import-impacted U.S. manufacturing, production, and service firms can receive matching funds for projects that expand markets, strengthen operations, and sharpen competitiveness through TAAF. The program provides assistance in the development of business recovery plans, which are known as Adjustment Proposals under Section 252 of the Trade Act, and matching funds to implement projects outlined in the Adjustment Proposals.

The TAAF Program supports a national network of 11 non-profit or university-affiliated Trade Adjustment Assistance Centers (TAACs) to help U.S. manufacturing, production, and service firms in all fifty states, the District of Columbia, and the Commonwealth of Puerto Rico. Firms work with the TAACs to apply for certification for TAAF assistance, and prepare and implement strategies to guide their economic recovery.

The other TAA programs are TAA for Workers, Farmers, and Communities, which are administered by the Departments of Labor, Agriculture, and Commerce through EDA, respectively.

Exhibit 1: TAA Programs

EN26JA11.011

Program Initiative

As noted above, the TAAF Program provides technical assistance in the development and implementation of Adjustment Proposals. Projects are aimed at improving a firm's competitive position. Specifically, funds are applied toward the cost of consultants, engineers, designers, or industry experts for improvement projects in targeted areas that can better a firm's position, such as engineering, information technology, management, market development, marketing, new product development, quality improvement, and sales. Funds are not provided directly to firms; instead EDA funds TAACs and TAACs pay a cost-shared proportion of the cost to secure specialized business consultants.

To certify a firm as eligible to apply for adjustment assistance, the Secretary must determine that three conditions are met:

1. A significant number or proportion of the workers in the firm have been or are threatened to be totally or partially separated;

2. Sales and/or production of the firm have decreased absolutely, or sales and/or production of an article or service that accounted for at least 25 percent of total production or sales of the firm during the 12, 24, or 36 months preceding the most recent 12, 24, or 36-month period for which data are available have decreased absolutely; and

3. Increased imports of articles like or directly competitive with articles produced or services provided by the firm have “contributed importantly” to both the layoffs and the decline in sales and/or production.

BILLING CODE 3510-24-P

Exhibit 2: TAACs and Their Respective Service Areas

EN26JA11.012

The main responsibilities of the TAACS include:

• Assisting firms in preparing their petitions for TAAF. Firms are not charged for any assistance related to preparing a petition.

• Once a petition has been approved, TAACs work closely with firm management to identify the firm's strengths and weaknesses and develop a customized Adjustment Proposal designed to stimulate recovery and growth. The program pays up to 75% of the cost of developing an Adjustment Proposal and the firm must pay the rest. EDA must approve all Adjustment Proposals to ensure they conform to statutory and regulatory requirements.

• After an Adjustment Proposal has been approved, company management and TAAC staff jointly identify consultants with the specific expertise required to assist the firm.

• Under the TAAF Program, EDA shares the cost of Adjustment Proposal task implementation. For an Adjustment Proposal in which proposed tasks total $30,000 or less, EDA will provide 75 percent of the cost and the firm is responsible for the balance. For an Adjustment Proposal in which proposed tasks total over $30,000, EDA and the firm share the implementation costs evenly; EDA pays 50 percent of the total cost and the firm pays 50 percent. Due to limited program funding, EDA limits its share of technical assistance to a certified firm to $75,000. After a competitive procurement process, the TAAC and the firm generally contract with private consultants to implement the Adjustment Proposal.

There are three main phases to receiving technical assistance under the program. The phases are (1) petitioning for certification, (2) recovery planning, and (3) project implementation.

Exhibit 3: Program Phases

EN26JA11.013

Phase I—Petitioning for Certification

The first step to receiving assistance is the submission of a petition to EDA to be certified as a trade impacted firm. This petition is Form ED-840P “Petition by a Firm for Certification of Eligibility to Apply for Trade Adjustment Assistance” and any supporting documentation. Certification specialists within the TAACs generally work with the firm at no cost to complete and submit a petition to EDA.

Upon receipt of the petition, EDA performs a thorough analysis of the petition and supporting documents to determine if the petition is complete and may be accepted. EDA is required to make a final determination on the petition within 40 days of accepting a petition.

1

1

As of May 17, 2009, the deadline for making a final determination is 40 days. Before May 17, 2009, EDA had 60 days to make a determination.

Phase II—Recovery Planning

Certified firms then work with TAAC staff to develop a customized Adjustment Proposal and submit to EDA for approval. Once an Adjustment Proposal has been submitted, EDA is required to make a final determination within 60 days.

Phase III—Adjustment Proposal Implementation

The firm works with consultants to implement projects in an approved Adjustment Proposal. As projects are implemented and if the firm is satisfied with the work, the firm will first pay their match to the consultant, and then send a notice to the TAAC stating that they are satisfied with the work and that they have paid their matching share. The TAAC will then pay the Federal matching share. Firms have up to five years from the date of an Adjustment Proposal's approval to implement it, unless they receive approval for an extension. Generally, firms complete the implementation of their Adjustment Proposals over a two-year period.

Results/Findings

Data for This Report

The data used in this report was collected from the TAACs as part of their reporting requirements, petitions for certification, and the Adjustment Proposals submitted by the TAACs on behalf of firms. Data from these sources were recorded into a central database by Eligibility Reviewers at EDA. Results for average processing times and the number of approved and denied petitions and Adjustment Proposal were derived by EDA.

(1) The Number of Firms That Inquired About the Program

In FY 2010, TAACs received 3,446 inquiries about the TAAF Program.

Exhibit 4: Inquiries about the TAAF Program by TAAC

TAAC

Number of firms that inquired about the TAAF

Program

Great Lakes

106

Mid-America

137

MidAtlantic

376

Midwest

82

New England

163

New York State

134

Northwest

806

Rocky Mountain

351

Southeastern

42

Southwest

280

Western

969

Total

3,446

(2) The Number of Petitions Filed Under Section 251

(3) The Number of Petitions Certified and Denied

(4) The Average Time for Processing Petitions

In FY 2010, 305 petitions were filed under Section 251 of the Trade Act, up an additional 27 petitions, a 10 percent increase compared to the number of petitions filed in FY 2009. EDA certified 330 petitions, up an additional 114 petitions, a 53 percent increase compared to the number of certifications in FY 2009. Petitions are certified on a rolling basis throughout the year. Petitions certified in FY 2010 may be the result of those filed or accepted in FY 2009; and petitions filed or accepted in FY 2010 may not result in certification in FY 2010.

The addition of TAAF staff resources facilitated EDA's ability to improve processing time for petitions in FY 2010. Although there was a spike in petitions, EDA successfully met the 40-day processing deadline to make a final determination for petitions accepted for

filing as required in the TGAAA. In fact, the average processing time for petitions has started to decline below the 40-day requirement.

Exhibit 5: Petition Activity: FY 2008-FY 2010

FY

Number of

petitions filed

Number of

petitions

accepted for

filing

Number of

petitions

certified

Number of

petitions

denied

Average days between

acceptance and certification

Average days between filing and

certification

2008

189

190

188

0

45

N/A

2009

278

244

216

1

44

89

2010

305

325

330

0

40

74

% Change (2009 to 2010)

10%

33%

53%

N/A

(9)%

(17)%

Exhibit 6: Petitions Filed by TAAC: FY 2008-FY 2010

EN26JA11.014

Exhibit 7: Petitions Accepted by TAAC: FY 2008-FY 2010

EN26JA11.015

Exhibit 8: Petitions Certified by TAAC: FY 2008-FY 2010

EN26JA11.016

Exhibit 9: Petitions Filed, Accepted and Certified by TAAC: FY 2010

2

2

Petitions are certified on a rolling basis throughout the year, therefore activity in these categories may not result in certification within the same FY. These totals represent the activity under each category within FY 2010.

TAAC

Number of

petitions filed

2

Number of

petitions

accepted for

filing

2

Number of

petitions

certified

Great Lakes

14

16

19

Mid-America

26

30

28

MidAtlantic

57

59

58

Midwest

33

36

40

New England

53

56

56

New York State

22

26

25

Northwest

19

22

21

Rocky Mountain

17

16

18

Southeastern

33

30

30

Southwest

23

25

23

Western

8

12

12

Total

305

328

330

Exhibit 10: Petitions Filed, Accepted, and Certified by TAAC: FY 2010

EN26JA11.017

Exhibit 11: Firms Certified for TAAF by Industry: FY 2010

The majority of petitions certified for TAAF were submitted by firms in the manufacturing industry. Firms in wholesale trade and technical services rounded out the top three industries. Approximately 7 percent of firms certified in FY 2010 were service sector firms. Demand from service firms in FY 2011 is likely to increase at the same rate as FY 2010.

EN26JA11.018

(5) The Number of Petitions Filed and Firms Certified for Each Congressional District of the United States

Exhibit 12: Petitions Filed by Congressional District: FY 2010

Congressional district(s)

No. of petitions filed

AK

At Large

1

AL

4

1

AR

1

1

2

4

3

2

AZ

5

1

6

1

CA

13

1

30

1

32

1

34

1

43

1

CO

1

2

2

2

3

3

4

1

5

1

CT

1

2

2

2

5

1

6

1

FL

10

1

21

1

22

1

24

1

GA

2

2

5

1

6

1

7

1

9

1

HI

1

1

ID

1

3

IL

3

2

4

1

5

3

6

3

8

1

10

1

13

1

14

4

16

1

17

1

IN

2

1

7

1

8

1

13

1

KS

1

2

2

2

3

1

4

2

KY

1

1

2

2

3

1

LA

2

2

3

3

6

1

7

1

MA

1

4

3

3

4

3

5

3

6

3

7

3

9

4

10

2

MD

2

1

4

1

ME

1

3

2

3

MI

1

1

7

1

9

2

11

3

12

1

MN

3

2

4

1

5

1

6

1

7

1

MO

1

1

2

1

4

1

5

2

6

1

7

4

8

2

MS

1

1

MT

At Large

3

NC

7

2

8

1

9

1

10

1

11

1

12

1

ND

1

3

NH

1

4

NJ

8

1

12

1

NY

1

1

3

1

8

2

20

2

22

1

25

6

26

4

27

1

28

2

29

2

OH

4

1

14

1

16

1

OK

1

5

2

1

3

3

OR

3

1

4

2

PA

3

3

4

1

5

2

6

1

7

3

8

2

9

2

10

2

11

8

12

1

13

2

15

8

16

3

17

6

18

1

19

6

RI

1

8

2

3

SC

2

2

3

1

5

3

6

2

SD

At Large

1

TN

4

1

6

1

TX

3

1

12

4

13

1

15

1

UT

1

1

2

1

3

1

VA

4

1

6

1

VT

1

1

WA

4

1

5

2

6

2

7

2

9

2

WI

1

1

4

1

5

4

6

2

7

1

Exhibit 13: Petitions Certified by Congressional District: FY 2010

Congressional district(s)

No. of petitions certified

AK

At Large

2

AL

4

1

AR

1

1

2

4

3

2

AZ

4

1

CA

7

1

20

1

26

1

30

1

31

1

32

1

34

1

43

1

48

1

CO

1

1

2

2

3

3

4

1

5

1

6

1

CT

1

2

2

2

5

1

6

1

FL

10

1

22

1

24

1

GA

6

2

2

3

1

5

1

6

1

9

1

HI

1

2

IA

3

1

ID

1

3

IL

3

2

4

2

5

3

6

4

7

1

8

2

10

1

13

1

14

5

16

1

17

1

IN

2

1

7

1

8

1

13

1

KS

1

2

2

1

3

1

4

2

KY

1

1

3

1

LA

2

2

3

2

6

1

7

1

MA

1

4

3

4

4

3

5

3

6

3

7

3

9

5

10

2

MD

2

1

4

1

ME

1

3

2

3

MI

1

1

7

1

9

2

10

1

11

4

12

1

MN

2

2

3

1

4

1

5

1

6

1

MO

1

2

2

1

3

1

4

2

5

2

6

1

7

5

8

1

MS

1

1

MT

At Large

5

NC

1

1

5

1

7

2

9

1

10

2

11

1

12

1

ND

1

1

At Large

1

NH

1

5

2

1

NY

1

1

3

1

8

1

20

3

25

6

26

5

27

1

28

4

29

3

OH

3

1

4

1

8

1

10

1

14

1

16

1

OK

1

5

2

2

3

2

OR

3

1

4

2

PA

3

3

4

1

6

3

7

4

8

2

9

2

10

3

11

7

12

1

13

1

15

8

16

2

17

7

18

1

19

8

RI

1

8

2

3

SC

2

1

3

1

5

2

6

2

SD

At Large

1

TN

4

1

6

1

TX

3

1

12

4

15

1

16

1

21

1

UT

1

1

2

1

3

2

28

1

VA

4

1

6

2

WA

4

1

5

2

6

1

7

3

9

1

WI

3

1

4

1

5

5

6

3

(6) The Number of Firms that Received Assistance in Preparing Their Petitions

In FY 2010, on average, 232 firms received assistance in preparing petitions per quarter. The total number of firms that received technical assistance varies each quarter as assistance is provided throughout the year. A firm receiving assistance in one quarter may continue to receive assistance in the following quarter.

Exhibit 14: Petition Assistance Activity per Quarter: FY 2010

TAAC

Average No. of firms receiving assistance with preparing petitions

(per quarter)

Great Lakes

8

Mid-America

61

MidAtlantic

10

Midwest

49

New England

9

New York State

15

Northwest

15

Rocky Mountain

21

Southeastern

20

Southwest

5

Western

19

Total

232

(7) The Number of Firms That Received Assistance Developing Business Recovery Plans (Adjustment Proposals)

In FY 2010, on average, 146 firms received assistance in developing Adjustment Proposals; and 690 firms received assistance in the implementation of Adjustment Proposal plans per quarter. The total number of firms that received technical assistance varies each quarter as assistance is provided throughout the year. A firm receiving assistance in one quarter may continue to receive assistance in the following quarter.

Exhibit 15: Adjustment Proposal Development Activity per Quarter: FY 2010

TAAC

Average No. of firms receiving assistance with adjustment proposal development

(per quarter)

Average No. of firms receiving assistance with adjustment proposal implementation

(per quarter)

Great Lakes

4

58

Mid-America

14

63

MidAtlantic

13

85

Midwest

13

64

New England

16

103

New York State

13

30

Northwest

5

61

Rocky Mountain

18

79

Southeastern

21

54

Southwest

16

54

Western

13

39

Total

146

690

(8) The Number of Adjustment Proposals Approved and Denied by the Secretary of Commerce

In FY 2010, EDA approved all 265 Adjustment Proposals that were submitted; an additional 93 business

recovery plans, a 54 percent increase as compared to FY 2009.

Exhibit 16: Summary of Adjustment Proposals Approved: FY 2008-FY 2010

FY

Number of adjustment proposals approved

Total

government share

(millions)

Total firm share

(millions)

Total projected adjustment proposal costs

(millions)

Average government assistance per firm

2008

139

$7.9

$7.5

$15.4

$56,835

2009

172

$10.3

$9.8

$20.2

$59,884

2010

265

$16.4

$15.6

$32.1

$61,958

% Change (2009 to 2010)

54%

59%

59%

59%

3%

Exhibit 17: Adjustment Proposals Approved by TAAC: FY 2008-FY 2010

EN26JA11.019

Exhibit 18: Adjustment Proposals Approved by TAAC: FY 2010

TAAC

Number of

adjustment proposals approved

Great Lakes

24

Mid-America

25

MidAtlantic

29

Midwest

40

New England

48

New York State

14

Northwest

20

Rocky Mountain

17

Southeastern

23

Southwest

16

Western

9

Total

265

(9) Sales, Employment, and Productivity at Each Firm Participating in the Program at the Time of Certification

The average sales, employment and productivity of firms certified into the program in FY 2010 was higher than that of firms certified in FY 2009. For the purposes of this report, productivity is defined as net sales per employee. Since the certified firms are in various industries, which have a variety of ways to measure productivity, sales per employee was chosen as the productivity measure. This measure is used because it can be generally applied to all certified firms.

Exhibit 19: Comparison of Average Sales, Employment, and Productivity at Firms at the Time of Certification: FY 2008-FY 2010

FY

Average sales

Average

employment

Average

productivity

2008

$13,081,993

82

$159,537

2009

$10,338,422

79

$130,866

2010

$19,137,139

138

$138,675

% Change (2009 to 2010)

85%

74%

15%

Exhibit 20: Summary Comparison of Average Sales, Employment, and Productivity for Firms at the Time of Certification by TAAC: FY 2010

TAAC

Average sales

Average

employment

Average

productivity

Great Lakes

$35,127,822

177

$198,462

Mid-America

10,265,214

88

116,650

MidAtlantic

15,122,655

89

169,917

Midwest

22,062,757

114

193,533

New England

7,632,080

51

148,649

New York State

14,585,421

91

160,279

Northwest

8,720,395

72

121,117

Rocky Mountain

43,725,204

203

215,395

Southeastern

11,052,021

68

162,530

Southwest

7,529,645

366

20,573

Western

34,685,316

196

176,966

Total

19,137,139

138

138,675

Exhibit 21: Summary of Sales, Employment, and Productivity at Each Firm Participating in the Program at the Time of Certification: FY 2010

Firm No.

Sales ($)

Employment

Productivity ($)

—2118051509

$5,333,040

23

$231,871

—2111249509

1,208,258

7

172,608

—2104802926

2,455,461

39

62,961

—2103906847

1,328,000

10

132,800

—2083450313

42,874,044

185

231,752

—2073175636

16,101,898

137

117,532

—2068287522

11,938,999

31

385,129

—2059136725

60,764,758

181

335,717

—2023874564

2,518,000

21

119,905

—2010236141

3,019,178

25

120,767

—2007895508

613,906

6

102,318

—1997824464

4,171,401

41

102,795

—1990457870

7,559,350

98

77,136

—1973580510

45,487,139

457

99,534

—1958214488

7,467,369

49

153,429

—1956376675

1,780,606

24

74,973

—1941157067

612,124

5

122,425

—1899532397

2,037,257

4

479,355

—1898904502

315,272

5

63,054

—1884551502

9,040,000

58

155,862

—1880843073

5,265,708

41

128,432

—1838877792

3,483,609

31

112,374

—1828369285

17,140,309

162

105,804

—1759758341

6,010,971

50

120,219

—1742177269

9,976,653

62

160,914

—1740960093

13,154,390

45

292,320

—1740086291

26,940,727

147

183,270

—1739842518

2,310,068

27

85,558

—1704715418

12,875,152

171

75,293

—1661485163

3,393,780

31

109,477

—1635069591

7,537,000

51

147,784

—1542448328

9,922,578

120

82,688

—1520701304

4,697,310

77

61,004

—1484222959

1,444,014

11

131,274

—1471661205

6,322,000

40

158,050

—1461073515

92,484,000

302

306,238

—1454186553

282,778

4

70,695

—1432738384

3,528,890

33

106,936

—1427334167

37,484,000

359

104,412

—1417226723

983,006

11

89,364

—1281724603

4,028,000

38

106,000

—1243439974

22,596,956

99

228,252

—1241427110

10,487,391

104

100,840

—1187326382

707,341

4

176,835

—1169045359

5,046,000

43

117,349

—1129223838

10,578,429

104

101,716

—1128703111

1,354,620

14

96,759

—1126326868

2,212,064

19

116,424

—1116912576

5,470,620

25

218,825

—1097459358

92,988,380

461

201,601

—1086130450

26,260,884

105

250,509

—1038621441

14,126,803

103

137,153

—1004329971

17,601,176

165

106,674

—1000240433

15,690,666

102

153,830

—999105849

2,547,000

21

121,286

—995226650

4,930,000

24

205,417

—947962116

4,549,568

34

133,811

—934975561

4,495,541

39

115,270

—885365563

3,121,641

34

91,813

—857031178

11,353,000

99

114,677

—852461053

932,387

143

6,520

—843055880

1,606,394

36

44,622

—840166025

10,585,957

109

97,119

—806944983

9,609,077

85

113,048

—794575305

1,406,804

3

468,935

—788484912

15,056,348

108

139,411

—779297214

108,005,394

736

146,746

—759779489

43,715,000

160

273,219

—726121634

1,660,145

14

118,582

—702330654

12,073,751

125

96,590

—692565138

6,173,766

23

268,425

—681139744

13,963,911

85

164,281

—674357347

5,304,000

52

102,000

—672809309

10,311,629

28

368,272

—654901806

10,811,000

53

203,981

—622207779

3,122,027

41

76,147

—591889087

2,346,285

237

9,900

—585725005

16,463,961

85

193,694

—560318612

4,131,687

22

190,664

—554924474

171,103

3

57,034

—550588573

943,348

10

97,554

—543809333

9,295,728

25

371,829

—504989951

25,003,966

78

320,235

—436909589

11,245,912

337

33,371

—429565845

194,828

8

24,354

—426260672

677,432

12

56,453

—413262258

16,722,097

104

160,789

—370373838

2,195,090

14

156,792

—356857349

8,882,300

105

84,593

—347882712

10,155,480

508

19,991

—334795766

2,737,505

31

88,307

—334691552

2,927,563

25

117,103

—325246775

16,232,121

108

150,297

—322389137

3,344,284

32

104,509

—311586268

939,857

5

187,971

—297716183

34,926,049

192

181,509

—263774128

4,637,869

42

110,425

—229337262

1,529,815

18

84,990

—222714747

10,140,682

157

64,590

—172876934

3,873,669

41

94,480

—167523770

1,377,000

15

91,800

—138492743

10,056,766

35

287,336

—126595790

5,781,000

116

49,836

—111557939

14,913,000

108

138,083

—106605238

94,110,272

316

297,817

—80321537

2,496,868

28

88,135

—75360888

3,998,950

21

190,426

—72799676

14,999,842

67

223,878

—52573030

3,731,345

38

99,503

—41850669

20,268,686

98

206,823

—2420921

1,191,242

13

91,634

—438018

32,608,321

116

281,106

16573262

2,803,311

21

133,491

22130970

8,378,094

55

152,329

48907681

1,447,117

11

136,779

83564872

1,099,835

13

84,603

85474563

3,475,788

50

69,516

92019186

4,882,733

27

180,842

98077462

6,103,725

66

92,481

132107069

4,875,150

55

88,639

215326868

8,232,877

105

78,408

235292569

201,980,000

934

216,253

278618212

313,150

5

62,630

294844867

613,236

10

61,324

299352457

1,090,852

14

77,918

300171006

2,425,844

22

112,830

370006245

45,317,479

260

174,634

375977128

3,275,986

30

109,200

416345364

6,160,767

431

14,294

431287226

6,578,244

344

19,123

434352811

853,056

19

43,972

447765204

4,050,320

32

126,573

456495450

22,274,281

77

289,276

457871548

166,600,000

660

252,424

460220479

5,323,864

37

143,888

461983321

9,815,491

70

140,221

488397464

3,814,820

2122

1,798

507638153

1,168,480

14

83,463

605479507

3,393,771

35

96,965

695555564

3,774,516

18

209,695

709865456

2,505,135

34

73,680

725507790

134,197,000

914

146,824

737303963

7,042,585

40

176,065

742517299

3,196,691

52

61,475

765990946

11,298,809

110

102,716

769259150

7,770,655

16

485,666

774637751

14,856,715

62

239,624

807998327

19,015,349

846

22,477

816528506

9,998,096

41

242,085

821736854

4,502,400

57

78,989

831153636

884,344

130

6,803

870096733

10,389,478

82

126,701

916493089

5,939,422

57

104,200

920775500

13,044,545

691

18,878

921991757

23,726,780

113

209,972

923653641

2,722,000

18

151,222

931084257

19,809,756

57

347,540

931353658

13,942,054

69

202,059

936755382

1,990,490

24

82,937

938704928

9,793,612

126

77,727

952223001

3,371,521

31

108,759

974323566

7,510,846

78

96,293

998418962

4,612,000

35

131,771

1008993417

1,065,256

21

50,726

1036673242

86,665,926

458

189,227

1047544912

12,706,348

167

76,086

1079241463

639,588

4

159,897

1080100154

13,493,317

86

156,899

1157306813

23,214,000

204

113,794

1170995123

1,954,476

13

150,344

1176704596

1,551,985

23

68,369

1190314840

16,885,829

808

20,898

1190725189

6,360,142

68

93,532

1199996737

12,773,634

66

193,540

1208792226

2,043,850

21

97,326

1237998436

14,291,766

134

106,655

1246033896

15,392,000

58

265,379

1246285115

11,261,303

61

184,612

1246302114

40,310,044

3115

12,941

1246892583

5,306,225

43

123,401

1247153819

7,454,736

63

118,329

1247167949

57,390,191

259

221,584

1247662700

105,504,196

395

267,099

1247670190

112,370,000

998

112,595

1247750161

158,893

4

39,723

1247758341

5,834,248

68

85,798

1247766035

5,108,385

34

150,247

1249481184

1,492,256

12

124,355

1250022715

7,189,955

76

94,605

1250103435

28,962,384

187

154,879

1250105714

4,800,000

53

90,566

1250174776

20,457,000

124

164,976

1250186876

88,739,000

333

266,483

1250192980

433,632

4

108,408

1250257754

3,281,352

41

80,033

1251302450

4,018,650

40

100,466

1252079576

110,491,969

497

222,318

1252436282

217,035

2

108,518

1253720272

14,816,335

77

192,420

1254322240

100,962,620

320

315,508

1255105505

465,216

5

93,043

1256321189

1,731,646

20

86,582

1256768152

2,917,626

34

85,813

1256819844

52,569,607

195

269,588

1256829696

5,821,437

62

93,894

1256861475

511,901

4

127,975

1256921129

7,230,791

24

301,283

1257376509

1,926,715

25

77,378

1257516574

10,874,000

99

109,838

1258743222

8,813,262

42

209,840

1260826068

1,978,584

22

89,936

1262959682

15,889,753

86

184,765

1264723282

3,640,000

20

182,000

1266339861

6,975,566

45

155,013

1266353281

11,331,686

135

83,938

1266507166

640,737

9

71,193

1266857885

1,625,000

19

85,526

1266942829

7,291,000

118

61,788

1266943121

16,868,347

115

146,173

1266947270

1,876,145

32

58,630

1267027715

1,656,638

29

57,622

1267462374

663,920

10

66,392

1267470068

10,547,269

76

138,780

1267543458

6,961,334

90

77,348

1267648076

3,323,141

26

127,813

1267651976

10,210,351

71

143,808

1268086064

10,016,000

34

294,588

1268146310

3,392,384

45

75,386

1268157420

25,542,464

321

79,572

1268224827

1,532,111

8

191,514

1268670167

355,324,231

1143

310,870

1268744533

2,474,000

43

57,535

1268751244

1,688,308

16

105,519

1268925702

1,794,208

14

128,158

1268951389

22,679,000

152

149,204

1269004689

161,938

3

52,577

1269269057

4,748,940

20

237,447

1269271489

3,866,340

30

128,878

1269291616

2,906,220

34

85,477

1269368306

20,343,681

108

188,367

1269436574

991,000

203

4,882

1269956130

48,092,000

352

136,625

1270041484

2,214,350

21

105,045

1270057007

11,118,850

90

123,543

1270480498

6,162,659

69

89,314

1270494120

7,701,343

64

120,333

1271250626

8,126,174

98

82,920

1271253012

3,574,300

26

137,473

1271254787

2,428,448

17

142,850

1271444344

3,399,635

38

89,464

1273082444

1,757,269

19

92,488

1273151594

2,636,265

18

146,459

1273511065

3,415,979

38

89,894

1273604467

935,330

16

59,386

1273670517

1,588,074

9

176,453

1274280512

185,220

1

185,220

1274377941

59,439,842

223

266,546

1274732253

4,418,363

33

133,890

1274891083

8,212,101

89

92,271

1274904043

7,013,000

55

127,509

1274977621

10,041,631

107

93,847

1274982453

24,617,949

165

149,200

1275498608

8,194,926

82

99,938

1275501481

8,854,439

42

210,820

1275511967

8,679,385

47

186,333

1276001619

1,921,000

10

192,100

1276010273

837,229

8

104,654

1276103578

6,547,098

43

152,258

1276522602

1,096,375

14

78,313

1276536764

1,760,404

7

251,486

1276720693

23,845,594

153

155,854

1276793499

912,115

8

114,014

1276868869

90,881,308

633

143,572

1276881128

6,249,947

65

96,153

1277148172

4,047,406

51

79,361

1277321808

29,153,315

202

144,323

1277389938

1,154,435

11

104,949

1277834733

32,327,732

144

225,280

1279745224

209,812,000

990

211,931

1280248531

9,645,673

48

200,952

1280327279

5,206,736

17

306,279

1280333008

1,855,202

19

97,642

1280413966

12,554,000

181

69,359

1280432405

9,508,149

73

130,249

1280778333

15,244,156

65

234,525

1281015259

4,717,220

56

84,236

1281019133

4,188,055

23

182,089

1281025757

4,588,575

31

148,019

1281031551

844,748

6

151,389

1281037430

686,821

8

85,853

1281105917

5,609,499

23

243,891

1281107514

2,896,917

16

180,157

1282051642

10,719,785

111

96,575

1282140686

4,415,042

35

125,534

1288447499

9,275,776

68

136,408

1294227725

1,198,400

19

63,074

1295078554

69,520,128

245

283,756

1350478164

7,764,988

73

106,735

1364503640

2,604,710

13

200,362

1397900651

20,812,200

72

289,058

1438893258

709,112

9

76,661

1442035945

104,000

62

1,677

1456199116

14,937,310

71

210,385

1461210273

688,001

5

137,600

1489228822

34,534,810

222

155,562

1508209231

58,126,775

247

235,331

1528554001

34,240,000

191

179,267

1531789493

6,468,184

656

9,860

1535674410

83,743,273

391

214,177

1565479699

4,024,755

31

129,831

1569320561

2,785,528

32

87,048

1605100384

1,196,061

172

6,954

1625376772

5,722,000

63

90,825

1658462633

191,092,628

608

314,297

1739021199

7,540,427

61

123,614

1751920052

4,841,397

70

69,163

1866991437

2,250,498

36

62,514

1871304606

1,807,141

17

106,302

1874228463

10,409,004

76

136,961

1919568775

1,769,572

18

98,310

1974568513

430,401

16

27,768

1974830581

1,518,225

16

94,889

1976603120

4,028,269

37

108,872

1995751409

14,548,104

254

57,276

2012969340

24,295,000

185

131,324

2044046179

27,293,631

110

248,124

2050270334

59,757,408

192

311,237

2071124572

30,636,210

212

144,510

2086748305

37,808,432

175

216,048

2109627131

11,900,000

75

158,667

(10) Sales, Employment, and Productivity at Each Firm Upon Completion of the Program and Each Year for the Two-year Period Following Completion

Firms that completed the TAAF Program in FY 2008 report that at completion, average sales were $10.9 million, average employment was 73, and average productivity was $150,674 (sales per employee).

Between FY 2008 and FY 2009, one year after completing the program, firms report that average sales increased by one percent, average employment decreased by 10 percent, and average productivity increased by 11 percent. The Bureau of Labor Statistics (BLS) reports that nationwide for the manufacturing industry, average employment decreased 12 percent and

average productivity increased by 4 percent.

Between FY 2008 and FY 2010, two years after completing the program, firms report that average sales decreased by 14 percent, average employment decreased by 16 percent, and average productivity increased by 3 percent. BLS reports that nationwide for the manufacturing industry, average employment decreased 12 percent and average productivity increased by 9 percent.

For the purposes of this report, data was reported only for firms where all data was available. Since the certified firms are in various industries, which have a variety of ways to measure productivity, sales per employee was chosen as the productivity measure. This measure is used because it can be generally applied to all certified firms. However, BLS' productivity measures relate output to the labor hours used in the production of that output.

Exhibit 22: Summary of Average Sales, Employment, and Productivity at Firms Upon Completion of the Program and the One-Year Period Following Completion

Program completion

Average sales

Average

employment

Average

productivity

Completion (FY 2008)

$10,999,200

73

$150,674

1st Year Following Completion (FY 2009)

$11,079,460

66

$167,871

% Change 1st Year Following Completion

1%

−10%

11%

Exhibit 23: Summary of Average Sales, Employment, and Productivity at Firms Upon Completion of the Program and the Two-Year Period Following Completion

Program completion

Average sales

Average

employment

Average

productivity

Completion (FY 2008)

$10,999,200

73

$150,674

2nd Year Following Completion (FY 2010)

$9,498,479

61

$155,713

% Change 2nd Year

Following Completion

−14%

−16%

3%

Exhibit 24: Sales, Employment, and Productivity at Each Firm Upon Completion of the Program and Two-Year Period Following Completion

Firm ID

Average sales at completion (FY 2008)

Average sales 1st yr following completion (FY 2009)

Average sales 2nd yr following completion (FY 2010)

Average employment at completion (FY 2008)

Average employment 1st yr following completion (FY 2009)

Average employment 2nd yr following completion (FY 2010)

Average productivity at completion (FY 2008)

Average productivity 1st yr following completion (FY 2009)

Average productivity 2nd yr following completion (FY 2010)

FY08-01

$39,390,601

$37,698,350

$21,692,925

325

275

173

$121,202

$137,085

$125,393

FY08-05

10,630,000

10,800,000

4,800,000

64

55

38

166,094

196,364

126,316

FY08-03

28,400,000

31,500,000

25,150,000

190

180

158

149,474

175,000

159,177

FY08-04

5,130,000

5,800,000

5,325,204

33

35

31

155,455

165,714

171,781

FY08-02

16,500,000

17,800,000

17,000,000

53

55

56

311,321

323,636

303,571

FY08-23

3,000,000

2,000,000

2,000,000

25

25

23

120,000

80,000

86,957

FY08-24

7,500,000

7,000,000

7,020,687

67

65

65

111,940

107,692

108,011

FY08-20

2,000,000

1,000,000

2,400,000

21

10

22

95,238

100,000

109,091

FY08-25

4,200,000

4,000,000

4,200,000

33

31

33

127,273

129,032

127,273

FY08-26

1,700,000

1,100,000

1,200,000

9

9

9

188,889

122,222

133,333

FY08-21

6,056,458

5,500,000

3,006,918

27

31

21

224,313

177,419

143,187

FY08-28

3,070,000

3,080,000

2,300,000

19

18

15

161,579

171,111

153,333

FY08-22

10,200,000

9,000,000

10,000,000

58

55

57

175,862

163,636

175,439

FY08-27

18,750,000

17,000,000

18,500,000

86

80

85

218,023

212,500

217,647

FY08-30

275,000

248,000

229,000

6

8

7

45,833

31,000

32,714

FY08-29

313,000

416,000

533,000

22

12

12

14,227

34,667

44,417

FY08-34

3,081,000

2,220,000

1,597,000

39

25

22

79,000

88,800

72,591

FY08-31

17,500,000

14,200,000

10,900,000

195

160

120

89,744

88,750

90,833

FY08-32

3,210,000

4,273,000

4,637,000

36

41

35

89,167

104,220

132,486

FY08-36

18,592,000

18,227,000

16,852,000

130

105

125

143,015

173,590

134,816

FY08-37

354,000

859,000

1,117,000

5

7

6

70,800

122,714

186,167

FY08-33

30,000,000

40,000,000

40,000,000

200

100

120

150,000

400,000

333,333

FY08-35

14,300,000

14,200,000

13,000,000

38

35

37

376,316

405,714

351,351

FY08-38

6,500,000

7,100,000

8,400,000

50

68

80

130,000

104,412

105,000

FY08-39

37,000,000

40,000,000

43,000,000

440

429

439

84,091

93,240

97,950

FY08-41

7,500,000

8,900,000

9,400,000

25

29

31

300,000

306,897

303,226

FY08-40

8,500,000

10,500,000

10,750,000

15

25

28

566,667

420,000

383,929

FY08-44

911,948

881,669

430,401

20

16

11

45,597

55,104

39,127

FY08-42

1,972,425

1,629,361

945,420

18

14

14

109,579

116,383

67,530

FY08-43

19,493,382

15,767,000

19,000,000

88

86

86

221,516

183,337

220,930

FY08-47

520,610

452,662

301,635

8

6

5

65,076

75,444

60,327

FY08-49

4,250,000

3,386,346

1,818,408

22

19

15

193,182

178,229

121,227

FY08-57

769,184

816,322

674,255

11

11

10

69,926

74,211

67,426

FY08-56

2,960,719

3,027,576

2,292,154

37

37

33

80,019

81,826

69,459

FY08-53

7,278,583

6,535,827

4,675,983

43

36

36

169,269

181,551

129,888

FY08-52

6,160,677

6,101,363

4,593,196

34

26

27

181,196

234,668

170,118

FY08-54

41,000,000

40,000,000

22,500,000

75

70

75

546,667

571,429

300,000

FY08-55

29,000,000

28,000,000

18,700,000

200

204

147

145,000

137,255

127,211

Total

10,299,200

11,079,460

9,498,479

73

66

61

150,674

167,871

155,713

(11) The Financial Assistance Received by Each Firm Participating in the Program

(12) The Financial Contribution Made by Each Firm Participating in the Program

In FY 2010, firms received $8.7 million in technical assistance provided by the TAACs to prepare petitions; and in the development and implementation of Adjustment Proposals (often through business consultants and other experts). Firms participating in the program contributed $6.1 million towards the development and implementation of Adjustment Proposals. Funds are not provided directly to firms; instead EDA funds TAACs and TAACs pay a cost-shared proportion of the cost to secure specialized business consultants.

Exhibit 25: Summary of TAAF Program Financial Assistance by TAAC: FY 2010

TAAC

TAAC assistance to firms

Amount paid to consultants by the TAACs

Total TAAC assistance to firms (TAACs + consultants)

Financial contribution by the firms

Great Lakes

$196,060

$677,560

$873,620

$646,809

Mid-America

93,836

466,399

560,235

466,399

MidAtlantic

309,655

910,562

1,220,217

910,562

Midwest

178,428

705,954

884,382

631,906

New England

229,249

1,283,189

1,512,438

1,256,739

New York State

152,425

366,230

518,655

271,104

Northwest

53,257

499,053

552,310

443,905

Rocky Mountain

493,122

433,261

926,383

433,261

Southeastern

243,177

514,935

758,112

495,659

Southwest

128,997

453,751

582,748

373,376

Western

98,004

183,943

281,947

170,524

Total

2,176,210

6,494,837

8,671,047

6,100,244

(13) The Types of Technical Assistance Included in the Adjustment Proposals of Firms Participating in the Program

Firms proposed various types of projects in Adjustment Proposals. Marketing/sales projects are geared toward increasing revenue, whereas production/manufacturing projects tend to be geared toward cutting costs. Support system projects can provide a competitive advantage by either cutting costs or creating new sales channels. Management and financial projects are designed to improve management's decision making ability and business control. More than half of all firms proposed to implement marketing/sales or production/manufacturing projects. Sample projects are listed below in Exhibit 26.

Exhibit 26: Characteristics of Technical Assistance in Adjustment Proposals: FY 2010

Project classification

Sample types of projects

Number of adjustment proposal projects

Adjustment proposal project costs

Financial

• Accounting systems upgrade

• Cost control tracking system

• Automatic Data Processing development

30

$517,000

Management

• Strategic business planning

• Succession management

• Management development

79

1,987,100

Marketing/Sales

• Sales process training

• Market expansion and feasibility analysis

• Web site design and upgrade

228

11,416,092

Production

• Lean manufacturing and certification

• New product development

• Production and warehouse automation

215

11,918,300

Support Systems

• Enterprise Resource Planning

• MIS upgrades

• Computer Aided Design software

• Supply chain management software

162

6,984,400

Exhibit 27: Adjustment Proposals by Project Classification: FY 2010

EN26JA11.020

(14) The Number of Firms Leaving the Program Before Completing the Project or Projects in Their Adjustment Proposals and the Reason the Project Was Not Completed

In FY 2010, of the 102 firms that left the TAAF program, 57 completed the program and the remaining 45 firms left for the reasons listed below in Exhibit 28.

Exhibit 28: Summary of Firms Leaving the TAAF Program: FY 2010

Reason for leaving program

Number of

firms

Completed Assistance

57

Firm Filed Chapter 11

1

Firm Sold

2

Inadequate Funds for Project Implementation

4

Lost Interest in Program

4

Out of Business

11

Past 5-year Threshold

23

Total

102

Conclusion

TAAF effectively targeted small and medium sized firms FY 2010. The average sales, employment and productivity of firms certified into the program in FY 2010 was higher than that of firms certified in FY 2009. More than half of all firms proposed to implement a marketing/sales project or production/engineering project in their Adjustment Proposals.

Firms that completed the TAAF Program in FY 2008 report that at completion, average sales were $10.3 million, average employment was 73, and average productivity was $140,977 (sales per employee). One year after completing the program (FY 2009), firms report that average sales increased by one percent, average employment decreased by 10 percent, and average productivity increased by 11 percent. BLS reported that nationwide for the manufacturing industry in FY 2009, average employment decreased 12 percent and average productivity increased by 4 percent. Two years after completing the program (FY 2010), firms report that average sales decreased by 14 percent, average employment decreased by 16 percent, and average productivity increased by 3 percent. BLS reported that nationwide for the manufacturing industry in FY 2010, average employment decreased 12 percent and average productivity increased by 9 percent.

Overall, there has been an increase in the demand for the TAAF Program in FY 2010, as demonstrated by the increase in the number of petitions for certification and Adjustment Proposals submitted to EDA for approval. In FY 2010, EDA approved an additional 114 petitions, a 53 percent increase as compared to FY 2009; and approved an additional 93 Adjustment Proposals, a 54 percent increase as compared to FY 2009.

The addition of TAAF staff resources facilitated EDA's ability to improve processing time for petitions and Adjustment Proposals in FY 2010. Although there was a spike in petitions and Adjustment Proposals, EDA successfully met the 40-day processing deadline to make a final determination for petitions accepted for filing; and the 60-day processing deadline for approval of Adjustment Proposals as required in the TGAAA. In fact, the average processing time for petitions has started to decline below the 40-day requirement and the average processing time for Adjustment Proposals is below 30 days.

Dated: January 20, 2011.

Bryan Borlik,

Director, Trade Adjustment Assistance for Firms Program.

[FR Doc. 2011-1583 Filed 1-25-11; 8:45 am]

BILLING CODE 3510-24-P