Obama to announce two new manufacturing hubs Tuesday
February 22nd, 2014
07:01 PM ET
6 months ago

Obama to announce two new manufacturing hubs Tuesday

Washington (CNN) – President Barack Obama will announce Tuesday two new private-public partnerships meant to spur high-quality manufacturing jobs in Chicago and Detroit.

A White House official told CNN that the announcement will pave the way for two "innovation institutes" led by the Defense Department and supported by $280 million - half from the federal government and half from private partners.


The move is the latest announcement in Obama's "year of action," in which he promised to use executive authority to circumvent congressional gridlock to get things done. Critics have questioned the constitutionality of some of those initiatives.

Using existing funds, these innovation institutes bring together universities and academic institutions, private companies and federal agencies to "co-invest in key technology areas that encourage investment and production in the U.S.," according to the White House.

The program also focuses on students, hoping to expose them to unique training opportunities and men and women in the business world.

One institute will be based in the Detroit area and led by the manufacturing giant EWI. Its 60 partners - " the world’s leading aluminum, titanium, and high strength steel manufacturers" and "universities and laboratories pioneering new technology development and research" - will work to develop new lightweight and high-performing metals and alloys.

The other, based in Obama's hometown of Chicago, will be led by UI Labs and focused on so-called digital manufacturing. With 73 different partners, the goal is to create a "novel partnership between world-leading manufacturing experts and cutting-edge software companies to enable interoperability across the supply chain, develop enhanced digital capabilities to design and test new products, and reduce costs in manufacturing processes across multiple industries."

A full list of involved organizations will be unveiled at Tuesday's announcement.

The White House official highlighted the recent growth in American manufacturing jobs and promised these collaborative projects would bring more. Some 622,000 manufacturing jobs have been created since early 2010, the official said - although manufacturing employment has been on a downward trend since its peak in 1979, with more than 2 million Americans losing their jobs between December 2007 and June 2009 alone.

The new projects mirror a similar one in North Carolina that Obama unveiled last month and promised in his 2013 State of the Union. The project in Raleigh, which is just taking off, focused on making electronic devices of all sorts, from motors to mobile phones, faster, smaller and more efficient. When that project was announced, the White House previewed the Detroit and Chicago initiatives.

In total, the White House is looking to create up to 45 "institutes," but the official blamed Congress for standing in the way.

"The President will continue to work with Congress to get legislation passed while continuing to make progress where he can to boost these partnerships that are important to revitalizing our manufacturing sector," said the official.

– CNN's Conor Finnegan contributed to this report.


Filed under: Jobs • President Obama
soundoff (188 Responses)
  1. Bill

    Yay! More money that we don't have going out!

    February 23, 2014 12:29 am at 12:29 am |
  2. joethejust

    For real? The guy that couldn't run a lemonade stand thinks he waives his wand and throws some of other people's money around and whala – jobs. Bet these are shovel ready too. lol He is only for Obama. Obama IS a 1%er. Oh and we all know he bare face bold face lied to the American people in front of the world and sheeple still lick his shoes. Disgusting pitiful. Democrats before they are American.

    February 23, 2014 12:54 am at 12:54 am |
  3. FedUp2

    Was exciting until I see we'll be making weapons. Kinda like when the last large amount of money coming into our scout troop turned out to be a just big push by the NRA. Aren't our children already highly trained killers from all the mature first person shooter games they're addicted to? Between the government spying, right-wing saber rattling and the military build up, feels like Germany '33.

    February 23, 2014 01:06 am at 1:06 am |
  4. Kyle

    I wonder how much money the "private" companies raised for Democratic campaigns?

    February 23, 2014 01:08 am at 1:08 am |
  5. Quest

    Thanks for nothing, you worthless Republicans. We don't need you!

    February 23, 2014 01:32 am at 1:32 am |
  6. jerry

    Remember Solyndra? Government doesn't produce jobs,unless it's products kill people in battle

    February 23, 2014 02:04 am at 2:04 am |
  7. Simplefaith

    While the Republicans are fighting each other for a time in the media, President Obama is working to help the people of the United States get jobs. Democrats know how to work together.

    February 23, 2014 02:05 am at 2:05 am |
  8. alcheson

    We don't need more Solyndra's and Fisker's! Instead of spending billions of tax-payer dollars on these things, most of which will do nothing but enrich more of his cronies and lead to few if any jobs, why doesn't Obama do things that will spur private businesses too thrive and grow? Things like, cutting bureaucracy and the cost of energy. Get rid of the war on fossil fuels and this Green agenda that he is pushing. Approve the keystone pipeline. His administration (EPA) is busy doing everything they can to destroy the economy with GREEN taxes and increasing the cost of energy. 21 cheap energy producing coal fired plants are slated to be taken off line this year to fight no existent CAGW. CCS regulations are set to increase to cost of our utility bills by 80% according to testimony by experts at a congressional hearing last week.

    February 23, 2014 02:16 am at 2:16 am |
  9. Sean

    Wow! Two! I'm calling everyone I know!

    February 23, 2014 02:16 am at 2:16 am |
  10. db

    FOX News says this is a mistake, making this the 1,349th consecutive thing President Obama has done wrong.

    February 23, 2014 02:22 am at 2:22 am |
  11. alcheson

    We don't need any more Solyndra's and Fiskers! This will only result in billions more of our Tax dollars going to his cronies with little to no job creation. If Obama was really serious about spuring job growth and the economy, he would instead cut bureaucracy and the war on fossil fuels, and approve the keystone pipeline. 21 low cost energy producing coal fired electrical plants are to be shut down this year to fight the bogus CAGW crap. According to congressional testimony last week by professionals in CCS (carbon capture and storage), the rules Obama's EPA is currently putting into place will drive up the cost of electricity by 80% over the next few years. All coal fired plants are to be shut down by 2050. Expensive energy means mass unemployment, a stagnant economy and poverty for all, except for the privileged few.

    February 23, 2014 02:26 am at 2:26 am |
  12. pocong lucu

    It's going to be end of mine day, but before ending I am reading this fantastic piece of writing to increase my
    knowledge.

    February 23, 2014 02:36 am at 2:36 am |
  13. Jonathan

    Good for him. Might help more people than it hurts.

    February 23, 2014 02:37 am at 2:37 am |
  14. Nodack

    Let me guess, Republicans hate this. They hate anything that Obama has anything to do with and will do everything they can to stop it out of spite. They couldn't care any less if it helps America. The only thing that matters to them is their war with Obama.

    February 23, 2014 02:37 am at 2:37 am |
  15. Evert van Vliet

    In the spur of the momentum high-quality manufacturing jobs are once again being linked with the war-industries.

    Quite frankly most which is produced is utterly nonsense on it's way to a belt in someone's hood.
    This while we know we don't have another option but to halt production for production's sake so why we need jobs beats me.

    Maybe it has something to do with waving flags and singing a song comrades?

    February 23, 2014 03:09 am at 3:09 am |
  16. daniel kolich

    Very Good!

    February 23, 2014 03:23 am at 3:23 am |
  17. Alex

    Bravo to President !
    Congress is completely inefficient tanks to GOP leaders.

    February 23, 2014 03:32 am at 3:32 am |
  18. BlackThought

    Well it's better than building bombs hopefully this will work.

    February 23, 2014 03:34 am at 3:34 am |
  19. Commojoe

    Yeah, and I'm sure the hubs will have SO many shovel-ready jobs, too, right? The Bozobama, trying to play job-creator after his dismal failure as a president is just a sad joke.

    February 23, 2014 04:20 am at 4:20 am |
  20. John

    Wow. TWO whole hubs? Oh, and look. Here's yet another politician siphoning off money to go to his benefactors and contributors.

    February 23, 2014 04:31 am at 4:31 am |
  21. Rob

    Sounds like the King is about to spend more of our money on another windmill farm. If Obama is involved it has to be a con. Liars don't change and incompetence is all this administration has to show for their hatred of America

    February 23, 2014 04:34 am at 4:34 am |
  22. Lynn

    Once again, more government jobs to train people for what.. What will they manufacture at these plants?
    Another smoke in the air story. It's election year again.

    February 23, 2014 04:41 am at 4:41 am |
  23. Joseph

    Innovation. Uh oh! Sounds a lot like progression. And we know what that means right? And of course Chicago. Good ole boy helping out his small hometown.

    February 23, 2014 05:04 am at 5:04 am |
  24. liberal disease

    from the people who gave you Obama care and Solyndra

    February 23, 2014 05:38 am at 5:38 am |
  25. Shefter Laurent

    Keep working Mr. President, American will rate you as the best president ever!

    February 23, 2014 05:47 am at 5:47 am |
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